The document discusses the evolution of management theories from scientific management to human relations movement. It covers key contributors like Taylor, Fayol, Mayo, and Weber who developed theories like scientific management, bureaucracy, and human relations. Their theories focused on improving efficiency and productivity through principles like dividing work, unity of command, and understanding group dynamics and social factors. Systems theory also viewed organizations as open systems that interact with their environment.

1. Principles of Management Session 2 Evolution of Management Bhawana Dahiya

2. Management Definitions “Management is the art of getting things done through people.” Mary Parker Follett “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.” (...to create a surplus) Weirich & Koontz Bhawana Dahiya

3. Key Contributors 1911 1916 1930’s 1943 1946, 47 1960 Late 1960’s 1968 Bhawana Dahiya Frederick Taylor's Scientific Mgt. Henri Fayol's Modern Mgt. Theory Elton Mayo's Hawthorne Works experiments Maslow’s Hierarchy of Needs Max Weber's Theory of Bureaucracy McGregor’s Theory X & Theory Y Systems Approach (Chester Barnard, von Bertalanffy) Fredrick Herzberg

4. Key Contributors – New Trends Theory Z Japanese Management Style William Ouchi Total Quality Management Approach Deming, Juran, Crosby Bhawana Dahiya

5. Influences Industrial revolution Autocratic management was the norm Major progresses / discoveries in Science (Physics & Chemistry) Turning to "science" as a solution to the inefficiencies and injustices of the period. Bhawana Dahiya Frederick Taylor - Scientific Management

6. Frederick Taylor - Scientific Management In the late 19th century, Frederick Taylor was decrying the “awkward, inefficient or ill-directed movements of men” as a national loss He advocated a change from the old system of personal management to a new system of scientific management Taylor claimed that a group of ordinary men, following a scientific method would out-performthe older “personally brilliant” captains of industry Bhawana Dahiya

7. Taylor consistently sought to overthrow management “by rule of thumb” and replace it with actual timed observations leading to “the one best” practice Advocated systematic training of workers in “the one best practice” rather than allowing them personal discretion in their tasks He believed that “a spirit of hearty cooperation” would develop between workers and management Taylor's strongest positive legacy was the concept of breaking a complex task down into a number of small subtasks, and optimizing the performance of the subtasks. Bhawana Dahiya Frederick Taylor - Scientific Management

8. Principles Replacing rules of thumb with science (organized knowledge) Obtaining harmony in group action, rather than discord Achieving cooperation of human beings, rather than chaotic individualism Working for maximum output, rather than restricted output Developing all workers to the fullest extent possible for their own and their company's highest prosperity Bhawana Dahiya Principles of Scientific Management

9. Application (Successes) Contributed many papers on the science of cutting metal coal shovel design worker incentive schemes and piece rate system for shop management. Organizational influences in industrial engineering, personnel, and quality control. Application of his methods yielded significant improvements in productivity Bhawana Dahiya Frederick Taylor - Scientific Management

10. Focusedon the personal duties of management While Weber laid out principles for an ideal bureaucratic organization Fayol’s work was directed more at the management layer Recognized a widespread need for principles Identified 14 such principles, noting that these were flexible & must be used regardless of changing conditions Bhawana Dahiya Henri Fayol’s Management Principles

11. Propagated that the entire organization (both workers and management) should function on 4 basic principles Unity of command- Each person should receive order from only one superior Division of work-Specialization and efficiency to be incorporated in workers Unity of direction- Related activities to be grouped under one manager Scalar Chain- the organizational structure which starts from the CEO’s to the labourers. Can be short-circuited when following it becomes detrimental Bhawana Dahiya Henri Fayol’s Management Principles

12. Also laid down the 5 principle roles of the management. Which are: to forecast and plan to organize to command to co-ordinate and to control. Bhawana Dahiya Henri Fayol’s Management Principles

13. Application (Successes) The 5 principle roles of management are still actively practiced today The concept of giving appropriate authority with responsibility has also been widely regarded Time & again organizations and managements have reiterated the relevance of the principles of "unity of command" and "unity of direction" Bhawana Dahiya Henri Fayol’s Management Principles

14. Influences The Newtonian science that supported "the one best way" of doing things was being strongly challenged by “new physics” (like Einstein) Suddenly, even in the realm of "hard science" uncertainty and variation had found a place In the work place there were strong pressures for shorter hours and employee stock ownership As the effects of the 1929 stock market crash and following depression were felt, employee unions started to form Bhawana Dahiya Elton Mayo- Human Relations Movement

15. Started as an attempt to determine the effects of lighting on worker productivity. When those experiments showed no clear correlation between light level and productivity the experiments then started looking at other factors. Working with a group of women, the experimenters made a number of changes rest breaks, no rest breaks free meals, no free meals more hours in the work-day / work-week, fewer hours in the work-day / work-week. Their productivity went up at each change. Bhawana Dahiya Elton Mayo- Human Relations Movement

16. The experiments strongly disapproved Taylor’s beliefs in 3 ways the experimenters determined that the women had become a team and that the social dynamics of the team were a stronger force on productivity than doing things "the one best way." the women would vary their work methods to avoid boredom without harming overall productivity the group was not strongly supervised by management, but instead had a great deal of freedom Bhawana Dahiya Elton Mayo- Human Relations Movement

17. Findings group dynamics and social makeup were an extremely important force either for or against higher productivity Focus became greater participation for the workers greater trust and openness in the working environment and a greater attention to teams and groups Bhawana Dahiya Elton Mayo- Human Relations Movement

18. Application (Successes) Greatest impact came in what the organization's leadership and personnel department were doing The seemingly new concepts of "group dynamics", "teamwork" and organizational "social systems" all stem from Mayo's work in the mid-1920's Bhawana Dahiya Elton Mayo- Human Relations Movement

19. Influences Weber was an economist and social historian saw the environment transitioning from older emotion and tradition driven values to technological ones (being efficiency driven) Bhawana Dahiya Max Weber- Bureaucracy

20. Believed that civilizations were shifting from value oriented thinking, emotion-derived action and traditional action to technocratic thinking Bureaucracy was envisioned as a large machine for attaining its goals in the most efficient manner possible Developed a set of principles for an "ideal" bureaucracy Bhawana Dahiya Max Weber- Bureaucracy

21. Weber’s theory concentrated on the fact that positions should be structured there must be a clear line of authority (hierarchy) and all persons must be selected by competency for the job and promotion (promotion based on achievement and a specialized division of labour) also, a formal structure and position rather than an individual. Bhawana Dahiya Max Weber- Bureaucracy

22. Principles – There should be fixed and official jurisdictional areas a firmly ordered hierarchy management based on written records thorough and expert training official activity takes priority over other activities and management of a given organization follows stable, knowable rules Bhawana Dahiya Max Weber- Bureaucracy

23. Application (Successes) His principles of an ideal bureaucracy still hold true today Many of the evils of today's bureaucracies come from their deviating from these ideal principles Bhawana Dahiya Max Weber- Bureaucracy

24. Systems Theory Systems Theory attempts to understand organizations by comparing them to living organisms. Has four distinct characteristics which reflect the biological resemblance between living organisms and organizations Wholeness expresses the idea that an organization is a set of individual elements which are interdependent; i.e. actions of one individual or group will affect the rest of the system or organization Hierarchy or the division of individuals into subsystems; i.e. groups within an organization. With regards to organisms, this could be called the organs of the body The organization may be regarded as, "Open or closed," depending on their level of active exchange with the outside environment; successful organizations must be actively open Open systems are characterized by two processes; maintenance and adaptation. Both of these processes act on Feedback to actions taken by the groups in order to maintain stability and adapt to environmental changes Bhawana Dahiya

25. ENVIRONMENT Transformation process Input Output Feedback (Reenergizing the system) System Boundary Systems Theory Organization as a System receives Input, transforms it through a Process for Output and Operates in an Environment (economic, regulatory, competitive, other forces)