The document discusses the evolution of management thought from traditional to modern approaches. It covers several traditional approaches including scientific management pioneered by Taylor which focused on efficiency. It also discusses bureaucratic management developed by Weber and administrative management principles by Fayol. The document then covers behavioral approaches developed in response to these, as well as systems, contingency and quantitative approaches in modern management.
Chapter 02 The Evolution of Management ThinkingRayman Soe
Richard L. Daft addresses themes and issues directly relevant to both the everyday demands and significant challenges facing businesses today. Comprehensive coverage helps develop managers able to look beyond traditional techniques and ideas to tap into a full breadth of management skills. With the best in proven management and new competencies that harness creativity, D.A.F.T. is Management!
This slide presentation will help students understand how management evolved and the significant approaches to make organizations more productive, effective, and efficient.
Report on how the Management Theory has evolved over the years.
Submitted for the module "Introduction to Management" during the 2nd semester of the Transport and Logistics Management Degree Program at University of Moratuwa
This is a an analysis report for the subject: Introduction to Management in Monash University. An interview was conducted with a real life manager from the Airline Industry in the Middle East Region. Then an analysis was done and a final report using various management theories including Katz, Mintzberg was written.
Chapter 02 The Evolution of Management ThinkingRayman Soe
Richard L. Daft addresses themes and issues directly relevant to both the everyday demands and significant challenges facing businesses today. Comprehensive coverage helps develop managers able to look beyond traditional techniques and ideas to tap into a full breadth of management skills. With the best in proven management and new competencies that harness creativity, D.A.F.T. is Management!
This slide presentation will help students understand how management evolved and the significant approaches to make organizations more productive, effective, and efficient.
Report on how the Management Theory has evolved over the years.
Submitted for the module "Introduction to Management" during the 2nd semester of the Transport and Logistics Management Degree Program at University of Moratuwa
This is a an analysis report for the subject: Introduction to Management in Monash University. An interview was conducted with a real life manager from the Airline Industry in the Middle East Region. Then an analysis was done and a final report using various management theories including Katz, Mintzberg was written.
In Pre-classical theory the structure of the organization is mechanical.
Its main focus is on work.
It emphasizes on order, rules & regulations.
The practice of leadership is authoritarian.
It focuses on 5Ps: Power, Position, Production, Profit & Punishment.
It results workers’ dis satisfaction.
As a result Industrial Revolution got its root
Classical Theory emphasizes on both orders & rationality. It consists of basic rules & regulations for smooth running of the organizations.
Classical approaches can be explained in the following manner.
Scientific Management by F.W. Tayler, Frank & Gilbreth & Henry Gantt.
Administrative Management by Henri Fayol.
Bureaucratic Management by Max Weber
Frederick Winslow Taylor was an American engineer who is known as the Father of “Scientific Management” which studies the application of science in management.
According to Taylor there is “One Best Way” to do each thing.
He stressed on involvement of science for each element of man’s work to replace the old rule-of-thumb method.
Scientific training & development helped workers to perform in a better manner than allowing them to choose their own task & perform.
There was the development of spirit of hearty cooperation between workers & management.
Each group was assigned the task for which it was best fitted.
His studies helped to improve the working conditions of industrial workers & were instrumental in enhancing the productivity of the organization.
He propounded sound management practices by stressing on division of labor, scientific selection, placement & training of workers.
Taylor was also instrumental in introducing the differential piece rate system in organization.
His studies helped to improve the working conditions of industrial workers & were instrumental in enhancing the productivity of the organization.
He propounded sound management practices by stressing on division of labor, scientific selection, placement & training of workers.
Taylor was also instrumental in introducing the differential piece rate system in organization.
Piece Rate-Incentive System: Incentives are being received according to the maximum pieces produced.
Time-&-Motion Study: Jobs are broken down into various small tasks or motions & unnecessary motions are removed to find out the best way of doing a job.
Scientifically performing the job with proper selection & training.
Harmony between management & employees to perform the task.
Mental revolution towards the thought of workers who are not the mere wage earners. They are the assets.
The father of “Motion Study” are Frank & Gilbreth which involves finding the best sequence & minimum number of motions needed to complete a task.
Both were mainly involved in exploring new ways for eliminating unnecessary motions & reducing work fatigue.
They introduced the concept of “Therbligs” which consists of different basic motions like: Search, Select, Position & Hold.
Existing System study reveals that all the booking was done manually on registers, which was very tedious and error prone job. Searching and report generation was also not possible in the existing system. Also the work of Institute was manually maintained. There was register or file system in the Institute.
Present mode of working is based on manual system in which the all the information is first received and than entered in the register. It is very difficult job and time consuming also. Moreover, the existing system is also dependent on employees, if the employees are absent; it leads to problem and affects the business performance.
In Pre-classical theory the structure of the organization is mechanical.
Its main focus is on work.
It emphasizes on order, rules & regulations.
The practice of leadership is authoritarian.
It focuses on 5Ps: Power, Position, Production, Profit & Punishment.
It results workers’ dis satisfaction.
As a result Industrial Revolution got its root
Classical Theory emphasizes on both orders & rationality. It consists of basic rules & regulations for smooth running of the organizations.
Classical approaches can be explained in the following manner.
Scientific Management by F.W. Tayler, Frank & Gilbreth & Henry Gantt.
Administrative Management by Henri Fayol.
Bureaucratic Management by Max Weber
Frederick Winslow Taylor was an American engineer who is known as the Father of “Scientific Management” which studies the application of science in management.
According to Taylor there is “One Best Way” to do each thing.
He stressed on involvement of science for each element of man’s work to replace the old rule-of-thumb method.
Scientific training & development helped workers to perform in a better manner than allowing them to choose their own task & perform.
There was the development of spirit of hearty cooperation between workers & management.
Each group was assigned the task for which it was best fitted.
The father of “Motion Study” are Frank & Gilbreth which involves finding the best sequence & minimum number of motions needed to complete a task.
Both were mainly involved in exploring new ways for eliminating unnecessary motions & reducing work fatigue.
They introduced the concept of “Therbligs” which consists of different basic motions like: Search, Select, Position & Hold.
Both are very famous for their experiment of reducing the number of motions in “Bricklaying”, by analyzing brick layers jobs & reducing the number of motions in bricklaying from 18.5-4.
Henry Laurence Gantt was a mechanical engineer & management consultant who is the most famous personality for developing “Gantt Chart” in 1910.
He is one of the associate of F.W. Taylor & his contribution is very helpful in project management task.
Gantt Chart is used for scheduling multiple overlapping tasks over a time period.
He focused on leadership qualities along with motivational schemes & emphasized the greater effectiveness of rewards for good work rather than penalties for poor performance.
He developed a “Pay Incentive System” with a guaranteed minimum wage & bonus for workers. If the workers completed their task before the standard time they would receive bonus definitely.
Henry Fayol is known as the Father of “Administrative Management”. He contributed fourteen management principles on the basis of his experience.
According to Fayol, the business operations of an organization can be divided into six activities: Technical, Commercial, Financial, Security, Accounting & Managerial.
These fourteen principles are: Specialisation of Labour, Authority, Discipline, Unity of Command, Unity
Henry Fayol is known as the Father of “Administrative Management”. He contributed fourteen management principles on the basis of his experience.
According to Fayol, the business operations of an organization can be divided into six activities: Technical, Commercial, Financial, Security, Accounting & Managerial.
These fourteen principles are: Specialisation of Labour, Authority, Discipline, Unity of Command, Unity of Direction, Subordination of Individual Interests, Remuneration, Centralization, Scalar Chain, Order, Equity, Personal Tenure, Initiative & Esprit de corps (SADUSRCSOEPIE).
Weber believed that bureaucracy was the most efficient way to set up & manage an organization, and absolutely necessary for larger companies to achieve maximum productivity with many employees & tasks.
The idea of Bureaucracy Favors efficiency, uniformity & a clear distribution of power.
Weber argued that bureaucracy constitutes the most efficient & rational way in which human activity can be organised.
Hierarchies are necessary to maintain order, to maximise efficiency & to eliminate favouritism.
The Hawthorne Studies (Experiments) were conducted from 1927-1932 at Western Electric Hawthorne Workers in Chicago ; which was engaged in producing bells & other electrical equipment for telephone industry.
George Elton Mayo (1880-1949) was born on 26th December, 1880 in Adelaide, Australia. He is known for his research including the “Hawthorne Studies”, & his book “The human problems of an Industrialised civilization”.
The conclusion of the study is the work performance of people is dependent on both social issues & job content. He suggested a tension between workers’ “logic of sentiment” & managers “logic of cost & efficiency” which could lead to conflict within organizations.
Mayo has conducted a series of experimental observations in plant & interview of employees. These are:
Illumination Experiment (1924-27)
Relay Assembly Test Room Experiments (1927)
Mass Interviewing Programme (1928-31)
Bank Wiring Observation Room Experiments (1931-32)
Chester Irving Barnard was a telecommunication executive looked at systems of the organization.
The author focused on two basic theories: the theory of Authority & theory of initiatives. Both are seen in the context of a communication system.
Everyone should know the channels of communication.
Everyone should have access to the formal channels of communication.
Lines of communication should be a short & as direct as possible.
Mary Parker Follett has focused on dynamics of the organization & groups. She has advocated “Pull” rather than “Push” approach for employee motivation.
She has differentiated between “Power Over” & “Power With” and given ideas on negotiation, conflict resolution, power sharing etc.
Conflict resolution through integration often results in a win-win situation. Integration refers to identifying & meeting each party’s underlying & often compatible need.
The idea of management is not new; managing is an inbuilt character of human beings. Early forms of management concepts have been applied throughout history in order to progress as a society. We see beautiful creation from Stone Age to civilization – could those creations such as monuments and cities be in place without management? Management activities were always needed in order to complete massive projects. The Industrial Revolution as well as the growth of factories and mass production created a need for strong management processes. Better and more efficient ways of manufacturing goods were needed in order to maximize productivity, bring down costs, and increase profitability. As a result, since the late 1800’s, theorists have developed a wide range of methods for improving management practices
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
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The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
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How to Make a Field invisible in Odoo 17Celine George
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How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
2. 2
Evolution of Management
Thought
Effective management played a key
role in the construction of the
pyramids, the use of communication
and control of the Roman Empire, and
the legal framework of commerce in
14th century VENICE.
3. 3
Evolution of Management
Thought
The most significant historical point
of reference in the evolution of
management was the advent of the
Industrial Revolution.
By the turn of the 20th century the
science and practices of
management were on a rapid and
continuing path of development.
4. Evolution of management thought can be classified into
two different stages:
TRADITIONAL APPROACH
Scientific Management Approach
Administrative Management Approach
Human Relations Approach
Bureaucratic Approach
MODERN APPROACH
Behavioural Approach
Quantitative Approach
Systems Approach
Contingency Approach
7. Scientific Management
Frederick W. Taylor
The father of Scientific Management
– the 1st Efficiency Expert.
Joined MIDVALE STEEL as a machinist in 1878 ,
earned degree of Engineering through evening
study and rose to the position of chief engineer.
His experience as an apprentice, a common
laborer, a foreman, a master mechanic, and then
the chief engineer of the steel company gave
Taylor ample opportunity to know first-hand
problems and attitudes of workers and to see the
greatest possibilities for improving quality of
management.
A philosophy and set of management
practices that are based on fact and
observation, not on guesswork
8. • He was interested in machines --
apprenticeship in industry: Midvale Steel
• Shocked by how inefficient his fellow
workers were
• timed workers with stopwatches
• break down job into parts, make parts
efficient
• figure out how to hire the right worker for
the job
• give the worker appropriate training
Taylor’s Work?
9. • introduced incentive pay plans
(workers were assumed to be motivated
only by money).
• Believed would lead to cooperation--
management and worker
• Studied design of shovels and introduced
a better design at Bethlehem Steel Works,
reducing the number of people shoveling
from 500 to 140
•Taylor’s famous work Principles of
scientific Scientific management was
published in 1911.
Taylor’s Work? Contd.
10. Taylor first published his theory on
management in a paper entitled, “A PIECE
RATE SYSTEM” and presented to the
American Society of Mechanical Engineers
in 1985. Further he developed it and
published “SHOP MANAGEMENT” in 1903.
11. The fundamental principles underlying Scientific Management
approach are:
Replacing rule of thumb with science.
Obtaining harmony rather than discord in group
action.
Achieving cooperation of human being, rather than
chaotic individualism.
Working for maximum output rather than
restricted output.
Developing all workers to the fullest extent possible
for their own and company highest prosperity.
12. Other Scientific Management Pioneers
The Gilbreths
Frank Gilbreth used motion pictures
to analyze workers’ motions
Lillian Gilbreth championed protecting
workers from unsafe working conditions
Henry Gantt
Focused on control systems for
production scheduling (Gantt Chart)
13. Frank and Lillian Gilbreth
Frank Gilbreth developed motion study as a
primary tool for managers. He maintained that
there was one best way to perform a given job.
Gilbreth proved the truth of his idea by simplifying
the motions used in bricklaying industry.
Lilian Gilbreth is an industrial psychologist,
focused on the human aspect of work and the
understanding of workers personalities and needs.
14. Henry L. Gantt
H L Gantt worked with Taylor and made significant contribution to
the study of scientific management.
Called for scientific selection of workers and harmonious
cooperation between labor and management. Stressed need for
training.
His famous Gantt Chart has become very popular and it was
forerunner of modern techniques like CPM & PERT.
Scheduling Innovation
Gantt Chart – scheduling summary of work
Rewarding Innovation
Bonus in addition to the piece rate if they exceeded their daily
production quota
On time = Bonus, Good Performance = Reward
15. Problems associated with Scientific
Management
Managers often gave attention only to
increasing output.
They did not allow workers to share in the
benefits of increased output.
Specialized jobs became very boring & dull.
Workers ended up distrusting Scientific
Management.
16. Insights from Scientific Management
Many companies have used scientific management
principles to improve efficiency, employee selection
and training
Scientific management failed to recognize the
social needs of workers and the importance of
working conditions and job satisfaction
17. David Berbauer
CEO, Walgreens
“Walgreens is constantly pushing to drive costs down. It
pioneered the application of satellite communications and
computer technology and linked these to increase store
efficiency. By using tried-and-proven management concepts,
each of its 6,100 stores [is] able to process around 280
prescriptions a day and beat Wal-Mart by 27 cents and CVS
by 94 cents on each prescription.”
Snapshot
19. Bureaucratic Management
Use of rules, hierarchy, a clear division of labor,
and detailed procedures to guide employees’
behaviors
Seven characteristics
Rules—formal guidelines for the behavior of
employees on the job
Impersonality—employees are evaluated
according to rules and objective data
Division of Labor—splitting work into
specialized positions
20. Caliper Technologies Corporation
(adapted from Figure 2.2)
CEO
Director of
Quality
Control
Chief
Financial
Officer
VP of
Operations
VP of
Sales &
Marketing
VP of
Research
VP of
Product
Development
VP of
Corporate
Development
Plant
Manager
USA
Controller
Plant
Manager
Germany
Manager of
Chemical
Engineering
Manager of
Chip
Manufacturing
Manager of
Engineering
& Software
Director
of
Manufacturing
Director
of
Manufacturing
Employees Employees
21. Hierarchical Structure—ranks jobs according
to the amount of authority in each job
Authority—who has the right to make
decisions of varying importance at different
organizational levels
Traditional authority
Charismatic authority
Rational, legal authority
Lifelong Career Commitment—both the employee
and the organization view themselves committed to
each other over the working life of the employee
Rationality—the use of the most efficient
means available to accomplish a goal
22. “Each job has a policy manual detailing the rules
that a person needs to follow to ensure efficiency.
Drivers are told to walk to a customer’s door at a
brisk pace of 3 feet per second, carrying the
package in the right hand and clipboard in the
left. They should knock on the door so as not to
lose valuable seconds searching for a doorbell.”
Michael Eskew
Chairman and CEO, UPS
Snapshot
23. LOW MIDRANGE HIGH
DreamWorks Sony IRS
R&D Thinktank 7-11 McDonalds
MP3 PepsiCo State Motor
Vehicle
Registration
Bureaucratic Continuum
24. Potential Benefits of Bureaucracy
Efficiency
Consistency
Functions best when routine tasks are performed
Performance based on objective criteria
Most effective when
Large amounts of standard information have to be processed
The needs of the customer are known and are unlikely to
change
The technology is routine and stable (e.g., mass production)
The organization has to coordinate the activities of employees
in order to deliver a standardized service/product to the
customer
25. Potential Costs of Bureaucracy
Rigid rules
and
red tape
Protection of authority Slow decision making
Incompatible with
changing
technology
Incompatible with
21st century workers’
values for freedom
and participative
management
26. Administrative Management: Overview
Focuses on the manager and basic managerial
functions of planning, organizing, controlling
and leading
Unity of Command Principle: an
employee should report to only one
manager
Authority Principle: managers have the
right to give orders to get things done
27. Fayol’s Principles of Effective Management
Division of Work: allows for job specialization.
Work should be divided among individuals and groups.
Authority and Responsibility
Authority right to give orders
Responsibility involves being answerable
Whoever assumes authority assumes responsibility
Discipline
Common efforts of workers. Penalties
Unity of Command
Employees should have only one boss.
28. Unity of Direction
A single plan of action to guide the organization.
Subordination of individual interests to the general
interests of organization
Remuneration
An equitable uniform payment system that motivates
contributes to organizational success.
Centralization
The degree to which authority rests at the top of the
organization.
Scalar Chain
Chainlike authority scale.
Most vs. least authority
29. Order
The arrangement of employees where they will be of
the most value to the organization and to provide
career opportunities.
Equity
The provision of justice and the fair and impartial
treatment of all employees.
Stability of Tenure of Personnel
Long-term employment is important for the
development of skills that improve the organization’s
performance. Subordination of Individual Interest to
the Common Interest
The interest of the organization takes precedence
over that of the individual employee.
30. Initiative
The fostering of creativity and innovation by
encouraging employees to act on their own.
Esprit de corps
Harmony, general good feeling among employees,
shared enthusiasm, foster devotion to the common
cause (organization).
31. Behavioral Viewpoint: Overview
Focuses on dealing effectively with the
human aspects of organizations
Started in the 1930’s
Emphasis on working conditions
Workers wanted respect
Workers formed unions to bargain
with management
32. Mary Parker Follett’s Contributions
Managers need to establish
good working relationships
with employees
Goal:
Improve
Coordination
33. “Managers need to have a common
touch and to be a team leader and not a
drill sergeant. When their people
shine, they shine.”
Vickie Yoke, Senior Vice President, Alcatel
Snapshot
34. Chester Barnard’s Contributions
People should continuously communicate
and cooperate with one another
Acceptance theory of authority holds that employees
have free wills and, thus, choose whether to follow
management’s orders. Employees will follow orders
if they:
Understand what is required
Believe the orders are consistent with
organization goals
See positive benefits to themselves in
carrying out the orders
35. The Hawthorne Studies
Studies of how characteristics of the work setting
affected worker fatigue and performance at the
Hawthorne Works of the Western Electric
Company from 1924-1932.
Worker productivity was measured at various
levels of light illumination.
Researchers found that regardless of whether
the light levels were raised or lowered, worker
productivity increased.
36. The Hawthorne Studies
The Relay Assembly Test Room Experiments
Working conditions and productivity
The Bank Wiring Observation Room Experiment
Analyze the social relationships in a work group
The Hawthorne Studies
37. Employees are
motivated by social
needs and association
with others
Employees’ performance
is more a result of peer
pressure than
management’s incentives
and rules
Managers need to
involve subordinates
in coordinating their
work to improve
efficiency
Employees want to
participate in decisions
that affect them
Lessons from the Hawthrone Studies
Behavioral Viewpoint
38. Snapshot
“Teamwork is one of the most beautiful
experiences in life. Teamwork is our
core value and a primary way that the
Container Store enriches the quality
of employees’ work life.”
Kip Tindell, President, The Container Store
39. System: an association of interrelated
and interdependent parts
Systems viewpoint: an approach to solving
problems by diagnosing them within a
framework of transformation processes,
outputs, and feedback
Systems Viewpoint:
Systems Concepts
41. Closed system: limits its interactions with
the environment (e.g., stamping department
in GM assembly plant)
Open system: interacts with the external
environment (e.g., marketing department)
System Types
42. Mathematical
models are used
to simulate
changes
Computers are
essential
Primary focus is
on decision
making
Alternatives are
based on
economic criteria
Quantitative Techniques
45. Management practices should be consistent
with the requirements of the external
environment, the technology used to make a
product or provide a service, and capabilities
of the people who work for the organization
Uses concepts of the traditional, behavioral
and system viewpoints
46. External environment—stable or
changing
Technology—simple or complex
People—ways they are similar and
different from each other
Contingency Variables
47. Behavioral Viewpoint
How managers influence others;
Informal group
Cooperation among employees
Employee’s social needs
Systems Viewpoint
How the parts fit together.
Inputs
Transformations
Outputs
Traditional Viewpoint
What managers do:
Plan
Organize
Lead
Control
Contingency Viewpoint
Managers’ use of other viewpoints
to solve problems involving:
External environment
Technology
Individuals
Contingency Viewpoint: Draws on
Other Viewpoints, As Necessary
48. Quality: how well a product or service
does what it is supposed to do—how closely
and reliably it satisfies the specifications to
which it is built or provided
Total Quality Management (TQM): a
philosophy that makes quality values the
driving force behind leadership, design,
planning, and improvement initiatives
49. Inputs or raw materials
Operations
Outputs
Measuring by variable or a product’s characteristics
Measuring by attribute or a product’s acceptable/
unacceptable characteristics
Statistical process control
Quality of a process (e.g., sigma)
Quality Control Process
50. Lower Costs
and Higher
Market Share
Decreased
Product
Liability Quality
Positive
Company
Image
Learning from the Quality
Viewpoint