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Schools of Management Thought
MANAGEMENT
 According to Peter Drucker, "Management is a multi-purpose organ that manages business and
manages managers and manages workers and work".
 According to Harold Koontz, "Management is the art of getting things done through and with
people in formally organized groups”.
“Management is the art of getting things done through and
with others within formal organizational setting.”
MANAGEMENT FUNCTIONS
S
P C
O DPLANNING
ORGANISING
STAFFING
DIRECTING
CONTROLLING
EVOLUTION OF MANAGEMENT
CLASSICAL APPROACH
Emphasis on purpose, formal
structure, hierarchy of
management, technical
requirements and common
principles of an organization
NEO CLASSICAL /
BEHAVIOURAL
APPROACH
Attention to social factors at
work, groups, leadership, the
informal organization and
behavior of people
MODERN APPROACH
Focus on measures of
performance, such as cost,
quality,
service and speed
CLASSICAL APPROACH
Scientific Management
Administrative Management
Bureaucratic Management
F. W. Taylor
Henry Fayol
Max Weber
TAYLOR’S PRINCIPLE OF SCIENTIFIC MANAGEMENT
SCIENCE, NOT RULE OF THUMB
HARMONY NOT DISCORD
CO-OPERATION, NOT INDIVIDUALISM
MAXIMUM, NOT RESTRICTED OUTPUT
SCIENTIFIC SELECTION, TRAINING AND DEVELOPMENT OF WORKERS
DIVISION OF RESPONSIBILITY
DIVISION OF
WORK
SUBORDINATION
OF INDIVIDUAL
INTEREST
UNITY OF
DIRECTION
AUTHORITY AND
RESPONSIBILITY
REMUNERATION
UNITY OF
COMMAND
DISCIPLINE
CENTRALIZATION
STABILITY OF
TENURE
SCALAR CHAIN
ESPRIT DE CORPS INITIATIVE EQUITY
ORDER
PRINCIPLES OF MANAGEMENT (HENRY FAYOL)
PRINCIPLES OF BUREAUCRATIC MANAGEMENT (MAX WEBER)
BUREAUCRATIC
MANAGEMENT
FORMAL
HIERARCHICAL
STRUCTURE
JOB
SPECIALIZATION
IMPERSONALITY
FORMAL
SELECTION
MANAGEMENT
BY RULES
CAREER
ORIENTATION
MotivationPsychology
Human
Relations
Satisfaction
Psychology
Motivation
Satisfaction
Human Relations
NEO CLASSICAL / BEHAVIOURAL
APPROACH
HAWTHORNE
EXPERIMENT
Relay Assembly Test Room Experiments
Experiments to determine the effects
of changes in hours and other working
conditions on productivity.
Bank Wiring Observation Room Experiment
Determination and analysis of social
organisation at work.
Illumination Experiment
Experiments to determine the
effects of changes in illumination on
productivity.
.
Mass Interviewing Programme
Conducting plant-wide interviews to
determine worker attitudes and
sentiments.
.
BEHAVIOURAL ASPECT – HAWTHORNE EXPERIMENT
Systems Approach to Management
It defines system as an organized, unitary whole composed of
two or more interdependent parts, components, or sub –
systems as a part of the larger external environment.
 A system has several parts. These are dynamic in nature and
therefore interact with each other.
 The parts or systems are interdependent and interrelated.
 Creating various departments that carries out the work in the
organization, sub departments and sections.
 Change in one department affect the other departmental work.
CONTINGENCY THEORY OF MANAGEMENT
Contingency theory of management is an extension of system approach to management. There cannot
be a suitable management solutions for all situations as External and internal factors keep changing..
The theory suggests:
1. What a manger should do in a particular situation based on the examination of the facts relating
to each situation?
2. Contingency theory suggests active inter-relationship between various variables in a situation
and managerial action devised. It not only suggests solution to the given situation but also
examines various influences of the situation on behavior pattern of the individual and groups in
the organization.
Modern
Organizations
Utilizes
Appraisal and
Recognition
Leadership
Bureaucracy
Total Quality
Management
(TQM)
Motivation
Application of Management Theories in Modern Organizations
 More decentralized and flatter structures that results in quick decisions.
 Use of more than a single structure in order that knowledge may be assembled across the
boundaries of a traditional organisation chart.
 Converting companies into learning organizations and giving every employee the same level of
familiarity with personnel and capabilities.
 In the case of public sector organizations, in particular, there is a demand for uniformity of
treatment, regularity of procedures and public accountability for their operations. This leads to
adherence to specified rules and procedures and to the keeping of detailed records. The demands
for equal treatment, for a standard set of regulations that apply to everyone, and that decisions
should not be left to the discretion of individual managers are in effect demands for bureaucracy.
THANK YOU

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Schools of Management Thought

  • 1.
  • 3. MANAGEMENT  According to Peter Drucker, "Management is a multi-purpose organ that manages business and manages managers and manages workers and work".  According to Harold Koontz, "Management is the art of getting things done through and with people in formally organized groups”. “Management is the art of getting things done through and with others within formal organizational setting.”
  • 4. MANAGEMENT FUNCTIONS S P C O DPLANNING ORGANISING STAFFING DIRECTING CONTROLLING
  • 5. EVOLUTION OF MANAGEMENT CLASSICAL APPROACH Emphasis on purpose, formal structure, hierarchy of management, technical requirements and common principles of an organization NEO CLASSICAL / BEHAVIOURAL APPROACH Attention to social factors at work, groups, leadership, the informal organization and behavior of people MODERN APPROACH Focus on measures of performance, such as cost, quality, service and speed
  • 6.
  • 7. CLASSICAL APPROACH Scientific Management Administrative Management Bureaucratic Management F. W. Taylor Henry Fayol Max Weber
  • 8. TAYLOR’S PRINCIPLE OF SCIENTIFIC MANAGEMENT SCIENCE, NOT RULE OF THUMB HARMONY NOT DISCORD CO-OPERATION, NOT INDIVIDUALISM MAXIMUM, NOT RESTRICTED OUTPUT SCIENTIFIC SELECTION, TRAINING AND DEVELOPMENT OF WORKERS DIVISION OF RESPONSIBILITY
  • 9.
  • 10. DIVISION OF WORK SUBORDINATION OF INDIVIDUAL INTEREST UNITY OF DIRECTION AUTHORITY AND RESPONSIBILITY REMUNERATION UNITY OF COMMAND DISCIPLINE CENTRALIZATION STABILITY OF TENURE SCALAR CHAIN ESPRIT DE CORPS INITIATIVE EQUITY ORDER PRINCIPLES OF MANAGEMENT (HENRY FAYOL)
  • 11.
  • 12. PRINCIPLES OF BUREAUCRATIC MANAGEMENT (MAX WEBER) BUREAUCRATIC MANAGEMENT FORMAL HIERARCHICAL STRUCTURE JOB SPECIALIZATION IMPERSONALITY FORMAL SELECTION MANAGEMENT BY RULES CAREER ORIENTATION
  • 14. HAWTHORNE EXPERIMENT Relay Assembly Test Room Experiments Experiments to determine the effects of changes in hours and other working conditions on productivity. Bank Wiring Observation Room Experiment Determination and analysis of social organisation at work. Illumination Experiment Experiments to determine the effects of changes in illumination on productivity. . Mass Interviewing Programme Conducting plant-wide interviews to determine worker attitudes and sentiments. . BEHAVIOURAL ASPECT – HAWTHORNE EXPERIMENT
  • 15. Systems Approach to Management It defines system as an organized, unitary whole composed of two or more interdependent parts, components, or sub – systems as a part of the larger external environment.  A system has several parts. These are dynamic in nature and therefore interact with each other.  The parts or systems are interdependent and interrelated.  Creating various departments that carries out the work in the organization, sub departments and sections.  Change in one department affect the other departmental work.
  • 16. CONTINGENCY THEORY OF MANAGEMENT Contingency theory of management is an extension of system approach to management. There cannot be a suitable management solutions for all situations as External and internal factors keep changing.. The theory suggests: 1. What a manger should do in a particular situation based on the examination of the facts relating to each situation? 2. Contingency theory suggests active inter-relationship between various variables in a situation and managerial action devised. It not only suggests solution to the given situation but also examines various influences of the situation on behavior pattern of the individual and groups in the organization.
  • 18. Application of Management Theories in Modern Organizations  More decentralized and flatter structures that results in quick decisions.  Use of more than a single structure in order that knowledge may be assembled across the boundaries of a traditional organisation chart.  Converting companies into learning organizations and giving every employee the same level of familiarity with personnel and capabilities.  In the case of public sector organizations, in particular, there is a demand for uniformity of treatment, regularity of procedures and public accountability for their operations. This leads to adherence to specified rules and procedures and to the keeping of detailed records. The demands for equal treatment, for a standard set of regulations that apply to everyone, and that decisions should not be left to the discretion of individual managers are in effect demands for bureaucracy.