Evolution of management thought


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Evolution of management thought

  1. 1. A structured social system consisting of groups of individuals working together to meet some agreed-on objectives
  2. 2. •Scottish philosopher •Wrote ‘Causes of Wealth of Nations’ •Proposed ‘Division of Labour’
  3. 3.  Adam Smith, 18th century economist, found firms manufactured pins in two ways:  Craft -- each worker did all steps.  Factory -- each worker specialized in one step.  Smith found that the factory method had much higher productivity.  Each worker became very skilled at one, specific task.  Breaking down the total job allowed for the division of labor.
  4. 4. •British Mathematics professor •Wrote ‘On the Economy of Machinery and Manufactures’ •Proposed advantages of division of labour: •Reduces the time needed for learning a job •Reduces waste of material •Attainment of high skill levels •Matching skills and abilities with jobs
  5. 5. Welsh entrepreneur Recognised how factory work was demeaning to employees
  6. 6. Scientific Management- Frederick Taylor  Develop a science for each element of an individual’s work  Scientifically select, train, teach and develop worker  Cooperation with workers  Divide work responsibility equally between management and workers
  7. 7.  Frank and Lillian Gilbreth refined Taylor’s methods.  Made many improvements to time and motion studies.  Time and motion studies: 1. Break down each action into components. 2. Find better ways to perform it. 3. Reorganize each action to be more efficient.  Gilbreths also studied fatigue problems, lighting, heating and other worker issues.
  8. 8. - Study conducted in Hawthorne plant of General Electric Company, Chicago - Mayo, Roethlisberger, Dickson, Whitehead  Illumination experiment (1924-27)  Relay room experiment (1927-28)  Mass interviewing (1928-30)  Bank wiring observation (1931-32)
  9. 9.  Social factors in output  Group Influence  Conflicts  Leadership  Supervision  Communication
  10. 10. Administrative Theory  French industrialist Henry Fayol  Proposed that a manager plans, organises, directs, controls and coordinates  14 principles of management including division of labour, authority, scalar chain, unity of command, initiative
  11. 11. 1. Division of work 2. Authority 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest to the general interest 7. Remuneration
  12. 12. 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability and tenure 13. Initiative 14. Esprit de corps
  13. 13. Proposed Structural Theory Described bureaucratic structure • Division of labour • clearly defined hierarchy, • detailed rules and regulations and • impersonal relationships
  14. 14.  Formal rules regulations  Division of labour  Hierarchical structure  Authority structure  Lifelong commitment
  15. 15. Mary Parker Follett Emphasised on group ethics Manager must coordinate group efforts
  16. 16. Social Systems Theory Organisations made up of people who have interacting social relationship They communicate Success depends on maintaining good relations
  17. 17.  Described organisations as a complex network of decisional process  Decision process comprises: i) intelligent activity ii) design activity iii) choice activity  Bounded rationality  Administrative man : simplification, satisficing approach  Orgaisational Communication
  18. 18.  Nature of management as innovative and creative  Manager has to act as administrator, entrepreneur, set objectives etc.  Organisation structure to facilitate effective functioning  MBO
  19. 19. Structuring of an organization into departments or units on the basis of type of work performed A functional manager is a person who has management authority over an organizational unit - such as a department - within a business or company
  20. 20.  Authoritative  Participative  Free-rein  Pseudo autocratic
  21. 21.  Leaner organisations  Outsourcing  Contingent workforce
  22. 22.  Virtual corporations Highly flexible, temporary organisations formed by a group of companies to exploit a specific opportunity
  23. 23.  Socio-technical approach  Management science  Human relations approach  Systems approach  Contingency approach
  24. 24.  Considers relationships inside and outside the organization.  The environment consists of forces, conditions, and influences outside the organization.  Systems theory considers the impact of stages: Input: acquire external resources. Conversion: inputs are processed into goods and services. Output: finished goods are released into the environment.
  25. 25.  An open system interacts with the environment. A closed system is self-contained.
  26. 26.  Uses rigorous quantitative techniques to maximize resources. Quantitative management: utilizes linear programming, modeling, simulation systems. Operations management: techniques to analyze all aspects of the production system. Total Quality Management (TQM): focuses on improved quality. Management Information Systems (MIS): provides information about the organization.
  27. 27.  Assumes there is no one best way to manage  The environment impacts the organization and managers must be flexible to react to environmental changes.  The way the organization is designed, control systems selected, depend on the environment.  Technological environments change rapidly, so must managers.