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Ob evolution


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Ob evolution

  1. 1. Evolution of Management Thought
  2. 2. Organization A structured social system consisting of groups of individuals working together to meet some agreed-on objectives
  3. 3. Early Practices Adam Smith Scottish philosopher Wrote ‘Causes of Wealth of Nations’ Proposed ‘Division of Labour’
  4. 4. Job specialization    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.
  5. 5. Charles Babbage 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
  6. 6. Robert Owen Welsh entrepreneur Recognised how factory work was demeaning to employees
  7. 7. The Classical Era 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
  8. 8. Gilbreths  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.
  9. 9. Hawthorne studies - 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)
  10. 10. Implications of Hawthorne Experiment  Social factors in output  Group Influence  Conflicts  Leadership  Supervision  Communication
  11. 11. Classical Organization Theory Administrative Theory  French industrialist Henry Fayol  Proposed that a manager plans, organizes, directs, controls and coordinates  14 principles of management including division of labor, authority, scalar chain, unity of command, initiative
  12. 12. Fayol’s 14 principles 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
  13. 13. Fayol’s 14 principles 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability and tenure 13. Initiative 14. Esprit de corps
  14. 14. Max Weber Proposed Structural Theory Described bureaucratic structure • Division of labor • clearly defined hierarchy, • detailed rules and regulations and • impersonal relationships
  15. 15.  Formal rules regulations  Division of labor  Hierarchical structure  Authority structure  Lifelong commitment
  16. 16. Social Man Theory Mary Parker Follett Emphasised on group ethics Manager must coordinate group efforts
  17. 17. Chester Barnard Social Systems Theory Organisations made up of people who have interacting social relationship They communicate Success depends on maintaining good relations
  18. 18. Herbert Simon  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
  19. 19. Peter Drucker  Nature of management as innovative and creative  Manager has to act as administrator, entrepreneur, set objectives etc.  Organisation structure to facilitate effective functioning  MBO
  20. 20. Functional Management 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
  21. 21. Management Styles  Authoritative  Participative  Free-rein  Pseudo autocratic
  22. 22. New forms of organization  Leaner organizations  Outsourcing  Contingent workforce
  23. 23.  Virtual corporations Highly flexible, temporary organizations formed by a group of companies to exploit a specific opportunity
  24. 24.  Socio-technical approach  Management science  Human relations approach  Systems approach  Contingency approach
  25. 25. Systems approach  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.
  26. 26. Systems approach  An open system interacts with the environment. A closed system is self-contained.
  27. 27. Management Science  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.
  28. 28. Contingency Theory  Assumes manage there is no one best way to  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.