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Chapter-2, Evolution of Management Thought

The document discusses the evolution of management thought from classical to modern approaches. It describes early theories like scientific management which focused on worker productivity. Bureaucratic management focused on organizational systems and structure. Behavioral approaches acknowledged human factors. Modern theories include systems theory which views organizations holistically, and contingency theory which says the best management approach depends on situational factors. Quantitative approaches apply statistics and models, while newer theories emphasize quality and continuous improvement.

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Pooja Sheoran
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0% found this document useful (1 vote)
280 views

Chapter-2, Evolution of Management Thought

The document discusses the evolution of management thought from classical to modern approaches. It describes early theories like scientific management which focused on worker productivity. Bureaucratic management focused on organizational systems and structure. Behavioral approaches acknowledged human factors. Modern theories include systems theory which views organizations holistically, and contingency theory which says the best management approach depends on situational factors. Quantitative approaches apply statistics and models, while newer theories emphasize quality and continuous improvement.

Uploaded by

Pooja Sheoran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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INTRODUCTION

The term management encompasses an array of different functions


undertaken to accomplish a task successfully.
It is the process of designing and maintaining an environment in which
individuals, working to gather in groups, efficiently accomplish selected aims.
There are many approaches for the management varying from a problem to
problem solving style to the change.
Each approach has its own limitations and advantages.
Management is all about getting things done.
ENVIRONMENT FACTORS
SOCIAL
INFLUENCE
The aspects of culture that influence norms
and values
ECONOMIC
INFLUENCE
The concept to availability, production, and
distribution of resources within a society
POLITICAL
INFLUENCE
The impact of political institutions on
individuals and organisations
EVOLUTION OF MANAGEMENT THOUGHT
DIFFERENT APPROACHES
SCIENTIFIC
ADMINISTRATIVE
BUREAUCRATIC
CLASSICAL
GROUP INFLUENCES
MASLOWS NEED THEORY
THEORY X AND THEORY Y
HAWTHORNE STUDIES
BEHAVIOURAL
SYSTEM
CONTINGENCY
THEORY Z AND QUALITY MANAGEMENT
QUANTITATIVE
MODERN
MANAGEMENT SCIENCE
OPERATIONS MANAGEMENT
MANAGEMENT INFORMATION SYSTEM

Focuses on the
individual workers
productivity
Focuses on the
functions of
management
Focuses on the
overall
organizational
system
CLASSICAL APPROACH
Scientific Management
Early 1900s
It is defined as that kind of management which
conducts a business or affairs by standards
established, by facts or truths gained through
systematic observation, experiment, or reasoning.
Major contributors:
Frederick Winslow Taylor
Frank and Lillian Gillbreth
Henry L.Gantt
SCIENTIFIC MANAGEMENT: Taylor
develop a scientific approach for each element of ones work
scientifically select, train, teach and develop each worker
cooperate with workers to ensure that jobs match plans and
principles
ensure appropriate division of labor
FOUR
PRINCIPLES
Task Performance
Supervision
Motivation
THREE AREAS OF
FOCUS:
Piece-rate-incentive system
Time and motion study
TWO MANAGERIAL
PRACTICES:
SCIENTIFIC MANAGEMENT:
Henry Gantt and The Gilberths
HENRY
GANTT
Most famous for developing the Gantt chart in the 1910s.Well known for Task and - bonus system
-The Gantt chart
Implemented a wage incentive programme, If the worker completed the work fast, i.e., in less than
the standard time, he received a bonus.
It is a Simple chart that compares actual and planned performances.
FRANK
GILBERTH
1868-1924
Motion study involves finding out the best sequence and minimum number of motions needed to
complete a task.
Explore new ways for eliminating unnecessary motions and reducing work fatigue.
LILLIAN
GILBERTH
A strong proponent of better working conditions as a means of improving efficiency and
productivity.
BUREAUCRATIC MANAGEMENT
Focuses on the overall organizational system.
Need for organization's to function on a rational basis
Bureaucratic management is based upon:
Firm rules
Policies and procedures
A fixed hierarchy
A clear division of labor
BUREAUCRATIC MANAGEMENT: Weber
A German sociologist and historian who
envisioned a system of management
a bureaucracy is a highly structured,
formalized and impersonal organization.
MAX WEBER
Division of labor
Hierarchy of authority
Rules and procedures
Impersonality
Employee selection and promotion
FIVE
PRINCIPLES
ADMINISTRATIVE MANAGEMENT
Focused on principles
that could be used by
managers to coordinate
the internal activities of
organizations
Five management functions
planning
organizing
commanding
coordinating
controlling
FAYOLs PRINCIPLE OF MANAGEMENT
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to
the common good
7. Remuneration of personnel
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Esprit de corps
BEHAVIOURAL APPROACH
The behavioural school of management
emphasized what the classical theorists
ignored.
Acknowledged the importance of human
behavior in shaping management style.
Personalities
Mary Parker Follett
Douglas McGregor
Chester Barnard
Elton Mayo
HIERARCHYs HUMAN NEEDS

SELF
ACTUALIZATION
NEED FOR SELF
ESTEEM
NEED FOR SOCIAL
RELATIONS
NEED FOR SECURITY
PHYSIOLOGICAL NEEDS
FOLLETT ON EFFECTIVE WORK GROUPS
FOUR PRINCIPLES OF COORDINATION
Coordination requires that people be in direct contact
with one another.
Coordination is essential during the initial stages of any
endeavor.
Coordination must address all factors and phases of
any endeavor.
Coordination is a continuous, ongoing process.
McGregor's PROPOSED STYLES
THEORY X
Most people dislike work and they avoid it
when they can.
Coerced and threatened with punishment
before they work.
Avoid responsibility and have little ambition.
THEORY Y
Work is a natural activity like play or
rest.
Capable of self direction and self
control.
Committed to organizational objectives.
ELTON MAYOs VIEW
Aimed to understand how psychological and social
processes interact with the work situation to influence
performance
Work represents the transition from scientific
management to the early human relations movement.
Emphasized on workers themselves and needs to
belong to a group
HAWTHORNE EXPERIMENTS
(1924 1932)
HAWTHORNE EFFECT
Workers perform and react differently when
researchers observe them.
Productivity increased because attention was
paid to the workers in the experiment.
Phenomenon whereby individual or group
performance is influenced by human behavior
factors
Quantitative Approach
It includes the application of statistics,
optimization models, information models and
computer simulations. More specifically, this
approach focuses on achieving organizational
effectiveness.
Three main branches:
Management Science
Operations Management and
Management Information Systems.
Management Science
It stresses the use of mathematical models and
statistical methods for decision-making.
Another name is the Operations Research.
Operations Management
It deals with the effective management of the
production process and the timely delivery of
an organizations products and services.
Management
Information Systems
Management information systems focuses
on designing and implementing computer-
based information systems for business
organizations.
Modern Approaches
to Management
Systems Theory
Contingency Theory
Systems Theory
Resources

Labor
Materials
Capital
Machinery
Information
Managerial and
Technological
Abilities
Planning
Organizing
Staffing
Leading
Controlling
Technology
Goods
Services
Profits and
losses
Employee
satisfaction
Inputs
Transformation process
Outputs
Feedback
CONTINGENCY THEORY
There is no One Best Way to manage all the
situations.
Also known as Situational Theory.
Developed by managers, consultants, and
researchers who tried to apply the concepts
depending on various Internal and External factors
AN EXAMPLE OF CONTINGENCY
JOAN WOODWARDs RESEARCH
Discovered that a particular management style
is affected by the organizations technology.
Identified and described three different types of
technology:
Small-batch technology
Mass-production technology
Continuous-process technology
Emerging Approaches In Management
Thought
William Ouchi, outlined new theory called
Theory Z.
It is the blend of positive aspects of both
American and Japanese management styles.
Quality Management is a management
approach that directs the efforts of
management towards bringing about
continuous improvement in product and
service quality to achieve higher levels of
customer satisfaction and build customer
loyalty.
30
Quality Management Theory
2f
Quality
School
The essence of the quality of
any output is its ability to meet
the needs of the person or
group
31
Quality Management Theory
2f
Kaizen
A Japanese term used to mean
incremental, continuous
improvement for people,
products, and processes

Reengineering

Businesses processes are
redesigned to achieve
improvements in performance
32
Reengineering Approach
2f
What a company must do
How to do it

Reengineering determines
To sense the need for change
To see change coming
To react effectively to change

Managerial Challenges
33
Quality School of Management
2f
Quality school is the most current and is worldwide
Its roots are in the behavioral, quantitative, systems,
and contingency schools of management theory
People are key to commitments and performance
What is done must be evaluated
quantitatively and qualitatively

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