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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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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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