Evolution of Management Theory by Stephen Robbins

Principles of mangement

1. EVOLUTION OF MANAGEMENT THEORY Prof Maseera Patel (M.M.S, M.Com, N.E.T, S.E.T)

2. Contents Historical Background Of Management. Classical Approach. Quantitative Approach. Behavioral Approach Contingency/Contemporary Approach

3. Major Approaches to Management

4. Historical Background of Management Ancient Management Egypt (pyramids) and China (Great Wall) Adam Smith Published The Wealth of Nations in 1776 3. Industrial Revolution

5. Scientific Management FREDRICK WINSLOW TAYLOR The “father” of scientific management Published Principles of Scientific Management (1911) Says “Management is a science. There is one best way and one best person to do the task. I love efficiency and I love to study people at work. Management should be an academic discipline.” (He had a point…) His work influenced: Bringing psychology into the workplace Gantt Chart and planning Harvard University Offering Management Degree

6. Scientific Management Principles Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method. Scientifically select and then train, teach, and develop the worker. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.

7. Is Scientific Management Relevant Today?

8. General Administrative Theory HENRY FAYOL Principles of Management 2. MAX WEBER Developed a theory of authority based on an ideal type of organization (bureaucracy). Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism,

9. Fayol's 14 Principles of Management Division of work Authority Discipline Unity of command Unity of direction Subordination of individual interests to the general interest 7. Remuneration 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability of tenure of personnel 13. Initiative 14. Esprit de corps

10. Weber’s Bureaucracy

11. Weber’s Bureaucracy

12. Case- Study

13. UNDERSTANDING ORGANISATIONAL BEHAVIOUR Organizational Behavior (OB) People are the MOST important asset of an organization or firm (True or False?)

14. THE HUMAN RELATIONS APPROACH THE HOWTHORNE STUDIES Elton Mayo- Father of Human Relations Approach A series of productivity experiments conducted at Western Electric from 1924 to 1932. The Hawthorne experiments were conducted in four phases: 1) Illumination experiments 2) Relay assembly test room experiments 3) Interview phase 4) Bank wiring observation room experiments

15. 1. ILLUMINATION EXPERIMENT The first, a sequence of illumination tests from 1924 to 1927, set out to determine the effects of lighting on worker efficiency in three separate manufacturing departments. Accounts of the study revealed no significant correlation between productivity and light levels. The results prompted researchers to investigate other factors affecting worker output

16. 2. RELAY ASSEMBLY ROOM EXPERIMENT This phase aimed at knowing not only the impact of illumination on production but also other factors like length of the working day, rest hours, and other physical conditions In this experiment, a small homogeneous work-group of six girls was constituted. These girls were friendly to each other and were asked to work in a very informal atmosphere under the supervision of a researcher.

17. 2. RELAY ASSEMBLY ROOM EXPERIMENT The incentive scheme was changed so that each girls extra pay was based on the other five rather than output of larger group, say 100 workers or so. The productivity increased as compared to before. Two five minutes rests- one in morning session and other in evening session-were introduced which were increased to 10 minutes. The productivity increased The rest period was reduced to 5 minutes but frequency was increased. The productivity decreased slightly and the girls complained that frequent rest intervals affected the rhythm of the work. The number of rest was reduced to two of 10 minutes each, but in the morning, coffee or soup was served along with sandwich and in the evening, snacks was provided. The productivity increased. Changes in the working hours and workdays were introduced such as cutting an hour off the end of the day and eliminating Saturday work. the girls were allowed to leave at 4.30 pm instead of usual 5.00 pm and later at 4.00pm. Productivity increased.

18. CONCLUSION As each change was introduced, absenteeism decreased, morale increased and less supervision was required. Sense of belongingness ,self- discipline, sincerity increases.

19. 3. THE INTERVIEW PHASE 21,000 employees were interviewed over a period of three years to find out reasons for increased productivity It was concluded that productivity can be increased if workers are allowed to talk freely about matters that are important to them

20. 3. THE INTERVIEW PHASE Initially, a direct approach was used whereby interviewers asked questions considered important by managers and researchers. The researchers observed that the replies of the workmen were guarded. Therefore, this approach was replaced by an indirect technique, where the interviewer simply listened to what the workmen had to say. The findings confirmed the importance of social factors at work in the total work environment.

21. 4. BANK WIRING TEST ROOM EXPERIMENT Conducted during 1931- 1932 A group of 14 male workers in the bank wiring room were placed under observation for six months. A worker's pay depended on the performance of the group as a whole. The researchers thought that the efficient workers would put pressure on the less efficient workers to complete the work. However, it was found that the group established its own standards of output, and social pressure was used to achieve the standards of output.

22. 4. BANK WIRING TEST ROOM EXPERIMENT The hypothesis was that in order to earn more workers would produce more and in order to take advantages of group bonus, they would help each other to produce more. But this reason failed as workers decided the target for themselves which was lower than the companies target. Ex- group target for a day was connecting 6600 terminals against 7300 terminals set by the company. The worker gave following reasons for the restricted output: Fear of unemployment: Fear of raising the standards:. Protection of slower workers Satisfaction on the part of management

23. NORMS Don't be a rate-buster, chisler or squealer Don’t act officious The norms under which the group operated were: You should not turn out too much work. If you do, you are a rate buster You should not turn out too little work. If you do, you are chisler You should not tell a supervisor anything that might get a colleague into trouble. If you do, you are a squealer You should not attempt to maintain social distance or act officiously, If you are an inspector, for example, you should not act like one.

24. SANCTIONS BINGING, RIDICULE AND EXCLUSION Norms were enforced through a system of negative sanctions or punishment: Ridicule-When a group member was referred as “The Slave’ or Speed King Binging-When a norm violator was tapped on the upper arm Total rejection or exclusion of the individual by the group as a whole

25. QUANTITATIVE APPROACH TO MANAGEMENT Quantitative Approach Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality developed to solve WWII military logistics and quality control problems. British and American military had developed techniques using math/stats to plan for attacks, convoy sizes, bombing raids, etc.… Focuses on improving managerial decision making by applying Statistics, optimization models, information models, and computer simulations. Computers do most of this work today

26. WHAT IS QUALITY MANAGEMENT? Intense focus on the customer Concern for continual improvement Process-focused Improvement in the quality of everything Accurate measurement Empowerment of employees

27. THE ORGANIZATION AS AN OPEN SYSTEM

28. IMPLICATIONS OF THE SYSTEMS APPROACH Coordination of the organization’s parts is essential for proper functioning of the entire organization. Decisions and actions taken in one area of the organization will have an effect in other areas of organization. Organizations are not self-contained and, therefore, must adapt to changes in their external environment.

29. THE CONTINGENCY APPROACH Contingency Approach Defined Also s sometimes called the situational approach. There is no one universally applicable set of management principles (rules) by which to manage organizations. Organizations are individually different, face different situations (contingency variables), and require different ways of managing.

30. POPULAR CONTINGENCY VARIABLES

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