Evolution of management thought.pptx

evolution of Management thought

1. Evolution of management thought

2. Introduction Evolution of management began in the late 19 th century after the industrial revolution. Inventions during industrial revolution such as rise of factory system led to different school of management thought

3. Approaches to management

4. Scientific management

5. Scientific Management approach The early pioneer of Scientific Management Theory was Frederick Taylor - Principles of Scientific Management. His work envisioned One Best Way to do a job. He proposed the following method for addressing any managerial task: Develop science for the elements of work to replace rule of thumb Select, train, teach workers Cooperate with Workers to ensure work is done Divide work suitably between workers and managers Another major contribution to Scientific Management theory was by Frank Gilbreth and Lillian Moller Gilbreth. They studied task process and efficient body motions. They focused on the efficiency of effort furthering the understanding of the best way to carry out a process.

6. Management process or Administrative Management Approach While scientific approach focuses on the duties of individual workers, administration management function focuses on all organization management . The most important contributors to the field of administrative management are Henry Fayol and Luther Gullick Fayol expect the things from mangers that Taylor expect from workers Fayol is the first person to define management as a process Fayol examines business operations in terms of major departments and collect them in six organizational action group in the form of commercial, technical, financial, security , accounting and managerial activities.

7. Administrative management approach Technical actions : Associated with production Commercial actions : includes action such as selling , buying and exchanging. Financial actions: Actions related to the best use of main fund and to conduct research in this direction Security Actions: actions to take necessary measures to protect human and material resources against various threat Accounting Actions: Data Collection Activities related to the economic situation of the organization Managerial Actions: Planning ,organizing, commanding, Controlling

8. Human Relations Approach It is concerned with recognition of importance of human element in the organization. Elton Mayo and his associates conduct Hawthorne experiments and investigated myriad of informal relationships, social cliques, pattern of communication, pattern of informal leadership “Being Nice to people” it gave importance to Social and psychological factors in determining workers productivity and satisfaction

9. Behavioral Science Approach Extension modification and refinement of human relations approach It recommends a study of Behaviourial science (like psychology, industrial psychology, sociology) For understanding the human behaviour at work and applying theories for moulding human behaviour in desired manner. The advocates of this school concentrated on motivation , individual drivers, group relations. Difference between Human relations Human needs human relation only social needs, behavioural dynamic needs Org is only social system whereas organisation as a socio technical systems which are required to achieve a set of individual social and corporate goals Employee satisfaction – money whereas self actualisation

10. Quantitative or Management Science Approach Post world war II, British use of Mathematics, operations research in military operations find applications in US post war industrial development. Quantitative Management : use of Mathematic models, linear programming, simulation systems and chaos theory to solve management problems. Operations Management : Techniques used to analyze all aspects of the production system.

11. Systems approach By a systems approach to management is meant the study of a firm in its  totality  so that the men and material resources of the firm can be organized to realize the firm's overall objectives as efficiently as possible. This approach is now becoming essential because of the growth of complexity of firms and the increasing potential of automatic computers. The systems approach to management implies that every manager should be much more precise about decision-making and information flow. For this to be effective, a company should have an overall system of corporate objectives. 

12. Contingency Approach/ Situational approach Idea is that internal functioning of the organization must be consistent with the demands of technology and External environment and the needs of its members if the organisationnis to be effective. “There is no best way to handle any management problems.” The application of management principles will be based on existing circumstances. Three Major parts: Environment Management Concepts, principles and techniques Contingency relationship between two

13. Operational approach Koontz and O’Donnel have advocated operational. This approach recognizes that there is a central core of knowledge about managing which exists in management such as Line and Staff, span of control, pattern of departmentation. It regards management as universally applicable body of Knowledge that can be bought to bear at all levels of managing and in all type of enterprises. Mgmt is regarded as a process for getting things done through process of planning, organizing, staffing, leading and controlling This approach also give importance to differences in actual problems and environments in which firms operates.

14. Empirical Approach According to this approach, management is the study of the experiences of managers. The knowledge based on experiences of successful managers can be applied by other managers in solving problems in future and in making decisions. Thus, the empirical school is based on analysis of past experience and uses the case method of study and research. Managers can get an idea of what to do and how by studying management situations of the past. They can develop analytical and problem-solving skills. They can understand and learn to apply effective techniques in comparable situations. But management, unlike law, is not a science based on precedent, and future situations exactly resembling those of the past are unlikely to occur. Indeed, there is a positive danger in relying too much on past experience…….. for the simple reason that a technique found “right” in the past may be far from an exact fit for a somewhat similar situation of the future.

15. Classical Theory

16. Classical theory of management It is a branch of management theory which evolved around 19 th century. It was developed during Industrial Revolution when problems related to factory systems began, to recognize the role that management play in any organization focusing on efficiency of workers. It professes the body of management thought based on the belief that employees have only economical and physical needs and that social needs and needs for job satisfaction either does not exist or are unimportant

17. Constituent Theories

18. Neo –Classical/Human Relations Approach They Focussed on “ Human Aspect ” of on Industry. Organisation is a “Social system”. They Conducted “ Hawthorne Experiments ” and investigated informal groups, informal relationships, pattern of communication. https://www.youtube.com/watch?v=JPIgh7feCpM

19. Behavioral Science approach Behavioural sciences approach to management which started after 1940 is an extension, modification and refinement of human relations approach. Behavioural sciences approach recommends a study of behavioural sciences (like, psychology, industrial psychology, sociology, anthropology etc.) for understanding human behaviour at work; and applying the basic concepts, theories and models of these sciences for moulding human behaviour in the desired manner. Some important sociologists and psychologists who have contributed to this approach are: A.I I. Maslow, Douglas McGregor, Frederick Herzberg, Kurt Lewin, Keith Davis, Chris Argyris, George Homans etc.

20. Merits

21. Limitations

22. Systems Approach In the 1960, an approach to management appeared which try to unify the prior schools of thought. This approach is commonly known as ‘Systems Approach’. Its early contributors include Ludwing Von Bertalanfty , Lawrence J. Henderson, W.G. Scott, Deniel Katz, Robert L. Kahn, W. Buckley and J.D. Thompson. They viewed organisation as an organic and open system, which is composed of interacting and interdependent parts, called subsystems.  The system approach is top took upon management as a system or as “an organised whole” made up of sub- systems integrated into a unity or orderly totality. For example, the world can be considered-to be a system in which various national economies are sub-systems. In turn, each national economy is composed of its various industries, each industry is composed of firms’ and of course a firm can be considered a system composed of sub-systems sudi as production, marketing, finance, accounting and so on.

23. Features of A system A System is a combination of Parts and Sub System Parts and sub parts are mutually related to each other Prevalence of a boundary Systems transforms input into outputs

24. Limitations

25. Contingency Approach to Management The ‘Contingency Approach to Management’ is relatively a new approach to manage­ment. It is an extension of the system approach. The basic idea of the contingency approach is that the organisation has to come up with different situations in different ways. There is no single best way of managing applicable to all situations. In order to be effective, the internal functioning of an organisation must be consistent with the demands of the external environment. The managers must keep the functioning of an organisation in harmony with the needs of its members and the external forces. The contingency approach is the outcome mainly of the research studies conducted by Tom Burns and G. W. Stalker, Joan Woodward, Paul Lawrence and Jay Lorsch, James Thomson and others. 

26. Features of Contigency approach

27. What You “Do Depends on Situation”. Internal Contigency Factors External Contigency Factors

28. Internal Contingency Factors Technology Purpose Task Structure People

29. Difference Between Systems Approach And Contingency Approach Example of a Shoe manufacturing Company A Shoe Manufacturing Company Faced with problems of Decreasing Profits Soution (Systems Approach) May establish a committee of sales and Production personnel to coordinate the production and Distribution of Goods under the Assumption that large Inventories are responsible for decline in profits. By Application of Contingency Theory Would unable to examine the situation and to determine the case of decreased profits before a new procedure or program is implemented