PPT 2 ; Development of Management Thoughts Chapter Itwo.pdf

This is the training document about development of management in working environment

1. Development of Management
Thoughts
Chapter Two

2. Evolution of Management
•The history of management can be traced
back to 5000 B.C.
•when the agriculture revolution was at the
initial stage.
•In Egypt, in 2900 B.C., the pyramids were built
in a highly organized and coordinated manner.
These pyramids have become a classic
example of management

3. Evolution of Management
•Apart from this, management skills can also be found
in the suave cities of Mohan-jo-Daro in India.

•Another great example of management was shown in
the organized military of Alexander the Great during
his military conquests in 336 to 323 B.C.

• Management was also a part of the Roman Empire,
which organized its general administration and
controlled its political, military and judgmental issues
by using effective communication.

4. Evolution of Management
•Management that we observe in organizations
is attributed to the industrial revolution in the
late eighteenth century. Let us discuss about
management and the industrial revolution.

5. INDUSTRIAL REVOLUTION
•Management practices that have been followed
in organizations emerged as a result of the
industrial revolution in the late eighteenth
century.
•Industrial revolution was a period of transition
from manual production methods to new
manufacturing processes in the late eighteenth
century.
•Prior to this period, only small-scale industries
were present for the survival of the world’s vast
population.

6. INDUSTRIAL REVOLUTION
•After the industrial revolution, people began
to shift their base to urban cities. As these
cities were witnessing the emergence of
factories, there were a large number of
employment opportunities. During industrial
revolution, management was based on two
main propositions, which are:

7. INDUSTRIAL REVOLUTION
•Firstly, labor was perceived as a bunch of
lethargic people who work only when
controlled and supervised.

•Secondly, labor was the only factor that could
bring reduction in costs.
•Therefore, all the efforts were made to reduce
labor costs and increase production.

8. Approaches to management
•The industrial revolution laid the foundation
for various management approaches.


•Each approach has attempted to explain the
concept of management from different
aspects.

9. What are management theories
•Management theories are a collection of ideas
that recommend general rules for how to
manage an organization or business.

•They address how supervisors implement
strategies to accomplish organizational goals
and how they motivate employees to perform
at their highest ability.

10. Management theories
•Typically, leaders apply concepts from
different management theories that best suit
their employees and company culture.

• Although many management theories were
created centuries ago, they still provide
beneficial frameworks for leading teams in the
workplace and running businesses today.

11. Benefits of management theories

•Increased productivity: Using these theories,
leaders learn how to make the most of their team
members, improving performances and
increasing productivity.

•Simplified decision making: Management
theories give leaders strategies that speed up the
decision-making process, helping those leaders
be more effective in their roles

12. Benefits of management theories
•Increased collaboration: Leaders learn how to
encourage team member participation and
increase collaboration among an entire group
.
•Increased objectivity: Management theories
encourage leaders to make scientifically
proven changes rather than relying on their
judgment

13. Approaches to management
The two most common approaches to
management are
•Classical/traditional approach
•Modern approach

14. 1Traditonal/Classical management
theories
•The traditional management theories had their origin
in the industrial revolution when technological
developments, expanding trade/markets, growing
populations created opportunities for mass production
through a systematic and mechanized process.

•Traditional management theorists were concerned
with the formal relations among an organization's
departments, tasks and processes, and in the
promotion of greater efficiency and productivity
among the workers.

15. Traditional/Classical management
theories
Traditional theories can be categorized into
three main branches
•Scientific management.
•Bureaucratic management,
•Administrative management and

16. Traditonal/Classical management
theories
•All three management concepts emerged
around the same period around the late 1890s
to early 1990s, and resulted largely from the
work of engineers who had particular interest
in increasing productivity within the factories.

17. 1. SCIENTIFIC MANAGEMENT school
•The scientific management theory was
developed by Frederick Winslow Taylor (1856-
1915), who was an American engineer. Thus,
scientific management is also popular by the
name of Taylorism.
•He conducted a series of experiments in three
organizations that greatly influenced
management thoughts.

18. Taylor's Contributions of Scientific
management
1. Time and motion study:
It is a technique of scientific management that
was developed to define employee productivity
standards.
In this technique, a complex job is first divided
into a series of simple tasks.
After that, the way these tasks are performed is
observed to determine and eliminate waste
motions.

19. Taylor's Contributions
•In this way, the precise time taken to complete
the job is determined, which further helps in
developing delivery schedules and incentive
schemes.

•Time and motion study is most appropriate for
repetitive jobs

20. Taylor's Contributions
2. Differential piece rate plan:
•This plan was developed by Taylor on the assumption
that all the workers have different capabilities and
must be paid accordingly.

•This plan is also based on an assumption that the
production system is based on piece rates.

•Under the plan, time and motion study is used to
estimate the standard time of completing a job.
•

21. Taylor's Contributions
•Based on the standard time, two piece rates
are devised, namely higher and lower.
•The workers who exceed the standard time
are given higher piece rates as wages.

•On the other hand, lower piece rates are given
to those workers who do not meet the
standard

22. Taylor's Contributions
3. Supervision:
•Taylor suggested that work in an organization
must be planned and assigned to the workers
by foremen.
•Foremen should assign work on the basis of
workers’ specialty and supervise the
performance of workers.
• For that, an organization should hire
adequate number of foremen.

23. Taylor's Contributions
4. Scientific recruitment and training:

Taylor laid emphasis on training workers and
developing their skills so that they can efficiently
perform more than one type of job.

24. Taylor's Contributions
5. Friendly cooperation between management
and workers:
•Taylor believed that both management and
workers have one common goal, i.e. increase
in production.
•Therefore, both management and workers
must work together in harmony to achieve the
common goal.

25. Taylor's Contributions
•Taylor is considered to be one of the most influential
persons in terms of impact on management service
practice as well as on management thought up to the
present day.
•In his 1909 publication, “Principles of Scientific
Management”, Taylor spearheaded the scientific
management movement, a management approach
that emphasized improving work methods through
observation and analysis.
•He also popularized using financial incentives –
financial rewards paid to workers whose production
exceeds some predetermined standard.

26. Taylor's Contributions
•His framework for a successful organization
included:
•(i) clear delineation of authority;
•(ii) responsibility;
•(iii) separation of planning from operations;
(iv) incentive schemes for workers;
• (v) management by exception; and
•(vi) task specialization.

27. 2. ADMINISTRATIVE MANAGEMENT

•Henri Fayol (1841-1925), a French mining
engineer, promoted the concept of administrative
management.
• He focused on developing administrative
principles that could be applicable to both
general and higher managerial levels.
•Fayol presented 14 principles of management,
which act as a guide for developing management
practices.

28. ADMINISTRATIVE MANAGEMENT
Henri Fayol was the first person to group
management functions that today are summarized
as planning, organizing, leading, coordinating,
controlling and staffing. He identified fourteen
management principles that included:
(i) division of labor (specialization leads to greater
efficiency);
(ii) authority (managers have the authority to get
things done);
(iii) discipline (members of the organization need to
respect the rules and regulations that govern it);

29. ADMINISTRATIVE MANAGEMENT
(iv) unity of command (avoid conflicting and/or
confusing instructions);
(v) unity of direction (only one manager should
be responsible for an employee’s behavior;

(vi) subordination of individual interest to the
common good (the interests of individual
employees should not take precedence over the
interests of the entire organization);

30. ADMINISTRATIVE MANAGEMENT
(vii) remuneration (pay for work done should be
fair to both the employee and the employer);
(viii) centralization (managers should retain the final
responsibility)
(ix) scalar chair (a single uninterrupted line of
authority should run rank to rank from top
management to the lowest level position in the
company);
(x) order (materials and people need to be in the
right place at the right time);

31. ADMINISTRATIVE MANAGEMENT

(xi) equity (managers should be both friendly and fair to
their subordinates);
(xii) stability and tenure of staff (stability and tenure
should be enhanced and high staff turnover should be
avoided);
(xiii) initiative (subordinates should be given the freedom
to formulate and carry out their own plans;
(xiv) esprit de corps (promoting team spirit gives the
organization a sense of unity.
•Fayol’s management principles are still widely practised
by many companies today.

32. Bureaucratic management theory/
school
•Bureaucratic management, as depicted by its
name, focuses on a rigid system which has a
set hierarchy, a clear division of labor, and
detailed rules and procedures.
•It provides a blueprint of how an organization
should operate in the most efficient manner.

33. Bureaucratic management theory
Max Weber (1864 – 1920) identified seven
characteristics of bureaucratic management:
•(i) rules (formal guidelines for the behavior of
employees while they are on the job);
•(ii) impersonality (all employees are evaluated
according to rules and objective data);
•(iii) division of labor (the process of dividing
duties into simpler, more specialized tasks);

34. Bureaucratic management theory
•(iv) hierarchical structure (helps control the
behavior of employees by making clear to each
exactly where he or she stands in relation to
everyone else in the organization);
• (v) authority structure (determines who has the
right to make decisions of varying importance at
different levels within the organization);
•(vi) life-long career commitment (job security is
guaranteed as long as the employees is
technically qualified and performs satisfactorily;

35. Bureaucratic management theory

•(vii) rationality (managers operate logically
and scientifically with all decisions leading
directly to achieving the organization's goals).

36. Bureaucratic management theory
•The bureaucratic approach is most effective
when the organization is required to handle
large quantities of standard information, the
needs of the customer are known and not
likely to change, the technology is routine and
stable, and the organization has to coordinate
the activities of numerous employees in order
to deliver a standardized service or product to
the customer.

37. MODERN APPROACH to management
•The modern approach to management was given
in the 1950s.
•The approach focused mainly on employee
satisfaction.
•According to this approach, employees do not
necessarily work for money and they like to
receive affection and respect of co-workers,
which further increases their productivity.
•This helps an employee to contribute more
towards the success of an organization.

38. The behavioral theory
•The scientific management movement focused
primarily on production, management, organization,
technology and science, but little attention was paid to
how people might be impacted, the way in which they
react and are likely to react to future.
•The focus of attention had been almost exclusively on
the jobs which individuals performed and how they
could be improved.
•Benefits went disproportionately to the company and
the individual’s work experience was dehumanizing as
they were treated as extensions to the machines.

39. Human Relations Management
Theory

•As the title implies, Human Relations
Management Theory is centered around
human interactions and relationships.

•

40. Human Relations Management
Theory
•During the radical social and cultural changes that
occurred in the 1920s and 1930s, the behavioral
theories emerged that stresses the importance of
group dynamics, complex human motivations
and the manager’s leadership style.
•It also emphasizes the employee’s social and
economic needs and the influence of the
organization's social setting on the quantity and
quality of work produced, and its focuses on two
competencies – communication and teamwork..

41. Human Relations Management
Theory
•This increase in attention to the human factors has
become known as the ‘human relations school of
management’.

•Some of the more prominent theorists in this field
included Elton Mayo (1880 – 1949), Mary Parker Follett
(1868 – 1933), Chester Barnard (1886 – 1961),
Abraham Maslow (1908 – 1970), Douglas McGregor
(1906 – 1964), Rensis Likert (1903 – 1981), Frederick
Herzberg (1923 – 2000), David McClelland (1917 –
1998) and Chris Argyris (1923 – present)

42. Human Relations Management
Theory
•One of the most prominent behavioral
theorists is Elton Mayo
•Elton Mayo believed that all early
management theories only focused on how
money affects employee performance.
•He believed there were more factors that
influenced how employees behaved and
performed at work.

43. Human Relations Management
Theory
• His ground breaking study of Western Electric
Company’s Hawthorne Plant in Chicago which he
conducted with Fritz Roethlisberger and William
Dickson between 1924 and 1933.
•During the course of Mayo’s studies, he managed
to switch the focus of attention away from the
individual and physical considerations to the
importance of groups at work requiring
sociological and psychological consideration.

44. Human Relations Management
Theory
Some of his major findings included:
•(i) workers thought and acted not as
individuals but as a group;
•(ii) workers should sacrifice their self-interest
in the face of group pressure;
•(iii) money is not the sole motivator;.

45. Human Relations Management
Theory
•(iv) supervisors have significant influence on output;
•(v) the social world of the adult is patterned around
work activity;
•(vi) the need for recognition, security and sense of
belonging is more important in determining workers’
morale and productivity than the physical conditions
under which he works;
•(vii) a complaint is not necessarily an objective recital
of facts; it is commonly a symptom manifesting
disturbance of an individual’s status position;

46. Human Relations Management
Theory
•(viii) the worker is a person whose attitudes and
effectiveness are conditioned by social demands
from both inside and outside the work plant;
•(ix) informal groups within the work plant
exercise strong social controls over the work
habits and attitudes of the individual worker; and
•(x) group collaboration does not occur by
accident; it must be planned and developed

47. Human Relations Management
Theory
•He therefore recommended that:
•(i) managers must not ignore the informal
organization but ensure that its norms are in
harmony with organizational goals;
•(ii) man is basically motivated by social needs,
not economic ones;
•(iii) work is rationalized by employees and
meanings are sought in social relationships at
work;

48. Human Relations Management
Theory
•(iv) managers must focus on the work group
rather than individuals, but workers should be
considered in a personal context in order to
understand each employee’s unique needs and
sources satisfaction; and
•(v) effective supervisors are those who satisfy
subordinate’s social needs.
•Mayo’s work is now part of the management
folklore which has led to the movement to reject
the views of the traditionalists to the school of
‘human relations’ management

49. Systems approach:
•It was developed in the late1960s with an aim
to provide an integrated approach to solve
management problems.

•According to this approach, a system can be
defined as a set of components that are
interacting regularly or are interdependent,
thus making a single unit.

50. Systems approach
The systems approach focuses on the following
points:
•A system comprises units and sub-units.
•Each and every part of a system need to be
thoroughly understood in order to analyze it.
•A system always has boundaries to define its
beginning and ending.
•Every system is developed to achieve a specific
goal.
•No system can exist in isolation.

51. Systems approach
•This theory asserts businesses consist of multiple
components that must work in harmony for the
larger system to function optimally. The
organization’s success, therefore, depends on
synergy, interdependence and interrelations
between subsystems.
•According to this theory, employees are the most
important components of a company, and
departments, workgroups and business units are
all additional crucial elements for success.

52. Systems approach
•Per the systems management theory,
managers should evaluate patterns and events
within the organization to determine the best
management approach. They need to
collaborate and work together on programs to
ensure success.

53. Contingency approach:
•This approach is also known as situational
approach wherein an organization determines
problems by analyzing its conditions and
environment.

•According to this approach, there is no single
set of rules that is applicable in solving all
types of problems in organizations.

54. •Therefore, managers need to analyze every
problem and various aspects associated with
it, and define different ways to solve the
problem

60. Types of management theories