theories-of-management-2.Management (MGT201)

History of management

1. Theories of
Management

2. INTRODUCTION

3. Evolution of management theories:
The classical theory of management or
Structural theory of management.
The Neo-classical theory.
Modern management theories.

4. • Bureaucracy (Max Weber – 1864-1920)
•Scientific management (F.W. Taylor 1856-
1915).
•Process Management Theory – (H. Fayol
1841-1925), and others around 1910)
The Classical Theory or Structural theory of
management

5. Bureaucracy (Max Weber – 1864-1920)
•The first pillar in the classical organization
and management theory was systematically
provided by Maxweber (1864-1920) a
German sociologist. His primary
contribution to management is his theory of
authority structure and his description of
organization based on the nature of
authority relations with in them.

6. Essential elements of bureaucracy
•Hierarchy of Authority
•Division of work.
•A system of rules, regulations and procedures a
bureaucracy seeks rationality, routine, objectivity
and consistency for his organization.
•Impersonality of interpersonal (or) mutual relations.
•Standardization of methods
•Selection and promotion of employees
• Legal power and authority

7. Basic characteristics of bureaucratic
organization
•A division of labour by functional specialization.
•A well defined hierarchy of authority
•A system of procedure for dealing with work
situations
•A system of rules covering the duties and rights of
employment.
•Impersonal relations between people
•Selection and promotion based upon technical
competence and excellence.

8. Scientific management was championed by F.W.
Taylor (1856-1915) who eventually became
acclaimed as “The father of Scientific
Management”. The basic theme of Tylor was
that managers should study work scientifically
in order to identify ‘one best way’ to get job
done.
Scientific management
(F.W. Taylor 1856-1915)

9. Objectives of scientific management
To
•Make provision from the use of knowledge and
skill of production.
•Standardize materials and working conditions so as
to rise the level of production
•Reduce the possibility of slackness in production
accidents.
•Conduct surveys and organize researchers so as to
make the management a living and result yielding
science.
•Effect new and scientific technique in production.

10. To help
•the labour in overcoming his difficulties and solve
their organizational as well as domestic problems
in a manner in which he feels satisfied and
prepares himself for hard and selfless but
rewarding work.
•all round mental, physical and technical
development of the workers.
•increase in the levels of wage, profit and
consumers service of the highest degree.
•in proper guidance and leadership, regular and
adequate direction on proper lines, and fruitful co-
operation.

11. Elements of Scientific management
Scientific Task
 Planning
Working study
Scientific selection and training of workers
Standardization
Differential piece-rate system of wages
Functional organization and functional foremanship
Mental Revolution

12. Process Management Theory –
(H. Fayol 1841-1925), and others around 1910)
Henri Fayol was born at Constantinople in France
in 1841. He was a mining engineer. His whole
life was spent in a single institution unlike great
Taylor who worked with some eight different
companies. Fayol retired from his working life as
a general manager in 1918 and then worked as
director of the same company till his death in
1925.

13. •Physical qualities
•Mental qualities
•Moral qualities
•General knowledge and experience.
Management qualities and Training:

14. Neo – Classical Theory
•Human relations perspective
•Behavioral science perspective
•Mc Gregor – Theory X and Theory Y

15. The Hawthorne studies, though criticized for poor
research methods, stimulated considerable
interest in human problems on the job.
The study investigated the effects of changes
illumination on productivity.
Human relations perspective
(Mayo 1880-1949)

16. The researchers general conclusion was that non-
logical behaviour among the workers must be
considered along with economic and logical
factors as influencing the workgroup.
The Hawthrone studies revealed the importance of
social and psychological factors in determining
workers productivity and satisfaction.

17. Abraham Maslow initiated the human behavioral
school in 1943 with his development of a
hierarchy of needs theory.
He outlined a hierarchical structure for human
needs into five (1. Physiological, 2. Safely, 3.
Love, 3. Self - esteem and 5. Self –
actualization) needs are more complex.
Behavioral science perspective

18. Sample people may get recognition for the
quantity of work, others may get more
attention through negative behaviour such as
inferior work and tardiness.
Maslow’s work embarked the beginning of
behavioral science. Much subsequent work has
been based on his theory.

19. Douglas Mc Gregor developed the managerial
implications of Maslow’s theory. He put
forward two managerial styles:
–Theory X :- Representing classical views of
management and organization
–Theory Y :- Representing Neo-Classical (or)
Modern views of management and organization.
Mc Gregor – Theory X and Theory Y

20. •According to Theory X most people want to
be directed and to avoid responsibility
because they have little ambition.
•Managers who accept the assumptions of
Theory X will do the thinking, and planning
with little input from staff associates. They
will delegate little, supervise closely and
motivate workers through fear and threats,
failing to make use of their potentials.

21. •In Theory Y, emphasis is on the goal of the
individual.
•It is the manager’s assumption that people do not
inherently dislike work and that work can be a
source of satisfaction.
•Theory Y managers assume that workers have self
direction and self control necessary for meeting
their objectives and will respond to rewards for the
accomplishment of those goals.
•Managers who believe the assumptions of Theory
Y will allow participation. They will delegate, give
general rather than close supervision, support job
enlargement and use positive incentives such as
praise and reorganization.

22. Mc. Gregor believes that both approaches are
ineffective and recommends that the work
situation be structured so that workers can
meet their personal goals while working
toward the goals of the organization

23. Elements of Neo-classical Theory
•The Individual :- Individual differences must
be recognized.
•Work Groups :- Workers are not isolated
•Participative management :- Participate
labours in decision-making

24. Modern Management Theories
Indicate extension and synthesis of the Classical
and Neo-classical approaches to
management.
Quantitative approach to management :- It
offers systematic analysis and the
solutions to many complex problems. It
uses a mathematical approach for finding
solutions to the problems.

25. Systems approach to management
The systems theory looks at the organization as a
whole examining all relevant organizational
variables simultaneously.
A system is “An established arrangement of
components which leads to the accomplishment of
particulars objectives as per plan”.
This definition has three important parts
–Every system is goal
–In designing the system organize function of
management.
–Inputs of information, material and energy are allocated
for processing as per plan

26. Plans
1Objectives
2Policies
3Procedures
4 Programme
5Schedules
6 Methods
Inputs
1Information
2Energy
3Materials
(or) Goods
Process
1Conversion
of Inputs
into outputs
Men-
Machine
System
Outputs
1Information
2 Energy
3 Materials

27. •The father of the general systems theory
Ludwig Von Bertalanffy propagated the idea
via his publication “General systems theory” in
1969.
•According to him – “In order to understand an
organized whole we must know the parts as
well as the relations between them.

28. Classification of kinds of systems
There are two types of systems –
–A closed system
–An open system

29. Contingency approach to management
•This enables to evolve practical answers to
the problems. Organization design and
managerial actions most appropriate to
specific situations to achieve best possible
result under the given situation.
•Here the environment serves as an
independent variable and the management
variables i.e. process, quantitative,
behavioural and system tools are
dependent.

30. Three major parts of the overall conceptual
framework for contingency management
are:–
– Environment,
–Management concepts, principles and
techniques and
–Contingent relationship between the first
two.