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Evolution of management thoughts

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  • 1. EVOLUTION OF MANAGEMENT THOUGHTSBySreerupa Rath

2. DIFFERENT SCHOOL OFTHOUGHTS CLASSICAL APPROACHNEO- CLASSICAL THEORIES BEHAVIORAL APPROACH QUANTITATIVE APPROACH MODERN THEORY 3. CLASSICAL APPROACHClassical management thought is divided into three separate school of thoughts Scientific Management Administrative Theory Bureaucratic Management 4. SCIENTIFIC MANAGEMENT One best way to do each job Earliest advocates of scientific managementFrederick W.TaylorFrank GilbrethLillian GilbrethHenry Gantt 5. Frederick Winslow Taylor Father of scientific managementSTEPS IN SCIENTIFIC MANAGEMENT: Replaced old rule of thumb methods to eliminatesoldiering Selecting,training,teaching and developingworkers Supervise employees to make sure they followthe prescribed methods for performing their jobs Continue to plan the work but use workers toactually get the work done 6. Major managerial practices that emerged from Taylors approach Piece-rate incentive system Time and motion study 7. FRANK and LILLIAN GILBRETH Frank Gilbreth is considered as the father of motion study Lillian Gilbreth was associated with the research pertaining to motion study Motion study involves finding out the best sequence and minimum number of motions needed to complete a task 8. HENRY LAURENCE GANTT Was a close associate of Taylor Developed the Gantt chart 9. LIMITATIONS OF SCIENTIFICMANAGEMENT It revolves round problems at the operational level The proponents were of the opinion that people were motivated primarily by the desire for material gain Scientific management theorists ignored the human desire for job satisfaction 10. ADMINISTRATIVE THEORY Focused on principles that could be used by managers to coordinate the internal activities of organizations Most prominent administrative theorist was Henri Fayol 11. HENRI FAYOL Prominent European management theorist Wrote General and Industrial Management Business operations of an organization could bedivided into six activitiesTechnicalCommercialFinancialSecurityAccountingManagerial 12. FOURTEEN PRINCIPLES OFMANAGEMENT Division of work Authority and Responsibility Discipline Unity of Command Unity of Direction Subordination of the individual interest to the generalinterest Remuneration Centralization Scalar Chain Order Equity 13. Stability of tenure of personnel Initiative Espirit de corps 14. BUREAUCRATICMANAGEMENT Max Weber Father of BureaucraticManagement theory Theory of bureaucracy is based on a rational setof guidelines for structuring organizations Major characteristics of Webers idealbureaucracy Work specialization and division of labourAbstract rules and regulations Impersonality of managers Hierarchy of organization structure Selection of employees was made on thebasis of technical expertise 15. LIMITATIONS OF BUREAUCRATICMANAGEMENT AND ADMINISTRATIVETHEORY Classical theorists ignored important aspects of organizationalbehaviour.Theystressed productivity above other aspects of management Webers concept of bureaucracy destroys individual creativity and the flexibility to respond to complex changes in the global environment 16. NEO- CLASSICAL THEORIES 17. BEHAVIORAL APPROACH It emphasized on the human element Behavioral thinkersMary Parker FolletElton MayoAbraham MaslowDouglas McGregorChris Argyris 18. MARY PARKER FOLLET: Focusingon Group Influences Importance of human element in organizations Employees were influenced by the group in which they worked Organizations function on the principle of power with rather than power over Advocated the concept of integration 19. ABRAHAM MASLOW:FOCUSINGON HUMAN NEEDS His theory rested on three asumptions1. All of us have needs which are never completely fulfilled2. Through our actions we try to fulfill our unsatisfied needs3. Human needs occur in the following hierarchical manner Physiological needs Safety or security needs Social needs Esteem or status needs Self-actualization or self-fulfillment needs 20. LIMITATIONS TO MASLOWSTHEORY Human needs do not always emerge in a hierarchical manner Does not explain how a person prioritizes the needs at a particular level of hierarchy. 21. DOUGLAS McGregor: CHALLENGINGTRADITIONAL ASSUMPTIONS ABOUTEMPLOYEES Developed two assumptions about human behaviorTheory X and Theory YTHEORY X Most people dislike work and they avoid it whenthey can Most people must be coerced and threatenedwith punishment before they work Most people prefer to be directed. They avoidresponsibility and have little ambition 22. THEORY Y Work is a natural activity like play or rest People are capable of self direction and self control ifthey are committed to objectives People become committed to organizationalobjectives if they are rewarded in doing so Under proper conditions people learn to acceptresponsibility and also try to seek responsibility Most people are capable of being innovative insolving organizational problem 23. CHRIS ARGYRIS:MATCHING HUMANAND ORGANIZATIONALDEVELOPMENT Major contributions of this behavioral scientistare the maturity-immaturity theory, the integrationof individual and organizational goals, Model Iand Model II organization analysisModel I Employees are manipulative Not willing to take riskModel II Employees are open to learning and lessmanipulative Willing to take risk 24. ELTON MAYO:FOCUSING ON HUMANRELATIONS Father of Human Relations Approach Led the team which conducted a study atWestern Electrics Hawthorne Plant To examine the impact of illumination levels onworker productivity The experiments were conducted in four phase:Illumination experimentsRelay assembly test room experimentsInterview phaseBank wiring observation room experiments 25. ILLUMINATION EXPERIMENTS Took place between 1924 and 1927 Two group of workers (experimental or test group)and the control group Experiment involved manipulating the illuminationRelay Assembly Test Room Experiments Took place between 1927 and 1933 It included the introduction of a series of HRpolicy measures for the test group to study theirimpact on overall productivity 26. INTERVIEW PHASE 21000 people were interviewed between 1928-1930 To determine employee attitude towards thecompany and their jobs. 27. Bank Wiring Observation Room Experiments Conducted during 1931- 1932 It was undertaken by researchers to test some of the ideas they had gathered during the interviews 28. Criticism of Hawthorne studies The procedures, findings and conclusionsreached were questionable Researchers considered themselves as socialengineers The relationship made between the satisfaction orhappiness of workers and their productivity wastoo simplistic 29. Limitations of Human Relations Approach The human relations theorists are of the opinionthat by removing fear, people would performeffectively It does not provide enough focus on theory It does not understand the economic implicationsof organizational problems. Human relationstheory also tends to be very vague