1 history & evolution of management thought
TRANSCRIPT
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Chapter-1
History and Evolution of Management Thought
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Introduction
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Early Approaches to management
Robert Owen: Human Resource Management Pioneer
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Charles Babbage: Inventor and Management Scientist
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Andrew Ure and Charles Dupin: Management Education Pioneers
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Henry Robinson Towne (1844 – 1924)
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Classical Approach Classical Management can be divided
into three separate schools:Scientific ManagementAdministrative ApproachBureaucratic approach
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Scientific Management Some of the earliest advocates of
scientific management were:Fredrick Winslow TaylorFrank and Lillian Gilbreth Henry Gantt
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Frederick Winslow Taylor Known as “father of
scientific management
Soldiering Problem: An Insight
Workers indulge in
soldiering for three main reasons:
1. Fear of loss of job incase of increased productivity
2. Faulty wage systems 3. Outdated methods of
working
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Cont.. Major Managerial practices that
emerged from Taylor’s Approach:Piece-rate systemTime-and-motion study
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Frank and Lillian Gilbreth Frank Gilbreth –
“Father of motion study”
Lillian Gilbreth associated with research pertaining to motion study
Motion study: The way of finding
best sequence and minimum no. of motions.
- Classification Scheme
- Micro Motion Study
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Henry Gantt (1861-1919)
Task-and-bonus system
Gantt Chart
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Limitations
These principles focus on solutions of problems from engineering point of view
Motivated primarily by desire for material gains
Ignore human desire for job satisfaction
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Administrative Theory
Focus: coordination of internal activities of organizations
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Henry Fayol (1841-1925)
Developed general theory of
management.
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Business Operations of an Organisation
Acc. To Fayol, business operations of an organization could be divided into 6 activities:
Technical – Producing and manufacturing products Commercial - Buying, selling , exchange Financial – Search for optimal use of capital Security Activities - Protecting employees and
property Accounting Activities - Recording and taking stock
of cost, profits and liabilities Managerial Activities - Planning, Organizing,
Commanding, Coordinating, Controlling
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Managerial Activities
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Principles of management Division of work Authority Discipline Unity of command Unity of direction Subordination of individual interest Remuneration
Centralization Scalar chain Order Equity Stability of tenure Initiative Esprit de corps
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Bureaucratic Management Emphasized the need for
organizations to function on a rational basis
Observed practice of nepotism and condemned it.
Identified characteristics of Bureaucracy.
Bureaucracy derived from German word buro, meaning office.
A highly structured, formulized and impersonal organization.
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Characteristics of Weber’s Bureaucracy
Work specializationAbstract rules and regulationsImpersonality of ManagersHierarchy of organization structure
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Advantages of Bureaucratic Management
Help remove ambiguities and inefficiencies that characterize many organizations.
Undermine the culture of patronage that he saw in conflict with the principle of unity if control
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Limitations of Bureaucratic Management and Administrative
theory Principles inapplicable to today's complex
organizations. Fayol’s principle of specialization in conflict with
principle of unity of control. Principle characteristics of bureaucracy destroy
creativity and flexibility to respond to complex changes in global environment.
Classical Theorists ignored important aspects of organizational behavior.
Failed to consider impact of external and internal environment upon employee behavior in organizations.
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Behavioral Approach
Emphasis on Human Element
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Mary Parker Follet: Focus on Group Influences
Human Element Groups Power Sharing Integrity
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Elton Mayo: Focus on Human Relations
Hawthorne Experiment: four phases
Illumination Experiments
Relay Assembly Test Room Experiment
Interview Phase Bank wiring
observation room experiment
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Contributions of the Experiment
PrejudgmentsJob performance depends on the
individual workerFatigue is the main factor affecting
outputManagement sets production
standards
Findings The group is the key factor in job performance Perceived meaning and importance of the
work determine output Workplace culture sets its own production
standard
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CriticismsAnalysis supported by little evidenceRelationship between satisfaction
and productivity- too simplisticFailed to focus attention on the
attitudes of employees
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What is Human Relations Approach?
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LimitationsThe approach says very little about
positive motivationIt does not provide enough focus on
workIt tends to be very vague
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Abraham Maslow Three assumptions: Needs are never
completely fulfilled Through over actions
we satisfy our unsatisfied needs
Hierarchical of needs 1. Physiological Needs 2. Safety or security
needs 3. Social Needs 4. Self Fulfillment
Needs
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Maslow’s Hierarchy of Needs
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Douglas McGregor
Challenging Traditional
Assumptions about Employees
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Theory X and Theory Y
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Chris Argyris: Matching Human and Organizational Development
Three major
contributions: Maturity-
Immaturity Theory Integration and
Organizational Goals
Model I and Model II
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Quantitative Approach
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Quantitative ApproachEmerged during World War IIIncludes:Application of statisticsOptimization modelsInformation ModelsComputer Simulations
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Branches of quantitative approach:
Management ScienceOperations ManagementManagement Information System
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Management Science Need for management science???
Areas of usage: Capital Budgeting and cash flow management Production Scheduling Development of product strategies Planning for human resource development
programs Maintenance of optimal inventory levels Aircraft Scheduling
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Operations ManagementOperations Management: Applied form of management
science.Concerned with:Inventory ManagementWork SchedulingProduction PlanningFacilities, location and designQuality assurance
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Management Information System
Focus: Designing and implementing computer
based information system
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Modern Approaches To Management
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Modern Approaches To Management System Theory This system approach gives manager a
new way of looking at an organization as a whole and as a part of the larger, external environment
Two types of systems: Open System- which interacts with its
environment Closed System – which does not interact
with its environment
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Contingency theoryAlso known as situational theory.According to this theory, there is no
one best way manage all situationsDeveloped by managers, consultants
and researchers who tried to apply the concepts of the major schools of management thought to real life situation.
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Emerging Approaches in Management Thought
William Ouchi,
conducted research on both American and Japanese management approaches and outlined a new theory called theory Z.
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Theory Z Involves providing job security to
employees. Ensures job rotation of employees to
develop their cross-rotational skills. Advocates participation of employees in
the decision making process Emphasizes on use of informal control in
organization. Shows concern for employee’s wellbeing Lays emphasis on their training and
development
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Thank You