2 -evolution of management theory

7/29/2019 2 -Evolution of Management Theory

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Module I

Chapter:2

Evolution of Management Theory


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1.What is Theory?

Theory is a coherent group of assumptions

put forth to explain the relationship

between two or more observable facts and

to provide sound basis for predicting future

events.

Theories are perspectives with which

people make sense of their world

experiences.


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2.Why study Management Theory?

First, theories provide a stable focus for

understanding what we experience.

Second, theories enable us to communicate

efficiently and thus move in to more and

more complex relationships with other

people.

Third, theories make it possible- indeed,

challenge us-to keep learning about our

world.


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3.The Evolution of Management Theory:

Management and Organizations are

products of their historical and social times

and places.

We can understand the evolution of

management theory in terms of how

people have wrestled with matters of

relationships at particular time in the

history.


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4. Focus of Study:

Following Management theories:

4.1: The Scientific Management Theory.4.2: The Classical Organization Theory.

4.3: The behavioral school Theory.

4.4: The management science Theory.


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Following recent integrative approaches:

1.1: The System Approach

1.2: The Contingency Approach1.3: The dynamic engagement Approach


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4.1: The Scientific Management Theory:

1.Why this theory has arisen?

There was need to increase productivity in USA when

labor was in short supply at the beginning of 20th

Century.

The only way to expand productivity was to raise the

efficiency of workers.

2. Frederick W. Taylor, Henery L Gantt and Frank andLillian Gilberth devised body of principles known as

scientific management theory.


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3.Principles of Scientific Management:

Frederic W.Taylor:[1856-1915]

1.The development of true science ofmanagement, so that the best method for

performing each task could be determined.

2. The scientific selection of workers.3. The scientific education and development

of worker.


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4. Intimate, friendly co-operation between

management and labor.

Taylor believed that management and labor

had a common interest in increasing

productivity.

Taylor based his management system on

production-line time studies.


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He also encouraged employers to pay more

productive workers at a higher rate than

others using a scientifically correct rate

that would benefit both company andworker. Taylor called his plan differential

rate system.

Henry L. Gantt:[1861-1919]

Gantt worked with Taylor on several

projects. But he had different view on


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Taylors incentive system. Gantt came up

with a new idea. Every worker who

finished a days assigned work load would

win around 50- cent bonus.

Then he added a second motivation. The

supervisor would earn a bonus for each

worker who reached the daily standard;plus an extra bonus if all the workers

reached it.


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This will motivate supervisors to train their

workers to do a better job.

Every workers progress was rated publicly

and recorded on individual bar charts- in

black on days the worker made the

standard, in red when he or she fell below

it.

Gantt originated a charting system for

production scheduling-The Gantt Chart.


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The Gantt chart is still in use to-day.

It also formed the basis for charting devices

which were developed to assist in

planning, managing and controlling

complex organizations. One such device

is Critical Path Method(CPM), originated

by Du Pont and another device is ProgramEvaluation and Review Technique[PERT]

developed by Navy.


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The Gilbreths:(1868-1924 and 1878-1972)

They made their contribution to the scientific

management movement by study of fatigue and

motion studies and focused on ways ofpromoting individual workers welfare.

Using motion picture cameras, they tried to find the

most economical motions for each task in order

to upgrade performance and reduce fatigue.

Every motion that was eliminated reduced the

fatigue.


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According to Gilberths, motion study would raise

worker morale because of its obvious physical

benefits and managements concern for the

worker.Contributions of Scientific Management Theory:

The contribution of Scientific Management is

immense in providing concept of improved

production techniques to modern assembly lines

pouring production at very fast rate. Its efficiency

techniques have been applied to many tasks in


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non-industrial organizations, ranging from

fast-food service to the training of

surgeons.

Limitations of Scientific Management

Theory:

1.The workers began to oppose Taylorsmethods of increase in productivity and

higher pay out of the fear that working

harder or faster would exhaust the work


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available, causing layoffs.

2. The emphasis on productivity- and by

extension, profitability led some managers

to exploit both workers and customers.

As a result, more workers joined unions

and the seeds of suspicion and mistrust

were sown.


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4.2:Classical Organization Theory School:

Scientific Management was concerned with

increasing the productivity of the Shop and

the individual worker.

Classical organization theory grew out of the

need to find guidelines for managing such

complex organizations as factories.


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Henri Fayol(1841-1925) is generally hailed

as the founder of the classical

management school. He made an attempt

to identify the principles and skills thatunderline effective management.

Fayol has laid down following principles of

management:

1.Division of Labor.


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2. Authority.

3. Discipline.

4. Unity of Command5. Unity of Direction.

6. Subordination of individual interest to the

common good.7. Remuneration.

9. Centralization.


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10.The Hierarchy

11. Order

12. Equity13. Stability of Staff

14. Initiative

15. Esprit de corps- Promoting team spiritwill give organization a sense of unity.


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Taylor was concerned with Organizational

functions whereas Fayol was interested in

the total Organization.

Before Fayol, it was generally believed that

managers are born, not made.

Fayol insisted that management was a skill

like any other- one that could be thought

once its underlying principles were

understood.


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Max weber (1864-1920) developed a theory

of bureaucratic management that stressed

for the need for a strictly defined hierarchy

governed by clearly defined regulationsand lines of authority.

Marry Parker Follet(1868-1933) :She

introduced many new elements, especiallyin the area of human relationship and

Organizational structure.


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According to Follet no one could become a

whole person except as a member of the

group, human beings grew through their

relationships with others in theOrganization.

In fact, She called management the art of

getting things done through others


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Chester I Barnad(1886-1961):

He believed that individual and

organizational purposes could be kept in

balance if the managers understood an

employees zone of indifference- that is,

what the employees would do without

questioning the managers authority.


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Obviously more activities fall within an

employees zone of indifference-that is ,

what the employees do without

questioning the managers authority, thesmoother the organization would be.

Companies are increasingly using teams.

Because teams are generally self-managing, Supervisory roles are limited.


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4.3: The Behavioral School:

The behavioral school emerged partly because theclassical approach did not achieve sufficient productionefficiency and work place harmony.

The behavioral school deal more effectively with peopleside of the Organization.

A group of management scholars trained in sociology andpsychology and related fields help management withknowledge to propose more effective ways to managepeople in the Organization.


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The human relations movement and focus

on better human relations was highlighted

by this School of thought.

The Hawthorne experiments by the scholar

Mayo were conducted at the work place to

focus need for better working conditions to

improve productivity and performance.


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Behavioral scientists brought newdimensions to the study of Organizationand Management.

According to Maslow, the needs that peopleare motivated to satisfy fall in to ahierarchy.

-Physical and Safety needs--Ego needs

-Self-actualizing needs


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Mc Gregor provided another angle on thisproblem.

He distinguished two basic assumptions aboutpeople and their approach to work.

These two assumptions are called Theory X andTheory Y

Theory X assumes that people are lazy and theycan be motivated by force, money or praise.

Theory Y assumes that people are inherentlymotivated to work and do a good job.


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4.4: The Management Science School:

Approaching the management problems

through the use of mathematical

techniques for their modeling, analysis and

solution.

The Operations research group was formed

for this purpose.


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Recent approaches:

1.1: The System Approach:

View the organization as a united, directed

system of interrelated parts.1.2: The Contingency Approach:

The view that management technique that

best contributes to the attainment ofOrganizational goals might vary in differentsituations or circumstances.


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1.3: Dynamic engagement: The view that

time and human relationships are forcing

management to rethink traditional

approaches in the face of constant, rapidchange.


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2 -evolution of management theory

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