Professional Documents
Culture Documents
Evolution of Management
Evolution of the Management Thought
20th century
- World war I
- Limited resources available
- Need for solution to use them in an optimum way
- World War II added to the problem
Thus, the issue of managing complex and huge business and growing
competition forced us to develop systematic management concepts
and principles
Principles of Management
Features of bureaucracy
Administrative Class:
This class exists in a bureaucratic organisation
The employees are full time and look after coordination among activities
Hierarchy:
It is a system of ranking
Strict rules of authority-responsibility
Serves lines of communication and delegation of authority
Division of work:
Organisation divided in various departments
Each department will have a specific function
Clear definition of work
Principles of Management
Official Rules:
Administrative process covered by rules
Antithesis to ad hoc
Provides stability and uniformity
Impersonal Relationships
Official relationships free from personal involvement, emotions and
sentiments
Decisions are based on rational thinking
Official Record:
Maintenance of official records
Beneficial for future reference
Filing system used extensively
Principles of Management
6. Financial incentives
Cooperation
Maximum output
Development of workers
Principles of Management
Technical
Commercial
Financial
Security
Accounting
Managerial
1. Division of work
3. Discipline
4. Unity in command
A person should get orders from only one superior. This increases
clarity, reduces conflict and builds a personal responsibility for results
5. Unity of direction
Each group of activities with same objective, must have only one plan
and one head.
Unity in command defines the reporting relationship, while unity in
direction defines the grouping of activities.
It ensures better coordination among activities.
Principles of Management
7. Centralisation
8. Remuneration
9. Scalar chain
10. Order
11. Equity
13. Initiative
Union is strength
Managers must encourage the team spirit among the employees
Erring employees must be given oral directions and not asked for a written
explanation
Principles of Management
The elements in these approaches were not giving evoking positive results.
Experiment II: A girls group was chosen who worked in the telephone
relay assembly department. 5 types of changes introduced over a period
of time and productivity measured after every change.
Experiment IV: 14 male workers were employed and hypothesis was that
they would produce more in order to earn more. It was proved wrong
due to 4 reasons given by workers for a lesser output.
Principles of Management
Modern Theories-
Contributions of behavioral scientists
Assumptions:
Contributors include:
Quantitative Approach
Systems Approach
Illustration
Environment
Inputs Outputs
Transformation Process
Feedback
Principles of Management
Contingency Approach
Contingency variables:
Size of the firm
Environment
Resources
Technology
Group dynamics
Individual differences