Major Management Perspectives

over time
Classical Management Perspective
Focuses on efficiency and includes:
scientific,
administrative, and
bureaucratic management.
Scientific Management
focuses on the Best way to do a job.
Concerned with improving the
performance of individual workers
(i.e., efficiency).
Scientific Management
Frederick Taylor(1856-1915)
Called as Father of Scientific Management
Mechanical engineer by profession
Believed in selecting, training, teaching and
developing workers.
Used time study, standards planning,
rules, instruction cards, incentives, etc.
Other Scientific Management
Pioneers
Frank Gilbreth(1868-1924) and Lillian
Gilbreth (1878-1972)
Reduced number of movements in bricklaying, resulting
in increased output of 200%
Henry Gantt(1861-1919)
Developed other techniques, including the Gantt chart,
to improve working efficiency through
planning/scheduling
Administrative Management
A theory that focuses on managing the
organization.
Emphasizes the flow of information in the
operation of the organization.
Contd.
Henri Fayol (1841-1925).
Wrote General and Industrial Management
Helped to systematize the practice of management
First to describe management as planning,
organizing, leading, and controlling
Fayols 14 Principles for Effective
Management Practices
Division of labor
Authority
Discipline
Unity of command
Unity of direction
Subordination of
individuals to the
common good
Remuneration
Centralization
Scalar chain
Order
Equity
Stability
Initiative
Esprit de corps
Theory of Bureaucracy
Relies on a rational set of structuring guidelines
such as rules and procedures, hierarchy, and a
clear division of labour.
Division of labor
Reliance on rules and regulations
Hierarchy of authority
Unfriendly
Inflexible
Strict
Contributions
& Limitations
Contributions
Laid the foundation for later developments
Identified important management processes, functions, & skills
Focused attention on management as a valid subject
Limitations
Suitable mainly for traditional, stable, simple organizations
Employees are viewed as tools rather than resources
Behavioral Management
Perspective
Emphasizes individual attitudes and
behaviors
Recognizes the importance of Group
behavior in the workplace.
Behavioral Management
Perspective
The Hawthorne Studies
Conducted by Elton Mayo (psychologist ) and associates
at Western Electric Co. (19271935)
The aim of these studies was to determine the effect
of working conditions on productivity.
The conclusion was that there was no cause-and-
effect relationship between working conditions and
productivity.
Workers respond to the social context of the work
place.
Behavioral Scientists
Major contributors and their theories:
Maslow- Hierarchy of needs
Alderfer- ERG
Mc.Gregor- Theory X Theory Y
Mary Parker Follett empowerment ,
participative management, open systems
Their view: employees want meaningful work; they
want to contribute; they want to participate in
decision making and leadership functions.
Physiological
Safety
Esteem
Self-
Actualization
Maslows Hierarchy of Needs
Social
Developing using abilities
-
Status, Recognition
through promotions
-
Relationship with other
workers
-
Job security, Better
working condition
-
Food, Clothing
Theory X
People do not like work and
try to avoid it.
People do not like work, so
managers have to control,
direct, coerce, and threaten
employees to get them to
meet organizational goals.
People prefer to be directed,
to avoid responsibility, and
to want security; they have
little ambition.
Work is a natural part of peoples
lives.
People are internally motivated
by commitment.
People are committed to goals to
the degree they receive rewards.
People will seek and accept
responsibility.
People have the capacity to be
innovative.
People are bright, but mostly
under-utilized.
Theory Y
Mc Gregors Theory (XY theory)
Contributions
& Limitations
Contributions
Provided important insights into motivation, group dynamics, and other
interpersonal processes.
Focused managerial attention on these critical processes.
Challenged the view that employees are tools and
promote the belief that employees are valuable resources.
Limitations
Complexity of individuals makes behavior difficult to predict.
Managers are reluctant to adopt many concepts.
Quantitative Management
Perspective
Uses quantitative methods and models to
manage decisions
1. Management Science
Focuses on the development of mathematical
models to assist with decisions
2. Operations Management
Practical application of management science to
efficiently manage the production and
distribution of products and services
Techniques used in this approach
Programme Evaluation and Review
Technique (PERT)
Critical Path Method (CPM),
Return on Investment (ROI),
Net Present Value (NPV)
Management science
Techniques used in the Quantitative Approach are:
Linear Programming:
Queuing Theory:
Inventory Modeling:
Simulation:
Preventive Control and Replacement Problem:
Competitive Problem and Game Theory:
Operations Management
Contributions
& Limitations
Contributions
Developed quantitative techniques to assist in decision making.
Application of models has increased awareness and understanding of
complex processes and situations.
Has been useful in the planning and controlling processes.
Limitations
Cannot fully explain or predict behavior.
Mathematical sophistication may come at the expense of other skills.
Models may require unrealistic or unfounded assumptions.
Integrating Perspectives For
Managers
The Systems Perspective
The Contingency Perspective
Systems approach
System: an interrelated set of elements
functioning as a whole .
Consider organization as an open system
interacts with its environment.
Uses systems concepts and quantitative
approaches from mathematics, statistics,
engineering, and other related fields to solve
problems.
Managers find optimal solutions to management
problems by using scientific analysis which is
closely associated with the systems approach to
management.
Contingency/Situational Perspective
Emphasizes the fit between organization processes and
the characteristics of the situation.
Appropriate managerial behaviour in a given situation
depends on a wide variety of elements & provides a
framework for integrating the knowledge of management
thought
Suggests that the effectiveness of various management
practices, styles and techniques will vary according to
the particular situation