EVOLUTION OF MANAGEMENT THOUGHT

MODERN MANAGEMENT THEORY

Operation research specialists of USA,UK Organizational system theories,codering, Kenneth etc. Tom Burns, Stalker, Woodward, Paul Lawrence a. b. a. b. c. Quantitative Approach Systems Approach Contingency Approach

BEHAVIORAL APPROACH
Hawthorne Experiments & Human Relation Approach Behavioral Science Approach Elton Mayo Douglas McGregor, Maslow, Lewin, Barnard, Likert, Simon

CLASSICAL APPROACH
a. b. c. Scientific Management Administrative Theory of Management Bureaucratic Organization F.W.Taylor, Grantt, Gilberth Emerson Henri Fayol, Sheldon Mooney, Parker Foolet Max Weber

DEVELOPMENT OF MANAGEMENT THOUGHTS

BEHAVIORAL APPROACH
HUMAN RELATION MOVEMENT BEHAVIORAL SCIENCE APPROACH

Hawthorne Studies
A SERIES OF STUDIES DONE DURING THE 1920S AND 1930S THAT PROVIDED NEW INSIGHTS INTO GROUP NORMS AND BEHAVIORS

HAWTHORNE EFFECT
SOCIAL NORMS OR STANDARDS OF THE GROUP ARE THE KEY DETERMINANTS OF INDIVIDUAL WORK BEHAVIOR. CHANGED THE PREVALENT VIEW OF THE TIME THAT PEOPLE WERE NO DIFFERENT THAN MACHINES.

HAWTHORNE STUDIES
ILLUMINATION EXPERIMENT RELAY ASSEMBLY TEST ROOM EXPERIMENT MASS INTERVIEW PROGRAMME BANK WIRING OBSERVATION ROOM STUDY

ILLUMINATION EXPERIMENT
EXPERIMENT TO FIND OPTIMAL LEVEL OF LIGHTING
WORK GROUPS OF 6, IN SEPARATE ROOMS

EXPERIMENTAL GROUP & CONTROL GROUP

NO CHANGE IN LIGHTING FOR CONTROL GROUP

FINDINGS:
INCREASING BRIGHTNESS RAISES PRODUCTIVITY REDUCING BRIGHTNESS RAISES PRODUCTIVITY MEMBERS OF THE CONTROL GROUP ALSO INCREASED PRODUCTIVITY

RELAY ASSEMBLY TEST ROOM EXPERIMENT

DESIGNED TO DETERMINE THE EFFECT OF CHANGES IN VARIOUS JOB CONDITIONS ON GROUP PRODUCTIVITY

BANK WIRING OBSERVATION ROOM STUDY

FEAR OF UNEMPLOYMENT FEAR OF RAISING STANDARDS PROTECTION OF SLOWER WORKERS

FINDINGS OF HAWTHORNE EXPERIMENTS

SOCIAL FACTORS IN OUTPUT INFORMAL GROUP COMMUNICATION & CONSULTATION LEADERSHIP EMPLOYEE BEHAVIOR AND CONFLICT

HAWTHORNE EXPERIMENTS
LESSONS
For managers, the importance of Teams, not just individuals Workers arent machines, they make choices, and their choices are affected by how others treat them
These findings contributed to the development of the human relations approach to management

CONCLUSIONS OF HAWTHORNE STUDIES

ENVIRONMENTAL FACTORS NOT THE SOLE FACTORS AFFECTING PRODUCTIVITY WORKER IS NOT AN ECONOMIC MAN (NOT PURELY MOTIVATED BY MONEY ALONE) IMPORTANCE OF RECOGNITION, SECURITY AND MORALE IMPORTANCE OF INFORMAL GROUP IMPORTANCE OF TOTAL WORK SITUATION COMPLAINTS AS SYMPTOMS

Mayo with his studies made a great impact on the development of management thought

Human Resources Approach

MARY PARKER FOLLETT
BELIEVED THAT ORGANISATIONS SHOULD BE BASED ON GROUP RATHER THAN INDIVIDUALISM MANAGERS JOB TO HARMONISE AND COORDINATE GROUP EFFORTS NOTION OF POWER WITH RATHER THAN POWER OVER EMPLOYEES COMBINING DIVERSE TALENT INTO SOMETHING BIGGER MANAGERS AND WORKERS SHOULD VIEW THEMSELVES AS PARTNERS- AS A PART OF COMMON GROUP.

Human Resources Approach

CHESTER BARNARD
SAW ORGANIZATIONS AS SOCIAL SYSTEMS THAT REQUIRE HUMAN COOPERATION BELIEVED THAT ORGANISATIONS ARE MADE UP OF PEOPLE WITH INTERACTING SOCIAL RELATIONSHIPS EXPRESSED HIS VIEWS IN HIS BOOK THE FUNCTIONS OF THE EXECUTIVE (1938) MANAGERS MAJOR FUNCTION IS TO COMMUNICATE AND STIMULATE SUBORDINATES TO HIGHER LEVELS OF EFFORTS ORGANISATIONS SUCCESS DEPENDED ON PEOPLE AND INSTITUTIONS WITH WHOM ORGANISATION INTERACTS REGULARLY. INTRODUCED THE IDEA TO EXAMINE THE EXTERNAL ENVIRONMENTAND ADJUST THE ORGANISATION TO MAINTAIN A STATE OF EQUILIBRIUM.

The Human Relations Movement Pyramid

CRITICAL EVALUATION OF HUMAN RELATION MOVEMENT

UNSCIENTIFIC DOUBTFUL VALIDITY OVERCONCERN WITH HAPPINESS ANTI INDIVIDUALISTIC NEGATIVE VIEW OF CONFLICT

BEHAVIOURAL APPRAOCH
SYSTEMATIC AND SCIENTIFIC ANALYSIS OF HUMAN BEHAVIOUR WITH A VIEW TO DETERMINE CAUSES OF WORKING BEHAVIOUR OF INDIVIDUALS

BEHAVIOURAL SCIENCE
PSYCHOLOGY (INDIVIDUAL HUMAN BEHAVIOUR) SOCIOLOGY (HUMAN BEHAVIOUR IN GROUPS) ANTHROPOLOGY (PHYSICAL,CULTURAL.
BIOLOGICAL INFLUENCES)

BEHAVIOURAL APPRAOCH
ORGANISATION A SOCIAL-TECHNICAL SYSTEM INDIVIDUAL DIFFERENCES IN TERMS OF PERSONALITY , ATTITUDE, BELIEFS, VALUES AND PERCEPTIONS INTEGRATION OF INDIVIDUAL GOALS WITH ORGANISATION GOALS CONFLICT AND COOPERATION CO-EXIST

HUMAN RELATION APPROACH

1. 2.

BEHAVIOURAL APPROACH
Aims at studying and analysing human behaiour systematically Assumes that organisation is a social technical system Recognises individual differences in terms of background, personality, values goals , aspirations paving way for devising different motivational process for them Believes that wide range of variables that affect working behaviour of employees

3.

Confined to humanisation and 1. socialisation of organisation by recognizing human side 2. Believes that organisation is a social psychological system 3. Mainly concerned with human aspect and considers all individuals as human beings HR illustrates that satisfaction provided to employees by giving 4. economic incentives and improving the working conditions will lead to higher productivity Based on the assumption that conflicts should be totally removed as they 5. appear Limited in scope,deals only with a set of economic, social and psychological 6. needs and physical working conditions which contribute to higher efficiency

4.

5.

6.

Realises that conflicts are bound to crop and to some extend produce constructive effect broad in scope,concerned with technical aspect of job design , group dynamics , leadership, communication, motivation

THE QUANTITATIVE APPROACH

OPERATIONS RESEARCH (MANAGEMENT SCIENCE)
EVOLVED OUT OF THE DEVELOPMENT OF MATHEMATICAL AND STATISTICAL SOLUTIONS TO MILITARY PROBLEMS DURING WORLD WAR II. INVOLVES THE USE OF STATISTICS, OPTIMIZATION MODELS, INFORMATION MODELS, AND COMPUTER SIMULATIONS TO IMPROVE MANAGEMENT DECISION MAKING FOR PLANNING AND CONTROL.

PLANS
Objectives Policies Procedures Programmes Schedules Methods

INPUTS
Information Energy Materials

PROCESS
Conversion of inputs into outputs through men machine systems

OUTPUTS
Goods and services

Goals & Plans

Resource

Production

Saleable Products

SYSTEMS MANAGEMENT

THE SYSTEMS APPROACH

ORGANISATION AS A UNIFIED AND PURPOSEFUL SYSTEM PARTS AND COMPONENTS ARE CALLED SUBSYSTEMS SYNERGY EACH SYSTEM HAD A BOUNDARY OPEN AND CLOSED SYSTEMS BUSINESS ENTERPRISE AS OPEN AND DYNAMIC SYSTEM ORGANISATIONAL SURVIVAL DEPENDS ON SUCCESSFUL INTERACTIONS WITH EXTERNAL ENVIRONMENT

THE SYSTEMS APPROACH

CLOSED SYSTEM : A SYSTEM THAT IS NOT INFLUENCED BY AND DOES NOT INTERACT WITH ITS ENVIRONMENT OPEN SYSTEM: A SYSTEM THAT DYNAMICALLY INTERACTS WITH ITS ENVIRONMENT

CONTINGENCY APPROACH
MANAGEMENT ACTIONS ARE CONTINGENT ON CERTAIN ACTIONS OUTSIDE THE SYSTEM OR SUBSYSTEM BECAUSE OF THE SPECIFIC ORGANISATIONENVIRONMENT RELATIONSHIP,NO ACTION CAN BE UNIVERSAL

MODERN MANAGEMENT THOUGHT

THE SYSTEMS APPROACH DYNAMIC MULTI-DIMENSIONAL MULTI-MOTIVATED MULTI-DISCIPLINARY MULTI-VARIABLE ADAPTIVE

CONTINGENCY APPROACH

MANAGEMENT VARIABLES

ENVIRONMENTAL VARIABLES

CONTINGENCY VARIABLES
ORGANISATIONAL SIZE TASK TECHNOLOGY ENVIRONMENTAL UNCERTAINTY INDIVIDUAL DIFFERENCES

SYSTEMS APPROACH
1. Treats all organization alike irrespective of their size, cultural setting and analysis of organizations dynamics An organisation is a goal oriented system consisting of interdependent & interacting subsystems

CONTINGENCY APPROACH
1. Treats each organization as unique entity. Oranisations & environment are complex.Applicability & effectiveness of any technique depends on the nature and behaviour of specific situation It rejects blind application of principles without regards to situational realities Relates organization structure and design to the environment Pragmatic oriented and action

2.

2.

3.

Appears to be neutral and non committal on the universality of classical principles of management

3.

4. Stresses upon the synergetic effect of organization and the external inputs 5. Vague and complex

4.

5.