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02.

EVOLUTION OF MANAGEMENT THOUGHT

MANAGEMENT APPROACHES

WESTERN MGT:

EASTERN MGT:

*Classical Approaches SCIENTIFICE ADMINISTRATIVE BUREACRATIC MGT *Behavioral Approach *MGT: Science Approach *System Approach *Contingency Approach *Contemporary Western MGT: Theories

*Japanese Approach *Sri Lankan approach

. Assumptions: * Economic rational Man * Only one best method of working * Workers have potential to work in any method given Contributions: * Work study * Incentive wages schemes * Charting techniques Drawbacks (Disadvantages):    Economic Rational man – Man is not always taking rational decisions Job become boring & dull Cause of highly specialized labors error of one will corrupt whole production process  Administrative Management – Henry Fayol Focus on improve whole organization’s efficiency instead of individual. Frank & Lillian Gilberth Improvement of operational efficiencies through the systematic & scientific study of work method tools & performance standards. Scientific Approach : FW Taylor .

Financial Technical ORGANISATION ACTIVITIES Commercial Managerial Accounting Security Plan ELEMENTS Organize OF Command MANAGEMENT Co-ordinate Control .

5. 13. They are: 1. Division of labor Authority Discipline Unity of command Unity of direction Subordination of individual interest to common goal Remuneration Centralization The hierarchy Order Equity Stability of staff Initiative Spirit of the corps  Bureaucracy : Max Webber Strictly defined hierarchy governed & clearly defined objectives. ( This has been established after the 2nd world war ) . 7. 14. 2. Hawthorne effect is if any special attention is paid to a person or a group of persons. 8. 6. 4.  The Behavioral Approach : Elton Mayo Hawthorne experiment was to test the relationship between the level of lightning in the workplace & worker productivity. 10. 12. 3. 11.Fayol listed 14 principles of Management. simply because of the specific attention there will be a motivation to work & productivity will improve  The Management Science School In here provide various mathematical models & programs to solve business problems. 9.

tools.  Contemporary Western Management – Peter & Waterman Promoting autonomy & entrepreneurship Maximize productivity through people Staying close to customer PETER & WATERMAN APPROACH Using hands on approach to managing Do what company know best Getting things done on time Maintain a simple lean Promote both centralize & decentralize Simulations organization culture .  Contingency Approach This argues there is no best way of management rater different techniques. structure & styles of management will be suit to different situations. Consider organization as a whole large portion in external environment. System Approach to Management In here organizations consider as unified purposeful system composed of interrelated parts.

 Japanese Management Approach – Theory Z by William Ouchi TYPE A : Traditional US Company Shorter term employments Individual decision making Individual Responsibility Rapid Evaluation & Promotions Explicit control mechanism TYPE D : Traditional Japanese Company Life time employment TYPE Z Long term employment Collective decision making Collective responsibility Slow evaluation & promotion Implicit control mechanism Collective decision making Individual responsibility Slow evaluation & promotion Implicit informal control with explicit formalized measures Consider employee as employee Consider as a person Consider as a family member .