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MANAGEMENT THOUGHT PERIOD
Early contributions ► Scientific management ► Administrative management ► Human relation approach ► Social system approach ► Decision theory approach ► Mgmt science approach ► Human Behavior approach ► System approach ► Contingency approach
► ► ► ► ►
Upto 19th century 1900-1930 1916-1940
1930-1950 ► 1940-1950 ► 1945-1965 ► 1950-1960 ► 1950-1970 ► 1960s onwards ► 1970s onwards
CLASSIFICATION OF MGMT THOUGHTS
Human relation approach Social system approach Decision theory approach Mgmt science approach Human Behavior approach
System approach Contingency approach
Scientific management Admn/Operational management Bureaucracy
of org&admn exsisted in egypt in Egypt in 1300 B.C. ► Kautilya has offered principles of state admn in 320B.C. ► Roman Catholic church introduced the concept of staff personnel. ► Early contributors in the field of Business orgn are:Robert Owen,Charles Babbage,Henry Varnun Poor,Henry Robinson Towne,James Watt and Mathew Robinson Boulton,Cpt Henry Metcalfe.
Pre Scientific Management Era ► Refers to the period immediately preceding the Scientific management Movement. ► Contributions of the pioneers are given below:- .
.training of workers. His ides are prelude to the development of the behavioural approach to the management.canteen provision etc. Emphasised on building up of a spirit of cooperation between workers and the management.Robert Owen(1771-1858) ► ► ► ► ► ► Managed a group of textile mills in Scotland during 18001828. He believed that workers should work because they want to work and not because they have to work. He is known as the father of Personnel Management.education of children. Introduced new ideas of human relatioons.housing facilities.rest pauses.
Division of the work on the basis of their skills. His best book known is “On the Economy of Machinery and manufacturers published in 1832.Charles babbage(1792-1871) ► ► ► ► ► ► ► Babbage was a professor of mathematics at Cambridge Univ fro 1828 to 1839. Applying the mechanism of time and motion study. The interest of mgmt and workers be closely linked through profit sharing and participative decision making. Emphasis on cost reduction through the discovery of improved methods. . He perceived that the methods of science and mathematics could be applied to the operations of the factories in manufacturing operations.
He closely watched the rail road managers and said that managers should be guided by 3 principles-organization. .communication and information.Henry Varnum Poor ► Editor of the “American Railroad Journal’from 1849-1862. ► Emphasised on the need of the efficient leadership at the top level to develop feeling of unity and to overcome the rigidities of the formal organization.
► He urged the combination of engineers and economist as industrial managers. ► He suggested organized exchange of experiences among managers and an organized effort to pool the accumulated knowledge. .a lock manufacturing company.Henry Robinson Towne(1844-1924) ► President of the famous”Yale and Towne).He took particular interest in better business management.
These techniques were: Market Research and forecasting. product plg.elaborate statistical records.maintenance of advance control reports.planned machine for better work flow.James watt and Mathew Robinson ► Both applies several management techniques in the Engineering factory at Soho(uK). .
► Suggested that science of administration is based on principles that are evolved by recording observation and experiences).He wrote book. .This system assures that better work done by them would be known to the management.Captain Henry Metcalfe(1847-1917) ► Metcalfe was the manager of an army arsenal.’The cost of Manufacturers and administration of work shop:Public and Private’. ► Metcalfe suggested a system of cards 1)time cards 2)material cards.
► People are motivated by economic gains. ► Emphasis is placed on economic efficiency and the formal organization structure. .Its main features are: ► Mgmt is viewed as a systematic network of interrelated functions. ► Principles are developed on the basis of experiences of practising mgrs.CLASSICAL APPROACH ► It is also called as traditional.mgmt process approach.empirical. ► Formal trg and education is emphasised for developing managerial skills.
LyndallF.Mooney.Frank and Lillian Gilbreth. ► Bureaucracy was evolved by a german sociologist.Max weber.a web of rules and regulations and impersonal control over human beings.W Taylor.Urwick. ► Administrative theory or functional approach was developed by mgmt practitioners and thinkers like.Henry Fayol.James . .CLASSICAL APPROACH INCLUDES 3 MAIN STREAMS ► Scientific management-main contributors are:F.Allan C.Henry gantt.Harrington emerson.He visualises a machine model of organization characterised by a hierarchy of authority.Reiley and others.
► There is a danger on relying too much on past experience. ► Provides scientific basis for management practice. the universal nature of the management. ► The totality of the real situation can seldom be incorporated in a case study.USES AND LIMITATIONS ► It focuses ► Highlights on what mgrs actually do. ► Limitations are: ► It offers a mechanistic framework that undermines the role of human factor. .
Simond Rolling mills and Bethlehem Steel co. 2.Contributions of Frederick Winslow Taylor(1856-1915) ► Father of Scientific management.Principles of scientific management.Elements and Tools of Scientific management. ► Taylor’s contribution can be defined in two parts: 1. ► He found that main cause of inefficiency and wastage in the factory was ignorance on the part of both workers and management. .His ideas about management grew in 3 companies:Midvale steel works.
ELEMENTS AND TOOLS OF SCIENTIFIC MANAGEMENT ► Separation of Plg and Doing. ► Functional Foremanship ► Job Analysis ► Standardisation. ► Scientific Selection and Training of Workers. ► Financial Incentives ► Economy ► Mental Revolution .
Principles of Scientific management ► Replacing Rule of thumb with science:Science determines precision and rule of thumb emphasises estimation. ► Harmony in Group Actions ► Cooperation ► Maximum Output ► Development of workers. .
Other contributors of Scientific Management ► Henry Gantt-Developed method of depicting plans and making possible better management control. Contributed in development of Gantt Chart. Frank and Lillian Gilberth tried to look problems of workers from social and psychological point of view. he emphasized importance of time as well as cost in planning and controlling work. .
Limitations of Scientific mgmt ► Scientific grounds: ► Exploitative device ► Depersonalized work ► Unpsychological ► Undemocratic ► Anti–social ► Unoriginal ► Unrealistic management was criticised on several .
► He has used the word Administration instead of management. ► Fayols contributions are published in his book”Administration Industrielle at Generale” ► He viewed the problem of managing organization from top management point of view.Security ► 5.He emphasised that principles of management are flexible and not absolute and are usable regardless of changing and special conditions. ► 3.Managerial Fayol has divided his approach of studying mgmt into threeparts: ► .Technical ► 2.Commercial.Henry Fayol (Administartive management) French Industralist and his contributions are called as operational or adminisatrative management.Financial ► 4.Accounting ► 6. ► Fayol found that activities of an industrial org can be divided into 6 groups: ► 1.
Mental. a)The elements are the functions of management-plg.Equity 12.Subordination of Individual to General interest.commanding.Discipline. B)General principles of management1.coordination and contrlling.Scalar chain 1o.Remuneration of Personnel.Educational.Authority and Responsibility 3.Stability of Tenure 13.anagement.Order 11. 6.Unity of Direction. 4.Moral.Experience.Initiative 14.Division of work 2.Technical. . 8. 7.Unity of command 5.Cont… A)Managerial qualitiesand training-Physical.Esprit de Corps. C)Elements of m.org.Centralisation 9.
BUREAUCRACY (Max Weber) Features of bureaucratic structure are: ► Hierarchy ► Division of work ► Rules. regulations and procedures ► Official Records ► Impersonal relationships ► Administrative class .
Problems in Bureaucracy ► Goal Displacement. ► Unintended Consequences ► Inhuman Organization ► Closed System Perspective .
Limitations of the Classical Theory ► Static view of organizations ► Closed system view ► Dehumanization of organization ► Anti-democratic bias ► Classical assumptions and values ► Classical principles Division of labor Departmentation The scalar principle The line and staff principle The span of control principle .
iii)the social process of group behaviour can be understood in terms of clinical method analogus to the doctor’s diagnosis of the human organism. ► The essence of Human relation can be understood in two points: ► I) organizational situation should be viewed in social terms as well as in economic and technical terms.NEO CLASSICAL THEORY HAWTHORNE EXPERIMENTS AND HUMAN RELATIONS ► Discovered that real cause of Human Behavior was something more than mere physiological behaviour.This new approach has been called' Human relations approach of management. ► .
whitehead & Roethilisberger & company representative William Dickson. The experiment was conducted at the Hawthorne plant of the General Electric company.Chicago was manufacturing telephone system bell which employed 30.► ► Investigated by-Elton Mayo.000 employee. .
. ILLUMINATION EXPERIMENTS ► This experiment to find out how varying levels of illumination (amount of light at work place .a physical factor) affected the productivity. ► Group of worker chosen placed in two groups 1. 2.Control group. .Experimental or test group.
Experiments to determine to determine the effects of changes in hours and other working conditions on productivity. 1924-27. 1931-32 1. . 2. Conducting plant-wide interviews to determine worker attitudes & sentiments.Experiment has four phases Experiment to determine the effects of changes in illumination on productivity.mass interviewing programme. illumination experiments. relay assembly test room experiments. 1928-30 4. bank wiring observation room experiments. 19271928 3. Determination and analysis of social organization at work.
. ► Production can decrease only when the illumination touch the level of moon light/below the normal level.Experimental /Test Group ► Varying intensity of illumination. ► Decrease in the illumination still lead to the increase in production. ► Increase of illumination in the experimental group can the increase the production.
. 1. 2. ► Production –equal to experiment group. Human factor was determing productivity but which aspect was affecting it was not sure. ► Conclusion Illumination did not have any effect on productivity but some thing else Interfering with the productivity.Control Group ► This group work under constant intensities of illumination.
Relay assembly Test Room Exp ► This exp. ► Two girls chosen these associated 4 more girls as coworker in assembly of telephone relay. to determine the effect of change in various jobs conditions on group productivity.2. ► Change associated with 4 to 12 weeks. .
Which were increased to ten minutes. ► ► Rest time was reduced to five minutes but frequency was increased.Changes and out come ► The incentive system was changed so that each girl’s extra pay was based on the other five reather than the output of the larger group.The productivity increased as compared to before. but coffee .the productivity decreased slightly and the girls complained that frequent rest intervals affected the rhythm of the work.soup& snacks provided in the morning &evening. ► ► .like 200 or more.-----productivity increased.tea . Two 5minute rest – one in morning other evening session. productivity increase.productivity increased Changes in working hours& working day. Rest was reduced to two of ten minutes each.
Mass Interviewing Programme ► ► ► ► ► ► 20. The social demands of the workers are influenced by social experience in groups both outside and inside the work plant. The workers behavior was influenced by group behaviour. supervision. .composed of a personal preference involving sentiments.insurance plans. desires and interest .000 experiments were conducted between 1928 to 1930 to determine employees attitudes towards company. Personal situation of the worker is a configuration . promotion and wages.it is a symptom of personal disturbance the cause of which is deep seated.the persons social past and his present interpersonal relations. Major findings: 1.Complaints is not necessarily an objective recital of facts.
Bank Wiring Observation room experiments ► ► ► ► Experiments were carried on between 1931 -1932 with a view to analyse the functioning of small group and its impact on individual behaviour. A group of 14 male workers were employed in the bank wiring room:9 wiremen.with the objective of producing more and to take the advantage of group bonus.3 soldermen. and 2 inspectors. Hourly wage rate for the personnel was based on average output of each worker while bonus was to be determined on the basis of average group output. Workers decided the target to connect 6600 terminals against 7300 terminals as set up by the company .
Satisfaction on the part of management ► Findings: ► Informal relationships are important factor in determining the human behaviour ► Conformity with both output norm and social norm were preferred.► The workers gave following reasons for the restricted output: ► 1.Fear of Raising standards ► 3.Fear of unemployment ► 2.Protection of Slower workers ► 4. .
.Conclusion ► Productivity increased not because of positive change in physical factors but because of a change in the girls attitude toward work & work group.
► Social factor in output ► Group Influence ► Conflicts ► Leadership ► Supervision ► Communication IMPLICATIONS OF HAWTHORNE EXPERIMENTS HAWTHORNE EXPERIMENT .
CRITICISM OF HAWTHORNE EXPERIMENTS ► The Hawthorne researchers did not give sufficient attention to the attitudes that people bring with them to the workplacesclass consciousness. . the role of unions etc. ► It was not a typical plant but a pleasant place to work ► The Hawthorne studies look upon the workers a means to an end himself.
SOCIAL SYSTEM APPROACH ► ► ► ► ► This approach was introduced by Vilfredo Pareto a sociologist. Relationship exsist among the external as well as internal enviornment of the organization. .Organization is a social system. a system of cultural relationship. His ideas were later developed by Chester Barnard who synthesized the concept of social systems approach .The major features of this approach are as follows: 1. For effective mgmt there should be harmony between the goals of the organization and various groups. Cooperation among group members is necessary for the achievement of organizational objective.
CONTRIBUTIONS OF CHESTER BARNARD ► Concept of organization ► Formal and informal organization ► Elements of organization ► Authority ► Functions of the Executive ► Motivation ► Execuitive Effectiveness ► Organizational Equillibrium .
Cyret and Forrestor etc. ► Quality of decision affects the orgnizational effectiveness. ► Mgmt is essentially decision making ► Members of the organizatio are decision makers and problem solver ► Organizations can be treated as a combination of various decision centres. .march.DECISION THEORY APPROACH ► Main contributors are Herbert Simon.
CONTRIBUTIONS OF HERBERT SIMON ► Concept of Organization ► Decision making ► Bounded rationality ► Administrative Man ► Organizational Communication .
managemnt is regardedas the problem solving mechanism. ► This approach covers decision making. ► Operation research.mathematical tools. ► The major features of this approach are as follows: ► 1.MANAGEMENT SCIENCE APPROACH Also known as mathematical or quantitative management approach. ► . systemanalysis and some aspects of human behaviour. ► Management problems can be described in terms of mathematical symbols and data.visualises management as a ogical entity.simulation models etc are the basic methodologies to solve managerial problems.
HUMAN BEHAVIOUR APPROACH ► It is outcome of the thoughts developed by Behavioural Scientists who focussed that study of management should revolve around human behaviour. ► Major contributors are Maslow.Argyris.(need hierarchy theory).Blake and Mouton etc. .Herzberg(MotivationHygeine theory.
approach may be treated as an extension of system approach which focus on the basic idea that there cannot be a particular action of managing human behaviour which is desiggned on the basis of internal states and enviorbnmental condiitions. ► Contingency .SYSTEMS AND CONTINGENCY APPROACH ►A system is a complex whole composed of parts and subparts in orderly arrangement according to some scheme or plan.
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