The Evolution of Management Thought

The Evolution of Management Theories for Organization

Scientific Management Theory

Administrative Management Theory

Administrative Management Theory • Administrative Management – The study of how to create an organizational structure that leads to high efficiency and effectiveness. .

max Weber's theory .

. He developed the principles of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness. It is the most important means of controlling over human beings.Administrative Management Theory Max Weber ( 1864-1920) German sociologist He has given the bureaucratic model.

Weber’s Principles of Bureaucracy .

In a bureaucracy. Division of labour : There should be a division of labor based upon competence and functional specialization . a manager’s formal authority derives from the position he or she holds in the organization. so employees know whom to report to and who reports to them.Weber’s Principles of Bureaucracy :Hierarchy of authority: Authority can be exercised effectively when positions are arranged hierarchically.

Specified system of task and responsibility: The extent of each position’s formal authority and task responsibilities and it’s relationship to other positions should be clearly specified.Weber’s Principles of Bureaucracy Impersonality: People should occupy positions because of their performance. not because of their social standing or personal contacts. .

and norms so they so that they can effectively control behavior . .Weber’s Principles of Bureaucracy Written rules of conduct Managers must create a well-defined system of rules. standard operating procedures.

Rules. informal codes of conduct that prescribe how people should act in particular situations . SOPs and Norms • Rules – formal written instructions that specify actions to be taken under different circumstances to achieve specific goals • Standard Operating Procedures (SOPs) – specific sets of written instructions about how to perform a certain aspect of a task • Norms – unwritten.

Advantages and disadvantages .

.Advantages • No confliction among job duties • Promotion is based on experience and merits. • Employees are bound to follow rules and management process becomes easy • Division of labour helps workers in becoming experts.

.Disadvantages • System suffers from too much of red tape and paper work. • Human factor is neglected due to excessive emphasis on rules • Employees don’t develop belongingness to the organization • Employees resist change.

Behavioural Management Theory .

.Behavioral Management /Human relations approach Behavioral Management – The study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals.

Gregor .Behavioral Management It was concerned that scientific management ignored the human side of the organization. It began with the Hawthorne experiments by Elton Mayo and important contributions have been made by Douglas Mc.

Features of the theory  An organization is more than a formal structure of positions. It is a system of interpersonal and intergroup relationships. Management must understand human behavior Higher motivation and productivity can be obtained through good human relations which can be developed through Leadership Communication Employee participation .

Theory X and Theory Y .

Theory X and Theory Y It is given by Douglas McGregor. . In his book “ the Human side of enterprise”states that people can be managed in two ways. He proposed the two different sets of assumptions about workers.

 Many employees rank job security on top.Theory X and Theory Y Theory X Assumptions :  The average worker is lazy.  An average employee needs formal direction. dislikes work and will do as little as possible and tries to escape it whenever possible  Managers must closely supervise and control through reward and punishment. .  Employees generally dislike responsibilities and from responsibilities. and they have little or no aspiration/ ambition.

want to do a good job  They view work as natural and enjoyable  Employees are committed to objectives and exercise self control and self direction for their attainment.Theory X and Theory Y – Theory Y Assumptions:  Workers are not lazy.  They can learn and even seek responsibility.  All people are capable of making creative and innovative decisions . then it will result in employees’ loyalty and commitment to organization.  If the job is rewarding and satisfying.

implications .

.The Hawthorne Studies Studies of how characteristics of the work setting affected worker fatigue and performance at the Hawthorne Works of the Western Electric Company from 1924-1932.

worker productivity increased. .The Hawthorne Studies – Worker productivity was measured at various levels of light illumination. – Researchers found that regardless of whether the light levels were raised or lowered.

The Hawthorne Studies Human Relations Implications – Hawthorne effect — workers’ attitudes toward their managers affect the level of workers’ performance .

The Hawthorne Studies • Human relations movement – advocates that supervisors be behaviorally trained to manage subordinates in ways that elicit their cooperation and increase their productivity .

The Hawthorne Studies Implications • Behavior of managers and workers in the work setting is as important in explaining the level of performance as the technical aspects of the task .

and behavior of work-group members and managers affect performance . thoughts.The Hawthorne Studies • Demonstrated the importance of understanding how the feelings.

Management Science Theory .

.Management Science Theory • Contemporary approach to management that focuses on the use of rigorous quantitative techniques to help managers make maximum use of organizational resources to produce goods and services.

simulation. modeling. . – Operations management — techniques used to analyze any aspect of the organization’s production system. queuing theory and chaos theory.Management Science Theory – Quantitative management — utilizes linear and nonlinear programming.

conversion. and output activities to increase product quality. .Management Science Theory – Total Quality Management (TQM) — focuses on analyzing input. – Management Information Systems (MIS) — provides information vital for effective decision making.

Organization Environment Theory .

Organizational Environment Theory Organizational Environment – The set of forces and conditions that operate beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources .

.The Open-Systems View Open System – A system that takes resources for its external environment and transforms them into goods and services that are then sent back to that environment where they are bought by customers.

.

– Output: the release of finished goods and services to its external environment.The Open-Systems View – Inputs: the acquisition of external resources to produce goods and services – Conversion: transforms the inputs into outputs of finished goods and services. .

• Likely to experience entropy and lose its ability to control itself .Closed System • A self-contained system that is not affected by changes in its external environment.

Systems • Synergy – the performance gains that result from the combined actions of individuals and departments – Possible only in an organized system .