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Management
BBA/BBA-BI First
Semester
Bharat Ram
Dhungana
Lecturer
Unit 2
Management Theories
6 hours
Scientific management school
Administrative management
Behavioral School
Management science school
Systems approach
Contingency approach
Understanding
the
historical context of
management provides a
sense of heritage and
can help managers avoid
the mistakes of others.
Ricky W. Griffin
1890
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
2010
24
What is Scientific
Management School?
propounded by F.W.Taylor.
management.
He started job as a worker in Midvale steel
company (1878) at first & later became
supervisor & chief engineer through his
continuous hard work & efforts.
Afterwards he joined Bethlehem steel
company & worked as a consultant.
He developed a scientific management theory
through the long experiences, investigations, &
study while working in different companies as
a worker, chief engineer & manager.
Principles of Scientific
Management
Replacing the rule of thumb with
Steps in Scientific
Management
1
Develop a science
for each element of
the job to replace old
rule-of-thumb methods
2
Scientifically select
employees and then
train them to do the job
as described in step 1
3
Supervise employees
to make sure they
follow the prescribed
methods for performing
their jobs
4
Continue to plan
the work, but use
workers to get the
work done
Contributions
This theory is the foundation for other theories
It has focused to Increase productivity and
Limitations
1. It fails to enlist all contingency
variables.
2. It focuses on mere situations but
which tools should be used in what
situation is not specified.
3. It ignores human behavior aspects.
Findings
Productivity
increased
Incentive pay was a
factor
Jobs simplified
Administrative
Management Theory
Henry Fayol (1840-1925), a French
14 Principles
Division of work
Authority & responsibility
Discipline
Unity of command
Unity of direction
Subordination of individual interest
to general interest
7. Remuneration of personnel
1.
2.
3.
4.
5.
6.
Industrial Activities
Technical activities
Commercial activities
Financial activities
Security activities
Accounting activities
Managerial activities
According to Henry
Fayol , management is a
distinct process involving
many managerial activities
like planning, forecasting,
organizing, commanding,
coordinating & controlling.
Limitations
It does not give proper attention to
Bureaucratic Theory
Max Weber (1864-1920) was a German
Major Characteristics
There should be hierarchy of authority
Behavioral School
/Behavioural Science
Approach
Abraham Maslow
Abraham
Maslow is a popular
American psychologist who
developed a theory of human
needs in 1943.
He classified human needs into five
categories in a hierarchical basis.
People have unlimited needs &
once one need is relatively fulfilled,
other needs automatically emerge.
General Examples
Organizational Examples
Achievement
Selfactualization
Status
Esteem
Friendship
Stability
Food
Belongingness
Security
Physiology
Challenging
job
Job
title
Friends
at work
Pension
plan
Base
salary
Douglas McGregor:
Theory X & Theory Y
He proposed two distinct views of
The General
Assumptions of Theory
X
Employees generally dislike work &
Fredrick Herzberg:
Two Factor Model
Herzberg & his associates found that there are
The TwoFactor
Theory of
Motivation
Motivation Factors
Achievement
Recognition
The work itself
Responsibility
Advancement
and growth
Satisfaction
No satisfaction
Hygiene Factors
Supervisors
Working conditions
Interpersonal relations
Pay and security
Company policies and
administration
Dissatisfaction
No dissatisfaction
Hygiene factors
This factor is also known as dissatisfiers or
maintenance factors.
The presences of these factors do not
motivate employees (no dissatisfaction) but
their absence causes dissatisfaction
It includes company policy, relationship with
supervisors & peers, working conditions, job
security etc.
When the hygiene factors are felt to be
inadequate by workers, the factors function
as dissatisfiers.
Motivating factors
This factor is also known as motivators,
Contributions of
Behavioural Science
Theory
Limitations of Behavioural
Science Theory
This theory has not considered the
situational variables.
It has neglected the economic
dimension of job satisfaction.
Human behaviour is a complex issue
which is not easy to explain.
This theory is only a partial view of an
organization. It fails to analyze the wider
aspects of organization.
1.Illumination Experiment
This experiment was made in the
3.Mass Interviewing
Program
A group of 20,000 workers were interviewed
4.Bank Wiring
Observation Room
Experiment
Contributions of
Human Relation Theory
Effective supervision plays an important
Limitations of
Human Relation
Theory
This
Contributions of
Management Science Theory
It encourages disciplined thinking while
Limitations of Management
Science Theory
It does not deal with the people
aspects of an organization.
All the required data may not be
accurate & updated.
This approach is not a substitute for
management. The technique is useful
but can not solve all problems.
System Theory
of management.
A system is a set of interrelated &
interdependent parts arranged in a that
produce a unified whole.
The system is composed of a number of
subsystems & all the subsystems are
related to each other.
This theory was developed in the 1960s.
Main contributors were Bertalanffy, Wiener,
Kast, Rosenzwig etc.
The Systems
Perspective of
Organizations
Inputs from the
environment:
material inputs,
human inputs,
financial inputs, and
information inputs
Transformation
process: technology,
operating systems,
administrative
systems, and
control systems
Feedback
Outputs into
the environment:
products/services,
profits/losses,
employee behaviors,
and information
outputs
Contributions
System
Limitations
This theory is not relevant for small
organization.
It does not offer specific tools &
techniques for the practicing
manager.
This theory is too abstract & can not
be directly & easily applied to
practical problems.
Contingency Theory
This theory was developed by managers,
Contributions
This theory doesn't in "one best way". So
Limitations
1. It fails to enlist all contingency
variables.
2. It focuses on only situations but
which tools should be used in
what situation is not specified.
3. It ignores human behaviour
aspects.
Any Questions?
.