evolutions of management thoughts

8/7/2019 EVOLUTIONS OF MANAGEMENT THOUGHTS

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EVOLUTIONS OF MANAGEMENT

THOUGHTS


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Definitions of Management

Harnold koontz defined management as the the process of designing

& maintaining the environment in which individuals, working together in

groups, efficiently accomplish selected aims

David l kurtz defined management as the use of people & other

resources to accomplish objectives


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Management ?

Management is a set of activities including planning & decision making,

organizing, leading & controlling, directed at an organizations

resources ( physical, financial, human & information ) with the aim ofachieving organizational goals in efficient & effective manner.


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Evolution of the Management Thought

Modern managers use many of the practices, principals, andtechniques developed from earlier concepts and experience.

In 1975, Raymond E. Miles wrote Theories of Management :Implications for organizational behavior and development.

In it, he evaluated management includes classical, humanrelations, and human resources management.


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The development of management thought has been evaluated in

nature under the following four parts:

1. Classical management Era (1880-1930)

2. Neo-classical Management Era (1930-1950)

3. Modern Management era(1950-on word)


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Classical Management: includes1. Scientific Management approach

2. Administration Management approach3. Bureaucracy Management.

Neo- classical Management: includes1. Human relation approach

2. Behavioral Management approach

Modern Management: includes1. Quantitative Management school

2. System Management school

3. Contingency Management school


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Scientific Management Frederick w.taylor ( 1856- 1915 )

A worker and then a supervisor in steel company

Carried experiments to increase efficiency of the workers

Published many books and papers

Studied M.E (Masters of Engineering)

His experiments are divided into

Elements and tools of scientific management

Principles of scientific management.


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Elements and tools of scientificmanagement

Separation of planning & doing supervisor plans, workers only

carries out the task.

Functional foremanship 4 types of supervisors for planningaspect , while 4 for supervision aspect of the work.

Job analysis best way to do the job.

Standardization of process, period & amount of work, working

conditions, tools used etc.

Scientific selection & training of workers. Financial incentives.

Economy optimum utilization of resources & reduce wastage.

Mental revolution cooperation between workers & management.


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Principles of scientific management

Replacing rule of thumb with science

Harmony in group actions

Cooperation

Maximum output

Development of workers


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Critical Analysis of ScientificManagement

Relevant from engineering point of view rather than management

point of view

Human aspect of the work was sidelined workers gotaggressive, resulted in unhealthy competition

Increased authoritarian approach in industries strict

supervision

Financial incentives exploited the workers ( differential piece rate

system )


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Administrative Management HenryFayol (1841-1915 )

Henry Fayol French Industrialist

Used the term Administration instead of Management

Divided industrial organization into 6 groups :

Technical

Commercial

Financial

Security

AccountingManagerial

Identified qualities of a manager


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Managerial Qualities and training-according to Fayol

Physical Health

Mental - ability to learn, judge, think, plan

Moral - loyalty, firmness, tact, dignity

Educational - acquaintance to subjects not related to

functions performed

Technical - pertaining to the function performed, eg. production

Experience - arising through work


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Fayols 14 principles of Management

1. Division of work

2. Authority and responsibility

3. Discipline

4. Unity in command

5. Unity of direction

6. Subordination of individual, to general interest

7. Centralization

8. Remuneration

9. Scalar chain

10. Order

11. Equity

12. Stability of Tenure

13. Initiative

14. Esprit de corps


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BureaucraticApproach to Management-

Max Weber (1864 -1920)

Max weber analyzed functioning of church, government, military

& business organization.

He believed that bureaucracy was the most efficient form of a

business structure for any type of business organization


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Features ofBureaucracy Theory

Administrative class :

This class exists in a bureaucratic organization

The employees are full time & look after coordination among activities

Hierarchy :

It is a system of ranking

Strict rules for authority & responsibility

Serves lines of communication & delegation of authority

Division of work :

Organization divided in various departments

Each department will have a specific function

Clear definition of work


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Official Rules :Administrative process covered by rules

Provides stability & uniformity

Impersonal Relationships :Official relationships free from personal involvement, emotions &

sentiments

Decisions are based on rational ranking

Official Record :Maintenance of official records

Beneficial for future experience

Filing system used extensively


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The human relations approach -Elton Mayo

Conducted the famous Hawthorne Experiments carried out at

the Western Electric Company, in the United States ofAmerica

that started in the early1920s. In the approaches by Taylor and Fayol, the human element in

the organization was not stressed upon.

The elements in these approaches were not giving evoking

positive results.

The Western Electric Company, Chicago had Hawthorne plant

that manufactured telephone bell system.

The company was progressive, with sickness and pension

benefits.

In spite of this, there was a dissatisfaction among workers.


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Salient Features

Focus on individual, his needs and behavior

Highlight interpersonal relations

Emphasis on motivation and jobsatisfaction

Conflict in an organization is always destructive

and should be always avoided.

Based on Hawthorne experiments.

People behavior as a individual may be different

than his behavior in a group


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Emphasis on improving the working condition,

interpersonal relation, supervisory styles and

communication systems.

People working in the organization may have

different goals but it is the work of management

to guide them toward the common goal.

People working in the organization form their own

informal groups and these groups have a significant

influence on the attitude and values of people.


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Focuses on the way a manager should personally manage

to motivate employees.

Mary Parker Follett: an influential leader in early

managerial

theory.

Suggested workers help in analyzing their

jobs for improvements.

The worker knows the best way to improve

the job.

If workers have the knowledge of the task,

then they should control the task.

Behavioral Management


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Quantitative Approach

Characterized by its use of mathematics, statistics,

and other quantitative techniques for management

decision making and problem solving. This approach has four basic characteristics:

1. A decision-making focus

2. Development of measurable criteria

3. Formulation of a quantitative model

4. The use of computers

Decision-Making FocusThe primary focus of the quantitative approach is on

problems or situations that require direct action, or a

decision, on the part of management


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Measurable CriteriaThe decision-making process requires that the decision

maker select some alternative course of action.

The alternatives must be compared on the basis of

measurable criteria.

Quantitative ModelTo assess the likely impact of each alternative on the

stated criteria, a quantitative model of the decisionsituation must be formulated.

ComputersComputers are quite useful in the problem-solving process.


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Contributions of Quantitative Approach

In Production Management -

Focus is on manufacturing technology and the

flow of material in plants.

In Operation Management-

Focus is on organization such as hospitals,

banks, government & the military.


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The Systems Approach

System Defined as

A set of interrelated and interdependent parts arranged

in a manner that produces a unified whole.

An approach to problem solving based on an

understanding of the basic structure of systems.


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The Systems Approach

Basic Types of Systems

Closed systems

Are not influenced by and do not interact with their

environment (all system inputs and outputs are internal).

Open systems

Dynamically interact to their environments by taking

in inputs and transforming them into outputs that are

distributed into their environment.


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The ContingencyApproach

ContingencyApproach

1. Also sometimes called the situational approach.

2. There is no one universally applicable set of managementprinciples (rules) by which to manage organizations.

3. Organizations are individually different, faces different

situations (contingency variables), and require different

ways of managing.

4. Asserts that managers are responsible for determining

which managerial approach is likely to be most effective

in a given situation.

5. This requires managers to identify the key contingencies

in a given situation

evolutions of management thoughts

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