Different School of Management

Thoughts By

KartikeySymbiosis Law School

The Classical Management Perspective

The Classical Perspective onmanagement emerged during thenineteenth & and early twentieth century

The Classical Management Perspective

Scientific Management F.W. Taylor(Father of Scientific Management) Introduced the concept of Scientific

Management Concerned with improving the

performance of individual workers (i.e. operational efficiency)

Grew out of the industrial revolution's labor shortage at the beginning of the twentieth century

The Classical Management Perspective

Elements of Scientific Management

Time and Motion Study

Piece Work Pay System/ Differential Rate System

Fatigue study

The Classical Management Perspective

Principles of Scientific Management:

Replacing Rule of Thumb with Science Harmony in Group Action

Cooperation Maximum Output Development of workers

Steps in Scientific Management

The Classical Management Perspective (cont’d)

Henry Gantt He was an early associate of

Fredrick W. Taylor. Developed other techniques,

including the Gantt chart, to improve working efficiency through planning/scheduling

The Classical Management Perspective (cont’d

This is a Basic Gantt chart example. Itshows tasks in a Security and AccessControl project. Tasks are outlined in twosections. Each task uses a yellow triangleto indicate the start date of the task and agreen down triangle to indicate the finishdate of the task. Also shown on thisschedule are the responsible sub-contractors for the project (in the columnlabeled R-E-S-P).

The Classical Management Perspective

Frank & Lillian Gilberth Reduced the number of movements

in bricklaying, resulting in increased output of 200%.

Both collaborated fatigue and motion studies

The Classical Management Perspective (Administrative

Mgmt)

Administrative Management

A theory that focuses on managing the total organization and not only on productivity of individual.

The ClassicalManagement Perspective (Administrative

Mgmt) Max Weber He developed a theory of authority

structures and relations Bureaucracy- ideal type of organization

Focused on: division of labor clearly defined hierarchy� detailed rules and regulations�

impersonal relationships �

Weber’s Ideal bureaucracy

Henri Fayol (1841-1925) Henri Fayol was a French mining

engineer and management theorist. He developed the theory of Scientific Management. He studied at the mining school "Ecole Nationale Superieure des Mines" in Saint-Etienne of France

He is well known as the father of modern management theory. Fayol started as an engineer at a mining company and he became its managing director in 1888.

Henri Fayol (1841-1925) Fayol's contributions were first published

in book titled "Administration Industrielle et Generale", in 1916.

He looked at the problems of managing an organisation from top management point of view.

He has used the term 'administration' instead of 'management'.

His contributions are generally termed as operational management or administrative management.

Managerial Qualities According to Fayol a manager must have

following qualities: Physical (health, vigour, and address) Mental (ability to understand and

learn, judgement, mental vigour, and capability)

Moral (energy, firmness, initiative, loyalty, tact, and dignity)

Education (general acquaintance) Technical (peculiar to the function

being performed) Experience (arising form the work).

The Classical Management Perspective (Administrative Mgmt)

Henry Fayol said, Activities could be divided into six

groups:1. Technical (related to product)2. Commercial (buying, selling )3. Financial (Search for capital & use)4. Security (protection of property and person)5. Accounting (including statistics)6. Management (P,O C)

Fayol’s 14 Principles for Organizational Design and Effective Administration1. Division of Labor: allows for job

specialization. Fayol noted firms can have too much specialization

leading to quality output and proper worker involvement.

2. Authority and Responsibility: Fayol included both formal and informal authority resulting from special expertise.

3. Unity of Command: Employees should have only one boss.

4. Line of Authority: a clear chain from top to bottom of the firm.

5. Centralization: the degree to which authority rests at the very top.

Fayol’s 14 Principles for Organizational Design and Effective Administration6. Unity of Direction: One plan of action to

guide the organization. 7. Equity: Treat all employees fairly in justice

and respect. 8. Order: Each employee is put where they

have the most value. 9. Initiative: Encourage innovation.10. Discipline: obedient, applied, respectful

employees needed.

Fayol’s 14 Principles for Organizational Design and Effective Administration11. Remuneration of Personnel: The

payment system contributes to success.12. Stability of Tenure: Long-term

employment is important.13. General interest over individual

interest: The organization takes precedence over the individual.

14. Esprit de corps: Share enthusiasm or devotion to the organization.

The Classical Management Perspective (Administrative Mgmt)

Mary Parker Follet (1863-1933) Stressed the importance of

organizations establishing common goals to its employees.

Her Holistic´ model of control took intoaccount not just individuals and groups, but the effects of environmental factors also.

The Classical Management Perspective Today

CONTRIBUTION: Laid the foundation for later

theoretical developments. Identified management processes,

functions, and skills. Focused attention on management

as a valid subject of scientific inquiry

The Classical Management Perspective Today

Limitations : More appropriate approach for use in

traditional, stable, simple organizations.

Prescribed universal procedures that are not appropriate in some settings.

Employees viewed as tools rather than as resources

The Behavioral Management Perspective

Hugo Munsterberg (1863±1916) A German psychologist, considered the

father ofindustrial psychology, wrote Psychology andIndustrial Efficiency,´ a pioneering work in the practice of applying psychological concepts to industrial settings.

Neo-Classical PeriodHuman relations Approach

Behavioral Science Approach

Human relations Approach: The Hawthorne Studies

Conducted by Elton Mayo and associates at Western Electric (1927±1932) Illumination study. Elton Mayo's studies grew out of

preliminary experiments at the Hawthorne plant from 1924 to 1927 on the effect of light on productivity.

Those experiments showed no clear connection between productivity and the amount of illumination but researchers began to wonder what kind of changes would influence output.

The Hawthorne Studies Relay Assembly Test room.

Mass Interview Program. Factors Studies: Impact of Working Hours,

Resting Hour & Proportionate Compensation over Productivity

The major finding of the study was that irrespective of the experimental manipulation, worker production seemed to improve continually.

One reasonable conclusion is that the workers were happy to receive attention from the researchers who expressed an interest in them. Originally, the study was expected to last one year, but since the findings were inexplicable when the researchers tried to relate the worker's efficiency to manipulated physical conditions, the project was incrementally extended to five years.

Elton Mayo's Contribution Bank Wiring observation Room

Factors: Impact of formally unmonitored work over productivity

Findings: The aptitudes of individuals are

imperfect predictors of job performance. Although they give some indication of the physical and mental potential of the individual, the amount produced is strongly influenced by social factors.

Elton Mayo's Contribution

Informal organization affects productivity. The researchers discovered a group life among the workers. The studies also showed that the relations that supervisors develop with workers tend to influence the manner in which the workers carry out directives.

Work-group norms affect productivity. The Hawthorne researchers recognized

that work groups tend to arrive at norms of what is "a fair day's work.“ They provided the best systematic description and interpretation of this phenomenon.

Elton Mayo's Contribution

The workplace is a social system. The researchers came to view the workplace as a social system made up of interdependent parts. The worker is a person whose attitudes and effectiveness are conditioned by social demands from both inside and outside the work plant. Informal group within the work plant exercise strong social controls over the work habits and attitudes of the individual worker.

Elton Mayo's Contribution

The need for recognition, security and sense of belongingness is more important in determining workers' morale and productivity than the physical conditions under which he works.

Behavioral Science Approach

Emphasized individual attitudes and behaviors, and group processes.

Recognized the importance of behavioral processes in the workplace

Abraham Maslow : Advanced a theory that employees

are motivated by a hierarchy of needs that they seek to satisfy.

Maslow’s hierarchy of needs

Douglas McGregor Th:

He Proposed Theory X and Theory Y concepts of managerial beliefs about people and work

Theory X : It assumes that workers have little

ambition,dislike work, want to avoid responsibility, andneed to be closely controlled

Theory Y

It assumes that workers can exercise self-direction, accept and actuallyseek out responsibility, and consider work to be a natural activity

Chester Barnard’s contribution

In his youth, Barnard worked in a farm, then studied economics at Harvard University, earning money tuning pianos and operating a dance band. Harvard denied him a BA because of a technicality, but a number of universities later granted him honorary doctorates.

Barnard joined the American Telephone and Telegraph Company (now AT&T) in 1909. In 1927, he became president of the New Jersey Bell Telephone Company.

During the Great Depression, he directed the New Jersey state relief system .He was president of the United Service Organizations (USO), 1942-45

Chester Barnard’s contribution

Upon retiring from business, he served as president of the Rockefeller Foundation, 1948-52, and as chairman of the National Science Foundation, 1952-54.

End 1950s he was among the first members of the Society for General Systems Research

Chester Barnard’s contribution

Barnard looked at organizations as systems of cooperation of human activity, and noted that they are typically short-lived.

It is rare for a firm to last more than a century. Similarly most nations last for less than a century.

The only organization that can claim a substantial age is the Roman Catholic Church.

According to Barnard, organizations are not long-lived because they do not meet the two criteria necessary for survival: effectiveness and efficiency.

Effectiveness Effectiveness, is defined as being

able to accomplish stated goals. It is the ultimate objective of

cooperative action . It Cannot be achieved without

cooperation from employees .

efficiency He defined efficiency of an

organization as the degree to which that organization is able to satisfy the motives of the individuals

If an organization satisfies the motives of its members while attaining its explicit goals, cooperation among its members will last.

Functions of the Executive

Barnard's classic 1938 book Functions of the Executive discusses, as the title suggests, the functions of the executive, but not from a merely intuitive point of view, but instead deriving them from his conception of cooperative systems.

Authority and incentives

Barnard summarized the functions of the executive as follows:

Barnard formulated two interesting theories:

(a) authority (b) incentives. Both are seen in the context of a

communication system grounded in seven essential rules:

Authority and incentives

The channels of communication should be definite;

Everyone should know of the channels of communication;

Everyone should have access to the formal channels of communication;

Authority and incentives

Lines of communication should be as short and as direct as possible;

Competence of persons serving as communication centers should be adequate;

The line of communication should not be interrupted when the organization is functioning;

Every communication should be authenticated.

Thus, what makes a communication authoritative rests with the subordinate rather than with his superior. Barnard's perspective had affinities to that of Mary Parker Follett and was very unusual for his time, and that has remained the case down to the present day. He seemed to argue that managers should obtain authority by treating subordinates with respect and competence.

Incentives As for incentives, he proposed two

ways of convincing subordinates to cooperate: tangible incentives and persuasion. He gives great importance to persuasion, much more than to economic incentives.

Incentives He described general and as well as

specific incentives such as :

Money and other material inducements;

Personal non-material opportunities for distinction;

Desirable physical conditions of work;

Ideal benefactions, such as pride of workmanship etc