Notes Management Thought1

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

THEORY

IS A COHERENT GROUP OF ASSUMPTION PUT FORTH TO EXPLAIN THE RELATIONSHIP BETWEEN TWO OR MORE OBSERVABLE FACTS AND TO PROVIDE A SOUND BASIS FOR PREDICTING FUTURE EVENTS. WHY: 1.GUIDE MANAGEMENT DECISION. 2.SHAPE OUR VIEW OF ORGANISATION. 3.MAKE US AWARE OF THE BUSINESS ENVIRONMENT. 4.A SOURCE OF NEW IDEA.

MANAGEMENT THOUGHT

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MANAGEMENT THOUGHT

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THE EMERGENCE OF M & O THEORIES

The Neo-Human Relation Movement The Contingency Approach The System Approach The Quantitative School The Behavioral Sc School Classical Management Theories

Lab our Sho rtag e WW 1(19 14 - 1 The 918 Gre ) atD e WW press i Dem11(194 on Qua ing 1 -1 9 lity Lec inJ tur 45) Pro apan eon (60s tes M IBM – 70s) oveme nt PC Intr odu ced )

1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990

MANAGEMENT THOUGHT

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1900s

TRADITIONAL THEO RIES

1940s

1970s

MO DIFICATIO N

CO NTEMP ORARY

EVO LUTIO N O F O RGANIS ATIO N AND MANAGEM ENT THEO RIES

Traditional/ Classical The ories

Modifications

Scientific Management

Management Science

Efficient Task Performance

Economic Technical Rationality

Contemporary Approaches

System Appr oach Subsystem & En vironment

Bureaucratic Model Authority & S tructure

Human Relation

Behavourial Science

Administrati ve Theory Universal Management Principles

Psychology, S ociology, etc.

MANAGEMENT THOUGHT

Contingency View No Best M ethod -Situational Factors.

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F.W. TAYLOR (1856 – 1917) USING TIME STUDY, BROKE JOB INTO COMPONENTS, DESIGN BEST AND QUICKEST METHOD OF PERFORMING EACH COMPONENT. USING DIFFERENTIAL RATE SYSTEM. 4 BASIC PRINCIPLES: THE DEVELOPMENT OF TRUE SCIENCE OF MANAGEMENT – BEST METHOD FOR PERFORMING JOB. SCIENTIFIC SELECTION OF WORKERS – SKILL AND TASK ALLOCATION. SCIENTIFIC EDUCATION AND DEVELOPMENT OF WORKER. INTIMATE, FRIENDLY COOPERATION BETWEEN MANAGEMENT AND LABOUR.

MANAGEMENT THOUGHT

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CONTRIBUTION OF SCIENTIFIC MANAGEMENT 1.MODERN ASSEMBLY LINE 2.HIS EFFICIENCY TECHNIQUE BEING ADOPTED BY MANY ORGANISATION. 3.ESTABLISHED JOB DESIGN, SCIENTIFIC SELECTION AND DEVELOPMENT OF WORKERS. 4.RATIONAL APPROACH TO SOLVING PROBLEMS AND LAID GROUNDWORK FOR THE PROFESSIONALIZATION OF MANAGEMENT. LIMITATIONS • DO NOT TAKE INTO ACCOUNT THE HUMAN AND SOCIAL ASPECTS. • EMPHASIS ON PRODUCTIVITY/PROFIT ONLY. • TREAT MEN LIKE MACHINE MANAGEMENT THOUGHT

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FRANK AND LILLIAN GILBRETH STUDIED FATIGUE CAUSED BY LIGHTING, HEATING, AND THE DESIGN OF TOOLS AND MACHINES. TIME AND MOTION STUDIES BREAKING UP EACH JOB ACTION INTO ITS COMPONENTS. FINDING BETTER WAYS TO PERFORM THE ACTION. REORGANIZING EACH JOB ACTION TO BE MORE EFFICIENT.

HENRY GANTT DEVELOPED OTHER TECHNIQUES, INCLUDING THE GANTT CHART, TO IMPROVE WORKING EFFICIENCY THROUGH PLANNING/SCHEDULING

MANAGEMENT THOUGHT

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“MOTIVATING BY TREATING INDIVIDUALS AS PERSONS”

ADMINISTRATIVE MANAGEMENT THEORY BY HENRY FAYOL (1804 – 1925) 1ST TO SYSTEMATIZE ORGANISATION. USING SCIENTIFIC FORECASTING AND PROPER METHOD OF MANAGEMENT MACRO CONCEPT FOCUS ON FORMAL ORGANISATION STRUCTURE THAT SEPARATE BASIC PROCESS OF GENERAL MANAGEMENT. MANAGEMENT PROCESS PLANNING, ORGANISING, COMMAND, COORDINATION AND CONTROL. FOCUSSES ON ORGANIZATION

MANAGING

MANAGEMENT THOUGHT

THE

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FELT THE NEED OF IMPARTING TEACHING RELATED TO ORGANIZATION 14 PRINCIPLES 1.DIVISION OF WORK 2.AUTHORITY AND RESPONSIBILITY 3.DISCIPLINE 4.UNITY OF COMMAND 5.UNITY OF DIRECTION 6.SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST. 7.REMUNERATION OF PERSONNEL. 8.CENTRALIZATION. 9.SCALAR OF CHAIN : AUTHORITY. 10.ORDER 11.EQUITY : EQUITY AND JUSTICE 12.STABILITY MANAGEMENT THOUGHT

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13.INITIATIVE 14.ESPRIT DE CORPS BUREAUCRATIC MODEL MAX WEBER (1864 – 1920) STRESSED THE NEED FOR A STRICTLY DEFINED HIERARCHY GOVERNED BY CLEARLY DEFINED REGULATIONS AND LINES OF AUTHORITY. 1.DIVISION OF LABOUR BASED ON FUNCTIONAL SPECIALIZATION 2. A WELL-DEFINED HIERARCHY OF AUTHORITY 3.A SYSTEM OF RULES COVERING THE RIGHTS AND DUTIES OF POSITION 4.A SYSTEM OF PROCEDURES FOR DEALING WITH WORK SITUATIONS; 5. AN IMPERSONALITY IN OR AMONG INTERPERSONAL RELATIONS. MANAGEMENT THOUGHT

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6.A SYSTEM OF PROMOTION AND SELECTION FOR EMPLOYMENT BASED ON TECHNICAL COMPETENCE. MARY PARKER FOLLET CONSIDERED WORKERS AS HUMAN , CONCERNED THAT TAYLOR IGNORED THE HUMAN SIDE OF THE ORGANIZATION GROUP FORMATION COMMUNICATION/MOTIVATION/ LEADERSHIP  AFFECT OF BIOLOGICAL, ECONOMICAL & EXTERNAL INFLUENCERS ON HUMAN ELEMENTS 

CHESTER BERNARD SOCIAL NEED MANAGEMENT THOUGHT

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PSYCHOLOGICAL NEED THUS IDENTIFIED AND GAVE THE CONCEPT OF ZONE OF TOLERANCE BY WHICH THE WORKERS AND MANAGERS WILL BE IN PARITY

CONTRIBUTIONS LAID THE FOUNDATION DEVELOPMENTS

FOR

LATER

IDENTIFIED IMPORTANT MANAGEMENT PROCESSES, FUNCTIONS, SKILLS FOCUSED ATTENTION ON MANAGEMENT AS A VALID SUBJECT OF SCIENTIFIC INQUIRY LIMITATIONS MORE APPROPRIATE FOR TRADITIONAL, STABLE, SIMPLE ORGANIZATIONS

MANAGEMENT THOUGHT

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PRESCRIBED UNIVERSAL PROCEDURES NOT APPROPRIATE IN SOME SETTINGS IN SOME CASES, VIEWED EMPLOYEES AS TOOLS RATHER THAN RESOURCES BEHAVIORAL MANAGEMENT PERSPECTIVE THE HAWTHORNE STUDIES CONDUCTED BY ELTON MAYO & ASSOCIATES AT WESTERN ELECTRIC (1927–1935) ILLUMINATION STUDY 

GROUP STUDY— THE EFFECTS OF A PIECEWORK INCENTIVE PLAN ON PRODUCTION WORKERS. WORKERS ESTABLISHED INFORMAL LEVELS OF ACCEPTABLE INDIVIDUAL OUTPUT.

MANAGEMENT THOUGHT

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OVER-PRODUCING WORKERS WERE LABELED “RATE BUSTERS” AND UNDER-PRODUCING WORKERS WERE CONSIDERED “CHISELERS.” INTERVIEW PROGRAM CONFIRMED THE IMPORTANCE OF HUMAN BEHAVIOR IN THE WORKPLACE.

HUMAN RELATIONS MOVEMENT PERSPECTIVE THAT WORKERS RESPOND PRIMARILY TO THE SOCIAL CONTEXT OF WORK 

ABRAHAM MASLOW : - COINED A HIERARCHY OF NEEDS IN THE ORDER STARTING FROM PHYSIOLOGICAL, SAFETY, SOCIAL, SELF ESTEEM & SELF ACTUALIZATION NEEDS

MANAGEMENT THOUGHT

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DOUGLAS McGREGOR : - PROPOSED THEORY X AND THEORY Y CONCEPTS OF MANAGERIAL BELIEFS THEORY X: PEOPLE DO NOT LIKE WORK AND TRY TO AVOID IT. THEORY Y: WORK IS A NATURAL PART OF PEOPLE’S LIVES.

• CONTRIBUTIONS – PROVIDED IMPORTANT INSIGHTS INTO MOTIVATION, GROUP DYNAMICS, AND OTHER INTERPERSONAL PROCESSES. – FOCUSED MANAGERIAL ATTENTION ON THESE CRITICAL PROCESSES. – CHALLENGED THE VIEW THAT EMPLOYEES ARE TOOLS AND FURTHERED THE BELIEF THAT EMPLOYEES ARE VALUABLE RESOURCES.

• LIMITATIONS – COMPLEXITY OF INDIVIDUALS MAKES BEHAVIOR DIFFICULT TO PREDICT. MANAGEMENT THOUGHT

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– MANY CONCEPTS NOT PUT TO USE BECAUSE MANAGERS ARE RELUCTANT TO ADOPT THEM. – CONTEMPORARY RESEARCH FINDINGS ARE NOT OFTEN COMMUNICATED TO PRACTICING MANAGERS IN AN UNDERSTANDABLE FORM.

QUANTITATIVE MANAGEMENT PERSPECTIVE MANAGEMENT SCIENCE FOCUSES ON THE DEVELOPMENT OF MATHEMATICAL MODELS TO ASSIST WITH DECISIONS •

OPERATIONS MANAGEMENT PRACTICAL APPLICATION OF MANAGEMENT SCIENCE TO EFFICIENTLY MANAGE THE PRODUCTION AND DISTRIBUTION OF PRODUCTS AND SERVICES •

• TOTAL QUALITY MANAGEMENT (TQM) MANAGEMENT THOUGHT

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FOCUSES ON ANALYZING INPUT, CONVERSION, AND OUTPUT ACTIVITIES TO INCREASE PRODUCT QUALITY. MANAGEMENT INFORMATION SYSTEMS PROVIDES INFORMATION VITAL FOR EFFECTIVE DECISION MAKING. •

• CONTRIBUTIONS – DEVELOPED QUANTITATIVE TECHNIQUES TO ASSIST IN DECISION MAKING. – APPLICATION OF MODELS HAS INCREASED AWARENESS AND UNDERSTANDING OF COMPLEX PROCESSES AND SITUATIONS. – HAS BEEN USEFUL IN THE PLANNING AND CONTROLLING PROCESSES. • LIMITATIONS – CANNOT FULLY EXPLAIN OR PREDICT BEHAVIOR. MANAGEMENT THOUGHT

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– MATHEMATICAL SOPHISTICATION MAY COME AT THE EXPENSE OF OTHER SKILLS. – MODELS MAY REQUIRE UNREALISTIC OR UNFOUNDED ASSUMPTIONS.

SYSTEMS APPROACH

MANAGEMENT THOUGHT

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Environment A

D

B

E Sub-systems C

System Approach

Environment

A SYSTEM IS DEFINED AS AN ORGANISED, UNITARY WHOLE COMPOSED OF TWO OR MORE INTERDEPENDENT PARTS, COMPONENTS, OR MANAGEMENT THOUGHT

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SUBSYSTEMS AND DELINEATED IDENTIFIABLE BOUNDARIES FROM ENVIRONMENTAL SUPRASYSTEM.”

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SUBSYSTEMS

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SYNERGY

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OPEN AND CLOSE SYSTEMS

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SYSTEM BOUNDARY

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FLOW

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FEEDBACK

THE CONTINGENCY APPROACH • MANAGEMENT THOUGHT

BY ITS

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SITUATIONAL APPROACH • IT DEPENDS UPON WHAT – IN WHAT WAY • TO IDENTIFY WHICH TECHNIQUE WILL, IN PARTICULAR SITUATION, UNDER PARTICULAR CIRCUMSTANCES AND AT A PARTICULAR TIME BEST CONTRIBUTE TO THE ATTAINMENT OF GOALS. • FOR EXAMPLES: UNSKILLED WORKERS – WORK SIMPLIFICATION SKILLED WORKERS – JOB ENRICHMENT MIGHT BE EFFECTIVE. 

MANAGEMENT THOUGHT