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Evolution of Management

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15 views31 pages

Evolution of Management

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kondreddyvvssvamsikrishnareddy.211cv227
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Evolution of Management

Thought
I – Classical Approach
1. Principles of Scientific Management – Frederick Winslow Taylor

• Came in the wake of the first Industrial Revolution – Late 1700 to Late

1800

• People moved from farms to factories, small shops to large companies

• Power + Machine + Transportation = Industrial Revolution

• Replacing rules of thumb with science (Organized knowledge)

• Obtaining harmony in group action

• Achieving cooperation of human beings, rather than chaotic individualism

• Working for maximum output rather than restricted output

• Developing all workers – for benefit of individual and the company


MAX WEBER’S THEORY OF MANAGEMENT
F. W. Taylor
2. Time and motion study – Fredrick Taylor
Frank and Lillian Gilbreth

• Developed while studying the job of bricklayers


• Still in use in manufacturing plants:
– Process of determining the most efficient motions
for a given task and to determine the appropriate
elapsed time for completion of the job
Division of work
Henri Fayol
HENRI FAYOL’S MAJOR CONTRIBUTION TO MANAGEMENT
Referred to as the father of Modern management theory.
He divided industrial activities into six groups: Technical, commercial,
financial, security, accounting and managerial
He recognized the need for management
He formulated the 14 principles of management such as
authority and responsibility - Fayol suggests that
authority and responsibility are related, with the latter arising from the
former. He sees authority as a combination of official factors, deriving
from the manager’s position, and personal factors, “compounded of
intelligence, experience, moral worth, past service, etc.”
Unity of command - Employees should receive orders from
one superior only.
Scalar chain - Fayol thinks of this as a “chain of superiors”
from the highest to the lowest ranks, which, while not to be departed
from needlessly, should be short-circuited when following it scrupulously
would be detrimental.
Esprit de corps. This is the principle that “in union there is strength,” as well
as
an extension of the principle of unity of command, emphasizing the need for
teamwork and the importance of communication in obtaining it.

Fayol regarded the elements of management as the functions of


planning, organizing, commanding, coordinating, and controlling
CLASSICAL MANAGEMENT

Managers had four roles to play:


PLANNING
ORGANIZING
LEADING
CONTROLLING
COMMON ELEMENTS
II – Neo-Classical /
Behavioural Approach
1. Human Relations Approach
• Elton Mayo and Colleagues
• Studies conducted at the Hawthorne Works of
the Western Electric Co.
– Illumination experiments
– Relay assembly room experiments
– Bank Wiring Observation Room Experiment
– Mass interview Programme
2. Behavioural Science
• Behavioural science movement started after
1940.
• Drawn heavily on the work of Maslow
• Knowledge drawn from behavioural sciences
like psychology, sociology and anthropology is
applied to explain and predict human
behaviour.
• Herzberg, Vroom and D. McGregor are
the other important contributors to this field
III - Modern Management
1. Quantitative Approach
• Management science approach.
• A mixed team of specialists from relevant
disciplines are called in to analyze the problem
and offer a course of action to the
management.
• The OR (Operations Research)team presents
the management with a rational base for
making a decision.
• Use of Mathematical models and expressions.
2. Systems Approach
• Approach to managing the organization in a holistic manner.

• The goal of management is to create a synergy between the different divisions of a


company – “The whole is greater than the sum of the parts!!”

• The systems approach looks upon the management as a system as an ‘organized whole’
made up of sub-systems integrated into a unit or orderly totality.
• Department is a sub-system of the system called Organisation.
3. Contingency Approach
• Situational approach
• This approach emphasizes the fact that what
managers do in practice depends upon a give set of
circumstances (a contingency and situation).
• This approach not only takes into account only
given situation but also the influence of given
solution on behaviour pattern of an enterprise.
• The difficulty here is that there is no way to
determine all relevant situational factors and to
show their relationships
4. Managerial Roles Approach
• Based on a research by Henry Mintzberg where he observed five CEO’s of
different companies.
• He concluded that managers perform 10 major roles clustered under three
headers –
1. Interpersonal
• Figurehead
• Leader
• Liasion
2. Informational
• Monitor
• Disseminator
• Spokesperson
3. Decisional
• Entrepreneur
• Disturbance Handler
• Resource Allocator
• Negotiator
• This approach has also been criticized
• The sample size of five CEO’s is far from sufficient
• We see that managers do some work that cannot be put
under any of these headers such as fund raising, CSR,
customer relationship management etc. Nowadays, we see
many managers especially from top management very
active on social media. Example- Anand Mahindra
• Mintzberg earlier criticized Fayol’s managerial functions
theory (Planning, Leading, Organizing, Controlling) but
many of the managerial roles mentioned by him actually
belong to Fayol’s managerial functions.
5. TQM Approach
• Focuses on providing dependable, satisfying
products and services (Deming) or products or
services that are fit for use (Juran), as well as
conforming to quality requirements (Crosby).
The general concepts are continuous
improvement, attention to details, teamwork,
and quality education
6. Mc. Kinsey’s 7S framework
• Any organization wants to work towards its
strategic objectives
• Seven essential internal elements that
organizations need to align with one another
to achieve its strategic objectives.
• A change in one area drives a change in other
areas.
5. Management Process or Operational
Approach
• This approach recognizes that there is a central core of knowledge
about managing that is pertinent only to the field of management.
• Such matters as line and staff, departmentation, managerial
appraisal, and various managerial control techniques involve
concepts and theories found only in situations involving managers.
• In addition, this approach draws on and absorbs knowledge from
other fields, including systems theory, quality and reengineering
concepts, decision theory, theories of motivation and leadership,
individual and group behavior, social systems, and cooperation and
communications, as well as the application of mathematical
analyses and concepts.

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