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Dev of MGT Thought

The document outlines the evolution of management thought from classical to modern approaches. It discusses scientific management pioneered by Taylor which focused on operational efficiency. It also discusses Fayol's administrative management which emphasized general management principles. Key concepts around centralization/decentralization and decision making are explained including types of decisions, guidelines for effective decision making, and individual versus group decision making approaches.

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Monu Chouhan
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33 views34 pages

Dev of MGT Thought

The document outlines the evolution of management thought from classical to modern approaches. It discusses scientific management pioneered by Taylor which focused on operational efficiency. It also discusses Fayol's administrative management which emphasized general management principles. Key concepts around centralization/decentralization and decision making are explained including types of decisions, guidelines for effective decision making, and individual versus group decision making approaches.

Uploaded by

Monu Chouhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Development of

management thoughts
Evolution of management thought
 Classical approach (1900-1930)
◦ Scientific management
◦ Administrative/ operational management
 Neoclassical approach(1930-1970)
◦ Human relations approach
◦ Social system approach
◦ Decision theory approach
◦ Management science approach
◦ Human behaviour approach
 Modern approach (1970 onwards)
◦ Systems approach
◦ Contingency approach
SCIENTIFIC MANAGEMENT
 Given by F W Taylor
 Objective –

◦ to improve the operational efficiency at


the shop-floor level
 Definition –
◦ scientific management is concerned with
knowing exactly what you want men to do
and then see in that they do it in the best
and cheapest way.
 Father of scientific management
Elements of scientific management
1. Separation of planning and doing
2. Functional foremanship
3. Job analysis
4. Standardization
5. Scientific selection and training of workers
6. Financial incentives
7. Economy
8. Mental revolution
Principles of scientific management
 Replacing rule of thumb with science
 Harmony in group action
 Cooperation
 Maximum output
 Development of workers
Critical analysis of scientific
management
To Employers:
Scientific management leads to the following benefits to
the employers:
1. efficient management of resources.
2. Proper selection and training of the workers
3. Establishment of harmonious relationship between the
workers and the management.
4. Achievement of equal division of responsibilities
between the workers and the management.
5. Scientific determination of fair work a worker can do
each day.
6. Standardisation of tools, equipment’s, materials and
work methods for increasing efficiency.
7. Better utilisation of various resources.
To Workers:
The advantages of scientific management to the
workers are listed below:
1. Detailed instructions and guidance for the
workers.
2. Opportunity for training and development to
increase skills.
3. Better working conditions and tools of work for
good health of the workers.
4. Incentive wages to the workers for higher
productivity.
5. Less fatigue in work because of application of
scientific methods and better working environment.
To Society:
Scientific management is expected to bring the
following benefits to the society in general:
1. Increased productivity in the country.
2. Better quality products at lower costs to the
people.
3. Higher standard of living of people through
better products.
4. Technological developments due to scientific
investigations.
ADMINISTRATIVE/OPERATIONAL
MANAGEMENT
 given by Henry Fayol
 Used term administration instead of

management
 3 categories of management

◦ Managerial qualities and training


◦ General principles of management
◦ Elements of management
Managerial qualities and training
 Manager requires 6 qualities
◦ Physical (health)
◦ Mental (judgement)
◦ Moral (firm, loyal)
◦ Educational (awareness)
◦ Technical (to perform)
◦ experience
General principles of management
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordinates of individual interest to general interest
7. Remuneration of personnel
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure
13. Initiative
14. Esprit de corps (union is strength)
Relevance of Fayol’s principles
 Management principles are flexible
 It requires intelligence, experience and

proportion
Contribution of Taylor and Fayol
 Similarities
◦ Solve problem in systematic way
◦ Principles to solve problem
◦ Effective management actions
◦ Managerial qualities are acquirable through training
◦ Emphasis on harmonious relationship between
management and worker
Dissimilarity
Basis Taylor Fayol
Perspective Shop-floor level Higher management
level
Focus Efficiency through Overall efficiency by
work simplification observing certain
and standardization principles
Orientation Production and Managerial functions
engineering
Results Scientific observation Personal experience
and measurement translated into
universal truths
Overall contribution Basis for Systematic theory of
accomplishment on management
the production line
CENTRALIZATION AND
DECENTRALIZATION
 Centralization refers to concentration of
authority and decentralization dispersion of
authority.
Difference between delegation and
decentralization
Basis Delegation Decentralization
Status Process of Result of
authorizing widespread
subordinates delegation
Nature Compulsory as Optional, depends
minimum authority on organizational
delegation being policy
must
Purpose To reduce burden of Giving autonomy to
superiors organizational
personnel
Freedom of action Less freedom to More freedom to
subordinates subordinates
Factors determining degree of
decentralization
 Size of organization
 History of organization
 Management philosophy
 Availability of managers
 Pattern of planning
 Control techniques
 Decentralized activities
 Rate of change in organization
 Environmental influences
Benefits of centralization
 Provides opportunity for personal leadership
 It facilitates integration of efforts
 Quick decisions are possible
 Emergencies can handled easily
 Easier communication and control
 Reduce wastage
 Avoid duplication of work
 Uniformity in action
 Ease in coordination
Limitation of centralization
 Not suitable for large organizations
 Make decision making complex
 Delay in decision making
Benefits of decentralization
 Reduce burden of top management
 Top management can focus of strategies
 Facilitates growth and diversification
 Motivate managers
 Development of managerial skills
 Reduce number of management level and

increase span of management


 Expected outcome is clearly defined
Limitation of decentralization
 Absence of proper control
 Increase cost due to autonomous facilities
 Requires experienced and trained managers
 Requires high degree of self management

and self control


Making decentralization effective
 Centralized top policy and control
 Appreciation of concept of decentralization
 Development of managers
 Competition among units
DECISION MAKING
 Decision is choice of a desirable alternative
 Decision making is process by which an

individual selects one alternative from all


alternatives
 It involves 3 aspects of human behaviour

◦ Cognition – activities of mind associated with


knowledge
◦ Conation – willing, desire, aversion
◦ Affectation – emotion, feeling, mood,
termperament
Types of decisions
 Programmed and non-programmed decisions
◦ Programmed
 Routine and repetitive
 Made at lower level of management
 Comparatively easy
 Affected by internal environment
 E.g. - Promotion of employees
◦ Non-programmed
 Unique/ unusual problem
 Various alternatives are suggested
 Affected by various factors
 Readymade solution is not available
 Long term consequences
 High importance
 E.g. – action for growth of organization
Strategic and tactical decision
 Strategic decision
◦ Major action plan
◦ Concerns allocation of resources
◦ Contributes to achievement of organizational
objective
◦ 3 elements
 Course of action plan
 Desired result or objective
 Commitment
◦ Non-programmed decisions
◦ E.g. – change in product mix, expansion of business,
change in policies
 Tactical decision
◦ Relates to day to day operation
◦ Repetitive and frequent
◦ Mostly programmed one
◦ Decision based on policies
◦ Consequences are short term
◦ Taken by lower level management
◦ E.g.- purchase of raw material, assigning duty to
employees
Decision making process
 Specific objective
 Problem identification
 Search for alternatives
 Evaluation of alternatives
 Choice of alternatives
 Action
 Result
Effective decision
 Action orientation
 Goal directed
 Efficiency in implementation
Guidelines for making effective
decision
 Categorical interpretation
 Application of limiting factor
 Adequate information
 Considering others view
 Timeliness
Individual v/s group decision making
 Nature of problem
 Time availability
 Quality of decision
 Climate of decision making
 Legal requirement
Techniques for improving group
decision making
 Brainstorming
 Nominal group technique
 Delphi technique
 Consensus mapping
Positive aspects of group decision
making
 Pooling of knowledge and information
 Satisfaction and commitment
 Personnel development
 More risk taking
Negative aspects of group decision
making
 Time consuming and costly
 Individual domination
 Problem of responsibility
 Group think – reaching agreement

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