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Principles of Managemnet

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52 views45 pages

Principles of Managemnet

Uploaded by

shushantsonwani416
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Evolution of management thought

Evolution of Management Theories

1.The Classical theory of management


Scientific Management
•Bureaucratic Management
•Administrative Management
2.Neo-Classical Theory
•Human Relations
•Behavioral Science Approach
3.The Modern Management Theories
•Quantitative Approach
•System Approach
•Contingency Approach
•Operational Approach
Early approaches to Management

The Industrial Revolution, which began


in Europe in the mid-1700s, was the
starting point for the development of
management concepts and theories.
Classical Approach
Classical management can be divided into
three separate schools:-

Scientific management – F.W. Taylor

Administrative theory – Henry Fayol

Bureaucratic management – Max Weber


Overview of classical theories
Approach Rationale Focus

Scientific One best way to do Job level


management each job

Administrative One best way to put Organizati


principles an organization onal level
together
Bureaucratic Rational and Organizati
organization impersonal onal level
organizational
arrangements
Classical Approach

These views are labeled as classical


because they form the foundation for the
field of management thought.
Scientific management

Itis an approach that emphasizes the


scientific study of work methods to
improve the efficiency of workers.

It became popular in 1900s.


Scientific management

F.W. Taylor was known as the ‘father of


scientific management.’

Midvale Steel Co.

Soldiering

To counter the soldiering problem Taylor


developed the science of Management.
Four Principles of Scientific
Management
1) Study the ways jobs are performed now and
determine new ways to do them.
 Gather detailed time and motion information.
 Try different methods to see which is best.

BnR-Peng.Manajemen-Chap-05 12
Four Principles of Scientific
Management
2) Codify the new methods into rules.
 Teach to all workers
the new method.

BnR-Peng.Manajemen-Chap-05 13
Four Principles of Scientific
Management
3) Select workers whose skills match the
rules.
4) Establish fair levels of performance and
pay a premium for higher performance.
 Workers should benefit from higher output

BnR-Peng.Manajemen-Chap-05 14
F.W.Tayler’s Contribution(1856-1915)

Father of Scientific Management


Principles of F.W.Tayler’s Management
•Scientific task setting based on time, motion and fatigue study.
•Fitting the “right person for the right job” by proper selection, training
and placement of personnel.
•Improvement in work by
 Standardisation of tools and equipment
Improvement in work environment
• Employers and employees should not feel that they are
exploiting each other(Mental revolution)
• Differential piece rate wage system to distinguish between
efficient and inefficient workers( Tayler’s Differential
Piece Rate Plan)
• Intelligent investigation and analysis of the different unit of
the business.
• Scientific study of each unit of the business.
• Separation of the planning and execution based on
specialisation.
Frank and Lillian Gilbreth

•He concentrated on Motion Study and suggested the


first definition-“motion study as the science of
eliminating wastefulness resulting from unnecessary, ill
directed and inefficient motions”
•He developed Process Chart-Over all picture of all
activities in a chart form.

BnR-Peng.Manajemen-Chap-05 17
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.
Contributions of Henry L.Gantt
Worked with F.W.Tayler
He Improved Taylor’s differential piece
rate system
Task and Bonus Plan ((Provide extra
wages for extra work)
He developed the daily balance chart
(Gantt chart) output in one axis and
time on the other axis.
Humanistic approach and industrial
responsibility.
SCIENTIFIC MANAGEMENT
•F.W.Tayler- Father of Scientific Management
•Main contributors- F.W.Tayler, Frank Gilbreths,
Gantt
Principles of Scientific Management
 Replacement of old rule of thumb method
Scientific selection and training
Labor-Management co-operation(mental revolution)
Maximum output
Equal division of responsibility
Techniques of Scientific Management
•Scientific task setting-fair day’s work
•Work study-method, time, fatigue and motion study
•Planning the task
•Standardisation
•Scientific selection and training
•Differential piece-wage plan
•Specialisation
Scientific management

The two major managerial practices that


emerged from Taylor’s approach :-

Piece-rate incentive system

Time-and-motion study
Criticism of Scientific Management
•Functional organization structure (An operator is controlled by
eight foremen)– In practice and violates unity of command.
•It concentrated on production management and ignores the area
of Finance, Marketing, Accounting and Personnel.
•Workers objected Tayler’s Differential piece wage plan
•because wages of workers are not increased in direct proportion
to the increase in productivity.
•It undermined the human factor in industry. It resulted in
monotony of job, loss of initiative, wage reductions, job insecurity
etc.
Limitations of scientific management
Scientific management focus on problems
at operational level.

People are motivated only by material


gains.

Itignored human desire for job


satisfaction.
Administrative Theory
Itfocused on principles that could be used
by managers to coordinate internal
activities of organization.

Henry Fayol – French

According to Fayol, the business


operations of an organization could be
divided into 6 activities
Administrative Theory
The 6 activities are :-
Technical
Commercial
Financial
Security
Accounting
Managerial
Fayol’s 14 principles of Management
Division of work
Authority and responsibility
Discipline
Unity of command
Unity of direction
Subordination of the individual interest to
the general interest.
Fayol’s 14 principles of Management
Remuneration
Centralization
Scalar chain
Order
Equity
Stability of tenure of personnel
Initiative
Espirit de corps
Bureaucratic Management
Max Weber

Major characteristics of Bureaucracy


Hierarchy of organization
Work specialisation and division of
labour
Formal Selection
Carrer Orientation
Rules and regulations

Limitations of bureaucratic and
administrative management
Not universally accepted principles.

Bureaucracy destroyed individual


creativity and flexibility.

Important aspects of O.B. was ignored.

External and internal environment


ignored.
Behavioral Approach

The behavioural school of management


emphasized what the classical theorists
ignores – The human element.
Elton Mayo : Focusing on Human
Relations

Father of the Human Relations Approach

Western Electric’s Hawthorne Plant


Elton Mayo : Focusing on Human
Relations
The experiments were conducted in four
phases:
Illumination experiment
Relay assembly test room experiment
Interview phase
Bank wiring observation room
experiment
Contributions of Hawthorne studies

The group is the key factor in job


performance

Perceived meaning and importance of the


work determine output

Workplace culture sets its own production


standards
Criticism of Hawthorne studies
Criticsfelt that the conclusions were
supported by little evidence.

The relationship made between


satisfaction of workers and productivity
was too simple.

The studies failed to focus on the atitudes


if employees.
Abraham Maslow : Hierarchy of needs
People are motivated by a hierarchy of
needs

His theory had three assumptions


All of us have needs which are never
fulfilled
Through our actions we try to fulfill our
unsatisfied needs
Needs can be classified into 5 types
Abraham Maslow : Hierarchy of needs
According to Maslow, once needs at a
specific level have been satisfied, they no
longer act as motivators of behaviour.

Then individual strives to fulfill needs at


the next level.
Douglas McGregor : Theory X and
Theory Y
These theories reflect two extreme sets of
belief that different managers have about
their workers.

Theory X represents an essentially


negative view.

Theory Y reflects a more positive view.


Chris Argris : Matching human and
organizational development

Maturity –immaturity theory

Model I and Model II

Model I – Employees are manipulative


and not willing to take risks
Quantitative approach
1.Management science
Another name for it is operations research

2. Operations management

3. Management information systems


Modern approaches to management
1. Systems approach
Organizations cannot exist in isolation
Four major components – Inputs,
transformation process, output and
feedback

Open and closed systems


Modern approaches to management

2. Contingency theory


Situational theory
Emerging Approaches in Management Thoughts
William Ouchi – theory Z

Conducted research on both American and


Japanese management approaches

TheoryZ involves providing job security to


employees to ensure their loyalty

Quality management

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