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Chapter 2

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12 views35 pages

Chapter 2

Uploaded by

yaminis.0223
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MANAGEMENT

THOUGHTS
Evolution of Management Thought

•Classical or Traditional Theory


•Behavioral or Neo-Classical Approach
•Modern Approach
Classical Approach
Assumption :-
•Managerial Experience
•Experience frames management principles
•Education and training are must
•Universal application to management
CLASSICAL APPROACH

 Scientific Management
 Administrative Theory
 Bureaucratic Theory
Scientific Management
Concept was brought BYYYY
Fredrick Winslow Taylor,
ALSO
Known Father of scientific management.

Definition:
Scientific management means knowing exactly
what you want your men to do and seeing
that they do it in the best and the cheapest way.
Principles of scientific Management

FACT based Not Rule of

Close cooperation between Workers and Management


Set rules for division of work and responsibility
Emphasis on Maximum benefit for employees and employers
Differential Payment
 Harmony
Techniques of Scientific Management

• Scientific Work study:


• Scientific Task setting:
• Standardisation
• Selection and Training
• Differential Piece Rate system
Limitations
 Too much Production Oriented
 Based on the assumption that workers are
rational economic beings
 More applicable to Operation and Production
 Mostly applicable to operating level
Administrative Theory
Concept was brought BYYYY
Henry Fayol

Classification of Business Activities-


• Technical (Production and manufacturing)
• Commercial (Buying, selling, exchange)
•Financial (Optimum utilisation of capital)
•Security (Protection of property and persons)
•Accounting (Record keeping, costing)
•Managerial (Planning, organising, controlling)
FAYOL 14 Principle
TAYLOR VS.FAYOL
Basis Taylor Fayol
Perspective Shop floor Level Top &Middle
Management
Focus On Work Methods On general Administration

Personality Scientist Administrator

Techniques Scientific observations General principles of


used and measurement Mgmt
Thinkers Taylor. Gnnatt’ Fayol; Follet, Mooney
Associated Gilbreth
Bureaucratic Theory

Concept was Proposed BYYY


Max Weber

Characteristics :
•Hierarchy of authority
•Impersonality
•Technical competence
•Rigid Rules and Regulations
•Division of Labour
Bureaucratic Theory

Limitations :

• Lack of effective communication


• Lack of initiative
• Backed by prejudice and biases
• Rigid machine model of organisation
• Limited scope of executive development
Behavioural Approach
Based on the conviction that successful management
depends on managers ability to understand work as
well as people with different background ‘needs
values perception and personality
BEHAVIOURAL APPROACH

 Human Relation movement


 Behavioural Approach
Human Relation Movement
• Movement from simple economic man to humanistic
view
• Human organisations are psycho-social system
Human Relations Movement
• Emerged as Taylor’s Scientific Management and
Fayol”s Administrative theory did not achieve
Production efficiency along with workplace
harmony.

• Realization of “ People side/Humanization at work


place
HAWTHRONE EXPERIMENT
• No of employees – 29,000
• Conducted during 1927-1932
• Profile of the plant- Manufacture telephone
parts and equipments
• Series of experiments
1. Illumination Experiments
2. Relay Assembly Test Room
3. Interviewing Programme
4 .Bank Wiring observation room
Illumination Experiment
• Assumption – Productivity is positively
correlated with illumination
• Results of the experiment was erratic

• Setup Experimental vs. Control Group


• Post-test productivity was compared
• Findings – (Illumination affected production only
marginally)
Relay Assembly Test Room
• Objective – to know the impact of working hours, rest pauses,
their frequency, duration, and other physical conditions on
productivity

Result- No correlation found between factors P/W


It went on increasing and stabilized at a high level even if all
the improvements were taken away
• Astonishing results even the workers got surprised
Interviewing Programme

Interviewed more than 20.000 workers


Direct question were asked on type of supervision, working
condition, living condition and so on


But the answers were guarded


Thus technique was changed to non-directive type


Workers felt free regarding their favourite topic related to
work environment
BANK WIRING OBSERVATION ROOM
• 14 men making terminal of telephones
• Objective – to determine the effect of informal group
norms and formal economic incentives on productivity
• Result – Group evolved it”s own production norms
which were much more lower than those set by the
management
CONTRIBUTIONS

Organisation is not merely a techno-economic system, but it
is a social system


No correlation between improved working conditions and high
production


Workers production norm is set by group


Worker does not work for money only


Employee-centered democratic style is more effective


Informal group has a dominant role to play in organisation
BEHAVIOURAL APPROACH


McGregor

Maslow
Important Contributions

• 1. Humanising the Control System


• 2.Encouraging self direction and control
• 3.Group Decision making
• 4.Leadership
• 5.Motivation
MODERN APPROACH


Quantitative Approach


Systems Approach


Contingency Approach
QUANTITATIVE APPROACH

• Application of operation research methods/


mathematical models to simulate the problem
• Objective rationality

 Precision and perfection


 Widely used for planning and control
 But still uncommon in organising staffing and leading
SYSTEMS APPROACH
• Classical approach- Task & Structure
• Behavioural approach – People
• Quantitative Approach – Mathematical Decision- making
• ( Thus difficult to know which is most useful and appropriate
in a given situation)
• Need was to go for a broad. Detailed .conceptual framework
that can help a manager diagnose a problem and decide
which tool or combination of tools will best suit.
• System approach provides the same

• Persons associated – Bernard. Simon. Homans


SYSTEM THEORY
The environment The environment
Supplies The organization Consumes
Creates
Resource Inputs
Product Output
People
Money
Work •Finished
Material
Activities •Goods
Machine
turn •And/or
Methods
resources •services
into
outputs
Customer and client feedback

Transformation process

Organization
33
CONTINGENCY APPROACH

Management principles are not universally applicability
under all conditions


Methods and techniques that best suit one situation may
not work in other situation


Managers thus need to develop and adopt situational
sensitivity and practical selectivity ( Decision Making.
Leadership Style, Motivational Approach etc)
LEARNING ORGANISATION
Base on “The fifth discipline”

Mental Model

Personal Mastery

System Thinking

Shared Vision

Team Leaning

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