PERSPECTIVES IN MANAGEMENT

LECTURE BY:
SANTOSH SHARMA
 Development of Management
Thought
 Management in antiquity[ Ancient]

 Early Management approaches(1750 - 1950)

 Modern Management approaches(Post - 1950)

MANAGEMENT IN ANTIQUITY
D Greeks

C Babylonians G Venetians

B Egyptians E Romans

A Sumerians F Chinese

3000 B.C. 2500 B.C. 2000 B.C. 1500 B.C. 1000 B.C. 500 B.C. A.D.500 A.D.1000 A.D.1500

A Used written rules and regulations for governance E Used organized structure for communication and control

B Used management practices to construct pyramids F Used extensive organization structure for government
agencies and the arts
C Used extensive set of laws and policies for governance
G Used organization design and planning concepts to
D Used different governing systems for cities and state
control the seas
 Management in
 Egypt Antiquity
 Egyptians planned, organized and managed
thousands of
workers to build pyramids.
 China
 ‘The Great Wall of China’ is a proof of organization.

 Sun Tzu – ‘The Art of War’ {Early Management Thoughts}

 India
 ‘Artha Shastra’ written by Kautilya deals with trade,

commerce, law and order, taxation and revenue, war and

military strategies etc.
 Greece

 Greek philosopher Socrates defined management as

skill separate from technical knowledge and
experience.
 Rome

 The Roman Catholic Church was an organization with well

defined structure and hierarchy.

 First managers evolved were in Rome where people were

hand picked and trained by the Roman Govt. to accomplish

much of its work
 Early Management
Approaches
i. Effect of Industrial Revolution

ii. Evolution of Scientific Management

iii. Contribution of pioneers like

a) F W Taylor

b) Henri Fayol

c) Frank and Lilian Gilberth

d) Max Weber
i. Effect of Industrial
Revolution
Prior to industrial revolution era, ‘Cottage
Industry Dominated’
James Hargreaves – Spinning Jenny, 1770 {First Machine
to Spin Yarn}
 Richard Arkwright – Water Frame, 1771

 Samuel Crompton – Mule, 1779

 Edmund Cartwright – Power Loon, 1785

 James Watt – Steam Engine

 Essence of Industrial Revolution

 Transfer of skill from worker to machine

 Creation of Machine

Few Individuals took charge of large group in order to

manage and coordinate the efforts of group members –

Industrial Management
ii. Evolution of Scientific
Management
 Science, not rule of thumb.

 Harmony, not discord.

 Cooperation, not individualism.

 Maximum output, not restricted output.

 Specialization, not generalization.

 Evolution of Management
 Early classical approaches
 Scientific approach

 Administrative management and bureaucracy

 Neo-classical approaches
 Human relations movement and behavioral approach

 Modern approaches
 Represented by quantitative approach, systems
approach and contingency approach
The Evolution of Management
Theory
A. SCIENTIFIC MANAGEMENT THEORY
• Prominent contributors of scientific management theory were Frederick W.
Taylor, Frank & Lillian Gilbert and Henry Gantt
• F.W. Taylor (1856-1915) was the greatest contributor and played the
dominant role

F.W.Taylor’s Scientific Management Theory

• F.W Taylor known as the “Father of Scientific Management”
• Worked at the Midvale steel company, Philadelphia and Bethlehem Steel
company, Pennsylvania
• Observed (in these companies) that production & pay were poor, inefficiency
existed, wastage was high, workers put into job without matching their abilities
and the workers used different techniques to perform the same work
• Realized that work efficiency was low due to lack of order and system
• Led him to come out with “The principle of scientific management” in
1911 A.D. in which the explained the principles of scientific management
• Emphasized one best method of doing work to increase efficiency &
productivity
TAYLORS PRINCIPLES OF SCIENTIFIC MANAGEMENT
 Standardization
• Referring to the speed & rate at which work should be done
• Using standard & right equipments and tools for the jobs
• Development of true science of doing work by studying the
nature of work and replacing rule of thumb
 Time and Task study
• Required to determine one best method of doing work
 Systematic Selection & Training
• Scientific selection of employees and providing proper training
and developing them to undertake the task assigned
• Not letting workers choose the work but rather placing them on
the right work
• Right man on the right job
TAYLORS PRINCIPLES OF SCIENTIFIC MANAGEMENT
 Pay Incentives
• Referring to the increment in the payroll in accordance with the
amount of work done in order to increase productivity (paid
according to piece produced)
• Employees motivated by economic incentives
• Greater pay for greater output and vice versa

 Cooperation between managers and operatives

• Referring to harmony between the employer and employee to
accomplish work by dividing the work scientifically and
systematically.
• Managers involved in planning the work, determining the
working procedure, time of doing work etc & supervising the
employees
• Work has to be planned by foreman and not by worker
• A mental revolution to be created by establishing understanding
between employer and employees
CONTRIBUTION OF F.W. TAYLOR
 Separation of Planning from Doing

 Functional Organization
 Workshop should be organized on the basis of workers Specialization (Specialization not
Generalization)

 Analysis of Jobs
 Time Study – Breaking a job into elements and then studying the time required to complete each of
these elements.
 Careful Selection and Systematic Training

 Differential Piece-Rate Plan

 ‘More work, more Pay’ motto

 More efficient worker got a higher wage rate and a less
efficient worker got a lower wage

 Standardization of Tools and Equipment's

Note: Taylor wrote two books – ‘Shop Management (1903)’ and ‘Principles of Scientific Management (1911)’
F.W. TAYLOR’s FOLLOWERS
1. Henry Gantt
• One of the followers of F.W. Taylor
• A mechanical engineer who worked as a close associate of Taylor
at the Midvale steel company
• Replaced Taylor’s differential piece rate system by combining a
guaranteed day rate (minimum wage) with an above standard
bonus
• However, known for originating a Graphic chart (Gantt Chart) as
a scheduling device for planning & controlling work & this is his
contribution to scientific management
• Emphasized on the recognition of human factor and service
rather than profits
F.W. TAYLOR’s FOLLOWERS
2.Frank and Lillian Gilbreth
• A team of husband and wife
• Frank a construction contractor and Lillian psychologist who too followed
Taylor’s footsteps
• Used motion pictures to study hand and body motion by use of micro
chronometer that recorded the time to determine the time spent on
motion in doing a task
• Conducted motion and fatigue study with the (help of) brick layering
experiment
• Suggested economical motion (decrease unnecessary motions) to
upgrade performance of each individual
• Developed performance efficiency techniques (scientific training,
selection & development)
• Improved working conditions by redesigning various machines & tools to fit
people thereby reducing fatigue
LIMITATIONS OF SCIENTIFIC MANAGEMENT THEORY
• Viewed worker as unidimensional beings interested in more
money and motivated them i.e. Men were considered as
machine.
• Assumed that environment of organizations were predictable, stable
& simple which is not realistic.
• Focuses on production, ignoring other sectors of management
• No one best way of doing work
2. ADMINISTRATIVE MANAGEMENT THEORY
 Also referred to as the universalist or functional approach
 Focuses on the management of total organizations effectively;
especially larger organizations
 assumes that management process remains the same across all
organizations
 Prominent administrative theorists are Henri Fayol and Max
Weber
 Henri Fayol (1841-1925) is considered as the realFather of
Modern Management Theory.
 Henri Fayol published a book – ‘General and Industrial
Administration (1915)’.
 He was a mining engineer in a coal mining company in France and
then became a manager.
 A. PRINCIPLES OF ADMINISTRATIVE MANAGEMENT

Division of Work: People work best when

they specialize.
Authority and Responsibility: Managers have authority for

work (Getting the work done through others)

Discipline: Good discipline is essential and the
responsibility of managers. Consists of obedience and
respect
Unity of Command: Every employee should have
one superior who is responsible for their work.
 Unity of Direction: There should be one manager in charge of
each group of organizational activities and they should work to
one plan.
 Subordination of Individual Interest to General Interest: The
interests of the organization as a whole come before the
interests of employees.
 Remunerations: Fair remunerations to be paid.

 Centralization: Managers have to decide the degree of

involvement of subordinates in decision-taking depending on
the task .
 Scalar Chain: (Hierarchy of Authority for Communication)
Communications should be from top down unless this causes
delays when a form of cross-communications can be agreed by
all involved.
 Order: People and materials should be in the right place at
the
right time.
 Equity: Managers should be kind and fair to their
subordinates.
 Stability of tenure of personnel: There should be stability in
employee turnover and replacements.
 Initiative: Employees who are allowed to originate and carry out plans will
exert high levels of effort.

 Team spirit (Esprit de Corps): Managers should promote team spirit in order
to create harmony and unity in the organization.

B. FUNCTIONS OF MANAGEMENT
Emphasized that all managers must perform functions as:
1. Planning
Managers forecasting the events and developing an operating plan to guide
future decisions
2. Organizing
Determining appropriate combination of resources (machine, material and
human) to accomplish task.
3. Commanding
Directing the activities of subordinates through two-way communication
4. Coordinating
Arranging and integrating group efforts towards unity of action
5. Controlling
Ensuring actual activities are according to the plan set
C. NATURE OF ACTIVITIES
Activities to be accomplished in industrial organizations:
1. Technical:
activities concerned with production.
2. Commercial:
activities like buying, selling and exchange functions.
3. Financial:
obtaining capital and optimum utilization of capital
4. Security:
protection of persons and property.
5. Accounting:
financial transactions recording.
6. Managerial:
activities of management like planning, organizing, commanding
and controlling
CONTRIBUTIONS OF MAX WEBER

 Max Weber – German Sociologist – Father of Bureaucracy

 Categories of organizations:

 Leader Oriented – no delegation of management activities,

employees serve as loyal subject of a leader.

 Tradition Oriented – Managerial positions are
handled down from generation to generation.
 Bureaucratic – delegation of management
responsibilities based on individuals ability to hold
position.
FEATURES OF BUREAUCRATIC ADMINISTRATION
 Formal Rules and Regulations:
 Insistence on following standard rules.

 Specialization:

 Simple, Well Defined and Routine Tasks

 Authority Hierarchy

 Principle of hierarchy
 Formal Selection:
 Individuals should have knowledge and training
in the application rules

 Impersonality:

 Administrative acts, decisions, rules are recorded in writing

 Career Orientation:
 Rational Personnel Administration – Merit based selection and are paid according to
hierarchy.
 Dysfunctional Consequences of
Bureaucracy
 Over conformity to rules
 Buck-passing (“stick to rule”) – independency of
decision
making
 Categorization of queries in advance

 Displacement of goals

 No real right of appeal – client feel dissatisfied

 Neglect of informal groups – group dynamics

 Right structure

 Inability to satisfy the needs of mature individuals

HUMAN RELATIONS & BEHAVIOURAL APPROACH TO
MANAGEMENT
Emphasizes individual attitudes and behaviours, and group processes, and recognized the importance of
behavioural processes in the workplace
A. HUMAN RELATIONS APPROACH
 Focusses on the value individuals within an organization
 Brought into attention by:

The Hawthorne Studies (1927–1932)

• Conducted by Elton Mayo(1880-1949) and associates from Harvard University at the Hawthorne plant
of the Western Electric Co. by conduction four sets of testing conditions:
 Illumination Programme
 Experiment carried out to study the relationship between the intensity of light and
productivity over a selected group of employees
 result showed illumination did not affect output
 Relay Assembly Room Programme
 Manipulation of physical surroundings to study the effect on productivity
 working conditions changed to observe its effect on productivity
 concluded that team feeling, recognition and social settings important for higher
productivity
THE HAWTHORNE STUDIES (1927–1932) CONTD…
 Mass Interviewing Programme
 20,000 workers interviewed to find out factors
responsible for human behavior at work
 social relations and interrelationship among
employees influenced the group to enhance
performance
 Bank Wiring Observation Room Programme
 to find out the functioning of small groups
over individuals
 importance of informal group highlighted that set
their norms and protect the employees or
workers
A.THE HAWTHORNE STUDIES (1927–1932) (CONTD.)
The Hawthorne Studies’ conclusion:
• Productivity was much affected by the attitudes of the worker
(Relationship between members of a work group and between
members and their supervisors) rather than working condition and
incentive plan (like hours of work, wage incentives, etc.)
• The informal work group formed at the work places,
determined the worker behavior by setting the group norms,
standard worker output, hierarchy of member, creating group
security and group sentiments, thereby exercising strong control
over the behavior of the workers
• Emphasized more on humanistic and realistic view of social man
from economic man
• Social, psychological and physiological factors played a dominant
and significant role in the functioning of the organization in
achieving their goals, since it provided the members the feeling of
acceptance and dignity and satisfied employees
BEHAVIOURAL APPROACH TO MANAGEMENT
• Emerged during the 1950s
• Hyped by Abraham Maslow, Douglas McGregor and Frederic
Herzberg
• Highlighted the role of understanding human need and
behavior for organizational success
A. ABRAHAM MASLOW
• Advanced a theory that employees are motivated by a
hierarchy of needs that they seek to satisfy
• Unlimited needs – when one need is fulfilled, another
arises
• Unfulfilled needs creates anxiety which leads to motivation
• A single approach cannot be used to motivate all workers
towards organizational goals
A. ABRAHAM MASLOW HIERARCHY OF NEEDS

Theory of Needs/ Hierarchy of Needs

B. DAUGLAS MCGREGOR’s THEORY X AND Y
• Highlighted two different sets employees attitude at workplace
C. FREDERICK HERZBERG’s TWO FACTOR THEORY
• Hygiene Factors = Dissatisfaction vs no Dissatisfaction
• Motivation Factors = No satisfaction vs Satisfaction
BEHAVIORAL APPROACH TO MANAGEMENT:
CONTRIBUTIONS & LIMITATIONS
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
– 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 APPROACH TO MANAGEMENT
• Developed during World War II
• Mathematicians, Physicists, and Other Scientists
helped in war techniques
• Quantitative approach to management involves use of
quantitative techniques like:
– Statistics
– Information models
– Computer simulations etc.
– Can be categorized as:
A. MANAGEMENT SCIENCE
B. OPERATIONS MANAGEMENT
A. MANAGEMENT SCIENCE
• Also known as mathematical model
• Emphasis on application of mathematics and statistics for
decision making and problem solving
• Widely used in areas of planning, production, operations,
inventory, transportation etc.

Techniques of Management Science:

• Linear Programming:
• Game Theory:
• Sampling Theory
• Probability Theory
• Simulation etc.
B. OPERATIONS MANAGEMENT
• Concerned with managing the process of converting the
inputs (raw-materials) into outputs (finished products)
• Used to utilize an organization’s production system to
increase efficiency
• Concerned with quality, customer service and competition

Techniques of Operations Management:

• Quality Control
• Total Quality Management
• Just In Time Technique
• Six sigma etc.
QUANTITATIVE APROACH TO MANAGEMENT:
CONTRIBUTIONS & LIMITATIONS
CONTRIBUTIONS
– Developed sophisticated quantitative techniques to assist in decision
making
– Application of models has increased our awareness and understanding of
complex processes and situations
– Has been useful in the planning and controlling processes.

LIMITATIONS
– Quantitative management cannot fully explain or predict the behavior of
people in organizations.
– Mathematical sophistication may come at the expense of other
managerial skills.
– Quantitative models may require unrealistic or unfounded assumptions,
limiting their general applicability
INTEGRATION PERSPECTIVE TO MANAGEMENT
- Emerged as a result of fragmented approach used in
earlier approaches to management
- It viewed an organization as a whole system along
with its relationship with external world
- Can be studied adopting two perspective
A. Systems Perspective
B. Contingency Perspective
A. SYSTEMS PERSPECTIVE
• A system is a set of inter-related and inter- dependent parts, arranged in
such a way that produces a unified whole
• Organization as a system strives for achieving desired goals
 KEY ELEMENTS OF A SYSTEM

GOAL ORIENTATION • Strives for goal achievement

SUB SYSTEMS • Supporting Systems which are interactive and supportive

OPEN AND CLOSED • Closed system is self sufficient entity

SYSTEMS • Open system is interactive with environment

SYNERGY • Whole is greater than the sum of its parts: 2+2=5

• Rigid boundary in a closed system; Flexible boundary in an

SYSTEM BOUNDARY
open system
FLOW OF • Information is converted into opportunities and actions
INFORMATION

FEEDBACK • reactions to a product, a person's performance of a task,

etc.. used as a basis for improvement
SYSTEMS PERSPECTIVE: CONTRIBUTIONS & LIMITATIONS
CONTRIBUTIONS:
• Values the role of internal and external environment
• Views organizations as a whole system instead of fragmented
approach
• Values feedback as a basis for improvement

LIMITATIONS:
• Lack of focus on managerial expertise
• Does not provide tools and techniques for improving
managerial efficiency
• Does not specify the nature of relationship between
subsystems and environment
B. CONTINGENCY PERSPECTIVE
 Developed in 1960s by scholars namely Tom Burns, G. M.
Stalker, Paul Lawrence and Jay Lorsch
 Also called situational/perspective/particularist approach to
management
 Challenges universal application of management principles i.e.
no one best way to do things
 Emphasizes variable application of management concepts,
principles, tools and techniques across various situations
along with diverse results
 Highlights the role of organizations size, technology,
environment, scope, management expertise, orientation in
practicing contingency approach
CONTINGENCY PERSPECTIVE:
CONTRIBUTIONS & LIMITATIONS
CONTRIBUTIONS
 Emphasizes contextual role in executing management
functions
 Highlights diverse applicability of management principles

 LIMITATIONS
 Lack of identification of contingency variables fully
 Makes execution of managerial function more complex and
challenging
 May not be applicable in all forms of organizations
 EMERGING MANAGEMENT CONCEPT

WORKFORCE DIVERSITY OUTSOURCING

• Refers to heterogeneity of manpower in terms • Questions inhouse operations of every business
of gender, sex orientation, culture, nationality, activities
minorities, religion etc. • Contracting of some inhouse operations to
• Enhanced by globalization and presence of external parties
MNEs • Addresses financial concerns along with lack of
• Emphasizes management need towards cross expertise in few areas
cultural sensitivity, emotional intelligence, • Provides opportunity for management to focus
interpersonal and communication skills on primary and crucial issues by outsourcing
• Extremely rewarding and challenging in terms secondary activities
of conflict, benefits etc. • Highly effective for gaining foreign exposure
business expansion
• May lead to impersonal relationship with some
stakeholders along with problem of
overreliance and delayed project execution
 EMERGING MANAGEMENT CONCEPT
Globaliazation

KNOWLEDGE MANAGEMENT LEARNING ORGANIZATION

• Highlights need of organizations • Refers to organizations on the move
towards updating business i.e. continually learning, adapting
knowledge and changing
• Managers should strive to find new • Refers to knowledgeable workforce
methods of working who want to learn, share their
• Need of business to expand and learnings for organizational benefit
utilize its members knowledge base • Need to distinguish adaptive learning
• Based on conversion of human i.e. vs generative learning
knowledge into profit • Should focus on thinking,
communicating and cooperating to
make optimum use of learning

Technological Development Change Management