Evolution of Management2

8/11/2019 Evolution of Management2

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EVOLUTION OF

MANAGEMENT

THOUGHTS


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Management practice is as old as human civilization when people started living

togetherin groups. For, every human group requires management and the history ofhuman beings is full of organizational activities. In the earlier years, management

concept were applied was held low, unworthy of study; indifferent approach of

other social scientists like economist, sociologist, psychologist, etc., towards

management and business organizations treatment of management as an art not as a

science and commonly held belief that managers are born not made.

The situation changing with the beginning of the 20thcentury; specially theworld war 1stcreated the situation where people started thinking of solution to the

problem of how limited resources could be applied in better way. The world war 2nd

added further problem to this end.

In recent years, there has been worldwide rivalry for markets, power & progress.The increasing serve competition has come from such factors as: technological

innovations, increase in capital investment, increased government regulation,

organised union activities to put pressure on management.


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APPROACHES

CLASSICAL -

scientific management & administrative management.

NEOCLASSICAL -humanatarian approach.

MODERN-

system approach & contingency approach.


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CLASSICAL- Something traditionallyaccepted or long-etablished

But classical views are not static and time bound.


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Interrelated functions

Guiding principles

Beaurocratic structure


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Worked at Midvale & Bethlehen Steel Companys

in Pennyslvania

Was disgusted to see the inefficiency of workers

Applied scientific method to workers on the shop

floor

Emphasized one best way philosophy

Experimented with various physical positions- eg;walking speed, carrying positions, leg positions etc.

Thus, found out one best way to perform the task


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Thus Taylor achieved signif icant

improvements in productivity

Wrote two books- Shop Management

The Principles of Scienti f ic

management


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Each task must be scientifically

designed so that it can replace the old,

rule- ofthumb methods

Workers must be scientifically selected

& trained so that they can be more

productive on their jobs There must be division of labor and

cooperation between management and

workers


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Science, not rule of thumb

Harmony, not discord

Cooperation, not individualism

Maximum output in place of restricted output Development of each man to his greatest

efficiency and prosperity

Equitable division of work and responsibility

between management and labor


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1. Scientific task planning-The amount of work whichan average worker can perform during a day undernormal working conditions- called as a fair days work

2. Time & Motion Studies-

Time- Time standard is the period of time that an averageworker should take to do a job

Motion- Under Motion studies finger movements, handmovements, arm movements, and shoulder movements

are studied.Managers are charged with the task of planning the work

through the above studies and workers are expected toimplement the same.


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3. Standardization-

Under scientific management standards have to be set

in advance for the task , materials, work methods,

quality, time & cost, working conditions etc

4.Diffrential Piece Rate System-

A worker who completes the normal work gets wages

at higher rate per piece than a worker who fails to

complete the same within the time limit set bymanagement.

This is done to motivate workers.


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5. Functional foremanship-

Factories divided into several components , each

incharge of a specialist. The workers are expected to

implement the commands of functional specialists.

Drucker calls this principles as an undemocratic one.


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Exploitative Device Depersonalized work

Unpsychological

Undemocratic

Anti social

Unoriginal- Hoagland and others felt thatTaylors contributions is overrated and over

emphasised. Unrealistic- He ignored the social and ego

needs of people.


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He was the contemporary of Taylor Revolutionized managerial thinking in France

Was trained as a mining engineer, made hismarg as an industrialist with the French coaland iron combine of Comentry-Fourchambault

in 1988 the company he joined, had been

near bankruptcy, transformed it into afinancially strong organization


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Administrative theory explains the

process of managing an organization

from the top managerial perspective

Considered as founder of the classical

management school


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Classified business operations into sixmajor activities-

Technical(production)

Commercial(buying and selling)Financial(use of capital)

Security(protection of property)

Accounting(keeping financial records)Managerial


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Planning

Organizing

Commanding Coordination

Controlling


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Division of work

Authority and responsibility

Discipline

Unity of command

Unity Of Direction

Subordination of individual interest to

the common good

Remuneration of personnel

Order-

a place for everything and everything in itsplace and a place for everyone and everyone in hisplace


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Physical Mental

Moral

Educational Technical

Experience


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During 1920s and 1930s observers startedcriticizing administrative managementmovement and scientific approach

Scientific approach focused on the activitiesof workers whereas administrative approachfocused attention on the activities ofmanagers

Social aspects of a workers job were totally

ignored.


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Thus the Human Relations Theory, alsocalled Neo-Classical Theory came into being

The theory is based on the famous studies ofhuman behavior in work situations conductedat the Western Electric Company from 1924-1933

These studies are known as Hawthorne

Studies

conducted at Western ElectricsHawthorn plant near Shikogo.


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Purpose was to determine the effects ofdifferent levels of illumination on workersproductivity

Test Group- Light systematically varied

Control Group- Light held constant Result- With increase in light productivity

increased in test groupBut productivity also increased in the control

group which receive no added lightThus something else was responsible forincreased productiviy.


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Mayo initiated three year long interviewprogram in1928 covering more than 21000employees

Employee were left free to air their opinion

The point illustrated by this interviewingprogram is central to the Human RelationsMovement

social factors were found to be prominentthan the economic factor


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Focus on people, groups Make workers happy Man wants company, loves interaction and is

guided by group goals Inputs drawn from behavioral sciences Groups dominate, individuals, follow, group

norms irrespective of what managementstates

Mayo emphasised friendly supervision andmonitoring of group norms so as to provide apositive work climate


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This approach applies the knowledge of thebehavioural sciences- psychology, sociologyand anthropology- to managing people

Abraham Maslow Need Hierarchy Approach

Five basic needs- Physiological, safety, social,self-esteem and Self-actualization


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This approach attempts to view theorganization as a single unified, purposefulentity composed of interrelated parts

A system view of management , eg; would

recognize that, regardless of how efficient theproduction department might be, if themarketing department does not anticipatechanges in consumer taste and work with the

product development department in creatingwhat consumers want, the organizationsperformance will be hampered


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This approach states that appropriatemanagerial action depends on the particularparameters of the situations.

Situations dictate managerial action

Therefore no single way of solving problems isbest for all situations.

The choice of a particular method of managing

largely depends on the nature of the job, thepeople involved and the situations.


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Features-

Themanagerial action are contingent oncertain actions outside the system orsubsystems.

Organizational efforts should be based onthe behavior of actions outside the system sothat the organization gets smoothly

integrated with the environment. Managerial actions and organizational design

must be appropriate to the giving situation.

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Evolution of Management2