Evolution of Managment Thought1 (1)

8/10/2019 Evolution of Managment Thought1 (1)

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His to ry an dEv o lu t io n o fManagement

Though t


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Early Approaches to managementThe industrial revolution, which began in Europe inthe mid-1700s. Was the starting point for thedevelopment of management concepts andtheories.

Causes:

Rapid growth in the number of Factories during thisperiod

Need to coordinate the efforts of large number ofpeople in the production process


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Major Classification of Management Approaches Major Contributors

Classical approach Scientific management Frederick W . Taylor, Frankand Lillian Gilbreth and HenryGantt

Bureaucratic management Max Weber

Administrative management Henri Fayol

Behavioral approach Group influences Many Parker Follet

Hawthorne studies Elton Mayo

Maslows needs theory Abraham Maslow

Theory X and Theory Y Douglas McGregor

Model I versus Model II value Chris Argyris

Quantitative approach Management science -

Operations management -

Management information system -

Modern approaches The Systems Theory -

Contingency Theory -

Emerging approaches: Theory Z and Qualitymanagement William Ouchi

Major Classification of Management Approaches


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Approach Rationale Focus

Scientificmanagement

One best way todo each job

Job level

Administrativeprinciples

One best way toput anorganizationtogether

Organizational level

Bureaucraticorganization

Rational andimpersonalorganizational

arrangements

Organizational level

A Brief Overview of Classical Theories


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Scientific Management

Frederick Winslow Taylor

Frederick Winslow Taylor took up Henry Townes challenge

to develop principles of scientific management. Taylor,considered father of scientific management, wrote ThePrinciples of Scientific Management in 1911. An engineerand inventor, Taylor first began to experiment with newmanagerial concepts in 1878 while employed at the MidvaleSteel Co. At Midvale, his rise from laborer to chief engineerwithin 6 years gave him the opportunity to tackle a graveissue faced by the organization the soldiering problem.Soldiering refers to the practice of employees deliberately

working at a pace slower than their capabilities.


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Price-rate incentive system

Taylor felt that the wage system was one of the major reasons forsoldiering. To resolve this problem, he advocated the use of a piece-rate incentive system.

Time-and-motion study

Taylor tried to determine the best way to perform each and every job.To do so, he introduced a method called time -and- motion study. Ina time -and- motion study, jobs are broken into various small tasks ormotions and unnecessary motions are removed to find out the bestway of doing a job. Then each of the job is studied to find out theexpected amount of goods that can be produced each day.


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Frank and Lillian Gilbreth

After Taylor, Frank and Lillian Gilbreth made numerous contributions tothe concept of scientific management. Frank Gilbreth (1868-1924) isconsidered the father of motion study. Lillian Gilbreth (1878-1972)was associated with the research pertaining to motion studies. Motionstudy involves finding out the best sequence and minimum number of

motions needed to complete a task.The Gilbreths devised a classification scheme to label seventeen basichand motions such as search, select, position and hold - whichthey used to study tasks in a number of industries. These are 17motions, which they called Therbligs.

Lillians doctoral thesis (published in the early 1900s as ThePsychology of Management) was one of the earliest works whichapplied the findings of psychology to the management oforganizations. She had great interest in the human implications ofscientific management and focused her attention on designing

methods for improving the efficiency of workers.


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Henry Laurence Gantt

Henry L. Gantt (1861-1919) was a close associate of Taylor atMidvale and Bethlehem Steel. Gantt later become an independentconsultant and made several contributions to the field ofmanagement.

Under Gantts incentive plan, if the worker completed the work fast,i.e. in less than the standard time, he received a bonus. He alsointroduced an incentive plan for foremen, who would be paid a bonus

for every worker who reached the daily standard. If all the workersunder a foreman reached the daily standard, he would receive anextra bonus.


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Limitations of scientific management

The principles of scientific management revolve roundproblems at the operational level and do not focus on themanagement of an organization from a managers point ofview.

The proponents of scientific management were of the

opinion that people were rational and were motivatedprimarily by the desire for material gain. Taylor and hisfollowers overlooked the social needs of the workers andoveremphasized their economic and physical needs.

Scientific management theorists also ignored the humandesire for job satisfaction. Since workers are more likely togo on strike over factors like working conditions and jobcontent (the job itself) rather than salary, principles ofscientific management, which were based on the rationalworker model, become increasingly ineffective.


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ADMINISTRATIVE THEORY

Henri Fayol

French industrialist Henri Fayol (1841-1925), a prominent Europeanmanagement theorist, developed a general theory of management.Fayol believed that with scientific forecasting and proper methods ofmanagement, satisfactory results were inevitable,


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1. Division of work:2. Authority and responsibility:3. Discipline:4. Unity of command:5. Unity of direction:

6. Subordination of the individual interest to the generalinterest:

7. Remuneration:8. Centralization:9. Scalar chain:

10. Order:11. Equity:12. Stability of tenure of personnel:13. Initiative:14. Espirit de corps: A sense of union ( team sprit)

Fayol outlined fourteen principles ofmanagement:


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Bureaucratic Management

Weber

Observed that nepotism (hiring of relatives regardless of their

competence) was prevalent in most organizations. Weber feltthat nepotism was grossly unjust and hindered the progress ofindividuals.

The term bureaucracy referred to organizations thatoperated on a rational basis.

According to Weber, a bureaucracy is a highly structured,formalized, and impersonal organization.

It is a formal organization structure with a set of rules andregulations.


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BEHAVIORAL APPROACH

Name Period contribution

Mary Parker Follet 1868-1933 Emphasized group influence andadvocated the concept of powersharing and integration

Elton Mayo 1880-1949 Laid the foundation for the HumanRelations Movement; recognized theinfluence of group and workplaceculture on job performance

Abraham Maslow 1908-1970 Advocated that humans are essentiallymotivated by a hierarchy of needs.

DouglasMcGregor

1906-1964 Differentiated employee andmanagement into Theory X and TheoryY personalities

Chris Argyris-

Classified organizations based on the

employees set of values

Contributions of Behavioral Thinkers to Management Thought


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Mary Parker Follet: Focusing on GroupInfluences

She gave much more importance to the functioning of groupsin the workplace than did classical theorists. Follet arguedthat organizational participants were influenced by the groupswithin which they worked.

Follet recognized the critical role mangers play in bringingabout the kind of constructive change that enablesorganizations to function.

Power, according to Follet, was the ability to influence andbring about a change. She argued that power should not bebased on hierarchy; instead , it should be based oncooperation and should involve both superiors andsubordinates. In other words , she advocated power sharing .


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Elton Mayo: Focusing on Human Relations

Elton Mayo (1880- 1949), the Father of the HumanRelations Approach, led the team which conducted a studyat Western Electrics Hawthorne plant between 1927and1933 to evaluate the attitudes and psychological reactions

of workers in on-the-job situations.

a. Illumination experiments

b. Relay assembly test room experiments

c. Interview phase

d. Bank wiring observation room experiments


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Pre-judgments Findings

Job performancedepends on the

individual worker

The group is the keyfactor in job

performanceFatigue is the mainfactor affecting output

Perceived meaning andimportance of the workdetermine output

Management setsproduction standards

Workplace culture setsits own productionstandards

Elton Mayo and Hawthorne studies


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Abraham Maslow: Focusing on Human Needs

In 1943, Abraham H. Maslow (1908-1970), a BrandeisUniversity psychologist, theorized that people were motivatedby a hierarchy of needs.

Human needs occur in the following hierarchical manner:

(i) physiological needs;

(ii) safety or security needs;

(iii) belongingness or social needs;

(iv) Esteem or status needs;

(v) Self-actualization or self-fulfillment needs.


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Douglas McGregor: Challenging TraditionalAssumptions about Employees

Douglas McGregor (1906-1964) developed two assumptionsabout human behavior which he labeled Theory X and

Theory Y.

Theory X presents an essentially negative view of people.Theory X managers assume that workers are lazy, have littleambition, dislike work, want to avoid responsibility and needto be closely directed to make them work effectively. TheoryY is more positive and presumes that workers can be creativeand innovative, are willing to take responsibility , canexercise self control and can enjoy their work. Theygenerally have higher-level needs which have not beensatisfied by the job.


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Chris Argyris: Matching Human andOrganizational Development

Argyris points out the inherent conflict between the healthyindividual and the rigid structure of the formal organization.He believes that people progress from a stage of immaturityand dependence to a state of maturity and independence.

Argyris argues that several of the basic concepts andprinciples of modern management such as specialization-hinder the development of a healthy personality.

Such incongruence, can be corrected by techniques such as job enlargement and job loading.


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Model I and Model II organizations

The employees in Model I organization are manipulativeand pitted against each other. They are not willing to takerisks. Workers in Models II organization are open tolearning and less manipulative. Their access to information

gives them freedom to make informed choices, which inturn increases their willingness to take risks.


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Capital budgeting and cash flow management

Production scheduling

Development of product strategies

Planning for human resource development programs

Maintenance of optimal inventory levels

Aircraft scheduling

QUANTITATIVE APPROACHManagement Science

It visualized management as a logical entity, the action of whichcan be expressed in terms of mathematical symbols,relationships and measurement data. Another name commonlyused for management science is operations research. Recentadvances in computers have made it possible to use complexmathematical and statistical models in the management oforganizations.


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Waiting line theory or queuing theory, linear programming theprogram evaluation review technique (PERT), the critical pathmethod (CPM), the decision theory, the simulation theory, theprobability theory, sampling, time series analysis etc.

Operation Management

Operations management is an applied from of managementscience. It deals with the effective management of theproduction process and the timely delivery of an organizationsproducts and services.

(I) Inventory management,

(II) Work scheduling

(III) Production planning,

(IV) Facilities location and design and

(V) Quality assurance


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Management information Systems

Management information systems focuses on designing and

implementing computer-based information systems for businessorganizations.

MODERN APPROACHES TO MANAGEMENT


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MODERN APPROACHES TO MANAGEMENT

Resources

Labor

Materials

Capital

Machinery

Information

Management andTechnological abilities

Planning

Organizing

Staffing

Leading

Controlling Technology

Goods

Services

Profits andLosses

Employee

satisfaction

INPUTSTRANSFORMATION

PROCESSOUT PUTS

FEEDBACK

A Systems View of Organization


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Systems Theory

An organization cannot exist in isolation and that managementcannot function effectively without considering externalenvironmental factors.

An organization system has four major components: inputs,

transformation processes, output and feedback.Inputs money, material, men, machines and informationalsource are required to produce goods and services.Transformation processes or throughputs - managerial andtechnical abilities are used to convert inputs into outputs.Outputs are the products, services, profits and other resultsproduced by the organization. Feedback refers to informationabout the outcomes and the position of the organizationrelative to the environment it operates in.


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Contingency Theory

This is also known as the situational theory.

There is no one best way to manage all situations

The two basic types of systems are closed and open . Asystem that interacts with its environment is regarded as anopen system and a system that does not interact with itsenvironment is considered a closed system.

In reality, all organizations are open systems as they aredependent on interactions with their environment.


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Contingency Management Viewpoint

Behavioral ViewpointHow managersinfluence others: Interpersonal roles Informational roles Decisional roles

System viewpointHow the parts fit together Individual Group Organization Environment

Traditional ViewpointWhat managers do Plan Organize Lead Control

Contingency ViewpointManagers use of otherviewpoints to solve problemsinvolving: External environment Technology Individuals

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Evolution of Managment Thought1 (1)