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7/31/2019 Th Evolution of Management Theory
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TH EVOLUTION OF
MANAGEMENT THEORY
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LESSON OBJECTIVE
Identify the major schools of management
thoughts and how they evolved;
Describe the concepts presented in each
school of management thoughts;
Discuss the limitations of each school of
management thoughts.
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Lets define the terms..
MANAGEMENT - the act of getting people together toaccomplish desired goals.
THEORY - body of principles offered to explain naturalphenomena
CLASSICAL thoughts which have been supersededbut which are still appreciated by some, often for theirrelative simplicity.
BEHAVIORAL - explains all mental and physical
activity in terms of response by glands and musclesto external factor (stimuli)
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Administrative Management Theory
Scientific Management Theory
Behavioral Management Theory
Management Science Theory
Organizational Environment Theory
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Classical Management Theory
A.Scientific Management
B. Classical Organization TheoryC. Bureaucratic Management
Approach
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SCIENTIFIC MANAGEMENT
DEVELOPED BY : FREDERICK TAYLOR
PERIOD: 1880S AND 1890S
CONCEPT:
A. AGAINST ON THE RULE OF THUMB
B. IMPROVE PRODUCTIVITY
C. THERE IS ONE BEST WAY
D. PROPER PAY RATES FOR THE JOB
BACKGROUND OF THE WORLD :
A. NO CLEAR CONCEPT OF
RESPONSIBILITIES TO WORKERS AND
MANAGERS
B. MANAGEMENT DECISIONS ARE MADE
FROM INTUITIONS OR HUNCH
C. NO EFFECTIVE WORK STANDARDS
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FOUR PRINCIPLES OF SCIENTIFIC
MANAGEMENT
Develop a scientific way for each element of anindividuals work, which replaces the old rule-of-thumbmethod.
Scientifically select and then train, teach, and developthe worker.
Heartily cooperate with the workers so as to ensure thatall work is done in accordance with the scientific waythat has been developed.
Divide work and responsibility almost equally betweenmanagers and workers. Managers take over all work forwhich it is better fitted than the workers.
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Other Contributor: HENRY GANTT
PERIOD: 1861 - 1919
CONCEPTS:
A. Reconsidered Incentive System
B. GANTT CHART
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OTHER CONTRIBUTORS:
THE GILBRETHS (FRANK AND LILLIAN)
PERIOD: 1868 till 1972
CONCEPTS:
A. INDIVIDUAL WORKERS WELFARE
B. FATIGUE AND MOTION STUDIESC. ENABLE WORKERS TO REACH THEIR FULL
POTENTIAL
D. EMPLOYEE MOTIVATION
E. PHYSICAL WELL BEING OF THE WORKERS
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LIMITATIONS OF SCIENTIFIC
MANAGEMENT
1. Ignores the human factor
2. Ignores the individual freedom and intangiblemotives like recognition, sense of achievement
3. Only concerned with the operational level andthe managerial levels are totally ignored.
4. Producers has to depend heavily on thespecialists
5. An expensive system as it requires theappointment of large number of specialist.
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CLASSICAL ORGANIZATIONAL THEORY
DEVELOPED BY : HENRI FAYOL
PERIOD : 1840S 1920S
CONCEPTS:
A. ONE SUPERVISOR
B. UNITY OF COMMANDC. EQUITY IN WORKER
TREATMENT
D. 5 PRIMARY FUNCTIONS OFMANAGEMENT
E. PRINCIPLES OF
MANAGEMENT
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5 PRIMARY FUNCTIONS OF MANAGEMENT
1. PLANNING
2. ORGANIZING
3. COMMANDING4. COORDINATING
5. CONTROLLING
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PRINCIPLES OF MANAGEMENT Division of work - limited set of tasks
Authority and Responsibility - right to give orders
Discipline - agreements and sanctions
Unity of Command - only one supervisor
Unity of Direction - one manager per set of activities
Subordination of Individual Interest to General Interest Remuneration of Personnel - fair price for services
Centralization - reduce importance of subordinates role
Scalar Chain - Fayols bridge
Order - effective and efficient operations
Equity - kindliness and justice
Stability of Tenure of Personnel - sufficient time for familiarity
Initiative - managers should rely on workers initiative
Esprit de corps - union is strength loyal members
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LIMITATIONS OF CLASSICAL
ORGANIZATION THEORY
Inappropriate for the present
Workers leave the organization because of
dissatisfaction
Concepts are just general like the principles of
division of labor and unity of command which
brought to conflict in the organization
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BUREAUCRATIC MANAGEMENT APPROACH
DEVELOPED BY: Max Weber
PERIOD: 1864-1920
CONCEPTS
A. DIVISION OF LABOR
B. FORMALIZATION OF RULES,PROCEDURES
C. HIERARCHY
D. MERIT SYSTEM
E. LEGAL POWER TOMANAGERS
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The IdealBureaucracy
Division oflabour
Management& ownershipis separate
Decisionsrecorded in
writing
Selectionbased ontechnical
qualification
Positionsorganised in
hierarchy
Managerssubject to
rules &procedures
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Behavioral Approach to Management
A. Hawthornes Experiment - Elton Mayo
B. Maslow theory - Hierarchy of NeedsC. Mc Gregor - Theory X and Theory Y
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HAWTHORNES EXPERIMENT
DEVELOPED BY : ELTON MAYO
PERIOD: 1927 to 1932CONCEPTS:
A. INDIVIDUAL MUST BE
TREATED AS MEMBERS OF A
GROUPB. SENSE OF BELONGINGNESS
RATHER THAN INCENTIVES
C. WORKING GROUPS HAVE
INFLUENCE ON THEWORKERS BEHAVIOR
D. MANAGERS MUST SEE THE
SOCIAL NEEDS OF THE
WORKERS
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HAWTHORNE STUDIES:
IMPLICATION Illumination Study (November 1924)
The mere practice of observing peoples behavior tends to alter their behavior (Hawthorne Effect)
Relay Assembly Test Room Study (1927-1932) Relationships between workers and their supervisors are powerful
Human interrelationships increase the amount and quality of worker participation in decision making
Interviewing Program (1928-1930) Demonstrated powerful influence of upward communication
Workers were asked for opinions, told they mattered, and positive attitudes toward companyincreased
Bank Wiring Room Observation Study (November 1931 - May 1932) Led future theorists to account for the existence of informal communication
Taken together, these studies helped to document the powerful nature of socialrelations in the workplace and moved managers more toward the interpersonal
aspects of organizing.
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LIMITATIONS
1. It emphasizes Human variable and ignores other variables
2. It over emphasize the importance of symbolic rewards and
undermines the role of material reward.
3. It emphasizes only on informal groups describing them as
major source of satisfaction for industrial worker. But many
research studies has revealed that informal group can only
make workers day more pleasant not his task.
4. It cannot work properly in emergency when quick decisions
are needed.
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HIERARCHY OF NEEDS
DEVELOPED BY : ABRAHAM MASLOW
PERIOD: 1950S 1970SCONCEPT:
A. LEVEL OF HUMAN NEEDS
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LIMITATIONS
1. The theory emphasizes on that worker should fulfill only one type of
need at a time but it depends on the nature and interest of a worker.
2. Theory arranged workers needs in a hierarchical order and he/she
fulfill their needs in hierarchical order but it depends on interest and
emergency of a worker.
3. The theory over emphasizes individual behavior of worker and
ignores other variables.
4. It emphasizes the motivation as the most important sources of an
organization and doesnt give importance to other factors.
5. Only fulfillment of workers needs is not sufficient for runningorganization but there are other variables also which play an important
role for running organization.
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THEORY X AND Y
DEVELOPED BY: DOUGLAS MCGREGOR
PERIOD: 1960
CONCEPTS:
A. Authoritarian management STYLE
B. Participative management STYLE
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THE DIFFERENCES
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LIMITATION
MAKES EMPLOYMENT HARDER
JUST WORK ON ASSUMPTIONS
THEORY X FOSTERS A DISTRUSTFULATMOSTPHERE
THEORY Y IS HARD TO UPHOLD IN REALITY
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THANK YOU