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7/30/2019 The Evolution of Management Thought(1)
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The Evolution ofManagement Thought
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The Evolution of Management Theories forOrganization
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Scientific ManagementTheory
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AdministrativeManagement Theory
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Administrative Management Theory
Administrative
Management
The study of how to
create an organizationalstructure that leads to
high efficiency and
effectiveness.
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max Weber's
theory
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Administrative Management Theory
Max Weber ( 1864-1920) German sociologistHe has given the bureaucratic model. He
developed the principles of bureaucracy as a
formal system of organization andadministration designed to ensure efficiency
and effectiveness.
It is the most important means of controllingover human beings.
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Webers
Principles of
Bureaucracy
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Webers Principles of Bureaucracy
:Hierarchy of authority:
Authority can be exercised effectively when positions are arranged
hierarchically, so employees know whom to report to and who reports to
them.
In a bureaucracy, a managers formal authority derives from the position he
or she holds in the organization.
Division of labour : There should be a division of labor based upon
competence and functional specialization
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Webers Principles of Bureaucracy
Impersonality:
People should occupy positions because of their performance, not
because of their social standing or personal contacts.
Specified system of task and responsibility:
The extent of each positions formal authority and taskresponsibilities and its relationship to other positionsshould be clearly specified.
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Webers Principles of Bureaucracy
Written rules of conduct
Managers must create a well-definedsystem of rules,
standard operatingprocedures, and norms so theyso that they can
effectively controlbehavior .
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Rules, SOPs and Norms
Rulesformal written instructions that specify actionsto be taken under different circumstances to achievespecific goals
Standard Operating Procedures (SOPs)specificsets of written instructions about how to perform acertain aspect of a task
Normsunwritten, informal codes of conduct thatprescribe how people should act in particular situations
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Advantages
and
disadvantages
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Advantages
No confliction among job duties
Promotion is based on experience and merits.
Employees are bound to follow rules and management
process becomes easy Division of labour helps workers in becoming experts.
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Disadvantages
System suffers from too much of red tape and paperwork.
Human factor is neglected due to excessive emphasis
on rules Employees dont develop belongingness to the
organization
Employees resist change.
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BehaviouralManagement Theory
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Behavioral Management /Humanrelations approach
Behavioral Management
The study of how managers should
personally behave to motivate employees
and encourage them to perform at highlevels and be committed to the achievement
of organizational goals.
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Behavioral Management
It was concerned that scientificmanagement ignored the human side ofthe organization.
It began with the Hawthorne experimentsby Elton Mayo and importantcontributions have been made by DouglasMc.Gregor
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Features of the theory
An organization is more than a formal structureof positions. It is a system of interpersonal andintergroup relationships.
Management must understand human behavior
Higher motivation and productivity can beobtained through good human relations whichcan be developed through
Leadership
Communication
Employee participation
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Theory X
andTheory Y
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Theory X and Theory Y
It is given by Douglas McGregor. Heproposed the two different sets ofassumptions about workers.
In his book the Human side ofenterprisestates that people can bemanaged in two ways.
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Theory X and Theory Y
Theory XAssumptions :The average worker is lazy, dislikes work and will do as
little as possible and tries to escape it whenever possible
Managers must closely supervise and control throughreward and punishment.
Many employees rank job security on top, and they havelittle or no aspiration/ ambition.
Employees generally dislike responsibilities and fromresponsibilities.
An average employee needs formal direction.
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Theory X and Theory Y
Theory Y
Assumptions:Workers are not lazy, want to do a good job
They view work as natural and enjoyableEmployees are committed to objectives and exercise self
control and self direction for their attainment.
If the job is rewarding and satisfying, then it will result
in employees loyalty and commitment to organization.They can learn and even seek responsibility.
All people are capable of making creative and innovativedecisions
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implications
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The Hawthorne Studies
Studies of how characteristics of the work
setting affected worker fatigue and
performance at the Hawthorne Works of
the Western Electric Company from1924-1932.
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The Hawthorne Studies
Worker productivity was measured at
various levels of light illumination.
Researchers found that regardless of
whether the light levels were raised or
lowered, worker productivity
increased.
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The Hawthorne Studies
Human Relations Implications
Hawthorne effectworkers attitudes
toward their managers affect the level of
workers performance
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The Hawthorne Studies
Human relations movement advocates
that supervisors be behaviorally trained
to manage subordinates in ways that
elicit their cooperation and increase theirproductivity
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The Hawthorne Studies
Implications
Behavior of managers and workers in the
work setting is as important in explaining
the level of performance as the technical
aspects of the task
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The Hawthorne Studies
Demonstrated the importance of
understanding how the feelings,
thoughts, and behavior of work-group
members and managers affectperformance
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Management ScienceTheory
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Management Science Theory
Contemporary approach to management
that focuses on the use of rigorous
quantitative techniques to help
managers make maximum use oforganizational resources to produce
goods and services.
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Management Science Theory
Quantitative management utilizeslinear and nonlinear programming,modeling, simulation, queuing theory
and chaos theory. Operations management
techniques used to analyze any aspectof the organizations productionsystem.
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Management Science Theory
Total Quality Management (TQM)focuses on analyzing input,
conversion, and output activities to
increase product quality.
Management Information Systems(MIS) provides information vital for
effective decision making.
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OrganizationEnvironment Theory
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Organizational Environment Theory
Organizational Environment
The set of forces and conditions that
operate beyond an organizationsboundaries but affect a managers ability
to acquire and utilize resources
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The Open-Systems View
Open System
A system that takes resources for its
external environment and transforms
them into goods and services that are
then sent back to that environment
where they are bought by customers.
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The Open-Systems View
Inputs: the acquisition of external resourcesto produce goods and services
Conversion: transforms the inputs into
outputs of finished goods and services. Output: the release of finished goods and
services to its external environment.
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Closed System
A self-contained system that is not
affected by changes in its external
environment.
Likely to experience entropy and lose its
ability to control itself
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Systems
Synergy the performance gains that
result from the combined actions of
individuals and departments
Possible only in
an organized system
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