EVOLUTION OF MANAGEMENT

THOUGHTS

Management- Past to Present

Learning Objectives
Describe how the need to increase organizational efficiency and effectiveness has guided the evolution of management theory . Explain the principle of job specialization and division of labor, & tell why the study of person-task relationships is central to the pursuit of increased efficiency. Trace the change in theories about how managers should behave to motivate and control employees. Explain the contributions of management science to the efficient use of organizational resources. Explain why the study of the external environment and its impact on an organization has become a central issue in management thought.

Evolution of management thoughts

Bureaucratic Approach

1. Classical Approaches

Scientific Management Administrative Management Hawthorne Studies & Human relations approach

2. Neo- classical Approaches/

Behavioral Management Approach

Maslows Theory of human Needs McGregors Theory of X & Theory Y

Quantitative approach

3. Modern Approaches

System approach Contingency approach

Chronological Development of Management Perspectives

Bureaucracy
Early Classical

Scientific Approaches Management Administrative Management

1. Early Classical Approaches 1. Bureaucracy

Max Weber Father of Bureaucracy (1864-1920) A structure with highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control and decision-making that follows the chain of command

Features
Principle of Hierarchy Systematic division of work Rules, Regulations and procedures Records in writing Impersonal relationships Rational Personnel Administrative class

Limitations
Rigidity Impersonality Displacement of objectives Empire building Red tape No real right to appeal

Bureaucratic Hierarchical Power Structure

Bureaucratic Principles

Written rules

System of task relationships

A Bureaucracy should have

Hierarchy of authority

Fair evaluation and reward

2. Scientific Management
Frederick WIinslow Taylor- Father of Scientific Management
An approach that emphasises the scientific study of work in order to improve worker efficiency. Thus putting the right person at right job with correct tools & equipment and motivating workers through the economic incentives.

Basics of Scientific Management: Study the work scientifically Select workers & train them Match jobs & Workers properly Distribute gains between employees & employers

Scientific Management
Time & motion studies

Scientific task planning

Key concepts

Standardisation

Functional foremanship

Differential piece rate system

Limitations of Scientific management

Scientific Management criticised on several grounds:

1.Exploitative device-

objective of workers economic welfare was never realized. workers were made to repeat same operations daily, produced boredom & monotony. no accurate information how the wages are to be given, how to measured workers efficiency

2.Depersonalised work-

3.Unpsychological-

1. Undemocratic-

it overshadows workers independence, thinking workers as unthinking animals.

workers treated as glorified economic tools only. Hoaglang originality of Taylors idea. questioned the

2. Anti-social3. Unoriginal-

4. Unrealistic

ignoring the social & ego needs of people i.e. satisfaction, growth opportunities, challenging work, recognition etc.

3. Administrative Management
Henri Fayol : Father of Administrative Management
An approach that focuses on principles that can be used by managers to coordinate the internal activities of organisations. Acc. to Fayol 6 activities of business: * Technical * Commercial * Financial * Security * Accounting * Managerial/Adm Fayol defined 5 Management functions: Planning- Future course of action to meet organizational goals. Organising- Mobilising the material and HR. Commanding- Directions to the employee Coordination- Recourses & activities are working harmoniously. Controlling- Monitoring the plans.

a) b) c) d) e)

Fayols 14 Principles of Management

At the operational level managers should apply fourteen functions:

1. Division of work: Principle of specialization applies. Specialization increases output by making employee more efficient.

2. Authority & Responsibility: To whom authority is given to exercise, must also be prepare to bear responsibility. 3. Discipline: Must obey & respect the rules. Discipline result of effective leadership. Judicious use of penalties for the violation of rules.

4. Unity of command: command from

only one superior . Conflicts in instructions & confusion of authority result.

5. Unity of direction: one manager one plan for all operations. Ensures unity of action and facilities coordination. 6. Subordination of individual interest to the common good: Managers must have good conduct & behavior, must be honest and fair, prepared to sacrifice personal interests.
7. Remuneration of personnel: Compensation for work done should be fair .

8. Order: Materials & people in the right place at the right time.
9. Centralization: Decreasing the role of subordinates in decisionmaking. Subordinates have enough authority to do their jobs properly. 10. Scalar chain: The chain of authority from top to bottom through which communications flow. 11. Equity: Fair in dealing with employees. Combination of justice & kindness. Requires good sense, experience.

12. Stability of tenure: encourage long-term commitments of employees. 13. Initiative: encouraged to think through to implement plan of action, opportunity to perform independently.

14. Esprit de corps: union is strength

Human relations approach

Neoclassical /Behavioral Management Maslows Theory of Approach human Needs

McGregors Theory Of X & Theory Y

2. Behavioral Management Approaches 1. Human Relations Approach

Key Concepts:

- Employees not only eco. being, also social as well as psychological being.
- Emphasis on creating humanistic or informational org.

- Strives to create + tive work environment

- Focus is on people - Help make workers more productive, concerned with motivating people to peak performance

Features of Human Relations

The Individual The work group The work environment The leader

Criticism 1. Philosophy reduced efficiency, transformed factories into unthinking place of comfort. 2. Scientific validity weaknesses of design, analysis, interpretation. 3. Short-sighted lacks adequate focus on work, neglects eco. dimensions of work satisfaction 4. Over concern with happiness have lot of workers but un productive. 5. Anti-individuals discipline of boss replaced by disciple of group

2. Behavioral Sciences Approach

Applied knowledge of behavioral science Performance increase with opportunies to socialize Social beings motivated by social interactions Basis of Hierarchy of social needs Emphasis on self-direction, self-control, creativity Its contribution to the understanding of individual motivation, group behavior, interpersonal-relationship

Limitations Self-actualizing view- not every employee has the same desire Diverse needs- not every one is motivated by the same need Discounted non-human aspect Searched for one best way of managing

Maslows Hierarchy of Needs

Self-Actualization Esteem Needs Social Needs Safety Needs Physiological Needs
(Majority)

Classical versus Behavioral Perspective

vs.

Classical Perspective
Focused on rational behavior

Behavioral Perspective
Acknowledged the importance of human behavior

3. McGregors Theory Of X & Theory Y Proposed the Theory X and Theory Y styles of management.

Theory X managers perceive that their subordinates have an inherent dislike of work and will avoid it if at all possible.
Theory Y managers perceive that their subordinates enjoy work and that they will gain satisfaction from performing their jobs.

Comparison of Theory X & Theory Y

Factor
Employee attitude toward work Management view of direction Employee view of direction

Theory X Assumptions
Employees dislike work and. will avoid it if at all possible.

Theory Y Assumptions
Employees enjoy will actively work seek and it.

Employees must be directed, Employees are self-motivated coerced, controlled, or threatened and self-directed toward achieving to get them to put forth adequate effort. organizational goals. Employees wish to avoid responsibility; Employees seek responsibility; they prefer to be directed and told what they wish to use their creativity, to do and how to do it. imagination, and ingenuity in performing their jobs. Authoritarian style of management Participatory style of management

Management style

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Quantitative Modern Approaches approach System approach

Contingency approach

3. Modern Approaches 1. Quantitative Approach

Focus is on decision making on costs, revenues, ROI etc. Focuses on the use of mathematics, statistics to aid decision making & managerial effectiveness. Main branches: management science, operations management, management information system. Emphasis put on computers & theirs ability. Identify & pin point possible ways of solving Promotes disciplined thinking

Limitations
Vital information may missing, defy analysis No importance given to human relations, individuals need. Inputs of decision-making not readily available. Decision quality depends upon data being used

2. Systems Approach
Decisions creates ripple effect- Must anticipate repercussions on entire org. It tries to solve problems by diagnosing them within the framework of inputs, transformation, outputs & feedback System- set of interrelated, mutually related parts. Sub-system goal sub-sys, technical sub-sys, structural sub-sys, managerial sub-sys, psychological sub-sys. Synergy- getting all the elements functioning together for optimal organization. Open & closed systemSystem boundary- to separates it from its environment Flow- successful interaction with the environment, flows of information, materials, energy. Feedback- central to system control, warning signals, corrective actions

Limitations
Does not attempt to identify situational factors. Tends to over emphasis oneness, coordination, harmony. Org have many in-build conflicts

The Organization as an Open System

Input Stage

Conversion Stage Machines

Human skills

Output Stage
Goods Services

Raw Materials

Sales of outputs Firm can then buy inputs

3. Contingency (situational) Approach

Argues that appropriate managerial actions depends upon the particular parameters of the situations Some motivated by challenging work. Analytical & situational to develop a practical answers to the questions at hand. Organizational efforts based on behavior of actions outside the system A particular action is valid under certain situations Each org. unique in itself

Limitations
Inadequacy of literature Complex Reactive not proactive incomplete

Contingency Theory
The idea that the organizational structures and control systems are contingent on characteristics of the external environment

An Example of the Contingency Perspective

Joan Woodwards Research Discovered that a particular management style is affected by the organizations technology. Identified and described three different types of technology: Small-batch technology Mass-production technology Continuous-process technology

Thought for the Day

If You fall dont see The place where you fell But see the place where you slipped Success is all about Correcting the mistakes.