MANAGEMENT
THOUGHTS
Evolution of Management Thought
•Classical or Traditional Theory
•Behavioral or Neo-Classical Approach
•Modern Approach
Classical Approach
Assumption :-
•Managerial Experience
•Experience frames management principles
•Education and training are must
•Universal application to management
CLASSICAL APPROACH
Scientific Management
Administrative Theory
Bureaucratic Theory
Scientific Management
Concept was brought BYYYY
Fredrick Winslow Taylor,
ALSO
Known Father of scientific management.
Definition:
Scientific management means knowing exactly
what you want your men to do and seeing
that they do it in the best and the cheapest way.
Principles of scientific Management
FACT based Not Rule of
Close cooperation between Workers and Management
Set rules for division of work and responsibility
Emphasis on Maximum benefit for employees and employers
Differential Payment
Harmony
Techniques of Scientific Management
• Scientific Work study:
• Scientific Task setting:
• Standardisation
• Selection and Training
• Differential Piece Rate system
Limitations
Too much Production Oriented
Based on the assumption that workers are
rational economic beings
More applicable to Operation and Production
Mostly applicable to operating level
Administrative Theory
Concept was brought BYYYY
Henry Fayol
Classification of Business Activities-
• Technical (Production and manufacturing)
• Commercial (Buying, selling, exchange)
•Financial (Optimum utilisation of capital)
•Security (Protection of property and persons)
•Accounting (Record keeping, costing)
•Managerial (Planning, organising, controlling)
FAYOL 14 Principle
TAYLOR VS.FAYOL
Basis Taylor Fayol
Perspective Shop floor Level Top &Middle
Management
Focus On Work Methods On general Administration
Personality Scientist Administrator
Techniques Scientific observations General principles of
used and measurement Mgmt
Thinkers Taylor. Gnnatt’ Fayol; Follet, Mooney
Associated Gilbreth
Bureaucratic Theory
Concept was Proposed BYYY
Max Weber
Characteristics :
•Hierarchy of authority
•Impersonality
•Technical competence
•Rigid Rules and Regulations
•Division of Labour
Bureaucratic Theory
Limitations :
• Lack of effective communication
• Lack of initiative
• Backed by prejudice and biases
• Rigid machine model of organisation
• Limited scope of executive development
Behavioural Approach
Based on the conviction that successful management
depends on managers ability to understand work as
well as people with different background ‘needs
values perception and personality
BEHAVIOURAL APPROACH
Human Relation movement
Behavioural Approach
Human Relation Movement
• Movement from simple economic man to humanistic
view
• Human organisations are psycho-social system
Human Relations Movement
• Emerged as Taylor’s Scientific Management and
Fayol”s Administrative theory did not achieve
Production efficiency along with workplace
harmony.
• Realization of “ People side/Humanization at work
place
HAWTHRONE EXPERIMENT
• No of employees – 29,000
• Conducted during 1927-1932
• Profile of the plant- Manufacture telephone
parts and equipments
• Series of experiments
1. Illumination Experiments
2. Relay Assembly Test Room
3. Interviewing Programme
4 .Bank Wiring observation room
Illumination Experiment
• Assumption – Productivity is positively
correlated with illumination
• Results of the experiment was erratic
• Setup Experimental vs. Control Group
• Post-test productivity was compared
• Findings – (Illumination affected production only
marginally)
Relay Assembly Test Room
• Objective – to know the impact of working hours, rest pauses,
their frequency, duration, and other physical conditions on
productivity
Result- No correlation found between factors P/W
It went on increasing and stabilized at a high level even if all
the improvements were taken away
• Astonishing results even the workers got surprised
Interviewing Programme
Interviewed more than 20.000 workers
Direct question were asked on type of supervision, working
condition, living condition and so on
But the answers were guarded
Thus technique was changed to non-directive type
Workers felt free regarding their favourite topic related to
work environment
BANK WIRING OBSERVATION ROOM
• 14 men making terminal of telephones
• Objective – to determine the effect of informal group
norms and formal economic incentives on productivity
• Result – Group evolved it”s own production norms
which were much more lower than those set by the
management
CONTRIBUTIONS
Organisation is not merely a techno-economic system, but it
is a social system
No correlation between improved working conditions and high
production
Workers production norm is set by group
Worker does not work for money only
Employee-centered democratic style is more effective
Informal group has a dominant role to play in organisation
BEHAVIOURAL APPROACH
McGregor
Maslow
Important Contributions
• 1. Humanising the Control System
• 2.Encouraging self direction and control
• 3.Group Decision making
• 4.Leadership
• 5.Motivation
MODERN APPROACH
Quantitative Approach
Systems Approach
Contingency Approach
QUANTITATIVE APPROACH
• Application of operation research methods/
mathematical models to simulate the problem
• Objective rationality
Precision and perfection
Widely used for planning and control
But still uncommon in organising staffing and leading
SYSTEMS APPROACH
• Classical approach- Task & Structure
• Behavioural approach – People
• Quantitative Approach – Mathematical Decision- making
• ( Thus difficult to know which is most useful and appropriate
in a given situation)
• Need was to go for a broad. Detailed .conceptual framework
that can help a manager diagnose a problem and decide
which tool or combination of tools will best suit.
• System approach provides the same
• Persons associated – Bernard. Simon. Homans
SYSTEM THEORY
The environment The environment
Supplies The organization Consumes
Creates
Resource Inputs
Product Output
People
Money
Work •Finished
Material
Activities •Goods
Machine
turn •And/or
Methods
resources •services
into
outputs
Customer and client feedback
Transformation process
Organization
33
CONTINGENCY APPROACH
Management principles are not universally applicability
under all conditions
Methods and techniques that best suit one situation may
not work in other situation
Managers thus need to develop and adopt situational
sensitivity and practical selectivity ( Decision Making.
Leadership Style, Motivational Approach etc)
LEARNING ORGANISATION
Base on “The fifth discipline”
Mental Model
Personal Mastery
System Thinking
Shared Vision
Team Leaning
