INTRODUCTION
The Practice of management has evolved
from the year 3000 BC to the new era of
government organization brought up by
the Sumerians and Egyptians.
Management is studied in business
academics since earlier times and it is
considered as an integral part to
understand business operations. People
have been changing and redesigning
organizations for centuries.
WHAT DO YOU MEAN BY MANAGEMENT
THOUGHT?
Management thought refers to the
theory that guides management of
people in the organization.
Initially management theories were
developed out of the practical
experience of the managers in the
industrial organization.
Later on, managers borrowed ideas from
several other fields of study like
science, sociology, anthropology etc.
Classical Theory Of Management
The classical organizational theory emerged in the late
19th century and gradually gained ground over the first half of
the 20th century. It views an organization as a machine and
employees as the various parts of that machine.
focuses on centralized authority, labour specialization and
incentives to optimize productivity in an organization and, in
turn, drive profits.
Workplaces are segregated into three levels of authority:
business leaders or top-level management, middle
management and supervisors.
Frederick Winslow Taylor
Fredrick Winslow Taylor,
also known as the
‘Father of scientific management’
proved with his practical theories
that a scientific method can be
implemented to management.
Taylor gave much concentration on (1856 – 1915)
the supervisory level of management
and performance of managers and workers at an
operational level.
Principles of Scientific Management by Taylor
1. Science, not the Rule of Thumb : decision based on cause and
effect relationships rather than manager’s personal judgment).
2. Harmony, Not Discord : relationship between the workers and
management should be cordial and completely harmonious.
3. Mental Revolution : both management and workers should have a
sense of togetherness.
4. Cooperation, not Individualism : substitute internal competition
with cooperation.
5. Development of Every Person to his Greatest Efficiency
SCIENTIFIC MANAGEMENT
CONTRIBUTIONS CRITICISMS
Foundation Stone of Modern Undemocratic
Management. Unrealistic
Helps increase production. Depersonalized work
Develop worker’s efficiency. Requires huge capital
Bring changes in the attitude of Autocratic
employer and employees. Exploitative devices
Rational Method to solve No best way of doing work
Management problem. Unsuitable for small firms
Leads to Greater Economic
Prosperity.
HENRI FAYOL : Administrative Management
Henri Fayol- Father of management theory/ Modern
management theory.
He was a French mining engineer, mining executive,
author and director of mines who developed a
general theory of business administration that is often
called Fayolism.
Like his contemporary Frederick Winslow Taylor, born in a suburb of
Istanbul, Turkey in
he is widely acknowledged as a founder of modern (1841-1925)
management methods.
CRITICISMS OF FAYOLISM
too formal and rigid
Only effective in formal organisation
structure.
too management oriented
Neglect the wellbeing of the workers.
only effective during the time of stable and
predictable environment.
Limited point of reference
Overemphasis on efficiency
BASIS OF DIFFERENTIATION
FREDRICK TAYLOR HENRY FAYOL
PLACE OF ORIGIN AMERICAN FRENCH
WORKING PROCESS SHOP FLOOR LEVEL MANAGERIAL LEVEL
IMPORTANCE GIVEN BY EMPHASISED ON TIME & GAVE IMPORTANCE TO PLANNING
THEM MOTION STUDY AND CONTROLLING
RECOGNITION OF RECOGNISED AS AN RECOGNISED AS A MANAGERS
APPROACH ENGINEER’S APPROACH APPROACH
DIFFERENCE OF CONFINED TO CONFINED TO OVERALL
APPROACH PRODUCTION MANAGERIAL JOB
MANAGEMENT
THEIR CONTRIBUTION SCIENTIFIC BASED EMPHASISED ON MANAGEMENT
MANAGEMENT
SYSTEM OF WAGE DIFFERENCIAL PAYMENT HE EMPHASISED ON PROFIT
PAYMENT SYSTEM SHARING FOR MANAGERS
RESULTS SCIENTIFIC OBSERVATION PERSONAL EXPERIENCE
MANAGEMENT TRANSLATED INTO UNIVERSAL
TRUTH
MAX WEBER’S BUREAUCRATIC THEORY
Max Weber comes as the first person who has
systematically studied the fundamentals of
bureaucracy. He was a
German sociologist, historian, jurist and political
economist.
According to the Weber bureaucratic model,
bureaucracy is an organization that is highly
formalized, impersonal, and organized. (1864 – 1920)
The traditional organizations lacked authority,
while the bureaucratic model has full
accountability for the authority.
merits demerits
Specialization Rigidity
Predictability Impersonality
Democracy Endless
paperwork
Rationality
low
Structure innovation
and creativity
Neo classical approach
Neo classical approach was first set out by Alfred Marshall in
his book Principles of Economics, published in 1890’s.
The word neo means “new” and “classical” refers to work
done by group of economists in the back (18&19) century.
The neoclassical theory has been divided under two heads:
Human Relations Perspective : Hawthorne Studies – Elton Mayo and
Fritz J. Roethlisberger
Behavioural Science Perspective : Abraham Maslow, Douglas
Mcgregor
Hawthorne Studies – Elton Mayo and
Fritz J. Roethlisberger
At the beginning of the 20th century,
companies were using scientific
approaches to improve worker
productivity. But that all began to
change in 1924 with the start of the
Hawthorne Studies, a 9-year research
program at Western Electric Companies.
The program, of which Elton Mayo and Fritz Roethlisberger played a major role,
concluded that an organization’s undocumented social system was a powerful
motivator of employee behaviour. The Hawthorne Studies led to the development
of the Human Relations Movement in business management.
4 Phases of Hawthorne Experiment
I. Illumination Study (November 1924) : The mere practice of
observing people’s behavior tends to alter their behavior (Hawthorne
Effect).
II. Relay Assembly Test Room Study (1927-1932) : Human
interrelationships increase the amount and quality of worker
participation in decision making.
III. Interviewing Program (1928-1930) : Workers were asked for
opinions, told they were mattered and positive attitudes toward
company increased.
IV. Bank Wiring Room Observation Study (1931-1932) : Led future
theorists to account for the informal communication.
CRITICISMS FACED BY HAWTHORNE
EXPERIMENTS
did not give sufficient attention to the attitudes
that people bring with them to the workplace.
The Hawthorne plant was not a typical plant
because it was a thoroughly unpleasant place to
work. Therefore, the results could not be valid for
others.
look upon the worker as a means to an end, and not
an end himself.
Abraham maslow’s
hierarchy of needs theory
Hierarchy of Needs Theory was first introduced by
Abraham Maslow in 1943 for his paper titled
Theory of Motivation and is based on a hierarchy of
needs, which starts with the most basic needs and
subsequently moves on to higher levels.
The main goal of this need hierarchy theory is to
(1908 –1970)
attain the highest position or the last of the needs,
i.e. need for self actualization.
Douglas McGreGor’s
Theory X and Theory Y
Douglas Murray McGregor was a student
of Abraham Maslow.
He has contributed much to the development of the
management and motivational theory, and is best
known for his Theory X and Theory Y as presented
in his book ‘The Human Side of Enterprise’ (1960),
which proposed that manager's individual assumptions (1906 – 1964)
about human nature and behaviour determined how
individual manages their employees.
THERORY X SPHERE THEORY Y
Dislike work, find it boring , will ATTITUDE Need to work, want to take an interest , we
avoid if we can can enjoy it
Must be forced or coerced into DIRECTION Direct ourselves towards an accepted target
compliance
Need to be directed , avoid RESPONSIBILITY Thrive on responsibility
responsibility
Motivated by fear , lack of money , MOTIVATION Motivated y the desire of self –development
lack of job security and to contribute to the world
Little creativity , except when getting CREATIVITY Highly creative when given recognition and
around rules opportunity.
It is a traditional theory of NATURE It is a modern theory of motivation
motivation
It represents autocratic leadership STYLE OF LEADERSHIP It represents democratic leadership
Little or no ambition AMBITION Highly ambitious
Same routine work with special WORK ORGANIZATION Work is coordinated in under areas of skill,
employees knowledge, welcoming suggestions etc.
Modern approaches
Modern management theories started after 1950s. It focuses on the
development of each factor of workers and organization.
Modern management theory refers to
emphasizing the use of systematic mathematical techniques in the
system with analyzing and understanding the inter-relationship of
management and workers in all aspect.
The Modern theory has been divided under three heads:
System Approach : Herbert A. Simon
Quantitative Analysis and Tool Approach (Operation Research)
Contingency Approach (Situational Approach)
System Approach
This is a newly developed approach which came existence in 1960.
This approach was developed by Chester I. Bernard, Herbert A.
Simon and their colleagues.
The system approach means a group of small inter-related units
which work in cohesion simultaneously to achieve a particular
purpose.
success of the system depends on the cooperation and efficiency
of the sub-systems.
For example- a scooter is a system which has many sub-systems in
the form of engine, shaft, gear, wheels body, etc.
Characteristics of the System Approach
(1) Sub-Systems: combination of many sub-systems form system.
and if one of them fails the whole system stops working.
(2) Holism: A system is looked upon as a whole. Therefore,
every decision is taken keeping in view the entire organisation.
(3) Synergy: If job is performed collectively rather than individual, it
is certainly well-performed with better results.
(4) Closed and Open System: Closed System remains
unaffected by the environmental factors.
Open System remains constantly in touch with its
environment and is influenced by it.
Quantitative Approach
involves applying statistics, optimization models,
information models, computer simulations and
other quantitative techniques to the management
process.
The Quantitative approach evolved from mathematical and statistical
solution developed for military problem during World War II which
were later applied to businesses.
For example, one group of military officers, nicknamed the Whiz Kids,
joined Ford Motor Company in the mid-1940s and immediately began
using statistical methods and quantitative models to improve decision
making.
1. Management Science :
focuses on the use of rigorous
quantitative techniques to help
managers make maximum use
of organizational resources to
produce goods and services.
Operations & Production
management emphasizes
Framework of quantitative approach productivity and quality of
both manufacturing and
service organizations.
Quantitative management utilizes mathematical techniques
to help managers decide, for example where to locate a new
factory, and how best to invest an organization’s financial
capital.
Total quality management (TQM) is a philosophy or
approach to management that focuses on managing the entire
organization to deliver quality goods and services to
customers.
2. Management information systems (MIS) help managers
design systems that provide information about events
occurring inside the organization as well as in its external
environment—information that is vital for effective decision
making.
Contingency or Situational Approach
This approach originated in around 1970. According to it, the
managers should take decisions not according to principles
but according to the situations.
It means that there cannot be any single principle, formula or
managerial activity which can be suitable in all the situations.
The system approach has failed to establish a relationship
between the organization and environment. The contingency
approach has made an attempt to remove this weakness.
Features of Contingency Approach:
The managerial action influences the environment.
The managerial action changes according to the situations.
There is essentially coordination between the organization and
environment.
Limitations of Contingency Approach:
It is not sufficient to say that the managerial action depends on the
situation. It is essential to say what action should be taken in a
particular situation.
A situation can be influenced by many factors. It is difficult to analyse
all these factors.
CONCLUSION
My attributes of thought regarding the management theory is that to
have unique workers with specialized ability, execute
decentralization of power, motivation, then provide proper economic
incentives, which will yield maximum profit of the organization
making each worker feel that he/she is a contributor and a leader.
Thus, annulling the division between workers and
managers we have to enrich our work environment with ideas,
approaches and solution for the maximum output of an organization.
THANK
YOU
