THE HISTORICAL ROOTS OF CONTEMPORARY MANAGEMENT PRACTICES CHAPTER 1 Dr. DEVIKA VASHISHT ASSISTANT PROFESSOR IBS GURGAON
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THE HISTORICAL ROOTS OF CONTEMPORARY MANAGEMENT
PRACTICES
CHAPTER 1
Dr. DEVIKA VASHISHTASSISTANT PROFESSORIBS GURGAON
ROLE OF THEORY AND HISTORY IN MANAGEMENT
Why Theory: Conceptual framework for organizing knowledge and providing a blueprint for action.
Why History: Awareness and understanding of important historical developments – can help managers avoid the mistakes of others.
EARLY APPROACHES TO MANAGEMENT
NAMES PERIOD CONTRIBUTION
Robert Owen 1771-1858 Legislative reforms to improve working conditions of labor
Charles Babbage 1792-1871 Concept of division of labor & profit sharing plan
Andrew Ure 1778-1857Advocated the study of managementCharles Dupin 1784-1873
Henry R. Towne 1844-1924 Management as separate field of study and importance of business skills to run a business
MAJOR CLASSIFICATION OF MANAGEMENT APPROACHES AND
THEIR CONTRIBUTORS
CLASSIFICATION OF MANAGEMENT APPROACHES MAJOR CONTRIBUTORS
CLASSICAL APPROACH
Scientific Management Frederick W. Taylor, Frank Gilberth & Lillian Gilberth and Henry Gantt
Bureaucratic Management Max Weber
Administrative Management Henri Fayol
BEHAVIORAL APPROACH
Group Influences Mary Parker Follet
Hawthorne Studies Elton Mayo
Maslow’s Needs Theory Abraham Maslow
Theory X and Theory Y Douglas McGregor
Model I versus Model II Values Chris Argyris
QUANTITATIVE APPROACH
Management Science -
Operations Management -
Management Information System -
MODERN APPROACHES
The Systems Theory -
Contingency Theory -
Emerging Approaches: Theory Z and Quality Management
William Ouchi
STEPS IN SCIENTIFIC MANAGEMENT
SCIENTIFIC MANAGEMENTTAYLOR’ s WORK
Scientific way of doing work
Training and preparing
Establishing harmonious relations
Piece rate incentive system
Time and motion study
FRANK GILBERTH & LILLIAN GILBERTH’s WORK
Gave Motion Study: Sequence and minimum no. of motions needed to complete a task
Gave THERBLIGS 17 motions to analyze the exact elements of worker’s hand movements
Task and bonus systemGantt Chart
GANTT’ s WORK
LIMITATIONS OF SCIENTIFIC MANAGEMENT
Do not focus on management from a manager’s point of view
Overlooked social needs and overemphasized physical and economic needs
Ignored the human desire for job satisfaction
BUREAUCRATIC MANAGEMENT Bureaucracy: Highly structured, formalized and impersonal
organization Characteristics:
Work specialization and division of labor Abstract rules and regulations Impersonality of managers Hierarchy of organization structure
Limitations:Destroy individual creativityNo flexibilityDo not deal with problems of leadership, motivation, power
or informal relations
ADMINISTRATIVE MANAGEMENT
14 PRINCIPLES OF MANAGEMENT1. Division of work : Work specialization2. Authority and responsibility: Right to give orders and power of exact obedience3. Discipline: Obedience to authority, adherence to rules and regulations4. Unity of command: Only one superior5. Unity of direction: One plan under one supervisor6. Subordination of individual interest to general interest7. Remuneration: Fair and based on criteria8. Centralization: Based on authority distribution9. Scalar chain: Communication path10. Order: Sequence11. Equity: Fair12. Stability of tenure of personnel13. Initiative: Give suggestions for better work practices14. Espirit de corps: A sense of union
BEHAVIORAL APPROACHNAMES CONTRIBUTION
MARY PARKER Group Influence (Power with group) , Power sharing and integration ( Decentralization)
ELTON MAYO Influence of group and workplace culture on job performance
ABRAHAM MASLOW Hierarchy of needs – Physical, Safety, Social, Self esteem and Self centralization
DOUGLAS McGREGOR
Theory X: Dislike work, coerced with punishment, close direction, avoid responsibility, little ambitionTheory Y: Opposite of Theory X people
CHRIS AGRYRIS Divided organizations based on employees’ set of values
QUANTITATIVE APPROACH
Management Science: Use of mathematical models and statistical methods for decision making
Operations Management: Management of production process
Management Information System: MIS converts raw data into needed information
MODERN APPROACHES
The Systems Theory: Inputs Transformation Process Outputs
Contingency Theory: Situational Theory
Emerging Approaches: Theory Z (Combination of all good American and Japanese management practices) and Quality Management (Management of efforts that bring out continuous improvement of quality)
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