History of mgt

Bhawana Dahiya

PRINCIPLES OF MANAGEMENT

Session 2Evolution of Management

Bhawana Dahiya

MANAGEMENT DEFINITIONS

• “Management is the art of getting things done through people.”

Mary Parker Follett

• “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.” (...to create a surplus)

Weirich & Koontz

Bhawana Dahiya

KEY CONTRIBUTORS

• 1911• 1916• 1930’s

• 1943• 1946, 47• 1960• Late 1960’s

• 1968

• Frederick Taylor's Scientific Mgt. • Henri Fayol's Modern Mgt. Theory• Elton Mayo's Hawthorne Works

experiments• Maslow’s Hierarchy of Needs• Max Weber's Theory of Bureaucracy• McGregor’s Theory X & Theory Y• Systems Approach (Chester Barnard,

von Bertalanffy )• Fredrick Herzberg

Bhawana Dahiya

KEY CONTRIBUTORS – NEW TRENDS

• Theory Z• Japanese Management Style• William Ouchi

• Total Quality Management Approach• Deming, Juran, Crosby

Bhawana Dahiya

• Influences– Industrial revolution– Autocratic management was the norm– Major progresses / discoveries in Science (Physics &

Chemistry)– Turning to "science" as a solution to the

inefficiencies and injustices of the period.

FREDERICK TAYLOR - SCIENTIFIC MANAGEMENT

Bhawana Dahiya

FREDERICK TAYLOR - SCIENTIFIC MANAGEMENT

• In the late 19th century, Frederick Taylor was decrying the “awkward, inefficient or ill-directed movements of men” as a national loss

• He advocated a change from the old system of personal management to a new system of scientific management

• Taylor claimed that a group of ordinary men, following a scientific method would out-perform the older “personally brilliant” captains of industry

Bhawana Dahiya

• Taylor consistently sought to overthrow management “by rule of thumb” and replace it with actual timed observations leading to “the one best” practice

• Advocated systematic training of workers in “the one best practice” rather than allowing them personal discretion in their tasks

• He believed that “a spirit of hearty cooperation” would develop between workers and management

• Taylor's strongest positive legacy was the concept of breaking a complex task down into a number of small subtasks, and optimizing the performance of the subtasks.

FREDERICK TAYLOR - SCIENTIFIC MANAGEMENT

Bhawana Dahiya

• Principles1. Replacing rules of thumb with science (organized

knowledge)

2. Obtaining harmony in group action, rather than discord

3. Achieving cooperation of human beings, rather than chaotic individualism

4. Working for maximum output, rather than restricted output

5. Developing all workers to the fullest extent possible for their own and their company's highest prosperity

PRINCIPLES OF SCIENTIFIC MANAGEMENT

Bhawana Dahiya

• Application (Successes) – Contributed many papers on • the science of cutting metal• coal shovel design• worker incentive schemes and • piece rate system for shop management.

– Organizational influences in industrial engineering, personnel, and quality control.

• Application of his methods yielded significant improvements in productivity

FREDERICK TAYLOR - SCIENTIFIC MANAGEMENT

Bhawana Dahiya

• Focused on the personal duties of management

• While Weber laid out principles for an ideal bureaucratic organization Fayol’s work was directed more at the management layer

• Recognized a widespread need for principles• Identified 14 such principles, noting that these

were flexible & must be used regardless of changing conditions

HENRI FAYOL’S MANAGEMENT PRINCIPLES

Bhawana Dahiya

• Propagated that the entire organization (both workers and management) should function on 4 basic principles1. Unity of command- Each person should receive

order from only one superior2. Division of work- Specialization and efficiency to

be incorporated in workers3. Unity of direction- Related activities to be

grouped under one manager4. Scalar Chain- the organizational structure which

starts from the CEO’s to the labourers. Can be short-circuited when following it becomes detrimental

HENRI FAYOL’S MANAGEMENT PRINCIPLES

Bhawana Dahiya

• Also laid down the 5 principle roles of the management. Which are: – to forecast and plan– to organize– to command– to co-ordinate and – to control.

HENRI FAYOL’S MANAGEMENT PRINCIPLES

Bhawana Dahiya

• Application (Successes) – The 5 principle roles of management are still

actively practiced today– The concept of giving appropriate authority with

responsibility has also been widely regarded– Time & again organizations and managements

have reiterated the relevance of the principles of "unity of command" and "unity of direction"

HENRI FAYOL’S MANAGEMENT PRINCIPLES

Bhawana Dahiya

• Influences– The Newtonian science that supported "the one best

way" of doing things was being strongly challenged by “new physics” (like Einstein)

– Suddenly, even in the realm of "hard science" uncertainty and variation had found a place

– In the work place there were strong pressures for shorter hours and employee stock ownership

– As the effects of the 1929 stock market crash and following depression were felt, employee unions started to form

ELTON MAYO- HUMAN RELATIONS MOVEMENT

Bhawana Dahiya

• Started as an attempt to determine the effects of lighting on worker productivity.

• When those experiments showed no clear correlation between light level and productivity the experiments then started looking at other factors.

• Working with a group of women, the experimenters made a number of changes– rest breaks, no rest breaks– free meals, no free meals– more hours in the work-day / work-week, fewer hours in the work-

day / work-week.

• Their productivity went up at each change.

ELTON MAYO- HUMAN RELATIONS MOVEMENT

Bhawana Dahiya

• The experiments strongly disapproved Taylor’s beliefs in 3 ways– the experimenters determined that the women had

become a team and that the social dynamics of the team were a stronger force on productivity than doing things "the one best way."

– the women would vary their work methods to avoid boredom without harming overall productivity

– the group was not strongly supervised by management, but instead had a great deal of freedom

ELTON MAYO- HUMAN RELATIONS MOVEMENT

Bhawana Dahiya

• Findings– group dynamics and social makeup were an

extremely important force either for or against higher productivity

– Focus became• greater participation for the workers• greater trust and openness in the working environment • and a greater attention to teams and groups

ELTON MAYO- HUMAN RELATIONS MOVEMENT

Bhawana Dahiya

• Application (Successes) – Greatest impact came in what the organization's

leadership and personnel department were doing

– The seemingly new concepts of "group dynamics", "teamwork" and organizational "social systems" all stem from Mayo's work in the mid-1920's

ELTON MAYO- HUMAN RELATIONS MOVEMENT

Bhawana Dahiya

• Influences– Weber was an economist and social historian– saw the environment transitioning from older

emotion and tradition driven values to technological ones (being efficiency driven)

MAX WEBER- BUREAUCRACY

Bhawana Dahiya

• Believed that civilizations were shifting from value oriented thinking, emotion-derived action and traditional action to technocratic thinking

• Bureaucracy was envisioned as a large machine for attaining its goals in the most efficient manner possible

• Developed a set of principles for an "ideal" bureaucracy

MAX WEBER- BUREAUCRACY

Bhawana Dahiya

• Weber’s theory concentrated on the fact that positions should be structured

• there must be a clear line of authority (hierarchy) and

• all persons must be selected by competency for the job and promotion (promotion based on achievement and a specialized division of labour) also, a formal structure and position rather than an individual.

MAX WEBER- BUREAUCRACY

Bhawana Dahiya

• Principles – There should be– fixed and official jurisdictional areas– a firmly ordered hierarchy – management based on written records– thorough and expert training– official activity takes priority over other activities

and – management of a given organization follows stable,

knowable rules

MAX WEBER- BUREAUCRACY

Bhawana Dahiya

• Application (Successes) – His principles of an ideal bureaucracy still hold true

today – Many of the evils of today's bureaucracies come

from their deviating from these ideal principles

MAX WEBER- BUREAUCRACY

Bhawana Dahiya

SYSTEMS THEORY• Systems Theory attempts to understand organizations by comparing

them to living organisms. • Has four distinct characteristics which reflect the biological

resemblance between living organisms and organizations1. Wholeness expresses the idea that an organization is a set of individual

elements which are interdependent; i.e. actions of one individual or group will affect the rest of the system or organization

2. Hierarchy or the division of individuals into subsystems; i.e. groups within an organization. • With regards to organisms, this could be called the organs of the body

3. The organization may be regarded as, "Open or closed," depending on their level of active exchange with the outside environment; successful organizations must be actively open

4. Open systems are characterized by two processes; maintenance and adaptation. Both of these processes act on Feedback to actions taken by the groups in order to maintain stability and adapt to environmental changes

Organization as a System receives Input, transforms it through a Process for Output and Operates in an Environment (economic, regulatory, competitive, other forces)

Transformation processInput Output

Feedback (Reenergizing the system)

ENVIRONMENT

System Boundary

SYSTEMS THEORY