Lesson 2- Evolution of Management

8/7/2019 Lesson 2- Evolution of Management

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Major Management Perspectivesover time


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Classical Management Perspective

Focuses on efficiency and includes:

scientific,

administrative, and bureaucratic management.


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Scientific Management

focuses on the Best way to do a job.

Concerned with improving theperformance of individual workers

(i.e., efficiency).


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Scientific Management

Frederick Taylor(1856-1915)

Called as Father of Scientific Management

Mechanical engineer by profession Believed in selecting, training, teaching and

developing workers.

Used time study, standards planning,

rules, instruction cards, incentives, etc.


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Other Scientific ManagementPioneers

Frank Gilbreth(1868-1924) and Lillian

Gilbreth (1878-1972)

Reduced number of movements in bricklaying, resultingin increased output of 200%

Henry Gantt(1861-1919)

Developed other techniques, including the Gantt chart,

to improve working efficiency throughplanning/scheduling


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Administrative Management

A theory that focuses on managing theorganization.

Emphasizes the flow of information in theoperation of the organization.
http://telecollege.dcccd.edu/mgmt1374/book_contents/1overview/managerial_functions/mgrl_functions.htm


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Contd.

Henri Fayol (1841-1925).

Wrote General and Industrial Management

Helped to systematize the practice of management First to describe management as planning,

organizing, leading, and controlling


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Fayols 14 Principles for Effective

Management Practices

Division of labor

Authority

Discipline Unity of command

Unity of direction

Subordination ofindividuals to thecommon good

Remuneration

Centralization

Scalar chain Order

Equity

Stability

Initiative

Esprit de corps


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Theory of Bureaucracy

Relies on a rational set of structuring guidelinessuch as rules and procedures, hierarchy, and aclear division of labour.

Division of labor Reliance on rules and regulations Hierarchy of authority Unfriendly Inflexible Strict

C t ib ti


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Contributions& Limitations

Contributions

Laid the foundation for later developments

Identified important management processes, functions, & skills

Focused attention on management as a valid subject

Limitations

Suitable mainly for traditional, stable, simple organizations

Employees are viewed as tools rather than resources


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Behavioral ManagementPerspective

Emphasizes individual attitudes andbehaviors

Recognizes the importance of Groupbehavior in the workplace.


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Behavioral ManagementPerspective

The Hawthorne Studies Conducted by Elton Mayo (psychologist ) and associates

at Western Electric Co. (19271935)

The aim of these studies was to determine the effectof working conditions on productivity.

The conclusion was that there was no cause-and-effect relationship between working conditions and

productivity. Workers respond to the social context of the work

place.


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Behavioral Scientists

Major contributors and their theories:

Maslow- Hierarchy of needs

Alderfer- ERG

Mc.Gregor- Theory X Theory Y

Mary Parker Follett empowerment ,participative management, open systems

Their view: employees want meaningful work; theywant to contribute; they want to participate indecision making and leadership functions.


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Physiological

Safety

Esteem

Self-

Actualization

Maslows Hierarchy of Needs

Social

Developing using abilities

-

Status, Recognitionthrough promotions-

Relationship with otherworkers

-Job security, Betterworking condition-

Food, Clothing


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Theory X

People do not like work andtry to avoid it.

People do not like work, so

managers have to control,

direct, coerce, and threatenemployees to get them to

meet organizational goals.

People prefer to be directed,

to avoid responsibility, and

to want security; they have

little ambition.

Work is a natural part of peopleslives.

People are internally motivatedby commitment.

People are committed to goals to

the degree they receive rewards. People will seek and accept

responsibility.

People have the capacity to beinnovative.

People are bright, but mostlyunder-utilized.

Theory Y


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Mc Gregors Theory (XY theory)


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Contributions

Provided important insights into motivation, group dynamics, and otherinterpersonal processes.

Focused managerial attention on these critical processes.

Challenged the view that employees are tools and

promote the belief that employees are valuable resources.

Limitations

Complexity of individuals makes behavior difficult to predict.

Managers are reluctant to adopt many concepts.


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Quantitative ManagementPerspective

Uses quantitative methods and models tomanage decisions

1. Management Science Focuses on the development of mathematical

models to assist with decisions

2. Operations Management Practical application of management science toefficiently manage the production anddistribution of products and services


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Techniques used in this approach

Programme Evaluation and Review

Technique (PERT)

Critical Path Method (CPM),

Return on Investment (ROI),

Net Present Value (NPV)

Management science


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Techniques used in the Quantitative Approach are:

Linear Programming:

Queuing Theory:

Inventory Modeling:

Simulation:

Preventive Control and Replacement Problem:

Competitive Problem and Game Theory:

Operations Management

Contributions


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Contributions Developed quantitative techniques to assist in decision making.

Application of models has increased awareness and understanding ofcomplex processes and situations.

Has been useful in the planning and controlling processes.

Limitations

Cannot fully explain or predict behavior.

Mathematical sophistication may come at the expense of other skills.

Models may require unrealistic or unfounded assumptions.


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Integrating Perspectives ForManagers

The Systems Perspective

The Contingency Perspective


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Systems approach

System: an interrelated set of elementsfunctioning as a whole .

Consider organization as an open systeminteracts with its environment.

Uses systems concepts and quantitativeapproaches from mathematics, statistics,engineering, and other related fields to solveproblems.

Managers find optimal solutions to managementproblems by using scientific analysis which isclosely associated with the systems approach tomanagement.


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Contingency/Situational Perspective

Emphasizes the fit between organization processes andthe characteristics of the situation.

Appropriate managerial behaviour in a given situationdepends on a wide variety of elements & provides a

framework for integrating the knowledge of managementthought

Suggests that the effectiveness of various managementpractices, styles and techniques will vary according tothe particular situation

Lesson 2- Evolution of Management

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