Session 2 Ppm

8/3/2019 Session 2 Ppm

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Development ofDevelopment of

Management ThoughtManagement Thought


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1) Early Classical Approach1) Early Classical Approach

2) Neo Classical/Human Resource Approach2) Neo Classical/Human Resource Approach

3) Modern Approach3) Modern Approach


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1) The Classical Approach1) The Classical Approach

The classical perspective emerged during 19The classical perspective emerged during 19thth

century and continued into 20century and continued into 20thth century.century.

Due to challenges that organizations faced,Due to challenges that organizations faced,management sought methods of efficiencymanagement sought methods of efficiency

which included rational and scientificwhich included rational and scientific

approach.approach.


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The Classical approach includes the followingThe Classical approach includes the followingthree theories and their contributors:three theories and their contributors:

A) Scientific Management by Frederick TaylorA) Scientific Management by Frederick Taylor

B) Administrative Management by HenryB) Administrative Management by HenryFayolFayol

C) Bureaucratic Organization by Max WeberC) Bureaucratic Organization by Max Weber


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Frederick Winslow Taylor is known asFrederick Winslow Taylor is known as

Father of Scientific ManagementFather of Scientific Management..

He was an American engineer whoHe was an American engineer who

conducted a series on experiments duringconducted a series on experiments during

his career of 26 years which exerted a greathis career of 26 years which exerted a great

influence on the improvement of industrialinfluence on the improvement of industrial

efficiency.efficiency.


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Problems of Scientific ManagementProblems of Scientific Management

1) Workers felt exploited because they were treated1) Workers felt exploited because they were treatedas machines and social aspects of their life wasas machines and social aspects of their life wasdisregarded.disregarded.

2) Workers were not allowed to suggest innovative2) Workers were not allowed to suggest innovativeways to improve their task.ways to improve their task.

3) Highly specialized jobs made work dull and boring3) Highly specialized jobs made work dull and boring

4) Advances in methods and better tools and4) Advances in methods and better tools andmachines eliminated some workers, who found itmachines eliminated some workers, who found it

difficult to get other jobs. This caused resentmentdifficult to get other jobs. This caused resentmentamong them.among them.


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B) Administrative ManagementB) Administrative Management

It focused on the development of broadIt focused on the development of broad

administrative principles applicable to generaladministrative principles applicable to general

and higher managerial levels.and higher managerial levels.

Henri FayolHenri Fayol is known as the Father ofis known as the Father of

Administrative ManagementAdministrative Management


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Fayol defined management in terms of 5Fayol defined management in terms of 5

functions: Planning, Organizing,functions: Planning, Organizing,

Commanding, Coordinating and Controlling.Commanding, Coordinating and Controlling.

He presented the 14 principles of managementHe presented the 14 principles of management

as general guides to mgmt. process andas general guides to mgmt. process and

practice.practice.


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c)Bureaucracyc)Bureaucracy

Max Weber, a German sociologist isMax Weber, a German sociologist is

known as the Father of Bureaucracy.known as the Father of Bureaucracy.


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2) Neo Classical Approach2) Neo Classical Approach

A) The Human Relations MovementA) The Human Relations Movement

B) Behavioral ApproachB) Behavioral Approach


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A) Human Relations MovementA) Human Relations Movement

Hawthorne Experiments conducted by Prof.Hawthorne Experiments conducted by Prof.

Elton Mayo and his colleagues at the WesternElton Mayo and his colleagues at the Western

Electric Companys plant in Cicero from 1927Electric Companys plant in Cicero from 1927

to 1932.to 1932.

Illumination experimentsIllumination experiments

Relay assembly test roomRelay assembly test room

Interviewing programmeInterviewing programme

Bank wiring test roomBank wiring test room


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Conclusions of Hawthorne StudiesConclusions of Hawthorne Studies

Work is a group activityWork is a group activity

The need for recognition, security andThe need for recognition, security and

belonging is more important than physicalbelonging is more important than physicalconditions of work.conditions of work.

A complaint is commonly a symptomA complaint is commonly a symptom

manifesting disturbance of an individualsmanifesting disturbance of an individuals

current position.current position.


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Informal groups within an organization

Informal groups within an organization

create a strong social control over thecreate a strong social control over the

work habits and attitudes of an individual.work habits and attitudes of an individual.

An employees effectiveness areAn employees effectiveness are

conditioned by social demands from bothconditioned by social demands from both

outside and inside work environment.outside and inside work environment.


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B)Behavioral ApproachB)Behavioral Approach

Douglas McGregor: Theory X and Theory YDouglas McGregor: Theory X and Theory Y

Abraham Maslow: Need Hierarchy TheoryAbraham Maslow: Need Hierarchy Theory


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Summary ofBehavioral ApproachSummary ofBehavioral Approach

There should be flexible and jobs built aroundThere should be flexible and jobs built aroundemployees capabilities and aptitudesemployees capabilities and aptitudes

The administration and control process shouldThe administration and control process shouldbe humanized.be humanized.

There should be employee participation ,There should be employee participation ,measurement and evaluation of performance,measurement and evaluation of performance,

prompt feedback, rewards and recognitions.prompt feedback, rewards and recognitions.


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3) Modern Approach3) Modern Approach

A) Quantitative ApproachA) Quantitative Approach

B) Systems ApproachB) Systems Approach

C) Contingency ApproachC) Contingency Approach


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A) Quantitative ApproachA) Quantitative Approach

This approach gained momentum duringThis approach gained momentum duringSecond World War when countries were tryingSecond World War when countries were tryingto seek solutions to a number of new andto seek solutions to a number of new and

complex problems in warfare.complex problems in warfare. Operations Research (OR) teams wereOperations Research (OR) teams were

developed for analyzing operations anddeveloped for analyzing operations andcarrying out applied scientific researchcarrying out applied scientific research


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OR provided quantitative tools and techniquesOR provided quantitative tools and techniques

for making rational production decisions.for making rational production decisions.


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B) Systems ApproachB) Systems Approach

A common pitfall of all earlier approaches wasA common pitfall of all earlier approaches wasthat they stressed on one aspect of thethat they stressed on one aspect of theorganization on expense of another.organization on expense of another.

Classical approach emphasizes task andClassical approach emphasizes task andstructure, the behavioral approachstructure, the behavioral approachemphasizes people ,quantitative approachemphasizes people ,quantitative approachemphasizes mathematical decisionemphasizes mathematical decision--makingmaking


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Systems approach provides an integratedSystems approach provides an integrated

approach to management problems.approach to management problems.

Main contributors: Chester Barnard, GeorgeMain contributors: Chester Barnard, GeorgeHomansHomans, Philip Selznick, and Herbert Simon., Philip Selznick, and Herbert Simon.


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Key concepts of Systems ApproachKey concepts of Systems Approach

1) A system is a set of independent parts.1) A system is a set of independent parts.

2) It is based on the concept of holism2) It is based on the concept of holism


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C) Contingency ApproachC) Contingency Approach

Contingency means possibility of happening.Contingency means possibility of happening.

According to this approach there does not existAccording to this approach there does not exist

one best way of doing things under allone best way of doing things under allconditions.conditions.


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Session 2 Ppm

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