Th Evolution of Management Theory

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TH EVOLUTION OF

MANAGEMENT THEORY


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LESSON OBJECTIVE

Identify the major schools of management

thoughts and how they evolved;

Describe the concepts presented in each

school of management thoughts;

Discuss the limitations of each school of

management thoughts.


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Lets define the terms..

MANAGEMENT - the act of getting people together toaccomplish desired goals.

THEORY - body of principles offered to explain naturalphenomena

CLASSICAL thoughts which have been supersededbut which are still appreciated by some, often for theirrelative simplicity.

BEHAVIORAL - explains all mental and physical

activity in terms of response by glands and musclesto external factor (stimuli)


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Administrative Management Theory

Scientific Management Theory

Behavioral Management Theory

Management Science Theory

Organizational Environment Theory


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Classical Management Theory

A.Scientific Management

B. Classical Organization TheoryC. Bureaucratic Management

Approach


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SCIENTIFIC MANAGEMENT

DEVELOPED BY : FREDERICK TAYLOR

PERIOD: 1880S AND 1890S

CONCEPT:

A. AGAINST ON THE RULE OF THUMB

B. IMPROVE PRODUCTIVITY

C. THERE IS ONE BEST WAY

D. PROPER PAY RATES FOR THE JOB

BACKGROUND OF THE WORLD :

A. NO CLEAR CONCEPT OF

RESPONSIBILITIES TO WORKERS AND

MANAGERS

B. MANAGEMENT DECISIONS ARE MADE

FROM INTUITIONS OR HUNCH

C. NO EFFECTIVE WORK STANDARDS


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FOUR PRINCIPLES OF SCIENTIFIC

MANAGEMENT

Develop a scientific way for each element of anindividuals work, which replaces the old rule-of-thumbmethod.

Scientifically select and then train, teach, and developthe worker.

Heartily cooperate with the workers so as to ensure thatall work is done in accordance with the scientific waythat has been developed.

Divide work and responsibility almost equally betweenmanagers and workers. Managers take over all work forwhich it is better fitted than the workers.


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Other Contributor: HENRY GANTT

PERIOD: 1861 - 1919

CONCEPTS:

A. Reconsidered Incentive System

B. GANTT CHART


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OTHER CONTRIBUTORS:

THE GILBRETHS (FRANK AND LILLIAN)

PERIOD: 1868 till 1972

CONCEPTS:

A. INDIVIDUAL WORKERS WELFARE

B. FATIGUE AND MOTION STUDIESC. ENABLE WORKERS TO REACH THEIR FULL

POTENTIAL

D. EMPLOYEE MOTIVATION

E. PHYSICAL WELL BEING OF THE WORKERS


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LIMITATIONS OF SCIENTIFIC

MANAGEMENT

1. Ignores the human factor

2. Ignores the individual freedom and intangiblemotives like recognition, sense of achievement

3. Only concerned with the operational level andthe managerial levels are totally ignored.

4. Producers has to depend heavily on thespecialists

5. An expensive system as it requires theappointment of large number of specialist.


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CLASSICAL ORGANIZATIONAL THEORY

DEVELOPED BY : HENRI FAYOL

PERIOD : 1840S 1920S

CONCEPTS:

A. ONE SUPERVISOR

B. UNITY OF COMMANDC. EQUITY IN WORKER

TREATMENT

D. 5 PRIMARY FUNCTIONS OFMANAGEMENT

E. PRINCIPLES OF

MANAGEMENT


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5 PRIMARY FUNCTIONS OF MANAGEMENT

1. PLANNING

2. ORGANIZING

3. COMMANDING4. COORDINATING

5. CONTROLLING


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PRINCIPLES OF MANAGEMENT Division of work - limited set of tasks

Authority and Responsibility - right to give orders

Discipline - agreements and sanctions

Unity of Command - only one supervisor

Unity of Direction - one manager per set of activities

Subordination of Individual Interest to General Interest Remuneration of Personnel - fair price for services

Centralization - reduce importance of subordinates role

Scalar Chain - Fayols bridge

Order - effective and efficient operations

Equity - kindliness and justice

Stability of Tenure of Personnel - sufficient time for familiarity

Initiative - managers should rely on workers initiative

Esprit de corps - union is strength loyal members


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LIMITATIONS OF CLASSICAL

ORGANIZATION THEORY

Inappropriate for the present

Workers leave the organization because of

dissatisfaction

Concepts are just general like the principles of

division of labor and unity of command which

brought to conflict in the organization


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BUREAUCRATIC MANAGEMENT APPROACH

DEVELOPED BY: Max Weber

PERIOD: 1864-1920

CONCEPTS

A. DIVISION OF LABOR

B. FORMALIZATION OF RULES,PROCEDURES

C. HIERARCHY

D. MERIT SYSTEM

E. LEGAL POWER TOMANAGERS


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The IdealBureaucracy

Division oflabour

Management& ownershipis separate

Decisionsrecorded in

writing

Selectionbased ontechnical

qualification

Positionsorganised in

hierarchy

Managerssubject to

rules &procedures


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Behavioral Approach to Management

A. Hawthornes Experiment - Elton Mayo

B. Maslow theory - Hierarchy of NeedsC. Mc Gregor - Theory X and Theory Y


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HAWTHORNES EXPERIMENT

DEVELOPED BY : ELTON MAYO

PERIOD: 1927 to 1932CONCEPTS:

A. INDIVIDUAL MUST BE

TREATED AS MEMBERS OF A

GROUPB. SENSE OF BELONGINGNESS

RATHER THAN INCENTIVES

C. WORKING GROUPS HAVE

INFLUENCE ON THEWORKERS BEHAVIOR

D. MANAGERS MUST SEE THE

SOCIAL NEEDS OF THE

WORKERS


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HAWTHORNE STUDIES:

IMPLICATION Illumination Study (November 1924)

The mere practice of observing peoples behavior tends to alter their behavior (Hawthorne Effect)

Relay Assembly Test Room Study (1927-1932) Relationships between workers and their supervisors are powerful

Human interrelationships increase the amount and quality of worker participation in decision making

Interviewing Program (1928-1930) Demonstrated powerful influence of upward communication

Workers were asked for opinions, told they mattered, and positive attitudes toward companyincreased

Bank Wiring Room Observation Study (November 1931 - May 1932) Led future theorists to account for the existence of informal communication

Taken together, these studies helped to document the powerful nature of socialrelations in the workplace and moved managers more toward the interpersonal

aspects of organizing.


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LIMITATIONS

1. It emphasizes Human variable and ignores other variables

2. It over emphasize the importance of symbolic rewards and

undermines the role of material reward.

3. It emphasizes only on informal groups describing them as

major source of satisfaction for industrial worker. But many

research studies has revealed that informal group can only

make workers day more pleasant not his task.

4. It cannot work properly in emergency when quick decisions

are needed.


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HIERARCHY OF NEEDS

DEVELOPED BY : ABRAHAM MASLOW

PERIOD: 1950S 1970SCONCEPT:

A. LEVEL OF HUMAN NEEDS


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LIMITATIONS

1. The theory emphasizes on that worker should fulfill only one type of

need at a time but it depends on the nature and interest of a worker.

2. Theory arranged workers needs in a hierarchical order and he/she

fulfill their needs in hierarchical order but it depends on interest and

emergency of a worker.

3. The theory over emphasizes individual behavior of worker and

ignores other variables.

4. It emphasizes the motivation as the most important sources of an

organization and doesnt give importance to other factors.

5. Only fulfillment of workers needs is not sufficient for runningorganization but there are other variables also which play an important

role for running organization.


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THEORY X AND Y

DEVELOPED BY: DOUGLAS MCGREGOR

PERIOD: 1960

CONCEPTS:

A. Authoritarian management STYLE

B. Participative management STYLE


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THE DIFFERENCES


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LIMITATION

MAKES EMPLOYMENT HARDER

JUST WORK ON ASSUMPTIONS

THEORY X FOSTERS A DISTRUSTFULATMOSTPHERE

THEORY Y IS HARD TO UPHOLD IN REALITY


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THANK YOU

Th Evolution of Management Theory

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