Mgt. Thoughts 24.09.2012 Session-III

7/31/2019 Mgt. Thoughts 24.09.2012 Session-III

1/30

1

EVOLUTION OF

MANAGEMENT THOUGHTS

byDr. Sitansu Panda,

Associate Professor (HRM),

Siva Sivani Institute of Management .


2/30

2

EVOLUTION OF MANAGEMENT

THOUGHTS

INTRODUCTION

Time, environment, old arts, youngscience

Schools of Thought

Historical PerspectiveCause and effect relationship

Old as mankind

Strong philosophical base


3/30

3

PHASES

Classical period 1870 -1920

Neo Classical period 1920 -1950

Modern period 1950 -1988Globalization period 1988till date


4/30

4

Classical Period

The Classical school of thought began around 1900and continued into the 1920s.

Traditional or classical management focuses onefficiency and includes bureaucratic, scientific andadministrative management.

Bureaucratic management relies on a rational set ofstructuring guidelines, such as rules and procedures,hierarchy, and a clear division of labor.

Scientific management focuses on the "one bestway" to do a job.

Administrative management emphasizes the flow of

information in the operation of the organization.


5/30

5

Bureaucracy

Weber (1864-1920), known as the Father of Modern Sociology,analyzed bureaucracy as the most logical and rationalstructure for large organizations.

Bureaucracies are founded on legal or rational authoritywhich is based on law, procedures, rules, and so on.

Positional authority of a superior over a subordinate stemsfrom legal authority.

Charismatic authority stems from the personal qualities of anindividual.

Efficiency in bureaucracies comes from: (1.) clearly definedand specialized functions; (2.) use of legal authority; (3.)hierarchical form; (4.) written rules and procedures; (5.)technically trained bureaucrats; (6.) appointment to positionsbased on technical expertise; (7.) promotions based oncompetence; (8.) clearly defined career paths.


6/30

6

Principles of Bureaucracy

1.Division of labour/ Degree of Specialization2. Hierarchy of authority and subordinate relationship

3. Governing of Rules4. An idealistic bureaucratAnalysis of the principles Bureaucracy is a formal system of organization.

A manager holds a position in an organization. Fromthis he derives authority. People should occupy their position based on

performance. Rules are to be followed impartially/neutrally without

any favouritism. This responsibility lies with themanager.


7/307

SCIENTIFIC MANAGEMENT

Frederick Winslow Taylor known as the father ofscientific management.

Born in 1856 at Boston, Massacusetts.

Did his apprenticeship in Enterprise Hydrolic Workin Philadelphia.

Joined as a labourer in Midvale Steel Company.

He rose to the position of Chief Engineer by virtueof his intelligence.

He worked as a General Manager in ManufacturingInvestment Company in Philadelphia where hepropounded the concept of Scientific Management.


8/308

Background to the Development of

Scientific Management

During the later part of 19th Century.

Industrial Revolution to the maturity stage.

American business and industry substantiallyexpanded.

New managerial class.

Simple day-to-day problems to complicated

problems. Needed comprehensive and integrated approach

to manage industry.

Different studies conducted giving rise to different

thoughts


9/309

Earlier stage of industrialization

Workers inefficient

Less commitment

Improving efficiency


10/3010

contributors

Henry R. Towne (1844-1924)

- Wrote a paper entitled The Engineer asan Economist.

Term Scientific Management was

coined by Louis D. Brandies. Charles Babbage (1792-1871)


11/3011

F.W. Taylors contribution

First paper entitled A Piece Rate System

Another paper Shop Management Paper wrote On the Art of Cutting Metals

Widely known book entitled,

Principles and Methods of ScientificManagement.


12/3012

Taylors Concept of Scientific

Management

Collaboration between management and workersthrough the application of scientific methods.

Four principles:

Daily Defined Task

Standardized Working Conditions

Reward for Success Penalty for Failure

Later on he modified the principles.


13/3013

Causes Behind Problem

WorkersLaziness

Slower in production -pace to support followworkersUnilaterally follow unions wage demandAvoid rate-cutting

ManagementFair days work-unknownManage by Thumb and IntuitionHighly AuthoritarianOnly weapon rate cutting


14/3014

Remedial measures

Technology oriented

Time & Motion studyWork Study

Method Study

Innovation of tools

and Techniques

Worker Oriented

Skill developmentRequisite training

Right Selection

Proper placement

Money is the solemotivator


15/30

15

Basic Concepts

Development of a true science of Work

Scientific Selection and Training of Workers Equal Division of Work Between

management and workers

Co-operation between management andworkers


16/30

16

CRITICISM OVER TAYLORISM

Economic perspective only

Individual oriented e.g. Schmidth case

Money only lubricant, men cogs in machine Marx Labour Value Theory denied

Rabble Hypothesis

Anti-unionism

Conflict Maximising approach

Functional foremanship Dragged to court of law (1911)

APPRECIATION

Innovation

Relevant in Globalized World Human Engineering

Money motivates to certain extent


17/30

17

Administrative Management

Administrative management emphasizes themanager and the functions of management.

Henri Fayol (1841--1925), known as the Father ofModern Management, was a French industrialistwho developed a framework for studyingmanagement.

He wrote General and Industrial Management.

His five functions of managers were plan, organize,command, coordinate, and control.


18/30

18

Henri Fayol 14 Principles

His fourteen principles of management included

1.Division of work,

2.Authority and responsibility,

3.Discipline,

4.Unity of command,

5. Unity of direction,6. Subordination of individual interests to general

interests,

7.Remuneration of personnel,


19/30

19

14 Principles contd.,

8.Centralization,

9. Scalar chain,10.Order,

11.Equity,

12.Stability of tenure of personnel,

13.Initiative, and

14.Esprit de corps (union is strength).


20/30


21/30

21

Mary Parker Follett's concepts

Mary Parker Follett's concepts included theuniversal goal, the universal principle, and the Law

of the Situation.

The universal goal of organizations is anintegration of individual effort into a synergisticwhole.

The universal principle is a circular or reciprocalresponse emphasizing feedback to the sender (theconcept of two-way communications).

Law of the Situation emphasizes that there is no

one best way to do anything, but that it all depends


22/30

22

HUMANRELATIONS

THOUGHT


23/30

23

Elton Mayo

Born in 1880 at Adelaide, Australia

Changed many professions

Travelled from Scotland to West Africa and back to Australia. Professor of Industrial Research at Harvard University

Graduate School of Business Administration in 1920.

Hawthorne Experiments conducted at the Hawthorne plant ofWestern Electrical Company during 1924-1932.

Influenced by the writings of the psychologists, Pierre Janetand Sigmund Freud.

Study combination of psychology, physics, economics,physiology to focus behaviour of workers.


24/30

24

HUMAN RELATIONS THOUGHT

Elton Mayo and associates, George Pennock

Prof. Harvard Business School

Between World War-I and II

To address industrial problems

VENUE AND AREA OF CONCERN

Philadelphia textile Mills

Mule spinning Department

Hawthorne plant, Chicago

Industrial Cities, USA

Aching foot, decreased production

Situation morbid


25/30

25

SERIES OF EXPERIMENTS

I. Illumination Experiment Production disproportionatelyincreased

II. Relay Assembly Test 6 girls, Relays assembled, Informalfriendly, Lacking supervision, Dignity, facilities, production 2800to 3200 Unit

Control room 3400 Unit (Contrast)

III. 2nd Relay Assemble Test

Mica Splitting test

III. Mass Interviewing Programme Hypothesis (a) Group Teamspirit (b) Workgroup can become social (c) Lacking supervision-Cheesiness

IV. Personal Counselling Morale, ethics, Group effort

V. Bank wiring test Informal group vital factor, conflict,cooperation, coordination, compromise, accommodationacculturisation

Money could not motivate


26/30

26

BEHAVIOURAL THOUGHT

Douglas McGregor

Contributing disciplines psychology, medicine,Law, Political Science, Sociology

Background

Cohesive groups produce less

Causes explored

Behaviour, motivation

Stimulus Response


27/30

27

SYSTEMS THOUGHT

Input, Output, Through put

FOS ISS SS

Factors, Sub-factors,

Micro level to Macroperspective

Behavior Studied, Controlled ,modified,

predicted OB people, perception, personality, morale

OB Tools, OD Technique


28/30

28


29/30

29

IN

DIV

IDUAL

As economic Scientific schools

Social perspective Human Relationschool

Psychological perspective Behavioral

school

Multidiscipline Systems school


30/30

30

Management in the 21st century

Complex

Competition Challenges

Capable

Documents

Mgt. Thoughts 24.09.2012 Session-III