POM MGT Thoughts

8/7/2019 POM MGT Thoughts

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Evolution of Management

Thought


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Various contributions of

management schools

j Classical school of

management

j Behavioral management theory

jQuantitative school ofmanagement

j Contingency school of

management

jQuality school of management

jManagement in the future


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Classical scientific

thoughtsClassical administrative

thoughts


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During the industrial revolution

when new problems related to

the factory system began toappear, managers were unsure

to how to train employees ordeal with increased labour

dissatisfaction.


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Contributors ofClassical Scientific

thoughtsFrederick Taylor

Henry L.GanttFrank and Lillian Gilberth


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Frederick Taylor Scientific

Management He is often called the

father of Scientific

Management He believed that

organization should

study tasks and developprecise procedures.


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Fundamental principles given by

Taylor under scientific approach

Replacing rules of thumbwith science.(Organizedknowledge).

Obtaining harmonyrather than discord, ingroup action.

Achieving cooperation ofhuman being rather thanchaotic individualism.


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Working for maximumoutput rather thanrestricted output.

Developing all workers tothe fullest extent possible

for their own and theircompanys highestprosperity.


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Essentials & Tools of Scientific

Management Separation of planning and doing

Functional foremanship

Job analysis Standardization

Scientific selection and Training of

workers Financial incentives

Economy

Mental revolution


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Henry Gantt

Henry Gantt an associate ofTaylors, developed the Gantt chart,a bar graph that measures planned

and completed work along eachstage of production.

Based on time instead of quantity,

volume or weight, this visualdisplay chart has been a widelyused planning and control tool,since its development in 1910.


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Frank and Lillian Gilberth This study wasabout job motion,this was the first

motion studydesigned to isolatethe best possible

method ofperforming a givenjob.


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Developing the spirit of

cooperation betweenworkers andmanagement.

Dividing work betweenworkers andmanagement in almost

equal shares, with eachgroups taking over thework for which it is

best fitted.


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Classical Administrative school Scientific

managementfocused on the

productivity ofindividuals, theclassicaladministrative

approachconcentrates on thetotal organization.


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Contributors

Max Weber

Henry FayolMary parker Follet

Chester L. Barnard


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Max Weber

A formalorganizationalstructure, wherespecific rules werefollowed wasimportant.

A Non Personal,,

objective form oforganization wascalled asBureaucracy.


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Bureaucracies have the following

characteristics

A well definedhierarchy

Division of labour andspecialization

Rules and regulations

Impersonalrelationship between

managers andemployees

Competence

Records


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Henry Fayol A French mining engineer,

developed 14 principles of

management based on his

management experience.

These principles provide

modern day managers with

general guidelines on how asupervisor should organize

his department and manage

his staff.


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Henry Fayol 14 Principles

Division of work Authority and

responsibility

Discipline

Unity of command

Unity of direction

Subordinate of

individual interesttowards group

interest

Remuneration toPersonnel

Centralization

Scalar chain

Order

Equity

Stability to tenure of

personnel Initiative

Esprit de corps


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Mary parkerFollett

In this study she began toexplain about Ethics, power andleadership

She encourages managers toallow employees to participate indecision making.

She stressed the importance ofpeople rather than techniques a concept very much before her

time.


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Ethics

Ethics refers to asystem ofmoralprinciples a sense ofright and wrong andgoodness andbadness, and theirmotives and

consequences. Ethics corresponds to

basic human needs.


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Chester L . Barnard

He introduced the concept ofinformal organization.

He felt that these informalorganization providednecessary and vital

communication function forthe overall organization andthat they could help the

or anization accom lish its


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Barnard felt that itwas particularlyimportant for

managers todevelop a sense ofcommon purpose

where a willingnessto cooperate isstrongly

encouraged.


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Behavioral Management Theory

The behavioralmanagement theory

is often calledhuman relationsmovement because

it addresses thehuman dimension ofwork.


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Behavioral theorists believedthat a better understanding

ofhuman behavior at worksuch as motivation, conflicts,expectation and group

dynamics improvedproductivity


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Contributors

Elton Mayos

Abraham Maslow

Douglas McGregor


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Elton Mayos

Elton Mayo and other undertookthe famous experiments at the

hawthorne plant of the westernElectric Company.

The Hawthorne experiments

consists of two studies.


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The first study was conducted by agroup of engineers seeking todetermine the relationship of lightinglevels to workers productivity they

discovered that workers productivityincreased, as the lighting leveldecreases that is until the employees

were unable to see what they weredoing, after which performancenaturally declined.


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A second group of experiment

began, they supervised a group offive women in a bank wiring room.They gave the women special

privileges such as the right to leavetheir workstations withoutpermission, take free periods,variation in pay levels and workdays.

This experiment also resulted insignificantly increased rates ofproductivity.


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Abraham Maslow

He was a practicingpsychologist developed

one of the most widelyrecognized need theories,a theory of motivation

based on a considerationof human needs.


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Douglas McGregor

He was mainly influenced byHawthorne studies and

Maslow. He believed that twobasic kinds of managersexist.

Theory X Manager

Theory Y Manager


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Theory X Managers:

They has a negativeview of employees

and assumes thatthey are lazy,untrustworthy and

incapable of assumingresponsibility


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Theory Y Managers

They assumes thatemployees are not

only trustworthyand capable ofassuming

responsibility, butalso have highlevels of motivation.


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Quantitative school of

Management The quantitative

approach to

management involvesthe use of quantitativetechniques such as

statistics, informationmodels, computersimulation to improve

decision making.


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Various branches of quantitative

approach Management science

Operation management

Management Informationsystem

System Management theory


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Management science

The management scienceschool emerged to treatthe problem associated

with global issues. This view encourages

managers to usemathematics, statisticsand other quantitativetechniques to makemanagement decisions.


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Managers can also use

the computer models tofigure out the best wayto do something

saving both money andtime.

Mathematical

forecasting Inventory modeling

Queuing theory


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Operation management

It focuses onmanaging the

process oftransformingmaterial, labor,

and capital intogoods and/or

services.


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Operation management Effective operation management

is a concern for bothmanufacturing and serviceorganization.

The transformational process isthe actual set of operation oractivities through which variousresources are utilized to producefinished goods or services ofvalue to customer/clients.


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Management Information

System A Management

Information Systemorganize past, present and

projected data from bothinternal and externalsources and processes it

into usable information,which it then makesavailable to managers at

all organizational levels.


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System Management Theory

A system is an interrelatedset of element functioning as

a whole. The system managementtheory has had a significanteffect on managementscience.


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Input Output Model

Input

Transformation process

Output

External Environment

Re-energizing the system


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Contingency School of

Management Contingencyapproach ishighly dependenton the expressionand judgment of

the managers ina givenorganizational

environment.


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Contingency management

recognize that there is no onebest way to manage in thecontingency perspective,

managers are faced with thetask of determining whichmanagerial approach is likely to

be most effective in a givensituation


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Quality school of Management The quality school of

management is acomprehensiveconcept for leading

and operating anorganization aimedat continually

improvingperformance byfocusing on

customers needs.


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Features - quality school of

management Organization make up

Quality of goods and services

Continuous improvement ingoods and services

Employees working in team Developing openness andtrust


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Quality school of management-

ApproachKaizen approach

R

e-engineering approach


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Kaizen - Approach

Kaizen is thecommitment to

work towardssteady, continualimprovement.


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Kaizen approach

In this process, everyone inthe organization participating

by identifying opportunitiesfor improvement, testing newapproaches, recording the

results and recommendingchanges.


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Re-Engineering Approach

The re-engineeringapproach to

management focuseson creating changeand fast, it centers on

sensing the need tochange, and reactingeffectively to change

when it comes.


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Management in the future

Managers must excel in theirleadership responsibilities toperform numerous different

roles. The commitment to meet

customer needs 100% of the

time guides organizationstowards quality managementand continuous improvement of

operations.


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Functions of Management

Planning

Organizing

Staffing

Leading

Controlling


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PLANNING

Determining goals

and action

plans for attainingthem.

LEADING

Influencing

others to perform

tasks necessary

to attain

organizational goals

CONTROLLING

Monitoring

PerformanceAnd Taking

Corrective Action

ORGANIZING

Assigning

tasks and allocatingresources to implement

Plans.

Major Managerial Functions


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Managers- are the people responsible for

supervising/ managing theorganizations resources to meet itsgoals.

- They are responsible for the works of

people directly working to them


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Interpersonal RolesInterpersonal Roles

Figurehead role:symbolizes theorganization and what it istrying to achieve.

Leader role:train, counsel,mentor and encouragehigh employee

performance. Liaison role:link and

coordinate people inside

and outside the

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Informational RolesInformational Roles

Monitor role:analyzesinformation from both theinternal and externalenvironment.

Disseminator role:managertransmits information toinfluence attitudes andbehavior of employees.

Spokesperson role:use ofinformation to positivelyinfluence the way people inand out of the organization

respond to it.

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Decisional RolesDecisional Roles

Entrepreneur role:deciding upon new projectsor programs to initiate and invest.

Disturbance handler role:assumeresponsibility for handling an unexpected

event or crisis. Resource allocator role:assign resources

between functions and divisions, set budgetsof lower managers.

Negotiator role:seeks to negotiate solutionsbetween other managers, unions, customers,or shareholders.


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Managerial SkillsManagerial Skills

There are three skill sets that managers need toperform effectively.

1. Conceptual skills

2. Human skills

3. Technical skills:

All three skills are enhanced through formaltraining, reading, and practice.


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Technical Skill

This skill requires theability to use a specialproficiency or

expertise to performtasks.

Eg: Accountants,

engineers, MarketResearcher etc.,

k ll


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Human skill

This skill demonstratethe ability to work incooperation with others.

H

uman skill emerge inthe workplace as a spiritof trust, enthusiasm andgenuine involvement in

interpersonalrelationship.


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Conceptual skill

This skill calls for theability to thinkanalytically.

Managers may acquirethese skill throughformal education andthen further

development by trainingand job experience.


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Management focus in 21st

century Technology

Globalization

Productivity Effectiveness and efficiency


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Business Organization The process of identifying and

grouping the work to be performed

defining and delegating responsibilityand authority and establishingrelationship for the purpose ofenabling people to work mosteffectively together in accomplishingobjectives

Types of Business


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Types of BusinessOrganization

Individual institutions

Sole proprietorship

Partnership Joint stock company

Co operative societies

Government institutions Departmental undertaking

Public corporation

Government company


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Sole proprietorship The sole proprietorship is that form

of business organization which is

owned and controlled by a singleindividual.

He receives all the profits and risksall of his property in the success orfailure of the organization.


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Features/characteristics Individual ownership and control

Unlimited liability

No separate legal entity Enjoyment of entire profit

Simplicity

Self employment

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POM MGT Thoughts