Unit2 Evolution Mgmt

8/11/2019 Unit2 Evolution Mgmt

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History and Evolution Of

Management Thought

CHAPTER-2


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Objetives of The Cha!ter

To "nderstand

Early Approaches to management

Classical Approach

Behavioral Approach

Quantitative Approach

Modern Approaches to management

Emerging approaches in management thought.


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Introduction

Both theory and history are indispensable

tools for managing contemporary

organizations.

A theory is a conceptual framewor for

organizing nowledge that provides a

blueprint for various courses of action.


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Early A!!roahes to Management

#ame Period Contribution

!obert "wen $%%$-$&'& Pro!osed legislative reforms toim!rove (or)ing onditions of labor

CharlesBabbage

$%*2-$&%$ Advoated the one!t or +divisionof labor,

Andrew #re $%%&-$&'% Advoated the study ofmanagement

Charles $upin $%&-$&%.

%enry !.&owne $&-$*2 Em!hasi/ed the need to onsidermanagement as se!arated field ofstudy and the im!ortane ofbusiness s)ills for running abusiness0


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Classial A!!roah

*orms the foundation for the field of

management

&he schools for management thoughts are3 )cientific Management

Administrative &heory

Bureaucratic Management


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C(A))ICA( A--!"AC%

4. )CIE+&I*IC MA+A,EME+&5*./. &A1("!

6 -iece rate incentive system

6 &ime and motion study

6 ,antt scheduling chart5%enry (aurence ,antt7. A$MI+I)&!A&IE &%E"!15 %E+!1 *A1"(

6 &echnical

6 Commercial

6 *inancial6 )ecurity

6 Accounting

6 managerial


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C(A))ICA( A--!"AC%

8. B#!EA#C!A&IC MA+A,EME+&5 MA2

/EBE!

6 /or specialization and division of labor

6 Abstract rules and regulations

6 Impersonality of managers

6 %ierarchy of organization structure


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1ientifi Management

Early $*s

It is defined as 9that ind of management

which conducts a business or affairs by

standards established: by facts or truthsgained through systematic observation:

e;periment: or reasoning.@

&wo maor managerial practices3

-iece5rate incentive system

&ime5and5motion study


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4ran) and 6illian 7illbreth

4>>547D

Motion study involves finding out thebest seuence and minimumnumber of motions needed tocomplete a tas.

E;plore new ways for eliminatingunnecessary motions and reducingwor fatigue.


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HE#R8 607A#TT9$&:$-$*$*;

/ell nown for &as F and 5 bonus

system 5&he ,antt chart

If the worer completed the wor

fast: i.e.: in less than the standardtime: he received a bonus.

It is a )imple chart that compares

actual and planned performances.


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6imitations of

1ientifi Management

$o not focus on the management of an

organization from a manager0s point of

view.

people were 9rational< and were motivated

primarily by the desire for material gain.

It also ignored the human desire for ob

satisfaction.


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Administrative Theory3

It focused on principles that could be

used by managers to coordinate the

internal activities of organizations. %enri *ayol =4>D4547G@


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Henri 4ayol 9$&$-$*2';

*ourteen principles3

$ivision of wor

Authority and responsibility

$iscipline

#nity of command

#nity of direction

)ubordination of theindividual interest to the

general interest

!emuneration

Centralization3

)calar chain "rder

Euity

)tability

Initiative Espirit de corps

=team spirit@


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6imitations of


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%A/&%"!+E )$IE)

6 Illumination studies

6 !elay assembly room study

6 Ban wiring room study


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Contributions of >5488

Advocated the concept of Hpowersharing0 and integration

Elton Mayo 4>>5488

foundation for the %uman !elationsMovement

AbrahamMaslow

4J> F4?J

motivated by a hierarchy of needs

$ouglasMc,regor 4J54D &heory 2 and &heory 1 personalities

Chris Argyris 5 Classified organizations based onthe employees0 set of values


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Mary Par)er 4ollet 9$&:&-$*..;

-ower: according to *ollet: was the ability

to influence and bring about a change.

Concept of integration: which involves

finding a solution acceptable to all group

members


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Elton Mayo 9$&:&-$*..;

-re5udgment *indings

'ob performancedepends on the

individual worer

&he group is the ey factorsin ob performance

*atigue is the mainfactor affectingoutput.

-erceived meaning andimportance of the wordetermining output.

Management setsproduction standards

/orplace culture sets itsown production standards.


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Abraham Maslo(

%is theory rested on these assumptions.

-hysiological needs

)afety or security needs

Belongingness or social needs

Esteem or status needs

)elf actualization or self5fulfillment needs.


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Maslow0s +eed %ierarchy

)elf actualization needs

Esteem needs

)ocial needs

)afety needs

-hysiological needs


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=ouglas Mgregor

Theory > Theory 8

Most -eople disliewor

/or is a natural activitylie play.

Most -eople must becoerced and threatenedbefore they wor.

-eople are capable of selfdirection and self control

Most people prefer tobe directed. &hey avoidresponsibility and havelittle ambition.

-eople become committedto organizationalobectives if they arerewarded in doing so.


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Chris Argyris

Maturity F immaturity theory

6 -eople progress from a stage of immaturity

and dependence to a state of maturity andindependence.

6 Model I and Model II organization analysis.

4. Model I organization are manipulative7. Model II organization are open to learning


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?uantitative A!!roah

It includes the application of statistics:

optimization models: information models

and computer simulations. More

specifically: this approach focuses onachieving organizational effectiveness.

&hree main branches3

Management )cience "perations Management and

Management Information )ystems.


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Management 1iene

It stresses the use of mathematical

models and statistical methods for

decision5maing.

Another name is the "perations

!esearch.


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O!erations Management

It deals with the effective management

of the production process and the

timely delivery of an organization0s

products and services.


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Management

@nformation 1ystems

Management information systems

focuses on designing and

implementing computer5based

information systems for business

organizations.


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Modern A!!roahes

to Management

)ystems &heory

Contingency &heory


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1ystems Theory

Resoures

(abor Materials Capital Machinery Information

Managerial and

Tehnologial

Abilities -lanning "rganizing )taffing

(eading Controlling &echnology

,oods

)ervices -rofits and

losses Employee satisfaction

Inputs &ransformation process "utputs

*eedbac


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Contingeny Theory

1ystems ie(!oint

%ow the parts fits

together6Individual

6,roup6"rganization6environment


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Emerging A!!roahes @n

Management Thought

/illiam "uchi: outlined new theory called&heory K.

It is the blend of positive aspects of both

American and 'apanese management styles. Quality Management is a managementapproach that directs the efforts ofmanagement towards bringing about

continuous improvement in product andservice uality to achieve higher levels ofcustomer satisfaction and build customerloyalty.


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+ow you are familiar with

6 $ifferent classification of managementapproaches

6 A few theorists and theories

6 Early Approaches to Management6 Classical Approach

6 Behavioral Approach

6 Quantitative Approach6 Modern Approaches to management

6 Emerging approaches in management

thought.


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&han youLLL

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Unit2 Evolution Mgmt