Management Thought

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Schools of Management Thought

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Schools of Management Thought

The Classical School The Human Relations School The Decision Theory School The Management Science School The System Theory School The Contingency Theory School

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Classical School
The Scientific Management School The Management Process School The Bureaucracy Theory School

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Scientific Management
Propounded by Frederick W. Taylor Father of Scientific Management (1856-1917)

that kind of management which conducts a business or affairs by standards established by facts or truths gained through systematic observation, experiment, or reasoning.
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Scientific Management
Use of Scientific Method applied to work
Replace rule of the thumb Observation, Measurement, Experimentation, Analysis, Rationality and Reasoning are key instruments for developing managerial systems

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Scientific Management
Basic Components of Scientific Management
Determination of standards of performance Functional foremanship Responsibilities of management Differential piecework of wage payment Mental revolution
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Scientific Management
Determination of Standards of Performance
Famous time & motion study
Involves analysis of all the operations and motions involved in each job and then the motions are times with a stopwatch. Standards of performance are determined on the basis of time taken on the performance of each element of the job together with the time needed for rest and avoidable delays. An analysis of motions involved in each operation leads to the identification and elimination of wasteful motions
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Scientific Management
Functional Foremanship
Separation of planning from doing
Each functional foreman is a specialist in only one kind of work Functional foremen should plan various aspects of each workers job and issue instructions on their specialty This shifted the planning function formerly performed by workers and supervisors to functional specialists like industrial engineers, quality control experts, safety experts etc. This increased the cost of managing but reduced the cost of operations

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Scientific Management
Responsibilities of Management
Managers should accept the responsibility for planning, directing and organizing and perform them in a scientific way. Management should analyze all the operations and develop scientific methods of operations. Workers should be scientifically selected and trained Job specifications - clear, simple and distinct Develop optimum physical environment
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Scientific Management
Differential Piecework System of Wage Payment
piece rate systems of pay

establishment of daily output targets for all workers, with monetary rewards for exceeding targets and penalties for shortfalls

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Scientific Management
Mental Revolution
Complete mental revolution in the attitudes of managers toward their fellowman, workers and the ways in which they handle their daily problems. Without this complete mental revolution on both sides scientific management does not exist

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The Management Process School

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Regards management as a process Developed by Fayol functions of management; Planning, organizing , command, coordination and control

14 principles of management regarded as universal principles applicable in all organizations.

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Bureaucracy Theory School of Management

Propounded by Max Weber
1.

There should be a continuing body of rules and all organizational work should be performed in accordance with these rules.

2. Specific areas of competence should be determined on the basis of division of labor, and adequate authority should be delegated to incumbents for the performance of organizational work 3. A hierarchy of positions should provide for the supervision of each office by a higher authority
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Bureaucracy Theory School of Management

4. Appointments and promotions should be made on the basis of universalistic criterion of demonstrated competence. Further people placed in supervisory positions should be trained in the rules and requirements of positions. 5. All administrative acts, actions and decisions should be recorded in writing so as to provide for future scrutiny and permanent record.

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Limitations of Classical Theories

View organizations as a machine subject to certain laws Assume that employees can be motivated by financial incentives alone, and ignore their social and psychological needs They are based on the assumption that productivity is the only criterion of efficiency Overall approach is mechanistic

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The Human Relation School

Also termed as neo-classical

It emphasises on the human dimension of management

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The Human Relation School

Hawthorne Studies
Moved thinking from economic man to social man. Increased awareness about employee attitudes and group attitudes New hypothesis: motivation to work, morale, and productivity are related to social relations among the workers and between the workers and the supervisor , and not to the physical conditions at work The workers perceived themselves as a work group

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The Human Relation School

Hawthorne Studies
The group had developed norms relating to production as well as personal conduct among themselves and with the supervisor Organization are more than formal structures of positions and authority responsibility relationships they are indeed social system a system of elite, informal status system, rituals and a mixture of logical and non logical behavior

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The Decision Theory School

Propounded by Simon Focuses on the decision, the decision making process , the decision maker and the environment of the decision maker Looks at management through this keyhole and include in it the entire field of enterprise operation and its environment Decision making is though central to managing, is only an aspect of management and not the totality of management
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The System Theory School

System: a collection of parts operating interdependently to achieve a common purpose. General systems theory: an interdisciplinary area of study based on the assumption that everything is part of a larger, interdependent arrangement.

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The System Theory School

Open System
A system that takes resources for its external environment and converts them into goods and services that are then sent back to that environment for purchase by customers. Inputs: the acquisition of external resources. Conversion: the processing of inputs into goods and services. Output: the release of finished goods into the environment.
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The System Theory School

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The Contingency Theory School

Rejects the universality thesis and emphasis that there is no best way to manage. Focuses on the inter-relationships within and among the subsystems as well as between the organization and its environment Emphasizes the multivariate nature of organizations and attempts to understand how organizations operate under varying conditions and in specific situations Regards management as situational

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