Evolution of Management

BY:PURNATOYA DAS AMIT KUMAR JHA SUSHANT SEKHAR JHA PRABHAMYEE PRADHAN MOON MOON PATTANAYAK
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JAI PRAKASH GOYAL

APPROACHES TO MANAGEMENT

For an easier understanding of the development of management thought, there are many approachesClassical theory Neo-classical theory Behavioral science approach Quantitative approach Decision theory approach Empirical approach Systems approach

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CLASSICAL THEORY

It is the oldest school of thought about management representing traditionally accepted views about organizations. The writers who contributed towards this classical theory are Taylor, Fayol, Weber and Luther etc. Since this theory emphasizes on planning of work, the technical requirements of the organizations, principles of management and assumptions of rational and logical behavior, therefore it is also known as structural theory of organization. 3/25/13

MAIN IDEA OF CLASSICAL THEORY

There is one best way to perform a task

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The classical theory incorporates three view points.

CLASSICAL THEORY

SCIENTIFIC APPROACH

ADMINISTRATIVE APPROACH

BUREAUCRATIC APPROACH

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SALIENT FEATURES OF CLASSICAL THEORY

Dealt with anatomy of formal organization(division of labor, specialization, structure, scalar and functional processes) Emphasized on organization structure for coordination of various activities. Treated organizations as a closed systems. The impact of external environment was ignored. The efficiency of organization can be increased by making each individual efficient. Based on centralization of authority.
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No conflict b/w individuals and organizations.

MERITS OF CLASSICAL THEORY

v

Highlights the universal nature of management. Flexible in nature. Focused on functions of managers. Emphasized the role of money/ financial incentives in motivating workers.

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LIMITATIONS OF CLASSICAL THEORY

v

Narrow view of organization. Assumptions of closed system. Assumptions about human behavior. Economic rewards as main motivation. Lack of empirical verification. Lack of universality of principles. Excessive emphasis on rules and regulations.

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TAYLORS THEORY(Frederick. W. Taylor ) F. W. Taylor was born in 1856 in USA.

F. W. Taylor was the first person who insisted on the introduction of Scientific Methods In Management. F . W. Taylor is regarded as the Father Of Scientific Management. It implies the application of science to the management of a business concern 3/25/13

F .W . Taylors theory revolves around the following Principal Of Scientific Click to edit Master subtitle style Management

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PRINCIPLES OF SCIENTIFIC MANAGEMENT

In traditional management

Rule Of Thumb also known as (1) Replacing Rule Of Thumb TRIAL and Errors With Science method or Hit or miss method.

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This Principal meant that go on trying, falling and

Taylor advocates that there should be harmonious relationship between labour and management in order to (2) Harmony In Group Orresult harmony achieve the best possible of not discord (co-operation between business activity Labour and management)

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Workers should be made responsible for completing their portion of job , where as employers are made responsible for planning , organisiation , responsibility staffing ,directing and (3) Division of controlling business operations. between workers and management

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Management is responsible for their scientific education and training.

The management also provides opportunities to employees to grow (4) Scientific Selection, Training professionally by acquiring higher and Development of Worker degrees, qualification and rich experience

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The workers and management should try to achieve maximum the output in place of restricted output. (5) Maximum output in place of Maximum output. output will also be in the restricted interest of the society.

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Division of work: It refers to the division of work among various individuals in the organisation to bring about specialisation in every activity. Authority and Responsibility: It is a right or power to give orders to the subordinates. Responsibility means the duty which the subordinate is expected to perform by virtue of his position in the organisation. Discipline: Getting obedience to rules and regulations of the organisation. Discipline is necessary for the smooth running of the organisation. Unity of command: This principle emphasizes that one subordinate should receive orders from one superior only. Unity of Direction: Fayol expressed this principle to mean one head and one plan for group of activities having the same objectives. 3/25/13

HENRY FAYOLS PRINCIPLES OF MANAGEMENT

Subordination of individual interest to general interest: The interest of organization must prevail upon the personal interest of individuals. The business enterprises is superior to individuals. Remuneration of personal: The employees must be remunerated fully for their services rendered to the organization. The method of employee remuneration shpuld be just fair to everybody. Centralization: It means concentration of authority at one place or at one level in the organization. In a small organization where managers orders go directly to subordinates. There is absolute centralization. Scalar Chain: Scalar chain is the chain of superior ranging from the ultimate authority to the lowest level in the organization.

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Order: A place for everything and everything in its place. Fayol dealt with order and material things and also social order. There will be perfect social order in the organisation if there is right person in the right place. Equity: It requires fair judgement in dealing with human resources. Personnel must be treated with kindness and equity if devotion and loyality are expected of them. Stability of tenure of a personnel: This principal calls for lowest possible turnover of personnel for the well being of the concern. Moreover the employee should not be rotated at different jobs very frequently. Initiative: Fayol wanted that the subordinates should be given an oppurtunity to take some initiative in thinking and executing the plans. Espirit De Corps(Union in strength): The spirit of loyality and devotion which unites the members of group. It also means the regard for the group to which one belongs.

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BUREACRACY -- Max Weber (1916)

>To Weber, this represented an ideal or
completely rational form of organization.

>Used to describe a structure based on the sociological concept of rationalization.

Key Features of Bureaucracy:

Clear division of labor: each task performed by employees is formally created and recognized as an official duty (yours and no one elses). Specialization. 3/25/13

Formal rules and regulations: uniformly guide employee behavior. Provide continuity and stability to work environment. Reduce uncertainty about task performance.

Impersonal relationships: managers dont get involved in employees personalities and personal preferences. No emotional attachments. Provides for fairness.

Employment based entirely on technical competence: get job because you can do the job, not because of who you know. Rigid selection criteria. No arbitrary dismissal or promotion.

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