EVOLUTION OF MANAGEMENT THOUGHTS

By Sreerupa Rath

DIFFERENT SCHOOL OF THOUGHTS

CLASSICAL APPROACH

NEO- CLASSICAL THEORIES

BEHAVIORAL APPROACH QUANTITATIVE APPROACH SYSTEMS APPROACH CONTINGENCY THEORY MODERN THEORY

CLASSICAL APPROACH
Classical management thought is divided into three separate school of thoughts
Scientific Management Administrative Theory Bureaucratic Management

SCIENTIFIC MANAGEMENT
One best way to do each job

Earliest advocates of scientific management

Frederick W.Taylor Frank Gilbreth Lillian Gilbreth Henry Gantt

Frederick Winslow Taylor

Father of scientific management

STEPS IN SCIENTIFIC MANAGEMENT: Replaced old rule of thumb methods to eliminate soldiering Selecting,training,teaching and developing workers Supervise employees to make sure they follow the prescribed methods for performing their jobs Continue to plan the work but use workers to actually get the work done

Major managerial practices that emerged from Taylors approach

Piece-rate incentive system Time and motion study

FRANK and LILLIAN GILBRETH

Frank Gilbreth is considered as the father of

motion study
Lillian Gilbreth was associated with the research

pertaining to motion study

Motion study involves finding out the best

sequence and minimum number of motions needed to complete a task

HENRY LAURENCE GANTT

Was a close associate of Taylor Developed the Gantt chart

LIMITATIONS OF SCIENTIFIC MANAGEMENT

It revolves round problems at the operational

level
The proponents were of the opinion that people

were motivated primarily by the desire for material gain

Scientific management theorists ignored the

human desire for job satisfaction

ADMINISTRATIVE THEORY
Focused on principles that could be used by

managers to coordinate the internal activities of organizations

Most prominent administrative theorist was Henri

Fayol

HENRI FAYOL
Prominent European management theorist Wrote General and Industrial Management Business operations of an organization could be

divided into six activities Technical Commercial Financial Security Accounting Managerial

FOURTEEN PRINCIPLES OF MANAGEMENT

Division of work Authority and Responsibility Discipline Unity of Command Unity of Direction Subordination of the individual interest to the general

interest Remuneration Centralization Scalar Chain Order Equity

 Stability of tenure of personnel

Initiative
Espirit de corps

BUREAUCRATIC MANAGEMENT
Max Weber Father of Bureaucratic

Management theory Theory of bureaucracy is based on a rational set of guidelines for structuring organizations Major characteristics of Webers ideal bureaucracy Work specialization and division of labour Abstract rules and regulations Impersonality of managers Hierarchy of organization structure

LIMITATIONS OF BUREAUCRATIC MANAGEMENT AND ADMINISTRATIVE THEORY

Classical theorists ignored important aspects of

organizational behaviour.They stressed productivity above other aspects of management

Webers

concept of bureaucracy destroys individual creativity and the flexibility to respond to complex changes in the global environment

NEO- CLASSICAL THEORIES

BEHAVIORAL APPROACH
It emphasized on the human element

Behavioral thinkers

Mary Parker Follet Abraham Maslow Douglas McGregor Chris Argyris Elton Mayo Rensis Likert

MARY PARKER FOLLET: Focusing on Group Influences

Importance of human element in organizations
Critical role of managers Organizations function on the principle of power

with rather than power over

Advocated the concept of integration

ABRAHAM MASLOW:FOCUSING ON HUMAN NEEDS

His theory rested on three asumptions

All of us have needs which are never completely fulfilled 2. Through our actions we try to fulfill our unsatisfied needs 3. Human needs occur in the following hierarchical manner Physiological needs Safety or security needs Social needs Esteem or status needs Self-actualization or self-fulfillment needs
1.

LIMITATIONS TO MASLOWS THEORY

Human needs do not always emerge in a

hierarchical manner
Does not explain how a person prioritizes the

needs at a particular level of hierarchy.

DOUGLAS McGregor: CHALLENGING TRADITIONAL ASSUMPTIONS ABOUT EMPLOYEES

Developed two assumptions about human

behavior Theory X and Theory Y

THEORY X Most people dislike work and they avoid it when they can Most people must be coerced and threatened with punishment before they work Most people prefer to be directed. They avoid responsibility and have little ambition

THEORY Y
Work is a natural activity like play or rest People are capable of self direction and self control if

they are committed to objectives People become committed to organizational objectives if they are rewarded in doing so Under proper conditions people learn to accept responsibility and also try to seek responsibility Most people are capable of being innovative in solving organizational problems Complete utilization of the intellectual potential of the average person does not take place

CHRIS ARGYRIS:MATCHING HUMAN AND ORGANIZATIONAL DEVELOPMENT

Major contributions of this behavioral scientist are the maturity-immaturity theory, the integration of individual and organizational goals, Model I and Model II organization analysis Model I Employees are manipulative Not willing to take risk Model II Employees are open to learning and less manipulative Willing to take risk

ELTON MAYO:FOCUSING ON HUMAN RELATIONS

Father of Human Relations Approach Led the team which conducted a study at

Western Electrics Hawthorne Plant To examine the impact of illumination levels on worker productivity The experiments were conducted in four phase: Illumination experiments Relay assembly test room experiments Interview phase Bank wiring observation room experiments

ILLUMINATION EXPERIMENTS
Took place between 1924 and 1927

Two group of workers (experimental or test group)

and the control group Experiment involved manipulating the illumination Relay Assembly Test Room Experiments Took place between 1927 and 1933 It included the introduction of a series of HR policy measures for the test group to study their impact on overall productivity

INTERVIEW PHASE
21000 people were interviewed between 1928-

1930 To determine employee attitude towards the company and their jobs.

Bank Wiring Observation Room Experiments

Conducted during 1931- 1932

It was undertaken by researchers to test some of

the ideas they had gathered during the interviews

Criticism of Hawthorne studies

The procedures, findings and conclusions

reached were questionable Researchers considered themselves as social engineers The relationship made between the satisfaction or happiness of workers and their productivity was too simplistic

Limitations of Human Relations Approach

The human relations theorists are of the opinion

that by removing fear, people would perform effectively It does not provide enough focus on theory It does not understand the economic implications of organizational problems. Human relations theory also tends to be very vague

RENSIS LIKERT
Made substantial contribution to the evolution of

discipline of management by undertaking an extensive research on different leadership styles. CONTRIBUTIONS: The Likert Scale
Management Styles Effective Work Group

LIKERT SCALE
Means of measuring psychological attitudes in a

scientific way Each degree of agreement or disagreement is assigned a value, which is usually five (1-5)
MANAGEMENT STYLES Exploitive-Authoritative Benevolent-Authoritative Consultative System Participative-Group System

EFFECTIVE WORK GROUP

The leader has a major influence in establishing

the work culture of the group through the kind of leadership principles and practices that he adopts Leader creates an atmosphere which is supportive ,cooperative and not competitive Suggestions,ideas,comments,information and criticisms are all offered by the members to the leader

QUANTITATIVE APPROACH
This approach focuses on achieving

organizational effectiveness through the application of mathematical and statistical concepts.

Three main branches of quantitative approach

are Management science Operations management Management information systems

SYSTEMS APPROACH
The systems approach considers the organization as

a system composed of a set of inter related elements functioning as a whole An organization as a system is composed of four elements Inputs Transformation Process Outputs Feedback Terminologies important in the systems approach Open System Closed System Sub System

CONTINGENCY OR SITUATIONAL APPROACH

It stresses that there is no one best way of doing

a thing Management is situational in nature and managers should prepare objectives,policies,procedures,rules and regulations according to the situation of business Managerial procedures, policies and strategies can be made more effective by adjusting them to the changes in environment LIMITATION: Fails to give one particular answer to a problem.There can be more than one best way to do a thing.So,it can require a lot of creativity and thus can be very complex.

MODERN APPROCHES
Management by Objectives (MBO) Total Quality Management (TQM)

quality of return quality of products quality of process

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