Evolution Of Management Thoughts 3l3l65

m

a Ô Harold

Koontz & Heiz Weihrich defined management as µ Ô mouis E. Boone & David m. Kurtz defines management as µ

a Ô Delton E. McFarland defines management as µ



Ô Mary Parker Fellot termed management as µ



Ô

! "

Ô ll these definition suggest the following aspects

of management: Ô #

$ Ô Ô Ô Ô

( ( ( % & m ' ()))*+ ( & ,)))*+ ( m %& - $ ' .)))*+ ( % /%

' 01))0,))ma

( % 02 P < ndustrial revolution P < Mass production P < Huge capital P < wnership separated from management ( .) P < World war P < mimited resources available P < eed for solution to use them in an optimum way P < World War added to the problem ÷

* m & 34 !056,' 02.)" ( Max

Weber analyzed functioning of church, government, military and business organisations.

( He believed that bureaucracy was the most efficient

form of a business structure for any type of business organisation.

ý ( m + / ( ÷his class exists in a bureaucratic organisation ( ÷he employees are full time and look after coordination

among activities ( - / ( t is a system of ranking ( Strict rules of authority
lines of communication and delegation of

authority ( a / ( rganisation divided in various departments ( Each department will have a specific function ( Clear definition of work

( ~ 7 / ( mdministrative process covered by rules ( mntithesis to ad hoc ( Provides stability and uniformity

( % 7 ( fficial relationships free from personal involvement,

emotions and ( sentiments ( Decisions are based on rational thinking ( ~ 7 / ( Maintenance of official records ( Beneficial for future reference ( Filing system used extensively

&ý 4 !05(6&020(" ( m worker and then a supervisor in steel company ( Carried experiments to increase efficiency of the

workers ( Published many books and papers ( Studied M.E (Masters of Engineering) ( His experiments are divided into ( Elements and tools of scientific management ( Principles of scientific management

ô. 2. 3. . 5. 6. 7. 8.

Separation of planning and doing<Supervisor plans, worker only carries out the task Functional foremanship< types of supervisors for planning aspect, while for supervision aspect of the work Job mnalysis< best way to do a job Standardisation ± of process, period and amount of work, working conditions, tools used etc Scientific selection and training of workers Financial incentives Economy< optimum usage of resources an eliminate or reduce wastages Mental revolution ± cooperation between workers and the management

# ( ¬eplacing rule of thumb with science ( Harmony in group actions ( Cooperation ( Maximum output ( Development of workers

+ m ( ¬elevant from an engineering point of view rather than

management point of view ( Human aspect of the work was sidelined< workers got aggressive resulting in unhealthy competition ( ncreased authoritarian approach in industries< strict supervision ( Financial incentives exploited the workers (Differential piece rate system)

m ' - ý !05,0&020(" ( Henry Fayol< French ndustrialist ( Used the term< mdministration instead of Management ( Divided industrial organisation into 6 groups< ( ÷echnical ( Commercial ( Financial ( Security ( mccounting ( Managerial

( dentified qualities of a Manager

8 & ý ( # & Health ( & ability to learn, judge, think, plan ( & loyalty, firmness, tact, dignity ( & acquaintance to subjects not related to

functions performed ( & pertaining to the function performed, eg, production ( 3 & arising through work

ý 0, 0

a ÷o take advantage of specialisation, every worker/ manager works on a same part/function. t increases the accuracy, ability and speed of work.

.

m Both are related. muthority arises out of a manager¶s position and responsibility, out of assignment of activity. mcc, to Fayol, there should be parity (equality) between both.

1

a t can be self imposed, or commanded. Disciple by command arises through company policies.

,

9 m person should get orders from only one superior. ÷his increases clarity, reduces conflict and builds a personal responsibility for results f it is violated, discipline is lost, importance of authority decreases and stability is threatened.

(

9 Each group of activities with same objective, must have only one plan and one head. Unity in command defines the reporting relationship, while unity in direction defines the grouping of activities. t ensures better coordination among activities.

6

nterest of the organisation is more important than the interest of one/few employees, when there is a conflict between the two. Hence, superiors should be the ideals, supervise employees continuously and also have a fair agreement with them.

:

+ mn organisation must have a proper balance of centralisation and decentralisation, depending on its size, activities, objectives, employees etc.

5

7 Should be fair to both< employee and employer n line with cost of living and value of employee Fayol did not advocate profit sharing plan for workers, but for managers

2

t is the flow of authority or command, through which every communication, must n special circumstances, this flow can be µshort< circuited¶ in situations, when the scalar chain of communication is non feasible. ÷his is done, using a gang plank

0) ~

÷his refers to arrangement of things and people in an organisation < m place for everything and everything in place Similarly, the right person must be placed at the right position. ÷his demands for precise knowledge of human requirement and resources 00 ;

combination of justice and kindness t should be maintained in behaviour and treatment towards employees

0.

Employee should be given a minimum job security at least ÷his ensures that he is given time to adjust to new work and succeed in it. 01 %

Managers must encourage employees to take initiative, within the limits of their authority. t increases the zeal and energy in the employee ô

Union is strength Managers must encourage the team spirit among the employees Erring employees must be given oral directions and not asked for a written explanation

' ( Conducted the famous Hawthorne Experiments carried out at

( ( ( ( (

the Western Electric Company, in the United States of mmerica that started in the early ô 20s. n the approaches by ÷aylor and Fayol, the human element in the organisation was not stressed upon. ÷he elements in these approaches were not giving evoking positive results. ÷he Western Electric Company, Chicago had Hawthorne plant that manufactured telephone bell system ÷he company was progressive, with sickness and pension benefits n spite of this, there was a dissatisfaction among workers.

( 3 %/ ÷wo group of workers, experimented with

the lighting or illumination and its effect on productivity, showed no clear correlation between light level and productivity. ( 3 %%/ m girls group was chosen who worked in the telephone relay assembly department. 5 types of changes introduced over a period of time and productivity measured after every change. ( 3 %%%/ 20,000 interviews conducted in two years to determine employee¶s attitude towards company, work, supervision, waged, insurance, incentives etc. ( 3 %
ý Ô Focus on individual, his needs and behavior Ô Highlight interpersonal relations Ô Emphasis

on

motivation

morale

and

job

satisfaction Ô Conflict in an organization is always destructive and should be always avoided. Ô Based on Hawthorne experiments. Ô People behavior as a individual may be different than his behavior in a group.

ý Ô Emphasis on improving the working condition,

interpersonal relation, supervisory styles and communication systems. Ô People working in the organization may have different goals but it is the work of management to guide them toward the common goal. Ô People working in the organization form their own informal groups and these groups have a significant influence on the attitude and values of people.

7= ( * m ' 34 ( ' ý4

( m ' - ý ( -7 m '

~ ý

ý

ý

' + * ( He

was the president of ew Jersey Bell ÷elephone Company. ( He saw organizations as social systems that required human cooperation. ( He believed that managers¶ major roles were to communicate and stimulate subordinates to high levels of effort. ( He also introduced the idea that managers have to examine the environment and then adjust the organization to maintain a state of equilibrium.

' + * ( He connected Scientific Management with Human

¬elations. ( ý 3 / ( Must establish and maintain a communications system

among employees. ( Must establish the objectives of the organization and motivate employees. ( a / ( muthority of

a manager flows from the ability of subordinates to accept or reject an order from the manager once they: Ô Comprehend what the order requires of them. Ô ¬eview the order¶s consistency with organization goals. Ô Perceive a personal benefit in obeying the order.

m Ô 8 m Ô m Ô + m Ô >

! "

8 m ( Characterized by its use of

and other ; ; for and problem solving. ( ÷his approach has four : ô

÷

( a&ý ( ÷he primary focus of the quantitative approach is on

problems or situations that require direct action, or a decision, on the part of management.

8 m ( + ( ÷he decision<making process requires that the decision

maker select some alternative course of action. ( ÷he alternatives must be compared on the basis of measurable criteria. ( 8 ( ÷o assess the likely impact of each alternative on the

stated criteria, a quantitative model of the decision situation must be formulated. ( + ( Computers are quite useful in the problem<solving

process.

+ 8 m ( % # & ( ý

( % ~ ( ý $

m 8 m ( a

/& ( a === ( 9 ; ==

m ( a ( m set of interrelated and interdependent parts arranged

in a manner that produces a unified whole. ( mn approach to problem solving based on an understanding of the basic structure of systems.

m ( * ( + ( mre not influenced by and do not interact with their environment (all system input and output is internal) ( ~ ( Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments

~ ~ %





%?#9

7m?ý~7m%~?

~9#9

mabour, Finances, Material, nformation

Management & Production Process

Products/Services, Profit/moss



+ m ( + m a ( mlso sometimes called the situational approach. ( ÷here is no one universally applicable set of management

principles (rules) by which to manage organizations. ( rganizations are individually different, face different

situations (contingency variables), and require different ways of managing. ( msserts that managers are responsible for determining

which managerial approach is likely to be most effective in a given situation. ( ÷his requires managers to identify the key contingencies

in a given situation.

* + + #

m + m ( Useful because of its diagnostic approach, which

clearly departs from one of the best approach of traditionalist. ( t is more flexible, although draw heavily from other approaches. ( mllows managers to apply principles from those approaches selectively and appropriately.

> @ ( ÷heory Z is humanistic approach to management

approach by William uchi. ( mdvocates trusting employees and making them feel like

an integral part of the organization. ( Based on the assumption that once a trusting relationship

with workers is established, production will increase.

> / ( ~ ! " ( # ( % (( ( (

( +

& &

( a ( # !

0) " (

( m







+ ( ncreasing number of global organizations. ( Building competitive advantage through superior

efficiency, quality, innovation, and responsiveness. ( ncreasing performance while remaining ethical managers. ( Managing an increasingly diverse work force. ( Using new technologies.

- mA

( m colleague of ÷aylor¶s at Bethlehem Steel Works ( mplemented a wage incentive program. ( Gantt¶s incentive system provided bonuses

who completed their jobs in less time than the standard. (

nitiated a bonus plan .

( Developed planning and control techniques using

a simple graphic bar chart , ÷ to display relationships between planned and completed work on one axis and elapsed time on the other.ë Æ

A !0565&02.," Frank and millian Gilbreth refined ÷aylor¶s methods and made many improvements to time and motion studies, and industrials efficiency & were early contributors to personnel management.

Æ

÷he Gilbreths ( Frank and millian Gilbreth refined ÷aylor¶s

methods. ( Made

many improvements to time and motion studies.

( ÷ime and motion studies:

„



into components. ( 2. to perform it. ( 3. ¬



to be more efficient. ( ô.

( Gilbreths also studied fatigue problems,

lighting, heating and other worker issues.

Behavioral Management ( ý



( # ý

/ ( Suggested

workers help in analyzing their jobs for improvements. ( ÷he worker knows the best way to improve the job. ( f workers have the knowledge of the task, then they should control the task.

B & ( McKinsey's problem<solving process

has ( ý & ( 7 ( -



( Facts are the foundation of problem solving. ( Facts aid in the development of a sound hypothesis,

and then provide the evidence needed to or refute it. ( Facts compensate for the lack of instinct a consultant must face since he or she does not have a lifetime of experience in the industry on which to draw. ( Facts also bridge the credibility gap, lending respect to the analysis of newcomers. ( Hiding from the facts is only a recipe for failure, because sooner or later, the truth will show itself. ( ÷hus, a successful consultant will find the facts and use them to his or her advantage.

w ( ne of the most fundamental tenants of McKinsey

problem solving is the concept of MECE, à ( w issues related to the problem at hand. ( First, the associate must ensure that the list is mutually exclusive, or that every item is separate and distinct. ÷hen, he must check that it is collectively exhaustive, that it includes every issue relevant to the problem. ( ÷his approach prevents overlap and confusion.

÷ 3rd pillar of the McKinsey problem<solving process is the initial hypothesis ( H). ( ÷he initial hypothesis serves as a roap toward the solution. ( t is the solution that seems most probable early in the engagement, after the group has brainstormed using their knowledge of the situation, but before they have spent a lot of time gathering additional information and analyzing. ( ÷he initial hypothesis may or may not prove correct, but it will provide a starting point from which to work and it will guide the research and early data analysis. ( ÷he

m8 CCC