Evolution Of Management Thoughts 3l3l65

EVOLUTION OF MANAGEMENT THOUGHTS

MANAGEMENT THOUGHT PERIOD Early contributions ► Scientific management ► istrative management ► Human relation approach ► Social system approach ► Decision theory approach ► Mgmt science approach ► Human Behavior approach ► System approach ► Contingency approach ►

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Upto 19th century 1900-1930 1916-1940

1930-1950 ► 1940-1950 ► 1945-1965 ► 1950-1960 ► 1950-1970 ► 1960s onwards ► 1970s onwards ►

CLASSIFICATION OF MGMT THOUGHTS MGMT THOUGHTS

CLASSICAL APPROACH

NEOCLASSICAL APPROACH

Scientific management n/Operational management Bureaucracy

Human relation approach Social system approach Decision theory approach Mgmt science approach Human Behavior approach

MODERN APPROACH System approach Contingency approach

Early Contributions ► Concept

of org&n exsisted in egypt in Egypt in 1300 B.C. ► Kautilya has offered principles of state n in 320B.C. ► Roman Catholic church introduced the concept of staff personnel. ► Early contributors in the field of Business orgn are:Robert Owen,Charles Babbage,Henry Varnun Poor,Henry Robinson Towne,James Watt and Mathew Robinson Boulton,t Henry Metcalfe.

Pre Scientific Management Era ► Refers

to the period immediately preceding the Scientific management Movement. ► Contributions of the pioneers are given below:-

Robert Owen(1771-1858) ► ► ► ►

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Managed a group of textile mills in Scotland during 18001828. He believed that workers should work because they want to work and not because they have to work. Emphasised on building up of a spirit of cooperation between workers and the management. Introduced new ideas of human relatioons,rest pauses,training of workers,housing facilities,education of children,canteen provision etc. He is known as the father of Personnel Management. His ides are prelude to the development of the behavioural approach to the management.

Charles babbage(1792-1871) ► ► ►

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Babbage was a professor of mathematics at Cambridge Univ fro 1828 to 1839. His best book known is “On the Economy of Machinery and manufacturers published in 1832. He perceived that the methods of science and mathematics could be applied to the operations of the factories in manufacturing operations. Division of the work on the basis of their skills. Applying the mechanism of time and motion study. Emphasis on cost reduction through the discovery of improved methods. The interest of mgmt and workers be closely linked through profit sharing and participative decision making.

Henry Varnum Poor ► Editor

of the “American Railroad Journal’from 1849-1862.He closely watched the rail road managers and said that managers should be guided by 3 principles-organization,communication and information. ► Emphasised on the need of the efficient leadership at the top level to develop feeling of unity and to overcome the rigidities of the formal organization.

Henry Robinson Towne(1844-1924) ► President

of the famous”Yale and Towne),a lock manufacturing company.He took particular interest in better business management. ► He urged the combination of engineers and economist as industrial managers. ► He suggested organized exchange of experiences among managers and an organized effort to pool the accumulated knowledge.

James watt and Mathew Robinson ► Both

applies several management techniques in the Engineering factory at Soho(uK).These techniques were: Market Research and forecasting, product plg,elaborate statistical records,maintenance of advance control reports,planned machine for better work flow.

Captain Henry Metcalfe(1847-1917) ► Metcalfe

was the manager of an army arsenal.He wrote book,’The cost of Manufacturers and istration of work shop:Public and Private’. ► Suggested that science of istration is based on principles that are evolved by recording observation and experiences). ► Metcalfe suggested a system of cards 1)time cards 2)material cards.This system assures that better work done by them would be known to the management.

CLASSICAL APPROACH ► It

is also called as traditional,empirical,mgmt process approach.Its main features are: ► Mgmt is viewed as a systematic network of interrelated functions. ► Principles are developed on the basis of experiences of practising mgrs. ► Formal trg and education is emphasised for developing managerial skills. ► Emphasis is placed on economic efficiency and the formal organization structure. ► People are motivated by economic gains.

CLASSICAL APPROACH INCLUDES 3 MAIN STREAMS ► Scientific

management-main contributors are:F.W Taylor,Harrington emerson,Henry gantt,Frank and Lillian Gilbreth. ► istrative theory or functional approach was developed by mgmt practitioners and thinkers like,Henry Fayol,LyndallF.Urwick,James .Mooney,Allan C.Reiley and others. ► Bureaucracy was evolved by a german sociologist,Max weber.He visualises a machine model of organization characterised by a hierarchy of authority,a web of rules and regulations and impersonal control over human beings.

USES AND LIMITATIONS ► It focuses ► Highlights

on what mgrs actually do. the universal nature of the management. ► Provides scientific basis for management practice. ► Limitations are: ► It offers a mechanistic framework that undermines the role of human factor. ► There is a danger on relying too much on past experience. ► The totality of the real situation can seldom be incorporated in a case study.

Contributions of Frederick Winslow Taylor(1856-1915) ► Father

of Scientific management.His ideas about management grew in 3 companies:Midvale steel works,Simond Rolling mills and Bethlehem Steel co. ► He found that main cause of inefficiency and wastage in the factory was ignorance on the part of both workers and management. ► Taylor’s contribution can be defined in two parts: 1.Elements and Tools of Scientific management. 2.Principles of scientific management.

ELEMENTS AND TOOLS OF SCIENTIFIC MANAGEMENT ► Separation

of Plg and Doing. ► Functional Foremanship ► Job Analysis ► Standardisation. ► Scientific Selection and Training of Workers. ► Financial Incentives ► Economy ► Mental Revolution

Principles of Scientific management ► Replacing

Rule of thumb with science:Science determines precision and rule of thumb emphasises estimation. ► Harmony in Group Actions ► Cooperation ► Maximum Output ► Development of workers.

Other contributors of Scientific Management ► Henry

Gantt-Developed method of depicting plans and making possible better management control. he emphasized importance of time as well as cost in planning and controlling work. Contributed in development of Gantt Chart. Frank and Lillian Gilberth tried to look problems of workers from social and psychological point of view.

Limitations of Scientific mgmt ► Scientific

management was criticised on several

grounds: ► Exploitative device ► Depersonalized work ► Unpsychological ► Undemocratic ► Anti–social ► Unoriginal ► Unrealistic

Henry Fayol (istartive management) French Industralist and his contributions are called as operational or isatrative management. ► Fayols contributions are published in his book”istration Industrielle at Generale” ► He viewed the problem of managing organization from top management point of view. ► He has used the word istration instead of management.He emphasised that principles of management are flexible and not absolute and are usable regardless of changing and special conditions. ► Fayol found that activities of an industrial org can be divided into 6 groups: ► 1.Technical ► 2.Commercial. ► 3.Financial ► 4.Security ► 5.ing ► 6.Managerial Fayol has divided his approach of studying mgmt into threeparts: ►

Cont… A)Managerial qualitiesand training-Physical,Mental,Moral,Educational,Technical,Experience. B)General principles of management1.Division of work 2.Authority and Responsibility 3.Discipline. 4.Unity of command 5.Unity of Direction. 6.Subordination of Individual to General interest. 7.Remuneration of Personnel. 8.Centralisation 9.Scalar chain 1o.Order 11.Equity 12.Stability of Tenure 13.Initiative 14.Esprit de Corps. C)Elements of m,anagement. a)The elements are the functions of management-plg,org,commanding,coordination and contrlling.

BUREAUCRACY (Max Weber) Features of bureaucratic structure are: ► Hierarchy ► Division of work ► Rules, regulations and procedures ► Official Records ► Impersonal relationships ► istrative class

Problems in Bureaucracy ► Goal

Displacement. ► Unintended Consequences ► Inhuman Organization ► Closed System Perspective

Limitations of the Classical Theory ► Static view of organizations ► Closed system view ► Dehumanization of organization ► Anti-democratic bias ► Classical assumptions and values ► Classical principles

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Division of labor Departmentation The scalar principle The line and staff principle The span of control principle

NEO CLASSICAL THEORY HAWTHORNE EXPERIMENTS AND HUMAN RELATIONS ► Discovered that real cause of Human Behavior was something more than mere physiological behaviour.This new approach has been called' Human relations approach of management. ► The essence of Human relation can be understood in two points: ► I) organizational situation should be viewed in social as well as in economic and technical . iii)the social process of group behaviour can be understood in of clinical method analogus to the doctor’s diagnosis of the human organism. ►

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Investigated by-Elton Mayo, whitehead & Roethilisberger & company representative William Dickson. The experiment was conducted at the Hawthorne plant of the General Electric company,Chicago was manufacturing telephone system bell which employed 30,000 employee.

. ILLUMINATION EXPERIMENTS ► This

experiment to find out how varying levels of illumination (amount of light at work place ,a physical factor) affected the productivity. ► Group of worker chosen placed in two groups 1.Experimental or test group. 2.Control group.

Experiment has four phases Experiment to determine the effects of changes in illumination on productivity, illumination experiments, 1924-27. 2. Experiments to determine to determine the effects of changes in hours and other working conditions on productivity, relay assembly test room experiments, 19271928 3. Conducting plant-wide interviews to determine worker attitudes & sentiments,mass interviewing programme, 1928-30 4. Determination and analysis of social organization at work, bank wiring observation room experiments. 1931-32 1.

Experimental /Test Group ► Varying

intensity of illumination. ► Increase of illumination in the experimental group can the increase the production. ► Decrease in the illumination still lead to the increase in production. ► Production can decrease only when the illumination touch the level of moon light/below the normal level.

Control Group ► This

group work under constant intensities of illumination. ► Production –equal to experiment group. ► Conclusion

Illumination did not have any effect on productivity but some thing else Interfering with the productivity. 2. Human factor was determing productivity but which aspect was affecting it was not sure. 1.

2.Relay assembly Test Room Exp ► This

exp. to determine the effect of change in various jobs conditions on group

productivity. ► Change

associated with 4 to 12 weeks. ► Two girls chosen these associated 4 more girls as coworker in assembly of telephone relay.

Changes and out come ►

The incentive system was changed so that each girl’s extra pay was based on the other five reather than the output of the larger group,like 200 or more.The productivity increased as compared to before.

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Two 5minute rest – one in morning other evening session. Which were increased to ten minutes,-----productivity increased.

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Rest time was reduced to five minutes but frequency was increased,the productivity decreased slightly and the girls complained that frequent rest intervals affected the rhythm of the work.

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Rest was reduced to two of ten minutes each, but coffee ,tea ,soup& snacks provided in the morning &evening- productivity increased

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Changes in working hours& working day, productivity increase.

Mass Interviewing Programme ►

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20,000 experiments were conducted between 1928 to 1930 to determine employees attitudes towards company, supervision,insurance plans, promotion and wages. Major findings: 1.Complaints is not necessarily an objective recital of facts,it is a symptom of personal disturbance the cause of which is deep seated. Personal situation of the worker is a configuration ,composed of a personal preference involving sentiments, desires and interest ,the persons social past and his present interpersonal relations. The social demands of the workers are influenced by social experience in groups both outside and inside the work plant. The workers behavior was influenced by group behaviour.

Bank Wiring Observation room experiments ►

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Experiments were carried on between 1931 -1932 with a view to analyse the functioning of small group and its impact on individual behaviour. A group of 14 male workers were employed in the bank wiring room:9 wiremen,3 soldermen, and 2 inspectors. Hourly wage rate for the personnel was based on average output of each worker while bonus was to be determined on the basis of average group output,with the objective of producing more and to take the advantage of group bonus. Workers decided the target to connect 6600 terminals against 7300 terminals as set up by the company

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workers gave following reasons for the restricted output: ► 1.Fear of unemployment ► 2.Fear of Raising standards ► 3.Protection of Slower workers ► 4.Satisfaction on the part of management ► Findings: ► Informal relationships are important factor in determining the human behaviour ► Conformity with both output norm and social norm were preferred.

Conclusion ► Productivity

increased not because of positive change in physical factors but because of a change in the girls attitude toward work & work group.

IMPLICATIONS OF HAWTHORNE EXPERIMENTS HAWTHORNE EXPERIMENT

► Social

factor in output ► Group Influence ► Conflicts ► Leadership ► Supervision ► Communication

CRITICISM OF HAWTHORNE EXPERIMENTS ► The

Hawthorne researchers did not give sufficient attention to the attitudes that people bring with them to the workplacesclass consciousness, the role of unions etc. ► It was not a typical plant but a pleasant place to work ► The Hawthorne studies look upon the workers a means to an end himself.

SOCIAL SYSTEM APPROACH ►

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This approach was introduced by Vilfredo Pareto a sociologist. His ideas were later developed by Chester Barnard who synthesized the concept of social systems approach .The major features of this approach are as follows: 1.Organization is a social system, a system of cultural relationship. Relationship exsist among the external as well as internal enviornment of the organization. Cooperation among group is necessary for the achievement of organizational objective. For effective mgmt there should be harmony between the goals of the organization and various groups.

CONTRIBUTIONS OF CHESTER BARNARD ► Concept

of organization ► Formal and informal organization ► Elements of organization ► Authority ► Functions of the Executive ► Motivation ► Execuitive Effectiveness ► Organizational Equillibrium

DECISION THEORY APPROACH ► Main

contributors are Herbert Simon,march,Cyret and Forrestor etc. ► Mgmt is essentially decision making ► of the organizatio are decision makers and problem solver ► Organizations can be treated as a combination of various decision centres. ► Quality of decision affects the orgnizational effectiveness.

CONTRIBUTIONS OF HERBERT SIMON ► Concept

of Organization ► Decision making ► Bounded rationality ► istrative Man ► Organizational Communication

MANAGEMENT SCIENCE APPROACH Also known as mathematical or quantitative management approach,visualises management as a ogical entity. ► The major features of this approach are as follows: ► 1.managemnt is regardedas the problem solving mechanism. ► Management problems can be described in of mathematical symbols and data. ► This approach covers decision making, systemanalysis and some aspects of human behaviour. ► Operation research,mathematical tools,simulation models etc are the basic methodologies to solve managerial problems. ►

HUMAN BEHAVIOUR APPROACH ► It

is outcome of the thoughts developed by Behavioural Scientists who focussed that study of management should revolve around human behaviour. ► Major contributors are Maslow,(need hierarchy theory),Herzberg(MotivationHygeine theory,Argyris,Blake and Mouton etc.

SYSTEMS AND CONTINGENCY APPROACH ►A

system is a complex whole composed of parts and subparts in orderly arrangement according to some scheme or plan.

► Contingency

approach may be treated as an extension of system approach which focus on the basic idea that there cannot be a particular action of managing human behaviour which is desiggned on the basis of internal states and enviorbnmental condiitions.