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EVOLUTION OF
MANAGEMENT
THOUGHTS
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Management practice is as old as human civilization when people started living
togetherin groups. For, every human group requires management and the history ofhuman beings is full of organizational activities. In the earlier years, management
concept were applied was held low, unworthy of study; indifferent approach of
other social scientists like economist, sociologist, psychologist, etc., towards
management and business organizations treatment of management as an art not as a
science and commonly held belief that managers are born not made.
The situation changing with the beginning of the 20thcentury; specially theworld war 1stcreated the situation where people started thinking of solution to the
problem of how limited resources could be applied in better way. The world war 2nd
added further problem to this end.
In recent years, there has been worldwide rivalry for markets, power & progress.The increasing serve competition has come from such factors as: technological
innovations, increase in capital investment, increased government regulation,
organised union activities to put pressure on management.
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APPROACHES
CLASSICAL -
scientific management & administrative management.
NEOCLASSICAL -humanatarian approach.
MODERN-
system approach & contingency approach.
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CLASSICAL- Something traditionallyaccepted or long-etablished
But classical views are not static and time bound.
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Interrelated functions
Guiding principles
Beaurocratic structure
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Worked at Midvale & Bethlehen Steel Companys
in Pennyslvania
Was disgusted to see the inefficiency of workers
Applied scientific method to workers on the shop
floor
Emphasized one best way philosophy
Experimented with various physical positions- eg;walking speed, carrying positions, leg positions etc.
Thus, found out one best way to perform the task
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Thus Taylor achieved signif icant
improvements in productivity
Wrote two books- Shop Management
The Principles of Scienti f ic
management
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Each task must be scientifically
designed so that it can replace the old,
rule- ofthumb methods
Workers must be scientifically selected
& trained so that they can be more
productive on their jobs There must be division of labor and
cooperation between management and
workers
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Science, not rule of thumb
Harmony, not discord
Cooperation, not individualism
Maximum output in place of restricted output Development of each man to his greatest
efficiency and prosperity
Equitable division of work and responsibility
between management and labor
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1. Scientific task planning-The amount of work whichan average worker can perform during a day undernormal working conditions- called as a fair days work
2. Time & Motion Studies-
Time- Time standard is the period of time that an averageworker should take to do a job
Motion- Under Motion studies finger movements, handmovements, arm movements, and shoulder movements
are studied.Managers are charged with the task of planning the work
through the above studies and workers are expected toimplement the same.
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3. Standardization-
Under scientific management standards have to be set
in advance for the task , materials, work methods,
quality, time & cost, working conditions etc
4.Diffrential Piece Rate System-
A worker who completes the normal work gets wages
at higher rate per piece than a worker who fails to
complete the same within the time limit set bymanagement.
This is done to motivate workers.
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5. Functional foremanship-
Factories divided into several components , each
incharge of a specialist. The workers are expected to
implement the commands of functional specialists.
Drucker calls this principles as an undemocratic one.
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Exploitative Device Depersonalized work
Unpsychological
Undemocratic
Anti social
Unoriginal- Hoagland and others felt thatTaylors contributions is overrated and over
emphasised. Unrealistic- He ignored the social and ego
needs of people.
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He was the contemporary of Taylor Revolutionized managerial thinking in France
Was trained as a mining engineer, made hismarg as an industrialist with the French coaland iron combine of Comentry-Fourchambault
in 1988 the company he joined, had been
near bankruptcy, transformed it into afinancially strong organization
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Administrative theory explains the
process of managing an organization
from the top managerial perspective
Considered as founder of the classical
management school
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Classified business operations into sixmajor activities-
Technical(production)
Commercial(buying and selling)Financial(use of capital)
Security(protection of property)
Accounting(keeping financial records)Managerial
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Planning
Organizing
Commanding Coordination
Controlling
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Division of work
Authority and responsibility
Discipline
Unity of command
Unity Of Direction
Subordination of individual interest to
the common good
Remuneration of personnel
Order-
a place for everything and everything in itsplace and a place for everyone and everyone in hisplace
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Physical Mental
Moral
Educational Technical
Experience
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During 1920s and 1930s observers startedcriticizing administrative managementmovement and scientific approach
Scientific approach focused on the activitiesof workers whereas administrative approachfocused attention on the activities ofmanagers
Social aspects of a workers job were totally
ignored.
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Thus the Human Relations Theory, alsocalled Neo-Classical Theory came into being
The theory is based on the famous studies ofhuman behavior in work situations conductedat the Western Electric Company from 1924-1933
These studies are known as Hawthorne
Studies
conducted at Western ElectricsHawthorn plant near Shikogo.
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Purpose was to determine the effects ofdifferent levels of illumination on workersproductivity
Test Group- Light systematically varied
Control Group- Light held constant Result- With increase in light productivity
increased in test groupBut productivity also increased in the control
group which receive no added lightThus something else was responsible forincreased productiviy.
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Mayo initiated three year long interviewprogram in1928 covering more than 21000employees
Employee were left free to air their opinion
The point illustrated by this interviewingprogram is central to the Human RelationsMovement
social factors were found to be prominentthan the economic factor
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Focus on people, groups Make workers happy Man wants company, loves interaction and is
guided by group goals Inputs drawn from behavioral sciences Groups dominate, individuals, follow, group
norms irrespective of what managementstates
Mayo emphasised friendly supervision andmonitoring of group norms so as to provide apositive work climate
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This approach applies the knowledge of thebehavioural sciences- psychology, sociologyand anthropology- to managing people
Abraham Maslow Need Hierarchy Approach
Five basic needs- Physiological, safety, social,self-esteem and Self-actualization
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This approach attempts to view theorganization as a single unified, purposefulentity composed of interrelated parts
A system view of management , eg; would
recognize that, regardless of how efficient theproduction department might be, if themarketing department does not anticipatechanges in consumer taste and work with the
product development department in creatingwhat consumers want, the organizationsperformance will be hampered
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This approach states that appropriatemanagerial action depends on the particularparameters of the situations.
Situations dictate managerial action
Therefore no single way of solving problems isbest for all situations.
The choice of a particular method of managing
largely depends on the nature of the job, thepeople involved and the situations.
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Features-
Themanagerial action are contingent oncertain actions outside the system orsubsystems.
Organizational efforts should be based onthe behavior of actions outside the system sothat the organization gets smoothly
integrated with the environment. Managerial actions and organizational design
must be appropriate to the giving situation.
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