Upload
sunara-arunasiri
View
1.464
Download
175
Tags:
Embed Size (px)
Citation preview
Chapter-1Chapter-1
History and Evolution of History and Evolution of Management ThoughtManagement Thought
IntroductionIntroduction
Early Approaches to Early Approaches to managementmanagement
Robert Owen: Robert Owen:
Human Resource Management PioneerHuman Resource Management Pioneer
Charles Babbage: Inventor Charles Babbage: Inventor and Management Scientistand Management Scientist
Andrew Ure and Charles Andrew Ure and Charles Dupin: Management Dupin: Management Education PioneersEducation Pioneers
Henry Robinson Towne Henry Robinson Towne (1844 – 1924) (1844 – 1924)
Classical ApproachClassical Approach
Classical Management can be divided Classical Management can be divided into three separate schools:into three separate schools:
Scientific ManagementScientific ManagementAdministrative ApproachAdministrative ApproachBureaucratic approachBureaucratic approach
Scientific ManagementScientific Management
Some of the earliest advocates of Some of the earliest advocates of scientific management were:scientific management were:
Fredrick Winslow TaylorFredrick Winslow TaylorFrank and Lillian Gilbreth Frank and Lillian Gilbreth Henry GanttHenry Gantt
Frederick Winslow TaylorFrederick Winslow Taylor
Known as “father of Known as “father of scientific managementscientific management
Soldiering Problem: An Soldiering Problem: An InsightInsight
Workers indulge in soldiering Workers indulge in soldiering for three main reasons:for three main reasons:
1. Fear of loss of job incase 1. Fear of loss of job incase of increased productivityof increased productivity
2. Faulty wage systems2. Faulty wage systems
3. Outdated methods of 3. Outdated methods of working working
Cont..Cont..
Major Managerial practices that Major Managerial practices that emerged from Taylor’s Approach:emerged from Taylor’s Approach:
Piece-rate systemPiece-rate systemTime-and-motion studyTime-and-motion study
Frank and Lillian GilbrethFrank and Lillian Gilbreth
Frank Gilbreth – “Father Frank Gilbreth – “Father of motion study”of motion study”
Lillian Gilbreth associated Lillian Gilbreth associated with research pertaining with research pertaining to motion studyto motion study
Motion study: Motion study:
The way of finding best The way of finding best sequence and minimum sequence and minimum no. of motions.no. of motions.
- Classification Scheme- Classification Scheme
- Micro Motion Study- Micro Motion Study
Henry Gantt (1861-1919)Henry Gantt (1861-1919)
Task-and-bonus Task-and-bonus systemsystem
Gantt ChartGantt Chart
LimitationsLimitations
These principles focus on solutions of These principles focus on solutions of problems from engineering point of viewproblems from engineering point of view
Motivated primarily by desire for material Motivated primarily by desire for material gainsgains
Ignore human desire for job satisfactionIgnore human desire for job satisfaction
Administrative TheoryAdministrative Theory
Focus: coordination of internal Focus: coordination of internal activities of organizationsactivities of organizations
Henry Fayol (1841-1925)Henry Fayol (1841-1925)
Developed general Developed general theory of theory of
management.management.
Business Operations of an Business Operations of an OrganisationOrganisation
Acc. To Fayol, business operations of an Acc. To Fayol, business operations of an organization could be divided into 6 activities:organization could be divided into 6 activities:
Technical – Producing and manufacturing Technical – Producing and manufacturing productsproducts
Commercial - Buying, selling , exchangeCommercial - Buying, selling , exchange Financial – Search for optimal use of capitalFinancial – Search for optimal use of capital Security Activities - Protecting employees and Security Activities - Protecting employees and
propertyproperty Accounting Activities - Recording and taking stock Accounting Activities - Recording and taking stock
of cost, profits and liabilitiesof cost, profits and liabilities Managerial Activities - Planning, Organizing, Managerial Activities - Planning, Organizing,
Commanding, Coordinating, ControllingCommanding, Coordinating, Controlling
Managerial ActivitiesManagerial Activities
Principles of managementPrinciples of management
Division of work Division of work AuthorityAuthority DisciplineDiscipline Unity of commandUnity of command Unity of directionUnity of direction Subordination of Subordination of
individual interestindividual interest RemunerationRemuneration
CentralizationCentralization Scalar chainScalar chain OrderOrder EquityEquity Stability of tenureStability of tenure InitiativeInitiative Esprit de corps Esprit de corps
Bureaucratic ManagementBureaucratic Management Emphasized the need for Emphasized the need for
organizations to function organizations to function on a rational basison a rational basis
Observed practice of Observed practice of nepotism and nepotism and condemned it.condemned it.
Identified characteristics Identified characteristics of Bureaucracy.of Bureaucracy.
Bureaucracy derived Bureaucracy derived from German word from German word buroburo, , meaning office.meaning office.
A highly structured, A highly structured, formulized and formulized and impersonal organization.impersonal organization.
Characteristics of Weber’s Characteristics of Weber’s BureaucracyBureaucracy
Work specializationWork specializationAbstract rules and regulationsAbstract rules and regulations Impersonality of ManagersImpersonality of ManagersHierarchy of organization structureHierarchy of organization structure
Advantages of Bureaucratic Advantages of Bureaucratic ManagementManagement
Help remove ambiguities and Help remove ambiguities and inefficiencies that characterize many inefficiencies that characterize many organizations.organizations.
Undermine the culture of patronage Undermine the culture of patronage that he saw in conflict with the that he saw in conflict with the principle of unity if controlprinciple of unity if control
Limitations of Bureaucratic Limitations of Bureaucratic Management and Administrative Management and Administrative
theorytheory Principles inapplicable to today's complex Principles inapplicable to today's complex
organizations.organizations. Fayol’s principle of specialization in conflict with Fayol’s principle of specialization in conflict with
principle of unity of control.principle of unity of control. Principle characteristics of bureaucracy destroy Principle characteristics of bureaucracy destroy
creativity and flexibility to respond to complex creativity and flexibility to respond to complex changes in global environment.changes in global environment.
Classical Theorists ignored important aspects of Classical Theorists ignored important aspects of organizational behavior.organizational behavior.
Failed to consider impact of external and internal Failed to consider impact of external and internal environment upon employee behavior in environment upon employee behavior in organizations.organizations.
Behavioral ApproachBehavioral Approach
Emphasis on Human ElementEmphasis on Human Element
Mary Parker Follet: Focus on Mary Parker Follet: Focus on Group InfluencesGroup Influences
Human ElementHuman Element GroupsGroups Power SharingPower Sharing IntegrityIntegrity
Elton Mayo: Focus on Human Elton Mayo: Focus on Human RelationsRelations
Hawthorne Experiment: Hawthorne Experiment: four phasesfour phases
Illumination Illumination ExperimentsExperiments
Relay Assembly Test Relay Assembly Test Room ExperimentRoom Experiment
Interview PhaseInterview Phase Bank wiring Bank wiring
observation room observation room experimentexperiment
Contributions of the ExperimentContributions of the Experiment
PrejudgmentsPrejudgments Job performance Job performance
depends on the depends on the individual workerindividual worker
Fatigue is the main Fatigue is the main factor affecting factor affecting outputoutput
Management sets Management sets production production standardsstandards
FindingsFindings The group is the key The group is the key
factor in job factor in job performanceperformance
Perceived meaning Perceived meaning and importance of and importance of the work determine the work determine outputoutput
Workplace culture Workplace culture sets its own sets its own production standardproduction standard
CriticismsCriticisms
Analysis supported by little evidenceAnalysis supported by little evidenceRelationship between satisfaction Relationship between satisfaction
and productivity- too simplisticand productivity- too simplisticFailed to focus attention on the Failed to focus attention on the
attitudes of employeesattitudes of employees
What is Human What is Human Relations Approach?Relations Approach?
LimitationsLimitations
The approach says very little about The approach says very little about positive motivationpositive motivation
It does not provide enough focus on It does not provide enough focus on workwork
It tends to be very vagueIt tends to be very vague
Abraham MaslowAbraham Maslow
Three assumptions:Three assumptions: Needs are never Needs are never
completely fulfilledcompletely fulfilled Through over actions Through over actions
we satisfy our we satisfy our unsatisfied needsunsatisfied needs
Hierarchical of needsHierarchical of needs 1. Physiological Needs1. Physiological Needs 2. Safety or security 2. Safety or security
needsneeds 3. Social Needs3. Social Needs 4. Self Fulfillment 4. Self Fulfillment
NeedsNeeds
Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs
Douglas McGregorDouglas McGregor
Challenging Challenging Traditional Traditional
Assumptions about Assumptions about EmployeesEmployees
Theory X and Theory YTheory X and Theory Y
Chris Argyris: Matching Human and Chris Argyris: Matching Human and Organizational DevelopmentOrganizational Development
Three major Three major contributions:contributions:
Maturity-Maturity-Immaturity TheoryImmaturity Theory
Integration and Integration and Organizational Organizational GoalsGoals
Model I and Model Model I and Model IIII
Quantitative ApproachQuantitative Approach
Quantitative ApproachQuantitative Approach
Emerged during World War IIEmerged during World War II Includes:Includes:Application of statisticsApplication of statisticsOptimization modelsOptimization models Information ModelsInformation ModelsComputer SimulationsComputer Simulations
Branches of quantitative Branches of quantitative approach:approach:
Management ScienceManagement ScienceOperations ManagementOperations ManagementManagement Information SystemManagement Information System
Management ScienceManagement Science
Need for management science???Need for management science???
Areas of usage:Areas of usage: Capital Budgeting and cash flow managementCapital Budgeting and cash flow management Production SchedulingProduction Scheduling Development of product strategiesDevelopment of product strategies Planning for human resource development Planning for human resource development
programsprograms Maintenance of optimal inventory levelsMaintenance of optimal inventory levels Aircraft SchedulingAircraft Scheduling
Operations ManagementOperations Management
Operations Management:Operations Management:
Applied form of management science.Applied form of management science.Concerned with:Concerned with: Inventory ManagementInventory ManagementWork SchedulingWork SchedulingProduction PlanningProduction PlanningFacilities, location and designFacilities, location and designQuality assuranceQuality assurance
Management Information Management Information SystemSystem
Focus: Designing and Focus: Designing and implementing computer implementing computer
based information systembased information system
Modern Approaches To Modern Approaches To ManagementManagement
Modern Approaches To ManagementModern Approaches To Management
System TheorySystem Theory
This system approach gives manager a This system approach gives manager a new way of looking at an organization as a new way of looking at an organization as a whole and as a part of the larger, external whole and as a part of the larger, external environmentenvironment
Two types of systems:Two types of systems: Open System- which interacts with its Open System- which interacts with its
environmentenvironment Closed System – which does not interact Closed System – which does not interact
with its environmentwith its environment
Contingency theoryContingency theory
Also known as situational theory.Also known as situational theory.According to this theory, there is no According to this theory, there is no
one best way manage all situationsone best way manage all situationsDeveloped by managers, consultants Developed by managers, consultants
and researchers who tried to apply and researchers who tried to apply the concepts of the major schools of the concepts of the major schools of management thought to real life management thought to real life situation.situation.
Emerging Approaches in Emerging Approaches in Management ThoughtManagement Thought
William Ouchi, William Ouchi, conducted research on conducted research on both American and both American and Japanese management Japanese management approaches and outlined approaches and outlined a new theory called a new theory called theory Z.theory Z.
Theory ZTheory Z
Involves providing job security to Involves providing job security to employees.employees.
Ensures job rotation of employees to Ensures job rotation of employees to develop their cross-rotational skills.develop their cross-rotational skills.
Advocates participation of employees in the Advocates participation of employees in the decision making processdecision making process
Emphasizes on use of informal control in Emphasizes on use of informal control in organization.organization.
Shows concern for employee’s wellbeingShows concern for employee’s wellbeing Lays emphasis on their training and Lays emphasis on their training and
developmentdevelopment
Thank YouThank You