EVOLUTION OF MANAGEMENT

WHAT IS MANAGEMENT ? ? ? “The thing , the manager does …” “Getting things through others”

TOP LEVEL

MIDDLE LEVEL

LOWER LEVEL

LEVELS OF MANAGEMENT

EVOLUTION OF MANAGEMENT

SCIENTIFIC MANAGEMENT THEORYADMINISTRATIVE THEORYBEHAVIOURAL MANAGEMENT THEORYMANAGEMENT SCIENCE THEORYORGANISATIONAL ENVIRONMENT THEORY

SCIENTIFIC MANAGEMENT

DEVELOPED BY FREDRICK TAYLOR AND HUSBAND –WIFE TEAM OF FRANK AND LILLIAN GILBERTH

FREDRICK TAYLOR WAS BASICALLY AN ENGINEER, AUTHOR OF “PRINCIPLES OF SCIENTIFIC MANAGEMENT” IN 1911.

NO OTHER PERSON OTHER THAN TAYLOR HAD A GREAT IMPACT ON MANAGEMENT ,THAT TOO IN EARLY DEVELOPMENT OF MANAGEMENT.

FREDRICK TAYLOR IS CALLED AS “FATHER OF SCIENTIFIC MANAGEMENT”

TAYLORS MAJOR CONCERN THROUGHOUT MOST OF HIS LIFE WAS TO INCREASE THE EFFICIENCY IN PRODUCTION,NOT ONLY TO LOWER COST AND RAISE PROFITS BUT ALSO TO MAKE POPSSIBLE INCREASED PAY FOR WORKERS THROUGH THEIR HIGHER PRODUCTIVITY .

HE KNEW THAT MUCH HIGHER PRODUCTIVITY WAS POSSIBLE WITHOUT UNREASONABLE EFFORT BY WORKERS.

PROBLEM OF PRODUCTIVITY WAS A MATTER OF IGNORANCE ON THE PART OF THE MANAGEMENT AND LABOR. NEITHER MANAGERS NOR WORKERS KNEW WHAT CONSTITUTED A “fair day’s work” AND “fair day’s pay”.

MOREOVER ,HE BELIEVED THAT BOTH MANAGERS AND WORKERS WERE CONCERNED TOO MUCH WITH HOW THEY SHOULD DIVIDE THE SURPLUS ---the split in thinking between pay and profits …..AND NOT ENOUGH WITH INCREASING THE SURPLUS SO THAT BOTH OWNERS AND LABORERSCOULD GET MORE COMPENSATION.

PRINCIPLES TO INCREASE EFFICIENCY

KNOW THE WAYS BY WHICH JOBS ARE PERFORMED

GATHER FULL INFORMATION.

TRY MANY METHODS TO SEE WHICH IS BEST.

CHANGE THE METHODS INTO RULES.

IMPLEMENT THE NEW METHODS TO THE WORKERS.

IDENTIFY THE WORKERS WHOSE SKILLS MATCHES THE RULES.

PAY A PREMIUM FOR HIGHER PERFORMANCE.

PROBLEMS WITH SCIENTIFIC MANAGEMENT

WORKERS DID NOT SHARE IN THE INCREASED OUTPUT. WORKERS ENDED DISTRUSTING THE SCIENTIFIC

MANAGEMENT METHOD. MANAGEMENT RESPONDED WITH INCREASEDUSE OF

MACHINES .

ADMINISTRATIVE MANAGEMENT THEORY

THE ADMINISTRATIVE MANAGEMENT THEORY IS MORE CONCERNED TO CREATE AN “ORGANISATIONAL STRUCTURE” WHICH AUTOMATICALLY LEADS TO EFFICIENCY AND EFFECTIVENESS.

MAX WEBER: HE DEVELOPED THE CONCEPT OF BUREAUCRACY AS A FORMAL SYSTEM OF ORGANISATION AND ADMINISTRATION DESIGNED TO ACHIEVE EFFICIENCY.

WEBER’S PRINCIPLE OF BUREAUCRACY

LINE OF AUTHORITY MUST BE CLEARLY DEFINED .i.e who is accountable to whom????

THERE SHOULD BE PROPER RULES TO GUIDE THE FIRM’S OPERATIONS.

DUTIES MUST BE CLEARLY IDENTIFIED ,SO PEOPLE KNOW WHAT IS EXPECTED.

POSITION IN THE FIRM MUST BE BASED ON THEIR EFFICIENCY AND PERFORMANCE,BUT NOT ON SOCIAL CONTACTS.

HENRY FAYOL’S PRINCIPLE OF MANAGEMENT..

DIVISION OF LABOR ALLOWS FOR JOB SPECIALISATION.

UNITY OF COMMAND

AUTHORITY AND RESPONSIBILITY

LINE OF AUTHORITY

UNITY OF DIRECTION

EQUITY

INITIATIVE

ESPRIT DE CORPS

BEHAVIORAL MANAGEMENT THEORY…

BEHAVIORIAL MANAGEMENT THEORY IS A PERSPECTION ON MANAGEMENT THAT EMPHASIZE THE IMPORTANCE OF ATTEMPTING TO UNDERSTAND THE VARIOUS FACTORS THAT AFFECT HUMAN BEHAVIOR IN AN ORGANIZATION.

THIS THEORY IS OFTEN CALLED AS THE HUMAN RELATIONS THEORY.

IT MAINLY FOCUSES ON THE WAY A MANAGER SHOULD PERSONALLY MOTIVATE , MANAGE AND INTERACT WITH THEIR EMPLOYEES.

WHEN THE FOCUS IS ON HUMAN BEINGS AND RELATIONS, THE MORALE OF THE WORKERS GOES UP INCREASING PRODUCTIVITY AND EFFICIENCY OF THE ORGANIZATION.

ELTON MAYO ELTON MAYO IS REGARDED AS THE FATHER OF HUMAN

RELATION APPROACH. HE CONDUCTED A SERIES OF EXPERIMENT TO STUDY THE IMPACT OF ILLUMINATION AND OTHER WORKING CONDITIONS ON THE PRODUCTIVITY OF WORKERS. THIS IS KNOWN AS HAWTHORNE STUDIES.

IT IS DIVIDED INTO THREE GROUPS• TEST ROOM STUDIES

ILLUMINATION EXPERIMENT RELAY ASSEMBLY ROOM EXPERIMENT

• INTERVIEWING STUDIES• OBSERVATION STUDIES

ABRAHAM MASLOW HE IS A PSYCHOLOGIST AND HE DEVELOPED ONE OF THE

WIDELY RECOGNIZED NEED THEORIES.HIS THEORY IS BASED ON THESE ASSUMPTIONS:• Human needs are never completely satisfied.• Human behavior is purposeful and is motivated by the need for

satisfaction. HE BROKE DOWN THE NEEDS INTO 5 SPECIFIC AREAS:• Physiological needs• Safety needs.• Belonging needs.• Esteem needs• Self actualization needs.‐

Douglas McGregor HE WAS HEAVILY INFLUENCED BY BOTH OF THE THEORIES

MENTIONED ABOVE. HE BELIEVED THAT 2 KINDS OF MANAGER EXIST

• TYPE 1 manager, has a negative view of employees and assumes that they are lazy, untrustworthy, and incapable of assuming responsibility.

• TYPE 2 manager assumes that employees are not only trustworthy and capable of assuming responsibility, but also have high levels of motivation.

• An important aspect of McGregor's idea was his belief that managers who hold either set of assumptions can create self‐fulfilling prophecies — that through their behavior, these managers create situations where subordinates act in ways that confirm the manager's original expectations.

MARY PARKER FOLLETT MARY PARKER WAS A WRITER,SOCIAL WORKER,POLITICAL THEORIST AND

ORGANIZATIONAL CONSULTANT,COMMONLY KNOWN AS” THE WOMEN WHO INVENTED MANAGEMENT”.

SHE CLEARLY DEFINED THE AUTHORITY AND POWER OF A PERSON IN ORGANISATION.

IF THE WORKERS POSSESS RELEVANT KNOWLWDGE ABOUT THE JOB THEY DOES, THEY CAN CONTROL THE JOB.

The key concepts that underpin Follett's philosophy are:• Interrelatedness - 'coactive' as opposed to coercive.• Power with an emphasis on 'power-with' rather than 'power-over'

people; • A community-based approach with the idea that natural leaders are born

within the group• The leader guides and in turn is guided by the group.• Her idea of fluid leadership where leaders and followers are in a

relationship and the role of leader flows when it is needed,created informal leadership also in an organization.

ORGANISATIONAL ENVIRONMENT THEORY

THE SET OF FORCES AND CONDITIONS THAT OPERATE BEYOND AN ORGANISATION’S BOUNDARIES BUT IT AFFECTS THE MANAGER’S ABILITY TO ACQUIRE AND UTILIZE RESOURCES.

OPEN SYSTEMS VIEW TAKES RESOURCES FOR ITS EXTERNAL ENVIRONMENT AND CONVERTSTHEM INTO GOODS AND SERVICES THAT ARE SENT DACK TO THAT ENVIRONMENT FOR PURCHASE BY CUSTOMERS.

INPUT: THE COLLECTION OF EXTERNAL INFORMATION

CONVERSION:THE PROCESSING OF INPUTS INTO GOODS AND SERVICES.

OUTPUT: THE RELEASE OF FINISHED GOODS INTO THE ENVIRONMENT.

MANAGEMENT SCIENCE THEORY

• IT USES THE BEST QUANTITATIVE TECHNIQUES TO MAXIMIZE THE RESOURCES OF THE ORGANISATION.

QUANTITATIVE MANAGEMENTOPERATIONS MANAGEMENTTOTAL QUALITY MANAGEMENTMANAGEMENT INFORMATION SYSTEM(MIS)

QUANTITATIVE APPROACH TO MANAGEMENT

IT BASICALLY FOCUSES ON IMPROVING MANAGERIAL DECISION MAKING BY APPLYING

STATISTICS OPTIMIZATION MODELS INFORMATION MODELS COMPUTER SIMULATIONS

OPERATIONS MANAGEMENT

IT IS BASICALLY CONCERNED WITH OVERSEEING DESIGNINGAND CONTROLLING THE PROCESS

OF PRODUCTION AND REDESIGNING BUSINESS OPERATIONS IN

THE PRODUCTION OF GOODS OR SERVICES

TOTAL QUALITY MANAGEMENT

• THE MAIN OBJECTIVE IS TO IMPROVE THE QUALITY THROUGHOUT AN ORGANISATION

MANAGEMENT INFORMATION SYSTEM(MIS)

• GIVES AN OVERALL PICTURE OF THE COMPANY

• ACTS AS A COMMUNICATION AND PLANNING TOOL

• HELPS A COMPANY GAIN A COMPETITIVE ADVANTAGE

CONTINGENCY THEORYTHE IDEA THAT THE

ORGANIZATIONAL STRUCTURES AND CONTROL SYSTEMS

MANAGER CHOOSE DEPENDS ON ARE CONTINGENT ON—

characteristics of external environment IN WHICH THE ORGANISATION OPERATES.

THE MANAGERS MUST BE FLEXIBLE TO REACT TO THE ENVIRONMNET

CHANGES.

IN THIS RAPIDLY CHANGING ENVIRONMENT, MANAGERS

MUST FIND WAYS TO CO ORDINATE DIFFERENT

DEPARTMENTS TO RESPOND QUICKLY AND EFFECTIVELY

MECHANISTIC AND ORGANIC STRUCTURES

MECHANIC STRUCTURE: AUTHORITY IS CENTRALISED AT THE TOP. EMPLOYEES ARE CLOSELY MONITORED. CAN BE VERY EFFICIENT IN STABLE ENVIRONMENT.

ORGANIC STRUCTURE: AUTHORITY IS DECENTRALISED THROUGHOUT THE ORGANISATION TASKS ARE MEANT TO ENCOURAGE EMPLOYEES TO REACT QUICKLY TO THE CHANGING ENVIRONMENT….

MANAGEMENT AND SOCIETYBUSINESS ORGANISATION.

1.SOLE TRADERSHIP.2.JOINT HINDU FAMILY&PARTNERSHIP.3.JOINT STOCK COMPANY4.CO OPERATIVE SOCIETY5.DEPARTMENTAL UNDERTAKING6.PUBLIC CORPORATION7.GOVERNMENT COMPANY8.BOARD ORGANISATION.

HOPE NO QUERIES…??? THANK ALL FOR YOUR VALUABLE TIME