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MANAGEMENT HISTORY

MANAGEMENT HISTORY. Early management thought. Industrial revolution began in Europe in the mid -1700s Rapid growth in the number of factories during this period Need to coordinate the efforts of large number of people in the production process. Classification of management approach.

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MANAGEMENT HISTORY

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  1. MANAGEMENT HISTORY

  2. Early management thought • Industrial revolution began in Europe in the mid -1700s • Rapid growth in the number of factories during this period • Need to coordinate the efforts of large number of people in the production process

  3. Classification of management approach

  4. Classical approach • A theory that focused on finding the “one best way” to perform and manage tasks. • Scientific school – focused on the manufacturing environment • Administrative school – emphasized the flow of information and how organisations should operate • Bureaucratic school – emphasized on the need for organisations to function on a rational basis

  5. Scientific school/management • Early 1900s • It is defined as “that kind of management which conducts a business or affairs by standards established, by facts or truths gained through systematic observation, experiment or reasoning.” • With the growth of the industrial revolution, managers became concerned with increasing efficiency. • Many mechanical engineers examined causes of inefficiency and tried experiments to find more efficient methods and procedures for control. • From these experiments, this system came into existence.

  6. F. W. TAYLOR

  7. f.w.taylor • Father of scientific management (1878) • He was engineer and inventor. • Organisations were facing soldiering problem. • Soldiering refers to the practice of employees deliberately working at a pace slower trap their capabilities.

  8. Taylor found that following are the 3 main reasons for soldiering: • Workers feared that if they increased their productivity other workers would lose their jobs. • Faulty wage systems employed by the organisation encouraged them to work at a slow pace. • Outdated methods of working handed down from generation to generation led to a great deal of wasted efforts.

  9. Taylor emphazizes on four aspects: • Develop a science of management • Select workers scientifically • Develop and train workers scientifically • Create cooperation between management and labour

  10. The two major managerial practices that emerged from Taylor’s approach to management • Piece rate incentive system • Time and motion study

  11. Lillian gilbreth • 1868-1924 • Frank and Lillian Gilbreth made their contribution as a husband and wife team. • Motion study involves finding out the best sequence and minimum number of motions needed to complete a task. • Explore new ways for eliminating unnecessary motions and reducing work fatigue.

  12. Lillian gilbreth

  13. h.l.gantt • He saw the importance of the human element in production and introduced the concept of motivation as used in industry. • He introduced 2 new features in Taylor’s pay incentive scheme. • Every worker who finished a day’s assigned work load was to win a 50 cent bonus for that day. • Even the foreman was rewarded with a b onus for each worker who reached the daily standard plus an extra bonus if all the workers reached it. • Developed an idea of rating an employee publicly • It is a Simple chart that compares actual and planned performance.

  14. h.l.gantt

  15. Limitations of scientific management • Do not focus on the management of an organization from a manager’s point of view. • people were “rational” and were motivated primarily by the desire for material gain. • It also ignored the human desire for job satisfaction.

  16. Administrative school • It focused on principles that could be used by managers to coordinate the internal activities of organizations. • Henri Fayol (1841-1925) • Fayol divided all activities into 6 main groups. • Technical • Commercial • Financial • Security • Accounting • managerial

  17. HENRY FAYOL

  18. Principles of fayol Fourteen principles: • Division of work • Authority and responsibility • Discipline • Unity of command • Unity of direction • Subordination of the individual interest to the general interest

  19. Remuneration • Centralization: • Scalar chain • Order • Equity • Stability • Initiative • Espirit de corps (team spirit)

  20. Bureaucratic management Weber (1864-1920) Characteristics of Weber’s ideal organisation: • Work specification and division of labor • Formal selection • Formal rules • Hierarchy of organization

  21. MAX WEBER

  22. Limitations of Bureaucratic Management and Administrative theory • Not universally applicable to today’s complex organizations. • Fayol’s principles like that of specialization were frequently in conflict with the principle of unity of command. • Principle characteristic of bureaucracy changes in the global environment. • Classical theorists ignored the problems of leadership, motivation, power or information relations.

  23. Behavioral approach • Behavioral theorists viewed organisation from the individual’s point of view. • The behavioral approach to management emphasized individual attitudes and behaviors and group processes and recognised the significance of behavioral processes in the work place. • It is also called as human relations movement because it addresses the human dimensions of work such as motivation,conflict,expectations and group dynamics.

  24. ELTON MAYO

  25. Hawthorne experiments • Illumination experiments –based on the hypothesis that illumination increases productivity. • Relay assembly test room –small group of employees were seperated from the actual work place and place in a separate room with number of variables • Interviewing programme – social relations among the workers within the organisation played a decisive role in the production.

  26. Bank wiring room experiments -The purpose of the next study was to find out how payment incentives would affect productivity. The researchers found that although the workers were paid according to individual productivity, productivity decreased because the men were afraid that the company would lower the base rate.

  27. Elton Mayo (1868-1933)

  28. Abraham maslow :theory of motivation

  29. A theory of motivation based upon three assumptions: • Human needs are never completely satisfied. • Human behavior is purposeful and motivated by the need for satisfaction. • Needs can be classified according to a hierarchial structure of importance, from the lowest to highest.

  30. Maslow’s Hierarchy of Needs MOST NEEDS HAVE TO DO WITH SURVIVAL PHYSICALLY AND PSYCHOLOGICALLY PHYSIOLOGICAL OR SURVIVAL NEEDS

  31. Maslow’s Hierarchy of Needs ON THE WHOLE AN INDIVIDUAL CANNOT SATISFY ANY LEVEL UNLESS NEEDS BELOW ARE SATISFIED SAFETY NEEDS PHYSIOLOGICAL OR SURVIVAL NEEDS

  32. Maslow’s Hierarchy of Needs LOVE, AFFECTION, AND BELONGINGNESS NEEDS SAFETY NEEDS PHYSIOLOGICAL OR SURVIVAL NEEDS

  33. Maslow’s Hierarchy of Needs ESTEEM NEEDS LOVE, AFFECTION, AND BELONGINGNESS NEEDS SAFETY NEEDS PHYSIOLOGICAL OR SURVIVAL NEEDS

  34. Maslow’s Hierarchy of Needs NEED FOR SELF- ACTUALIZATION MASLOW EMPHASIZES NEED FOR SELF ACTUALIZATION IS A HEALTHY INDIVIDUAL’S PRIME MOTIVATION SELF-ACTUALIZATION MEANS ACTUALIZING ONE’S POTENTIAL BECOMING ALL ONE IS CAPABLE OF BECOMING

  35. Maslow’s Hierarchy of Needs NEED SELF- ACTUALIZATION ESTEEM NEEDS LOVE, AFFECTION, AND BELONGINGNESS NEEDS SAFETY NEEDS PHYSIOLOGICAL OR SURVIVAL NEEDS

  36. Douglas Mcgregor

  37. Douglas Mcgregor

  38. Modern approach • System theory • Contingency theory

  39. System theory • This system identified common themes to managing and organising complex systems. • The organisation is a sub-system composed of four interdependent parts-task, structure, people and technology. • Synergy : it means whole is greater than the sum of its parts. • Open and closed system: for example, an advertising agency is far more open system than Tihar jail.

  40. System boundary: each system has its own boundaries which separate it from other systems in the environment. • Flow: every system has flows of information, materials and energy. Converting a transaction into a balance sheet is an informational flow, while converting the raw materials into the finished goods is a physical flow. • Feedback: this is the mechanism of control. Information can be fed back either during the transformation process or at the output stage in order to detect any deviations from plans so that corrective action may be taken.

  41. Systems Theory Inputs Transformation process Outputs • Resources • Labor • Materials • Capital • Machinery • Information • Managerial and • Technological • Abilities • Planning • Organizing • Staffing • Leading • Controlling • Technology • Goods • Services • Profits and losses • Employee • satisfaction Feedback

  42. Limitations of system approach • This approach is theoretical and abstract and is not amenable to practice in reality. • It lacks universal application. • The system approach does not contribute to any newer knowledge.

  43. Contingency theory • It is also known as situational theory. • According to this theory, there is no one best way to manage all situations. • “It depends” holds good for several management situations. • It is based on the premise that the result is the outcome of the situation and results differ because the situation’s differ.

  44. E.g. to increase the productivity of a worker, the scientific management approach advocated the simplification of work, the behavioral school advocated various incentives as a motivating force like job enrichment while the contingency approach emphasized on which method will be appropriate to increase the productivity of the workers under the given situations. • The task of manager is to identify which technique will, in a particular situation, under particular circumstances and at a particular time, best contribute to the attainment of management goals.

  45. Contingency Theory • Systems Viewpoint • How the parts fits • together • Individual • Group • Organization • environment • Contingency Viewpoint • Managers’ use of other view points to solve problems • External environment • Technology • Individuals • Traditional • viewpoint • What managers • do • Plan • Organize • Lead • Control • Behavioral Viewpoint • How managers influence • others • Interpersonal Roles • Informational Roles • Decisional Roles

  46. Limitations of contingency theory • Lack of clarification about situation prescription. • Complexity of the situations • Lack of empirical testing about the appropriateness the managerial act • It is reactive rather than a proactive approach

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