Development Of Management Thought

Early contribution (up to 19th century) Classical Approach Neo-Classical Approach Modern Approach

EARLY CONTRIBUTION (up to 19th century)

Roman catholic church administration which was further carried on by military organisation. (320) Concept of organisation and administration existed in Egypt. (1300)

Classical Approach
Scientific Management (1900-30) Administrative Management (1916-40)

Scientific Management (1900-30)

Focuses on the productivity of the individual worker
Frederick W. Taylor

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Scientific Management is concerned with knowing exactly what you want men to do & then see in that they do it in the best and cheapest way. It was concerned essentially with improving the operational efficiency at the shop floor level. Standardizing the work and better method of doing the work.

ELEMENT AND TOOLS OF SCIENTIFIC MANAGEMENT

Separation of planning and doing Functional foremanship (planning and production incharge) Job analysis (Time, motion and fatigue study) Standardization (period, amount and cost of work) Scientific selection and training to workers Financial incentives (Concept of differential piece rate system) Economy (utilization of resources and elimination wastage) Mental revolution (create co-operation and reduce conflict between worker and management)

PRINCIPLE OF SCIENTIFIC MANAGEMENT

Replacing role of thumb with science
(organised knowledge differential piece rate system)

Harmony in group action

(give & take situation and proper understanding group contributes to the maximum)

Co-operation
(between management and workers mutual understanding and a change in thinking)

Maximize output
(continuous increase in production and productivity either by mgmt. or worker

Development of worker
(providing training at the work place to mew method of working)

ADMINISTRATIVE MANAGEMENT (1916-40)

Focuses on the managers and the functions they perform at various level. The first to recognize that successful managers had to understand the basic managerial functions.
Henri Fayol

BASIC MANAGERIAL FUNCTIONS

Technical (relating to production) Commercial (buying, selling and exchange) Financial (Search for capital and it optimum use) Security (protection of property and person) Accounting (including statistics) Managerial (Planning, organization, command, coordination and contorl)

Managerial Quality
Physical (health, vigor and address) Mental (ability to understand and learn, judgment, mental vigor and capability) Moral (energy, control, loyalty, tact and digntiy) Technical (peculiar to the function being performed) Experience (arising from the work)

PRINCIPLES OF MANAGEMENT
Division of Labor: allows for job specialization. Authority and Responsibility: both formal and informal authority result from special expertise. Discipline: workers need to obey self imposed and command discipline. Unity of Command: workers have only one boss. Unity of Direction: single plan of action to guide the organization. Subordination of Individual Interest to the Common Interest: interest of organization priority Remuneration of Personnel: pay what is fair.

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Centralization: degree to which authority rests at the top of the organization. Line of Authority/Scalar chain: clear chain of command, top to bottom of the firm. Order: place workers where most useful and have career opportunities. Stability of Tenure of Personnel: Long-term employment is important Equity - The provision of justice and the fair and impartial treatment of all employees. Initiative: encourage employees to act on their own. Esprit de corps: Have enthusiasm

Neo-Classical Approach

Human relations approach (1930-50) Social systems approach (1940-50) Decision theory approach (1945-65) Management science approach (1950-60) Human behaviour approach (1950-70)

HUMAN RELATIONS APPROACH (1930-50)

The study the relationship between productivity and physical working conditions.
Hawthorne experiments

THE FOUR PHASES OF EXPERIMENT

Illumination Experiments
Amount of light at workplace affected the productivity.

Relay assembly test room experiments

Effects of change in(5-10mins)hours & other working condition.

Mass interviewing programme

Determine worker attitude and sentiment.

Bank wiring observation room experiments

Determination & analysis of social organisation.
Fear of unemployment Fear of raising the standards Protection of slower workers Satisfaction on the part of management

SOCIAL SYSTEMS APPROACH (1940-50)

A cultural system composed of people who work in cooperation system can be developed by understanding the behaviour of people in groups.
Relationships exist both external and internal environment of organisation. For effective management, by combination on goals of organisation and the various groups therein.

DECISION THEORY APPROACH (1945-65)

It looks at the basic problem of management around decision-making the selection of a suitable course of action out of given alternatives. The manager is a decision-maker and organisation is a decision making unit.
Members of the organisation are decision-maker and problem solver. Quality of decision affects the organisational effectiveness.

MANAGEMENT SCIENCE APPROACH (1950-60)

Management science approach, also known as mathematical or quantitative measurement approach, visualises management as a logical entity, the action of which can be expressed in terms of mathematical symbols, relationships and measurement data.
Problem-solving mechanism with the help of mathematical tools and techniques. This approach cover decision making, systems analysis and some aspects of human behaviour.

HUMAN BEHAVIOUR APPROACH (1950-70)

This is the out come of the thoughts development by behavioural scientists who have looked at the organisation as collective of people for certain specified objectives.

The approach, also known as

Leadership Behavioural science Human resource approach Upon the study on Human Behaviour

MODERN APPROACH
Systems Approach (1960-onwords) Contingency/situational Approach (1970-onwords)

SYSTEMS APPROACH (1960-onwords)

The system is simple terms in respect to management it is a set of different independent parts working together in interrelated manner to accomplish a set of objectives.
All living organisms are open system. All non-living systems are closed system.

Contingency/situational Approach (1970-onwords)

An approach that says that organizations are different face different situations (contingencies) and require different ways of managing. Contingency approach takes into account not only given situations but also the influence of given solutions on behaviour patterns of the organisation.

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