Evolution of Management Thought

Rita Prusty

Classification of Management thoughtClassical Taylor and scientific management Fayols administrative management Neoclassical Hawthorne experiments and human relations Social systems approach Decision theory approach Management science approach Human behaviour approach Modern Systems approach Contingency and situational approach

Taylor and scientific management Concept was introduced by Frederick Winslow Taylor Father of Scientific Management. Defn.- Scientific Management is concerned with knowing exactly what you want men to do and then see that they do it in the best and cheapest way. Believed increased productivity depended on finding ways to make workers more efficient Used time-and-motion studies to analyze work flows, supervisory techniques, and worker fatigue Used functional foremanship, a division of labor that assigned eight foremen to each work area Assumed workers motivated by money $$

Elements and Tools of scientific management1. 2. 3. 4. 5. 6. 7. 8. Separation of Planning and doing Functional Foremanship Job Analysis Standardisation Scientific Selection and training of workers Financial incentives Economy Mental revolution

Principles of Scientific Management1. 2. 3. 4. 5. Replacing Rule of Thumb with Science Harmony in group action Co-operation Maximum output Development of Workers

Taylors Work?
He was interested in machines -apprenticeship in industry: Midvale Steel Shocked by how inefficient his fellow workers were timed workers with stopwatches break down job into parts, make parts efficient figure out how to hire the right worker for the job give the worker appropriate training

Taylors Work? Contd.

introduced incentive pay plans (workers were assumed to be motivated only by money). Believed would lead to cooperation-management and worker Studied design of shovels and introduced a better design at Bethlehem Steel Works, reducing the number of people shoveling from 500 to 140

Scientific Management

The Gilbreths
Frank Gilbreth used motion pictures to analyze workers motions

Lillian Gilbreth championed protecting workers from unsafe working conditions

Henry Gantt
Focused on control systems for production scheduling (Gantt Chart)

Frank and Lillian Gilbreth

refined Taylors methods and suggested 1. Breaking down each action into individual components. 2. Find better ways to perform the action. 3. Reorganize each action to be more efficient.
Problems associated with Scientific Management Managers often gave attention only to increasing output They did not allow workers to share in the benefits of increased output. Specialized jobs became very boring & dull. Workers ended up distrusting Scientific Management.

Insights from Scientific Management

Many companies have used scientific management principles to improve efficiency, employee selection and training
Scientific management failed to recognize the social needs of workers and the importance of working conditions and job satisfaction

Fayols Principles of Effective Management

Division of Work: allows for job specialization. Work should be divided among individuals and groups. Authority and Responsibility Authority right to give orders Responsibility involves being answerable Whoever assumes authority assumes responsibility Discipline Common efforts of workers. Penalties Unity of Command Employees should have only one boss.

 Unity of Direction A single plan of action to guide the organization. Subordination of individual interests to the general interests of organization Remuneration An equitable uniform payment system that motivates contributes to organizational success. Centralization The degree to which authority rests at the top of the organization. Scalar Chain Chainlike authority scale. Most vs. least authority

 Order The arrangement of employees where they will be of the most value to the organization and to provide career opportunities. Equity The provision of justice and the fair and impartial treatment of all employees. Stability of Tenure of Personnel Long-term employment is important for the development of skills that improve the organizations performance. Subordination of Individual Interest to the Common Interest The interest of the organization takes precedence over that of the individual employee.

 Initiative The fostering of creativity and innovation by encouraging employees to act on their own. Esprit de corps Harmony, general good feeling among employees, shared enthusiasm, foster devotion to the common cause (organization).

The Hawthorne Studies

Studies of how characteristics of the work setting affected worker fatigue and performance at the Hawthorne Works of the General Electric Company from 1924-1932. Worker productivity was measured at various levels of light illumination. Researchers found that regardless of whether the light levels were raised or lowered, worker productivity increased.

The Hawthorne Studies

The Hawthorne Studies
The Relay Assembly Test Room Experiments

Working conditions and productivity

The Bank Wiring Observation Room Experiment

Analyze the social relationships in a work group

Lessons from the Hawthrone Studies Behavioral Viewpoint

Employees are motivated by social needs and association with others Employees performance is more a result of peer pressure than managements incentives and rules Managers need to involve subordinates in coordinating their work to improve efficiency

Employees want to participate in decisions that affect them

Social Systems ApproachUnderstanding the behavior of groups & individuals. Features 1. Social System, a system of cultural relationship 2. Relationship exist between external and internal environment of the organisation. 3. Formal Organisation-Cultural relationships of social groups working within the organisation. 4. Co-operation necessary 5. Efforts directed -harmony between goals of organisation & goals of groups.

 Contributors Chester Barnard Uses Organisational decisions should not be based on desires of one group alone but should reflect the interests of all the parties. Limitations Broader than management & its practice Overlooks many management concepts , principles & techniques that are important to practicing managers

DECISION THEORY APPROACH Manager Decision maker OrganisationDecision making unit. Features Management is decision making. Members of Organisation -decision makers and problem solvers. Decision making -control point in management Increasing efficiency -the quality of decision MIS, process & techniques of decision making are the subject matter of study.

 Contributors Simon, Cyert, Forrester, etc. Uses Tools for making suitable decisions in organisations. Limitation 1. Does not take the total view of management 2. Decision making -one aspect of management

MATHEMATICAL APPROACHManagement-logical entity Actions-Mathematical symbols, Relationships and measurable data. Features 1.Problem Solving mechanism with the help of mathematical tools and techniques. 2.Problems Expressed in mathematical symbols. 3.Variables in management quantified. 4.Scope -Decision making, system analysis & some aspect of human behaviour. 5.Tools -Operations research ,simulation etc.

 Contributors Newman, Russell Ackoff, Charles Hitch, etc. Uses Provided Exactness in management discipline. Limitations 1. Not a separate school 2. Technique in decision making.

HUMAN BEHAVIOUR APPROACH Organisation as people a) Interpersonal Behaviour Approach -Individual Psychology b) Group Behaviour Approach -Organisation Behaviour Features 1. Draws heavily from psychology & sociology. 2. Understand human relations. 3. Emphasis on greater productivity through motivation & good human relations 4. Motivation, leadership, participative management & group dynamics are core of this approach.

Uses Demonstrates how management can be effective by applying knowledge of organisation behaviour. Contributors Maslow, Herzberg, Vroom, Mc Cleland, Argyris, Likert, Lewin, Mc Gregor, etc. Limitations Treating management as equivalent to human behaviour. Talks about organisation & organisation behaviour in vague terms.

SYSTEMS APPROACH
An enterprise Man-Made system Internal parts Achieve established goals External parts Achieve interplay with its environment Manager integrates his available facilities with goal achievement. Uses Quick Perception Better Planning Limitations Complicated Expensive

Contingency or Situational Approach In developing management concepts the environment within which the concepts are to be applied has to be considered. Internal environment - Structure, Processes, Technology. External Environment - Social, Economic, Political etc. Features 1. Appropriateness of a management technique depends on situation. 2. If -Then approach.