EVOLUTION OF MANAGEMENT THOUGHTS

MANAGEMENT THOUGHT PERIOD

Early contributions Scientific management Administrative management Human relation approach Social system approach Decision theory approach Mgmt science approach Human Behavior approach System approach Contingency approach

Upto 19th century 1900-1930 1916-1940

1930-1950 1940-1950 1945-1965 1950-1960 1950-1970 1960s onwards 1970s onwards

CLASSIFICATION OF MGMT THOUGHTS

MGMT THOUGHTS

CLASSICAL APPROACH

NEOCLASSICAL APPROACH
Human relation approach Social system approach Decision theory approach Mgmt science approach Human Behavior approach

MODERN APPROACH
System approach Contingency approach

Scientific management Admn/Operational management Bureaucracy

Early Contributions
Concept

of org&admn exsisted in egypt in Egypt in 1300 B.C. Kautilya has offered principles of state admn in 320B.C. Roman Catholic church introduced the concept of staff personnel. Early contributors in the field of Business orgn are:Robert Owen,Charles Babbage,Henry Varnun Poor,Henry Robinson Towne,James Watt and Mathew Robinson Boulton,Cpt Henry Metcalfe.

Pre Scientific Management Era

Refers

to the period immediately preceding the Scientific management Movement. Contributions of the pioneers are given below:-

Robert Owen(1771-1858)

Managed a group of textile mills in Scotland during 18001828. He believed that workers should work because they want to work and not because they have to work. Emphasised on building up of a spirit of cooperation between workers and the management. Introduced new ideas of human relatioons,rest pauses,training of workers,housing facilities,education of children,canteen provision etc. He is known as the father of Personnel Management. His ides are prelude to the development of the behavioural approach to the management.

Charles babbage(1792-1871)

Babbage was a professor of mathematics at Cambridge Univ fro 1828 to 1839. His best book known is On the Economy of Machinery and manufacturers published in 1832. He perceived that the methods of science and mathematics could be applied to the operations of the factories in manufacturing operations. Division of the work on the basis of their skills. Applying the mechanism of time and motion study. Emphasis on cost reduction through the discovery of improved methods. The interest of mgmt and workers be closely linked through profit sharing and participative decision making.

Henry Varnum Poor

Editor

of the American Railroad Journalfrom 1849-1862.He closely watched the rail road managers and said that managers should be guided by 3 principles-organization,communication and information. Emphasised on the need of the efficient leadership at the top level to develop feeling of unity and to overcome the rigidities of the formal organization.

Henry Robinson Towne(1844-1924)

President

of the famousYale and Towne),a lock manufacturing company.He took particular interest in better business management. He urged the combination of engineers and economist as industrial managers. He suggested organized exchange of experiences among managers and an organized effort to pool the accumulated knowledge.

James watt and Mathew Robinson

Both

applies several management techniques in the Engineering factory at Soho(uK).These techniques were: Market Research and forecasting, product plg,elaborate statistical records,maintenance of advance control reports,planned machine for better work flow.

Captain Henry Metcalfe(1847-1917)

Metcalfe

was the manager of an army arsenal.He wrote book,The cost of Manufacturers and administration of work shop:Public and Private. Suggested that science of administration is based on principles that are evolved by recording observation and experiences). Metcalfe suggested a system of cards 1)time cards 2)material cards.This system assures that better work done by them would be known to the management.

CLASSICAL APPROACH
It

is also called as traditional,empirical,mgmt process approach.Its main features are: Mgmt is viewed as a systematic network of interrelated functions. Principles are developed on the basis of experiences of practising mgrs. Formal trg and education is emphasised for developing managerial skills. Emphasis is placed on economic efficiency and the formal organization structure. People are motivated by economic gains.

CLASSICAL APPROACH INCLUDES 3 MAIN STREAMS

Scientific

management-main contributors are:F.W Taylor,Harrington emerson,Henry gantt,Frank and Lillian Gilbreth. Administrative theory or functional approach was developed by mgmt practitioners and thinkers like,Henry Fayol,LyndallF.Urwick,James .Mooney,Allan C.Reiley and others. Bureaucracy was evolved by a german sociologist,Max weber.He visualises a machine model of organization characterised by a hierarchy of authority,a web of rules and regulations and impersonal control over human beings.

USES AND LIMITATIONS

It focuses Highlights

on what mgrs actually do. the universal nature of the management. Provides scientific basis for management practice. Limitations are: It offers a mechanistic framework that undermines the role of human factor. There is a danger on relying too much on past experience. The totality of the real situation can seldom be incorporated in a case study.

Contributions of Frederick Winslow Taylor(1856-1915)

Father

of Scientific management.His ideas about management grew in 3 companies:Midvale steel works,Simond Rolling mills and Bethlehem Steel co. He found that main cause of inefficiency and wastage in the factory was ignorance on the part of both workers and management. Taylors contribution can be defined in two parts: 1.Elements and Tools of Scientific management. 2.Principles of scientific management.

ELEMENTS AND TOOLS OF SCIENTIFIC MANAGEMENT

Separation

of Plg and Doing. Functional Foremanship Job Analysis Standardisation. Scientific Selection and Training of Workers. Financial Incentives Economy Mental Revolution

Principles of Scientific management

Replacing

Rule of thumb with science:Science determines precision and rule of thumb emphasises estimation. Harmony in Group Actions Cooperation Maximum Output Development of workers.

Other contributors of Scientific Management

Henry

Gantt-Developed method of depicting plans and making possible better management control. he emphasized importance of time as well as cost in planning and controlling work. Contributed in development of Gantt Chart. Frank and Lillian Gilberth tried to look problems of workers from social and psychological point of view.

Limitations of Scientific mgmt

Scientific

grounds: Exploitative device Depersonalized work Unpsychological Undemocratic Antisocial Unoriginal Unrealistic

management was criticised on several

Henry Fayol (Administartive management)

French Industralist and his contributions are called as operational or adminisatrative management. Fayols contributions are published in his bookAdministration Industrielle at Generale He viewed the problem of managing organization from top management point of view. He has used the word Administration instead of management.He emphasised that principles of management are flexible and not absolute and are usable regardless of changing and special conditions. Fayol found that activities of an industrial org can be divided into 6 groups: 1.Technical 2.Commercial. 3.Financial 4.Security 5.Accounting 6.Managerial Fayol has divided his approach of studying mgmt into threeparts:

Cont
A)Managerial qualitiesand training-Physical,Mental,Moral,Educational,Technical,Experience. B)General principles of management1.Division of work 2.Authority and Responsibility 3.Discipline. 4.Unity of command 5.Unity of Direction. 6.Subordination of Individual to General interest. 7.Remuneration of Personnel. 8.Centralisation 9.Scalar chain 1o.Order 11.Equity 12.Stability of Tenure 13.Initiative 14.Esprit de Corps. C)Elements of m,anagement. a)The elements are the functions of management-plg,org,commanding,coordination and contrlling.

BUREAUCRACY (Max Weber)

Features of bureaucratic structure are: Hierarchy Division of work Rules, regulations and procedures Official Records Impersonal relationships Administrative class

Problems in Bureaucracy
Goal

Displacement. Unintended Consequences Inhuman Organization Closed System Perspective

Limitations of the Classical Theory

Static view of organizations Closed system view Dehumanization of organization Anti-democratic bias Classical assumptions and values Classical principles

Division of labor Departmentation The scalar principle The line and staff principle The span of control principle

NEO CLASSICAL THEORY

HAWTHORNE EXPERIMENTS AND HUMAN RELATIONS Discovered that real cause of Human Behavior was something more than mere physiological behaviour.This new approach has been called' Human relations approach of management. The essence of Human relation can be understood in two points: I) organizational situation should be viewed in social terms as well as in economic and technical terms. iii)the social process of group behaviour can be understood in terms of clinical method analogus to the doctors diagnosis of the human organism.

Investigated by-Elton Mayo, whitehead & Roethilisberger & company representative William Dickson. The experiment was conducted at the Hawthorne plant of the General Electric company,Chicago was manufacturing telephone system bell which employed 30,000 employee.

. ILLUMINATION EXPERIMENTS
This

experiment to find out how varying levels of illumination (amount of light at work place ,a physical factor) affected the productivity. Group of worker chosen placed in two groups 1.Experimental or test group. 2.Control group.

Experiment has four phases

Experiment to determine the effects of changes in illumination on productivity, illumination experiments, 1924-27. 2. Experiments to determine to determine the effects of changes in hours and other working conditions on productivity, relay assembly test room experiments, 19271928 3. Conducting plant-wide interviews to determine worker attitudes & sentiments,mass interviewing programme, 1928-30 4. Determination and analysis of social organization at work, bank wiring observation room experiments. 1931-32
1.

Experimental /Test Group

Varying

intensity of illumination. Increase of illumination in the experimental group can the increase the production. Decrease in the illumination still lead to the increase in production. Production can decrease only when the illumination touch the level of moon light/below the normal level.

Control Group
This

group work under constant intensities of illumination. Production equal to experiment group.
Conclusion

Illumination did not have any effect on productivity but some thing else Interfering with the productivity. 2. Human factor was determing productivity but which aspect was affecting it was not sure.
1.

2.Relay assembly Test Room Exp

This

exp. to determine the effect of change in various jobs conditions on group

productivity.
Change

associated with 4 to 12 weeks. Two girls chosen these associated 4 more girls as coworker in assembly of telephone relay.

Changes and out come

The incentive system was changed so that each girls extra pay was based on the other five reather than the output of the larger group,like 200 or more.The productivity increased as compared to before. Two 5minute rest one in morning other evening session. Which were increased to ten minutes,-----productivity increased.

Rest time was reduced to five minutes but frequency was increased,the productivity decreased slightly and the girls complained that frequent rest intervals affected the rhythm of the work.
Rest was reduced to two of ten minutes each, but coffee ,tea ,soup& snacks provided in the morning &evening- productivity increased Changes in working hours& working day, productivity increase.

Mass Interviewing Programme

20,000 experiments were conducted between 1928 to 1930 to determine employees attitudes towards company, supervision,insurance plans, promotion and wages. Major findings: 1.Complaints is not necessarily an objective recital of facts,it is a symptom of personal disturbance the cause of which is deep seated. Personal situation of the worker is a configuration ,composed of a personal preference involving sentiments, desires and interest ,the persons social past and his present interpersonal relations. The social demands of the workers are influenced by social experience in groups both outside and inside the work plant. The workers behavior was influenced by group behaviour.

Bank Wiring Observation room experiments

Experiments were carried on between 1931 -1932 with a view to analyse the functioning of small group and its impact on individual behaviour. A group of 14 male workers were employed in the bank wiring room:9 wiremen,3 soldermen, and 2 inspectors. Hourly wage rate for the personnel was based on average output of each worker while bonus was to be determined on the basis of average group output,with the objective of producing more and to take the advantage of group bonus. Workers decided the target to connect 6600 terminals against 7300 terminals as set up by the company

 The

workers gave following reasons for the restricted output: 1.Fear of unemployment 2.Fear of Raising standards 3.Protection of Slower workers 4.Satisfaction on the part of management Findings: Informal relationships are important factor in determining the human behaviour Conformity with both output norm and social norm were preferred.

Conclusion
Productivity

increased not because of positive change in physical factors but because of a change in the girls attitude toward work & work group.

 Social

factor in output Group Influence Conflicts Leadership Supervision Communication

IMPLICATIONS OF HAWTHORNE EXPERIMENTS HAWTHORNE EXPERIMENT

CRITICISM OF HAWTHORNE EXPERIMENTS

The

Hawthorne researchers did not give sufficient attention to the attitudes that people bring with them to the workplacesclass consciousness, the role of unions etc. It was not a typical plant but a pleasant place to work The Hawthorne studies look upon the workers a means to an end himself.

SOCIAL SYSTEM APPROACH

This approach was introduced by Vilfredo Pareto a sociologist. His ideas were later developed by Chester Barnard who synthesized the concept of social systems approach .The major features of this approach are as follows: 1.Organization is a social system, a system of cultural relationship. Relationship exsist among the external as well as internal enviornment of the organization. Cooperation among group members is necessary for the achievement of organizational objective. For effective mgmt there should be harmony between the goals of the organization and various groups.

CONTRIBUTIONS OF CHESTER BARNARD

Concept

of organization Formal and informal organization Elements of organization Authority Functions of the Executive Motivation Execuitive Effectiveness Organizational Equillibrium

DECISION THEORY APPROACH

Main

contributors are Herbert Simon,march,Cyret and Forrestor etc. Mgmt is essentially decision making Members of the organizatio are decision makers and problem solver Organizations can be treated as a combination of various decision centres. Quality of decision affects the orgnizational effectiveness.

CONTRIBUTIONS OF HERBERT SIMON

Concept

of Organization Decision making Bounded rationality Administrative Man Organizational Communication

MANAGEMENT SCIENCE APPROACH

Also known as mathematical or quantitative management approach,visualises management as a ogical entity. The major features of this approach are as follows: 1.managemnt is regardedas the problem solving mechanism. Management problems can be described in terms of mathematical symbols and data. This approach covers decision making, systemanalysis and some aspects of human behaviour. Operation research,mathematical tools,simulation models etc are the basic methodologies to solve managerial problems.

HUMAN BEHAVIOUR APPROACH

It

is outcome of the thoughts developed by Behavioural Scientists who focussed that study of management should revolve around human behaviour. Major contributors are Maslow,(need hierarchy theory),Herzberg(MotivationHygeine theory,Argyris,Blake and Mouton etc.

SYSTEMS AND CONTINGENCY APPROACH

A

system is a complex whole composed of parts and subparts in orderly arrangement according to some scheme or plan. approach may be treated as an extension of system approach which focus on the basic idea that there cannot be a particular action of managing human behaviour which is desiggned on the basis of internal states and enviorbnmental condiitions.

Contingency