management in an origanizatiion

1. CHAPTER-2
History and Evolution Of
Management Thought

2. Objectives of The Chapter
To Understand
 Early Approaches to management
 Classical Approach
 Behavioral Approach
 Quantitative Approach
 Modern Approaches to management
 Emerging approaches in management thought.

3. Introduction
Both theory and history are indispensable
tools for managing contemporary
organizations.
A theory is a conceptual framework for
organizing knowledge that provides a
blueprint for various courses of action.

4. MAJOR CLASSIFICATION OF
MANAGEMENT APPROACHES
CLASSICAL
APPROACH
SCIENTIFIC
MANAGEMENT
BUREAUCRATIC
MANAGEMENT
ADMINISTRATI
VE
MANAGEMENT
BEHAVIORAL
APPROACH
HAWTHORNE
STUDIES
MASLOW’S
NEED
HIERARCHY
THEORY X AND
THEORY Y
QUANTITATIVE
APPROACH
MANAGEMENT
SCIENCE
OPERATIONS
MANAGEMENT
MANAGEMENT
INFORMATION
SYSTEM
MODERN
APPROACH
THE SYSTEMS
THEORY
CONTINGENCY
THEORY
EMERGING
APPROACHES

5. Classical Approach
 Forms the foundation for the field of
management
 The schools for management
thoughts are:
 Scientific Management
 Administrative Theory
 Bureaucratic Management

6. CLASSICAL APPROACH
1. SCIENTIFIC MANAGEMENT-F.W. TAYLOR
• Piece rate incentive system
• Time and motion study
• Gantt scheduling chart-Henry Laurence Gantt
2. ADMINISTRATIVE THEORY- HENRY FAYOL
• Technical
• Commercial
• Financial
• Security
• Accounting
• managerial

7. CLASSICAL APPROACH
3. BUREAUCRATIC MANAGEMENT- MAX
WEBER
• Work specialization and division of labor
• Abstract rules and regulations
• Impersonality of managers
• Hierarchy of organization structure

8. Frederick Winslow Taylor
 “Father of scientific
management”(1878)
 Two major managerial practices:
 Piece-rate incentive system
 Time-and-motion study

9. Frank and Lillian Gillbreth
 1868-1924
 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.

10. HENRY L.GANTT(1861-1919)
 Well known for Task – and - bonus
system -The Gantt chart
 If the worker completed the work
fast, i.e., in less than the standard
time, he received a bonus.
 It is a Simple chart that compares
actual and planned performances.

11. Administrative Theory:
 It focused on principles that could be
used by managers to coordinate the
internal activities of organizations.
 Henri Fayol (1841-1925)

12. Henri Fayol (1841-1925)
Fourteen principles:
 Division of work
 Authority and responsibility
 Discipline
 Unity of command
 Unity of direction
 Subordination of the
individual interest to the
general interest
 Remuneration
 Centralization:
 Scalar chain
 Order
 Equity
 Stability
 Initiative
 Espirit de corps
(team spirit)

13. Bureaucratic Management
Weber (1864-1920)
Characteristics of Weber’s ideal
Bureaucracy:
 Work specification and division of
labor
 Abstract rules and regulations:
 Impersonality of managers:
 Hierarchy of organization structure:

14. Behavioral Approach
 The behavioral approach to
management emphasized individual
attitudes and behaviors and group
processes, and recognized the
significance of behavioral process in
the workplace.

15. HAWTHORNE STUDIES
• Illumination studies
• Relay assembly room study
• Bank wiring room study

16. Illumination Studies
• Illumination studies constituted the first set
of experiments and took place between
1924 and 1927
• Experiment -Lighting was decreased
• Result-The researches concluded that
factors other than lighting were at work

17. Experiment
• The first study was conducted by a group
of engineers seeking to determine the
relationship of lighting levels to worker
productivity. Surprisingly enough, they
discovered that worker productivity
increased as the lighting levels decreased

18. The Relay Assembly Room
study
• A few years later, a second group of
experiments began. Harvard researchers
Mayo and F. J. Roethlisberger supervised a
group of five women in a bank wiring room.
They gave the women special privileges,
such as the right to leave their workstations
without permission, take rest periods, enjoy
free lunches, and have variations in pay
levels and workdays. This experiment also
resulted in significantly increased rates of
productivity.

19. The Bank Wiring Room Study
• For this study a group of 14men who wired
telephone banks was observed in a
standard shop condition
• An observer was stationed in the room
with instructions to take continuous note’s
on the workers actions .
• The observer were not allowed to give
orders or to get involved in conversations
with the workers .

20. Abraham Maslow
His theory rested on these assumptions.
 Physiological needs;
 Safety or security needs
 Belongingness or social needs;
 Esteem or status needs
 Self actualization or self-fulfillment needs.

21. Maslow’s Need Hierarchy
Self actualization needs
Esteem needs
Social needs
Safety needs
Physiological needs

22. Douglas Mcgregor
Theory X Theory Y
Most People dislike
work
Work is a natural activity
like play.
Most People must be
coerced and threatened
before they work.
People are capable of self
direction and self control
Most people prefer to
be directed. They avoid
responsibility and have
little ambition.
People become committed
to organizational
objectives if they are
rewarded in doing so.

23. Quantitative Approach
 It includes the application of statistics,
optimization models, information
models and computer simulations.
More specifically, this approach
focuses on achieving organizational
effectiveness.
 Three main branches:
 Management Science
 Operations Management and
 Management Information Systems.

24. Management Science
 It stresses the use of mathematical
models and statistical methods for
decision-making.
 Another name is the Operations
Research.

25. Operations Management
 It deals with the effective
management of the production
process and the timely delivery of an
organization’s products and
services.

26. Management
Information Systems
 Management information systems
focuses on designing and
implementing computer-based
information systems for business
organizations.

27. Modern Approaches
to Management
 Systems Theory
 Contingency
Theory

28. 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

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

30. Emerging Approaches In
Management Thought
 William Ouchi, outlined new theory called
Theory Z.
 It is the blend of positive aspects of both
American and Japanese management
styles.
 Quality Management is a management
approach that directs the efforts of
management towards bringing about
continuous improvement in product and
service quality to achieve higher levels of
customer satisfaction and build customer
loyalty.

31. Now you are familiar with
• Different classification of management
approaches
• A few theorists and theories
• Early Approaches to Management
• Classical Approach
• Behavioral Approach
• Quantitative Approach
• Modern Approaches to management
• Emerging approaches in management
thought.

32. Thank you!!!