Theories of Management_POM

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Team PiratesPrashant Aghara

Shital Bhagiya

Anjali Machhoya

Hiteshree Patel

Kamal Vasoya

Team EXCELerateWhy We Chose It :• Professional• A play on

words,combining “Accelerate” and “Excel”

• Shows our “Full Speed Ahead” attitude

Effective and efficient

X-pecting excellence

Competitive

Enthusiastic

Leaders

Contents Behavioural School of Management

- Elton Mayo(Hawthorne Experiments)

Modern School of Management- Douglas McGregor

- Peter Drucker

- William Ouchi

Behavioral School of Management

The behavioral science approach developed as a natural evolution from the Hawthorne Experiments

The behavioral approach applies the knowledge of the behavioral sciences for managing people

Elton Mayo(1880-1949)

Hawthorne Experiments:“The Hawthorne Studies were conducted from

1927-1932 at the Western Electric Hawthorne Works in Chicago, where Harvard Business School Professor Elton Mayo examined productivity and work conditions.”

“Mayo wanted to find out what effect fatigue and monotony had on job productivity and how to control them through such variables as rest breaks, work hours, temperatures and humidity.”

Cont’ 1927-1932

Manipulated factors of production to measure effect on output:◦ Pay Incentives◦ Length of Work Day & Work Week◦ Use of Rest Periods◦ Company Sponsored Meals

Results:◦ Higher output and greater employee satisfaction

Conclusions: ◦ Positive effects even with negative influences – workers’

output will increase as a response to attention◦ Strong social bonds were created within the test group.

Workers are influenced by need for recognition, security and sense of belonging

Nuts and Bolts : Interviewing

◦ Provide insight to workers moral, their likes and dislikes and how they felt about their bosses

Role of Supervisor◦ Retained the responsibility of making sure that their

workers reached production levels, should lead their workers

Management◦ Need to gain active support and participation from

workers, while maintaining managerial control.◦ Be patient with workers, listen to them, and avoid creating

emotional upsets. Teamwork

◦ Cooperation, communication, sense of belonging

Modern School of Management

Douglas McGregor

(1906-1964)

• McGregor maintained that there are two fundamental approaches to managing people. Many managers tend towards theory x, and generally get poor results. Enlightened managers use theory y, which produces better performance and results, and allows people to grow and develop.

Theory-X The average person dislikes work and will avoid it he/she

can. Therefore most people must be forced with the threat of

punishment to work towards organizational objectives. The average person prefers to be directed; to avoid

responsibility; is relatively unambitious, and wants security above all else.

CooooooooL

Theory-Y Effort in work is as natural as work and play. People will apply self-control and self-direction in the

pursuit of organisational objectives, without external control or the threat of punishment.

Commitment to objectives is a function of rewards associated with their achievement.

People usually accept and often seek responsibility. The capacity to use a high degree of imagination,

ingenuity and creativity in solving organisational problems is widely, not narrowly, distributed in the population.

In industry the intellectual potential of the average person is only partly utilised.

“ No business in the world has ever made

more money with “Poorer”

management”

System Approach : It is a collection on interrelated parts acting together to

achieve some goal with exists in the environment. Also system is defined as a set of objects working together with relationships between their objects and attributes related to each other and to the environment.

Therefore, system in 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

Contingency(Situational) Approach

The contingency approach to management emerged from the real life experience of managers who found that no single approach worked consistently in every situation.

The basic idea of this approach is that no management technique or theory is appropriate in all situations.

The main determinants of a contingency are related to the external and internal environment of an organisation.

contingency variables:

size of firmenvironmentresourcestechnologygroup dynamicsindividual differences

Managers must identify these variables and understand how it’s best to manage the organization.

Peter Drucker(1909-2005)

Three Roles of Management Managing a BusinessManaging ManagersManaging Workers and Work

Managing a Business

Purpose of Business◦To Create Customers

Functions of Business◦Marketing◦Innovation

Profit is result, not a cause, of business activity

Managing Workers and Work

Personnel Management

Organizing for Peak PerformanceEngineering the Job

Motivating for Peak PerformanceCommunication; Vision

Supervisor / ForemanProfessional Employee

William G. Ouchi (Born 1943)In 1981, William Ouchi came up with a method that would combine American and Japanese managing practice together to form Theory Z. In order for him to accomplish this, he had to learn about the Japanese culture. He had to find out why the Japanese quality and productivity were much higher than the American

The Japanese Management Approach, Called TYPE J

The American Management Approach,Called TYPE A

Ouchi’s Recommended A Hybrid Of Two Approaches ,THEORY Z 

Theory-ZLong-term employmentCollective decision makingIndividual responsibilitySlow evaluation & promotion Implicit, informal control with explicit,

formalized measuresModerately specialized career pathsHolistic concern, including family