HISTORICAL BACKGROUND OF :

SUBMITTED BY:

NEERAJ MEHTA NEETU MEHRA

NEHA ARORA NEHA ASIJA

NEHA BHALLANEHA GUPTA

MANAGEMENT THEORIES

HISTORICAL

BACKGROUND

EARLY EXAMPLES

OF MANAGEM

ENT

ADAM SMITH

INDUSTRIAL

REVOLUTION

SCIENTIFIC

MANAGEME

NT

GENERAL ADMINISTRA

TIVE THEORIESTS

QUANTITATIVE

APPROACH

ORGANISATIONAL

BEHAVIOUR

EARLY ADVOCATES

HAWTHORNE

STUDIES

SYSTEMS APPROAC

H

CONTINGENCY

APPROACH

HISTORICAL

BACKGROUND PART I -THOUSAND YEARS AGO

• ORGANIZED ENDEAVORS HAVE EXISTED FOR THOUSAND OF YEARS• THE EGYPTIAN PYRAMIDS AND THE GREAT WALL OF CHINA

PART 2 - IN EARLY 1400s • VENETIANS DEVELOPED AN EARLY FORM OF BUSINESS ENTERPRISE .• FOR INSTANCE – AT THE ARSENAL OF VENICE, WARSHIPS WERE FLOATED ALONG THE CANAL .

PART 3 - PRE- TWENTIETH CENTURY EVENTS

•ADAM SMITH – PROPOSED DIVISION OF LABOUR . •INDUSTRIAL REVOLUTION - GUIDED THE REQUIREMENT OF MANAGERIAL•SKILLS.

SCIENTIFIC MANAGEMENT

FREDERICK W. TAYLOR

1)Develop a science for each element of an individual’s

work.2) Scientifically select and then

train ,teach and develop the worker.

3) Heartily cooperate with the workers

4) Divide work and responsibility

5) Management takes over all work for which it is better

fitted than workers.

SCIENTIFIC MANAGEMENT PRESENT ERAFORMER ERA CHALLENGES MODERN SOLUTIONS

WORKER INSUFFICIENCY

TAKE IT EASY

NO WORK STANDARDS

NO MATCHING ABILITY/APTITUDE

TIME-MOTION STUDY

DESIGN INCENTIVE SYSTEM

ANALYZE BASIC WORK TASK

HIRE BEST QUALIFIED WORKER

FAYOL’S PRINCIPLE

OF MANAGEME

NT

DIVISION OF WORK

AUTHORITY

DICIPLINE

UNITY OF

COMMAND

UNITY OF

DIRECTIONINDIVI

DUAL-GENER

AL INTER

ESTREMUNERAT

IONCENTRALIZAT

ION

SCALAR

CHAIN

ORDER

EQUITY

STABILITY

INITIATIVE

ESPRIT DE CORP

S

WEBER’S BUREAUCR

ACY

AUTHORITY

HIERARCHY

FORMAL SELECTION

CAREER ORIENTA

TION

IMPERSONALITY

POSITION

ORGANIZED-

CLEAR CHAIN

OF COMMA

NDS

MANAGERS NOT

OWNERS

UNIFORM

APPLICATIONS

SELECTION ON TECHNI

CAL QUALIFICATION

DIVISION OF

LABOUR

SIMPLE-ROUTINE-

WELL DEFINED

TASKS

FORMAL RULES AND REGULATIO

NSWRITTEN RULES-

STANDARD OP

PROCEDURES

QUANTITATIVE APPROACH TO MANAGEMENT (OPERATIONS RESEARCH / MANAGEMENT SCIENCE )

EVOLUTION – Quantitative approach developed out of mathematical and statistical solutions to military problems during world war II.

Techniques used to solve military problems were applied to business.

Robert McNamara and Charles “Tex” Thornton used statistical and quantitative models.

It involves in improvement in decision making.

APPLICATION OF THE QUANTITATIVE MODEL

STATISTICS

INFORMATION MODELSOPTIMIZATI

ON MODELSCOMPUTER SIMULATIO

NS

MANAGEMENT OF

ACTIVITIES

ORGANIZATIONAL BEHAVIOR The field of study concerned with the behavior of people at work is called as organizational behavior (OB).

Behavioral problems are more widespread and visible.

Easy to relate to real, day to day people problem than to more abstract of constructing quantitative models.

OUTCOME

¥ Human resource management ¥ Contemporary views on : a) Motivation b)leadership c) trust d) teamwork e) conflict management

• deplorable working conditions.

• idealistic workplace • smart investment.

Robert Owen Late

1700s

Early advocates of

OB

Mary Parker Follett

Early 1900s

• Organizations could be viewed from perspective of individual and group

behavior.•Proposed more people – oriented ideas than

scientific management followers.•Thought organizastions should be based on

group ethic.`

• Created field of industrial psychology –

Scientific study of people at work.

• Suggested using psychological tests for

employee selection, learning theory concepts

for employee training, and study of human

behaviour for employee motivation.

Hugo MunsterbergEarly 1900s

Chester Bernard 1930s

• Cooperation.•communicate and

simulate employees high levels of effort.• Organizations

were open systems.

THE HAWTHORNE STUDIES AIM – To examine the effect of various illuminations levels on worker

productivity.

METHOD – It encompass numerous experiments in the redesign of jobs and includes changes in --

a )workday b) workweek length c) introduction of rest periods d) individual versus group wage plans CONCLUSION -- Social norms or groups standards were the key

determinants of individual work behavior. Organization is more than a formal arrangement of functions but is also a social system.

USE OF THE BEHAVIORAL APPROACH IN ORGANIZATIONS – # designing motivating jobs # teamwork # open communication

The systems approach

Definition: System is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

Two types:•Closed•Open

Organisation as an open systeminputs•Raw materials•Human resources•Capital•Technology•information

Transformation process

•Employees work activities•Management activities•technology•Operation methods

Outputs

•Products and services•Financial results.•Information •Human resultsFEEDBACK

ENVIRONMENT

ENVIRONMENT

The systems approach and managers

•An organization is made up of “interdependent factor, including individuals, groups, attitudes, motives, formal structures, interactions, goals, status and authority.

•Managers coordinate the work activities of various parts of organization and ensure all parts are working together so that goals are achieved.

•It implies that decisions and action taken in one organizational area will affect others and vice versa.

•It recognizes that organisations are not self contained.

•They rely on their environments for essential inputs and as sources to absorb their outputs.

•Sometimes called situational approach.

•Organisations are different, face different situations(contingencies), and require different ways of managing.

•But surprisingly some management rules are universally applicable that would work in all situations.

The Contingency Approach

•Organization size:

As size increases, so do the problems of coordination.

•Routineness of task technology:

It requires organizational structures, leadership style and control systems that

differ from customized technology.

•Environmental uncertainty:

Environmental changes influence the management process, it being rapidly

changing and unpredictable.

•Individual differences:

Each one is different in terms of their desire for growth, autonomy, tolerance of

ambiguity and expectation and accordingly managers select motivation

techniques style and designs

Popular Contingency Variables

Current Trends and Issues

• Globalization

• Ethics

• Workforce diversity

• Entrepreneurship

• Managing in an E – Business World

• Knowledge Management and Learning Organizations

• Quality Management

Globalization

Working with people

from different Cultures

Coping with

Anticapitalist Backlash

Movement of jobs to

countries with Low –

cost Labor

Ethics

Step 1: What is the ethical dilemma?

Step 2: Who are the affected stakeholders?

Step 3: What personal, organizational, and external factors are important to my decision?

Step 4: What are possible alternatives?

Step 5: Make a decision and act on it.

Process of addressing ethical delimas

Workforce Diversity

Broad range of

view points

Problem solving

skills

Better

understanding of

diverse customer

base

A workforce that’s heterogeneous in terms of gender, race, ethnicity, age, and other characteristics that reflect differences

Enterpreunership

Pursuit of

opportunities

Innovation

Growth

It is the process of starting new businesses, generally in response to opportunities.

Managing in an E-Business World

E-Business The way the organization does work by using

electronic(Internet based)linkages with its key constituents to efficiently & effectively achieve the goals including the e-commerce.

Categories of e-business involvement

Category 1• E-Business Enhanced

Organization

Category 2• E-Business Enabled

Organization

Category 3• Total E-Business

Organization

KNOWLEDGE MANAGEMENT

Cultivating a learning culture where organizational members systematically gather knowledge & share it with others in the organization to achieve better performance.

Learning Organizations Organizations must be dynamic & learning i.e

continuously learn, adapt & change.

Create learning capabilities throughout the organization.

Manage the base of knowledge for good decision making.

Learning Organization v/s Traditional organization

Parameters Traditional Organization

Learning Organization

Attitude towards Change

No change if working

Changing is must

Attitude towards new ideas

Not Open Always open & accepting

Who’s responsible for innovation

R & D Everyone in Organization

Main Fear Making Mistakes Not learning, not adapting

Competitive Advantage

Product & Service Ability to learn, Knowledge & Expertise

Manager’s Job Control Others Enable others

Quality ManagementA philosophy of management driven by

continual improvement & responding to customer needs & expectations.

Committed to continuous improvement in work processes.

Departure from earlier management theories.

TQM started during 1980’s & 1990’s

Inspired by W.Edwards & Joseph M.Juranmin 1950’

Cont..Customer focused

Process focused

Accurate Measurements

Empowerment of employees

SummaryHistorical Background

Early management examplesAdam SmithIndustrial Revolution

Major Management TheoriesScientific management(Taylor’s principles,

Frank, use in today’s management)General Administrative theories (Fayol’s

principles, Max Weber)Quantitative approach(Robert

McNamera,Charles Thornton)

Cont…Organizational Behavior (Early Advocates,

Hawthorne studies)Systems ApproachContingency Approach

Current Trends & IssuesGlobalizationEthicsWorkforce DiversityEntrepreneurshipE-business Knowledge & learning OrganizationsQuality Management

QuestionsDiscuss the development of major management

theories.Write short notes on:-1. Globalization 2. Quality management A philosophy of management that is driven by

continual improvement and responding to customer needs and expectations is:

a) Contingency approachb) Quality managementc) System approachd) Scientific management

A theory of management that is focused on describing what managers do and what constitutes good management practice is the general administrative theory.

a) Correctb) Incorrect Quantitative techniques are used to improve:-a) Decision makingb) Leadership qualities Open systems are those which do not interact with the

environment.a) Correctb) Incorrect

Workforce diversity is heterogeneous in terms of gender, race, ethnicity, age, and other characteristics that reflect similarities.

a) Correctb) incorrect

THANK YOU