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    EVOLUTION OF MANAGEMENTTHOUGHT

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    MODERN MANAGEMENT

    THEORY

    a. Quantitative Approach

    b. Systems Approach

    c. Contingency Approach

    BEHAVIORAL APPROACH

    a. Hawthorne Experiments &Human Relation Approach

    b. Behavioral ScienceApproach

    Elton Mayo

    Douglas McGregor,Maslow, Lewin,

    Operation research specialists of USA,UK

    Organizational system theories,codering,Kenneth etc.

    Tom Burns, Stalker, Woodward,

    Paul Lawrence

    CLASSICAL APPROACHa. Scientific Management

    b. Administrative Theory ofManagement

    c. Bureaucratic Organization

    F.W.Taylor, Grantt, Gilberth Emerson

    Henri Fayol, Sheldon Mooney, ParkerFoolet

    Max Weber

    , ,

    DEVELOPMENT OF MANAGEMENT

    THOUGHTS

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    BEHAVIORAL APPROACH

    HUMAN RELATION MOVEMENT

    BEHAVIORAL SCIENCE APPROACH

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    Hawthorne Studies A SERIES OF STUDIES DONE DURING THE 1920S AND

    1930S THAT PROVIDED NEW INSIGHTS INTO GROUP

    NORMS AND BEHAVIORS

    HAWTHORNE EFFECT

    SOCIAL NORMS OR STANDARDS OF THE GROUP

    WORK BEHAVIOR.

    CHANGED THE PREVALENT VIEW OF THE TIMETHAT PEOPLE WERE NO DIFFERENT THAN

    MACHINES.

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    HAWTHORNE STUDIES

    ILLUMINATION EXPERIMENT

    RELAY ASSEMBLY TEST ROOM EXPERIMENT

    MASS INTERVIEW PROGRAMME

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    ILLUMINATION EXPERIMENT

    EXPERIMENT TO FIND OPTIMAL LEVEL OF

    LIGHTINGWORK GROUPS OF 6, IN SEPARATE ROOMS

    EXPERIMENTAL GROUP & CONTROL GROUP

    FINDINGS: INCREASING BRIGHTNESS RAISES

    PRODUCTIVITY

    REDUCING BRIGHTNESS RAISES PRODUCTIVITY MEMBERS OF THE CONTROL GROUP ALSO

    INCREASED PRODUCTIVITY

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    RELAY ASSEMBLY TEST ROOM

    EXPERIMENT

    DESIGNED TO DETERMINETHE EFFECT OF CHANGESIN VARIOUS JOBCONDITIONS ON GROUP

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    BANK WIRING OBSERVATION

    ROOM STUDY

    FEAR OF UNEMPLOYMENT

    FEAR OF RAISING STANDARDS

    PROTECTION OF SLOWER WORKERS

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    FINDINGS OF HAWTHORNE

    EXPERIMENTS

    SOCIAL FACTORS IN OUTPUT

    INFORMAL GROUP

    COMMUNICATION & CONSULTATION

    EMPLOYEE BEHAVIOR AND CONFLICT

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    HAWTHORNE EXPERIMENTS

    LESSONS

    For managers, the importance of Teams, not just individuals

    Workers arent machines, they make choices, and theirchoices are affected b how others treat them

    These findings contributed to the development of thehuman relationsapproach to management

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    CONCLUSIONS OF HAWTHORNE STUDIESCONCLUSIONS OF HAWTHORNE STUDIES

    ENVIRONMENTAL FACTORS NOT THE SOLE FACTORSENVIRONMENTAL FACTORS NOT THE SOLE FACTORSAFFECTING PRODUCTIVITYAFFECTING PRODUCTIVITY

    WORKER IS NOT AN ECONOMIC MAN (NOT PURELYWORKER IS NOT AN ECONOMIC MAN (NOT PURELYMOTIVATED BY MONEY ALONE)MOTIVATED BY MONEY ALONE)IMPORTANCE OF RECOGNITION, SECURITY AND MORALEIMPORTANCE OF RECOGNITION, SECURITY AND MORALEIMPORTANCE OF INFORMAL GROUPIMPORTANCE OF INFORMAL GROUP

    COMPLAINTS AS SYMPTOMSCOMPLAINTS AS SYMPTOMS

    Mayo with his studies made a great impact on theMayo with his studies made a great impact on thedevelopment of management thoughtdevelopment of management thought

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    Human Resources Approach

    MARY PARKER FOLLETT BELIEVED THAT ORGANISATIONS SHOULD BE BASED

    ON GROUP RATHER THAN INDIVIDUALISM

    MANAGERS JOB TO HARMONISE AND COORDINATEGROUP EFFORTS

    NOTION OF POWER WITH RATHER THAN POWER

    COMBINING DIVERSE TALENT INTO SOMETHINGBIGGER

    MANAGERS AND WORKERS SHOULD VIEWTHEMSELVES AS PARTNERS- AS A PART OF COMMONGROUP.

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    Human Resources Approach

    CHESTER BARNARD SAW ORGANIZATIONS AS SOCIAL SYSTEMS THAT

    REQUIRE HUMAN COOPERATION

    BELIEVED THAT ORGANISATIONS ARE MADE UP OFPEOPLE WITH INTERACTING SOCIAL RELATIONSHIPS

    EXPRESSED HIS VIEWS IN HIS BOOK THEFUNCTIONS OF THE EXECUTIVE(1938)

    MANAGERS MAJOR FUNCTION IS TO COMMUNICATEAND STIMULATE SUBORDINATES TO HIGHER LEVELSOF EFFORTS

    ORGANISATIONS SUCCESS DEPENDED ON PEOPLEAND INSTITUTIONS WITH WHOM ORGANISATION

    INTERACTS REGULARLY. INTRODUCED THE IDEA TO EXAMINE THE EXTERNAL

    ENVIRONMENTAND ADJUST THE ORGANISATION TOMAINTAIN A STATE OF EQUILIBRIUM.

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    The Human Relations Movement

    Pyramid

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    CRITICAL EVALUATION OF HUMAN

    RELATION MOVEMENT

    UNSCIENTIFIC

    DOUBTFUL VALIDITY

    OVERCONCERN WITH HAPPINESS

    ANTI INDIVIDUALISTIC

    NEGATIVE VIEW OF CONFLICT

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    BEHAVIOURAL APPRAOCH

    SYSTEMATIC AND SCIENTIFIC ANALYSIS OF

    HUMAN BEHAVIOUR WITH A VIEW TO DETERMINE CAUSES OF WORKING

    BEHAVIOUR OF INDIVIDUALS

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    PSYCHOLOGY (INDIVIDUAL HUMAN BEHAVIOUR)

    SOCIOLOGY (HUMAN BEHAVIOUR IN GROUPS)

    ANTHROPOLOGY (PHYSICAL,CULTURAL.

    BEHAVIOURAL SCIENCE

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    BEHAVIOURAL APPRAOCH

    ORGANISATION A SOCIAL-TECHNICAL SYSTEM

    INDIVIDUAL DIFFERENCES IN TERMS OF PERSONALITY ,ATTITUDE, BELIEFS, VALUES AND PERCEPTIONS

    INTEGRATION OF INDIVIDUAL GOALS WITH

    ORGANISATION GOALS

    CONFLICT AND COOPERATION CO-EXIST

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    HUMAN RELATION

    APPROACH1. Confined to humanisation andsocialisation of organisation byrecognizing human side

    2. Believes that organisation is a social psychological system

    3. Mainly concerned with human aspectand considers all individuals ashuman beings

    BEHAVIOURALAPPROACH

    1.1. AimsAims atat studyingstudying andand analysinganalysing humanhuman

    behaiourbehaiour systematicallysystematically

    2.2. AssumesAssumes thatthat organisationorganisation isis aa socialsocial

    technicaltechnical systemsystem

    3.3. RecognisesRecognises individualindividual differencesdifferences inintermsterms ofof background,background, personality,personality, valuesvalues

    goalsgoals ,, aspirationsaspirations pavingpaving wayway forfor

    devisingdevising differentdifferent motivationalmotivational processprocess

    forfor themthem4. us ra es a sa s ac on

    provided to employees by givingeconomic incentives and improvingthe working conditions will lead tohigher productivity

    5. Based on the assumption that conflictsshould be totally removed as they

    appear6. Limited in scope,deals only with a set

    of economic, social and psychologicalneeds and physical workingconditions which contribute to higherefficiency

    4.4. BelievesBelieves thatthat widewide rangerange ofof variablesvariablesthatthat affectaffect workingworking behaviourbehaviour ofof

    employeesemployees

    5.5. RealisesRealises thatthat conflictsconflicts areare boundbound toto cropcrop

    andand toto somesome extendextend produceproduce constructiveconstructive

    effecteffect

    6.6. broadbroad inin scope,concernedscope,concerned withwith technicaltechnicalaspectaspect ofof jobjob designdesign ,, groupgroup dynamicsdynamics ,,leadership,leadership, communication,communication, motivationmotivation

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    THE QUANTITATIVE

    APPROACH

    OPERATIONS RESEARCH (MANAGEMENT

    SCIENCE) EVOLVED OUT OF THE DEVELOPMENT OF

    MATHEMATICAL AND STATISTICAL SOLUTIONS TO

    MILITARY PROBLEMS DURING WORLD WAR II.

    INVOLVES THE USE OF STATISTICS, OPTIMIZATIONMODELS, INFORMATION MODELS, AND COMPUTER

    SIMULATIONS TO IMPROVE MANAGEMENT DECISION

    MAKING FOR PLANNING AND CONTROL.

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    PLANS

    Objectives

    Policies

    INPUTS

    Information

    Energy

    PROCESS

    Conversionof inputs intooutputs

    OUTPUTS

    Goods

    and

    Programmes

    Schedules

    Methods

    machinesystems

    Goals & Plans Resource Production Saleable

    Products

    SYSTEMS MANAGEMENT

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    THE SYSTEMS APPROACH

    ORGANISATION AS A UNIFIED AND PURPOSEFULSYSTEM

    PARTS AND COMPONENTS ARE CALLEDSUBSYSTEMS

    SYNERGY

    EACH SYSTEM HAD A BOUNDARY OPEN AND CLOSED SYSTEMS

    BUSINESS ENTERPRISE AS OPEN AND DYNAMICSYSTEM

    ORGANISATIONAL SURVIVAL DEPENDS ONSUCCESSFUL INTERACTIONS WITH EXTERNALENVIRONMENT

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    THE SYSTEMS APPROACH

    CLOSED SYSTEM : A SYSTEM THAT ISNOT INFLUENCED BY AND DOES NOT

    INTERACT WITH ITS ENVIRONMENT

    OPEN SYSTEM: A SYSTEM THAT

    DYNAMICALLY INTERACTS WITH

    ITS ENVIRONMENT

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    CONTINGENCY APPROACH

    MANAGEMENT ACTIONS ARE CONTINGENT ON

    CERTAIN ACTIONS OUTSIDE THE SYSTEM OR

    SUBSYSTEM

    BECAUSE OF THE SPECIFIC ORGANISATION-

    ENVIRONMENT RELATIONSHIP,NO ACTION CAN BE

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    MODERN MANAGEMENT

    THOUGHT

    THE SYSTEMS APPROACH

    DYNAMIC

    MULTI-DIMENSIONAL

    MULTI-MOTIVATED

    MULTI-DISCIPLINARY

    MULTI-VARIABLE

    ADAPTIVE

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    MENTVARIABLES

    CONTINGENCY APPROACH

    ENVIRONMENTAL VARIABLES

    MANAG

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    CONTINGENCY VARIABLES

    ORGANISATIONAL SIZE

    TASK TECHNOLOGY

    ENVIRONMENTAL UNCERTAINTY

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    SYSTEMS APPROACH

    1. Treats all organization alikeirrespective of their size,cultural setting and analysisof organizations dynamics

    2. An organisation is a goaloriented system consisting of

    interdependent & interactingsubsystems

    3. Appears to be neutral and

    CONTINGENCY APPROACH

    1. Treats each organization asunique entity.

    2. Oranisations & environmentare complex.Applicability &

    effectiveness of anytechnique depends on thenature and behaviour ofspecific situation

    3. It rejects blind application of

    universality of classicalprinciples of management

    4. Stresses upon the synergeticeffect of organization andthe external inputs

    5. Vague and complex

    principles without regards to

    situational realities

    4. Relates organizationstructure and design to theenvironment

    5. Pragmatic and actionoriented