EVOLUTION OF MANAGEMENT APPROACHES TO MANAGEMENT

PRESENTED BY:

•RADHIKA GANDOTRA 45-MBA-2016•VIDHU ARORA 68-MBA-2016•SAHIL SHARMA 49-MBA-2016•NEHA SHARMA 37-MBA-2016

CONTENTS•INTRODUCTION!•BASIC SCHEME OF PRODUCTION AND DELIVERY PROCESS•EVOLUTION?•THE CLASSICAL SCHOOL OF MANAGEMENT•CLASSICAL APPROACH•SCIENTIFIC PRINCIPLES OF MANAGEMENT•CONTRIBUTION’s FROM VARIOUS SCIENTIST’s

Radhika Gandotra 3

INTRODUCTION

A management system is the framework of processes and procedures used to ensure that an organization can fulfill all tasks required to achieve its objectives.

It is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish their selected tasks.

Management is all about ‘getting things done’

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Basic scheme of production and service delivery process”

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1900 - 1930Classical ManagementSchoolScientific Administrative Bureaucratic

1920-1950Neo-Classical Management SchoolHuman Relations Behavioral

Modern Management SchoolQuantitative

Systems ContingencyOperational

Evolution of Management Theory

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1900 - 1930

THE CLASSICAL SCHOOL OF

MANAGEMENT

DEFINITION OF CLASSICAL APPROACH

Classical Approach is the oldest formal school of thought which began around 1900 and continued into the 1920s.

It is the theory of management that focuses on the productivity, output and efficiency of workers.

It seeks to maximize the benefits of consumers and investors at consistent and fair levels.

Classical Approach includes SCIENTIFIC MANAGEMENT, ADMINISTRATIVE MANAGEMENT & BUREAUCRATIC MANAGEMENT. 9

Focuses on the individual worker’s

productivity

Focuses on the functions of

management

Focuses on the overall

organizational system

CLASSICAL APPROACH10

SCIENTIFIC MANAGEMEN

TPRINCIPLES

Replacement of rule-of-thumb by science.

Scientific selection , training and placement of worker.

Cooperate with workers to ensure that the scientifically developed methods are being followed.

Divide work equally between managers and workers so that the managers apply scientific management principles to planning

the work & the workers actually perform the tasks.

SCIENTIFIC MANAGEMENT

PRINCIPLES12

Frederick Taylor Contribution

The Scientific School of Management

Known as Father of Scientific Management.

Published Principles of Scientific Management.

Increased the Pay for Workers.Organisational Productivity can be

increased by increasing efficiency of the production process.

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Criticism of Taylor’s Contribution

The Consideration of the word ‘Scientific’ before ‘Management’ was criticized .

His principles were confined to Production management.

His principles violates the Principles of Unity of Command.

Trade unionists criticized Taylor’s Principles as the means to exploit workers due to the reason that wages were not increased in direct proportion to the increase in productivity.

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Henry Gantt Contribution

The Scientific School of Management

Worked with F.W Taylor.Modified Taylor’s Incentive System

when he worked independently.Task and Bonus Plan.Harmonius Cooperation between

Labour and Management.Developed the Gantt’s Chart.Stressed the need for Training.

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Frank and Lillian Gillberth’s

ContributionThe Scientific School of Management

Husband & Wife TeamFrank Gillberth - Known for Time and Motion Studies.Lillian Gillberth - An Industralist psychologist , focused on ways of promoting the individual workers’ welfare. Scientific study may include the

study of Analysis and Synthesis.

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CONTENTS•ADMINISTRATIVE MANAGEMENT•FAYOL’s 14 PRINCIPLES•BUREAUCRATIC MANAGEMENT•BUREAUCRATIC PRINCIPLES•NEO-CLASSICAL APPROACH•HUMAN RELATIONS•CONTRIBUTION’s OF HRM

Vidhu Arora17

ADMINISTRATIVE MANAGEMENT

Henry Fayol (1841-1925) was the major contributor to administrative management approach.“FATHER OF MODERN MANAGEMENT”

• "To manage is to forecast and to plan, to organise, to command, to coordinate and to control".

• - Henry Fayol

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FAYOL’s PRINCIPLES OF MANAGEMENT

1. Division of work

2. Authority and responsibility

3. Discipline

4. Unity of command

5. Unity of direction

6. Subordination of individual interest to the common good

7. Remuneration of personnel

8. Centralization

9. Scalar chain

10. Order

11. Equity

12. Stability

13. Initiative

14. Esprit de corps

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BUREAUCRATIC MANAGEMENT

BUREAUCRATIC MANAGEMENT

• A German sociologist and historian who envisioned a system of management

• “a bureaucracy is a highly structured, formalized and impersonal organization.”

MAX WEBER

• Division of labor• Hierarchy of positions• Rules and Regulations• Impersonality• Employee selection and promotion

FIVE FEATURES

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1920 - 1950

NEO-CLASSICAL SCHOOL OF

MANAGEMENT

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Human Relation Movement Elton Mayo (1880–1949) was an Australian

psychologist, sociologist, went to Harvard University.

Spent most of his career at Harvard Business School as Professor of Industrial Research.

Main focus was on the people working in an organization.

 Elton Mayo conducted a research activity in Hawthorne Electric Plant in 1924 to research effect of physical conditions on productivity called as Hawthorne Studies.

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Contributions of HRM• A business organization is also a social

system.• A worker does not work for money only.• Employee-centric, democratic and

participative style of leadership is more efficient.

• A worker’s production norm is set and enforced by his group not by time and motion study.

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CONTENTS•BEHAVIOURAL SCIENCE APPROACH•CONTRIBUTIONS OF BEHAVIOURAL THEORY•MODERN SCHOOL OF MANAGEMENT

QUANTITATIVE APPROACHSYSTEM APPROACH

CONTIGENCY APPROACHOPERATIONAL APPROACH

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Contributions of Behavioural Theory

• Advocates situational approach• Builds confidence among employees• A conducive environment is created

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MODERN SCHOOL OF

MANAGEMENT

QUANTITATIVE APPROACHSYSTEM APPROACH

CONTIGENCY APPROACHOPERATIONAL APPROACH

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KEY CONCEPTS OF SYSTEM APPROACH

SUBSYSTEMSYNERGYOPEN SYSTEM CLOSED SYSTEMSYSTEM BOUNDARYFLOWSFEEDBACK

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Characteristics of system approach

• A system must have some specific components, units or sub units.

• A Change in one system affects the other subsystems.

• Every system is influenced by super system.• All systems along their subsystem must have

some common objectives.• A system is a goal-oriented.• A system cannot survive in isolation.

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– Functions of managers remain same – Functions of management– core of good management– Framework of management– Principles of management

FEATURES

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CONTENTS

IntroductionCurrent Trends Emerging Trends

Neha Sharma 42

TREND• SECULAR TREND

• MEDIUM DURATION TREND

• SHORT PERIOD TREND43

EMERGING BUSINESS?Emerging Business is any kind of business

which is driven by the new technology or new

product.44

HOW IT WORKSEmerging markets have • lower per-capita incomes• higher unemployment• lower levels of business • higher economic growth rates.

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• Focus On Connecting Customers• Selling Through Social Media• Workplace Flexibility

Current trends

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It includes : Contributions Of Public Administrators Contributions Of Business Managers Contribution Of Behaviouralists Contributions Of System Scientists

Emergence Of Modern Management

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A number of scholars bring about increase efficiency in government by means of personnel practices & better management. Example- Woodrow Wilson, leading apostle, sounded the call for efficient government.

Many public administrators have made major contributions in personnel practices, planning etc.

Contributions Of Public Administrators

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Most significant contributions in the field of management theory have been given by businessmen including Taylor, Fayol and Barnard. Some of the theories (writings) given by writers:

o Russell Rob in 1910, based on his business experience defines “organization as a tool for the efficient utilization of manpower and materials, a tool which has been suited to the circumstances of each organization.”

Contributions Of Business Managers

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o Sheldon in 1923 came up with The Philosophy Of Management. Sheldon thought of management as including determination of policy, coordination of functions, the execution of policy & employment of organization.

o Theory of Mooney and Reilley-They combine the elements of an organization into a logical pattern of principle, process, effect.

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HAWTHORNE EXPERIMENT- It was carried out by Mayo & Roethlisberger in

1927.They disclosed that attitude towards workers may be more efficient & productive than such material factors as illumination & even money.

Many sociologists such as Dubin, Selznick have contributed through their works on groups, cultural patterns & cooperation.

Contributions Of Behavioralists

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Some of the major contributors of system theory were

o Katz and Kahn in Social systems.o Forrester in Industrial systems.o Operation research contributions of Stafford

Beer, Churchman and his associates, Hertz.o Norbert Wiener on developing &

emphasizing feedback theory.

Contributions Of System Scientists

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BIBLIOGRAPHY•http://www.bmmagazine.co.uk/in-business/advice/the-evolution-of-management/ •https://en.wikipedia.org/wiki/Evolution_of_Management_Systems •http://www.academia.edu/3718412/Evolution_of_management •Principals and practice of management by lm prasad •http://embanet.vo.net/o18/USC/CMGT500/Week1/docs/CMGT500_w01_Chapter10.pdf •http://yourbusiness.com/evolution-management-theories-17356.html •http://faculty.wwu.edu/dunnc3/rprnts.historyofmanagementthought.pdf

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THANK YOU!