Presurcors of management

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Precursors of management Management in antiquities Early management pioneers

Transcript of Presurcors of management

  • 1. Management in antiquitiesEarly management pioneers

2. Management in antiquities: Romans (1000 B.C-400 B.C): Organized structure for communication Egyptians(3000-1000 B.C): Management practices to construct pyramids 3. Sumerians (3000-2500 B.C): Written rules and regulations for governance Chinese ( 1000 B.C -1000 A.D) Laws ,policies and structure for governance 4. Early management pioneers: Charles Babbage (1792-1871): Production efficiency Robert Owen (1771-1858): Employee welfare 5. Henry Robinson Towne (1844-1924): Skills and management Organized effort to pool the accumulated knowledge Captain Henry Metcalfe (1837-1913): Improvement of administration Cost estimation and details of work 6. Is an attitude and philosophy which discards the traditionalmethod of hit and miss, rule of thumb, trial and errors ofmanaging work and workersCocerned with application of scientific problem solvingapproachPurpose is to improve labor productivity 7. Frederick Winslow Taylor(1856-1915) Known as father of scientific management Prominent scholar to introduce scientific management Made efforts to replace primitive rule of thumbmethod by modern scientific method Convinced that there is a science for doing each job Published book principles of scientific management 8. Principles of scientific management Science not rule of thumb Scientific selection, development and training ofworker Co -operation Division of work and responsibility By-lateral mental revolution 9. Contribution of scientificmanagement Helps in increase in production Developed workers efficiency Leads to greater economic prosperity Differential wage payment system Time study, motion study and economic incentives 10. Limitations of scientificmanagement theory Laid too much emphasis on technical aspects of work Totally ignored human interests Leads to monotony in worker Forced to speed up process beyond their capacity Not allowed to take initiative use of modern machines reduced the number of workers 11. Concerned with entire range ofmanagerial performancedistinct field of studyFocuses on functions principles andskills needed for management 12. Henry fayol(1840-1925) French industrialist and mining engineerbyprofession Developed theory of administrative management Known as father of administrative management Was the contemporary of Taylor 13. Management consists of:Businessactivities Management Administrative Managementfunctionsmanagement skillsManagement principles 14. Division of industrial activities intosix groupsTechnical Production, manufacturing commercial Buying,selling,and exchangeFinancial Acquiring, controlling capital Protecting people, propertysecurity Accounting Recording financial transactions Planning,organising,staffing,leading,controlling managerial 15. Principles of administrativemanagement:-fourteen principles Division of work Authority and responsibility Discipline Unity of command Unity of direction 16. Subordination of individual interest to generalinterest Remuneration of personnel centralization Scalar chain Order 17. Equity Stability of tenure of personnel Initiative Espirit de corps 18. Contributions of administrativemanagement Focuses on efficiency of organization Lays down universal principles of management Identified skills needed for management Regarded management as a profession 19. Limitations: No proper attention to human behavioral aspects Not considered situational factors No clear distinction between structure and process of organization 20. Principles of management are not applicable in allsituations Based on personal experience and little observations 21. Bureaucracy form of organization characterized by: Division of laborRules and regulations Impersonal relations 22. Developed by Max Weber(1864-1920) Was a German sociologist 23. Most common in large organizations Applicable to organization where more number ofemployees Performing activities to meet common goals 24. Principles of bureaucraticmanagement: Formal rules and procedures Functional specialization Well defined hierarchy of authority 25. Supervision by a higher authority Technical competence for employment and promotion All decision should be recorded Interpersonal relation 26. Advantages / Contributions: Focus on chain of command Proper division of work Specific procedures 27. Relationship based on position Focus on technical competence Job security 28. Limitations of bureaucratic theory: Rigid rules and regulations Ignores innovation Lack of effective communication 29. Problem of role conflict Ignores informal relationship 30. Are modified ,enlarged and extended forms of classicaltheoryEmphasized on social and psychological factors at workand emotions 31. Two categories of behavioralperspective:I.Human relation approachII. Behavioral science approach 32. HUMAN RELATION APPROACH: The term human relation is generally used todescribe the ways in which managers interact with subordinates Workers should not be treated as mere factors ofproduction They should be considered as human beings 33. Elton Mayo and his colleagues laid the foundation forhuman dimension in organizations Was a professor at Harvard Business School 34. Conducted series of experiments At Hawthorne plant of Western Electric Company at Chicago 35. Four phases of experiments:1. Illumination experiments:Conducted to measure the effects of lighting on productivity of workersIllumination was manipulated for one group of workersHeld constant for another group 36. Conclusion was: Illumination didnt affect output Social acceptance influenced work performance 37. Relay assembly test roomexperiments: Two groups of six female telephone relay assemblerswere put in separate rooms Frequent changes made in their working conditions 38. Conclusion was: Output increased Recognition and appreciation are important forproduction Social setting and group cohesion needed 39. A group of 20,000 workers were interviewedTo find out factors responsible for human behavior atwork 40. Conclusion was: Importance of informal relations influenced theworkers attitude Social and psychology needs influenced behavior andproductivity 41. Bank wiring observation roomexperiment: 14 male workers were formed into small work group Observed for seven months In bank wiring room 42. Conclusion was: Workers formed informal organizations They set their own production norms Supervisors paid special attention and care to them Management concerned about their welfare 43. Personal and social factors are important to motivateemployeesThe concept of social man "because unavoidableEffective supervision to improve productivity 44. Limitations of Hawthorne studies: Lacks adequate focus on work Laid emphasis on interpersonal relations and informalgroups Financial reward were ignored for symbolic reward 45. Concerned with scientific investigation, analysis andunderstanding human behaviorImproved and more modern version of human relationapproach 46. Behavioral science theory consistsof:I. Need hierarchy theory: Abraham MaslowII. Theory X and Y : Douglas Mc GregoryIII. Two factor theory : Frederick Herzberg 47. Need hierarchy theory: Advocated that human behavior is motivated by needs When one need is fulfilled another arises inpredictable sequence Employees are motivated to work in best possibleefficiency to fulfill needs 48. Lower order needs (psysiological,safety):Should be satisfied first before higher order needsHigher order needs (social,ego,sel-actualization): 49. To sum up this theory says- Man is never fully satisfied- Unfulfilled needs influence human behavior inorganization 50. Douglas Mc Gregory proposed:two distinct views of human beingsNegative labeled theory XPositive labeled theory Y 51. THEORY - X Set of pessimistic assumption Employees are lazy Tends to avoid work Need managerial control Seek formal directions by superiors 52. Avoids responsibility Security oriented ambition Lower order needs Focus on organizational goals 53. THEORY - Y Set of optimistic assumption Employees are active, dynamic They liked, accept the work Self control by employees Learn to accept and seek responsibility 54. Creativity oriented ambition Higher order needs Integration of individual and organizational goals Creativity is not the monopoly of managers 55. Frederick Herzberg developed two factor theory for workmotivationThis theory based on the contents of interviews conductedon 200 engineers and accountantsHygiene factor and motivation factor 56. Hygiene factor: Known as dissatisfies or maintenance Presence of these factors do not motivate employees But their absence causes dissatisfaction 57. Necessary to maintain minimum level of needsatisfaction Includes: company policyand supervision,relationship with supervisors , relationship with peers,personal life, salary etc 58. Motivation factor: Known as motivators,satisfiers,or job content factors Its presence causes high levels of motivation and jobsatisfaction Their absence do not cause high dissatisfaction 59. Includes: self respect, sense of responsibility, workingcondition,achieveent ,recognition Conclusion: enriched jobs are key to motivateemployees 60. Contribution of behavioral sciencetheory: Identified the role of human elements in organization Recognized the quality of leadership as imp factor forsuccess of management Emphasizes on non financial rewards 61. Limitation of behavioural sciencetheory: Neglects the economic dimension of job satisfaction Not considered situational variables Views mgmt as nothing but applied behavioral science Lacks scientific validity; 62. Involves the use of quantitative techniquesQuantitative tools such as:statistics,informationmodels, and computer simulations to improve decisionmaking 63. Management science theory: Emphasizes on application of mathematics andstatistics Useful for taking decisions and solving managementproblems 64. Linear programming, game theory, sampling theory,probability theory are some techniques Manager uses to solve resource allocation problem Computer programs are used to analyze the programs 65. Operation management theory: concerned with managing the process of transformingmaterials,labors,and capital into products Pays close attention todemands ofquality,customer,serviceand competition Proves to be the best technique for solving complexmanagement problems 66. Contribution of quantitativeperspective: Developed quantitative tools to aid decision making Widely used in production and operationmanagement Found in solving technical problems and forecasting 67. Management information system: Organizes past, present and projected data andprocesses it into usable information Collects data from both internal and external source Makes then available to managers at all organizationallevels 68. Limitations: Does not deal with people aspect of an organization Required data cannot be updated and are not accurate It requires unrealistic or unfounded assumptions 69. Integrates the earlier perspectives consisting two theories i.e. The system theoryThe contingency theory 70. The system theory of management Relatively new approach to continually expanding body ofmanagement thoughts Well known scholars research deeply planted in physicaland biological sciences Other universalistic theories studies fragmented ,upgradedform Group of interrelated parts acting together to accomplish agoal of unified purposes Deals with the organizational environment scanning thewhole internal and external ones 71. EnvironmentInternal External Organizational plans and policies Organizational structures Organizational resources Micro taskmacro Organizational culture1. Suppliers 1.political(P)2.customers 2.Economic(E)3.media 3.socio-culturall4.pressure group 4.technology5.competitors 5.Nature {To some extent controllable}{uncontrollable} 72. Various elements of system theory open system closed system sub system Goal directed Synergy Boundary Entropy Flow of information 73. system view of an organizationInput conversion output Feedback 74. Contribution of system theory: Takes an integrative total view of organization Holistic view taken for problem solving Recognize interrelation &interactions amongsubsystem Provides better understanding of environment Useful for studying complex organization Facilitates feedback changes in system 75. Limitations Isnt useful for small organization Too abstract, practically not applicable for all Doesnt provide specific guidance on functions andduties of manager 76. THE CONTINGENCY THEORY Profounder: Tom Burns and G.M. Stalker in Britain Paul Lawrence and jay Lorsch in U.S Emerged from experiences of many other Management concept are contingent on a particularsituation Situational characteristics there is no best way to manage Recognizes situational nature of management taking anintegrative view Each situation is unique and demands unique managerialaction 77. Differences between universalistic and contingencytheory:BasesUniversalistic contingency 1.characterstics Firm is insulated from Proactive recognitionoutside changes for it than externalexternal environment environment has aisnt a factor. it just look critical impact onlike a technical coreinternal firm design. 2.DefinationsDefines "there is oneBest way to manageway to organize depends on various contingencies 3.OrganizationsMaximumLevel of specialization effectivenessspecialization,.formalization ormaximumemployee are contingentformalization, upon needs ofmaximum employee organization and shouldparticipation like factors be matched accordinglywith maximumperformance 78. Contingencies/ situations variables Organization size Task technology Uncertain environment Geographical spread Strategies Individual differences Types of work being done 79. Contingency theory of structural adaptionto regain fit{SARFIT}Contingencies variableOther causes - Fit performance + + LOW OrganizationalIf less than satisfying structureAdaptive Changes 80. Contributions Situation regarded as important aspect ofmanagement decisions after emergence of contingencytheory Situational Applicability of various managementtheories Development of ideas the no one best way to manageas depends on situation Widely adaptable in planning,organizing,directing,motivating,and controlling. 81. Limitations Very complex as to determine variables and theirinterrelationship is tough task every situation is unique and impossible to handle andanalyze it Fails to identify all the contingencies May not be applicable in all managerial issues 82. Emerging challenges/Issues formanagement Globalization and e-commerce Development of environmentalism Quality assurance and productivity Managerial ethics and social responsibility(corporategovernance) Workforce diversity Innovation and change Empowerment of employee Knowledge management Technological development Multi cultural effects Learning organization Managing expatriate employees multinational 83. THEEND 84. Thanking u all.ANY QUERIES?????