The Evolution of Management Thought(1)

7/30/2019 The Evolution of Management Thought(1)

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The Evolution ofManagement Thought


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The Evolution of Management Theories forOrganization


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Scientific ManagementTheory


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AdministrativeManagement Theory


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Administrative Management Theory

Administrative

Management

The study of how to

create an organizationalstructure that leads to

high efficiency and

effectiveness.


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max Weber's

theory


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Administrative Management Theory

Max Weber ( 1864-1920) German sociologistHe has given the bureaucratic model. He

developed the principles of bureaucracy as a

formal system of organization andadministration designed to ensure efficiency

and effectiveness.

It is the most important means of controllingover human beings.


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Webers

Principles of

Bureaucracy


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Webers Principles of Bureaucracy

:Hierarchy of authority:

Authority can be exercised effectively when positions are arranged

hierarchically, so employees know whom to report to and who reports to

them.

In a bureaucracy, a managers formal authority derives from the position he

or she holds in the organization.

Division of labour : There should be a division of labor based upon

competence and functional specialization


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Impersonality:

People should occupy positions because of their performance, not

because of their social standing or personal contacts.

Specified system of task and responsibility:

The extent of each positions formal authority and taskresponsibilities and its relationship to other positionsshould be clearly specified.


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Written rules of conduct

Managers must create a well-definedsystem of rules,

standard operatingprocedures, and norms so theyso that they can

effectively controlbehavior .


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Rules, SOPs and Norms

Rulesformal written instructions that specify actionsto be taken under different circumstances to achievespecific goals

Standard Operating Procedures (SOPs)specificsets of written instructions about how to perform acertain aspect of a task

Normsunwritten, informal codes of conduct thatprescribe how people should act in particular situations


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Advantages

and

disadvantages


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Advantages

No confliction among job duties

Promotion is based on experience and merits.

Employees are bound to follow rules and management

process becomes easy Division of labour helps workers in becoming experts.


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Disadvantages

System suffers from too much of red tape and paperwork.

Human factor is neglected due to excessive emphasis

on rules Employees dont develop belongingness to the

organization

Employees resist change.


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BehaviouralManagement Theory


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Behavioral Management /Humanrelations approach

Behavioral Management

The study of how managers should

personally behave to motivate employees

and encourage them to perform at highlevels and be committed to the achievement

of organizational goals.


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Behavioral Management

It was concerned that scientificmanagement ignored the human side ofthe organization.

It began with the Hawthorne experimentsby Elton Mayo and importantcontributions have been made by DouglasMc.Gregor


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Features of the theory

An organization is more than a formal structureof positions. It is a system of interpersonal andintergroup relationships.

Management must understand human behavior

Higher motivation and productivity can beobtained through good human relations whichcan be developed through

Leadership

Communication

Employee participation


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Theory X

andTheory Y


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Theory X and Theory Y

It is given by Douglas McGregor. Heproposed the two different sets ofassumptions about workers.

In his book the Human side ofenterprisestates that people can bemanaged in two ways.


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Theory XAssumptions :The average worker is lazy, dislikes work and will do as

little as possible and tries to escape it whenever possible

Managers must closely supervise and control throughreward and punishment.

Many employees rank job security on top, and they havelittle or no aspiration/ ambition.

Employees generally dislike responsibilities and fromresponsibilities.

An average employee needs formal direction.


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Theory Y

Assumptions:Workers are not lazy, want to do a good job

They view work as natural and enjoyableEmployees are committed to objectives and exercise self

control and self direction for their attainment.

If the job is rewarding and satisfying, then it will result

in employees loyalty and commitment to organization.They can learn and even seek responsibility.

All people are capable of making creative and innovativedecisions


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implications


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The Hawthorne Studies

Studies of how characteristics of the work

setting affected worker fatigue and

performance at the Hawthorne Works of

the Western Electric Company from1924-1932.


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Worker productivity was measured at

various levels of light illumination.

Researchers found that regardless of

whether the light levels were raised or

lowered, worker productivity

increased.


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Human Relations Implications

Hawthorne effectworkers attitudes

toward their managers affect the level of

workers performance


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Human relations movement advocates

that supervisors be behaviorally trained

to manage subordinates in ways that

elicit their cooperation and increase theirproductivity


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Implications

Behavior of managers and workers in the

work setting is as important in explaining

the level of performance as the technical

aspects of the task


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Demonstrated the importance of

understanding how the feelings,

thoughts, and behavior of work-group

members and managers affectperformance


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Management ScienceTheory


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Management Science Theory

Contemporary approach to management

that focuses on the use of rigorous

quantitative techniques to help

managers make maximum use oforganizational resources to produce

goods and services.


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Quantitative management utilizeslinear and nonlinear programming,modeling, simulation, queuing theory

and chaos theory. Operations management

techniques used to analyze any aspectof the organizations productionsystem.


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Total Quality Management (TQM)focuses on analyzing input,

conversion, and output activities to

increase product quality.

Management Information Systems(MIS) provides information vital for

effective decision making.


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OrganizationEnvironment Theory


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Organizational Environment Theory

Organizational Environment

The set of forces and conditions that

operate beyond an organizationsboundaries but affect a managers ability

to acquire and utilize resources


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The Open-Systems View

Open System

A system that takes resources for its

external environment and transforms

them into goods and services that are

then sent back to that environment

where they are bought by customers.


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The Open-Systems View

Inputs: the acquisition of external resourcesto produce goods and services

Conversion: transforms the inputs into

outputs of finished goods and services. Output: the release of finished goods and

services to its external environment.


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Closed System

A self-contained system that is not

affected by changes in its external

environment.

Likely to experience entropy and lose its

ability to control itself


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Systems

Synergy the performance gains that

result from the combined actions of

individuals and departments

Possible only in

an organized system


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The Evolution of Management Thought(1)

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