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 Classical

theory
a. Scientific Management Approach
b. Administrative Management Approach
c. Bureaucratic Approach
 Neo- Classical theory
a. Human Relations Approach
 Social Systems Approach
 Decision Theory Approach
 Management Science Approach
 Human Behavior Approach
 Systems Approach
 Contingency Approach
Frederick Winslow Taylor (20 March 1856-21
March 1915), widely known as F. W. Taylor, was
an American mechanical engineer who sought to
improve industrial efficiency.
 He is regarded as the father of scientific
management, and was one of the first
management consultants.
 He is sometimes called as “Father of Scientific
Management”.

 It

is the art of knowing what exactly you
want from your men to do & then seeing that
it is done in best possible manner.
 Taylor’s

contributions can be divided in two

parts:
 Elements and tools of SM
 Principles of SM
 Separation

of planning and doing
 Functional Foremanship
 Job analysis
 Standardization
 Scientific selection and training of workers
 Financial

incentives

 Economy
 Mental

revolution
Replacing rule of thumb with science.
 Harmony in group action.
 Cooperation.
 Maximum output.
 Development of workers.

The main argument against Taylor is this
reductionist approach to work dehumanizes the
worker.
 The allocation of work "specifying not only what
is to be done but how it is to done and the exact
time allowed for doing it" is seen as leaving no
scope for the individual worker to excel or think.
 The belief that increased output would lead to
less workers.

HENRY FAYOL
A

French mining engineer developed 14
principles of management based on his
management experience.
 He pioneer in the field of management
education.
 He has been rightly called as father of
management process school.
 He was first person who laid emphasis on
the process of management.
 Forecast

& Plan
- Examining the future and
drawing up a plan of action. The elements of
strategy.
 To organize
- Build up the structure, both
material and human, of the undertaking.
 To command
- Maintain the activity among the
personnel.
 To

coordinate
- Binding together, unifying and
harmonizing all activity and effort.
 To control
- Seeing that everything occurs in
conformity with established rule and
expressed command.
 Technical

(production)
 Commercial (purchase and sales)
 Financial (funding and controlling capital)
 Security(protection to property and person)
 Accounting
 Managerial
 Physical
 Mental
 Moral
 Educational

 Technical
 Experience
 Division

of work
 Authority and responsibility
 Discipline
 Unity of command
 Unity of direction
 Subordination of individual interest to
general interest
 Remuneration

of personnel

 Centralization
 Scalar

chain

 Order

 Equity
 Stability

of tenure
 Initiative
 Esprit de corps
F.W. Taylor

Basis of difference
Perspective
 Shop floor level
Orientation
Result

Production and
engineering
 Scientific
observation and
measurement


Henry Fayol

Higher
management level
 Managerial
function




Personal
experiences
translated into
universal truths.
Max Weber
 It

is an administrative system designed to
accomplish large- scale administrative tasks
by systematically coordinating the work of
many individuals.
 Administrative

class
- people are paid and are whole time
employee.
- they receive salary and other
benefits normally based on their
positions.
- their tenure in the organization is
determined by the rule and regulations.
 They

do not have any proprietary interest
In the organization.
 They are selected for the purpose of
employment based on their competence.
 Division

of work
 Hierarchy
 Rules
 Impersonal conduct
 Technical competence
 Official records
Elton Mayo
 Psychologist

and Sociologist

 12/26/1880

– 9/7/1949
 Hawthorne

plant of GE company, chicago.
 Manufacturing telephone system bell.
 Investigation to find the problems of low
productivity.
 To

find out effect of varying level of
illumination on productivity.
 Effect

of various job conditions on the group
productivity.
 The changes:
- the incentive system
- two five minute rests
- frequency of rest increased
- rest was reduced to two but with the
coffee or soup and sandwich
- changes in working hours and work
day
 Productivity

was increased.
 Absenteeism decreased.
 Morale increased.
 Less supervision was required.
 To

analyze the functioning of small group and
its impact on individual behavior.
 Group of 14 male workers was employed
 Hourly wage rate based on average output of
each worker while bonus on the basis of
group output
 7300

terminal vs 6600 terminals
 Reasons for restricted output:
- fear of unemployment
- fear of raising the standard
- protection of slower workers
- satisfaction on the part of mgmt.
 20,000

interviews were conducted
 Direct questions were asked
 The method was changed to non- directive
interviews.
 Workers behavior was being influenced by
group behavior.
 Social

factors in output
 Group influence
 Leadership
 Supervision
 Communication
Chester Barnard
 According

to this approach, an organization
is essentially a cultural system composed of
people who work in cooperation.
 Concept

of organization
- able to communicate each other
- willing to contribute to the action
- attempt to accomplish a common
purpose
 Formal and informal organization
 Authority

- person can understand the
communication
- compatible with personal interest.
- he is physically and mentally fit for job.
 Motivation

- opportunity of power and distinction
- feeling of belongingness
- recognition
 Organizational Equilibrium
 Concept

of organization
- it is a complex network of decisional
processes.
 Decision Making
- intelligent activity
- design activity
- choice activity
 Nature

of management
- innovation and creative
 Organizational structure
- least possible no. of managers levels
- training and testing of tomorrow top
managers
- giving responsibility to managers while
still
he is young.
 Management

by objective(MBO)
- MBO is a systematic and organized
approach that allows management to focus
on achievable goals and to attain the best
possible results from available resources
 should

"avoid the activity trap", getting so
involved in their day to day activities that
they forget their main purpose or objective.
Instead of just a few top-managers, all
managers should:
 everybody

within the organization has a clear
understanding of the aims, or objectives, of
that organization
 awareness of their own roles and
responsibilities in achieving those aims.
 managers

to be masters five basic
operations:
 setting objectives,
 organizing the group,
 motivating and communicating,
 measuring performance, and
 developing people, including yourself






All individuals within an organization are
assigned a special set of objectives that
they try to reach during a normal operating
period. These objectives are mutually set
and agreed upon by individuals and their
managers.
Performance reviews are conducted
periodically to determine how close
individuals are to attaining their
objectives.
Rewards are given to individuals on the
basis of how close they come to reaching
their goals.
 It

is regarded as the problem solving
mechanism with the help of mathematical
tools and techniques.
 Operation research, mathematical tools,
models etc. are the basic methodologies to
solve managerial problems.
 Linear

programming
 Queuing theory
 Time series analysis
 Transportation theory
 Assignment problem
 This

approach emphasizes HR in organization
more as compared to physical and financial
resources.
 Derived

from latin word “movere” which
means “to move”.
 A motive is an inner state that energizes,
activates or moves which directs behavior
towards goals.
 Abraham

Maslow’s need hierarchy
 Frederick Herzberg’s Motivation- Hygiene
Theory
 Douglas McGregor’s “Theory X” and “Theory
Y”.
 William Ouchi’s Theory Z.
Maslow’s Hierarchy of Needs
NEED
SELFACTUALIZATION

ESTEEM NEEDS

SOCIAL NEEDS

SAFETY NEEDS

PHYSIOLOGICAL OR SURVIVAL NEEDS
 Food
 Water
 Air
 Shelter

 Clothing
 Staying

well, avoiding being ill
 Avoiding danger
 Safe circumstances
 Stability
 Protection
 Loves

and affection and belongingness needs
 Friends, children, affectionate relationships
in general, exchange of feelings and
grievances etc.
•

The need for the respect, the need for status,
fame, glory, recognition, attention, reputation,
appreciation, dignity, competence, achievement,
independence, and freedom
 In

1959, Frederick Herzberg foundthat
people had two essential needs in life.



The human’s need as an animal to avoid pain
The human’s need to grow psychologically

 This

led to the creation of a dual factor
theory that has been a stepping stone for
motivation in the workplace.
 Herzberg

interviewed 203 engineers and
accountants




They were asked to recall a time when they felt
exceptionally good at their job and the feelings
associated
At a second interview they were asked to recall a
time when they felt exceptionally negative on
the job and the feelings associated

 These



results led to two categories

Job Satisfiers
Job Dissatisfies
 Also

know as Job Satisfiers
 Motivators are things that create positive
feelings
 These included things such as





Achievement
Responsibility
Growth in Workplace
Recognition
 Job

Dissatisfies
 Hygiene Factors were associated with work
context and environment
 These included things like:






Company Policy
Administration
Job Security
Salary
Work Conditions
- interpersonal relationship with supervision
- interpersonal relationship with peers
- interpersonal relationship with
subordinate
 The

theory states that if the motivator
factors are present in conjunction with
hygiene factors then the job will be
satisfying
 If the hygiene factors are the only present
factors then the job will be in a neutral state
 If the hygiene factors are not present then
the job becomes dissatisfying, with or
without motivators


Theory X




Theory Y




Assumes that workers have little ambition, dislike
work, avoid responsibility, and require close
supervision.

Assumes that workers can exercise self-direction,
desire responsibility, and like to work.

Motivation is maximized by participative decision
making, interesting jobs, and good group
relations.
 Trust
 Strong

bond between organization and
employee
 Employee involvement
 No formal structure
 System

is defined as “An organized or
complex whole; an assemblage or
combination of things or parts forming a
complex unitary whole.
A

system is basically a combination of parts,
subsystems. Each part may have various subparts.
 An organization is a system of mutually
dependent parts, each of which may include
many subsystems.
 Closed

system
 Open system
 Management

action is contingent on certain

action
 Because of specific organizationenvironment relationship, no action can be
universal.

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Evolution of Management Thought

  • 1.
  • 2.  Classical theory a. Scientific Management Approach b. Administrative Management Approach c. Bureaucratic Approach  Neo- Classical theory a. Human Relations Approach  Social Systems Approach  Decision Theory Approach  Management Science Approach  Human Behavior Approach  Systems Approach  Contingency Approach
  • 3. Frederick Winslow Taylor (20 March 1856-21 March 1915), widely known as F. W. Taylor, was an American mechanical engineer who sought to improve industrial efficiency.  He is regarded as the father of scientific management, and was one of the first management consultants.  He is sometimes called as “Father of Scientific Management”. 
  • 4.  It is the art of knowing what exactly you want from your men to do & then seeing that it is done in best possible manner.
  • 5.  Taylor’s contributions can be divided in two parts:  Elements and tools of SM  Principles of SM
  • 6.  Separation of planning and doing  Functional Foremanship  Job analysis  Standardization  Scientific selection and training of workers
  • 8. Replacing rule of thumb with science.  Harmony in group action.  Cooperation.  Maximum output.  Development of workers. 
  • 9. The main argument against Taylor is this reductionist approach to work dehumanizes the worker.  The allocation of work "specifying not only what is to be done but how it is to done and the exact time allowed for doing it" is seen as leaving no scope for the individual worker to excel or think.  The belief that increased output would lead to less workers. 
  • 11. A French mining engineer developed 14 principles of management based on his management experience.  He pioneer in the field of management education.  He has been rightly called as father of management process school.  He was first person who laid emphasis on the process of management.
  • 12.  Forecast & Plan - Examining the future and drawing up a plan of action. The elements of strategy.  To organize - Build up the structure, both material and human, of the undertaking.  To command - Maintain the activity among the personnel.
  • 13.  To coordinate - Binding together, unifying and harmonizing all activity and effort.  To control - Seeing that everything occurs in conformity with established rule and expressed command.
  • 14.  Technical (production)  Commercial (purchase and sales)  Financial (funding and controlling capital)  Security(protection to property and person)  Accounting  Managerial
  • 15.  Physical  Mental  Moral  Educational  Technical  Experience
  • 16.  Division of work  Authority and responsibility  Discipline  Unity of command  Unity of direction  Subordination of individual interest to general interest
  • 17.  Remuneration of personnel  Centralization  Scalar chain  Order  Equity  Stability of tenure  Initiative  Esprit de corps
  • 18. F.W. Taylor Basis of difference Perspective  Shop floor level Orientation Result Production and engineering  Scientific observation and measurement  Henry Fayol Higher management level  Managerial function   Personal experiences translated into universal truths.
  • 20.  It is an administrative system designed to accomplish large- scale administrative tasks by systematically coordinating the work of many individuals.
  • 21.  Administrative class - people are paid and are whole time employee. - they receive salary and other benefits normally based on their positions. - their tenure in the organization is determined by the rule and regulations.
  • 22.  They do not have any proprietary interest In the organization.  They are selected for the purpose of employment based on their competence.
  • 23.  Division of work  Hierarchy  Rules  Impersonal conduct  Technical competence  Official records
  • 25.  Psychologist and Sociologist  12/26/1880 – 9/7/1949
  • 26.  Hawthorne plant of GE company, chicago.  Manufacturing telephone system bell.  Investigation to find the problems of low productivity.
  • 27.  To find out effect of varying level of illumination on productivity.
  • 28.  Effect of various job conditions on the group productivity.  The changes: - the incentive system - two five minute rests - frequency of rest increased - rest was reduced to two but with the coffee or soup and sandwich - changes in working hours and work day
  • 29.  Productivity was increased.  Absenteeism decreased.  Morale increased.  Less supervision was required.
  • 30.  To analyze the functioning of small group and its impact on individual behavior.  Group of 14 male workers was employed  Hourly wage rate based on average output of each worker while bonus on the basis of group output
  • 31.  7300 terminal vs 6600 terminals  Reasons for restricted output: - fear of unemployment - fear of raising the standard - protection of slower workers - satisfaction on the part of mgmt.
  • 32.  20,000 interviews were conducted  Direct questions were asked  The method was changed to non- directive interviews.  Workers behavior was being influenced by group behavior.
  • 33.  Social factors in output  Group influence  Leadership  Supervision  Communication
  • 35.  According to this approach, an organization is essentially a cultural system composed of people who work in cooperation.
  • 36.  Concept of organization - able to communicate each other - willing to contribute to the action - attempt to accomplish a common purpose  Formal and informal organization
  • 37.  Authority - person can understand the communication - compatible with personal interest. - he is physically and mentally fit for job.
  • 38.  Motivation - opportunity of power and distinction - feeling of belongingness - recognition  Organizational Equilibrium
  • 39.  Concept of organization - it is a complex network of decisional processes.  Decision Making - intelligent activity - design activity - choice activity
  • 40.  Nature of management - innovation and creative  Organizational structure - least possible no. of managers levels - training and testing of tomorrow top managers - giving responsibility to managers while still he is young.
  • 41.  Management by objective(MBO) - MBO is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources
  • 42.  should "avoid the activity trap", getting so involved in their day to day activities that they forget their main purpose or objective. Instead of just a few top-managers, all managers should:
  • 43.  everybody within the organization has a clear understanding of the aims, or objectives, of that organization  awareness of their own roles and responsibilities in achieving those aims.
  • 44.  managers to be masters five basic operations:  setting objectives,  organizing the group,  motivating and communicating,  measuring performance, and  developing people, including yourself
  • 45.
  • 46.    All individuals within an organization are assigned a special set of objectives that they try to reach during a normal operating period. These objectives are mutually set and agreed upon by individuals and their managers. Performance reviews are conducted periodically to determine how close individuals are to attaining their objectives. Rewards are given to individuals on the basis of how close they come to reaching their goals.
  • 47.
  • 48.  It is regarded as the problem solving mechanism with the help of mathematical tools and techniques.  Operation research, mathematical tools, models etc. are the basic methodologies to solve managerial problems.
  • 49.  Linear programming  Queuing theory  Time series analysis  Transportation theory  Assignment problem
  • 50.  This approach emphasizes HR in organization more as compared to physical and financial resources.
  • 51.  Derived from latin word “movere” which means “to move”.  A motive is an inner state that energizes, activates or moves which directs behavior towards goals.
  • 52.  Abraham Maslow’s need hierarchy  Frederick Herzberg’s Motivation- Hygiene Theory  Douglas McGregor’s “Theory X” and “Theory Y”.  William Ouchi’s Theory Z.
  • 53. Maslow’s Hierarchy of Needs NEED SELFACTUALIZATION ESTEEM NEEDS SOCIAL NEEDS SAFETY NEEDS PHYSIOLOGICAL OR SURVIVAL NEEDS
  • 54.  Food  Water  Air  Shelter  Clothing
  • 55.  Staying well, avoiding being ill  Avoiding danger  Safe circumstances  Stability  Protection
  • 56.  Loves and affection and belongingness needs  Friends, children, affectionate relationships in general, exchange of feelings and grievances etc.
  • 57. • The need for the respect, the need for status, fame, glory, recognition, attention, reputation, appreciation, dignity, competence, achievement, independence, and freedom
  • 58.
  • 59.  In 1959, Frederick Herzberg foundthat people had two essential needs in life.   The human’s need as an animal to avoid pain The human’s need to grow psychologically  This led to the creation of a dual factor theory that has been a stepping stone for motivation in the workplace.
  • 60.  Herzberg interviewed 203 engineers and accountants   They were asked to recall a time when they felt exceptionally good at their job and the feelings associated At a second interview they were asked to recall a time when they felt exceptionally negative on the job and the feelings associated  These   results led to two categories Job Satisfiers Job Dissatisfies
  • 61.  Also know as Job Satisfiers  Motivators are things that create positive feelings  These included things such as     Achievement Responsibility Growth in Workplace Recognition
  • 62.  Job Dissatisfies  Hygiene Factors were associated with work context and environment  These included things like:      Company Policy Administration Job Security Salary Work Conditions
  • 63. - interpersonal relationship with supervision - interpersonal relationship with peers - interpersonal relationship with subordinate
  • 64.  The theory states that if the motivator factors are present in conjunction with hygiene factors then the job will be satisfying  If the hygiene factors are the only present factors then the job will be in a neutral state  If the hygiene factors are not present then the job becomes dissatisfying, with or without motivators
  • 65.  Theory X   Theory Y   Assumes that workers have little ambition, dislike work, avoid responsibility, and require close supervision. Assumes that workers can exercise self-direction, desire responsibility, and like to work. Motivation is maximized by participative decision making, interesting jobs, and good group relations.
  • 66.  Trust  Strong bond between organization and employee  Employee involvement  No formal structure
  • 67.  System is defined as “An organized or complex whole; an assemblage or combination of things or parts forming a complex unitary whole.
  • 68. A system is basically a combination of parts, subsystems. Each part may have various subparts.  An organization is a system of mutually dependent parts, each of which may include many subsystems.
  • 70.  Management action is contingent on certain action  Because of specific organizationenvironment relationship, no action can be universal.