Evolution of mgt. theories 1A-0

Early Management Concepts And Influences Growth of companies minor improvements in management tactics produced impressive increases in production quantity and quality economies of scale - reductions in the average cost of a unit production as the total volume produced increases opportunities for mass production created by the industrial revolution spawned intense and systematic thought about management problems and issues 1

Evolution Of Management Thought Classical Approaches Contemporary Approaches 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Systematic management Scientific management Bureaucracy Administrative management Human relations Quantitative management Organizational behavior Systems theory Contingency theory Current and future revolutions 1A-2

Scientific Management (F.W. Taylor,Henry Gantt,Gilbreths) Key concepts used scientific methods to determine the “one best way’ emphasized study of tasks, selection and training of workers, and cooperation between workers and management Contributions improved factory productivity and efficiency introduced scientific analysis to the workplace piecerate system equated worker rewards and performance Limitations simplistic motivational assumptions workers viewed as parts of a machine potential for exploitation of labor 1A-3

Classical /Administrative Management(Henri fayol,,mary follet,Chester barnard) Key concepts Fayol’s five functions and 14 principles of management executives formulate the organization’s purpose, secure employees, and maintain communications managers must respond to changing developments Contributions viewed management as a profession that can be trained and developed emphasized the broad policy aspects of top-level managers offered universal managerial prescriptions Limitations universal prescriptions need qualifications for contingencies 1A-4

Bureaucracy(Max weber) Key Concepts structured network of relationships among specialized positions rules and regulations standardize behavior jobs staffed by trained specialists who follow rules Contributions promotes efficient performance of routine operations eliminates subjective judgment by employees and management emphasizes position rather than the person Limitations limited organizational flexibility and slowed decision making ignores the importance of people and interpersonal relationships rules may become ends in themselves 1A-5

Behavioral/Human Relations( Elton Mayo,Maslow,Mc Gregor) Key concepts productivity and employee behavior are influenced by the informal work group should stress employee welfare, motivation, and communication social needs have precedence over economic needs Contributions psychological and social processes influence performance Maslow’s hierarchy of need Limitations ignored workers’ rational side and the formal organization’s contributions to productivity research overturned the simplistic belief that happy workers are more productive 1A-6

stresses relationships among employees/managers Key concepts promotes employee effectiveness through understanding of individual, group, and organizational processes stresses relationships among employees/managers assumes employees want to work and can control themselves Contributions increased participation, greater autonomy, individual challenge and initiative, and enriched jobs may increase participation recognized the importance of developing human resources Limitations some approaches ignored situational factors, such as the environment and technology 1A-7

Quantitative Management Key concepts application of quantitative analysis to management Contributions developed specific mathematical methods of problem analysis helped managers select the best alternative among a set Limitations models neglect nonquantitative factors managers not trained in these techniques may not trust or understand the techniques’ outcomes not suited for nonroutine or unpredictable management decisions 1A-8

Systems Theory(contemporary theories) Key concepts organization is viewed as a managed system management must interact with the environment organizational goals must address effectiveness and efficiency organizations contain a series of subsystems there are many avenues to the same outcome synergies enable the whole to be more than the sum of the parts Contributions recognized the importance of the relationship between the organization and the environment Limitations does not provide specific guidance on the functions of managers 1A-9

Contingency perspective Key concepts situational contingencies influence the strategies, structures, and processes that result in high performance there is more than one way to reach a goal managers may adapt their organizations to the situation Contributions identified major contingencies argued against universal principles of management Limitations not all important contingencies have been identified theory may not be applicable to all managerial issues 1A-10

An Era of Dynamic Engagement New organisational environmets Ethics and social responsibility Globalization Inventing and reinventing org. Cultures and multiculturalism Quality