Management and Organization Management and Organization Management philosophies and organization forms change over time to meet new needs Some ideas and practices from the past are still relevant and applicable to management today

SCIENTIFIC MANAGEMENT F. W. Taylor—Father of scientific management Did most of his work at Midvale & Bethlehem Steel Companies in Pennsylvania Studied on workers employed to load pig iron freight cars

Scientific task planning Time and motion studies Standardisation Key Concepts of Scientific Management Scientific task planning Time and motion studies Standardisation Differential piece rate system Functional foremanship

General Administrative Theory/The management process school Henri Fayol

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Hawthorne Studies Started in 1895 Hawthorne Studies Started in 1895 Four experimental & three control groups Five different tests Test pointed to factors other than illumination for productivity 1st Relay Assembly Test Room experiment, was controversial, test lasted 6 years Interpretation, money not cause of increased output Factor that increased output, Human Relations

Human relations School Also called neo-classical By Elton Mayo revealed the importance of social norms as determinants of individual work behavior changed the dominant view that employees were no different from any other machines

known as the ‘Hawthorne Studies’ because were conducted at Western Electric’s Hawthorne plant near Chicago. Following experiments were conducted Illumination experiment Relay assembly test room experiment

Bank wiring experiments Also conducted Mass interview Personnel counseling Psychological testing

The most important findings of the Hawthorne studies : Organisation is a social system. The human factor is the most important element in organisations. Behavior and sentiments are closely related and the group influences affect individual behavior in a significant way.

Group standards are highly effective in establishing individual worker output. Money is not so important in determining output when compared to group standards, group sentiments and security. Happy employees are productive workers.

Peter F. Drucker His chief contributions include: Nature of Management Management is a dynamic, life-giving element in an organisation. Management is a distinct, discipline and a social function. Managers should be creative and innovative in order to produce results. He opined that management is a great profession full of challenges.

Manager’s job-to set meaningful objectives in eight key areas of business Market standing Innovation Productivity Physical & financial resources Profitability Manager performance & development Worker performance & social responsibility

MBO Decentralization Structure Decision-making Executive development

Recent Trends Systems Theory Contingency View Total Quality Management Recent Trends Systems Theory Contingency View Total Quality Management (TQM) Learning organization

Systems View of Organizations

Elements of a Learning Organization Elements of a Learning Organization Team-Based Structure Learning Organization Empowered Employees Open Information Exhibit 2.7

Learning Organizations and Knowledge Management learning organization - one that has developed the capacity to continuously learn, adapt, and change create learning capabilities throughout the organization understanding that knowledge is an important resource

References Management-Robbins & Coulter Management-Stoner & Freemen Management-V. S. P. Rao Management-Daft