1. THE EVOLUTION OF THE ORGANIZATION AND MANAGEMENT THEORIES
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THE EVOLUTION OF THE ORGANIZATION AND MANAGEMENT THEORIES
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2. A theory is a coherent group of assumption put forth to explain the relationship between two or more observable facts and to provide a sound basis for predicting future events.
Stoner: pg. 28
Why:
Guide management decision.
Shape our view of organisation.
Make us aware of the business environment.
A source of new idea.
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3. THE EMERGENCE OF M & O THEORIES The Neo-Human Relation Movement
The Contingency
Approach
The System Approach
The Quantitative
School
The Behavioral Sc
School
Classical Management
Theories
1890
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
Protes Movement
(60s – 70s)
Labour Shortage
WW 11( )
Deming Lecture on
Quality in Japan
WW 1( )
IBM PC Introduced)
The Great Depression
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4. TRADITIONAL THEORIES MODIFICATION CONTEMPORARY
EVOLUTION OF ORGANISATION AND MANAGEMENT THEORIES
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5. Traditional/ Classical Theories
Contemporary Approaches
Modifications
Scientific Management
Management Science
Efficient Task Performance
System Approach
Economic Technical Rationality
Subsystem & Environment
Bureaucratic Model
Human Relation
Authority & Structure
Contingency View
Behavourial Science
Administrative Theory
No Best Method
-Situational Factors.
Psychology, Sociology, etc.
Universal Management Principles
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6. Scientific Management
F.W. Taylor (1856 – 1917)
Using time study, broke job into components, design best and quickest method of performing each component.
- Using differential rate system.
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7. Scientific Management
4 Basic Principles:
(i) The development of true science of management – best method for performing job.
(ii) Scientific Selection of workers – skill and task allocation.
(iii) Scientific education and development of worker.
(iv) Intimate, friendly cooperation between management and labour.
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8. CONTRIBUTION OF SCIENTIFIC MANAGEMENT
Modern assembly line
His efficiency technique being adopted by many organisation.
Established job design, scientific selection and development of workers.
Fostered a rational approach to solving problems and laid groundwork for the professionalization of management.
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9. Do not take into account the human and social aspects.
Scientific Management
LIMITATION
Do not take into account the human and social aspects.
Emphasis on Productivity/Profit only.
Treat men like machine
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10. Administrative management Theory by Henry Fayol (1804 – 1925)
1st to systematize organisation.
Using scientific forecasting and proper method of management
Macro Concept
Focus on formal organisation structure that separate basic process of general management.
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11. planning, organising, command, coordination and control.
Administrative management Theory
Management Process
planning, organising, command, coordination and control.
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12. Fayol’s 14 Principles Division of work Authority and Responsibility
Administrative management Theory
Fayol’s 14 Principles
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 of Chain : authority.
Order : orderly place in organisation.
Equity : equity and justice
Stability of tenure of personnel : adaptation
Initiative
Esprit de corps.
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13. BUREAUCRATIC MODEL Max Weber (1864 – 1920)
Stressed the need for a strictly defined hierarchy governed by clearly defined regulations and lines of authority.
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14. RATIONAL-LEGAL AUTHORITY
BUREAUCRATIC MODEL
Organisation – take the form of a Bureaucratic structure.
BUREAUCRATIC MODEL
RATIONAL-LEGAL AUTHORITY
The right to exercise authority based on position.
position with power
compensation : fixed salary
hierarchy of authority
technical competence
governed by rules and regulations
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15. DIMENSIONS OF BUREAUCRACY
BUREAUCRATIC MODEL
DIMENSIONS OF BUREAUCRACY
Division of labour based on functional specialization
A well-defined hierarchy of authority;
A system of rules covering the rights and duties of position
A system of procedures for dealing with work situations;
An impersonality in interpersonal relations.
A system of promotion and selection for employment based on technical competence.
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16. Contribution of Fayol’s and Weber’ Theories
Much of their theories have been in use till today
e.g. - Concept of management skill
- Concept of identifiable principles for effective managerial behaviour
- Made managers aware of the basic kinds of problems in any organisation.
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17. Limitation Appropriate for the past where environment was
relatively stable and predictable.
Today’s environments are more turbulent and impredictable.
Too general for today’s highly complex
organisation and specialization.
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18. Human Relations Movement
Mary Parker Follet - had considered workers as human
Chester Bernard social need
- Psychological need
Individual & Group
Manager and subordinate relation
Early attempt to discover the social and psychological factor that would create effective human relation.
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19. THE HAWTHORNE EXPERIMENTS
Human Relations Movement
- Westerm Electric’s Hawthorne Plant - Chicago
To study relationship between level of lighting in the work-place and workers productivity.
‘Hawthorne effect’
Elton Mayo (1880 – 1949)
The Hawthorne Effect:
The possibility that workers who receive special attention will perform better simply because they received that attention.
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20. Human Relations Movement
Mayo introduced the concept of “Social man” – motivated by social need, on-the-job relationships, and responding more to work group pressure than to management control – was necessary to compliment the old concept of “rational man” motivated by personal economic needs.
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21. Improved classical approach by stressing social needs.
Human Relations Movement
Contribution of H.R.
Improved classical approach by stressing social needs.
Focus on workers – not on techniques. Emphasized management skill rather than technical skill.
Focus on group dynamics rather than individual.
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22. Limitation Assumming satisfied worker : to be more productive workers.
Human Relations Movement
Limitation
Assumming satisfied worker : to be more productive workers.
Social environment – only one of the several factors that influence productivity –
e.g salary level culture structure interest .
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23. The Behavioral Science School
HR developed into BS
Introduced fields like:
Psychology
Sociology
Anthropology
HR: Social man – motivated by desire for form relationships with others.
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24. BS: Argyris, Maslow, McGragor:-
The Behavioral Science School
BS: Argyris, Maslow, McGragor:-
Self-actualizing – a more accurate concept
to explain Human Motivation.
“Complex man”
No two people are exactly alike.
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25. CONSTRIBUTION OF BEHAVIOURAL SCIENCE
The Behavioral Science School
CONSTRIBUTION OF BEHAVIOURAL SCIENCE
Enormous contributions to understanding of individual motivation, group behaviour interpersonel relationship at work and the importance of work to human beings.
Continue to contribute new insights in important areas as leadership, conflict, power, organizational change and communication.
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26. Its potential not fully realized . managers resist suggestion.
The Behavioral Science School
LIMITATIONS
Its potential not fully realized .
managers resist suggestion.
Model, theories and gargon are too
complicated and abstract to practicing
manager.
Difficult to interprete by practicing managers.
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27. MANAGEMENT SCIENCE SCHOOL MANAGEMENT SCIENCE SCHOOL
Quantitative
Operation research
Formed during World War II by British to solve a number of new, complex problem in warfare.
Application of OR in the industry after the war to solve problems related to planning and controlling in Management.
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28. MANAGEMENT SCIENCE SCHOOL
CONTRIBUTIONS
In planning and controlling activities in development of product strategies, human resource development programme, product schedule etc.
LIMITATIONS
Mathematical basis of management is too complicated for practicing manager.
Inadequate in dealing with sociology, psychology at work.
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29. Environment A D B E Sub-systems C System Approach Environment
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30. SYSTEM APPROACH
DEFINITION OF SYSTEM
“A system is defined as an organised, unitary whole composed of two or more interdependent parts, components, or subsystems and delineated by identifiable boundaries from its environmental suprasystem.”
- (Kast + Rosenweig, pg. 103)
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31. THE SYSTEM APPROACH Concepts:- Subsystems Synergy
Open and close systems
System Boundary
Flow
Feedback
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32. THE CONTINGENCY APPROACH
Situational Approach
It depends upon what – in what way
To identify which technique will, in particular situation, under particular circumstances and at a particular time – best contribute to the attainment of goals.
For Examples:
Unskilled workers – work simplification
Skilled workers – job enrichment might be effective.
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33. THE NEO-HUMAN RELATIONS MOVEMENT
Is an Integrative approach that combines a positive view of Human nature with the scientific study of organisation to prescribe low effective managers should act in most circumstances.
It goes beyond contingency theory to propose how management should be out in most circumstance.
eg. Peters & Waterman“ Insearch of Excellence” study
43 “excellently manage” M). Companies.
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34. They had been consistently profitable for over a 20-year period.
Unusually successful inresponding tocustomers needs;
Successful in rewarding work. Environment for their employees.
Met their social and environment obligation effectively.
They are “brilliant on the basics”.
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35. PRINCIPLES World class quality and services
A set of new basics:
World class quality and services
Enhance responsiveness through increased flexibility and continuous
Short cycle innovation and improvement of all company’s products.
Must pursue “informal opportunism” must response to opportunity and challenges quickly as they arise.
2. To recognise people are the main enquire of any company – not the interchargable part of this corporate machine.
(Stone : 49)
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36. Traditional/ Classical Theories
Contemporary Approaches
Modifications
Scientific Management
Management Science
Efficient Task Performance
System Approach
Economic Technical Rationality
Subsystem & Environment
Bureaucratic Model
Human Relation
Authority & Structure
Contingency View
Behavourial Science
Administrative Theory
No Best Method
-Situational Factors.
Psychology, Sociology, etc.
Universal Management Principles
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37. THE END
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38. THANK YOU
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