1. The Evolution and Theories of Management

2. Introduction To Theory  Theory is known as body of principles as in mathematics they are known as theorems.  As Mathematical theorems which explains certain phenomena and tries to give a clear, systematic view of the subject, on the same lines management theories clarify different concepts of management in a clear and systematical manner. These theories makes management teachable.

3.  The main objectives of management theory is to help to improve the practice and utility of management. The art and quality of management can only be improved by knowledge and understanding of theory.  One can study the evolution of management by dividing the theories of management into three stages.

4. The Evolution of Management Thought  A great deal of management knowledge comes from the autobiographies and memoirs of people who practiced management.  Many individuals whose interest in management was or is strictly scientific also have contributed knowledge to the field.  Management professors, psychologists, sociologists, and anthropologists consider management to be a social phenomenon and managers to be an important social resource.  Numerous other professions such as mathematics, accounting, economics, law, political science, engineering, and philosophy also have contributed to the understanding of management.

5.  With so many individuals with different purposes and such diverse fields of study contributing to understanding, we face a problem  The knowledge must be organized so that it becomes meaningful and useful.

6. Approaches To Management According to the schools of Management thought the growth of modern management techniques began with the industrial revolution in England during the 18 th and 19 th centuries. Many important inventions has led the production on large scale and introduction of division of labour.

7. Cont’d  There was a great need of persons who could manage big industrial enterprises.  The above development led to the emergence to different schools of thought of management. Harold Koontze, mgt writer, call the resulting arrary “ the management theory jungle”

8. Schools of Management thoughts  Classical theory 1.Bureaucracy 2.Scientific Management approach 3.Management Process or Administrative Management  Neo-Classical theory or Human relations Approach  The modern management theories 1.Quantitative or Management Science Approach 2.Systems approach 3.Contingency Approach

9. Classical Theory It signifies the beginning of the systematic study of management organization. The classical writers thought of the organization in terms of its purpose and formal structure. Emphasis on the planning of work, the technical requirements of the organization, Principles of management, and the assumption of rational and logical behaviour.

10. The Classical Approach The classical approach to management can be better understood by examining it from three perspectives. These perspectives are:  Max Weber’s Ideal Bureaucracy  Frederick W. Taylor’ scientific management: The practices introduced by to accomplish the management job. Taylor advocated the use of scientific procedures to find the "one best way" to do a job.  Fayol’s Administrative Management

11. Bureaucratic Model by Max Webber in 1900  The BM was introduced by Max Webber who was a German sociologist, was the chief advocator of the Bureaucratic model.  Bureaucratic theory is based on rigours rules and regulation without scope for innovation

12. Main features  Rules and Regulations  Hierarchy of Authority  Technical Competence  Division of Work  Record keeping  Impersonal Relations

13. Scientific Management:  Fredrick Winslow Taylor (F.W. Taylor) was the father of scientific management. He recognized and emphasized the need for adopting a scientific approach to the task of managing an enterprise. He started his career as a ordinary worker and then become the operation manager of that very organisation.

14. During his study in that company he felt that:  The industrial resources are not being fully utilized  Most of the business houses are being managed by the rule of thumb.  There is no proper division of responsibilities between the workers and management  There is no scientific efforts had been made to determine exact nature of the work to be done and the best way of doing that

15. F.W. Taylor’s contribution has broadly two dimensions 1.Mechanical side Here the Taylor introduced time and motion studies, standardized of tools, methods and working conditions, differential piece rate for the payment of wages etc. 2.Philosophical side He tried to develop the management based on scientific lines, which demands a proper understanding of Taylor’s philosophy.

16. Principles of Scientific Management 1.Principle of replacement of old rule of thumb method. Emphasis on scientific task planning. 2.Principle of scientific selection and training of workers 3.Principle of co-operation between labour and management 4.Principle of maximum output. 5.Principle of equal division of responsibility

17. Fayol’s Administrative Management  Division of Industrial Activities Technical (relating to production) Commercial (buying, selling and exchange) Commercial (buying, selling and exchange) Financial (search for capital and its optimum use) Financial (search for capital and its optimum use) Security (protection of property and persons) Security (protection of property and persons) Accounting (preparation of various statements, accounts) Accounting (preparation of various statements, accounts) Managerial (planning, org, command, co-ordination and control Managerial (planning, org, command, co-ordination and control  Qualities of an Effective Manager  Functions of management  Principles of Management

18. Neo Classical Theory (1930-1950)  During this period, the human relations made very significant contributions to the management thought. Elton Mayo’s “Hawthorne Experiments conducted at Western Electric Company between 1927-1932 are worth mentioning in this connection.

19. Human Relation Approach  The term human relations refers to the manner in which managers interact with subordinates. To develop good human relations, followers of this approach believe, managers must know why their subordinates behave as they do and what psychological and social factors influence them.  Students of human relations brought to the attention of management the important role individuals play in determining the success or failure of an organization. They tried to show how the process and functions of management are affected by differences in individual behavior and the influence of groups in the workplace. Thus, while scientific management concentrated on the physical environment of the job, human relations concentrated on the social environment.

20. Elton Mayo’s “Hawthorne Experiments  Illumination Experiments  Relay Assembly Test Group  Interviewing Programme  The Bank Wiring Observation Room Experiment

21. Behavioural Science Approach This study was carried out by behavioual scientists who were trained in social sciences like psychology, sociology and anthropology. They began to study people at work. They had advanced training in applying the scientific approach to the study of human behavior. These individuals are known as behavioral scientists, and their approach is considered to be distinct from the human relations approach.

22. Assumptions  It is based on social and psychological aspects of control and self development.  Management attitude towards human behavior should be positive.  Individual behavior is closely linked with the behavior of the groups to which he belongs.

23. Features  Individual differ in terms of their attitude, perception and value system  Employees working in an organization have their needs and goals which may differ from organization‘s needs and goals.  Informal leadership, rather than authority of officer/supervisors is more important for setting and enforcing group standards of performers.  Most of the employees by their nature enjoy work and are motivated by self-forces like one’s perception, attitudes, habits and socio-cultural environment also shape behavior.

24. contribution  Development of need hierarchy to explain human behaviour and the dynamics of motivation process.  Douglas McGregor’s theory of X and Theory Y  Frederick Herzberg developed a two-factor theory of motivation.  Chester Barnard’s Social Systems Approach

25.  The behavioural sciences approaches gives emphasis on increasing productivity through motivation, leadership, communication, participative management and group dynamics.

26. Difference Between Human Relations Approach Behavioural sciences Approach Emphasis on the individual, his needs and behavior Stressed upon groups and group behavior

27. The management science approach  The management science approach is in one sense a modern version of the early emphasis on the "management of work" by those interested in scientific management. Its key feature is the use of mathematics and statistics to aid in resolving production and operations problems. Thus, the approach focuses on solving technical rather than human behavior problems. The computer has been of tremendous value to this approach because it has enabled analyses of problems that would otherwise be too complex.

28. Quantitative school of Management  This approach or school used scientific tools for providing a quantitative base for managerial decisions which include:  Linear programming  Critical Path Method (CPM)  Programme Review Technique (PERT)  Break Even Analysis, Return on Investment

29.  In fact this approach used mathematical formulas for finding solutions to the problems that was previously not much in practice.

30. The Systems Approach  the systems approach, stresses that organizations must be viewed as systems with each part linked to every other part.

31. the contingency approach  the contingency approach, stresses that the correctness of a managerial practice is contingent on how it fits the particular situation to which it is applied; in other words, it "depends on the situation.