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Management School of Thoughts
Management School of Thoughts
• Critiques of Taylorism
• Taylor's Scientific Management Theory promotes the idea that there is "one
right way" to do something. As such, it is at odds with current approaches such
as MBO (Management By Objectives), Continuous
Improvement initiatives, BPR (Business Process Reengineering), and other
tools like them. These promote individual responsibility, and seek to push
decision making through all levels of the organization.
3. FUNCTIONAL & ADMINISTRATIVE THEORY BY HENRY FEYOL (1910)
• Henri Fayol (29 July 1841 – 19 November 1925) was a French mining engineer,
mining executive, author and director of mines who developed general theory
of business administration that is often called Fayolism.
• Fayol's work was one of the first comprehensive statements of a general
theory of management.[ He proposed that there were five primary functions of
management(POCCC) and fourteen principles of management.
• Functions of management: five primary functions were identified:
– Planning
– Organizing
– Staffing
– Directing
– Controlling
Principles of management:
• Division of work - In practice, employees are specialized in different areas and they
have different skills. Different levels of expertise can be distinguished within the
knowledge areas (from generalist to specialist).
• Authority & Responsibility - According to Henri Fayol, the accompanying power or
authority gives the management the right to give orders to the subordinates.
• Discipline - This principle is about obedience. It is often a part of the core values of a
mission and vision in the form of good conduct and respectful interactions.
• Unity of command - Every employee should receive orders from only one superior or
behalf of the superior.
• Unity of direction - Each group of organisational activities that have the same objective
should be directed by one manager using one plan for achievement of one common
goal.
• Subordination of Individual Interest to General Interest - The interests of any one
employee or group of employees should not take precedence over the interests of the
organisation as a whole.
• Remuneration - All Workers must be paid a fair wage for their services.
• Centralization and Decentralization - This refers to the degree to which subordinates are
involved in decision making.
• Scalar chain - The line of authority from top management to the lowest ranks represents
the scalar chain. Communications should follow this chain. However if someone needs to
communicate some other person in emergency he/she might use "Gang Plank".
• Order - this principle is concerned with systematic arrangement of men, machine, material.
• Equity - All the employees in the organization must be treated equally with respect to the
justice and kindliness.
• Stability of tenure of personnel - High employee turnover is inefficient. Management
should provide orderly personnel planning and ensure that replacements are available to
fill vacancies.
• Initiative - Employees who are allowed to originate and carry out plans will exert high
levels of effort.
• Esprit de corps - Promoting team spirit will build harmony and unity within the
organization
• DIVISION OF INDUSTRIAL ACTIVITIES (SIX)
1. TECHNICAL
2. COMMERCIAL
3. FINANCIAL
4. ACCOUNTING
5. MANAGERIAL
6. SECURITY
• MANAGERIAL SKILLS AND QUALITIES (SIX)
1. PHYSICAL
2. MENTAL
3. EDUCATIONAL
4. MORAL
5. TECHNICAL
6. EXPERIENCE
• KNOWN AS:
1. FATHER OF MODERN MANAGEMENT
2.FATHER OF PRINCIPLES OF MANAGEMENT
3.FRANCIS BACON OF MANAGEMENT
4.FATHER OF ADMINISTRATIVE MANAGEMENT
2.The Neo-Classical Approach
• Human relations movement
– According to Human Relations Approach, management is the
Study of behaviour of people at work.
– This approach had its origin in a series of experiments
conducted by Professor Elton Mayo and his associates at the
Harvard School of Business at the Western Electric
Company’s Hawthorne Works, near Chicago.
– These studies brought out for the first time the important
relationships between social factors and productivity.
– Elton mayo is known as father of human relation
management
• Contribution of Elton Mayo to Management Thought:
– George Elton Mayo (1880-1949) was a professor at the
Harvard Business School. He published the books :-
– ‘Human Problems of an Industrial Civilization’ (1933),
– ‘Social problems of an Industrial Civilization’ (1945),
– ‘Training for Human Relations’ (1949) etc.
– He conducted the famous ‘Hawthorne Experiments’ at the
Hawthorne plant of the Western Electric Company in the USA
during 1927-32 with his associates.
• Hawthorne Experiments: 1927-1932
1. Illumination Experiments:
From these experiments, it was revealed that productivity could
be increased not only by improving the working environment,
but also through informal social relations among the members of
the working group.
2. Relay Assembly Test Room Experiment:
Productivity and morale were maintained even if the im-
provements in the working conditions were withdrawn. The
researchers concluded that socio- psychological factors such as
the feelings of being important, recognition, participation, in-
formal work group, non-directive supervision etc. held the key
for higher productivity.
3. Mass Interviewing Programme:
A large number of workers were interviewed to know their
perceptions and orientation on the working life. The results again
confirmed the importance of informal relation, social and
psychological needs and their impact on the behaviour of the
workers.
4. Bank Wiring Observation Room Experiment:
A group of 14 workers was observed with regard to their work
behaviour. The observation revealed the informal production
norms set by the workers and the existence of informal relations
in the group.
• BEHAVIOURAL SCIENCE MOVEMENT BY A. MASLOW, McGREGOR
– Maslow’s theory of human needs
• A need is a physiological or psychological deficiency a person
feels compelled to satisfy
• Need levels:
– Physiological
– Safety D- needs (deficiency)
– Social
– Esteem
– Self-actualization B-needs (Growth needs)
• BEHAVIOURAL SCIENCE MOVEMENT BY A. MASLOW, McGREGOR
– Maslow’s theory of human needs
• Deficit principle
– A satisfied need is not a motivator of behavior
• Progression principle
– A need becomes a motivator once the preceding lower-
level need is satisfied
Maslow’s hierarchy of human needs
• Douglas McGregor (1906-1964):
– Douglas Murray McGregor (1906 – 1 October 1964) was
a management professor at the MIT Sloan School of
Management. He also taught at the Indian Institute of
Management Calcutta.
– His 1960 book The Human Side of Enterprise had a profound
influence on education practices.
– In the book The Human Side of Enterprise, McGregor identified
an approach of creating an environment within which
employees are motivated via authoritative direction and
control or integration and self-control, which he called theory
X and theory Y
Theory X Assumptions:
• The average human being has an inherent dislike of work and will avoid
it if he can.
• Because of their dislike for work, most people must be controlled and
threatened before they will work hard enough.
• The average human prefers to be directed, dislikes responsibility, is
unambiguous, and desires security above everything.
• These assumptions lie behind most organizational principles today, and
give rise both to "tough" management with punishments and tight
controls, and "soft" management which aims at harmony at work.
• Theory X managers do not give their staff this opportunity so that the
employees behave in the expected fashion.
Theory Y Assumptions
• The expenditure of physical and mental effort in work is as natural as
play or rest..
• People will exercise self-direction if they are committed to the objectives
(they are NOT lazy).
• Commitment to objectives is a function of the rewards associated with
their achievement.
• People learn to accept and seek responsibility.
• Creativity, ingenuity, and imagination are widely distributed among the
population. People are capable of using these abilities to solve an
organizational problem.
• People have potential.
Comparison of Theory X and Theory Y
3.THE MODERN APPROACH
System Approach of Management
• The word system is taken from a Greek word which means to bring
together or combine.
• Ludwig Von Bertalanffy is called as Father of Systems approach.
• According to Ludwig von Bertalanffy,
– “In order to understand an organized whole, we must know both the parts
as well as the relations between them.”
• Kenneth E. Boulding-he was co-founder of general systems
theory
• Components of Systems Theory of Management-six
1. Sub-System:
2. Synergy: Synergy defines relationships amongst all parts of the organisation .
3. Open and Closed Systems:
4. System Boundary(which separate it from environment)
5. Flow: movement of inputs (men, material, money, machine etc.) into the
system from the environment, their transformation into outputs (goods and
services) and supply of outputs to the environment.
6. Feedback: knowing whether or not output is accepted by the environment.
• Contingency theory of management
– Contingency theory is a class of behavioral theory that claims
that there is no best way to organize a corporation, to lead a
company, or to make decisions. Instead, the optimal course of
action for organizational effectiveness is contingent
(dependent) upon the internal and external situation. Several
contingency approaches were developed concurrently in the
late 1960s.
– There could not be "one best way" for leadership or
organization.
• Gareth Morgan in his book Images of Organization describes the
main ideas underlying contingency in a nutshell:
– Organizations are open systems that need careful management to
satisfy and balance internal needs and to adapt to environmental
circumstances
– There is no one best way of organizing. The appropriate form
depends on the kind of task or environment one is dealing with.
– Management must be concerned, above all else, with achieving
alignments and good fits
– Different types or species of organizations are needed in different
types of environments
• Fred Fiedler's- contingency model focused on a contingency model
of leadership effectiveness. This model contains the relationship
between leadership style and the favorableness of the situation.
Situational favorableness was described by Fiedler in terms of
three empirically derived dimensions:-
1. The leader-member relationship, which in the most important
variable in determining the situation's favorableness
2. The degree of task structure, which is the second most
important input into the favorableness of the situation
3. The leader's position power obtained through formal authority,
which is the third most important dimension of the situation
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