Management approaches have evolved over time from a focus on efficiency and scientific principles to considering human and behavioral factors as well as external environments. Early approaches emphasized division of labor and specialization while more recent approaches examine quantitative analysis, systems thinking, contingencies, and organizational behavior to understand how both internal and external factors influence management practices. Contemporary views recognize there is no single best approach and managers must consider situational variables to determine the most effective strategies.
Management approaches have evolved over time from a focus on efficiency and scientific principles to considering human and behavioral factors as well as external environments. Early approaches emphasized division of labor and specialization while more recent approaches examine quantitative analysis, systems thinking, contingencies, and organizational behavior to understand how both internal and external factors influence management practices. Contemporary views recognize there is no single best approach and managers must consider situational variables to determine the most effective strategies.
Management approaches have evolved over time from a focus on efficiency and scientific principles to considering human and behavioral factors as well as external environments. Early approaches emphasized division of labor and specialization while more recent approaches examine quantitative analysis, systems thinking, contingencies, and organizational behavior to understand how both internal and external factors influence management practices. Contemporary views recognize there is no single best approach and managers must consider situational variables to determine the most effective strategies.
Management approaches have evolved over time from a focus on efficiency and scientific principles to considering human and behavioral factors as well as external environments. Early approaches emphasized division of labor and specialization while more recent approaches examine quantitative analysis, systems thinking, contingencies, and organizational behavior to understand how both internal and external factors influence management practices. Contemporary views recognize there is no single best approach and managers must consider situational variables to determine the most effective strategies.
Historical Background Organized endeavor practiced since long involving Plan, Organize, Lead, Direct, Impose
–Dates back when people attempted to
accomplish goals working together
–Pyramids / Great Wall / Taj Mahal
–Military Organization found managing
larger groups with techniques of leadership Cont Adam Smith 1776 – The Wealth of Nation brought concept of Division of Labor for increased productivity by enhanced skill saving time –Breakdown of Jobs with Job specialization
Industrial Revolution during late 18th century
led substitute to Machine from Man –Economic way to manufacturing –Mass production Scientific Management Studies during early 20th century with work of Frederick Taylor , emphasized thinking with rationality to make organization and workers efficient
Taylor’s “Principles of Scientific
Management” in 1911 urged to create a mental change among workers and managers by defining clear guidelines of improving production efficiency – “one best way” for doing each job cont Taylor’s Principles: – Develop science of each element of individual’s work – Scientifically select and then train to develop the worker – Cooperate with workers to ensure all work is done as developed – Divide work and responsibility equally between management and workers Frank and Lillian Gilbreths studied to eliminate inefficient hand and body motions using motion pictures of hand and body motions and invented a device (microchronometer) recording worker’s motions and the amount of time spent in each motion Taylor and Gilbreths technique of improving efficiency are used: – Analyzing basic task of work – Use time and motion study – Eliminate wasted motions – Hire best qualified worker for the job – Design incentive system based on output General Administrative Theory Henri Fayol from the perspective of entire organization constituting good management practice developed 14 principles of management: – Division of work -specialization increase output making efficient – Authority –managers must be able to give orders – Discipline –employees must obey and respect rules of organization – Unity of command - receive orders from one superior – Unity of direction – single plan to guide managers and workers – Subordination of individual interests to general interest – Remuneration - Fair wage for the service – Centralization – degree to which subordinates are involved in decision making – Scalar chain – the line of authority from top to lowest rank – Order – people and materials in the right place at the right time – Equity – kind and fair to subordinates – Stability of tenure – replacement are available to fill vacancies – Initiative – high levels of effort to carry out plans – Team spirit – to build harmony and unity in the organization Bureaucracy Max Weber in early 1900 developed theory of authority structures and relations called bureaucracy Bureaucracy – a form of organization; – division of labor (jobs broken down into simple defined tasks) – clearly defined hierarchy (positions with clear chain of command) – Detailed rules and regulations (standard operating procedures) – Impersonal relationships (Uniform application of rules) – Career orientation (Managers as career professionals) – Formal selection (selected for jobs on technical qualifications) These days this model is regarded hindrance to individual’s creativity, and organizations’ limit to respond dynamic environment However some of the bureaucratic mechanisms even in flexible organizations of creative professionals as Infosys, Cisco, are felt necessary to ensure resource efficiency and effectivity Quantitative Approach Use of quantitative techniques to improve decision making as : –Applying statistics –Optimization models –Information models –Computer simulations –Linear programming to improve resource allocation –Critical path scheduling analysis Cont One of the area where Quantitative techniques used was Total Quality Management initiated by quality experts as Edwards Deming and Joseph Juran during 50s Quality became major thrust during 80s and 90s both in business and public agencies when Japanese organizations started to outsmart US organizations Total Quality Management (TQM) TQM –a philosophy to continual improvement responding to customer needs and expectation Customers means all who interacts with organization products and service internally and externally Continuous improvement is possible with measurements requiring statistical techniques measuring every critical variables in work process Measurements compared against standards to correct TQM a great departure from keeping costs low to increase productivity Behavioral Approach Management is to get works done with people Organizational Behavior has been the focus of research on actions of people –motivating, –leading, –building trust and team, –managing conflict Early advocates of OB approach led foundation for selection, motivation, team building – –Robert Owen (Late 1700) - improving labor and work place –Hugo Munsterberg (Early 1900) –scientific study of people at work, suggested psychological tests for selection, learning for training, human behavior for motivation Cont – Mary Parker Follet (Early 1900) – perspective of individual and group behavior, group ethics, proposed people oriented ideas – Chester Barnard (1930s) – organization as social system requiring cooperation, communicate and stimulate, organization as open system – Great Depression of 1930 forced Managers to examine their job rather than production with least cost in materials and labor – Recently group effectiveness became key to survival as Managers to think more on Motivation, Group behavior and leadership Contemporary Approach Coming to 60s researchers looked external environment outside organization as system approach and contingency approach departing from early approach of internal concern of managers in the organization System theory as a set of interrelated and interdependent parts arranged in a way to have result of a unified whole – Closed Systems do not interact with environment – Open systems –in organization takes resources as inputs from the environment and transform as process into output that are distributed into environment Cont System Approach envision Organizations made up of interdependent factors as individual, groups, attitudes, motives, formal structure, goals, authority, status, interactions and so on as a system ensuring all these are working to unified goals Systems approach implies that decisions / action in one area affect others in the organization System Approach Recognize that organizations are not self-contained but they rely on environment for inputs and outlets for output Contingency Approach Early theorists relied on principles to be universally applicable It is realized changing situation require different techniques and approaches Contingency approach is situational as organizations are different requiring different ways of managing facing different situations No simplistic rule to follow for managers Even units within organization differs in size, goals, activities Cont Situational or contingency variables may be numerous but most widely used are: – Size of Organization differs with problem of coordination – Structures, leadership style and control system of routine technologies differ from customized technologies – Best in stable environment may be inappropriate in rapidly changing unpredictable environment – Individual differences for growth, autonomy, expectations matters for job design, leadership and motivation Class exercise Many management theories/philosophies exist in business circles today, which theory would you adopt as a business manager/owner in your organization, justify your perspective and give reasons why????