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Management Thoughts
Management Thoughts
Prof. B. K. Sundaray
A theory that focused on finding the one best way to perform and manage tasks
Main Features
Management is viewed as a systematic network of interrelated functions Functions, principles and skills of management are considered universal Formal education and training is emphasized for developing managerial skills Emphasis is placed on economic efficiency and formal organisation structure People are motivated by economic gains
Scientific Management
Key concepts
Concerned with improving the performance of individual workers (i.e., efficiency) used scientific methods to determine the one best way emphasized study of tasks, selection and training of workers, and cooperation between workers and management
Contributions
improved factory productivity and efficiency introduced scientific analysis to the workplace piece rate system equated worker rewards and performance
Limitations
simplistic motivational assumptions workers viewed as parts of a machine potential for exploitation of labor
Frank Gilbreth Specialized in time and motion studies to determine the most efficient way to perform tasks. Lillian Gilbreth A strong proponent of better working conditions as a means of improving efficiency and productivity. Favored standard days with scheduled lunch breaks and rest periods for workers. Henry Gantt Developed other techniques, including the Gantt chart, to improve working efficiency through planning/scheduling. Harrington Emerson Advocated job specialization in both managerial and operating jobs.
Administrative Management
Key concepts
Focuses on managing the whole organization rather than individuals. executives formulate the organization s purpose, secure employees, and maintain communications managers must respond to changing developments
Contributions
viewed management as a profession that can be trained and developed emphasized the broad policy aspects of top-level managers offered universal managerial prescriptions
Limitations
universal prescriptions need qualifications for contingencies
Division of work Authority Discipline Unity of command Unity of direction Subordination of individual interest to the general interest Remuneration
Centralization Scalar chain Order Equity Stability and tenure Initiative Esprit de corps
Bureaucratic Management
Focuses on the overall organizational system. Bureaucratic management is based upon:
Firm rules Policies and procedures A fixed hierarchy A clear division of labor
Bureaucratic Management
Max Weber (1864 1920)
A German sociologist and historian who envisioned a system of management that would be based upon impersonal and rational behavior the approach to management now referred to as bureaucracy.
Division of labor Hierarchy of authority Rules and procedures Impersonality Employee selection and promotion
Classical Perspective
Focused on rational behavior
Behavioral Perspective
Acknowledged the importance of human behavior
Management Science
The study of complex systems of people, money, equipment, and procedures, with the goal of improving their effectiveness
Evolution:
Emerged during World War II to help the Allied forces manage logistical problems. Focuses on decision making, economic effectiveness, mathematical models, and the use of computers to solve quantitative problems. An approach to management that uses mathematics, statistics, and other quantitative techniques for management decision making to maximize the use of organizational resources. Contributions: Developed sophisticated quantitative techniques to assist in decision making. Application of models has increased our awareness and understanding of complex processes and situations. Has been useful in the planning and controlling processes. Limitations: Quantitative management cannot fully explain or predict the behavior of people in organizations. Mathematical sophistication may come at the expense of other managerial skills. Quantitative models may require unrealistic or unfounded assumptions, limiting their general applicability.
Systems Approach
Views the organization as a system of interrelated parts that function in a holistic way to achieve a common purpose. Systems theory concepts that affect management thinking:
Open and closed systems Subsystems Synergy Entropy
Inputs
material inputs, human inputs, financial inputs, and information inputs
Transformation process
technology, operating systems, administrative systems, and control systems
Outputs
products/services, profits/losses, employee behaviors, and information outputs
Feedback
Contingency Theory
Suggests that each organization is unique. The appropriate managerial behavior for managing an organization depends (is contingent) on the current situation in the organization. States that there is no one best way to manage an organization.
Because what works for one organization may not work for another Situational characteristics (contingencies) differ Managers need to understand the key contingencies that determine the most effective management practices in a given situation
Important Contingencies
Solution or Action A
Solution or Action B
Solution or Action C
Modern Thoughts
Peter F. Drucker
Management is an important and life giving element in an organisation Believed in practical experience in management Introduced Management by Objective (MBO) Identified three basic aspect of organising, namely activity analysis, Decision analysis and Relation analysis.
Advocates trusting employees and making them feel like an integral part of the organization. Based on the assumption that once a trusting relationship with workers is established, production will increase.