ppm 12.ppt
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MANAGEMENT THOUGHTS
AND THINKERS
PRESENTED BY:
Abhishek Singh(1)
Kumud segdel(27)Kunal Kishore(28)Sakshi Chaudhary(40)Siddharth Arya(47)subhadeep sarkar(48)
Yamini Dixit(51)
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WHY STUDY MANAGEMENT THEORY?
Theories are perspectives withwhich people make sense of theirworld experiences.
Theory providesA stable focus
To communicate efficiently
To keep learning
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EVOLUTION OF MANAGEMENT THEORY
The Scientific Management School
Classical Organization Theory School
Neo Classical Theory System Approach
Contingency Approach
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Definition: A management approach formulated byFrederick W. Taylor and others between 1890 and1930, that sought to determine scientifically the best
methods for performing any task, and for selecting,training, and motivating workers.
Father of scientific management:
Frederick W. Taylor
THE SCIENTIFIC MANAGEMENTTHEORY
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Federick Winslow Taylor
Science, not rule of thumb.
Harmony, not discord.
Co-operation, notindividualism.
Development of workers totheir greatest efficiency andprosperity.
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Functional foremanship
Standardization of work
Simplification of work Fatigue study
Method study
Time study
Motion study Differential piece wage system
Mental revolution
Scientific techniques of Taylor
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Henry L. Gantt
Emphasis on themotivational factor
He originated a chartingsystem for productionscheduling, known asGantt Chart.
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Frank and Lillian Gilbreths
Emphasis on the individualworkers welfare and helpthem to reach their fullpotential as human workers.
Main contributions:
Motion studyTime studyThree positional promotion
plan
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Classical Organisation Theory
This theory grew out of the need to find guidelinesfor managing such complex organizations asfactories.
4 main thinkers contributing to this theory:
Henri Fayol
Max Weber
Mary Parker Follett
Chester I. Barnard
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Henry Fayol(1841-1925)
He is hailed as the founder of the classicalmanagement theory.
He was interested in total organization and focused
on management. He considered management as a skill that could be
taught once its underlying principles wereunderstood.
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Fayols 14 Principles of Management
Division of labour
Authority
Discipline
Unity of Command
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Contd..
Unity of direction
Subordination of individual interest to the
Common Good
Remuneration
Centralization
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Contd..
The Hierarchy
Order
Equity
Stability of staff
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Contd..
Initiative
Esprit de Corps
(in union there is strength)
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Max Weber(1864-1920)
He developed a theory of bureaucratic management
He stressed the need for a strictly defined hierarchygoverned by clearly defined regulations and lines of
authority. His bureaucratic management model clearly
advanced the formation of huge corporations such asFord.
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Mary Parker Follett(1868-1933)
She introduced many newelements in theframework of classicaltheory.
She focussed on the areaof human relations andorganizational structure.
She was a great believer inthe power of the group.
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Contd..
Folletts Holistic model of control took into accountnot just individuals and groups, but the effects ofsuch environmental factors as politics, economicsand biology.
Follett paved the way for management theory toinclude a broader set of relationships.
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Chester I. Barnard(1886-1961)
According to Barnard, peoplecome together in formalorganizations to achieve goalsthey cannot accomplish
working alone.
He stressed on the satisfactionof individual needs along withorganizations goals.
Barnard recognized theimportance and universality ofinformal organization.
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Contd..
According to Barnard, managers should understandan employees zone of indifference to maintain a
balance between individual and organizationalpurposes.
He stressed a lot on the work of executivemanagers.
He described individual worker as the basic
strategic factor in an organization.
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Neo Classical Theory
Behavioral Science approach
Human Relations Movement
Hawthorne Experiments
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Contd..
In 1920s and 1930s the incompleteness ofadministrative and scientific movement was felt. The
importance of man behind the machine and the socialaspects of workers itself was felt. The humanrelationship theory or the Neo classical theory tried tocompensate for the deficiencies of the classical theory
modifying it with insights from behavioural sciencelike psychology, sociology and anthropology.
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Human Relations Movements
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Hawthrone Experiments
Hawthorne Experiment during 1924 to 1933by Elton Mayo and his Harvard Colleagues was anextension of this theory which was conducted in
Western electrics Hawthorne plant near Chicago.
Hawthorne Effect:The possibility that individualssingled out for a study may improve their
Performance simply because of the added attentionthey receive from the researchers, rather than
because of any specific factors being tested.
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Pros
Man is not motivated by money alone, a healthysocial climate is necessary.
Groups have more influence on workers rather thanthe organisation rules.
Friendly supervision ensures good results, bettermorale.
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Cons
Mayo derived this conclusion on the basis of a smallset of employees.
The experiments lacked a scientific
basis like choice of employees, work the workingenvironment.
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Behavioural Sciences Approach
The behavioural science approach came as naturalcontinuation from the Hawthorne experiments.
Behavioural science approach included psychology,sociology, economics and anthropology. AbrahamMaslow was the pioneer who developed hierarchy ofhuman needs later many scientists came with their
opinions.
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Basic Philosophy of behavioural scienceapproach
People do not inherently dislike work, if they havehelped establish objectives, they will want to achievethem.
Most people can exercise a great deal more selfdirection, self control and creativity then required intheir current job.
The managers basis job is to use the untappedhuman potential in the service of the organisation.
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Contd..
Most employees have five basic needs namelyphysiological, safety, social, self esteem and self-
actualisation.
First three of these are low-order needs and the lasttwo are high order needs help to in leash the latent
talent and creative skill of the employees.
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Systems Approach
System : A system is defined by different elementsthat are correlated and its structure always has aspecific order.
A simple reunion of elements, without a way oforganizing them, does not represent a system.
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System Approach : The System Approach tomanagement views the organization as a unified,purposeful system composed of interrelated parts.
System theory tells us that the activity of anysegment of an organization affects, in varing degrees,the activity of every other segment.
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Key Concept of System Approach
SUBSYSTEMS
SYNERGY
OPEN AND CLOSED SYSTEMS
SYSTEM BOUNDARY
FEEDBACK
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The Flow and Feedback in an Open System
External Environment
Feedback
Input(Resources)HumanCapitalLand
BuildingTechnologyInformation
TransformationOr
ConversionProcess
OutputGoods
ServicesOther
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Contingency Approach
What is Contingency ?
A Contingency is an event that might happen.
It is not certain that it will happen, but there ispossibility that it might.
Good managers need to consider contingencies whenmaking plan.
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Contingency Approach
Contingency Theory :
It all depends on the situation.
Sometimes called the Situational Approach.
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Contingency Approach
States that there is no one best way to manageorganization.
Because what works for one organization may not
work for another. Situational characteristics (Contingencies) differ.
Manager need to understand the key contingenciesthat determine the most effective management
practices in a given situation.
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Contd
It is the managers task to identify which techniquewill
In a particular situation
Under particular circumstances
And at a particular time
Best contribute to attainment of managementgoals.
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How it is different
The earlier approaches (classical, behavioural etc)are considered universal perspective because theytried to identify the one best way to manageorganisations.
In contrast, contingency theory suggests universaltheories cannot be applied to organisations
because each organisation is unique.
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Contd
Classicalists completely ignored the environment inwhich the business operates. They Considered
environment has no effect on organization.
But, contingency theory considered environment as amajor factor of organization structure, operations,
and behavior of members.
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Features of Contingency Approach
Management is entirely situational.
There is no best way of doing anything.
Manager needs to adapt himself to thecircumstances.
It is a kind of if & then approach.
It is a practically suited.
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Contd
Management policies and procedures shouldrespond to environment.
Managers should understand that there is no bestway of managing. It dispels the universal validity ofprinciples.
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Limitations
Complex
Reactive but not Proactive
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Thank you
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