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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