BUSINESS ORGANIZATION AND MANAGEMENT

MANAGEMENT THOUGHTS

MANAGEMENT THOUGHTS
MATHROUGH NAGEMENT THOUGHTS HAS PASSED VARIOUS STAGES TO REACH ITS PRESENT LEVEL FOR THE PURPOSE OF STUDY IT IS DIVIDED INTO THREE STAGES

STAGES IN MANAGEMENT THOUGHT

1.

THE CLASSICAL THEORY OF MANAGEMENT

a) BUREACRATIC MODEL MAX WEBBER b) SCIENTIFIC MANAGEMENT FW TAYLOR c) PROCESS MANAGEMENT HENRY FAYOL

STAGES IN MANAGEMENT THOUGHT

2.

NEO CLASSICAL THEORY

a) HUMAN RELATIONS MOVEMENT ELTON MAYO b) BEHAVIOURAL SCIENCE MOVEMENT A MASLOW & McGREGOR

STAGES IN MANAGEMENT THOUGHT

3 MODERN MANAGEMENT THEORIES
a) QUANTITATIVE APPROACH TAYLOR b) SYSTEMS APPROACH BOULDING, JOHNSON c) CONTINGENCY APPROACH LORSCH, LAWRENCE

CLASSICAL THEORY OF MANAGEMENT

IT WAS ONLY IN THE SECOND HALF OF 18TH CENTURY THAT JAMES WATT, BOULTON,ROBERT OWEN AND CHARLES BABBAGE GAVE SERIOUS THOUGHT TO PROBLEMS OF MANAGEMENT THIS PERIOD IS ALSO KNOWN AS PRETAYLOR PERIOD. IT IS ONLY WHEN MAX WEBBER INTRODUCED BUREACRATIC MODEL AROUND 1900 THAT THE FIRST SYSTEMATIC MANAGEMENT THEORY IS SAID TO HAVE EMERGED

ROBERT OWEN (1771- 1858)

HE IS CALLED AS FATHER OF MODERN PERSONNEL MANAGEMENT HE STRESSED ON

1. IMPROVEMENT IN WORKING CONDITIONS 2. REDUCTION IN WORKING HOURS 3. PROVIDING NECESSITIES TO WORKERS ON SUBSIDISED RATES 4. FIXING MINIMUM AGE FOR CHILD WORKERS

CHARLES BABBAGE (1792 1871)

1. 2. 3. 4. 5. 6. 7.

HIS MAIN EMPHASIS WAS ON USE OF MATHEMATICS AND SCIENCE TO THE OPERATIONS OF FACTORY DIVISION OF WORK ASSIGNMENT OF WORK ON THE BASIS OF SKILL OF LABOUR DECISIONS BASED ON ACCURATE KNOWLEDGE NEED FOR REDUCING COST BY INTRODUCING IMPROVED METHOD OF WORK HE INVENTED BABBAGE CALCULATING MACHINE CALCULATOR OPTIMUM UTILISATION OF MACHINES SPECIALISATION AND WAGE INCENTIVES

EXERCISE OF AUTHORITY
1. 2. 3.

HE HAS GIVEN THREE TYPES OF AUTHORITY STRUCTURES,THEY ARE CHARISMATIC TRADITIONAL BUREACRATIC

WEBBERS BUREACRATIC MODEL

1. 2.

3. 4. 5.

THE MODEL INCLUDED THE FOLLOWING: SEPARATION BETWEEN SUPERIOR AND SUBORDINATE DIVISION OF LABOUR BASED ON COMPETENCE & FUNCTIONAL SPECIALISATION DIVORCE BETWEEN PERSONAL AND OFFICIAL MATTERS SYSTEM OF RULES, REGULATIONS AND PROCEDURES HIERARCHY IN POSITIONS BASED ON LEGAL AUTHORITY

SCIENTIFIC MANAGEMENT FW TAYLOR (1856 1915)

KNOWN AS FATHER OF SCIENTIFIC MANAGEMENT THERE IS A SCIENCE FOR DOING EACH JOB IS THE BELIEF REPLACEMENT OF SCIENTIFIC METHODS IN PLACE OF RULE OF THUMB METHODS ONE BEST WAY OF DOING THINGS FOR ANY SITUATION DEFINED MANAGEMENT AS ART OF KNOWING EXACTLY WHAT YOU WANT MEN TO DO & SEE THAT THEY DO IT IN THE BEST AND CHEAPEST WAY

SCIENTIFIC MANAGEMENT FW TAYLOR (1856 1915)

ELEMENTS OF SCIENTIFIC MANAGEMENT

1. WORK STUDY 2. STANDARDISATION OF TOOLS AND EQUIPMENTS 3. SCIENTIFIC SELECTION, PLACEMENT AND TRAINING 4. INTRODUCTION OF FUNCTIONAL FOREMANSHIP 5. INTRODUCTION OF COSTING SYSTEM 6. MENTAL REVOLUTION

PROCESS MANAGEMENT HENRY

FAYOL (1841 1925)

HIS CONTRIBUTIONS ARE CLASSIFIED AS THREE:

1. CLASSIFICATION OF BUSINESS ACTIVITIES 2. FUNCTIONS OF MANAGEMENT 3. PRINCIPLES OF MANAGEMENT

CLASSIFICATION OF BUSINESS ACTIVITIES

1.

2.
3. 4.

5.
6.

TECHNICAL ACTIVITIES PRODUCTION COMMERCIAL ACTIVITIES BUYING, SELLING & EXCHANGE FINANCIAL ACTIVITIES OPTIMUM USAGE OF CAPITAL SECURITY ACTIVITIES PRODUCTION OF PROPERTY & PERSONS ACCOUNTING ACTIVITIES MANAGERIAL ACTIVITIES

NEO CLASSICAL THEORY

NEO-CLASSICAL THEORY DEALS WITH HUMAN FACTOR ELTON MAYO & MARY PARKER FOLLETT ARE THE MAIN CONTRIBUTORS OF HUMAN RELATIONS APPROACH IT IS THE SOURCE FOR STUDIES OF BEHAVIOURAL SCIENCE MANAGEMENT

HUMAN RELATIONS MANAGEMENT

STUDY DEALS WITH IMPROVEMENT OF:

1. 2. 3. 4. WORKING CONDITIONS LOWERING OF HOURS OF WORK SOCIAL RELATIONS OF WORKERS IMPROVEMENT IN PRODUCTIVITY

ELTON MAYO (1880 1949)

FATHER OF HUMAN RELATIONS MOVEMENT A TURNING POINT IN THE DEVELOPMENT OF MANAGEMENT THOUGHT HE IS KNOWN FOR HIS WORK ON THE PROJECT HAWTHORNE STUDIES THE STUDIES WERE CONDUCTED TO DETERMINE THE EFFECT OF BETTER PHYSICAL FACILITIES ON WORKERS OUTPUT

HAWTHORNE EXPERIMENT
PHASE 1 INVOLVES 5 GIRLS ENGAGED IN ELECTRICAL ASSEMBLY TESTING THIS EXPERIMENT CONTINUED FOR MORE THAN 1 YEARS THIS STUDY CONCENTRATED ON IMPROVEMENT ON PHYSICAL FACILITIES LIKE EXTENDED REST HOURS, ETC. AND FOUND THAT THE PRODUCTIVITY OF WORKERS WILL INCREASE WITH BETTER FACILITIES

HAWTHORNE EXPERIMENT
PHASE II IN THIS PHASE THE EMPLOYEES WERE TOLD THAT THEY ARE IMPROVING THE FACILITIES AND THEY ARE CHOSEN FOR EXPERIMENT THIS BOOSTED THEIR MORALE AND IMPROVED THE OVERALL PRODUCTIVITY FURTHER

HAWTHORNE EXPERIMENT
PHASE III THE LAST OF THE EXPERIMENTS WAS ON 14 MEN AND 4 SUPERVISORS WORKING IN A BANK WIRING OBSERVATION ROOM IT IS FOUND THAT THE INFORMAL RELATIONSHIPS AMONG THE WORKERS HAVE GREATER ROLE THAN THE DESIRE OF EARNING HUGE AMOUNTS AND COMPANYS FORMAL REQUIREMENTS

HAWTHORNE EXPERIMENT

MAIN FINDINGS:
1. WORKERS ARE NOT SIMPLY COGS IN THE MACHINERY 2. EMPLOYEE MORALE WILL AFFECT ON THE PRODUCTIVITY 3. EMPLOYEES FORM AS SOCIAL GROUPS IN THE ORGANIZATION 4. MANAGEMENT SHOULD UNDERSTAND THE GROUP ATTITUDE AND PSYCHOLOGY

MARY PARKER FOLLETT (1868 - 1933)

EMPHASIS ON PSYCHOLOGICAL ASPECTS OF WORKERS Vs. ELTON MAYOS ON PHYSICAL CONDITIONS PARTICIPATION OF WORKERS IN THE DECISION MAKING PROCESS IMPROVES THE RESPONSIBILITY OF THE WORKERS HER MAIN CONCERN WAS EFFICIENT USE OF PEOPLE SHE HAS A REPUTATION AS A PIONEER OF HUMAN RELATIONS APPROACH

BEHAVIOURAL SCIENCE MOVEMENT

FURTHER IMPROVEMENT OF HUMAN RELATIONS MOVEMENT INTRODUCED BY ABRAHAM MASLOW & DOUGLAS McGREGOR FOLLOWED BY RENSI LINKERT, CHESTER BERNARD

BEHAVIOURAL SCIENCE MOVEMENT

IMPORTANT ASPECTS OF THIS APPROACH:

1. 2. 3. 4. 5. MOTIVATION ORGANISATION AS A SOCIAL SYSTEM LEADERSHIP COMMUNICATION EMPLOYEE DEVELOPMENT

ABRAHAM MASLOW

MASLOWS NEED HIERARCHY THEORY:

1. 2. 3. 4. 5. PHYSIOLOGICAL NEEDS SAFETY NEEDS SOCIAL NEEDS EGO OR ESTEEM NEEDS SELF FULFILMENT OR ACTUALIZATION

DOUGLAS McGREGOR (1906 1964)

HE IS KNOWN FOR DEVELOPMENT OF THEORY ON MOTIVATION HE NAMED IT AS THEORY X AND THEORY Y

DOUGLAS McGREGOR (1906 1964)

THEORY X
WORKER IS LAZY AND DISLIKES WORK THEY ARE UNAMBITIOUS AND AVOID RESPONSI-BILITY THEY ARE NOT BOTHERED ABOUT ORGANIZATIONAL OBJECTIVES THEY SHOULD BE DIRECTED

THEORY Y
PEOPLE ARE NOT LAZY BY NATURE BUT THE TREAT-MENT IN ORGANIZATION MAKES THEM SO THEY ARE AMBITIOUS AND THEY ACCEPT RESPONSIBILITY UNDER PROPER CONDITIONS THEY WILL EXERCISE SELF CONTROL AND SELF DIRECTION NEED NOT BE DIRECTED

RENSIS LIKERT (1903 1972)

HE WAS OF THE VIEW THAT TRADITIONAL JOB ORIENTED SUPERVISION WAS THE CAUSE OF LOW PRODUCTIVITY AND LOW MORALE HE SUGGESTED PARTICIPATIVE MANAGEMENT IN DECISION MAKING HE CLASSIFIED MANAGEMENT STYLES INTO FOUR CATEGORIES

RENSIS LIKERT

FOUR CATEGORIES
1. 2. 3. 4. EXPLOITATIVE AUTOCRATIC BENEVOLENT AUTOCRATIC PARTICIPATIVE DEMOCRATIC

RENSIS LIKERT

1.Exploitative Autocratic: There is no participation of workers because these leaders have no confidence in them 2.Benevolent Autocratic: There is no proper confidence in subordinates and the relationship is that of master and servant

RENSIS LIKERT

3.Participative: The subordinates are allowed to participate in decision involving their lives. Leaders does not have full confidence in them 4.Democratic: In this style the confidence in subordinates is full and they meaningfully participate in decision making

CHESTER I BERNARD (1886 1961)

HE ADOPTED A SOCIOLOGICAL APPROACH EMPHASISED ON THE IMPORTANCE OF LEADERSHIP AND COMMUNICATION DIVIDED ORGANIZATION INTO FORMAL AND INFORMAL HE DIVIDED FUNCTIONS OF EXECUTIVES IN TO THREE CATEGORIES

1. PROVIDING SYSTEM OF COMMUNICATION 2. SECURING EFFECTS 3. FORMULATING AND DEFINING PURPOSE

III MODERN MANAGEMENT THEORIES

QUANTITATIVE APPROACH SYSTEM APPROACH CONTINGENCY APPROACH

QUANTITATIVE APPROACH
MATHEMATICS IS RECOGNIZED AS AN IMPORTANT TOOL OFANALYSIS AND A LANGUAGE FOR EXPRESSION OF CONCEPT PROBLEMS CAN BE EXPRESSED IN TERMS OF SYMBOLS AND RELATIONSHIP

FEATURES OF QUANTITATIVE APPROACH

MANAGEMENT IS CONCERNED WITH PROBLEM SOLVING AND MUST USE MATHEMATICAL TOOLS TO SOLVE THEM MATHEMATICAL SYMBOLS CAN BE USED TO DESCRIBE MANAGERIAL PROBLEMS MATHEMATICAL TOOLS OPERATIONS RESEARCH, SIMULATION AND MODEL BUILDINGS ARE USED TO FIND SOLUTIONS

LIMITATIONS OF QUANTATIVE APPROACH

MANAGEMENT HAS MANY OTHER FUNCTIONS OTHER THAN DECISION MAKING THIS APPROACH DOES NOT GIVE ANY WEIGHTAGE TO HUMAN ELEMENT IN PRACTICAL LIFE MANAGERS HAVE TO TAKE DECISIONS WITHOUT WAITING FOR DEVELOPING OF MODELS THIS APPROACH PRESUMES ALL VARIABLES OF DECISION MAKING ARE MEASURABLE

SYSTEMS APPROACH

1. AN ORGANIZATION CONSISTS OF MANY SUB-SYSTEMS 2. ALL SUB-SYSTEMS ARE MUTUALLY RELATED TO EACH OTHER 3. THE SUB-PART SHOULD BE STUDIES IN THEIR INTER RELATIONSHIP 4. THE ORGANIZATION PROVIDES A BOUNDARY WHICH SEPARATES IT 5. CHESTER BERNARD WAS THE FIRST TO SEE MANAGEMENTIN THE CONTEXT OF A SYSTEM 6. THIS APPROACH DOES NOT PROVIDE ANY TOOLS AND TECHNIQUES FOR EXECUTIVES

THIS APPROACH LOOKS UPON THE MANAGEMENT AS A SYSTEM FEATURES:

CONTINGENCY OR SITUATIONAL APPROACH

THIS APPROACH WAS DEVELOPED BY J W LORSCH & PR LAWRENCE IN 1970 WHO WERE CRITICAL OF OTHER APPROACHES PRE-SUPPOSING (ONE BEST WAY TO MANAGE) FEATURES:
1. 2. 3. MANAGEMENT IS ENTIRELY SITUATIONAL MANAGEMENT POLICIES & PROCEDURES SHOULD RESPOND TO ENVIRONMENTAL CONDITIONS MANAGER SHOULD UNDERSTAND THAT THERE IS NO ONE BEST WAY OF MANAGING A MANAGER IS EXPECTED TO KNOW ALL THE ALTERNATIVE COURSES OF ACTION BEFORE TAKING ACTION IN A SITUATION IT IS NOT ALWAYS POSSIBLE

4.

ANY QUERIES