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Evolution of Management Theory

Chapter- 2

1- Classical Approaches: The classical period extended from


mid- 19th century through the early 1950s. These included : systematic management, scientific management, administrative management, human relations and bureaucracy.

Systematic Management (Adam Smith)


Careful definition of duties & responsibilities Standardized techniques for performing these duties Specific means of gathering, handling, transmitting and analyzing information Cost accounting, wage and production control systems to facilitate internal coordination and communication. Scientific Management: Frederick Taylor) Analyze work using scientific methods to determine one best way to complete production tasks. Emphasized study of tasks, selection & training of workers, cooperation between workers & management. Improved factory productivity and efficiency Introduced scientific analysis to workplace. ( 20 minutes flywheel assembling changed into 5 minutes duration. Excluded senior management tasks Ignored relationship between the organization and its environment.

Mgmt Theory & Prac Chap- II

Administrative Management: (Henri Fayol) introduced fourteen principles of management.


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Division of Work: divide work into specialized task and assign responsibilities to specific individuals

2- Authority: delegate authority along with responsibility 3- Discipline: make expectations clear and punish violations 4-Unity of Command: each employee should be assigned to only one supervisor 5-Unity of Direction: employees effort should be focused on achieving organizational objectives 6- subordination of individual interest to general interest: The general interest must predominate . 7-Remuneration: systematically reward efforts that support the organizations direction. 8-Centralization: determine the relative importance of superior and subordinate roles 9-Scalar Chain: keep communications within the chain of command

10- Order: order jobs and material so they support the organizations direction. 11- equity: Fair discipline and order enhance employee commitment 12- Stability & tenure of Personnel: promote employee loyalty and longevity. 13-Initiative: encourage employees to act on their own in support of organizations directions 14- Espirt de Corps: promote unity of interests between employees & management.
Mgmt Theory & Prac Chap- II

Human Relations: (1930s) 1-productivity & employee behavior are influenced by informal work group 2- Cohesion, status, and group norms determine output. Managers should stress employee welfare, motivation and communication 3- Social needs have precedence over economic needs 4- psychological & social processes influence performance 5-happy workers are always more productive.

Bureaucracy: Structured formal network of relationships among specialized positions in an organization Rules and regulations standardize behavior Jobs staffed by trained specialists who follow rules Hierarchy defines the relationship among jobs Promotes efficient performance of routine organizational activities Eliminate subjective judgment by employees and management\ Emphasize position rather than the person Limit organizational flexibility and slow decision making Ignore the importance of people and interpersonal relationships Difficult to dismantle once established
Mgmt Theory & Prac Chap- II

Contemporary Approaches: these include quantitative management, organizational behavior, systems theory and contingency perspective.
Quantitative Management: Developed specific mathematical methods of problem analysis. (statistical decision, simulation, forecasting ) Helped managers to select the best alternative among a set Model neglects non-quantifiable factors. Managers not trained in these techniques may not trust or understand the techniques outcomes Not suited for non routine or unpredictable management decisions Organizational Behavior: promotes employee effectiveness through understanding of individual, group and organization processes. Stresses relationships among employees, managers and the work they perform for the organization Assumes employee want to work and can control themselves Increased participation, individual challenge & initiative Recognized the importance of developing human resources Contingency Perspective: Situational contingency influence strategies, structures and processes that result in higher performance There is more than one way to reach a goal Managers may adapt their organizations to the situation Argument against Universal principles of management Theory may not be applicable to all managers

Mgmt Theory & Prac Chap- II

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