Unit 2: Evolution of Management Thought

propositions of behavioural scientists:

1. An organisation is a socio-technical system. 2. Individuals differ with regard to attitudes, perceptions and value systems. As a result, they behave differently to different stimuli under different conditions. 3. People working in the organisation have their needs and goals which may differ from the organisational goals. Attempts should be made to achieve fusion between organisational goals and human needs. 4. A wide range of factors influence inter-personal and group behaviour of people in organisations.

The essential characteristics of behavioral science approach

1. Data must be objectively collected and analyzed. 2. Findings must be presented so that the distinction between cause and effect, as opposed to chance occurrences, is clear. 3. Facts must be systematically related to one another within a systematic framework. Data collection alone does not constitute a science. 4. The findings of a study must always be open to further examination and question.

Features of bureaucratic organizations based on rational-legal authority

1. Division of Work. 2. Hierarchy of Positions. 3. Rules and Regulations. 4. Impersonal Conduct. 5. Staffing: 6. Technical Competence: 7. Official Records.

Fayol's 14 Principles of Management

1. Division of work. 2. Authority and Responsibility. 3. Discipline. 4. Unity of Command. 5. Unity of Direction. 6. Emphasis on Subordination of Personal Interest to General or Common Interest. 7. Remuneration. 8. Centralization. 9. Scalar Chain. 10. Order. 11. Equity. 12. Stability of Tenure. 13. Esprit of Co-operation. 14. Initiative.

Features of Systems Approach

1. Interdependent Sub-systems: 2. Organisation: 3. Synergy: 4. Multi-disciplinary:

Quantitative Approach characteristics

1. It advocates use of mathematical and statistical techniques for solving management problems. 2. It focussed on finding right answers to managerial problems. 3. The main technique of quantitative approach is operations research. 4. It lays stress on developing econometric models for taking managerial decisions. 5. Quantitative approach was popularised by W.C. Churchman and his associates.

Scientific Approach characteristics

1. It advocates use of scientific methods in managing. 2. If focused on improving efficiency of workers and machines by finding one best way of doing things. 3. The main techniques of scientific management are time and motion studies. 4. It lays stress on experiment and research for improving efficiency. 5. The conceptual base of scientific management was provided by F.W. Taylor and his associates.

Contingency Approach characteristics

1. It identities the nature of inter-dependencies and the impact of environment of organisational design and managerial style. 2_ Each organisation is to be studied as a unique entity. 3. It follows an action-oriented appmach and so is pragmatic. It is based on empirical studies. 4. It rejects the blind application of the dassical principles of management. 5. The impact of environment on the organisation structure and managerial style is the major concern of contingency approach.

Systems Approach characteristics

1. It lays emphasis on the inter- dependencies and interactions among systems and sub-systems. 2. It treats all organisations alike. Size of the organisation, and its socio-cultural setting are not considered. 3. It studies organisation at the philosophical level• 4. It does not comment on the validity of the classical principles of management. 5. It simply lays down that the organisation interacts with the environment.

Operational Approach beliefs

1. Management is an operational process initially best dissected by analyzing the management functions. 2. If the knowledge of management is to be presented effectively, clear concepts are necessary. 3. Experience with managing in a variety of situations can furnish grounds for distillation of basic truths-theory and principles-which have a clarifying and predictive value in understanding and improving practice. 4. Principles of management can become the focal points for useful research both to ascertain their validity and to improve their applicability. 5. Managing is an art (like medicine and engineering). It should rely on underlying science-concepts, theory and principles and techniques. 6. While the total culture and the physical and biological universe variously affect the manger's environment, as they do in every other field of science and art, management science and theory need not encompass all knowledge in order to serve as a useful foundation of management practice.

Weber's three types of legitimate authority

1. Rational-legal authority: 2. Traditional authority: 3. Charismatic authority:

Principles of Scientific management

1. Science, not rule of thumb. 2. Harmony in group action, rather than discord. 3. Maximum output in place of restricted output. 4. Scientific selection, training and placement of the workers. 5. Almost equal division of work and responsibility between workers and managers.

Scientific Management suggested techniques

1. Scientific task setting to determine a fair days work. 2. Work study to simplify work and increase efficiency. This involves methods study, time study and motion study. 3. Standardization of materials, tools equipment, costing system, etc. 4. Scientific selection and training of workers. 5. Differential piece-wage plan to reward the highly efficient workers. 6. Specialization in planning and operations through functional foremanship. 7. Elimination of wastes and rationalization of system of control.

Behavioural science approach characteristics

1. Stressed upon groups and group behaviour. It focussed on group relationships. 2. It refined the Human Relations Approach and has a wide scope. 3. It is a much more systematic study of human behaviour in organisations. 4. The behaviourists studied group dynamics, informal organisation, leadership motivation, and participative management.

The classical theory incorporates three viewpoints

1. Taylor's Scientific Management. 2. Fayol's Administrative Management; and. 3. Weber's Ideal Bureaucracy.

Groups of general and industrial management

1. Technical activities: Production, manufacture, adaptation. 2. Commercial activities: Buying, selling and exchange. 3. Financial activities: Search for and optimum use of capital. 4. Security activities: Protection of property and persons. 5. Accounting activities: Stock-taking, balance sheet, cost, and statistics. 6. Managerial activities: Planning, organisation, command, co- ordination and control.

The basic tenets of neo-classical theory or human relations approach

1. The business organisation is a social system. 2. The behaviour of an individual is dominated by the informal group of which he is a member. 3. An individual employee cannot be motivated by economic incentives alone. 4. In an organisation, it is ultimately cooperative attitude and not the more command which yields result. 5. Management must aim at developing social and leadership skills in addition to technical skills. It must take interest in the welfare of workers. 6. Morale and productivity go hand in hand in an organisation.

Advantages of Weber's ideal bureaucracy

1. There is a proper delegation of authority in the organization. 2. Because of rules and regulations, all actions are taken carefully. 3. The behavior of the employees is rational. 4. The behavior of the employees is predictable. 5. leads to efficiency in the organization.

Benefits of Rules and Regulations

1. They standardize operations and decisions. 2. They serve as receptacles of past learning. 3. They protect incumbents and ensure equality of treatment.

Implications of Taylor's Mental Revolution

1. all out efforts for increase in production; 2. creation of the spirit of mutual trust and confidence; and 3. inculcating and developing the scientific attitude towards problems.

Human Relations Approach characteristics

1. laid emphasis on the individual, his needs and behaviour. 2. It focussed on inter-personal relationships. 3. It was based on the Hawthorne Experiments and so its scope is limited. 4. It laid emphasis on informal groups motivation, job satisfaction and morale.

Bureaucracy

A form of rational organisation characterized by division of labour, specialization, structure, impersonal relations, competence of personnel etc.

Weber's ideal bureaucracy

An administrative device that has been designed to bring rationality and predictability of behavior in organizations.

Administrative Management:

Concerned with the determination of policies.

Regarded the father of Scientific Management

F.W. Taylor

Classical theory:

It concentrates on the structure of the organisation for the achievement of organisational goals and certain principles of management.

Scientific management

It emphasizes efficiency of lower levels of organisation.

Contingency approach definition

It is concerned with the analysis of interaction of specific organisations with their external environment and the adoption of structure to meet the requirements of the situation.

Operational approach

It regards management as a universally applicable body of knowledge that can be brought to bear at all levels of managing and in all types of enterprises.

Quantitative approach techniques commonly used for managerial decision-making

Linear Programming, Critical Path Method (CPM), Programme Evaluation Review Technique (PERT), Games Theory, Queuing Theory and Break-Even Analysis.

Charismatic authority

Obedience is based on the followers belief that a person has some special power or appeal

Rational-legal authority

Obedience is owed to a legally established position or rank within the hierarchy of a business, military unit, government, and so on.

Traditional authority:

People obey a person because he belongs to certain class or occupies a position traditionally recognized as possessing authority, such as a royal family.

Henri Fayol

Regarded as the father of modern theory of general and industrial management

Human relationists who

The neo-classical writers who were instrumental in creating a new image of man and the work place.

Neo-classical Theory:

This approach emphasizes on the importance of social and psychological factors in determining workers' productivity and satisfaction.

Behavioral Science Approach

This approach utilizes methods and techniques of social science, which emphasizes on motivation, individual drives, group relations, leadership, group dynamics and so forth.

Systems approach

an approach to management which attempted to unify the earlier schools of thought

The abiding belief of the quantitative approach

if management is a logical process, it may be expressed in terms of mathematical symbols and relationships.

Quantitative Approach to management uses

mathematical formulate for finding solutions to the problems that were previously unsolved.

open system

obtains inputs, such as raw materials, layout, capital, technology and information, from the environment.

Elton Mayo

recognized as the father of the Human Relations School.

closed system

self-dependent and does not have any interaction with the external environment

Systems approach is based on

the generalization that an organisation is an open system composed on inter-related and inter-dependent elements.

the Classical Theory is also known as

the structural theory of organization

Mental Revolution according to Taylor

to change the mental attitudes of the workers and the management towards each other