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History and Evolution of Management Thought. Development of Major Management Theories Pre-classical contri- butions Classical theorists Behavioral approach.

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Presentation on theme: "History and Evolution of Management Thought. Development of Major Management Theories Pre-classical contri- butions Classical theorists Behavioral approach."— Presentation transcript:

1 History and Evolution of Management Thought

2 Development of Major Management Theories Pre-classical contri- butions Classical theorists Behavioral approach Quantitative approach Modern Integrative approaches Scientific management General administrative theorists Hawthorne studies Theory X & Theory Y Maslow’s Needs Theory Operations managemen t Management Information System The Systems Theory Contingency Theory Bureaucratic Model Bureaucratic Model Group Influences Model I versus Model II Values Management Science Emerging Approaches: Theory Z and Quality Management

3 The Classical Perspective * Began around 1900 and continued into the 1930s * Traditional or classical management focuses on efficiency * Focuses on ways to improve the performance of individual workers * One of the major contributors was F.W. Taylor

4 Taylor’s four principles n Develop a science for each element of work n Scientifically select, train, teach, and develop the worker n Cooperate with the workers to ensure that all work is done as per principles n Divide work and responsibility equally between management and workers Scientific Management

5 Administrative Management * Henri Fayol was the first to identify the five management functions-  Planning  Organizing  Leading  Coordination  Controlling

6 Fayol’s 14 Principles of Management  Division of work  Authority  Discipline  Unity of command  Unity of direction  Subordination of the individual interests to the general interests  Remuneration * Centralization * Scalar Chain * Order * Equity * Stability of tenure of personnel * Initiative * Esprit de Corps (unity is strength) Administrative Management

7 Bureaucratic Model * Max Weber ( ), analyzed bureaucracy as the most logical and rational structure for large organizations * Bureaucracies are founded on legal or rational authority, which is based on law, procedures, rules

8 The Behavioral / Neo-classical Perspective n Emerged in the 1920s and dealt with the human aspects of organizations n How people in the workplace interact together n Interactions between workers affected productivity and hence should be used to positively influence the same

9 * The Hawthorne Studies by Elton Mayo * Significant because they demonstrated the important influence of human factors on worker productivity * Mayo concluded that individual and social relationships played a major role in shaping workers attitudes and behavior at work The Behavioral Perspective

10 * Thus a manager's concern for workers will lead to their increased satisfaction and improved performance * Includes the need theories of motivation, such as Maslow's hierarchy of needs, and McGregor's Theory X and Theory Y The Behavioral Perspective

11 * Behavioral Scientists focused on human behavior and the study of * motivation * leadership * group dynamics * participative management The Behavioral Perspective

12 The Quantitative Perspective * Management science focuses specifically on the development of mathematical models which help organizations experiment with computers and identify the best way to do things, saving money and time

13 * Operations Management is an applied form of management science that helps organizations develop techniques to produce their products and services more efficiently The Quantitative Perspective

14 n Management Information System converts raw data into information and provides the needed information to each manager at the right time, in the needed form The Quantitative Perspective

15 Integrating Perspectives The Systems Approach  That nothing exists in a vacuum-- that each level of a company affects each other  And that each company exists in a system  And each system exists in a larger system

16 The Nature of Systems A System in Interaction with its Environment Inputs Transforming mechanism Outputs Users Sources of energy, materials, information, Human Resources Internal Interface Feedback Mechanisms External Interface Feedback Mechanisms

17 The Contingency Approach *Contingency perspective argues that universal theories cannot be applied to organizations because each is unique *Evaluate your situation, select the best approach for that situation - and make your personal style compatible with the approach Integrating Perspectives

18 The Contingency Approach * Emphasizes the fit between organization processes and the characteristics of the situation * Calls for fitting the structure of the organization to various possible or chance events Integrating Perspectives

19 Modern Management Thought Contributors:  Peter Drucker - MBO  William Ouchi - Theory Z  Michael Porter - Competitive Strategy  Blake & Mouton - Managerial Grid  McKinsey’s - 7-S Framework  Boston Consulting Group (BCG) - Matrix


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