EVOLUATION OF MANAGEMENT THOUGHTS MANAGEMENT THOUGHTS CLASSICAL MANAGEMENT

EVOLUATION OF MANAGEMENT THOUGHTS

MANAGEMENT THOUGHTS CLASSICAL MANAGEMENT APPROACH MODERN MANAGEMENT APPROACH BEHAVIOURAL APPROACH (NEO CLASSICAL) QUANTITATIVE APPROCH SCIENTIFIC MANAGEMENT ADMINISTRATIVE MANAGEMENT SYSTEM APPROACH CONTINGENCY APPROACH BUREAUCRATIC MANAGEMENT HUMAN RELATION APPROCAH BEHAVIORAL SCIENCE APPROACH OPERATIONAL APPROACH

CLASSICAL MANAGEMENT APPROACH Scientific Management “ Scientific management means knowing exactly what you want your men to do and seeing that they do it in the best and cheapest way”. Techniques of Scientific Management: a) Scientific Work Study b) Scientific Task setting c) Standardization d) Selection and Training e) Differential Piece rate system f) Functional Foremanship

CLASSICAL MANAGEMENT APPROACH Administrative Management Activities of Business Fayol divided business activities in six groups A) TECHNICAL: Production and Manufacturing B) COMMERCIAL: Buying raw material and selling finished goods C) FINANCIAL: Acquisition and Optimum use of financial resources D) SECURITY: Protect Human and Not Human resources E) ACCOUNTING: P&L, Balance Sheet, Minimizing cost. F) MANAGERIAL: Functions of a Manager

CLASSICAL MANAGEMENT APPROACH Administrative Management Functions of Mgmt Functions of Manager or Management Abilities of Managers Qualities of a Good Manager A) PLANNING A)PHYSICAL B) ORGANISING B) MENTAL C) COMMANDING C) MORAL D) CO-ORDINATING D)GENERAL EDUCATION E) CONTROLLING E) SPECIAL KNOWLEDGE F) EXPERIENCE

CLASSICAL MANAGEMENT APPROACH Administrative Management Principles of Management 1) DIVISION OF WORK 8) CENTRALIZATION 2) AUTHORITY & RESPONSIBILITY 9) SCALAR CHAIN 3)DISCIPLINE 10) ORDER 4) UNITY OF COMMAND 11) EQUITY 5) UNITY OF DIRECTION 12) STABILITY OF TENURE OF PERSONNEL 6) SUBORDINATION OF INDIIDUAL INTEREST TO GERERAL INTEREST 13) INITIATIVE 7) REMUNERATION 14) ESPRI-DE-CROPS

CLASSICAL MANAGEMENT APPROACH Bureaucratic Management Important features of Bureaucratic Management A) Division of Labor B) Standard Rules C) Scalar Chain D) Appointment on the basis of Merit E) Official records. F) Impersonality

CLASSICAL MANAGEMENT APPROACH Bureaucratic Management Criticisms of Bureaucracy A) Over emphasis on rules and procedures. B) Dependence upon official status C) Initiative may be shifted D) Tendency to conceal administrative procedures from outsiders E) Lack of responsiveness to individual problems

BEHAVIOURAL APPROACH (NEO-CLASSICAL) HUMAN RELATION APPROACH A) It views the workers as “ a Social Process”. B) Focus is on interpersonal relations C) It is based on Hawthorne experiments D) Emphasizes on formal organizational structure E) Techniques of self-direction and self control are applied to a limited extent. F) Motivation and Job Satisfaction are major concepts G) It lacks scientific vision to study human behavior

BEHAVIOURAL APPROACH (NEO-CLASSICAL) BEHAVIORAL SCIENCE APPROACH A) It views the workers as “ a Self actualizing man”. B) Focus is on group relationship C) It is based on application of behavioral science D) Emphasizes on flexible organizational structure E) Techniques of self-direction and self control are applied extensively. F) Group dynamics and Informal organization are major concepts G) It provides scientific understanding of human behavior