Management and its evolution

Management and its evolution

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  PRINCIPLES AND PRACTICES OF MANAGEMENT
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  Meaning: • Management isan art of getting things done by others.
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  Management science or art Art •Practical know-how • Technical skills • Concrete results • Creativity • Personalised nature
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  science • Empirically derived •Critically tested • General principals • Cause & effect relationship • Universal applicability
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  5 M’S ofmngt. • Money • Manpower • Materials • Machinery • Methods
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  NATURE/CHARACTERIS TICS OF MNGT. •Universal process • Purposeful • Social process • Creative • Continuous process • Multidisciplinary • Intangible • Both science and art
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  WHY MANAGEMENT - Effectiveutilisation of resources - Development of resources - Incorporate innovations -Integrating varied interest groups - Stability in the society
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  DEFINITIONS • PRODUCTION ORIENTED •DECISION ORIENTED • PEOPLE ORIENTED • FUNCTION ORIENTED
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  PRODUCTION ORIENTED DEFINITION • TAYLOR: “Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way”
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  PRODUCTION ORIENTED DEFINITION • Features –Aim/Goal – Results – Efficiency Shortcomings: It does not specify how these objectives can be achieved.
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  DECISION ORIENTED DEFINITION • StanleyVance : “Management is simply the process of decision-making and control over the action of human- beings for the expressed purpose of attaining pre-determined goals”.
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  DECISION ORIENTED DEFINITION • Itimplies: – Main activity of a manager is decision making – Control – Goals Shortcoming: The process or activities where decision-making is involved is not provided
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  PEOPLE ORIENTED DEFINITION • L.Apply:“Management is accomplishment of results through the efforts of other people” • Koontz : “It is the art of getting things done through and with people in formally organised groups”
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  PEOPLE ORIENTED DEFINITION • Features –Existence of objectives – Working with and through people Shortcomings: It does not specify the functions or activities involved in the process of getting things done by or with the cooperation of other people
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  FUNCTION ORIENTED DEFINITION • MacFarland :“Management is a process by which managers create, direct, maintain and operate purposive organisations through systematic, coordinated, cooperative human efforts”
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  FUNCTION ORIENTED DEFINITION • Features –Existence of objectives – Organised activities – Relation among resources – Working with and through people – Decision making
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  ““Management is theprocess ofManagement is the process of designing and maintaining andesigning and maintaining an environment in which individuals,environment in which individuals, working together in groups,working together in groups, accomplish their aims effectively andaccomplish their aims effectively and efficiently.”efficiently.”
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  Functions
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  This definition impliesthe following: • A process • Universal application • Applicable to all managerial levels • Common aim- creating profits • Effectiveness and efficiency
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  HISTORY OF MANAGEMENT THOUGHT •No attention paid before 20th century – Lowly profession compared to bankers and lawyers – Treatment of management as an art or science confused people – Belief that managers are born and not made
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  EVOLUTION OF MANAGEMENT THOUGHTS • Growingcompetition and complexity of managing large business organisations gave a push to the development of management concepts and principles.
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  EVOLUTION OF MANAGEMENT THOUGHTS •Competion gave rise to factors like – Technology innovations – Obsolescence – Increase in capital investment – Freedom at national and international markets
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  EVOLUTION OF MANAGEMENT THOUGHTS- contd….. • Complexity came because of – Increase in the size of business organisations – High degree of division of labour and specialisation – Pressure of various conflicting groups – Socially oriented business controls by government
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  • EVOLUTION OFMANAGEMENT THOUGHTS - contd….. • All these have demanded the efficiency in management process which cannot come by trial and error methods but by developing and applying sound management concepts and principles • Economists, sociologist, psychologists ,anthropologists, mathematicians and management practitioners—studied organisations and its processes
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  EMERGENCE OF MANAGEMENT THOUGHTS •This all led to the emergence of a variety of orientations or approaches in management. • One approach or thought was an extention /improvement over the previous one.
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  DIFFERENT APPROACHES TODIFFERENTAPPROACHES TO MANAGEMENTMANAGEMENT
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  CLASSIFICATION OF MANAGEMENT THEORIES 1.CLASSICAL 2. NEO-CLASSICAL 3. MODERN
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  CLASSICAL APPROACH • SCIENTIFIC •ADMINISTRATIVE/OPERATIONAL • BUREAUCRATIC
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  SCIENTIFIC MANAGEMENT F.W TAYLOR-Father of the Scientific Management. - emphasised on shop-floor level efficiency in a scientific manner. - conducted various experiments to find out how human beings could be made to work more efficiently by standardising the work and better method of doing the work.
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  Principles of Scientific Management 1.Replacing Rule of thumb with science 2. Harmony in group action 3. Cooperation 4. Maximum output 5. Development of workers
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  • Taylor's fourprinciples are as follows: • Replace working by "rule of thumb," or simple habit and common sense, and instead use the scientific method to study work and determine the most efficient way to perform specific tasks. • Rather than simply assign workers to just any job, match workers to their jobs based on capability and motivation, and train them to work at maximum efficiency. • Monitor worker performance, and provide instructions and supervision to ensure that they're using the most efficient ways of working. • Allocate the work between managers and workers so that the managers spend their time planning and training, allowing the workers to perform their tasks efficiently.
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  Elements of Scientific Management •Separation of planning and doing • Funtional foremanship-specialisation of functions • Job analysis- find out the best way of doing the things through Time-Motion and fatigue studies • Standardisation • Scientific selection and Training of workers • Financial incentives • Economy • Mental revolution
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  Other contributors of ScientificManagement • Carl Berth – developed mathematical techniques and formulae • Henry Gantt - developed graphic methods of depicting plans. Developed GANTT chart which led to PERT. • F. and W. Gilbreth – looked at workers problems from social and psychological point of view
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  Critical Analysis of ScientificManagement • Concerned with problems related to operating levels • More relevant from engineering point of view rather than management point of view • More relevant to mechanisation and automation than the broader aspects of management
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  Critical Analysis ofScientific Management …cont • Taylor’s SM was opposed by trade unions, industrialists and general public: -aggressive mechanical view of production -close and strict supervision -exploitation by industrialists
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  Operational /Administrative Management • HENRYFAYOL: - looked at the problems of the management from top management point of view - used the word Administration rather than management
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  3.Administrative Management, Fayol’s Principles •Henri Fayol, developed a set of 14 principles: 1. Division of Labor: allows for job specialization. • Fayol noted firms can have too much specialization leading to poor quality and worker involvement. 2. Authority and Responsibility: Fayol included both formal and informal authority resulting from special expertise. 3. Unity of Command: Employees should have only one boss. 4. Line of Authority: a clear chain from top to bottom of the firm. 5. Centralization: the degree to which authority rests at the very top.
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  Fayol’s Principles 6. Unityof Direction: One plan of action to guide the organization. 7. Equity: Treat all employees fairly in justice and respect. 8. Order: Each employee is put where they have the most value. 9. Initiative: Encourage innovation. 10. Discipline: obedient, applied, respectful employees needed.
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  Fayol’s Principles 11. Remunerationof Personnel: The payment system contributes to success. 12. Stability of Tenure: Long-term employment is important. 13. General interest over individual interest: The organization takes precedence over the individual. 14. Esprit de corps: Share enthusiasm or devotion to the organization.
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  Behavioral Management • Focuseson the way a manager should personally manage to motivate employees. • Mary Parker Follett: an influential leader in early managerial theory. – Suggested workers help in analyzing their jobs for improvements. – The worker knows the best way to improve the job. – If workers have the knowledge of the task, then they should control the task.
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  Managerial qualities 1. Physical–health, vigor 2. Mental –learning ability, judgment, mental vigor and capability 3. Educational –general awareness 4. Technical –peculiar to the function 5. Experience –arising from work
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  FAYOL’S MANAGEMENT ACTIVITIES 1. Technical– related to production 2. Commercial –buying,selling, exchange 3. Financial – searching for capital and its use 4. Security –protection of property and person 5. Managerial –planning, organising, coordinating, controlling
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  2.Bureaucracy • Seeks tocreate an organization that leads to both efficiency and effectiveness. • Max Weber developed the concept of bureaucracy. – A formal system of organization and administration to ensure effectiveness and efficiency.
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  Bureaucratic Principles A BureaucracyABureaucracy should haveshould have Written rulesWritten rules System of taskSystem of task relationshipsrelationships Hierarchy ofHierarchy of authorityauthority Fair evaluationFair evaluation and rewardand reward
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  Key points ofBureaucracy Authority is the power to hold people accountable for their actions. Positions in the firm should be held based on performance not social contacts. Position duties are clearly identified. People should know what is expected of them. Lines of authority should be clearly identified. Workers know who reports to who. Rules, Standard Operating Procedures (SOPs), & Norms used to determine how the firm operates. • Sometimes, these lead to “red-tape” and other problems.
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  Features of bureaucracy – Administrativeclass – Hierarchy – Division of work – Official rules – Impersonal relations – Official record
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  Bureaucratic approach Max Weber:believed that bureaucratic structure was the most efficient structure. - It was designed to accomplish large administrative jobs - Features - Administrative class - Hierarchy
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  Criticism of Bureaucratic model 1.Inhuman organisation – Too much emphasis on rules – Rigid organisational hierarchy – Total impersonal approach 2. Goal displacement 3. Closed system perspective