1. OSM – Prof. Rajesh Satpathy

2. Management
Theories
Objective:
To acquire basic understanding on the following schools of
management theories:
>> The Classical Management School
>> The Behavioral Management School
>> The Human Resources Management School
>> The Management Science School

3. Management
Theories
The practice of management is as old as human civilization. The
ancient civilizations of Mesopotamia, Greece, Rome and Indus-vally
had the history of good management practices.
However, the study of management in a systematic way as a
distinct body of knowledge is only of recent origin. That is why,
management is often described as "oldest of the arts and
youngest of sciences".

4. Management
Theories
The traditional management practices remained quite stable
through the centuries until the birth of Industrial revolution in the
mid 18th century.
Industrial revolution had sown the seeds of modern management
as the then industrialists faced many problems, which were
completely unfamiliar to them, in managing the industry.

5. Management
Theories
Charles Babage, Robert Owen and James Montgomery are among
the notable management thinkers of earlier days. All the earlier
theories of management together constitute the Pre-scientific era
of management.
Disagreement exists as to the exact number of management
schools. Different writers have identified as few as three and as
many as twelve.

6. Management
Theories
This topic has following five sections.
They are:
1. The Classical Management School
2. The Behavioral Management School
3. The Human Resources Management School
4. The Management Science School

7. Management
Theories
The Classical Management School:
The twentieth century witnessed tremendous management theory
ferment and activity.
Efforts were taking place for the development of a comprehensive
management theory. Traditional or classical management school of
theory is a result of such efforts.
Henri Fayol (1841-1925) is widely acclaimed as the founder of the
Classical Management School.

8. Management
Theories
The Classical Management School:
Classical Management Theory concentrates on efficiency.
Classical school has three distinct branches, viz. scientific
management, bureaucratic management, and administrative
management. It visualize s a pyramid hierarchical structure,
autocratic management, clear chain of command and short spans
of control.

9. Management
Theories
Scientific Management:
Frederick Winslow Taylor (1856-1915)is known as the "father of
scientific management". Taylor began work at the age of 18 as a
machinist apprentice to a pattern-maker.
He later joined the Midvale Steel Company as a laborer and
became chief engineer in eight years. During his period at the steel
mill Taylor performed comprehensive experiments on worker
productivity and tested what he called the "task system" , later
developed into the Taylor System and eventually progressed into
scientific management.

10. Management
Theories
Scientific Management:
Scientific management theory analyzes and synthesizes workflow
processes and improving labor productivity.
Scientific management is also called Taylorism, the Taylor system,
or the Classical Perspective. The core ideas of the theory were
developed by Frederick Winslow Taylor in the 1880s and 1890s,
and were first published in his monographs, Shop Management
(1905) and The Principles of Scientific Management (1911).
Taylor believed that decisions based upon tradition and rules of
thumb should be replaced by precise procedures developed after
careful study of an individual at work.

11. Management
Theories
Scientific Management:
Taylor's experiments included determining the best way of
performing each work operation, the time it required, materials
needed and the work sequence.
He wanted to establish a clear division of labor between
management and employees.

12. Management
Theories
Following are the four basic principles of Scientific management
theory:
>> Study the ways jobs are performed now and determine new
ways to do them.
>> Codify the new methods into rules.
>> Select workers whose skills match the rules.
>> Establish fair levels of performance and pay incentive for higher
performance.

13. Management
Theories
The scientific management is a 'manager centric' approach. The
most fundamental aspect of scientific management is that the
manager is primarily responsible for increasing an organization's
productivity.
Scientific management principles are to be applied by managers in
a very specific fashion.

14. Management
Theories
The shortcomings of the Scientific Theory had triggered the quest
for more workable solutions and resulted in the formulation of
bureaucratic management, and administrative management
theories.
The scientific method was also got refined further during the
course of time.

15. Management
Theories
Bureaucratic Management:
Max Weber (1864-1920)is one of the strong advocates of
bureaucracy. According to Weber the major characteristics of
bureaucracy are:
A well defined hierarchy-
All positions within a bureaucracy are structured in a way
permitting the higher positions to supervise and control the lower
positions. This provides a clear chain of command facilitating
control and order throughout the organization.

16. Management
Theories
Bureaucratic Management:
Division of labor and specialization-
All responsibilities in an organization are streamlined in a way that
each employee will have the necessary expertise to master a
particular task. This necessitates granting each employee the
requisite authority to complete all such tasks.
Rules and regulations-
All organizational activities are streamlined in a way that standard
operating procedures are developed to provide certainty and
facilitate coordination.

17. Management
Theories
Bureaucratic Management:
Impersonal relationships between managers and employees-
Weber believed that managers should maintain an impersonal
relationship with the employees so that the managers will be free
to take rational decisions rather than one influenced by favoritism
and personal prejudice.
This organizational atmosphere would also facilitate rational
evaluation of employee outcomes where personal prejudices shall
not interfere.

18. Management
Theories
Bureaucratic Management:
Competence-
Competence should be the basis for all decisions made in hiring,
job assignments, and promotions. This would encourage ability and
merit as the most important characteristics of a bureaucratic
organization.
Records-
Weber felt it is absolutely essential for a bureaucracy to maintain
complete files regarding all its activities. This necessitates an
accurate organizational "memory" where accurate and complete
documents will be available concerning all bureaucratic actions and
decisions.

19. Thank
You!