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Development of Management Thought Ms. Amanpreet Kaur
Michelangelo… The lonely genius trapped between agony and ecstacy, isolated on his back on a scaffold, single handedly painting the ceiling of Sistine Chapel –  A Myth….!!!!!
Reality… Some 480 yrsago, was running a mid-sizedfirm. 13 people helpedhimpaint, 20 in carving and 200 helped in building the library. He used to personally select, train, and assignthem teams. Kept a detailedemployment records of names, daysworked and wages of everyemployee, everyweek. He wasjust a trouble-shooting manager with us evenbeforeIndustrialrevolution.
IndustrialRevolution..?? The advent of machine power, mass production and efficient transportation begun in the late 18th century in Great Britain.
ClassicalApproach The termisused to describe the hypotheses of the scientific management theorists and the general administrative theorists. ,[object Object]
Based on experience of managers
Based on basic truths and facts
Managers weredeveloped by formaleducation and training
People are motivated by incentives and penalities.
No conflictwithinindividuals, if any, interest of orgn  prevails,[object Object]
Rules and Regulations
Hierarchy of Authority
TechnicalCompetence
Record Keeping
Impersonal RelationsLegitimateAuthority Traditional Rational Charismatic
+ves & -ves
B) Scientific ManagementFredrick Winslow Taylor (1856-1915)Father of Scientific Management ,[object Object]
In 20th century, skilled labour in US were short in supply, soneccessary to increaseefficiency.Objectives ,[object Object]
Managers to followscientific and systematicapproach to managerialproblems in place of rule of thumb,[object Object]
Techniques.. Time Study (workMeasurement) Motion Study Method Study Fatigue Study Differentialwage rate system Scientifictask planning Standardization + Simplification FunctionalForemanship
C) Administrative TheoryHenry Fayol (1841-1925)Father of Adminstrative Management His Contributions… ,[object Object]
5 Management Functions
14 PrinciplesBusiness Activities Technical Commercial Financial                                       Operating activities of business Accounting Security ManagerialActivity                          Most Neglected
14 Principles Division of Work Authority and Responsibilty Discipline Unity of Command Unity of Direction Subordiantion of Individualinterest to generalinterest Remuneration of personnel Centralisation Scalar Chain Order (Materialorder + Social order) Equity Stability of tenure Initiative Espirit de corps (Unity of efforts throughharmony of interests)

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Development of Management Thought

  • 1. Development of Management Thought Ms. Amanpreet Kaur
  • 2. Michelangelo… The lonely genius trapped between agony and ecstacy, isolated on his back on a scaffold, single handedly painting the ceiling of Sistine Chapel – A Myth….!!!!!
  • 3. Reality… Some 480 yrsago, was running a mid-sizedfirm. 13 people helpedhimpaint, 20 in carving and 200 helped in building the library. He used to personally select, train, and assignthem teams. Kept a detailedemployment records of names, daysworked and wages of everyemployee, everyweek. He wasjust a trouble-shooting manager with us evenbeforeIndustrialrevolution.
  • 4. IndustrialRevolution..?? The advent of machine power, mass production and efficient transportation begun in the late 18th century in Great Britain.
  • 5.
  • 6. Based on experience of managers
  • 7. Based on basic truths and facts
  • 8. Managers weredeveloped by formaleducation and training
  • 9. People are motivated by incentives and penalities.
  • 10.
  • 17.
  • 18.
  • 19.
  • 20. Techniques.. Time Study (workMeasurement) Motion Study Method Study Fatigue Study Differentialwage rate system Scientifictask planning Standardization + Simplification FunctionalForemanship
  • 21.
  • 22.
  • 24. 14 PrinciplesBusiness Activities Technical Commercial Financial Operating activities of business Accounting Security ManagerialActivity Most Neglected
  • 25. 14 Principles Division of Work Authority and Responsibilty Discipline Unity of Command Unity of Direction Subordiantion of Individualinterest to generalinterest Remuneration of personnel Centralisation Scalar Chain Order (Materialorder + Social order) Equity Stability of tenure Initiative Espirit de corps (Unity of efforts throughharmony of interests)
  • 26.
  • 28.
  • 29. Relay Assembly Test room studies
  • 31. Bank wiring observation room studyConclusion- A work group- not a techno economic unit but a social system Workers not only rational economicbeingsmotivated by money, but alsorespond to work conditions Social+Psychologicalfactorsexercisegreater control on employeebehaviour.
  • 32.
  • 33.
  • 34. Systems Approach Attempts to explainorganisationalbehaviour by analysing the structure of orgn. It was a result of thoseorgnsthatweretrying to adapt to the rapid change in business environment. Features- Unified and purposeful system Each inter-related parts and subsystems. Each system has a boundary- Internal or External Open system Vs. Closedsystems A business enterprise as a open system (Draws Inputs- convertinto output- sends to environment)
  • 35.
  • 36. ContigencyApproach Wasdeveloped by managers, consultants and researcherwhotried to apply the concept of earlierapproaches to real life situations. ‘ There is no best way to tackle the problem of management. The application of management principles and practices is contingent upon the environment’
  • 37. Best solution is one whichis responsive to the pecularities of a given situation. Features Mgt issituational. Should match or fit itsapproach to the requirements of a particular situation. Mgt’ssuccessdepends on itsability to copewithitsenv, itshouldsharpenitsdiagonisticskillsso as to anticipate and comprehend the environmental change. Mgrs shouldunderstandthatthereis no best way to manage.
  • 38. 4 SequentialSteps Analyze and understand the situation Study and examine the validity of various concepts, principles and techniques to situation. Make the right choice by matching the technique to the situation. Implement the choice.
  • 39.
  • 41. Common sense value and widenspractical utility
  • 42. Integrateclassicalapproach + apply contingent to situation
  • 43. Organisations environment are dynamic to bealwayseffectivelymanaged in the samemanner.
  • 44.
  • 45. Queries… ??? Ms. Amanpreet Kaur