Evolution Of Management Theory PDF

Evolution of Management Theory Prepared by: Engr. Xymel Pearl S. Almocera  1. The Classical Introduction theory of management 3. The Mode...

Evolution of Management Theory Prepared by: Engr. Xymel Pearl S. Almocera  1. The Classical Introduction theory of management 3. The Modern 2. Neo-Classical Management Evolution of Theory Theories Management Theories Summary Presentation Title What is Management - is a process of planning, decision making, organizing, leading, motivation and controlling the human resources, financial, physical, and information resources of an organization to reach its goals efficiently and effectively. 3 The Classical theory of management a) Scientific Management – Frederick Taylor, Gilbreths, Henry Gantt b) Bureaucratic Management – Max Weber c) Administrative Management – Henri Fayol 4 http://edutalks.org/downloads/Evolution%20of%20management%20theoryPrinciples%20of%20management.pdf Frederick Winslow Taylor’s Contribution(1856-1915) Father of Scientific Management His system of industrial management, known as Taylorism, greatly influenced the development of industrial engineering and production management throughout the world. Although Taylor passed the entrance examination for Harvard College, failing eyesight meant that he could not take up his place. Instead, in 1874, he took the unusual step for someone of his upper- class, almost aristocratic, background of becoming an apprentice patternmaker and machinist at the Enterprise Hydraulic Works. 5 https://www.bl.uk/people/frederick-winslow-taylor F.W Taylor’s Principles of scientific management Taylor's work The principles of scientific management (source of all the following quotes) was published in 1911. His ideas were an accumulation of his life's work, and included several examples from his places of employment. 6 https://www.bl.uk/people/frederick-winslow-taylor F.W Taylor’s Principles of scientific management The overriding principles of scientific management are that: 1. Each part of an individual's work is analyzed 'scientifically', and the most efficient method for undertaking the job is devised; the 'one best way' of working. This consists of examining the implements needed to carry out the work, and measuring the maximum amount a 'first-class' worker could do in a day; workers are then expected to do this much work every day. 7 https://www.bl.uk/people/frederick-winslow-taylor F.W Taylor’s Principles of scientific management The overriding principles of scientific management are that: 2. The most suitable person to undertake the job is chosen, again 'scientifically’. The individual is taught to do the job in the exact way devised. Everyone, according to Taylor, had the ability to be 'first-class' at some job. It was management's role to find out which job suited each employee and train them until they were first-class. 8 https://www.bl.uk/people/frederick-winslow-taylor F.W Taylor’s Principles of scientific management The overriding principles of scientific management are that: 3. Managers must cooperate with workers to ensure the job is done in the scientific way. 4. There is a clear 'division' of work and responsibility between management and workers. Managers concern themselves with the planning and supervision of the work, and workers carry it out. 9 https://www.bl.uk/people/frederick-winslow-taylor F.W Taylor’s Principles of scientific management In perspective, Taylor was a man of his times and sought solutions to the problems of his times. However, many of his ideas remain relevant to the modern day and have inspired further innovations. Three in particular, taken from The principles of scientific management, stand out: 1. Rewards: 'A reward, if it is to be most effective in stimulating men to do their best work, must come soon after the work has been done.. 10 https://www.bl.uk/people/frederick-winslow-taylor F.W Taylor’s Principles of scientific management In perspective, 2. Quality standards: The use of written documentation for each part of a worker's job, inherent in scientific management, is strikingly prescient of the procedural documentation in use in the ISO 9000 series of quality standards. 3. Suggestion schemes: Taylor proposed a form of incentive for employees to make suggestions if they felt an improvement could be made to either the method or the implement used to undertake a task. 11 https://www.bl.uk/people/frederick-winslow-taylor Gilbreths (Frank and Lillian Gilbreth) The Gilbreths used films to analyze worker activity. They would break the tasks into discrete elements and movements and record the time it took to complete one element. In this way, they were able to predict the most efficient workflow for a particular job. The films the Gilbreths made were also useful for creating training videos to instruct employees in how to work productively. 12 https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/scientific-management/ Gilbreths (Frank and Lillian Gilbreth) The Gilbreths were also focused on worker welfare and motivation. They believed that by reducing the amount of motions associated with a particular task, they could also increase the worker’s well-being. Their research, along with Taylor’s, provided many important principles later incorporated into quality assurance and quality control programs begun in the 1920s and 1930s. Eventually, their work led to the science of ergonomics and industrial psychology. 13 https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/scientific-management/ Henry Gantt Henry Gantt (1861–1919) was also an associate of Taylor. He is probably best known for two key contributions to classical management theory: the Gantt chart and the task and bonus system. The Gantt chart is a tool that provides a visual (graphic) representation of what occurs over the course of a project. The focus of the chart is the sequential performance of tasks that make up a project. It identifies key tasks, assigns an estimated time to complete the task, and determines a starting date for each element of a task. 14 https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/scientific-management/ Henry Gantt Gantt differentiated between a terminal element that must be completed as part of a larger task. The related terminal elements together created what he called the summary element. 15 https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/scientific-management/ Henry Gantt Gantt also promoted the task and bonus plan that modified Taylor’s “a fair day’s pay for a fair day’s work” premise. Gantt wanted to establish a standard (average) time for a piece of work or task. Then, if a worker took more that the standard time, his pay was docked. But if he took less time, he was paid for the additional pieces of work and a bonus of up to 20 percent more. Also known as the progressive rate system, this plan was preferred by workers who were willing to work harder for additional wages. 16 https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/scientific-management/ Principles of Scientific Management 1) Replacement of old rule of thump method 2) Scientific selection and training 3) Labor-Management co-operation(mental revolution) 4) Maximum output 5) Equal division of responsibility 17 http://edutalks.org/downloads/Evolution%20of%20management%20theory-Principles%20of%20management.pdf Techniques of Scientific Management 1) Scientific task setting-fair day’s work 2) Work study-method, time, fatigue and motion study 3) Planning the task 4) Standardisation 5) Scientific selection and training 6) Differential piece-wage plan 7) Specialisation 18 http://edutalks.org/downloads/Evolution%20of%20management%20theory-Principles%20of%20management.pdf Techniques of Scientific Management 1) Scientific task setting-fair day’s work 2) Work study-method, time, fatigue and motion study 3) Planning the task 4) Standardization 5) Scientific selection and training 6) Differential piece-wage plan 7) Specialization 19 http://edutalks.org/downloads/Evolution%20of%20management%20theory-Principles%20of%20management.pdf Gantt Chart (Activity 1) 1.) 20 https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/scientific-management/ Gantt Chart (Activity 1) 2.) 21 https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/scientific-management/ Gantt Chart (Activity 1) 3.) Gantt Chart for Thesis (from Preparation to Final Defense) Format: Kindly put your name and your Block and Class Schedule Document format: A4, landscape Deadline: September 7, 2023 (It is still ok if you print it back to back to save paper) 22 https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/scientific-management/ BUREAUCRATIC MANAGEMENT Max Weber was a German sociologist and the author of The Protestant Ethic and the Spirit of Capitalism (1905). He took a keen interest in industrial capitalism and was curious to know why it worked in certain countries and didn’t in others. Industrial capitalism is a type of economic system in which industry is controlled by private organizations and the main objective is to earn profit. 23 https://harappa.education/harappa-diaries/max-weber-theory-of-bureaucracy-2/ BUREAUCRATIC MANAGEMENT PRINCIPLE Weber concluded that a rational organization is the best way to set up an organization. He named this ‘rational organization’ as bureaucracy. In bureaucratic management, all members of the organization are treated equally and division of labor is clearly defined. It also states that the Weberian model of bureaucracy will be governed by top-quality people with high competency and skills and not by people with high social standing. 24 https://harappa.education/harappa-diaries/max-weber-theory-of-bureaucracy-2/ BUREAUCRATIC MANAGEMENT PRINCIPLE ‘Bureaucracy is an organizational structure that is characterized by many rules, standardized processes, procedures and requirements, number of desks, the meticulous division of labor and responsibility, clear hierarchies and professional, almost impersonal interactions between employees.’ 25 https://harappa.education/harappa-diaries/max-weber-theory-of-bureaucracy-2/ BUREAUCRATIC MANAGEMENT PRINCIPLE According to Max Weber’s bureaucratic management theory, Weberian bureaucracy is a structure that must be implemented in all big organizations. He proposed this to ensure the structural operation of all tasks by a huge number of employees. Furthermore, in Max Weber’s bureaucracy, qualifications and competence are the only basis for hiring and promotion of workers. 26 https://harappa.education/harappa-diaries/max-weber-theory-of-bureaucracy-2/ Max Weber’s Six Principles Of Bureaucracy 1.Task Specialization 2.Formal Selection 3.Impersonal (Impersonality And Personal Indifference) 4.Hierarchical Layers Of Authority 5.Rules And Regulations 6.Career Orientation 27 https://harappa.education/harappa-diaries/max-weber-theory-of-bureaucracy-2/ ADMINISTRATIVE MANAGEMENT Henri Fayol (1841-1925) Father of modern management Introduced pyramidal form of organization. Management consist 6 types of activities 1) Technical Activities (Production, Manufacturing) 2) Commercial Activities (Purchasing, Selling and Exchange) 3) Financial Activities (Optimum use of capital) 4) Security (Protection of property and persons) 5) Accounting (Stock taking, Balance sheet, costing, statistics) 6) Managerial (Planning, organizing, coordinating and controlling) 28 https://harappa.education/harappa-diaries/max-weber-theory-of-bureaucracy-2/ https://assignmenthelp4me.com/articles/manageme nt-principles-functions-894.html (Team Spirit) 29 The Neo-Classical Theory 1. Human Relations - Elton Mayo- Founder of Human Relations. - He conducted on experiment on Hawtrone plant of western electric company and concluded that production efficiency of workers depends upon emotional factors. - Happy & satisfied employees trying to increase production. 30 http://edutalks.org/downloads/Evolution%20of%20management%20theoryPrinciples%20of%20management.pdf The Neo-Classical Theory 2. Behavioral Science Approach - Main contributors - Maslow, F.Herz berg & D.Mc Gregor - Application of behavioral science such as psychology, sociology & anthropology to the study of human relationship. 31 http://edutalks.org/downloads/Evolution%20of%20management%20theoryPrinciples%20of%20management.pdf The Neo-Classical Theory 2. Behavioral Science Approach 1) Organization is basically a social system and not just techno economical system. 2) Individuals may behave differently under different situations. 3) Attempts should be made to connect organizational goals & human needs. 4) Management must develop social skills in addition to technical skill. Man to man relationship, team spirit & group harmony should be given top preference by management. 32 http://edutalks.org/downloads/Evolution%20of%20management%20theoryPrinciples%20of%20management.pdf The Modern Management Theories 1. Quantitative Approach - Main contributors – Taylor, Gilbreths, Gantt, Newman &Joel Dean. 1) Management is concerned with problem solving and it must make use of mathematical tools and techniques for the purpose. 2) The different factors involved in management can be quantified and expressed in the form of equations which can be solved with the help of mathematical tools. 3) Management problems can be described in mathematical models. 4) Operation research, mathematical tools, simulation and model building are the basic methodologies developed by this 33 approach. http://edutalks.org/downloads/Evolution%20of%20management%20theoryPrinciples%20of%20management.pdf The Modern Management Theories 2. System Approach - Main contributors – Johnson, Church man, Kenneth, Boulding & Rosen Zweig - Related to organization system is defined as – “An established arrangement of components which leads to accomplish of particular objectives as per plan” 34 http://edutalks.org/downloads/Evolution%20of%20management%20theoryPrinciples%20of%20management.pdf The Modern Management Theories 2. System Approach - All organizations are open system. 35 http://edutalks.org/downloads/Evolution%20of%20management%20theoryPrinciples%20of%20management.pdf The Modern Management Theories 3. Contingency Approach - Main contributors – John Woodward, Fiedler, Lorsch & Lawrence. - Management is situational & main objective of management is to identify the important variables in the situations. 3 Major parts of overall conceptual frame work for contingency management: 1) Environment 2) Management concepts, principles & techniques. 3) Contingent relationship between (1)&(2) above. 36 http://edutalks.org/downloads/Evolution%20of%20management%20theoryPrinciples%20of%20management.pdf The Modern Management Theories 4. Operational Approach - Main contributors- Koontz, O’Donnell and Weihrich - It regards management as a universally applicable body of knowledge that can be brought to bear at all levels of managing and in all types of enterprise. - It recognizes that the actual problems which managers face and the environment in which they operate may vary between different enterprises and levels. 37 http://edutalks.org/downloads/Evolution%20of%20management%20theoryPrinciples%20of%20management.pdf Thank you and God bless!