HISTORICAL BACKGROUND OF :
SUBMITTED BY:
NEERAJ MEHTA NEETU MEHRA
NEHA ARORA NEHA ASIJA
NEHA BHALLANEHA GUPTA
MANAGEMENT THEORIES
HISTORICAL
BACKGROUND
EARLY EXAMPLES
OF MANAGEM
ENT
ADAM SMITH
INDUSTRIAL
REVOLUTION
SCIENTIFIC
MANAGEME
NT
GENERAL ADMINISTRA
TIVE THEORIESTS
QUANTITATIVE
APPROACH
ORGANISATIONAL
BEHAVIOUR
EARLY ADVOCATES
HAWTHORNE
STUDIES
SYSTEMS APPROAC
H
CONTINGENCY
APPROACH
HISTORICAL
BACKGROUND PART I -THOUSAND YEARS AGO
• ORGANIZED ENDEAVORS HAVE EXISTED FOR THOUSAND OF YEARS• THE EGYPTIAN PYRAMIDS AND THE GREAT WALL OF CHINA
PART 2 - IN EARLY 1400s • VENETIANS DEVELOPED AN EARLY FORM OF BUSINESS ENTERPRISE .• FOR INSTANCE – AT THE ARSENAL OF VENICE, WARSHIPS WERE FLOATED ALONG THE CANAL .
PART 3 - PRE- TWENTIETH CENTURY EVENTS
•ADAM SMITH – PROPOSED DIVISION OF LABOUR . •INDUSTRIAL REVOLUTION - GUIDED THE REQUIREMENT OF MANAGERIAL•SKILLS.
SCIENTIFIC MANAGEMENT
FREDERICK W. TAYLOR
1)Develop a science for each element of an individual’s
work.2) Scientifically select and then
train ,teach and develop the worker.
3) Heartily cooperate with the workers
4) Divide work and responsibility
5) Management takes over all work for which it is better
fitted than workers.
SCIENTIFIC MANAGEMENT PRESENT ERAFORMER ERA CHALLENGES MODERN SOLUTIONS
WORKER INSUFFICIENCY
TAKE IT EASY
NO WORK STANDARDS
NO MATCHING ABILITY/APTITUDE
TIME-MOTION STUDY
DESIGN INCENTIVE SYSTEM
ANALYZE BASIC WORK TASK
HIRE BEST QUALIFIED WORKER
FAYOL’S PRINCIPLE
OF MANAGEME
NT
DIVISION OF WORK
AUTHORITY
DICIPLINE
UNITY OF
COMMAND
UNITY OF
DIRECTIONINDIVI
DUAL-GENER
AL INTER
ESTREMUNERAT
IONCENTRALIZAT
ION
SCALAR
CHAIN
ORDER
EQUITY
STABILITY
INITIATIVE
ESPRIT DE CORP
S
WEBER’S BUREAUCR
ACY
AUTHORITY
HIERARCHY
FORMAL SELECTION
CAREER ORIENTA
TION
IMPERSONALITY
POSITION
ORGANIZED-
CLEAR CHAIN
OF COMMA
NDS
MANAGERS NOT
OWNERS
UNIFORM
APPLICATIONS
SELECTION ON TECHNI
CAL QUALIFICATION
DIVISION OF
LABOUR
SIMPLE-ROUTINE-
WELL DEFINED
TASKS
FORMAL RULES AND REGULATIO
NSWRITTEN RULES-
STANDARD OP
PROCEDURES
QUANTITATIVE APPROACH TO MANAGEMENT (OPERATIONS RESEARCH / MANAGEMENT SCIENCE )
EVOLUTION – Quantitative approach developed out of mathematical and statistical solutions to military problems during world war II.
Techniques used to solve military problems were applied to business.
Robert McNamara and Charles “Tex” Thornton used statistical and quantitative models.
It involves in improvement in decision making.
APPLICATION OF THE QUANTITATIVE MODEL
STATISTICS
INFORMATION MODELSOPTIMIZATI
ON MODELSCOMPUTER SIMULATIO
NS
MANAGEMENT OF
ACTIVITIES
ORGANIZATIONAL BEHAVIOR The field of study concerned with the behavior of people at work is called as organizational behavior (OB).
Behavioral problems are more widespread and visible.
Easy to relate to real, day to day people problem than to more abstract of constructing quantitative models.
OUTCOME
¥ Human resource management ¥ Contemporary views on : a) Motivation b)leadership c) trust d) teamwork e) conflict management
• deplorable working conditions.
• idealistic workplace • smart investment.
Robert Owen Late
1700s
Early advocates of
OB
Mary Parker Follett
Early 1900s
• Organizations could be viewed from perspective of individual and group
behavior.•Proposed more people – oriented ideas than
scientific management followers.•Thought organizastions should be based on
group ethic.`
• Created field of industrial psychology –
Scientific study of people at work.
• Suggested using psychological tests for
employee selection, learning theory concepts
for employee training, and study of human
behaviour for employee motivation.
Hugo MunsterbergEarly 1900s
Chester Bernard 1930s
• Cooperation.•communicate and
simulate employees high levels of effort.• Organizations
were open systems.
THE HAWTHORNE STUDIES AIM – To examine the effect of various illuminations levels on worker
productivity.
METHOD – It encompass numerous experiments in the redesign of jobs and includes changes in --
a )workday b) workweek length c) introduction of rest periods d) individual versus group wage plans CONCLUSION -- Social norms or groups standards were the key
determinants of individual work behavior. Organization is more than a formal arrangement of functions but is also a social system.
USE OF THE BEHAVIORAL APPROACH IN ORGANIZATIONS – # designing motivating jobs # teamwork # open communication
The systems approach
Definition: System is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole.
Two types:•Closed•Open
Organisation as an open systeminputs•Raw materials•Human resources•Capital•Technology•information
Transformation process
•Employees work activities•Management activities•technology•Operation methods
Outputs
•Products and services•Financial results.•Information •Human resultsFEEDBACK
ENVIRONMENT
ENVIRONMENT
The systems approach and managers
•An organization is made up of “interdependent factor, including individuals, groups, attitudes, motives, formal structures, interactions, goals, status and authority.
•Managers coordinate the work activities of various parts of organization and ensure all parts are working together so that goals are achieved.
•It implies that decisions and action taken in one organizational area will affect others and vice versa.
•It recognizes that organisations are not self contained.
•They rely on their environments for essential inputs and as sources to absorb their outputs.
•Sometimes called situational approach.
•Organisations are different, face different situations(contingencies), and require different ways of managing.
•But surprisingly some management rules are universally applicable that would work in all situations.
The Contingency Approach
•Organization size:
As size increases, so do the problems of coordination.
•Routineness of task technology:
It requires organizational structures, leadership style and control systems that
differ from customized technology.
•Environmental uncertainty:
Environmental changes influence the management process, it being rapidly
changing and unpredictable.
•Individual differences:
Each one is different in terms of their desire for growth, autonomy, tolerance of
ambiguity and expectation and accordingly managers select motivation
techniques style and designs
Popular Contingency Variables
Current Trends and Issues
• Globalization
• Ethics
• Workforce diversity
• Entrepreneurship
• Managing in an E – Business World
• Knowledge Management and Learning Organizations
• Quality Management
Globalization
Working with people
from different Cultures
Coping with
Anticapitalist Backlash
Movement of jobs to
countries with Low –
cost Labor
Ethics
Step 1: What is the ethical dilemma?
Step 2: Who are the affected stakeholders?
Step 3: What personal, organizational, and external factors are important to my decision?
Step 4: What are possible alternatives?
Step 5: Make a decision and act on it.
Process of addressing ethical delimas
Workforce Diversity
Broad range of
view points
Problem solving
skills
Better
understanding of
diverse customer
base
A workforce that’s heterogeneous in terms of gender, race, ethnicity, age, and other characteristics that reflect differences
Enterpreunership
Pursuit of
opportunities
Innovation
Growth
It is the process of starting new businesses, generally in response to opportunities.
Managing in an E-Business World
E-Business The way the organization does work by using
electronic(Internet based)linkages with its key constituents to efficiently & effectively achieve the goals including the e-commerce.
Categories of e-business involvement
Category 1• E-Business Enhanced
Organization
Category 2• E-Business Enabled
Organization
Category 3• Total E-Business
Organization
KNOWLEDGE MANAGEMENT
Cultivating a learning culture where organizational members systematically gather knowledge & share it with others in the organization to achieve better performance.
Learning Organizations Organizations must be dynamic & learning i.e
continuously learn, adapt & change.
Create learning capabilities throughout the organization.
Manage the base of knowledge for good decision making.
Learning Organization v/s Traditional organization
Parameters Traditional Organization
Learning Organization
Attitude towards Change
No change if working
Changing is must
Attitude towards new ideas
Not Open Always open & accepting
Who’s responsible for innovation
R & D Everyone in Organization
Main Fear Making Mistakes Not learning, not adapting
Competitive Advantage
Product & Service Ability to learn, Knowledge & Expertise
Manager’s Job Control Others Enable others
Quality ManagementA philosophy of management driven by
continual improvement & responding to customer needs & expectations.
Committed to continuous improvement in work processes.
Departure from earlier management theories.
TQM started during 1980’s & 1990’s
Inspired by W.Edwards & Joseph M.Juranmin 1950’
Cont..Customer focused
Process focused
Accurate Measurements
Empowerment of employees
SummaryHistorical Background
Early management examplesAdam SmithIndustrial Revolution
Major Management TheoriesScientific management(Taylor’s principles,
Frank, use in today’s management)General Administrative theories (Fayol’s
principles, Max Weber)Quantitative approach(Robert
McNamera,Charles Thornton)
Cont…Organizational Behavior (Early Advocates,
Hawthorne studies)Systems ApproachContingency Approach
Current Trends & IssuesGlobalizationEthicsWorkforce DiversityEntrepreneurshipE-business Knowledge & learning OrganizationsQuality Management
QuestionsDiscuss the development of major management
theories.Write short notes on:-1. Globalization 2. Quality management A philosophy of management that is driven by
continual improvement and responding to customer needs and expectations is:
a) Contingency approachb) Quality managementc) System approachd) Scientific management
A theory of management that is focused on describing what managers do and what constitutes good management practice is the general administrative theory.
a) Correctb) Incorrect Quantitative techniques are used to improve:-a) Decision makingb) Leadership qualities Open systems are those which do not interact with the
environment.a) Correctb) Incorrect
Workforce diversity is heterogeneous in terms of gender, race, ethnicity, age, and other characteristics that reflect similarities.
a) Correctb) incorrect
THANK YOU