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Major Management Perspectivesover time
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Classical Management Perspective
Focuses on efficiency and includes:
scientific,
administrative, and bureaucratic management.
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Scientific Management
focuses on the Best way to do a job.
Concerned with improving theperformance of individual workers
(i.e., efficiency).
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Scientific Management
Frederick Taylor(1856-1915)
Called as Father of Scientific Management
Mechanical engineer by profession Believed in selecting, training, teaching and
developing workers.
Used time study, standards planning,
rules, instruction cards, incentives, etc.
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Other Scientific ManagementPioneers
Frank Gilbreth(1868-1924) and Lillian
Gilbreth (1878-1972)
Reduced number of movements in bricklaying, resultingin increased output of 200%
Henry Gantt(1861-1919)
Developed other techniques, including the Gantt chart,
to improve working efficiency throughplanning/scheduling
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Administrative Management
A theory that focuses on managing theorganization.
Emphasizes the flow of information in theoperation of the organization.
http://telecollege.dcccd.edu/mgmt1374/book_contents/1overview/managerial_functions/mgrl_functions.htm -
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Contd.
Henri Fayol (1841-1925).
Wrote General and Industrial Management
Helped to systematize the practice of management First to describe management as planning,
organizing, leading, and controlling
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Fayols 14 Principles for Effective
Management Practices
Division of labor
Authority
Discipline Unity of command
Unity of direction
Subordination ofindividuals to thecommon good
Remuneration
Centralization
Scalar chain Order
Equity
Stability
Initiative
Esprit de corps
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Theory of Bureaucracy
Relies on a rational set of structuring guidelinessuch as rules and procedures, hierarchy, and aclear division of labour.
Division of labor Reliance on rules and regulations Hierarchy of authority Unfriendly Inflexible Strict
C t ib ti
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Contributions& Limitations
Contributions
Laid the foundation for later developments
Identified important management processes, functions, & skills
Focused attention on management as a valid subject
Limitations
Suitable mainly for traditional, stable, simple organizations
Employees are viewed as tools rather than resources
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Behavioral ManagementPerspective
Emphasizes individual attitudes andbehaviors
Recognizes the importance of Groupbehavior in the workplace.
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Behavioral ManagementPerspective
The Hawthorne Studies Conducted by Elton Mayo (psychologist ) and associates
at Western Electric Co. (19271935)
The aim of these studies was to determine the effectof working conditions on productivity.
The conclusion was that there was no cause-and-effect relationship between working conditions and
productivity. Workers respond to the social context of the work
place.
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Behavioral Scientists
Major contributors and their theories:
Maslow- Hierarchy of needs
Alderfer- ERG
Mc.Gregor- Theory X Theory Y
Mary Parker Follett empowerment ,participative management, open systems
Their view: employees want meaningful work; theywant to contribute; they want to participate indecision making and leadership functions.
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Physiological
Safety
Esteem
Self-
Actualization
Maslows Hierarchy of Needs
Social
Developing using abilities
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Status, Recognitionthrough promotions-
Relationship with otherworkers
-Job security, Betterworking condition-
Food, Clothing
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Theory X
People do not like work andtry to avoid it.
People do not like work, so
managers have to control,
direct, coerce, and threatenemployees to get them to
meet organizational goals.
People prefer to be directed,
to avoid responsibility, and
to want security; they have
little ambition.
Work is a natural part of peopleslives.
People are internally motivatedby commitment.
People are committed to goals to
the degree they receive rewards. People will seek and accept
responsibility.
People have the capacity to beinnovative.
People are bright, but mostlyunder-utilized.
Theory Y
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Mc Gregors Theory (XY theory)
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Contributions& Limitations
Contributions
Provided important insights into motivation, group dynamics, and otherinterpersonal processes.
Focused managerial attention on these critical processes.
Challenged the view that employees are tools and
promote the belief that employees are valuable resources.
Limitations
Complexity of individuals makes behavior difficult to predict.
Managers are reluctant to adopt many concepts.
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Quantitative ManagementPerspective
Uses quantitative methods and models tomanage decisions
1. Management Science Focuses on the development of mathematical
models to assist with decisions
2. Operations Management Practical application of management science toefficiently manage the production anddistribution of products and services
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Techniques used in this approach
Programme Evaluation and Review
Technique (PERT)
Critical Path Method (CPM),
Return on Investment (ROI),
Net Present Value (NPV)
Management science
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Techniques used in the Quantitative Approach are:
Linear Programming:
Queuing Theory:
Inventory Modeling:
Simulation:
Preventive Control and Replacement Problem:
Competitive Problem and Game Theory:
Operations Management
Contributions
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Contributions& Limitations
Contributions Developed quantitative techniques to assist in decision making.
Application of models has increased awareness and understanding ofcomplex processes and situations.
Has been useful in the planning and controlling processes.
Limitations
Cannot fully explain or predict behavior.
Mathematical sophistication may come at the expense of other skills.
Models may require unrealistic or unfounded assumptions.
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Integrating Perspectives ForManagers
The Systems Perspective
The Contingency Perspective
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Systems approach
System: an interrelated set of elementsfunctioning as a whole .
Consider organization as an open systeminteracts with its environment.
Uses systems concepts and quantitativeapproaches from mathematics, statistics,engineering, and other related fields to solveproblems.
Managers find optimal solutions to managementproblems by using scientific analysis which isclosely associated with the systems approach tomanagement.
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Contingency/Situational Perspective
Emphasizes the fit between organization processes andthe characteristics of the situation.
Appropriate managerial behaviour in a given situationdepends on a wide variety of elements & provides a
framework for integrating the knowledge of managementthought
Suggests that the effectiveness of various managementpractices, styles and techniques will vary according tothe particular situation