introduction
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INTRODUCTION
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THE KEY POINTS
• THE CHANGING ENVIRONMENT - BUSINESS, SOCIAL & ORGANIZATIONAL.
• HISTORICAL BACKGROUND.
• RESEARCH METHODOLOGY.
• KNITTING THE VARIOUS THEORETICAL FRAMEWORKS.
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EARLY THINKING ABOUT MANAGEMENT
• MACHIAVELLI - “DISCOURSES” (1531)
– AN ORGANIZATION IS MORE STABLE IF MEMBERS HAVE THE RIGHT TO EXPRESS THEIR DIFFERENCES AND SOLVE THEIR CONFLICTS WITHIN IT.
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CONTINUED...
• WHILE ONE PERSON CAN BEGIN AN ORGANIZATION, “it is lasting when it is left in the care of many and when many desire to maintain it”.
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CONTINUED...
• A weak manager can follow a strong one, but not another weak one, and maintain authority.
• A manager seeking to change an established organization “should retain at least a shadow of the ancient customs”.
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ANOTHER CLASSIC WORK
CHINESES PHILOSOPER - SUN TZU wrote a book more than 2000 years
ago - THE ART OF WAR.
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SUN TZU’S DICTUMS:
• When the enemy advances, we retreat!
• When the enemy halts, we harass!
• When the enemy seeks to avoid battle, we attack!
• When the enemy retreats, we pursue!
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WHY STUDY MANAGEMENT THEORY
• Because it provides a stable focus for understanding what we experience.
• It enables to communicate efficiently.
• Theories make it possible to keep learning about our world.
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THE EVOLUTION OF MT
• Scientific Management School: Classical Organization Theory School.
• The Behavioural School.• Management Science.• The Systems Approach.• The Contingency Approach.• Dynamic Engagement Approach.
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SCIENTIFIC MGMT. SCHOOL
• FREDERICK W. TAYLOR & OTHERS FORMULATED BETWEEN 1890-1930.
• THE PURPOSE WAS TO DETERMINE SCIENTIFICALLY THE BEST METHODS FOR PERFORMING ANY TASKS, AND FOR SELECTING, TRAINING AND MOTIVATING WORKERS.
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FREDERICK W. TAYLOR: DIFFERENTIAL RATE SYSTEM
• BASED HIS PHILOSOPHY ON 4 BASIC PRINCIPLES:– The development of a true science of
management.– The scientific selection of workers.– The scientific education and
development of the worker.– Intimate, friendly co-operation between
management and labour.
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HENRY L. GANTT
• Taylor’s differential rate system seemed to have too little motivational impact. Therefore, he came up with the idea,– Every worker who finished a day’s assigned
workload wins 50% bonus.– The supervisor would earn a bonus for
each worker who reached the daily standard plus an extra bonus if all the workers reached it.
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THE GILBRETHS
• FRANK B. & LILLIAN M. GILBRETH collaborated to Fatigue and Motion Studies.
• FOCUS: Ways of promoting the individual worker’s welfare.
• According to them motion study would raise worker morale because of 2 reasons:– Obvious physical benefits and– Demonstrated management’s concern for
workers
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CLASSICAL ORGANIZATION THEORY SCH.
• HENRY FAYOL: To underlie the principles and skills that underlie effective management. MANAGERS ARE MADE NOT BORN. MANAGEMENT IS A SKILL.
• TAYLOR’S CONCERN: Organizational Functions.
• FAYOL’S CONCERN :Total Organization focussed on Management
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MARY PARKER FOLLETT
• Believer in the POWER OF THE GROUP.• Management for her meant, “ the art of
getting things done through people.”
• Follett’s holistic model of control took into account not just individuals and groups but the effects of environmental factors, i.e. politics, economics, biology etc.
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CHESTER I. BARNARD
• AN ENTERPRISE CAN OPERATE EFFICIENTLY AND SURVIVE ONLY WHEN THE ORGANIZATION GOALS ARE KEPT IN BALANCE WITH THE AIMS AND NEEDS OF THE INDIVIDUALS WORKING FOR IT.– ZONE OF INDIFFERENCE: What the
employees would do without questioning the manager’s authority.
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THE BEHAVIOURAL SCH.
• THE ORGANIZATION IS PEOPLE
• A group of management scholars trained in sociology, psychology, and related fields who use their diverse knowledge to propose more effective ways to manage people in organizations.
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THE HUMAN RELATIONS MOVEMENT
• HUMAN RELATIONS: How managers interact with other employees.
• The Human Relations Movement arose from early attempts to systematically discover the social and psychological factors that would create effective human relations.
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THE HAWTHORNE EXPERIMENTS
• Experiments done at Western Electric Company mostly at Hawthorne Plant near Chicago.
• HAWTHORNE EFFECT - The possibility that workers who receive special attention will perform better simply because they received that attention - Elton Mayo and his colleagues.
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FROM HUMAN RELATIONS TO BEHAVIORAL SCIENCE APPROACH
• More sophisticated view of human beings and their drives - Douglas McGregor (Theory X and Theory Y), Maslow (Self-Actualization).
• Scientific investigation of people’s behaviour in organizations.
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THE MANAGEMENT SCIENCE SCHOOL
APPROACHING MANAGEMENT PROBLEMS THROUGH THE USE OF MATHEMATICAL TECHNIQUES FOR THEIR MODELING, ANALYSIS AND SOLUTION.
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THE SYSTEMS APPROACH
• Views organization as a UNIFIED, DIRECTED SYSTEM OF INTER-RELATED PARTS.
• Some Key Concepts:– Subsystem– Synergy– Open and closed system– Feedback
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THE CONTINGENCY APPROACH
According to it,– A manager’s task is to identify which
technique in a particular situation, under particular circumstances, and at a particular time, best contribute to the attainment of management goals.
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AN ERA OF DYNAMIC MGMT.
THE CHANGING TIME AND HUMAN RELATIONSHIPS ARE FORCING MANAGEMENT TO RETHINK TRADITIONAL APPROACHES IN THE FACE OF CONSTANT RAPID CHANGE.
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A COMPANY OF BUSINESS PEOPLE
• Twentieth century organizations – 1. Owners and managers run the Company. 2. Workers would follow the directions.
• Twenty-first century organizations – Company of Businesspeople– Everyone is free to think like an owner and this
attitude becomes a part of everyday life. CHANGED MIND SET.