Principles of Managment - Evolution of Management

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principles of management - N.Saravanakumar - Asst.prof , CIMAT

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N.SARAVANAKUMAR Asst.Prof. ,,M.B.A., Assistant Professor COIMBATORE INSTITUTE OF MANAGEMENT AND TECHNOLOGY :

N.SARAVANAKUMAR Asst.Prof . ,,M.B.A., Assistant Professor COIMBATORE INSTITUTE OF MANAGEMENT AND TECHNOLOGY Evolution of management thought N.SARAVANAKUMAR Asst.Prof . ,CIMAT

Evolution of Management thought:

Evolution of Management thought N.SARAVANAKUMAR Asst.Prof . , CIMAT N.SARAVANAKUMAR Asst.Prof . ,CIMAT

Scientific Management :

Scientific Management Developed by Frederick W. Taylor (1856 – 1915) Scientific Management or Taylorism was a scientific method which was used to optimize the way in which tasks were performed thus improving the labor productivity. One of Taylor’s philosophy was “ In the past man must has been first. In the future, the system must be first.” N.SARAVANAKUMAR Asst.Prof . , CIMAT N.SARAVANAKUMAR Asst.Prof . ,CIMAT

The General Concept of Scientific Management:

The General Concept of Scientific Management Develop a standard method for performing a task and train workers to use these methods. (Managers developed precise procedures based each organizational task) Provide workers with the proper tools needed to work. Selected employees were chosen for specific tasks . (Workers that were stronger both mentally and physically were assigned specific tasks) Wage incentive were provided when output was increased . (Employees were motivated to increase their output with the use of additional benefits) N.SARAVANAKUMAR Asst.Prof . , CIMAT

Fundamental principles by Scientific Management:

F undamental principles by Scientific Management Replacing “ rules of thumbs” with science Obtaining harmony in group action, rather than discord Achieving cooperation of human beings, rather than chaotic individualism Working for maximum output , rather than restricted output. Developing all workers to the fullest extent possible for their own and their company’s highest prosperity . N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Features of the scientific management:

F eatures of the scientific management 1. Reorganization of supervision a. Separation of planning and doing b. Functional foremanship 2. Job analysis a. Time study b. Motion study c. Fatigue study 3. Standardization 4. Scientific selection and training 5. Differential payment and incentive scheme 6. Economy 7. Intimate friendly co-operation between management and workers. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Disadvantages of Scientific Management:

Disadvantages of Scientific Management Workers felt exploited because their social aspect of life was disregarded. (Workers were treated as machines and not humans) Management stereotyped workers and did not allow them to prove their skills in other areas. Workers were not allowed to form innovative ways to perform their tasks. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Gantt chart:

G antt chart Henry Laurence Gantt , A.B., M.E. (1861– 23 November 1919) was an American mechanical engineer and management consultant who is most famous for developing the Gantt chart in the 1910s. It provides a graphic schedule for the planning and controlling of work, and recording progress towards stages of a project. The chart has a modern variation, Program Evaluation and Review Technique (PERT). Gantt (1903) describes two types of balances : The "man’s record", which shows what each worker should do and did do, and The "daily balance of work", which shows the amount of work to be done and the amount that is done. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Gantt contributions to Management:

G antt contributions to M anagement 1916 – "Work, Wages, and Profits” Gantt explicitly discusses scheduling, especially in the job shop environment. He proposes giving to the foreman each day an "order of work" that is an ordered list of jobs to be done that day. 1919- “organizing for work” one, measure activities by the amount of time needed to complete them; two, the space on the chart can be used to represent the amount of the activity that should have been done in that time. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Image of Gantt chart:

Image of Gantt chart N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Frank and Lillian Gilberth :

Frank and Lillian G ilberth Frank Bunker Gilbreth was born on July 7, 1868 in Fairfield, Maine. He was a bricklayer, a building contractor, and a management engineer. His centennial should mark a milestone in management and work simplification. By 1912, he left the construction business to devote himself entirely to "scientific management"--a term coined, in Gantt's apartment, by a group including Gilbreth . But to him it was more than merely the mouthing of slogans to be foisted on a worker at a job in a plant. Lillian Moller Gilbreth has come to be known as "the Mother of Modern management.“ She developed ideas such as job standardization, incentive wage-plans, and motion studies in the work place. She was among the first to recognize the impact of worker fatigue and stress work efficiency. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Administrative theory Henri Fayol (1841 - 1925) :

Administrative theory Henri Fayol ( 1841 - 1925) Henri Fayol (1841– 1925), has been described as the Father of modern operational management theory He was a French mining engineer and director of mines who developed a general theory of business administration . He was one of the most influential contributors to modern concepts of management. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Henri Fayol:

Henri Fayol He had written down his management experiences in a book called “ Administration Industrielle et Générale ” , the book that would be his lasting legacy. It was first published in English as General and Industrial Management in 1949 and is widely considered a foundational work in classical management theory He and his colleagues developed this theory independently of scientific management but roughly contemporaneously. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Henry Fayol:

Henry Fayol Fayol's work was one of the first Comprehensive statements of a general theory of management He proposed that there were six primary functions of management and 14 principles of management. Functions of management (1)Forecasting (2)Planning (3) Organizing (4)Commanding (5)Coordinating (6)Monitoring N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

14 principles of management:

14 principles of management 1.DIVISION OF WORK : Work should be divided among individuals and groups to ensure  that effort and attention are focused on special portions of the task. 2.AUTHORITY : Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

14 principles of mangement:

14 principles of mangement 3.DISCIPLINE : A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort. 4.UNITY OF COMMAND : Workers should receive order 5.UNITY OF DIRECTION : The entire organization should be moving towards a common objective in a common direction. s from only one manager. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

14 principles of mangement:

14 principles of mangement 6.SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS : The interests of one person should not take priority over the interests of the organization as a whole 7.REMUNERATION : Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

14 principles of mangement:

14 principles of mangement 8.CENTRALIZATION : Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. 9.SCALAR CHAIN : Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

14 principles of mangement:

14 principles of mangement 10.ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible. 11 . EQUITY : All employees should be treated as equally as possible. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

14 principles of mangement:

14 principles of mangement 12 . STABILITY OF TENURE OF PERSONNEL : Retaining productive employees should always be a high priority of management. 13 . INITIATIVE : Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction 14. ESPIRIT DE CORPS : Management should encourage harmony and general good feelings among employees. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

F.W.Taylor Vs Henry fayol :

F.W.Taylor Vs Henry fayol F.W.Taylor ( 1856 – 1915) Henry Fayol ( 1841 – 1925) 1.Father of scientific management 1. Father of modern management 2. Scientific methods to define the “one best way” for a job to be done. 2. Theory of Administrative Management 3.4 Main ways based on scientific reason. a. Standardized method of doing job b. Right person to right job c. Right tools and equipment d. Providing an economic incentive 3.The process of creating an organizational structure that improves efficiency and effectiveness. 14 principle s of management 4. Taylor was concerned with first-line managers and the scientific method 4.Fayol's attention was directed toward the activities of all managers in general. 5. Taylor emphasized on the tasks, implementing methods and techniques of engineering to replace empirical methods and increase worker productivity 5.Fayol emphasized on the functionality and organizational structure, dividing the work in functional areas and executing the general principles of any organization N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Theory of bureaucracy Max Weber :

Theory of bureaucracy Max Weber Karl Emil Maximilian ‘Max’ Weber(1864 –1920) , was a German sociologist and political economist who profoundly influenced social theory, social research and the discipline of sociology. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Max Weber:

Max Weber Max Weber (1864–1920) wrote at the turn of the twentieth century, when Germany was undergoing its industrial revolution. To help Germany manage its growing industrial enterprises at a time when it was striving to become a world power. Weber developed the principles of bureaucracy—a formal system of organization and administration designed to ensure efficiency and effectiveness. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Five principles on bureaucratic system :

Five principles on bureaucratic system Principle 1: In a bureaucracy, a manager’s formal authority derives from the position he or she holds in the organization Principle 2: In a bureaucracy, people should occupy positions because of their performance, not because of their social standing or personal contacts. Principle 3: The extent of each position’s formal authority and task responsibilities, and its relationship to other positions in an organization, should be clearly specified. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Weber’s Principles of Bureaucracy:

Weber’s Principles of Bureaucracy N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Five principles on bureaucratic system :

Five principles on bureaucratic system Principle 4: So that authority can be exercised effectively in an organization, positions should be arranged hierarchically, so employees know whom to report to and who reports to them. Principle 5: Managers must create a well-defined system of rules, standard operating procedures, and norms so that they can effectively control behavior within an organization N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Max Weber:

Max Weber It is proposed different characteristics found in effective bureaucracies that would effectively conduct decision-making, control resources, protect workers and accomplish organizational goals. Max Weber's model of Bureaucracy is oftentimes described through a simple set of characteristics. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Behavioral Management Theory-:

Behavioral Management Theory- The behavioral management theorists writing in the first half of the twentieth century all espoused a theme that focused on how managers should personally behave in order to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals. The “Management Insight” indicates how employees can become demoralized when managers do not treat their employees properly. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Behavioral Management Theory:

Behavioral Management Theory The contribution of Behavioral Management Theory, which focused on the personal sight on workers and how they motivate the employees. 1. The Work of Mary Parker Follett 2.The Hawthorne Studies and Human Relations 3.Theory X and Theory Y N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Marry Parker Follet :

Marry Parker Follet Mary Parker Follett (1868-1933 ), a social worker, management theory writer and speaker. She was known for pioneering ideas introducing human psychology and human relations into industrial management N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Her publications :

Her publications 1896 - The Speaker of the House of Representatives 1918 - community, democracy, and government, The New State. 1924 - Creative Experience. her papers and speeches were compiled and published 1942 in Dynamic Administration 1949 - Freedom & Co-ordination ( posthumous) Graham, Pauline, editor. Mary Parker Follett: Prophet of Management . 1995. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Marry Parker Follet:

Marry Parker Follet Her work contrasted with the "scientific management" of Frederick W. Taylor (1856-1915) and evolved by Frank and Lillian Gilbreth , which stressed time and motion studies. Mary Parker Follett stressed the interactions of management and workers. She looks at management and leadership holistically, presaging modern systems approaches; N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Marry Parker Follet:

Marry Parker Follet Much of her writing about management and about the way managers should behave toward workers was a response to her concern that Taylor was ignoring the human side of the organization. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Marry Parker Follet:

Marry Parker Follet F.W. Taylor is considered to be the father of management thought, Mary Parker Follett (1868–1933) serves as its mother. Follett was one of the first (and for a long time, one of the few) to integrate the idea of organizational conflict into management theory, and is sometimes considered the “ Mother of conflict resolution." N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Marry Parker Follet:

Marry Parker Follet She pointed out that management often overlooks the multitude of ways in which employees can contribute to the organization when managers allow them to participate and exercise initiative in their everyday work lives N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Marry Parker Follet:

Marry Parker Follet Taylor, for example, relied on time-and-motion experts to analyze workers’ jobs for them. Follett, in contrast, argued that because workers know the most about their jobs, they should be involved in job analysis and managers should allow them to participate in the work development process. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Marry Parker Follet:

Marry Parker Follet She also recognized the importance of having managers in different departments communicate directly with each other to speed decision making. She advocated what she called “cross-functioning”: members of different departments working together in cross-departmental teams to accomplish projects—an approach that is increasingly utilized today N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Her contribution on management:

Her contribution on management She believed that a manager's influence should come naturally from his or her knowledge, skill, and leadership of others. She emphasized that workers on the job were motivated by the same forces that influenced their duties and pleasures away from the job and that the manager's role was to coordinate and facilitate group efforts Miller and vahghan (2001) pointed out that M.P.Follet provides a messages relevant to the contemporary management problems regarding (1) dynamism (2) empowerment (3)participation (4) leadership (5) confilct (6) experience N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 39:

The Hawthorne Studies and Human Relations Elton mayo N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . ,ASST.PROF , CIMAT

Her contribution on management:

Her contribution on management (1) Dynamism – organisation as a complex of dynamic social relations influenced by reciprocal relations (2) Empowerment – develop own power of employees rather than power delegation (3) Participation –contribution on work (4) Leadership – show orders on situtation (5) Conflict – integration is the solution for conflict (6) Experience – managers share experiences and make experiments N.SARAVANAKUMAR Asst.Prof . , N.SARAVANAKUMAR Asst.Prof . , Asst.Prof . , N.SARAVANAKUMAR Asst.Prof . , Asst.Prof . ,

The Hawthorne Studies and Human Relations:

The Hawthorne Studies and Human Relations Probably because of its radical nature, Follett’s work was unappreciated by managers and researchers until quite recently. Instead, researchers continued to follow in the footsteps of Taylor and the Gilbreths . N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , Asst.Prof . ,

Slide 42:

One series of studies was conducted from 1924 to 1932 at the Hawthorne Works of the Western Electric Company. This research, now known as the Hawthorne studies, began as an attempt to investigate how characteristics of the work setting—specifically the level of lighting or illumination—affect worker fatigue and performance N.SARAVANAKUMAR Asst.Prof . , Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . ,

Slide 43:

The researchers conducted an experiment in which they systematically measured worker productivity at various levels of illumination. The experiment produced some unexpected results ? N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 44:

The researchers found that regardless of whether they raised or lowered the level of illumination, productivity increased. In fact, productivity began to fall only when the level of illumination dropped to the level of moonlight, a level at which presumably workers could no longer see well enough to do their work efficiently. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Elton Mayo – Hawthorne effect:

Elton Mayo – Hawthorne effect The researchers found these results puzzling and invited a noted Harvard psychologist, Elton Mayo, to help them. It was not clear what was actually influencing the Hawthorne workers’ behavior. However, this particular effect—which became known as the Hawthorne effect – “ The finding that a manager’s behavior or leadership approach can affect workers’ level of performance ” N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Elton Mayo – Hawthorne effect:

Elton Mayo – Hawthorne effect The significant finding was that a manager’s behavior or leadership approach can affect performance. Human relations movement, which advocates that supervisors be behaviorally trained to manage subordinates in ways that elicit their cooperation and increase their productivity. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . ,CIMAT

Slide 47:

In a study of workers making telephone switching equipment, researchers Elton Mayo and F.J. Roethlisberger discovered that the workers, as a group, had deliberately adopted a norm of output restriction to protect their jobs. N.SARAVANAKUMAR Asst.Prof . ,CIMATCIMAT N.SARAVANAKUMAR Asst.Prof . ,CIMAT CIMAT

Slide 48:

Workers who violated this informal production norm were subjected to sanction by other group members. RATEBUSTERS Those who violated group performance norms and performed above the norm CHISELERS Those who performed below the norm. N.SARAVANAKUMAR Asst.Prof . ,CIMATCIMAT N.SARAVANAKUMAR Asst.Prof . ,CIMAT CIMAT

Slide 49:

Informal organization The system of behavioral rules and norms that emerge in a group Organizational behavior. The study of the factors that have an impact on how individuals and groups respond to and act in organizations. N.SARAVANAKUMAR Asst.Prof . ,CIMATCIMAT N.SARAVANAKUMAR Asst.Prof . ,CIMAT CIMAT

Slide 50:

Researchers focus was on how efficiency might be increased through improving various characteristics of the work setting, such as job specialization or the kinds of tools workers used . The Hawthorne studies demonstrated the importance of understanding how the feelings, thoughts, and behavior of work-group members and managers affect performance N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 51:

Theory X and Theory Y - Douglas McGregor N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

McGregor ‘ s Theory :

McGregor ‘ s Theory Douglas proposed that two different sets of assumptions about work attitudes and behaviors dominate the way managers think and affect how they behave in organizations. McGregor named these two contrasting sets of assumptions Theory X and Theory Y N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Theory X Negative:

Theory X Negative Theory X, the average worker is lazy, dislikes work, and will try to do as little as possible. Workers have little ambition and wish to avoid responsibility. As a manager what you do? N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 54:

Theory X Negative Assumptions about workers that lead to the conclusion that a manager’s task is to supervise them closely and control their behavior. “ The carrot and stick ”-Rewards and Punishments N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Theory Y –Positive :

Theory Y –Positive Theory Y assumes that workers are not inherently lazy, do not naturally dislike work, and, if given the opportunity, will do what is good for the organization. Workers are interest to do the work ,what is your role on Theory Y workers? N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 56:

Theory Y Positive Assumptions about workers that lead to the conclusion that “ A manager’s task is to create a work setting that encourages commitment to organizational goals and provides opportunities for workers to be imaginative and to exercise initiative and self-direction N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 57:

Theory Y, according to McGregor, is that “The limits of collaboration in the organizational setting are not limits of human nature but of management’s ingenuity in discovering how to realize the potential represented by its human resources N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Theory Y:

Theory Y Managers who believe that workers are motivated to help the organization reach its goals can decentralize authority and give more control over the job to workers, both as individuals and in groups. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Theory Y:

Theory Y Manager’s role is not to control employees but to provide support and advice, to make sure employees have the resources they need to perform their jobs, and to evaluate them on their ability to help the organization meet its goals N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Theory X and Theory Y:

Theory X and Theory Y THEORY X THEORY Y The average employee is lazy, dislikes work, and will try to do as little as possible. Employees are not inherently lazy. Given the chance, employees will do what is good for the organization. To ensure that employees work hard, managers should closely supervise employees. To allow employees to work in the organization's interest, managers must create a work setting that provides opportunities for workers to exercise initiative and self-direction. Managers should create strict work rules and implement a well-defined system of rewards and punishments to control employees Managers should decentralize authority to employees and make sure employees have the resources necessary to achieve organizational goals. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 61:

Management Science Theory Quantitative management Operations management (or)operations research Total quality management (TQM) Management information systems (MIS) N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Management science:

Management science Management science theory is a contemporary approach to management It focuses on the use of rigorous quantitative techniques to help managers make maximum use of organizational resources to produce goods and services. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Management science:

Management science Management science theory is a contemporary extension of scientific management , which is developed by Taylor, also took a quantitative approach to measuring the worker–task mix in order to raise efficiency. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Quantitative management :

Quantitative management Quantitative management utilizes mathematical techniques such as linear and nonlinear programming, modeling, simulation, queuing theory, and chaos theory to help managers to decide. For example, how much inventory to hold at different times of the year, where to locate a new factory, and how best to invest an organization’s financial capital. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Operations management:

Operations management Operations management (or operations research) provides managers with a set of techniques that they can use to analyze any aspect of an organization’s production system to increase efficiency N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Total quality management:

Total quality management Total quality management (TQM) focuses on analyzing an organization’s input, conversion, and output activities to increase product quality. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Management information systems :

Management information systems Management information systems (MIS) help managers design information systems that provide information about events occurring inside the organization as well as in its external environment—information that is vital for effective decision making. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Summary :

Summary Management science provide tools and techniques that managers can use to help improve the quality of their decision making and increase efficiency and effectiveness. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 69:

Organizational Environment Theory The Open-Systems View Contingency Theory N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 70:

The importance of studying the environment became clear after the development of open-systems theory and contingency theory during the 1960s. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Organizational Environment Theory :

Organizational Environment Theory An important milestone in the history of management thought occurred when researchers went beyond the study of how managers can influence behaviour within organizations to consider how managers control the organization’s relationship with its external environment, or organizational environment N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Organizational environment :

Organizational environment The set of forces and conditions that operate beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 73:

Ford , a company which is used to buy a raw materials from various resources. It is a manufacturing company which used skilled laborers and semi skilled laborers, robots, machines to accumulate the raw materials for the car manufacturing. Then it sends to the market as a finished goods. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

The Open-Systems View:

The Open-Systems View A system that takes in resources from its external environment and converts them into goods and services that are then sent back to that environment for purchase by customers. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 75:

The view was developed by Daniel Katz, Robert Kahn, and James Thompson in the 1960s. input stage, conversion stage output stage N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 76:

Input stage: An organization acquires resources such as raw materials ,money, and skilled workers to produce goods and services. Conversion stage : The organization’s workforce, using appropriate tools, techniques, and machinery, transforms the inputs into outputs of finished goods and services such as cars, hamburgers, or flights to Hawaii. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 77:

Output stage , The organization releases finished goods and services to its external environment, where customers purchase and use them to satisfy their needs. The money the organization obtains from the sales of its outputs allows the organization to acquire more resources so that the cycle can begin again. N.SARAVANAKUMAR Asst.Prof . ,CIMAT

Slide 78:

Closed system A system that is self-contained and thus not affected by changes that occur in its external environment. Entropy The tendency of a system to lose its ability to control itself and thus to dissolve and disintegrate. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 79:

Machinery Computers Human skills Raw materials Money and capital Human resources Goods services N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 80:

Researchers using the open-systems view are also interested in how the various parts of a system work together to promote efficiency and effectiveness. Synergy, the performance gains that result when individuals and departments coordinate their actions, is possible only in an organized system. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Contingency Theory:

Contingency Theory The idea that managers’ choice of organizational structures and control systems depends on—is contingent on—characteristics of the external environment in which the organization operates N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 82:

Contingency theory in the 1960s by Tom Burns and G.M. Stalker in the United Kingdom and Paul Lawrence and Jay Lorsch in the United States. “there is no one best way to organize” N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Contigency theory:

Contigency theory How managers design the organizational hierarchy, choose a control system, and lead and motivate their employees is contingent on the characteristics of the organizational environment. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Contingency Theory of Organizational Design:

Contingency Theory of Organizational Design N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Contigency theory :

Contigency theory An important characteristic of the external environment that affects an organization’s ability to obtain resources is the degree to which the environment is changing. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 86:

In general, the more quickly the organizational environment is changing, the greater are the problems associated with gaining access to resources and the greater is the manager’s need to find ways to coordinate the activities of people in different departments in order to respond to the environment quickly and effective. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

MECHANISTIC AND ORGANIC STRUCTURES:

MECHANISTIC AND ORGANIC STRUCTURES Drawing on Weber’s and Fayol’s principles of organization and management, Burns and Stalker proposed two basic ways in which managers can organize and control an organization’s activities to respond to characteristics of its external environment N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 88:

When the environment surrounding an organization is stable, managers tend to choose a mechanistic structure to organize and control activities and make employee behavior predictable N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Mechanistic structure:

Mechanistic structure An organizational structure in which authority is centralized ,tasks and rules are clearly specified, and employees are closely supervised. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Slide 90:

An organizational structure in which authority is decentralized to middle and first line managers and tasks and roles are left ambiguous to encourage employees to cooperate and respond quickly to the unexpected. N.SARAVANAKUMAR Asst.Prof . ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

Summary :

Summary Father of scientific management - F.W.Taylor - 4 principles – curb rule of thumb. Father of modern management theory – Henry Fayol - 14 principles Behavioural theories – Elton mayo – Hawthorne studies. Quantitative management utilizes mathematical techniques N.SARAVANAKUMAR Asst.Prof. ,CIMAT N.SARAVANAKUMAR Asst.Prof . , CIMAT

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