Evaluation Of Management Thought c294i

Evaluation of Management Thought: a) Classical School: - F.W.Taylor, Scientific management Theory, Classical Organisation Theory, Fayol’s Principles of Management, Max Webers’ Bureacratic Model

Organizational behavior A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

OB can be defined as the understanding, prediction and management of human behaviour in organizations. Philosophies and Approaches to Management Practice The evolution of Management thought a. Early strategists b. Scientific Management schools c. Classical organization theory school d. The behavioral school e. The systems approach f. The contingency approach The Scientific Management Movement In the late 19th century management decisions were often arbitratry and workers often worked at an intentially slow pace. No systemantic management Scientific management was introduced in an attempt to create a mental revolution in the workplace. In the earlier part of the 20th century a school of thought known as scientific management emerged.

    

Management which conducts a business or affairs by standards established by facts or truths gained through systematic observation, experiment or reasoning. Focussed on increasing labour efficiency and productivity primarily by managing the work of employees in the organization’s technical core. Characterized by close forms of supervision and control oriented management practices. Systematic study of work methods in order to improve efficiency.

Scientific Management Pioneers 1) Charles Babbage (1792-1871)   

Advocated division of labour and job specialization ‘Breaking up work into relatively narrow, standardized and repetitive jobs’ Promoted time studies to establish performance standards and rewards for exceeding standards. 2) Frederick Taylor (1856-1915)  Believed in the ‘science of work’- the underlying laws, or principles, that govern various work activities.  Believed in the economically motivated “mutuality of interest” of employees and managers.  4 principles  Replace rule of thumb work methods with methods based on a scientific study of the tasks.  Scientifically select, train and develop each employee rather than ively leaving them to train themselves.  Provide ‘Detailed instruction and supervision of each worker in the perfoemance of that workers’s discrete task’  Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks. Frederick Taylor’s scientif management prescriptions 



Develop the science of work (“one best way”). Scientifc method to work in order to determine the best method for accomplishing each task. Emphasize an absolute adherence to work standards. Management should take complete responsibility for planning the work and that worker’s primarily responsibility should be implementing management’s plans. Scientifically select, place, and train workers



Apply a financial incentive system.





Monetary awards are a source of motivation. Utilize specialized functional supervision.

3)The Gilbreths – – – –

Frank Gilbreth (1868–1924) and Lillian Gilbreth (1878–1972) pioneers of time and motion study. to describe the motions (therbligs) used in the performance of a job With the use of motion picture cameras, the Giberth’s found the most efficient and economical motions for each task thus reducing and upgrading production.

4)Henry Gantt (1861–1919) –

Developed the Gantt chart to summarize work activities and identify those tasks that should be performed simultaneously or sequentially.

–

Advocated a minimum-wage-based incentive system and bonuses for work above and beyond the expected standard by employees.

–

Proposed a bonus system for supervisors to encourage them to manage subordinates effectively.

Drawbacks of Scientific Management 1) While scientific management principles improved productivity and has a substantial impact on industry, they also increased the monotony of work. The core job dimensions of skill variety, task identity, task significance, autonomy and all were missing from the picture of scientific management. Criticism Workers Viewpoint 1. Unemployment- Workers feel that management reduces employment opportunities from them through replacement of men by machines and by increasing human productivity less workers are needed to do work leading to chucking out from their jobs. 2. Exploitation- Workers feel theu istrative Management and the Bureaucratic Organization •

Organizations were viewed as giant machines created to achieve goals.

•

A basic set of universal laws, or principles should govern organization design and allow managers to run those “machines” effectively.

•

Henri Fayol (1841–1925)

- Real father of modern management theory –

Believed that all managers perform five managerial functions: •

Planning

•

Organizing

•

Commanding

•

Coordinating

•

Controlling

Fayol’s Fourteen Principles 1. Division of labor 2. Authority 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest for common good 7. Remuneration 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability of tenure 13. Initiative 14. Esprit de corps The Bureaucratic Organization •

Max Weber (1864–1920) –

Envisioned an organization managed on an impersonal and rational basis.

–

Goals of the bureaucratic model:

•

Speed

•

Precision/accuracy

•

Order

•

Unambiguity/ no vagueness

•

Continuity

•

Predictability

Structure of the Bureaucratic Model •

Division of labor (functional specialization)

•

Well-defined hierarchy of authority (centralization of authority)

•

Systems of rules for employees and work procedures

•

Impersonal organizational relationships

•

Selection and promotion solely on competence

•

Career employment and well-defined promotion path to top of organization

•

Organizational transactions extensively documented

Contributions and Limitations Contributions –

Prescriptions for how to manage organizations

–

Search for “one best way” to manage to lead to greater organizational efficiency

–

Spurred additional research into management and organizational systems

–

Limited view of employees as resources without social needs

–

Pursuit of “one best way” (universal principles) to manage

–

“Control-oriented” approach creates an inflexible, mechanistic organization

Limitations