CHAPTER - II

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CLASSICAL THEORY
Scientific Management Theory: (efficiency on productivity) 2. Administrative Management Theory: (To solve problem of top management) Henry Fayol Max Weber (sociologist) Principle of bureaucracy Chester Barnard Function of Executives Mary Parker Social Philosopher
1.
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Scientific Management Theory

Frederick Winslow Taylor (March 20, 1856 March 21, 1915) was an American mechanical engineer who sought to improve industrial efficiency. He is regarded as the father of scientific management and was one of the first management consultants. Taylor was one of the intellectual leaders of the Efficiency Movement and his ideas, broadly conceived, were highly influential in the Progressive Era.
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Cont..

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Problem of Scientific Management

Managers often implemented only the increased output side of Taylor plan. They didnt allowed workers to share in increased output. Specialized job become very boring. Workers ended up distracting scientific management. Management responded with increased of machines.

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Administrative Management School

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FIG..

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KEY POINTS TO BUREAUCRACY

Authority is the key point to hold people accountable for their actions. Position in the firm should be held based on performance not social contracts. Position duties are clearly identify. People should know what is expected from them. Line of authority should be clearly identified. Workers know who reports to whom. Rules, standard, operating procedures and norms used to determine how the firms operates.
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HENRY FAYOL
Father of Modern Management He divided industrial activities into six groups: Technical Financial Commercial Security Accounting Managerial And his 14 principles.

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BEHAVIORAL SCIENCE THEORY

1.

Human Relation Approach: (Hawthorne experiment)

2. Behavioral Science Approach

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Human Relation Approach

The Hawthorne effects that observing, surveying and showing an interest in workers and the workplace have on the performance of the workers and their productivity.

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CONT..

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FIG..

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FOUR PHASES OF STUDY

1.

2.
3. 4.

Illumination study Relay assembly test room experiment Mass interviewing program Bank wiring observation room experiment

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Illumination study

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Relay assembly test room experiment

These view contributed to Mayo and Roethlisberger's conclusion that mental attitudes, proper supervision and informal social relationships experienced in a group were key to productivity and job satisfaction.

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Four general conclusions

The aptitudes of individuals are imperfect predictors of job performance. Although they give some indication of the physical and mental potential of the individual, the amount produced is strongly influenced by social factors. Informal organization affects productivity. The Hawthorne researchers discovered a group life among the workers. The studies also showed that the relations that supervisors develop with workers tend to influence the manner in which the workers carry out directives.
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Cont..

Work-group norms affect productivity. The Hawthorne researchers were not the first to recognize that work groups tend to arrive at norms of what is a fair day's work; however, they provided the best systematic description and interpretation of this phenomenon. The workplace is a social system. The Hawthorne researchers came to view the workplace as a social system made up of interdependent parts.
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BEHAVIORAL SCIENCE
It is concerned with scientific investigation, analysis and understanding human behavioral in organizations. Notable behavioral scientists are: Abraham Maslow Douglas McGregor Frederic Herzberg Merry Parker Follet

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Abraham Maslow Hierarchy of Need Theory

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Douglas McGregor Theory X and Y

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Frederic Herzberg Two Factors

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Merry Parker Follet

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Management Science

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QUANTITATIVE MANAGEMENT

Quantitative Management (also known as Operations Research) offers a systematic and scientific approach to problem solving and decision making in complex environments and situations of uncertainty and conflict. The discipline is characterized by a search for an optimal (best) answer for a problem by using quantitative (numerical) models.
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OPERATIONS MANAGEMENT

Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operations management is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization.
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TOTAL QUANTITY MANAGEMENT

The continuous process of reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience and ensuring that employees are up-to-speed with their training. Total quality management aims to hold all parties involved in the production process as accountable for the overall quality of the final product, service.

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MANAGEMENT INFORMATION SYSTEM

A management information system (MIS) provides information that is needed to manage organizations efficiently and effectively.

Management information systems are not only computer systems - these systems encompass three primary components: technology, people (individuals, groups, or organizations), and data/information for decision making.
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SYSTEM THEORY

There exist models, principles, and laws that apply to generalized systems or their subclasses, irrespective of their particular kind, the nature of their component elements, and the relation or 'forces' between them. It seems legitimate to ask for a theory, not of systems of a more or less special kind, but of universal principles applying to systems in general.
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FIG..

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ELEMENTS OF SYSTEM THEORY

Goal orientation Sub-system Open and closed system Synergy System boundary Flow of information feedback

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Synergy Effect

An effect arising between two or more agents, entities, factors, or substances that produces an effect greater than the sum of their individual effects.

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Fig..

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CONTINGENCY THEORY

Contingency theory is a class of behavioral theory that claims that there is no best way to organize a corporation, to lead a company, or to make decisions. Instead, the optimal course of action is contingent (dependent) upon the internal and external situation.

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FIG..

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Some important contingencies for company

Technology Suppliers and distributors Consumer interest groups Customers and competitors Government Unions

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