Module I Foundations of Management Theories
Module I Foundations of Management Theories
Module I Foundations of Management Theories
Chapter 1
Foundations of Management Theories
Classical Management Theory School
Contributions of:
•F.W. Taylor
•Henri Fayol
• Max Weber
• Mary Parker Follett
• Chester I. Barnard
CLASSICAL MANAGEMENT THEORIES
It does not take into account social needs or job satisfaction, but
instead advocates a specialization of labor, centralized leadership
and decision-making, and profit maximization
The Scientific Management School
Contributions of:
• Taylor
• Gantt
• The Gilbreths
The Scientific Management School
• It is a management approach which was aimed to scientifically
determine the best methods for performing any task & thereby
selecting, training and motivating workers.
Henry L. Gantt
(1861-1919)
Gantt Chart..
Know ur Management Gurus…
Frank Gilbreth ( 1868-1924) & Lillian Gilbreth (1878-1972)
Contribution of The Gilbreths…
Henri Fayol
(1841-1925)
Henri Fayol’s Theory…
• The theory focuses mainly to identify the principles and skills that underlie
effective management.
❑ Division of Labor
❑ Authority
❑ Discipline
❑ Unity of Command
❑ Unity of Direction
❑ Subordination of individual interest to the common good
❑ Remuneration
❑ Centralization
❑ The Hierarchy
❑ Order
❑ Equity
❑ Stability of staff
❑ Initiative
❑ Espirit de Corps (Team Spirit)
Theory of Bureaucracy
Max Weber
(1864-1920)
Know ur Management
Gurus…
Max Weber’s concept of Bureaucracy…
• In the competitive Global market of the 1990s organizations like those of GE &
Xerox have become “Bureaucracy Busters”
Max Weber’s concept of Bureaucracy…
The premise of this inclusion was based on the idea that the role
of management is to use employees to get things done in
organizations
Neoclassical Organization Theory
• The neoclassical theorists gained their reputation by attacking the
classical theories.
– Important source of the power and politics, organizational culture, and
systems theory.
• Herbert Simon.
– Bounded rationality and satisficing.
– Programmed and unprogrammed decision-making.
– Management information systems.
Neoclassical Organization Theory
• The impact of sociology.
– Philip Selznick – Organizations are made up of individuals whose
goals and aspirations may not coincide with the organization’s.
The Human Relations Movement
Elton Mayo
(1880-1949)
Hawthorne Studies….
• The human relations movement grew out of a famous series of
studies conducted at the Western Electric Company (at the
Hawthorne Plant near Chicago) from 1924 to 1933
The Hawthorne Effect…
Ramesh was at the brink of the end of his Anita Srivastava, an experienced HR
career as an Operations manager in a leading manager joined this organization and
Iron & Steel manufacturing PSU. Being a recommended the MD to introduce an
diligent engineer he believed in doing things organic work culture & environment in
systematically as per strict process this company. Her philosophy was
guidelines and directives. He hardly had participation, team work, benevolent
concern for people working under him and work environment & learning from one
used to say “its just waste of time & money.” another.
Case Study
OB & Mgt
Principles
Systems Interactionalism
Approach Approach
Business Environment ORGN. PROCESS Business Environment
Feedback
Systems Approach
Universal vs Contingency Approach of OB
Organizational Universal approach
The one best way of
Problems or Situations Responding
determine
Contingency approach
Interactionalist Approach
Individual
Behaviour
Situation
Behavioral Science School of Thoughts
Behavioral Science Approach
• Application of sophisticated research methods related to social
sciences comprising of the study of psychology, sociology and
anthropology
Abraham Harold
Maslow:
Why?
Features:
• To study experience through cases
• To identify successes & failures
Limitations:
• Situations are all different
• Limited value for development of Management Theory
The Management Science School
• The management Science School emphasizes upon approaching
management problems through the use of mathematical techniques
for their modeling, analysis, and solutions.
YES
E = F ( Xi, Yi )
NO
YES
E = F ( Xi, Yi )
NO
Limitations:
• Pre-occupation with mathematical models.
• Many aspects in managing cannot be modeled.
• Mathematics is an useful tool, but hardly a school or an approach to
management.