1. The Evolution of
Management Thought

2. The Evolution of Management Theories for
Organization

3. Scientific Management
Theory

4. Administrative
Management Theory

5. Administrative Management Theory
• Administrative
Management
– The study of how to
create an organizational
structure that leads to
high efficiency and
effectiveness.

6. max Weber's
theory

7. Administrative Management Theory
Max Weber ( 1864-1920) German sociologist
He has given the bureaucratic model. He
developed the principles of bureaucracy as a
formal system of organization and
administration designed to ensure efficiency
and effectiveness.
It is the most important means of controlling
over human beings.

8. Weber’s
Weber’s
Principles of
Principles of
Bureaucracy
Bureaucracy

9. Weber’s Principles of Bureaucracy
:Hierarchy of authority:
Authority can be exercised effectively when positions are arranged
hierarchically, so employees know whom to report to and who reports to
them.
In a bureaucracy, a manager’s formal authority derives from the position
he or she holds in the organization.
Division of labour : There should be a division of labor based upon
competence and functional specialization

10. Weber’s Principles of Bureaucracy
Impersonality:
People should occupy positions because of their performance, not
because of their social standing or personal contacts.
Specified system of task and responsibility:
The extent of each position’s formal authority and task
responsibilities and it’s relationship to other positions should
be clearly specified.

11. Weber’s Principles of Bureaucracy
Written rules of conduct
Managers must create a well-defined
system of rules,
standard operating
procedures, and norms so they
so that they can
effectively control
behavior .

12. Rules, SOPs and Norms
• Rules – formal written instructions that specify actions
to be taken under different circumstances to achieve
specific goals
• Standard Operating Procedures (SOPs) – specific
sets of written instructions about how to perform a
certain aspect of a task
• Norms – unwritten, informal codes of conduct that
prescribe how people should act in particular situations

13. AdvAntAges
And
disAdvAntAges

14. Advantages
• No confliction among job duties
• Promotion is based on experience and merits.
• Employees are bound to follow rules and management
process becomes easy
• Division of labour helps workers in becoming experts.

15. Disadvantages
• System suffers from too much of red tape and paper
work.
• Human factor is neglected due to excessive emphasis
on rules
• Employees don’t develop belongingness to the
organization
• Employees resist change.

16. Behavioural
Management Theory

17. Behavioral Management /Human
relations approach
Behavioral Management
– The study of how managers should
personally behave to motivate employees
and encourage them to perform at high
levels and be committed to the achievement
of organizational goals.

18. Behavioral Management
It was concerned that scientific
management ignored the human side of
the organization.
It began with the Hawthorne experiments
by Elton Mayo and important
contributions have been made by Douglas
Mc.Gregor

19. Features of the theory
 An organization is more than a formal structure
of positions. It is a system of interpersonal and
intergroup relationships.
Management must understand human behavior
Higher motivation and productivity can be
obtained through good human relations which
can be developed through
Leadership
Communication
Employee participation

20. theory X
And
theory y

21. Theory X and Theory Y
It is given by Douglas McGregor. He
proposed the two different sets of
assumptions about workers.
In his book “ the Human side of
enterprise”states that people can be
managed in two ways.

22. Theory X and Theory Y
Theory X
Assumptions :
 The average worker is lazy, dislikes work and will do as
little as possible and tries to escape it whenever possible
 Managers must closely supervise and control through
reward and punishment.
 Many employees rank job security on top, and they have
little or no aspiration/ ambition.
 Employees generally dislike responsibilities and from
responsibilities.
 An average employee needs formal direction.

23. Theory X and Theory Y
– Theory Y
Assumptions:
 Workers are not lazy, want to do a good job
 They view work as natural and enjoyable
 Employees are committed to objectives and exercise self
control and self direction for their attainment.
 If the job is rewarding and satisfying, then it will result
in employees’ loyalty and commitment to organization.
 They can learn and even seek responsibility.
 All people are capable of making creative and innovative
decisions

24. implications

25. The Hawthorne Studies
Studies of how characteristics of the work
setting affected worker fatigue and
performance at the Hawthorne Works of
the Western Electric Company from
1924-1932.

26. The Hawthorne Studies
– Worker productivity was measured at
various levels of light illumination.
– Researchers found that regardless of
whether the light levels were raised or
lowered, worker productivity
increased.

27. The Hawthorne Studies
Human Relations Implications
– Hawthorne effect — workers’ attitudes
toward their managers affect the level of
workers’ performance

28. The Hawthorne Studies
• Human relations movement – advocates
that supervisors be behaviorally trained
to manage subordinates in ways that
elicit their cooperation and increase their
productivity

29. The Hawthorne Studies
Implications
• Behavior of managers and workers in
the work setting is as important in
explaining the level of performance as
the technical aspects of the task

30. The Hawthorne Studies
• Demonstrated the importance of
understanding how the feelings,
thoughts, and behavior of work-group
members and managers affect
performance

31. Management Science
Theory

32. Management Science Theory
• Contemporary approach to management
that focuses on the use of rigorous
quantitative techniques to help
managers make maximum use of
organizational resources to produce
goods and services.

33. Management Science Theory
– Quantitative management — utilizes
linear and nonlinear programming,
modeling, simulation, queuing theory
and chaos theory.
– Operations management —
techniques used to analyze any
aspect of the organization’s production
system.

34. Management Science Theory
– Total Quality Management (TQM) —
focuses on analyzing input,
conversion, and output activities to
increase product quality.
– Management Information Systems
(MIS) — provides information vital for
effective decision making.

35. Organization
Environment Theory

36. Organizational Environment Theory
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

37. The Open-Systems View
Open System
– A system that takes resources for its
external environment and transforms
them into goods and services that are
then sent back to that environment
where they are bought by customers.

39. The Open-Systems View
– Inputs: the acquisition of external resources
to produce goods and services
– Conversion: transforms the inputs into
outputs of finished goods and services.
– Output: the release of finished goods and
services to its external environment.

40. Closed System
• A self-contained system that is not
affected by changes in its external
environment.
• Likely to experience entropy and lose its
ability to control itself

41. Systems
• Synergy – the performance gains that
result from the combined actions of
individuals and departments
– Possible only in
an organized system