02.

EVOLUTION OF MANAGEMENT THOUGHT

MANAGEMENT APPROACHES

WESTERN MGT:

EASTERN MGT:

*Classical Approaches SCIENTIFICE ADMINISTRATIVE BUREACRATIC MGT *Behavioral Approach *MGT: Science Approach *System Approach *Contingency Approach *Contemporary Western MGT: Theories

*Japanese Approach *Sri Lankan approach

Scientific Approach : FW Taylor , Frank & Lillian Gilberth

Improvement of operational efficiencies through the systematic & scientific study of work method tools & performance standards.

Assumptions: * Economic rational Man * Only one best method of working * Workers have potential to work in any method given Contributions: * Work study * Incentive wages schemes * Charting techniques Drawbacks (Disadvantages): Economic Rational man Man is not always taking rational decisions Job become boring & dull Cause of highly specialized labors error of one will corrupt whole production process

Administrative Management Henry Fayol Focus on improve whole organizations efficiency instead of individual.

Financial

Technical

ORGANISATION ACTIVITIES

Commercial

Managerial

Accounting Security

Plan

ELEMENTS Organize OF Command MANAGEMENT

Co-ordinate Control

Fayol listed 14 principles of Management. They are: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Division of labor Authority Discipline Unity of command Unity of direction Subordination of individual interest to common goal Remuneration Centralization The hierarchy Order Equity Stability of staff Initiative Spirit of the corps

Bureaucracy : Max Webber Strictly defined hierarchy governed & clearly defined objectives.

The Behavioral Approach : Elton Mayo Hawthorne experiment was to test the relationship between the level of lightning in the workplace & worker productivity. Hawthorne effect is if any special attention is paid to a person or a group of persons, simply because of the specific attention there will be a motivation to work & productivity will improve

The Management Science School In here provide various mathematical models & programs to solve business problems. ( This has been established after the 2nd world war )

System Approach to Management In here organizations consider as unified purposeful system composed of interrelated parts. Consider organization as a whole large portion in external environment.

Contingency Approach This argues there is no best way of management rater different techniques, tools, structure & styles of management will be suit to different situations.

Contemporary Western Management Peter & Waterman

Promoting autonomy & entrepreneurship Maximize productivity through people Staying close to customer PETER & WATERMAN APPROACH Using hands on approach to managing Do what company know best

Getting things done on time

Maintain a simple lean Promote both centralize & decentralize Simulations organization culture

Japanese Management Approach Theory Z by William Ouchi

TYPE A : Traditional US Company Shorter term employments Individual decision making Individual Responsibility Rapid Evaluation & Promotions Explicit control mechanism

TYPE D : Traditional Japanese Company Life time employment

TYPE Z Long term employment

Collective decision making Collective responsibility Slow evaluation & promotion Implicit control mechanism

Collective decision making Individual responsibility Slow evaluation & promotion Implicit informal control with explicit formalized measures

Consider employee as employee

Consider as a person

Consider as a family member