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Management Foundations Module 1 Part 2/2 Evolution of Management Theories …

- - - - Formalized rules and procedures
      - Hierarchy of authority
      - Impersonality in management
    - - Rational Legal
      - Traditional
      - Charismatic
    - - Efficiency in large organizations
      - Clear chain of command
      - Consistent decision-making process
    - - Over-reliance on rules and regulations can stifle creativity
      - Can lead to dehumanization of workers
  - - - Efficiency and productivity
      - Standardization of tasks
      - Time and motion studies
      - Division of labor
    - - Science not rule of thumb
      - Harmony in group action
      - Max output
      - Scientific selection, training and placement of workers
      - Equal division of work and responsibilities between workers and managers
    - - Defined clear roles for workers and managers
      - Increased focus on performance measurement
      - Led to the development of assembly line work
    - - Organisational view is given preference over managers view
      - Over-emphasis on efficiency, ignoring human aspects
      - Can lead to worker alienation and dissatisfaction
  - - - 6 Activities to divide business operations
      - 14 Principles of Management
      - Functional areas of management
    - - Division of work
      - Authority and Responsibility
      - Discipline
      - Unity of Command
        
        Only 1 boss
      - Unity of Direction
        
        Everybody works in one direction
      - Subordination of Individual Interests
        
        Company is bigger than individual
      - Remuneration
      - Centralization
        
        Avoid extreme centralisation or decentralisation
      - Scalar Chain
        
        Communication path in org
      - Order
        
        All thing are place in well defined place
      - Equity
        
        Justice
      - Esprit de Corps (team spirit)
        
        Sense of Union
        
        Team Spirit
      - Stability of Tenure
        
        Don’t switch jobs too frequently
      - Initiative
    - - Planning
      - Organizing
      - Commanding
      - Coordinating
      - Controlling
    - - Developed a general theory of business administration
      - Applicable across various industries
    - - Overly hierarchical and rigid structure
      - Assumes one-size-fits-all management principles
- - - - Focus on human factors in management
      - Hawthorne Studies
      - Employee motivation and satisfaction
      - Social needs over economic needs
    - - Illumination Experiment
        
        Studied the effect of lighting on productivity
        
        Findings: Productivity increased irrespective of lighting conditions
        
        Conclusion: Attention to workers’ social needs matters
      - Relay Assembly Room Experiment
        
        Isolated group of women to study work conditions
        
        Improved conditions (breaks, meals) led to better productivity
        
        Concluded that social interaction, feeling valued, mattered more
      - Bank Wiring Observation Room Experiment
        
        Studied a group of male workers to understand group dynamics
        
        Found that social groups influence individual behavior more than management instructions
      - Contribution of Human Relation approach or Hawthrone Studies
        
        Social System
        
        Social Enveronment
        
        Informal Organization
        
        Group Dynamics
        
        Communication
        
        Non Economic Rewards
        
        Conflicts
    - - Emphasized importance of employee well-being
      - Led to modern human resource management
    - - Limited scientific basis for findings
      - Over-reliance on social factors for productivity
  - - - Study of employee behavior
      - Leadership styles
      - Motivation theories
    - - Physiological Needs
      - Safety Needs
      - Social Needs
      - Esteem Needs
      - Self-Actualization
    - - Hygiene Factors (prevent dissatisfaction)
      - Motivators (drive satisfaction)
    - - Theory X
        
        Assumes workers are inherently lazy
        
        Workers need close supervision
        
        Motivation comes from threats and punishment
      - Theory Y
        
        Assumes workers are self-motivated and enjoy responsibility
        
        Emphasizes decentralization and trust
        
        Management's role is to facilitate self-direction
      - Additional Points
        
        Theory X is more controlling and authoritative
        
        Theory Y is more participative and empowers employees
        
        Application of either theory affects company culture, innovation, and employee turnover
  - - - Use of statistical models for decision making
      - Focus on improving operational efficiency
      - Operations research
    - - Application of mathematics to management problems
      - Development of management information systems
    - - Too mechanical, neglects human factors
      - Not suitable for all types of decision-making
- - - - Organizations as open systems
      - Interdependence of subsystems
      - Importance of feedback
    - - Holistic approach to management
      - Recognizes the complexity of organizations
    - - Too broad, difficult to apply directly
  - - - No one best way to manage
      - Management depends on the situation
    - - Emphasized adaptability
      - Encourages situational analysis for management practices
    - - Difficult to predict all possible situations
  - - - Continuous improvement
      - Customer focus
      - Involvement of all employees
    - - Focus on quality across the organization
      - Led to the development of quality standards (e.g., ISO)
    - - Can be time-consuming and expensive to implement
  - - - Elimination of waste
      - Continuous improvement
      - Value stream mapping
    - - Improved efficiency and