Transcript Document

THE EVOLUTION OF
THE ORGANIZATION
AND MANAGEMENT
THEORIES
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A theory is a coherent group of assumption
put forth to explain the relationship between
two or more observable facts and to provide a
sound basis for predicting future events.
Stoner: pg. 28
Why:
1. Guide management decision.
2. Shape our view of organisation.
3. Make us aware of the business environment.
4. A source of new idea.
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The Neo-Human
Relation Movement
The Contingency
Approach
The System Approach
THE EMERGENCE
OF M & O THEORIES
The Quantitative
School
The Behavioral Sc
School
Classical Management
Theories
1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990
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1900s
1940s
1970s
TRADITIONAL
THEORIES
MODIFICATION
CONTEMPORARY
EVOLUTION OF ORGANISATION AND MANAGEMENT THEORIES
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Traditional/
Classical
Theories
Scientific
Management
Efficient Task
Performance
Bureaucratic
Model
Authority & Structure
Human Relation
Administrative
Theory
Universal Management
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Principles
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Scientific Management
Scientific Management
F.W. Taylor (1856 – 1917)
Using time study, broke job into
components, design best and quickest
method of performing each component.
- Using differential rate system.
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Scientific Management
4 Basic Principles:
(i) The development of true science of management – best
method for performing job.
(ii) Scientific Selection of workers – skill and task allocation.
(iii) Scientific education and development of worker.
(iv) Intimate, friendly cooperation between management
and labour.
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Scientific Management
CONTRIBUTION OF SCIENTIFIC
MANAGEMENT
1. Modern assembly line
2. His efficiency technique being adopted by many
organisation.
3. Established job design, scientific selection and
development of workers.
4. Fostered a rational approach to solving problems
and laid groundwork for the professionalization
of management.
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Scientific Management
LIMITATION
• Do not take into account the human and
social aspects.
• Emphasis on Productivity/Profit only.
• Treat men like machine
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Administrative management Theory
Administrative management Theory
by Henry Fayol (1804 – 1925)
1st to systematize organisation.
Using scientific forecasting and proper
method of management
Macro Concept
Focus on formal organisation structure that
separate
basic
process
of
general
management.
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Administrative management Theory
Management Process
planning, organising, command,
coordination and control.
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Fayol’s 14 Principles
Administrative management Theory
1. Division of work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of individual interest to general interest.
7. Remuneration of personnel.
8. Centralization.
9. Scalar of Chain : authority.
10. Order : orderly place in organisation.
11. Equity : equity and justice
12. Stability of tenure of personnel : adaptation
13. Initiative
14. Esprit de corps.
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BUREAUCRATIC MODEL
BUREAUCRATIC MODEL
Max Weber (1864 – 1920)
Stressed the need for a strictly defined hierarchy
governed by clearly defined regulations and lines
of authority.
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BUREAUCRATIC MODEL
Organisation – take the form of a Bureaucratic
structure.
BUREAUCRATIC
MODEL
RATIONAL-LEGAL AUTHORITY
The right to exercise authority based on position.
-
position with power
-
compensation : fixed salary
-
hierarchy of authority
-
technical competence
-
governed by rules and regulations
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BUREAUCRATIC MODEL
DIMENSIONS OF BUREAUCRACY
1. Division of labour based on functional
specialization
2. A well-defined hierarchy of authority;
3. A system of rules covering the rights and duties
of position
4. A system of procedures for dealing with work
situations;
5. An impersonality in interpersonal relations.
6. A system of promotion and selection for
employment based on technical competence.
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Contribution of Fayol’s and Weber’ Theories
Much of their theories have been in use till today
e.g. - Concept of management skill
- Concept of identifiable principles for effective
managerial behaviour
- Made managers aware of the basic kinds of problems
in any organisation.
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Limitation
-
Appropriate for the past where environment was
relatively stable and predictable.
-
Today’s environments are more turbulent and
impredictable.
-
Too general for today’s highly complex
organisation and specialization.
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Human Relations Movement
Human Relations Movement
Mary Parker Follet - had considered workers as
human
Chester Bernard
- social need
- Psychological need
Individual & Group
Manager and subordinate relation
Early attempt to discover the social and
psychological
factor that would create effective human relation.
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Traditional/
Classical
Theories
Scientific
Management
Efficient Task
Performance
Modifications
Management
Science
Economic Technical
Rationality
Bureaucratic
Model
Human Relation
Authority & Structure
Administrative
Theory
Universal Management
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Principles
Behavourial
Science
Psychology,
Sociology, etc.
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Human Relations Movement
THE HAWTHORNE EXPERIMENTS
Elton Mayo
(1880 – 1949)
- Westerm Electric’s Hawthorne
Plant - Chicago
-
To study relationship between level
of lighting in the work-place and
workers productivity.
-
‘Hawthorne effect’
The Hawthorne Effect:
The possibility that workers who receive
special attention will perform better simply
because they received that attention.
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Human Relations Movement
Mayo introduced the concept of “Social man” –
motivated by social need, on-the-job relationships,
and responding more to work group pressure than
to management control – was necessary to
compliment the old concept of “rational man”
motivated by personal economic needs.
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Human Relations Movement
Contribution of H.R.
- Improved classical approach by stressing
social needs.
- Focus on workers – not on techniques.
Emphasized management skill rather than
technical skill.
- Focus on group dynamics rather than
individual.
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Human Relations Movement
Limitation
1. Assumming satisfied worker : to be more
productive workers.
2. Social environment – only one of the several
factors that influence productivity –
e.g. - salary level
- culture
- structure
- interest .
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The Behavioral Science School
The Behavioral Science School
HR developed into BS
Introduced fields like:

Psychology

Sociology

Anthropology
HR: Social man – motivated by desire for form
relationships with others.
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The Behavioral Science School
Behavioral Science:
Argyris, Maslow, McGragor:Self-actualizing – a more accurate concept
to explain Human Motivation.
“Complex man”
No two people are exactly alike.
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The Behavioral Science School
CONSTRIBUTION OF BEHAVIOURAL SCIENCE
- Enormous contributions to understanding of
individual
motivation,
group
behaviour
interpersonel relationship at work and the
importance of work to human beings.
-
Continue to contribute new insights in important
areas
as
leadership,
conflict,
power,
organizational change and communication.
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The Behavioral Science School
LIMITATIONS
- Its potential not fully realized .
-
managers
resist suggestion.
-
Model, theories and jargon are too
complicated and abstract to practicing
manager.
-
Difficult to interpret by practicing managers.
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MANAGEMENT SCIENCE SCHOOL
MANAGEMENT SCIENCE SCHOOL
-Quantitative
-Operation research
-Formed during World War II by British to solve a
number
of
new, complex problem in warfare.
-Application of OR in the industry after the war to
solve
problems related to planning and controlling in
Management.
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MANAGEMENT SCIENCE SCHOOL
CONTRIBUTIONS
In planning and controlling activities in
development of product strategies, human
resource development programme, product
schedule etc.
LIMITATIONS
Mathematical basis
complicated
practicing manager.
of
management
is
too
for
Inadequate in dealing with sociology, psychology
at work.
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Traditional/
Classical
Theories
Scientific
Management
Efficient Task
Performance
Modifications
Management
Science
Contemporary
Approaches
System Approach
Economic Technical
Rationality
Subsystem &
Environment
Bureaucratic
Model
Human Relation
Authority & Structure
Administrative
Theory
Universal Management
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Principles
Behavourial
Science
Psychology,
Sociology, etc.
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Contingency View
No Best Method
-Situational Factors.
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Environment
A
D
B
E
Sub-systems
C
System Approach
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Environment
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SYSTEM APPROACH
DEFINITION OF SYSTEM
“A system is defined as an organised, unitary whole
composed of two or more interdependent parts,
components, or subsystems and delineated by
identifiable boundaries from its environmental
suprasystem.”
- (Kast + Rosenweig, pg. 103)
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SYSTEM APPROACH
THE SYSTEM APPROACH
Concepts:Subsystems
Synergy
Open and close systems
System Boundary
Flow
Feedback
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THE CONTINGENCY APPROACH
Situational Approach
It depends upon what – in what way
To identify which technique will, in particular
situation, under particular circumstances and at
a particular time – best contribute to the
attainment of goals.
For Examples:
Unskilled workers – work simplification
Skilled workers – job enrichment might be effective.
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Traditional/
Classical
Theories
Scientific
Management
Efficient Task
Performance
Modifications
Management
Science
Economic Technical
Rationality
Contemporary
Approaches
System Approach
Subsystem &
Environment
Bureaucratic
Model
Human Relation
Authority & Structure
Administrative
Theory
Universal Management
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Principles
Behavourial
Science
Psychology,
Sociology, etc.
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Contingency View
No Best Method
-Situational Factors.
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IN CONSTRUCTION
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IN CONSTRUCTION
TRADITIONAL
PROCUREMENT
APPROACH
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NON
TRADITIONAL
PROCUREMENT
APPROACHES
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TRADITIONAL APPROACH
Client
Architect
contractor
Design team
Hand on Method
PD
Design
t
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Sub-contractors
Const.
Occup.
tender
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NON TRADITIONAL APPROACHES
DESIGN AND
BUILT
Client
Contractor
Design team
PD
D/B
O
t – t1
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3.
Turnkey Approach
PD
D/B
O
t – t2
4.
BOOT
PD
D/B
O
t
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Project Management
Non-executive
Client
Design team
Contractor
PM/Executives
(Coordinator)
P.M. Executive
Client
PM
Design team
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Construction Team
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Construction Management
Client
PM
Design team
Management Contracting
SKL Construction/Trade
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THE END
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THANK YOU
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