By Anushri Agrawal EVOLUTION OF ORGANIZATION THEORY

Size: px
Start display at page:

Download "By Anushri Agrawal EVOLUTION OF ORGANIZATION THEORY"

Transcription

1 By Anushri Agrawal EVOLUTION OF ORGANIZATION THEORY

2 Why Organisation theory? organisation are goal oriented how these can be achieved efficiently and effectively? How organisation theory evolved? Classical approach Neo- classical approach Systems approach 2

3 CLASSICAL APPROACH: (1890 S -.) Rationality focus Man is a rational economic man Focus on rationality satisfaction will be automatic NEO CLASSICAL APPROACH: (1920 S..) Rationality v/s happiness Focus on satisfaction satisfaction will be automatic approach by Amitai Man is a complex individual- socio psychological man Etzioni 1. Elton Mayo (human relations approach 1. F.W. Taylor (theory of scientific management 2. Abrahim Maslow Modern Approach: 2. Henry Fayol (General process of administration) 3. Fredrick Herzberg (1950s..) 3. Max Weber ( bureaucracy) 4. Dougles Mcgregor Systems approach (rationality & satisfaction) 5. Rensis likert contingency approach ( environment) 6. Herbert Simon 7. Curt Lewis 3

4 Scientific management by F.W.TAYLOR FIRST structured model of organisation Why? (individualistic approach, haphazard manner, trial and error method, rule of thumb, wastage inefficiency, poor productivity) What? Emphasis on efficiency ( elimination of wastages) one best way of doing things thought based working not trail and error maximum prosperity (employer) with max prosperity for employee- no inherent conflict between interest of employer and employee) 4

5 PRINCIPLES AND TECHNIQUES PRINCIPLES( what to achieve) 6 5 TECHNIQUE( how to achieve) 1. Science not rule of thumb 2. Harmony not discord 3. Corporation not individualism 4. Maximum output not restricted output 5. Development of each individual to greatest efficiency and prosperity 6. Mental revolution 1. Work studies 2. Standardization 3. Separation of planning and execution 4. Concept of functional foremanship 5. Piece wage plan 5

6 PRINCIPLES: Harmony not discord us v/s them Genuine saving in cost Win- win Non Zero sum game Science, not rule of thumb No Trial and error Efficiency on sure, sustainable and replicatable basis Orderlines s analysis and logic Methodica l enquiry Cooperation, not individualis m Systemati c Institution alized help No grab all credit and blame for failure Max output not restricted output Zero tolerance for wastage soldering Greater efficiency and prosperity among all Scientific training Fair share in rewards of prosperity Mental Revoluti on psycholo gical reorientatio n of both Feeling of reciprocit y 6

7 SPECIALIZATION STANDARDISATION PRODUCTIVITY INCENTIVES Planning- Execution Separation Functional Foremanship Work - study Standardizatio n Differential piece wage plan best method uniformly used institutionali sed help Super specialization Competent and specialized assistance Functional authority rather than line authority Against unity of command 8 bosses one subordinate detailed & rigorous study Time, Motion, method and fatigue study Scientific enquiry Time standard Cost std Work conditions, machine and tools, institution Science, no rule of thumb Max output not min output Methodical and logical approach According to respective output at an escalating differential level Virtuous circle Auto goal congruency 7

8 Differential piece wage plan 8

9 Henry Fayol 9