BY Muhammad Suleman MS (HRM) MBA (HRM) MIT CHAPTER # 1 BASICS OF Change Management ( THEORIES AND THOUGHTS) Classical Management Theory Scientific Management Administrative Management Behavioral Sciences Henri Fayol (1841–1925) is often described as the ‘father’ of modern management. He had been managing director of a large French mining company, and was concerned with efficiency at an organizational level rather than at the level of the task. he developed a general theory of business administration He first broke management down into five distinct elements: forecasting and planning – looking into the future and drawing up action plans organizing – building up the material and human structure of the undertaking commanding – maintaining activity amount personnel coordinating – unifying and harmonizing activity and effort controlling – ensuring that things conform to rules and instructions Scientific management is defined as the use of the scientific method to define the “one best way” for a job to be done. Frederick W. Taylor is known as the “father of scientific management”. Taylor’s work at the Bethlehem Steel companies motivated his interest in improving efficiency Frederick Winslow Taylor (1856-1915) was the first nationally known management thinker. His “Taylorism” or “scientific management” was a major contribution to business operations. Taylor sought to create a mental revolution among both workers and managers by defining clear guidelines for improving production efficiency Scientific management, also called Taylorism, was a theory of management that analyzed and synthesized workflows Its main objective was improving economic efficiency, especially labor productivity. Scientific Management is also some time called “ TASK MANAGEMENT” . An early 20th century school of management thought concerned primarily with the physical efficiency of an individual worker. Study each part of the task scientifically, and develop a best method to perform it. Carefully select workers and train them to perform a task using the scientifically developed method. Cooperate fully with workers to ensure they use the proper method. Divide work and responsibility so management is responsible for planning work methods using scientific principles and workers are responsible for executing the work accordingly. Taylor spent a considerable amount of his books in describing "soldiering" the act of 'loafing' . He described the main reasons that workers were not performing their work at the optimum. 1-The belief that increased output would lead to less workers 2. Inefficiencies within the management control system such as poorly designed incentive schemes and hourly pay rates not linked to productivity. 3. Poor design of the performance of the work by rule-of-thumb 1- Henry Foyl 2- Max Weber Max Weber was a German sociologist who wrote in the early part of the 20th century. He developed a theory of authority structures and described organizational activity based on authority relations. Max Weber He described the ideal form of organization—the bureaucracy defined as a form of organization marked by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships It is a term used for those early-day contributors who developed and taught principles to be used by managers, both individually and collectively, to improve the performance of the overall functions of the organization. MANAGER ADMINISTRATION 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Fayol gives us 14 principles of management which are still being used nowadays. These principles are given below: Division of Labor Authority Discipline Unity of Command Unity of Direction Remuneration Scaler Chain Centralization Order Stability of tenure of personnel Equity Initiative Subordination of individual interests to the general interest. Esprit de corps Hawthorne Studies Human Relations Movement Theory X Theory Y Q- Provide your comments which theory or school of thought is best for today's organizations. Q- Which theory/ theories that you consider play an important role in developing the organizations and why? Q- Provide some negative points for every theory and school of thoughts. Q- Being specialization student what suggestions you want to provide to organizations, keeping in mind theories and school of thoughts. Objective: To study the government organization’s performance and finding deficiencies and providing solution w.r.t the management schools of thoughts. Procedure: All of the students have to make common questioners about performance and deficiency in Govt Dept. Such questioners will be taken with them to different Govt Department where they will ask from high management officials. After getting feedback of such questioners, it will be properly discussed in class and being management students we will try to conclude their problems and try to provide solutions keeping in mind school of thoughts. NOTE: Try to visit at least three different government departments. All the questioners should be same PROPER CASE STUDY WILL BE DISCUSSED IN CLASS WHICH WILL HELP THE STUDENTS IN GETTING THE RIGHT WAYS, WHICH SHOULD BE IMPLEMENTED IN ORGANIZATIONS .