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Ê Inter-related functions

Ê Guiding principles

Ê Bureaucratic structure

Ê Reward-punishment nexus
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Ê Given by MAX WEBER, the German

Sociologist, through his work ǮThe Theory of
Social and Economic Organisationǯ in 1920
Ê An organisation characterised by
 rules, procedures, impersonal relations, and
 elaborate and fairly rigid hierarchy of authority-
responsibility relationships
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Ê xierarchy
Ê Division of work
Ê Rules, Regulations and Procedures
Ê Records
Ê Impersonal relationships
Ê Administrative class
 6 




Ê Given by xenry Fayol, the French

Industrialist

Ê Most significant publication:

ǮGeneral and Industrial Managementǯ in

1916
 6 



Functions of management originally given
by Fayol
 ½

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Ê Division of Work

Ê Parity of Authority and Responsibility

Ê Discipline

Ê Unity of Command

Ê Unity of Direction
 ½

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Ê Subordination of Individual to General

Interest
Ê Fair Remuneration to Employees
Ê Centralisation and Decentralisation
Ê Scalar Chain
Ê Order
 ½

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Ê Equity

Ê Stability of Tenure of Personnel

Ê Initiative

Ê Esprit de Corps
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Ê Given by Frederick W. Taylor

Ê F. W. Taylor regarded as Father of Scientific
Management
Ê Started in the Midvale Steel Company in USA
in the early 20th century and widely adopted
in Western European countries
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Science

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 ½

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Ê Development of a science for each element

of manǯs work
Ê Scientific selection, training and
development of workmen
Ê Close cooperation between workers and
management
 ½

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Ê Division of responsibility between

management and workers

Ê Mental Revolution

Ê Maximum prosperity for employers and

employees
 
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Ô

Ô


  
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à 



      
Perspective Operative and shop Top level
floor level
oc s Technical side of d inistrative side
or of or
ttention Increasing I proving overall
prod ctivity thro gh ad inistration by
or si plification, observing certain
ti e and otion principles
st dy
N ber of s periors One or er, ore One or er, one
specialised s periors s perior
  
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à 



      
Techniques used Scientific Personal experiences
measurement of passed on in the
work through form of universal
experimentation and principles of
observation management
Personality Scientist Practitioner
Major contribution Provided the basis Produced a
for accomplishments systematic theory of
on the shop floor management which
can be studied,
analysed and applied
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    
  

  
    

  

       


   
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Ê Gained popularity after famous studies of

human behaviour in work situations conducted
at Western Electric Company from 1924 to
1933.
Ê Studies became known as the Ǯxawthorne
Studiesǯ
Ê Elton Mayo, Founder of xuman Relations
theory
 x 

{



Ê Illumination Experiment
Employees making
telephone relays

Test Group Control Group

Intensity of light Light was held

systematically constant
varied
 x 

{



Ê Relay Assembly Experiments




 

 
 


  
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$

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% 




 
 x 

{




Ê xawthorne Effect :
 Workers awareness that they are part of the
experiment
 Special attention and treatment given to
workers
 No usual restrictions imposed
 x 

{




Ê xawthorne Effect :
 Sympathetic supervision
 Performance increased simply because of added
attention and not because of specific factors
being tested
 x 

{




Ê Interviewing Programme
 3 year long interview
 Covering more than 21000
employees
 To find out the reasons for
increased productivity
 Employees were allowed
to talk freely
 x 

{



Ê Bank Wiring Room Experiment

  
 


 

%  
 
 
 





{     
 

 x 

{



Ê Bank Wiring Room Experiment

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 Ô 
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Ê Strive to create a positive work environment

 People can fulfill their own needs as well as
those of the organization
Ê The focus is on [% &
 When people management simulates more and
better work, we have sound human relations
 Ô 
 x 
 


Ê The ultimate goal: To make workers more

productive ǥ
 ǥ not just happier
 Motivating people to peak performance
 x 
 

6 

The Individual The Work Environment

The Work Group The Leader

 Ã 
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6


Ê Applies the knowledge of behavioural

sciences Ȃ psychology, sociology and
anthropology Ȃ to manage people
Ê Contribution by a number of Behavioural
Scientists
 Abraham Maslow
 Chris Argyris
 Ã 
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 Douglas McGregor
 Rensis Likert
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 Ã 
© 
6


Ê Behavioural Scientists emphasised on:

 Strong humanist organisation
 Management should deal with complex human
beings in different ways
 Self-direction, self-control, self-monitor,
creativity
 People to be treated as assets
 Ã 
© 
6

 Laid the foundation for a new discipline Ȃ
Ǯxuman Resource Managementǯ
 Contributions to the understanding of
motivation, group behaviour, inter-personal
relationships at work
 Result of the approach Ȃ job enrichment,
management by objectives, positive
reinforcement
 x 
 
x6


 
 
  

1) People need to be liked and 1) In addition to this, they want

respected to contribute to the
accomplishment of objectives

2) Manager should explain his 2) The manager should allow

plans to the subordinates and participation in important
discuss any objections they might matters as well as routine ones
have
) Permitted to exercise self- ) ontinually try to expand the
direction and self-control to subordinatesǯ use of self-control
carry out plans within narrow and self-direction
limits
 Ñ
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Ê Focuses on the use of mathematics,

statistics and information aids to support
managerial decision-making and
organisational effectiveness
Ê Three main branches have evolved over the
years:
 Management Science
 Ñ
 6

 Operations Management
 Management Information Systems
Ê Offers quantitative aids to decision-making
 Develops quantitative tools to assist in providing
products and services
Ê Primary focus is on decision-making through
quantitative tools
 Managerial choices in any situation depend on
criteria such as costs, revenues, return on
investment, impact on other areas etc.
 Ñ
 6


Ê xeavy emphasis is put on computers and

their processing capabilities
 Final solutions to problems are reduced to
mathematical formulae and these are subjected
to further analysis and processing to find viable
alternatives
 ©6


Ê ǮBig pictureǯ approach

Ê Attempts to view the organisation as a
single unified purposeful entity, composed
of interrelated parts
Ê Gives managers a way of looking at an
organisation as a whole rather than dealing
separately with various parts
 ©6


Ê ·ob of a manager is to ensure that all parts

of the organisation are coordinated
internally
 © 
6


Ê Management methods used in one

circumstance seldom work the same way in
others
Ê No single way is best for solving all
situations
Ê Appropriate managerial action depends on
the parameters of the situation