Evolution of Management

Management

• Management is the force that unites human and non-human resources

in the service of organizational goals.
• It is a process of getting Organization related outcomes with and
through people.
Importance of Management

 Optimum use of resources

 Effective leadership and motivation
 Establishes sound industrial relations
 Achievement of goals
 Change and growth
 Improves standard of living
 APPROACHES TO ORGANISATIONAL BEHAVIOR

CLASSICAL APPROACH
The classical approach to organisational behaviour emphasized on the
Planning of work,
Technical necessities of an organisation,
Principles and concepts of management
The assumption of logical behaviour.
.
The classical approach to organisational behaviour was based on the
management theories laid down by various scholars, such as Taylor, Fayol,
Urwick, Mooney and Reiley.
Following three (Mooney and Reiley) apply to all types of organisations:
The principle of co-ordination: This principle emphasizes the need for people
to act together with
Unity of action (Esprit De Corps), Feeling of pride and mutual loyalty shared by
the members of a group
Need for authority and discipline in organisations
 Management Principles-Scientific Management

Scientific Management: This is based on the concept of planning work to achieve

efficiency, standardization, specialization, and simplification.
F.W. Taylor suggested four principles of scientific management in 1947
Contribution in Scientific Management

Time and motion study is most appropriate for repetitive jobs-standardization -developed
to define employee productivity standards. Time and motion study is most appropriate for
repetitive jobs.
Differential piece rate plan have assumption that all the workers have different capabilities
and must be paid accordingly- Pay as per the performance
Supervision-Foremen should assign work on the basis of workers’ specialty and supervise
the performance of workers. For that, an organisation should hire adequate number of
foremen.
Scientific recruitment and training-Taylor laid emphasis on training workers and
developing their skills so that they can efficiently perform more than one type of job
Friendly cooperation between management and workers: Taylor believed that both
management and workers have one common goal, i.e. increase in production. Therefore,
both management and workers must work together in harmony to achieve the common goal
 Theories -Scientific Management

Scientific Management: This is based on the concept of planning of work to achieve

efficiency, standardisation, specialization, and simplification.
F.W. Taylor suggested four principles of scientific management in 1947,
Standardization
No rule-of-thumb at the workplace
Scientific selection of the worker
Cooperation of management and labour rather than conflict
Scientific training of workers
Theories of Classical Approach-Bureaucratic Management

Bureaucratic Management: This theory considers the organisation as a part of

the broader society. Bureaucratic management is based on the principles of:
Structure
Specialisation
Predictability
Stability
Rationality
Democracy
Management Principles-Fayol’s principles:

Division of work:
Dividing the full work of the organization among individuals and creating departme
nts
is called the division of work.
Authority: balance between Authority (Power) and Responsibility (Duties).
Discipline: Discipline means respect for the rules and regulations of the
organization. Discipline may be Self-discipline, or it may be Enforced discipline.
Unity of command: a subordinate (employee) must have and receive orders from
only one superior (boss or manager).
• Unity of direction: One head and one plan for a group of activities with the same
objective.
All activities which have the same objective must be directed by one manager, and
he must use one plan. For example, all marketing activities such as advertising, sales
• Subordination of individual interests to the general interest: The interest of one
individual or one group should not prevail over the general good. The individual
interest should be given less importance, while the general interest should be given
the most importance.
• Remuneration: Remuneration is the price for services received. Pay should be fair
to both the employee and the firm.
• Centralization:
In centralization, the authority is concentrated only in a few hands.
• Scalar chain: The chain of command, sometimes called the scalar chain, is the
formal line of authority, communication, and responsibility within an organization.
The chain of command is usually depicted on an organizational chart, which
identifies the superior and subordinate relationships in the organizational structure.
• Order: Order for things is called Material Order and order for people is called ‘Social
Order’.
Material Order refers to “a place for everything and everything in its place.”
Social Order refers to the selection of the “right man in the right place”. There must be
an orderly placement of the resources such as Men and Women, Money, Materials, etc.
Human and material resources must be in the right place at the right time. Misplacement
will lead to misuse and disorder.
• Equity: While dealing with the employees a manager should use kindliness and justice
towards employees equally. Equity is a combination of kindness and justice.
It creates loyalty and devotion in the employees toward the organization. The equity
principle suggests that managers must be kind as well as equally fair to their subordinates.
Stability and tenure of personnel: Although it could take a lot of time, Employees need
to be given fair enough time to settle into their jobs. An employee needs time to learn his
job and to become efficient. The employees should have job security because instability
leads to inefficiency. Successful firms usually had a stable group of employees.
Initiative: Without limits of authority and discipline, all levels of staff should be
encouraged to show initiative. Management should encourage initiative. That is, they
should encourage the employees to make their own plans and execute these plans. This is
because an initiative gives satisfaction to the employees and brings success to the
organization.
Esprit de corps: Esprit de Corps means “Team Spirit”. Therefore, the management
should create unity, cooperation, and team spirit among the employees. They should avoid
dividing and rule policy. Harmony, and cohesion among personnel. It’s a great source of
strength in the organization. It is a quality in every successful business.
 NEO-CLASSICAL APPROACH

• Elton Mayo (1880-1949):

• Mary Parker Follett (1868-1933):
• Abraham Maslow:
• Douglas-McGregor (1906-1964):
• Rensis Likert (1903-1972):
Neo–Classical Theory

• The human relations theory (also called neo-classical theory) tried to compensate
for the deficiencies in classical theory (scientific management and administrative
management)
• It gives insights from behavioural sciences like psychology, sociology and
anthropology. This theory gained popularity after the famous studies of human
behaviour in work situations conducted at the Western Electric Company from
1924 to 1933. These studies eventually became known as the ‘Hawthorne Studies’
because many of them were conducted at Western Electric’s Hawthorne plant near
Chicago.
 NEO-CLASSICAL APPROACH

• The Hawthorne Experiment formed the basis of the neo-classical approach to

organisational behaviour.
• Most views of neoclassical thinkers are human-centric as against the authority-
centred views of the classical organisational theory
• Organisation is a social system in which individuals work together to achieve
major objectives.
• This approach is people-oriented and can be referred to as the human resource
approach.
• Neo-classical approach is basically a behavioural science approach and lays
emphasis on the human relations in organisations.
NEO-CLASSICAL APPROACH

• Organisation situation should be viewed in social as well as economic and

technical terms.
• The social process of group behaviour should be understood while organising the
structure.
• The neo-classical theory states that the fulfilment of employee needs with regard
to recognition, role in decision making and overall satisfaction is essential to
improve employee efficiency. The main postulates of the neo-classical approach
are given as follows:
• The neo-classical theory suggests that the organisational structure should be
developed in such a way that it helps in achieving the basic propositions of the
theory.
Hawthorne experiments
Hawthorne experiments

• First experiment was carried out in 1924-27, to assess the effect of

different levels of illumination (lighting) on the productivity of labour.
• The brightness of the light was increased and decreased to discover its
effect on the productivity level of the test group.
• Observation
• It was observed that labour productivity increased even with low
levels of lighting,
The Interpretation of Ist experiments These factors were identified as follows:
• The social and psychological factors that affected labour productivity and job
satisfaction.
• The informal relations between employees that influenced the employees’ behaviour
and performance in the organisation.
• The level of participation in the organizational decision-making process.
• The belief amongst employees that the management was interested in their welfare.
• The fact that employees were treated with respect and dignity.
• Proper communication between superiors and subordinates.
• Freedom of expression to workers.
• The second experiment, which began in 1927, was carried out in the
relay assembly department, where electromagnetic switches for
telephone connections were produced. Western Electric manufactured
about 7 million relays in a year. As the speed of workers determined
the overall production levels, the effects of factors, such as rest periods
and work hours, were assessed in the experiment.
• The third experiment was carried out in a separate test room with 6
women. 1 of the women prepared parts for the remaining 5 women to
assemble. The women released the finished relays into a shaft, where a
recording device punched a hole in the moving paper tape. The
number of holes revealed the production rate for each worker.
Difference in Classical and Neoclassical