SCIENTIFIC MANAGEMENT SCHOOL
• The concept was introduced by F.W.TAYLOR in USA in the
beginning of 20th
• Scientific management theory arose in part from the need to increase
• Scientific management was concerned with operational efficiency at
the production level.
• This concept was further carried on by Frank & Lillian Gilbreth,
Henry Gantt, Geoge Breth etc.
PRINCIPLES OF SCIENTIFIC MANAGEMENT
• Replacement rule of thumb with science :-
1) Scientific management, organized knowledge should be applied instead
of rule of thumb
2) Scientific method denote precision in determining any aspect of work,
rule of thumb emphasis estimation.
• Harmony in group action :- Mutual give & take situation. Harmony in
group rather than discord.
1) Mutual understanding & change in thinking.
2) Discourage chaotic individualism
DIFFERENTIAL RATE SYSTEM
• This system is called as compensation system.
• This system involving the payment of higher wages to more
• Hanery L. Gantt is one of the follower of Taylor’s intensive system.
• He come up with the idea, every worker who finished a day’s assigned
work load would win a 50 percent bonus. Then he added a second
motivation. The supervisor would earn a bonus if all the workers reached
it. This, Gantt reasoned, would spur supervisors to train their workers to do
a better job.
• Gilbreth focus on motion activity & fatigue and ways of promoting
the individual worker’s welfare.
• By this study worker’s morale would increase.
LIMITATIONS OF SCIENTIFIC MANAGEMENT
• Aggressive mechanical view of production & sidelined human
aspect. This created aggressive attitude among workers.
• High degree of authoritarian approach workers were not allowed to
raise their voice even for genuine grievances.
• Standards were made without considering the Factors affecting it.
CLASSICAL MANAGEMENT SCHOOL
• Classical organization theory grew out of the need to find guidelines
for managing such complex organization as factories.
• Henri Fayol was founder of the Classical Management School.
• Fayol was interested in total organization & given importance to top
• This concept was further carried on by Max Weber, Mary Parker
Follett & Chester I. Barnard.
GENERAL PRINCIPLES MANAGEMENT
1. DIVISION OF LABOUR – The more people specialize ,the more
efficiently they can perform their work,
2. AUTHORITY AND RESPOSIBILITY-Authority may come
from official (Position) & personal (Qualities) factors responsibility
comes from assignment of work.
3. DISCIPLINE – Members in an organization need to respect the
rules & agreements that govern the organization .
4. UNITY OF COMMAND – Each employee must receive
instructions from only one person, to avoid conflicts in instructions
& confutation of authority.
• UNITY OF DIRECTION –Each group of activity with same
objective and one plan ( provides better co-ordination in
• SUBORDINATION OF INDIVIDUAL TO GENERAL
INTEREST -In any undertaking, the interest of employees should
not take importance over the interest of the organization as whole.
• REMUNERATION OF PERSONNEL – Compensation for work
done should be fair and satisfactory to both employees and
• CENTRALISATION- This term refers to the degree to which
subordinates are involve in decision making .
• SCALAR CHAIN/HIERARCHY – Authority should move from
higher to lower. communication must have flow.
ORDER – Materials and people should be in the right place and
EQUITY –Managers should be kind and fair to their subordinates..
STABILITY OF STAFF - Managers should provide orderly
personnel planning & ensure that replacements are available to fill
INITIATIVE –Subordinates should be given the freedom to
conceive and carry out their plans ,even though some mistake may
ESPRIT DE CROPS – Promoting team spirit will build harmony &
unity within the organization.
• Max Weber ( 1864-1920) developed a theory of bureaucratic
management (Formal structure).
• Stressed strictly defined hierarchy governed by Cleary defined
regulation & line of authority.
ZERO OF INDIFFERENCE
(AREA OF ACCEPTANCE)
• According to Barnard individual & organizational purposes could be
kept in balance if managers understood an employee’s Zone of
Indifference (What the employee would do without questioning the
THE BEHAVIOUR SCHOOL
• A group of management scholar trained in sociology, psychology, &
related fields, who use their diverse knowledge to propose more
effective ways to manage people in organizations.
HUMAN RELATIONSHIP APPROACH
• The human relations movement arose from early attempts to
systematically discover the social and psychological factors that
would create effective human relationship.
• How manager interact with other employees or recruits.
• THE HAWTHORNE EXPERIMENT-The possibility that workers
who receive special attention will perform better simply because
they received that attention.
• According to maslow, the needs that people are motivated to satisfy
fall into a hierarchy.
• Physical and safety needs are at the bottom of the hierarchy, and at
the top are ego and self-actualizing needs.
• In general maslow said lower level needs must be satisfied before
higher level needs can be met.
THE SYSTEM APPROACH
• View of the organization as a unified, directed system of interrelated
• A system is identified because it has a boundary.
• Two types of system – open and closed
• Subsystems: Those parts making of whole system.
• Synergy: In organizational terms, synergy means that departments that
interact cooperatively are more productive than they would be if they
operated in isolation.
• Open & Closed System: A system is considered an open system if it
interacts with its environment; A system is considered a closed system
if it does not interacts with its environment.
• Feedback: The part of system control in which the results of actions
are returned to the individual, allowing work procedure to be analyzed
and corrected .
THE CONTINGENCY APPROACH
• The view that the management technique that best contributes to the
attainment of organizational goals might vary in different types of
situations or circumstances
• According to the contingency approach, the manager’s task is to
identify which technique will, in a particular situation, under
particular circumstances, and at a particular time, best contribute to
the attainment of management goal.
• Take action as per the situation.