Dr.Pramod kr. Rawat (k.r.c.h.e)
principles of management
It is the force that runs a business and responsible
for its success or failure.
Meaning of management/ definition of mgt.
“mgt. is the art of getting things done through and
with people formally organized groups”
“Mgt. is the art of getting things done through others
”(Mary parker follett)
“to manage is to forecast&plan,to organise,to
command, to coordinate to control”
Nature/feature/characterstics of management
1-Management is goal oriented- all the
mgt.activities are systematically directed towards
the attainment of pre-determined objectives.
2-Manggement is the universal process2-Manggement is the universal process
----management is the universal process consistingmanagement is the universal process consisting
of the functions ofof the functions of
controlling. These functions are performed by thecontrolling. These functions are performed by the
managers at all levels of organizations and allmanagers at all levels of organizations and all
types of institutionstypes of institutions..
3-Management is the continuous process
Management is the on-going process and is also
never ending process. because every activities
starts with planning and ends with controlling.
4-Management is intangible- mgt.is unseen or
invisible force. It can not be seen but its result can
bee felt every where in the form of result.
5-Management is situational-A successful
manager must take in to account prevailing
situations in order to attain result.
6- Management is multidisciplinary-
Management techniques, principles and theories are
drawn from other disciplinary such as
7-Management is a dynamic function- it is the
dynamic function of any enterprise and it is
constantly engaged in casting and re-casting the
enterprise mould of ever-changing business
8-Management is both art and science- mgt. has
organized body of knowledge which contains
certain universal truths. So it is called science.
Mgt. contains distinct class of activities about which
knowledge can be obtained and skills in its
application required as art.
Objective of management
1-Maximum result with minimum effort-mgt. is
basically concerned with utilizing the human and
national resources available to an enterprise for
deriving the best possible results.
2-Higher efficiency- mgt. organize the resources of
production in such a way that wastage of time,
money, and efforts is minimized. And the result
productivity of the resource is increased.
3-Satisfaction of customers- management
produce products required by the customers. So
satisfaction of customers is very important.
Management always try to build a team of efficient
workers who are happy and satisfied with the
organisation.they are cooperative and contribute to the
goal of the organization.
5-Relation with suppliers- management makes a good
relation with the suppliers of raw materials and finance
so as to continue in production throughout the year.
6-Better working condition- management observe to
ensure fair wages for work, security of employment,
proper working conditions &better life for the workers.
Management raises the standards of life of the workers.
Skills of a manager
1-technical skills- it is concern with a specific kind
of activity particularly involving---
methods,process,procedures&tecniques.we can also
see the technical skills of the surgeon, the
musicion,the accountant, and the engineer. When
each is performing his own special function.
2-Human skills-manager must have human skills &
make proper coordination in between group
members increase the efficiency of team. And
manager can resolve the conflict of group
It is the most important skills of the manager. In this
case manager can observe the entire activities in the
organization depend on one and also observe that the
changes in the one part of the organization affect the
others. analysis the relationship of the business with
the community,political,social,&economic force of
4-Analytical skills- manager examine the various aspect
of issues and to understand complex characteristics. it
is the need for problem solving and decision making,
to evaluate performance and to manage complex
Technical skills deals with---jobs
Human skills deals with ---persons
Conceptual skills deals with –ideas
Analytical skills deals with—various specific
aspect and evaluate performance and to
manage complex situations.
Process of management
1-nature of management process- mgt. is the
continuous process and observe to several
elements like-planning to controlling. the cycle of
mgt. is the never ending process and repeated
over and over again.
2- circular-thethe managerial functions are interactive in
nature and they are interrelated to each-other.
3-composit-all the process of mgt.(function) of mgt. to
work for a common goal.
4-social- this concept is centered around the study of
interpersonal relations and group process and their
impact of human behaviour&performance.
Management and operative function
If management is a human body, planning
constitutes its brain,organisation is its nervous
system, direction makes up the respiratory, and
control stand for the eyes.
Planning and control is higher levels of mgt.
Middle levels manager play significant role of
Lower levels managers/executive do direction and
Q.1- what will be the right qualification for the selection
of Human Resource Manager (H.R) ?
Ans.( a) M.COM (b)MBA-HR (c) MBA-marketing (d)
Q.2- what are the right qualification for the accountant
in big firm ?
Ans. (a) MBA-Finance (b) C.A (C) B.COM (d) C.S
Q.3- what is the process for increasing the efficiency
group members ?
Ans. (a) increase salaries (b) motivate them (c) give
them right direction (d) others
Q.4- what is the social responsibility of a
Ans. (a) pay all the taxes on time (b) provide
good quality of products/services (c) satisfy
the customers/society needs. (d) all of the
Q.5- what is the policy/strategy for decaling the
sales of the company?
Ans. (a) decrease the price (b) analysis the
changes (c) increase availability/advertisement
Significance of management
Achievement of group goals- an organization can
achieve its desired goal by proper planning and
control. It should be decides what to do and how.
Optimum utilization of resources- on the basis of
planning and forecasting mgt. eliminates all types of
wastage and achieve goals. Mgt. should makes the
workers more efficient and motivated by proper
Fulfillment of social obligations- mgt.
observe/monitors the environment of business &
makes changes in business policies and practices so
as to keep the consumers and the workers satisfied.
Economic growth- development of a country
depends up on quality of management and
Human development- when a person join any
organization then its create increase employee
skills and also development of personality etc.
Sound organization- mgt. clarify authority,
responsibility relationship. It fills various
positions with persons having right qualification
and training and give workers with happy
Management science, art, and profession
Management as a science- science is the systemic
body of knowledge pertaining to a particular field
of enquiry that contains concept, theories&
principles which are universal in nature.
1- systematized body of knowledge- including
2-examination-produce cause & effect relationship.
3-universal application- give same result every
Management has systematic body of knowledge
about its field.
Management not a perfect science – physics,
Management depends up on situational factors deals
with people, social process. so It is called social
Management as an art
1- body of knowledge- art is based theoretical
knowledge of concepts, principles and application
such as music, & painting.
2- practice- artist learnt and refined by practices.
3- personalized application of knowledge- every
artist develops his personal skills and styles for
result.(one teacher for all students, one will top
4- creativity- art is creative in nature.
Every manager applies his knowledge of mgt.
concept and acting skills while dealing with
customers to achieving the desired result.
People/customers to achieve the desired results.
It requires learning of theory and know how any
sales manager do work with team. And how they
Management as a profession
• The term profession may be defined as an
occupation by specialized body of knowledge.
1- specialized field of knowledge- it is the
specialized field of knowledge in the field of
mgt.it has well defined principles,
concepts,theroies and technique which can be
implemented by the managers.mgt. is widely
taught in the universities and mgt. institutes as
2-restricted entry– every profession has restricted entry
based on required education/training.
3-rpresentative association-for the
development/regulation of any profession. Every
profession has its professional association of which
membership is essential. Such association regulate
the entry in the profession.(AIMA,ICAI,)
4-code of conduct- every profession has code-of
conduct for their members – self discipline, high
degree of objectivity. but it has no right to take
action against any manager who does not follow
Administration and Management
Administration is the top level function which includes
determination of objectives and policies and overall
control of business operations.
Administration is the determinative function
Management is an executive function.
1- administration is a higher level function-
administration involves setting of major objectives,
determination of policies, etc.mgt. refer executive
function, direction of human efforts and
implementation of policies.
2-management is a generic term- the British authors
like brech and kimball – mgt is a broad term and
includes administration. Mgt. is concerned with
goal setting and policy-making where as
administration deals with implementation of goal
3-Mgt. and administration are synonymous- the
modern view point define no difference between
mgt.and administration .both involves same
function principles and objectives.
Mgt. used for higher executive function like
determination of policies,planning,organising,
directing in business enterprises & controlling
• While administration is used for same set of
function in govt. departments, educational,
sports,& non profit organization.
functional areas of management
1-production management-to produce the right
goods, in right quantity, at the right time &the
right cost. it involves following activities-
(a)designing the product.(b) location & layout of
plant &building (c) purchase & storage of
materials.(d) repairs &maintenance of
machinery& equipment.(e) inventory control.
2-marketing mgt.-identifying the consumers needs
& supply them the goods & services which can
satisfy those wants.
It involves the following activities-
(a)Needs & expectations of the consumers.
(b)Planning & developing suitable products.
(c)Setting appropriate price.
(d)Selecting the right channel of distribution.
3-financial mgt.-ensure the right type of funds to business
at the right time & at a reasonable cost.
It includes following activities-
(a)Selecting the appropriate source of funds.
(b) Administration of earning.
(c) Involving the planning,organising,& controlling of
the financial resources.
4-personnel mgt.-it involves planning to
ance etc.of the human resource in an
enterprise. it consist the following activities—
(d) Training & development
(e) appraisal, compensation & promotion
Coordination- coordination consist of three
major elements like-
Balancing- ensuring that enough of one things is
available to support.
Timing- involves bringing together different
activities to support.
Integrating- its refers to the unification of diverse
interest under a common purpose.
Fayol define coordination as a function of
Need & significance of coordination
1- unity in diversity- an organization is
characterized by diversity of
point of its members. Coordination is the basic
mechanism for creating unity in diversity.
Like- cultural diversity, workforce diversity, make
proper mgt.by coordination.
2-team work- without proper coordination members
of different groups will pull in different direction
and may work at cross purpose. But by proper
coordination duplication of work &cross purpose
can be eliminated.(no common objective before
coordination between different departments.
3- conflicting goals- each departments and division
of an organization has its own goals. Coordination
becomes essential to harmonize
departmental/personal goal with the goal of the
4-growth in size- in a large organization the no. of
jobs and employees. So communication becomes
difficult /complex organization structure. The
personal contact between executive are few. All
this makes coordination more essential.
Like-mgt. of TCS,Infosys,Wipro etc.
5-specialisation- specialization leads to a narrow
out look. They can not understand others jobs and
difference in out look lead to frequent disputes.
Coordination among the activities of specialist is
“control of specialized person is a very big task
But if organization has good policies/strategy. Then
it will be helpful in coordination”
Like- in a college chairman handle whole things.
6-human nature- employees is society sensitive
animal. They have feeling/emotions, if they work
very efficient manner then they should be
appreciated not only different department but also
7- differentiation and integration- organization are
classified in to specialized and different units,
differentiated work units and authority must be
combined together to achieve goal.
8- inter-dependence- in an enterprise every department
or division depends for its effective working on
other department and division.
Exp- sales department depend up on the production
department for the required volume,range,quality of
product at the right time. It is possible by
coordination between interdepartment.
Coordination-the essence of management
Coordination make planning more effective.
Organization well knit, staffing more realistic,
directing more efficient & controlling more
1- coordination through planning- the various
component of planning such as policies,
serves as means of integrating the activities of
different groups& departments.
2-coordination through organization-
interrelationship between different
department/position and work units.
3-coordination through staffing- right person for
the right job. it helpful in assigning task to
4-coordination through directing- influence the
behaviour of individuals so as to secure goal-
Coordination through controlling- by making
performance , define plan,standards,measurement
of performance and corrective action.
Development of management
The inventions during the industrial revolution,
increasing factory system, growth of trade,
expansion of international trade, rise of
1-classical approach- it is also known as financial
approach,mgt.process approach. it is the very
oldest approach of management.
Feature of classical approach-
a)Study of formal organizations.
b)Study of managerial experiences.
c)Function,principles,and skills of mgt.are
c) Relationship between workers and mgt. is
established by formal communication.
d) Education and training for developing managerial
skills. Case study method is often used.
e) The worker is essentially an economic man.
Uses– a) education and training for managers.
b) case study is helpful in drawing common
principles out of past experiences.
c) scientific basis for management practices.
Limitations of classical approach
a) Ignored the human relations, undermined the
role of human factors.
b) It viewed organization as a closed system,
having no interaction with external environment.
c) The role of non-monetary factors was ignored.
d) It is based on assumptions.
e) It is based on managerial experiences and their
Max Weber (1864-1920) a German social scientist,
analyzed the formation and administration of
Nature of bureaucracy-
a)Division of work
f) Rules and regulation
1- Division of work- task are divided according to
2- Hierarchy position- each official exercises,
supervision, and control on his sub-ordinates with
provision for appeal to higher authorities.
3- Technical competence- best qualified people will
pursue a career in the organization and remain
loyal to it.
4- Record keeping- every decision and action is
recorded in written form and preserved in to
5-Impersonal relation- formal and impersonal
relation are find among the member of
bureaucracy organisation.superior adopt an
impersonal attitude in dealing subordinates.
6-Rules and regulation- rules & regulation, rights
and duty of job holders in the organization.
Advantages of bureaucracy
1- specialisation- provide the advantages of
specialised persons because every member is
assigned a specialised task to perform.
2- structure- specifying the duties responsibilities
and reporting relationship in a command
hierarchy. Structure sets the frame work for the
functioning of the organisation.
“in a bureaucracy organisation should be proper
3- Rationality- a measure of objectivity is ensured
by prescribing in advance and the criteria for
decision-making in routine situation.
4- Predictability- the rules,regulation,specialisation,
and structure, training impart predictability and
there by ensure stability in the organisation.
5-Democracy- qualification and technical
competence make the organisation more
democratic. Official are guided by the prescribed
rules, policies, and practices.
Limitation of bureaucracy
1- rigidity- rules and regulation in a bureaucracy
are often rigid and inflexible. Rigid compliance
with rules and regulations discourages initiative
and creativity. It may also provide the cover to
avoid responsibility for failures.
(like- different govt. offices)
2- Goal displacement- complete only for
organisational goal. if employees carry the
personal goal. Then it will be the more difficult to
achieve organisational goals.
3- Impersonality- do only organisation work.
Organisation rules and regulation are given
priority over individual needs/emotions.
4- Paper work- every division involves excessive
paper work. All document must maintain its
original forms. it leads wastage of time.
(like- maximize paper work)
5- Empire building- use position and resources to
perpetuate self interest. Every superior maximize
work through their subordinates.
(like- make coordination between superior and
subordinates to achieve goal)
F.W.Taylor who recognised for the first time the
need of a scientific approach to the task of
managing an enterprise. He was the father of
scientific management. He find out how much
work should be done .
“do systematic work and maximising efficiency”
Principles of scientific management-
a) Changes the work profile- replace the old rules of
thumb method and scientifically analyzed to
determine and used the most efficient ways of
2- Division of employees- equal division of the
work and the responsibility between the
management and the workers. Management
should assume exclusive responsibility for
planning and worker should assume doing
performing work as per the instruction of
“specialized work for specialized person”
Equal responsibility both mgt. and employees.
3- Training and Development- scientific training
should be arranged to develop each employee to
his greatest efficiency. Qualification required for
each job to be clearly specified. When a worker
works on a job for which he is both physically
and mentally fit. So he can earn higher wages and
4-Maximum Out-put- conflict between management
and labour arises mainly on division if surplus.
Taylor suggested that the best way to resolve the
problem is to increase the size of the surplus . So
that each side can have a larger share .
Resolve the conflict and maximize the out-put.
5- Relationship- cooperation between management
and workers. It is compulsory to achieve the
common objective. Management should make
proper co-operation with the workers and workers
should work with discipline and loyalty.
Techniques of scientific management
1- Time study- complete task under-specified
conditions. Observing each elements
(employees,supervision,workers) assigned time to
2- Motion study- study of both workers and
machine. It could be helpful in elimination of un-
necessary and wasteful movement.
3- Scientific task planning- forecasting about separate
operation. Each step should be taken in the right
place, of the right degree and the right time, it would
be helpful in what is to done? how it is done? where it
is done? when it is done? Do work proper planning.
4- standardisation and simplification- pre-decided
standard for material, methods, time, quality, cost
and working conditions. Standardisation helpful
in simplify work. To ensure uniformity of
operations and maximising efficiency.
5- setting of wage rate system- direct link between
remuneration and productivity for motivating
workers. under this system, higher rates are
offered to those workers who produce more than
the standard quantity. Efficient workers should be
paid from 30% to 100% more than the average
6- specialisation of function foremanship- one
supervisor can not be an expert in all aspect of
work supervision. he suggest eight foremen in all
to control the various aspect of production. He
defined four foreman in the planning department,
namely- route clerk, instruction card clerk, time
and cost clerk, and shop discipline. And the
another four foremen recommended for getting
the required performance from the workers
include – gang boss, speed boss, repair boss, and
card clerk discipline
1- route clerk- lay down the sequence of operations.
Where every piece of work should be travels from
machine to machine. Work should be strictly
specified by the route clerk.
2- time and cost clerk- define time table to doing
various jobs and maintain records of the cost of
3- instruction card clerk- prepare detailed instruction
which workers have to perform their jobs.
4- discipline- enforce rules and regulation and
maintain discipline among workers.
5- gang boss- all preliminary work before the actual
operation . Assemble all necessary tools and
equipment. He instruct to the worker how could
you maximise your productivity.
6- speed boss- responsible for work done in time.
Complete work in given time.
7- repair boss- ensure that each worker keeps his
machine clean and free from dust. keep all
machines and tools in perfect working order.
8- inspector- responsibility of the inspector to see
that the worker is performed in accordance with
the quality standard laid down by the office.
1- mechanistic approach- give importance to
machinery. Ignored the human element in
production and is devoid of a human touch. It
treats workers as factors of production and not as
Taylor give importance to the machinery complete
work in time. they think about how take maximise
out-put from workers in a day.
2- unrealistic assumption- Taylor think people are
rational and they are motivated by the material
gains. They are focused on physical and economic
needs. But workers also wants job satisfaction,
3- Narrow view- limited scope of scientific
management. It does not deal with management
of the total organisation.
4- Impracticable- infeasible in practice lack of unity
in different departments. Exp- functional
5- Exploitation of labour- increasing efficiency
worker were forced to speed up affecting their
physical and mental health. Give importance to
machinery as compare to employees. No place of
workers view and ideas, emotions & sentiments.
3- Administrative/functional management
According to Henri Fayol “ need of systematic
understanding of the overall management
Classical approach is known as administrative
theory, functional approach, management process
Classification of activities-
All business activities in to six categories-
1- technical- manufacturing or production of
2- commercial- buying, selling, and exchange.
3- financial- search for an optimum use of capital.
4-Accounting- recording including statistics
5- security- protection of person and property
Henri Fayol’s 14 Principles Of Management
1-Division Of Work- Specialization allows the
individual to build up experience, and to
continuously improve his skills. Thereby he
can be more productive.
2- Authority and responsibility- authority denotes
the right or power to give orders to the
subordinates. Responsibility means the duty
which the subordinates is express to perform.
3. Discipline- Employees must obey, but this is two-
sided: employees will only obey orders if
management play their part by providing good
4. Unity Of Command- Each worker should have
only one boss with no other conflicting lines of
5. Unity of Direction- People engaged in the same
kind of activities must have the same objectives in
a single plan. This is essential to ensure unity and
coordination in the enterprise. Unity of direction
relates to grouping of activities.ss
6. Subordination of individual interest- Management
must see that the goals of the firms are always
7.Remuneration- Payment is an important motivator
although by analyzing a number of possibilities,
Fayol points out that there is no such thing as a
8. Centralization (Or Decentralization- This is a
matter of degree depending on the condition of
the business and the quality of its personnel.
9. Scalar chain (Line of Authority)- way of
communication, one employee can talk with
different employees by informing his superior
directly if necessary.
If T want to talk Y then process goes- S,R,Q,P and
from O it will come down O,U.V,W X Y. but if
important communication between T and Y then
inform superior and talk by scalar chain.
10. Order- “ a place for everything and everything in
its place” Fayol deal with order in material things
and also social order. In order to- achieve order
for materials things, there must be a place
specified for every thing. And every thing must be
in its specified place. For social order to prevail in
the organisation. Proper balance between human
requirements and resources.
11. Equity- In running a business a ‘combination
of kindliness(something) and justice’ is
needed. Treating employees well is important
to achieve equity.
12. Stability of Tenure of Personnel- Employees
work better if job security and career progress
are assured to them. An insecure tenure and a
high rate of employee turnover will affect the
13. Initiative- Allowing all personnel to show their
initiative in some way is a source of strength for
the organization. Even though it may well
involve a sacrifice of ‘personal vanity’(pride) on
the part of many managers.
14. Esprit de Corps ( union is strength)-
Management must foster the morale of its
employees. He further suggests that: “real talent
is needed to coordinate effort, encourage
keenness, (sharpness) use each person’s
abilities, and reward each one’s merit without
arousing possible jealousies and disturbing
Critical evaluation of administrative theory
1- Too formal- it is very formal theory in any
scientific and analytical study facts and
observation have to be presented in a formal
2- complicated- some of the concepts have not been
properly defined. Exp- principles of division of
work does not tell how the task should be divided.
3- Inconsistency- principles of administrative theory
were based on personal experience and limited
observation. Exp- unity of command principles is
in compatible with division of work.
4- professional management bias- administrative
theory does not pay adequate attention to workers.
Workers are treated as biological machines or
instruments of the process of work.
Shop floor level –
analysis of worker
analysis of manager
6- aspect studied
Neo- classical /Human relations approach
it is the more efficient form of organisation and
management. But draw back of neo-classical
approach is that jobs are very narrow and
employees over-looking their social/psychological
Neo-classical approach may be analysed-
Hawthorne experiments- (George Elton Mayo)
Father of neo-classical approach. He was the leader
of a team and conducted the famous “Hawthorne
experiments. During 1924-32 at a place of the
western electric company.
the place was located at Hawthorne near Chicago in
the experiment is given bellow-
1- Illumination(supplying with light) experiments-
observing the employees out-put.
Well occupied equipment in
room where lighting remained
Other next room where lighting varied
Out-put of both groups is normal that is reflect
lighting was a nominal/minor factors. To affect
out-put, may there were some more important
factors to influence out-put and his team was
invited to conduct further studies.
2- Relay assembly test room studies
Group- A Group- B Group- C
6 female worker and frequent changes timing of
work. Shorter working hours, rest period, hot
lunch, etc. productivity of group increase even
when the improvements in working condition
were withdrawn. It was included socio-
psychological factors- special attention, belonging
exercise a greater influence on productivity than
3- Mass interview program me
a large no. of workers were interviewed to judge
their attitudes and opinions on the factors
influencing productivity, Communication between
Worker and management made great impact.
4- Bank wiring observation room study- in this
experiment A group of 14 workers. Put under
close observation. The pay of depend of the
performance of as a whole group. It was found
that groups had its own norms of performance.
But out-put could not increase because no group
Hawthorne experiments have been criticized on the
1- pro-management bias- it was defined that
management is always logical where as workers
are largely driven by emotions.
2- clinical bias- this theory observed experiment
observations. Mayo’s work has been described as
3- discounted theory- this theory studies importance
of observation and collection of facts. And
underestimated the importance of theory as a
frame work and guidance for social research.
4- doubtful validity- the reaction of small groups of
American women can hardly be taken as sufficiently
representive to provide a valid solution in different
countries. The conclusion can not be generalized.
5- do not go for enough- sociologist complain that
Mayo investigated the factory to the almost complete
exclusion of social background.
6- unscientific- there was no systematic basis in the
choice of work, worker and the environment. The
investigation were not carried out in a scientific
7- true but irrelevant- the conclusions of Hawthorne
experiments are true but are irrelevant. Some
industrialist argue that the main object of a
business is to make profits rather than to keep
Human relations movement
Human relation movement is the psychological
factors in an organisation. Because workers can
not be motivated by only economic rewards they
want social satisfaction at work place.
Manager should create happy environment in an
organisation for keeping workers satisfied.
Human relation is an management practice like-
integration of people in to work situation in a way
that motivates, work together productivity,
cooperative and with satisfaction achieve
The human relation is based on following Ideas-
The work group
1- the individual- according to the human relation
each person is unique. He brings certain attitudes,
beliefs, values, skills, etc. to the job situations an
individual motivated not only economic factors
but also socio and psychological factors.
2- the work group- work is the social experience and
most of the workers find satisfaction in social
groups. The manager should maintain good inter-
personal and inter-group relation to maximising
3- the leader- a supervisor/manager should provide
pleasant work climates, Where employees are
working. He can respect and obedience by
adjusting to various personalities and situations.
4- the work environment- a positive work
environment satisfy employees needs and also
organisational goal. it would be clearly defined,
performance, rewards, feedback and growth
oriented work, open communication etc.
Human relations approach has been criticized on
the following points-
1- unscientific- human relation approach is
unscientific because those experiments happened
in American workers. That would be totally
different in different countries. Because each and
every country has different working culture and
environment. So it could not be implementing
2- anti-individualistic- human relation approach is
not motivated to the an individual because
workers do work in a group. And they sacrifice
his personal values to group norms. group may
not distribute satisfaction of an individual.
3- short-sighted- mgt. want only maximising
production at any cost. They neglects real
problem of the work situations. Interpersonal
relation think only requirement of the human
behavior at work place.
4- negative view of conflict- human relation
approach believed that conflict is always bad and
must avoided it. But some time conflict also
helpful in maximising productivity.
5- over concern with happiness- the assumption is
that happy worker is more productive but in
human relation no direct link between morale and
productivity. In human relation approach division
Human relation movement focused on inter-
personal relation and over looked the wider
subject of O.B., O.B is identify the behavior of an
individual, as group in an organisation. And
behavioral approach challenges of the O.B
It is also known as the human resource approach. It
helpful in both individual and organisation.
Behavioral approach is multidimensional and inter-
disciplinary in nature- psychology, sociology,
Psychology- understand the behavior of individuals
include- personality, perception, attitude, learning,
Sociology- try to understand social-behavior, the
dynamics of groups focus on group.
Anthropology- individual culture, organisational
culture, external environment etc.
contingency approach also called situational
approach. It was developed by manager,
consultant, and researchers who tried to apply in
They found that concept and techniques highly
effective in one situation, might be failed to work
in other situations. Because no single best way
managing all situations. So management should
deal with different situation in different ways.
it is the responsibility of management to analyse the
Contingencies or condition peculiar (unknown) to
each situation and then choose the right approach
to deal with it. It also requires knowledge and
understanding of different principles, techniques
and styles of management.
Nature/feature of contingency approach-
1- management is entirely situational- the
application and effectiveness of any techniques is
dependent on situations. Different techniques for
2- match or fit- change management style according
environmental changes. The organisation
structure, leadership, the control system should be
designed to fit the particular situations.
3- understanding- manager should understand there
is no best way to manage all things.
Implication of contingency approach-
1- managerial action- in an organisation various
action must be taken depending up on the
situations. An action may be suitable for one
organisation may not be suitable for another
organisation at time.
2- design- in an organisation different situation
different techniques, principles. Contingency
approach provides significant contribution
organisational design. No organisational design
suitable for all situations.
An organisation is based on system and its involve
different elements that are interrelated and
According to Cleland and King: a system is
composed of related and dependent elements
which, when in interaction, from a unitary whole.
Exp- an entire world can be a system in which
various economies are sub-system.
Each national economy is composed of its various
industries, each industry is composed of firms,
and of course, a firm can be considered a system
composed of subsystem such as-
production, marketing, finance, accounting and so
on. Each subsystem may be further composed of
Closed vs. open system- a closed system is self-
dependent and does not have any interaction with
the external environment. It is focused on internal
relationship and interaction between sub-system
only. It is unable to monitor changes occurring in
the external environment.
But in case of open system has active interface with
the environment through the input-output process.
Outputs (goods and
Organisation as an open system
features of system approach-
1- the various systems are studied in their
interrelationship rather than in isolation from each
2- an organisational system has a boundary that
determines which parts are internal and which are
3- it receives information, material, and energy from
other systems as inputs. And leave the system out
put to other system.
criticism of system approach-
1- the system approach has failed to specify the
nature of interactions and inter dependencies
between an organisation and its external
2- the system approach has failed to spell out the
precise relationship between various subsystems.
3-the systems approach does not provide action
framework applicable to all types of