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Unit 1 pom

  1. 1. 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” (Harold koontz) “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” (Henri fayol)
  2. 2. 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 planning,organising,staffing,directing,andplanning,organising,staffing,directing,and 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. 3. 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.
  4. 4. 6- Management is multidisciplinary- Management techniques, principles and theories are drawn from other disciplinary such as engineering,sociology,economics,mathmatics. 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 environment. 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.
  5. 5. 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.
  6. 6. 4-Better workforce 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.
  7. 7. 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 members.
  8. 8. 3-Conceptual skills 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 the country. 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 situations.
  9. 9. 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.
  10. 10. 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.
  11. 11. Management and operative function Managerial function 1-planning 2-organising 3-staffing 4-directing 5-controlling Operative function 1-production 2-marketing 3-purchasing 4-financing 5-personnel
  12. 12. 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 different functions. Lower levels managers/executive do direction and controlling functions.
  13. 13. Questions-- 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) Others. 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
  14. 14. cont-- Q.4- what is the social responsibility of a business ? 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 above. 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 (d)others
  15. 15. 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 training. 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.
  16. 16. Cont--- Economic growth- development of a country depends up on quality of management and resources. 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 environment.
  17. 17. 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 concept, principles,theroies. 2-examination-produce cause & effect relationship. 3-universal application- give same result every where.
  18. 18. Management has systematic body of knowledge about its field. Management not a perfect science – physics, chemestary,biology. Management depends up on situational factors deals with people, social process. so It is called social science.
  19. 19. 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 university) 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.
  20. 20. Cont— 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 can manage.
  21. 21. 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 a discipline.
  22. 22. Cont-- 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 this code.
  23. 23. 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.
  24. 24. Cont-- 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 and policies. 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 business activities.
  25. 25. Cont-- • While administration is used for same set of function in govt. departments, educational, sports,& non profit organization.
  26. 26. 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.
  27. 27. Cont-- 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.
  28. 28. Cont— 4-personnel mgt.-it involves planning to controlling, the procurement,development,compensations,mainten ance etc.of the human resource in an enterprise. it consist the following activities— (a)man-power planning (b) Recruitment (c) Selection (d) Training & development (e) appraisal, compensation & promotion
  29. 29. Coordination 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 manager
  30. 30. Need & significance of coordination 1- unity in diversity- an organization is characterized by diversity of resources,skills,activities,perceptions,and view 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.
  31. 31. Cont- 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 organization. 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.
  32. 32. Cont-- 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 very difficult. “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.
  33. 33. Cont- 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 superior. 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.
  34. 34. Cont-- 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.
  35. 35. Coordination-the essence of management Coordination make planning more effective. Organization well knit, staffing more realistic, directing more efficient & controlling more regulative. 1- coordination through planning- the various component of planning such as policies, strategies,procedure,schedules &programmes serves as means of integrating the activities of different groups& departments.
  36. 36. Cont- 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 various individuals. 4-coordination through directing- influence the behaviour of individuals so as to secure goal- directed efforts.
  37. 37. Cont- Coordination through controlling- by making performance , define plan,standards,measurement of performance and corrective action.
  38. 38. Development of management The inventions during the industrial revolution, increasing factory system, growth of trade, expansion of international trade, rise of consumerism etc. 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 considered universal.
  39. 39. Cont-- 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.
  40. 40. 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 limited observations.
  41. 41. Classical theory 1- Bureaucracy (Max Weber) 2- Scientific Management (F.W.Taylor) 3- Administrative/functional management (Henri Fayol) Bureaucracy (Max Weber) Scientific management Functional management
  42. 42. Bureaucracy Max Weber (1864-1920) a German social scientist, analyzed the formation and administration of public bureaucracy. Nature of bureaucracy- a)Division of work b)Hierarchy position c)Technical competence d)Record keeping e)Impersonal relation f) Rules and regulation
  43. 43. Cont-- 1- Division of work- task are divided according to specialization. 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 original form.
  44. 44. Cont- 5-Impersonal relation- formal and impersonal relation are find among the member of bureaucracy organisation.superior adopt an impersonal attitude in dealing subordinates. (personal behavior). 6-Rules and regulation- rules & regulation, rights and duty of job holders in the organization.
  45. 45. 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 hierarchy”
  46. 46. Cont- 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.
  47. 47. 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.
  48. 48. Cont- 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)
  49. 49. Scientific management 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 doing.
  50. 50. Cont- 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 management. “specialized work for specialized person” Equal responsibility both mgt. and employees.
  51. 51. Cont- 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 mental satisfaction. 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 .
  52. 52. Cont- 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.
  53. 53. Techniques of scientific management 1- Time study- complete task under-specified conditions. Observing each elements (employees,supervision,workers) assigned time to complete task. 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.
  54. 54. Cont- 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 workers.
  55. 55. Cont- 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 inspector.
  56. 56. Work manger Plant superintendent Route clerk Time and cost clerk Instruction card clerk discipline Gang boss Speed boss Repair boss inspecto r office shop workers
  57. 57. Cont- 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 work. 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.
  58. 58. Cont- 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.
  59. 59. Critical evaluation 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 human beings. 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, participation.
  60. 60. Cont- 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 foremanship. 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.
  61. 61. 3- Administrative/functional management (Henri Fayol) According to Henri Fayol “ need of systematic understanding of the overall management process” Classical approach is known as administrative theory, functional approach, management process approach. Classification of activities- All business activities in to six categories- 1- technical- manufacturing or production of products.
  62. 62. Cont- 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 6- managerial.
  63. 63. 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.
  64. 64. Cont- 3. Discipline- Employees must obey, but this is two- sided: employees will only obey orders if management play their part by providing good leadership. 4. Unity Of Command- Each worker should have only one boss with no other conflicting lines of command. 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
  65. 65. Cont- 6. Subordination of individual interest- Management must see that the goals of the firms are always paramount. 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 perfect system.
  66. 66. Cont- 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. S R T Q P O U V W X Y Gang-plank
  67. 67. Cont- 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.
  68. 68. cont 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 organization adversely.
  69. 69. cont 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
  70. 70. 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 manner. 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.
  71. 71. Cont- 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.
  72. 72. BASIC COMPARISON 1-perspective 2- focus 3- personality TAYLOR Shop floor level – analysis of worker activities. Improving productivity through work simplification and standardization. Scientist FAYOL Top management analysis of manager activities. Improving overall administration through general principles. Practitioner
  73. 73. Cont- Basis of comparison 4- result 5- major contribution 6- aspect studied Taylor Scientific observation and measurement Science of industrial management Micro aspect- management of job Fayol Universal truth developed from personal experience. A systematic theory of management Macro aspect management of total organisation.
  74. 74. 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 needs. 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.
  75. 75. Cont- the place was located at Hawthorne near Chicago in U.S.A. the experiment is given bellow- 1- Illumination(supplying with light) experiments- observing the employees out-put. Employees group A Well occupied equipment in room where lighting remained constant. B Other next room where lighting varied periodically. Out-put
  76. 76. Cont- 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 Studies conduct Group- A Group- B Group- C
  77. 77. Cont- 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 working conditions.
  78. 78. 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 incentive scheme.
  79. 79. Hawthorne experiments have been criticized on the following- 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 “radical empiricism”(knowledge). 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.
  80. 80. Cont- 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 manner.
  81. 81. Cont- 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 workers happy.
  82. 82. 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 organisational goals.
  83. 83. The human relation is based on following Ideas- The individual The work group The leader The work environment
  84. 84. 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 productivity.
  85. 85. Cont- 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.
  86. 86. 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 every country.
  87. 87. Cont- 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.
  88. 88. Cont- 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 is superior.
  89. 89. Behavioral approach 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, anthropology.
  90. 90. personality system Social system Cultural system Integration of behavioral science Inter-disciplinary approach
  91. 91. Psychology- understand the behavior of individuals include- personality, perception, attitude, learning, motivation, etc. Sociology- try to understand social-behavior, the dynamics of groups focus on group. Anthropology- individual culture, organisational culture, external environment etc.
  92. 92. Contingency approach contingency approach also called situational approach. It was developed by manager, consultant, and researchers who tried to apply in real life-situation. 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.
  93. 93. 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 different situations.
  94. 94. Cont- 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.
  95. 95. 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.
  96. 96. System approach- An organisation is based on system and its involve different elements that are interrelated and interdependent. 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-
  97. 97. production, marketing, finance, accounting and so on. Each subsystem may be further composed of sub-systems. 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.
  98. 98. Input (information and resources) Transforma tion Outputs (goods and services) Environment Feedback Organisation as an open system
  99. 99. features of system approach- 1- the various systems are studied in their interrelationship rather than in isolation from each others. 2- an organisational system has a boundary that determines which parts are internal and which are external. 3- it receives information, material, and energy from other systems as inputs. And leave the system out put to other system.
  100. 100. 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 environment. 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 organisations.