The document summarizes different schools of management thought including: - Behavioral school founded by Elton Mayo based on the Hawthorne experiments which found that social and psychological factors highly influence productivity. - Modern schools including Douglas McGregor's Theory X and Theory Y about human motivation in organizations, and Peter Drucker's focus on managing businesses, managers, and workers/work. - William Ouchi proposed Theory Z as a hybrid of American and Japanese management styles emphasizing long-term employment, teamwork, and holistic concern for employees.

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4. Contents
Behavioural School of Management
- Elton Mayo(Hawthorne Experiments)
Modern School of Management
- Douglas McGregor
- Peter Drucker
- William Ouchi

5. Behavioral School of Management
The behavioral science
approach developed as a
natural evolution from
the Hawthorne
Experiments
The behavioral approach
applies the knowledge of
the behavioral sciences
for managing people
Elton Mayo
(1880-1949)

6. Hawthorne Experiments:
“The Hawthorne Studies were conducted from
1927-1932 at the Western Electric Hawthorne
Works in Chicago, where Harvard Business
School Professor Elton Mayo examined
productivity and work conditions.”
“Mayo wanted to find out what effect fatigue
and monotony had on job productivity and
how to control them through such variables
as rest breaks, work hours, temperatures and
humidity.”

8. Cont’
1927-1932
Manipulated factors of production to measure effect on
output:
◦ Pay Incentives
◦ Length of Work Day & Work Week
◦ Use of Rest Periods
◦ Company Sponsored Meals
Results:
◦ Higher output and greater employee satisfaction
Conclusions:
◦ Positive effects even with negative influences – workers’
output will increase as a response to attention
◦ Strong social bonds were created within the test group.
Workers are influenced by need for recognition, security
and sense of belonging

9. Nuts and Bolts :
Interviewing
◦ Provide insight to workers moral, their likes and dislikes
and how they felt about their bosses
Role of Supervisor
◦ Retained the responsibility of making sure that their
workers reached production levels, should lead their
workers
Management
◦ Need to gain active support and participation from
workers, while maintaining managerial control.
◦ Be patient with workers, listen to them, and avoid creating
emotional upsets.
Teamwork
◦ Cooperation, communication, sense of belonging

10. Modern School of Management
Douglas
McGregor
(1906-1964)
• McGregor maintained that there are
two fundamental approaches to
managing people. Many managers
tend towards theory x, and
generally get poor results.
Enlightened managers use theory y,
which produces better performance
and results, and allows people to
grow and develop.

11. Theory-X
The average person dislikes work and will avoid it
he/she can.
Therefore most people must be forced with the threat
of punishment to work towards organizational
objectives.
The average person prefers to be directed; to avoid
responsibility; is relatively unambitious, and wants
security above all else.
CooooooooL

12. Theory-Y
Effort in work is as natural as work and play.
People will apply self-control and self-direction
in the pursuit of organisational objectives,
without external control or the threat of
punishment.
Commitment to objectives is a function of rewards
associated with their achievement.
People usually accept and often seek
responsibility.
The capacity to use a high degree of imagination,
ingenuity and creativity in solving organisational
problems is widely, not narrowly, distributed in
the population.
In industry the intellectual potential of the
average person is only partly utilised.

15. “ No business in the
world has ever made
more money with
“Poorer”
management”

16. System Approach :
It is a collection on interrelated parts acting
together to achieve some goal with exists in the
environment. Also system is defined as a set of
objects working together with relationships between
their objects and attributes related to each other
and to the environment.
Therefore, system in simple terms in respect to
management, it is a set of different independent
parts working together in interrelated manner to
accomplish a set of objectives

22. Contingency(Situational) Approach
The contingency approach to
management emerged from the real life
experience of managers who found that
no single approach worked consistently
in every situation.
The basic idea of this approach is that
no management technique or theory is
appropriate in all situations.
The main determinants of a
contingency are related to the external
and internal environment of an
organisation.

23. contingency variables:
size of firm
environment
resources
technology
group dynamics
individual differences
Managers must identify these variables
and understand how it’s best to manage
the organization.

24. Peter Drucker(1909-2005)

25. Three Roles of Management
Managing a Business
Managing Managers
Managing Workers and Work

26. Managing a Business
Purpose of Business
◦ To Create Customers
Functions of Business
◦ Marketing
◦ Innovation
Profit is result, not a cause, of business
activity

27. Managing Workers and Work
Personnel Management
Organizing for Peak Performance
Engineering the Job
Motivating for Peak Performance
Communication; Vision
Supervisor / Foreman
Professional Employee

28. William G. Ouchi (Born 1943)
In 1981, William Ouchi came up
with a method that would
combine American and Japanese
managing practice together to
form Theory Z. In order for him
to accomplish this, he had to
learn about the Japanese
culture. He had to find out why
the Japanese quality and
productivity were much higher
than the American

29. The Japanese Management Approach,
Called TYPE J
The American Management
Approach,Called TYPE A
Ouchi’s Recommended A Hybrid Of Two
Approaches ,THEORY Z

30. Theory-Z
Long-term employment
Collective decision making
Individual responsibility
Slow evaluation & promotion
Implicit, informal control with explicit,
formalized measures
Moderately specialized career paths
Holistic concern, including family