Fayol’s Principles of Management, Behavioural Approach to Management, Hawthorne Studies

1. Fayol’s Principles of Management,
Behavioural Approach to Management,
Hawthorne Studies TEAM-1
NAVEEN
KIRTIMA
CHIRAG
KAPEESH
KANHA

2. INTRODUCTION
HENRY FAYOL WAS A FRENCH MINING ENGINEER, AUTHOR AND
DIRECTOR BORN IN 1941, WHO DEVELOPED GENERAL THEORY
OF BUSINESS ADMINISTRATION THAT IS OFTEN CALLED
“FAYOLISM”. FAYOL IS CREDITED AS THE FIRST PERSON TO
INTRODUCE CONCEPT CALLED PRINCIPLES OF MANAGEMENT.
THE HAWTHORNE STUDIES WERE CARRIED OUT BY THE
WESTERN ELECTRIC COMPANY AT THEIR HAWTHORNE PLANT
IN THE 1920S. THE HAWTHORNE STUDIES HAD A REMARKABLE
IMPACT ON MANAGEMENT IN ORGANIZATION AND HOW
WORKERS REACT TO VARIOUS SITUATIONS.

4. 1. DIVISION OF WORK:
WORK SHOULD BE DIVIDED AMONG INDIVIDUALS
AND GROUPS TO ENSURE THAT EFFORT AND
ATTENTION ARE FOCUSED ON SPECIAL PORTIONS
OF THE TASK. FAYOL PRESENTED WORK
SPECIALIZATION AS THE BEST WAY TO USE THE
HUMAN RESOURCES OF THE ORGANIZATION.

5. 2. AUTHORITY:
THE CONCEPTS OF AUTHORITY AND RESPONSIBILITY
ARE CLOSELY RELATED. AUTHORITY WAS DEFINED BY
FAYOL AS THE RIGHT TO GIVE ORDERS AND THE
POWER TO EXACT OBEDIENCE. RESPONSIBILITY
INVOLVES BEING ACCOUNTABLE, AND IS THEREFORE
NATURALLY ASSOCIATED WITH AUTHORITY.
WHOEVER ASSUMES AUTHORITY ALSO ASSUMES
RESPONSIBILITY.

6. 3. DISCIPLINE:
A SUCCESSFUL ORGANIZATION REQUIRES THE
COMMON EFFORT OF WORKERS. PENALTIES
SHOULD BE APPLIED JUDICIOUSLY TO ENCOURAGE
THIS COMMON EFFORT.

7. 4. UNITY OF COMMAND
WORKERS SHOULD RECEIVE ORDERS FROM ONLY
ONE MANAGER.

8. 5. UNITY OF DIRECTION:
THE ENTIRE ORGANIZATION SHOULD BE MOVING
TOWARDS A COMMON OBJECTIVE IN A COMMON
DIRECTION.

9. 6. SUBORDINATION OF
INDIVIDUAL INTERESTS TO
THE GENERAL INTERESTS:
THE INTERESTS OF ONE PERSON SHOULD NOT TAKE
PRIORITY OVER THE INTERESTS OF THE ORGANIZATION
AS A WHOLE.

10. 7. REMUNERATION:
MANY VARIABLES, SUCH AS COST OF LIVING, SUPPLY
OF QUALIFIED PERSONNEL, GENERAL BUSINESS
CONDITIONS, AND SUCCESS OF THE BUSINESS,
SHOULD BE CONSIDERED IN DETERMINING A
WORKER’S RATE OF PAY.

11. 8. CENTRALIZATION:
FAYOL DEFINED CENTRALIZATION AS LOWERING THE
IMPORTANCE OF THE SUBORDINATE ROLE.
DECENTRALIZATION IS INCREASING THE
IMPORTANCE. THE DEGREE TO WHICH
CENTRALIZATION OR DECENTRALIZATION SHOULD
BE ADOPTED DEPENDS ON THE SPECIFIC
ORGANIZATION IN WHICH THE MANAGER IS
WORKING.

12. 9. SCALAR CHAIN:
MANAGERS IN HIERARCHIES ARE PART OF A CHAIN
LIKE AUTHORITY SCALE. EACH MANAGER, FROM THE
FIRST LINE SUPERVISOR TO THE PRESIDENT, POSSESS
CERTAIN AMOUNTS OF AUTHORITY. THE PRESIDENT
POSSESSES THE MOST AUTHORITY; THE FIRST LINE
SUPERVISOR THE LEAST. LOWER LEVEL MANAGERS
SHOULD ALWAYS KEEP UPPER LEVEL MANAGERS
INFORMED OF THEIR WORK ACTIVITIES. THE
EXISTENCE OF A SCALAR CHAIN AND ADHERENCE
TO IT ARE NECESSARY IF THE ORGANIZATION IS TO
BE SUCCESSFUL.

13. 10. ORDER:
FOR THE SAKE OF EFFICIENCY AND COORDINATION,
ALL MATERIALS AND PEOPLE RELATED TO A SPECIFIC
KIND OF WORK SHOULD BE TREATED AS EQUALLY AS
POSSIBLE.

14. 11. EQUITY:
ALL EMPLOYEES SHOULD BE TREATED AS EQUALLY
AS POSSIBLE.

15. 12. STABILITY OF TENURE OF
PERSONNEL:
RETAINING PRODUCTIVE EMPLOYEES SHOULD
ALWAYS BE A HIGH PRIORITY OF MANAGEMENT.
RECRUITMENT AND SELECTION COSTS, AS WELL AS
INCREASED PRODUCT-REJECT RATES ARE USUALLY
ASSOCIATED WITH HIRING NEW WORKERS.

16. 13. INITIATIVE:
MANAGEMENT SHOULD TAKE STEPS TO ENCOURAGE
WORKER INITIATIVE, WHICH IS DEFINED AS NEW OR
ADDITIONAL WORK ACTIVITY UNDERTAKEN
THROUGH SELF DIRECTION.

17. 14. ESPIRIT DE CORPS:
MANAGEMENT SHOULD ENCOURAGE HARMONY
AND GENERAL GOOD FEELINGS AMONG
EMPLOYEES.

19. Behavioural Approach
MANAGERS GET THINGS DONE BY WORKING WITH
PEOPLE.
THE FIELD OF STUDY THAT RESEARCHES THE ACTIONS
(BEHAVIOUR) OF PEOPLE AT WORK IS CALLED
ORGANIZATIONAL BEHAVIOUR (OB).
MUCH OF WHAT MANAGERS DO TODAY WHEN
MANAGING PEOPLE—MOTIVATING, LEADING,
BUILDING TRUST, WORKING WITH A TEAM,
MANAGING CONFLICT, AND SO FORTH—HAS COME
OUT OF OB RESEARCH.

20. Early Advocates
ROBERT OWEN
HUGO MUNSTERBERG
MARY PARKER FOLLETT
CHESTER BARNARD
THEIR IDEAS PROVIDED THE FOUNDATION FOR
SUCH MANAGEMENT PRACTICES AS EMPLOYEE
SELECTION PROCEDURES, MOTIVATION PROGRAMS,
AND WORK TEAMS.

21. The Hawthorne Studies
THE MOST IMPORTANT CONTRIBUTION TO THE OB
FIELD CAME OUT OF THE HAWTHORNE STUDIES.
IN 1927, THE WESTERN ELECTRIC ENGINEERS ASKED
HARVARD PROFESSOR ELTON MAYO AND HIS
ASSOCIATES TO JOIN THE STUDY AS CONSULTANTS

22. The Hawthorne Studies
A SERIES OF STUDIES CONDUCTED AT THE WESTERN ELECTRIC
COMPANY WORKS IN CICERO, ILLINOIS.
THEY FOUND THAT AS THE LEVEL OF LIGHT WAS INCREASED IN
THE EXPERIMENTAL GROUP, OUTPUT FOR BOTH GROUPS
INCREASED.
THEN AS THE LIGHT LEVEL WAS DECREASED IN THE
EXPERIMENTAL GROUP, PRODUCTIVITY CONTINUED TO
INCREASE IN BOTH GROUPS.
IN FACT, A PRODUCTIVITY DECREASE WAS OBSERVED IN THE
EXPERIMENTAL GROUP ONLY WHEN THE LEVEL OF LIGHT WAS
REDUCED TO THAT OF A MOONLIT NIGHT.
THE ENGINEERS CONCLUDED THAT LIGHTING INTENSITY WAS
NOT DIRECTLY RELATED TO GROUP PRODUCTIVITY.

23. The Hawthorne Studies
ONE EXPERIMENT WAS DESIGNED TO EVALUATE THE
EFFECT OF A GROUP PIECEWORK INCENTIVE PAY
SYSTEM ON GROUP PRODUCTIVITY.
THE RESULTS INDICATED THAT THE INCENTIVE PLAN
HAD LESS EFFECT ON A WORKER’S OUTPUT THAN
DID GROUP PRESSURE, ACCEPTANCE, AND SECURITY.
THE RESEARCHERS CONCLUDED THAT SOCIAL
NORMS OR GROUP STANDARDS WERE THE KEY
DETERMINANTS OF INDIVIDUAL WORK BEHAVIOUR.

24. The Hawthorne Studies
MAYO CONCLUDED :
PEOPLE’S BEHAVIOUR AND ATTITUDES ARE CLOSELY
RELATED, THAT GROUP FACTORS SIGNIFICANTLY AFFECT
INDIVIDUAL BEHAVIOUR, THAT GROUP STANDARDS
ESTABLISH INDIVIDUAL WORKER OUTPUT, AND THAT
MONEY IS LESS A FACTOR IN DETERMINING OUTPUT
THAN ARE GROUP STANDARDS, GROUP ATTITUDES, AND
SECURITY.
WHAT IS IMPORTANT IS THAT THEY STIMULATED AN
INTEREST IN HUMAN BEHAVIOUR IN ORGANIZATIONS.

25. How Today’s Managers Use
The Behavioral Approach
THE BEHAVIORAL APPROACH HAS LARGELY SHAPED
HOW TODAY’S ORGANIZATIONS ARE MANAGED.
FROM THE WAY THAT MANAGERS DESIGN JOBS TO THE
WAY THAT THEY WORK WITH EMPLOYEE TEAMS TO THE
WAY THAT THEY COMMUNICATE, WE SEE ELEMENTS OF
THE BEHAVIORAL APPROACH.
MUCH OF WHAT THE EARLY OB ADVOCATES PROPOSED
AND THE CONCLUSIONS FROM THE HAWTHORNE
STUDIES HAVE PROVIDED THE FOUNDATION FOR OUR
CURRENT THEORIES OF MOTIVATION, LEADERSHIP, GROUP
BEHAVIOUR AND DEVELOPMENT, AND NUMEROUS
OTHER BEHAVIOURAL APPROACHES.