Management Concepts and Principles

DEFINITIONS
 “Management is the act
of doing things through
& with people in
formally organized
groups” (Koontz)

 “ Management is defined for
conceptual purpose as that
process by which managers
create, direct, maintain &
operate, purposive organization
through systematic, coordinated,
cooperative human effort,”
(Marfarland)

 “ Management is “working with
human, financial & physical
resources to achieve
organizational objectives by
performing the planning,
organizing, leading &
controlling functions.”
(Meggerison & Mosby)

“ Management is a problem
solving of effectively
achieving organizational
objectives through the
efficient use of scarce
resources in a changing
environment.” (Kreitner)

“Administration is the
organization & direction
of human & material
resources to achieve
desired ends.”(Pfiffner &
Presthus)

“ Administration is determined
action taken in the pursuit of a
conscious purpose. It is the
systematic ordering of affairs &
the calculated use of resources
aimed at making those things
happen which one wants to
happen & forestalling everything
to the contrary.”(Marx)

“Administration has to do
with getting things done;
with the accomplishment
of defined objectives”.
(Luther Gullick)

“ Administration is the
direction, coordination &
control of many persons to
achieve some purposes or
objective.” (L.D.White)

Comparision between
Managemant &
Administration

ADMINISTRATIONMANAGEMENT
It is concerned with the
determination of major
policies & objectives of
the enterprise
It is concerned with the
execution of policies &
accomplishment of the
objectives of the
enterprise
It is a determinative or
thinking function
It is an executive or
doing function
The term is used mostly
in government or public
sector
Mostly used in business
& industrial world
Decision making is
influenced by the force
of public opinion,
government policies &
Decision making gets
influenced by the
values, opinions &
beliefs of the manager.

It refers to the owners of the
organization who invest capital
& receive returns in the form of
dividends
It refers to the employees of the
organization who apply their
professional skills to earn
profits
It is a top level activity It is a middle level activity
Basically planning &
organizing functions are
performed by administration
Motivating, coordinating &
controlling are the basic
functions performed by
executive management
The functions of administration
expand at the upper levels &
The functions of management
shrink at upper level & expand

More
administrative
rather than
technical ability
is required for
good
administration.
More technical
ability rather
than
administrative
skills are
required by the
management.

MANAGEMENT
CHARACTERISTICS OF
MANAGEMENT

Management is concerned with
getting the work done.
It is a process of unification.
It leads to proper utilization of scarce
resources.
It aims at securing maximum results
with minimum efforts & cost
effectiveness.
It is an activity related to human &
extra human means of production.

It is a universal process. It
exists where there is social
organization.
It is based on social sciences
i.e. it’s tools & concepts belong
to social sciences.
It is concerned with good
human relations.

CONCEPT OF MANAGEMENT
Raymond Gi Leon
 1. Management by Communication.
 2. Management by Systems.
 3. Management by Results.
 4. Management by Participation.
 5. Management by Motivation.
 6. Management by Exception.
 7. Management by Objectives.

 1. Manager spends 90% of his time in
communication.
 2. Communication determines the
effectiveness of the management.
 3. Communication is a continuous
process of telling, listening &
understanding.
 4. According to this concept the success
of the management depends upon the
successful communication.

 THIS REFERS TO :
 1. Recognizing the problems, analyzing it &
defining the objectives.
 2.Collection & analysis of necessary data.
 3. Finding out various possible alternatives.
 4. Reviewing & evaluating each alternatives.
 Testing the conclusions if possible.
 Selecting the best alternative.
 Reviewing the results & taking corrective
actions if necessary.

1. This concept states that the end results
are significant.
2. Development or progress can be
evaluated by looking the end results.
3. Management is result oriented.
4. The success & strength of the
management is determined by from the
point of the results that it can bring.

MANAGEMENT BY
PARTICIPATION

1. This concept focuses on the worker.
2. Workers are provided opportunity
in the decision making process.
3. It involves the doctrine of
trusteeship.
4. This concept helps in creating a
sense of involvement among the
workers.

1. It is a dynamic system that seeks to
integrate the company's need to
clarify and achieve it’s profit & growth
goals with the manager’s need to
contribute & develop himself.
2. It is a demanding & rewarding style
of managing s business.

1. It is a special skill of managing by
attending only to exceptionally
important matters & taking vital
decisions.
2. Routine matters are handled by the
lower level officers.

STEPS IN MBO
 1. To establish long term & short term
organizational goals.
 2.To establish short & long term
objectives for each manager,
clarifying the key performance
standards.
 3. Review of the periodic performances.
 4. Encouraging the managers to accept
responsibility

BENEFITS OF MBO
The need for planning is well
recognized.
It provides for objectives &
accountability for performances.
It encourages participative
management.
It helps in job enrichment.
It provides for a good feed-back system.

FUNCTIONS OF
MANAGEMENT
 HENRY FAYOL. ( URWICK ----- “POSDCORB”

HENRY FAYOL
FUNCTIONS OF MANAGEMENT
Planning Organizing Commanding Co -ordinating Controlling

PLANNING
 It is concerned with future.
 Planning anticipates & precedes action.
 It is concerned with determining the
objectives & the course of action to achieve
them.
 The overall objectives are sub divided into
departmental & sub objectives.
 Once the objectives are outlined then
policies, programs, procedures, methods,
rules & regulations are established for
achieving goals in a systematic fashion.

ORGANIZING After objectives & plans have been established,
the management must organize human &
physical resources of the organization.
 Organization helps the members to carry out the
chosen program successfully.
 Organizing establishes the structures, systems &
procedures of operation to achieve the objectives.
 Organizing is concerned with the determination
of relationship among functions, jobs &
personnel.

 A sound organizational structure is
essential for effective & profitable
performance.
 Without proper organization, there may
be duplication of efforts, inadequate
attention to certain important functions.

STAFFING It involves filling & keeping the positions
filled in the organizational structure.
 This is done by identifying the workforce
requirements & people available.
 Recruiting, selecting, placing, promoting,
planning & training the personnel or
otherwise involving current job holders to
accomplish their tasks effectively &
efficiently.

CONTROLLING Through controlling function the manager keeps
the organization on the right track.
 Controlling can be positive or negative.
 Positive control tries to ensure that unwanted or
undesirable activities do not occur or reoccur.
 Controlling function involves three essential
elements.
 1. Establishing standards of performance.
 2. Measuring the current performance &
comparing it against the established
standards.
 3. Taking action to correct any performance
that does not meet those standards.

DIRECTING
 Directing function aims at getting the
employees to do the things you want them
to do.
 It involves a leader’s quality , style, power
as well as leadership activities of
communication, motivation& discipline.
 Directing aims at instilling a team spirit in
the group & motivating them to be loyal &
obedient, and makes them aware of their
sense of responsibility & making them put
their joint efforts necessary for the
fulfillment of the targets.

FUNCTIONS OF MANAGEMENT
 URWICK
 PLANNING
 ORGANIZING
 STAFFING
 DIRECTING
 CONTROLLING
 REPORTING
 BUDGETING
P O S D C O R B

TAYLOR- FATHER OF
SCIENTIFIC MANAGEMENT
Replacing the rule of thumb with
science.
Financial incentives.
Job analysis.
Maximum output.
Separation of planning & doing.

PRINCIPLES OF
MANAGEMENT BY TAYLOR
PPRINCIPLES
OF
MANAGEMENT
Job analysis
Maximum output
Separating
planning & doing
Financial
incentives
Replacing
rule of thumb
with science

RULE OF THUMB WITH SCIENCE
 In scientific management, organized
knowledge should be applied, which will
replace the rule of thumb ( use of aptitude,
experience & physical strength).
 A worker should be given a work for which
he is physically & technically most suitable.
 Apart from selection proper emphasis
should be given on the training of the
workers which will make them more
efficient & effective.

FINANCIAL INCENTIVES
Financial incentives can motivate
workers to work maximum.
It paves ways to earn higher
wages by putting extra efforts.
Workers will be motivated to
work more.

JOB ANALYSIS
 Job analysis is undertaken to find out the best
way of doing thing.
 The best way of doing a job is one which requires
less time & cost.
 Time study involves the determination of time &
movement taken to complete the task.
 The task which takes minimum time is the best
one.
 Motivation study involves elimination of
unnecessary movements in as doing job.
 Fatigue study shows the amount & frequency of
rest required in completing the work.

MAXIMUM OUTPUT
Scientific Management involves
continuous increase in production
& productivity.

SEPARATION OF PLANNING
& DOING
 Taylor emphasized separation of
planning aspect from actual doing
work.(Planning should be done by the
supervisor & the actual work should be
done by the worker)

PRINCIPLES OF
MANAGEMENT
HENRY FAYOL ; Father of modern
operational management theory
He categorized the activities of
an industrial organization as
MANAGERIAL,SECURITY,FINANCIAL
, COMMERCIAL & TECCHNICAL.

GENERAL PRINCIPLES OF
MANAGEMENT

Fayol’s
Principles of
management
Esprit de
corps
Division
of work
Scalar
chain
Equity
Order
Centralization
Remuneration
Subordina
tion of
individual
interestUnity of
direction
Stability
Unity of
command
Initiative
Discipline
Authority &
Responsibility

DIVISION OF WORK
He has advocated that division of
work to take the advantages of
specialization

DISCIPLINE
 All the persons serving in the
organization should be disciplined.
 Discipline may be of two types : Self
Imposed discipline, Command discipline.
 Self imposed discipline comes from within
the individual & in nature of a
spontaneous response to a skillful leader.
 Command discipline stems from a
recognized deterrent to secure
compliance with a desired action

UNITY OF COMMAND
 Unity of command refers to a state where
a person gets orders & instructions from
only one supervisor.
 The more complete an individual has a
reporting relationship to a single
superior, the less is the problem of
conflicts in instructions & greater is the
feeling of personal responsibility for
results.

UNITY OF DIRECTION
 According to this principle each group of
activities with same objectives must go
from one head & plan.
 The unity of direction is concerned with
functioning of the organization in
respect of its grouping of activities or
planning

SUBORDINATION OF INDIVIDUAL
TO GENERAL INTERST
Individual interest must be
subordinated to general interest
when there is conflict between
two

REMUNERATION OF PERSONNEL
Remuneration of employees should
be fair & provide maximum possible
satisfaction to employees

CENTRALIZATION
Refers to an organizational structure
where very important tasks &
decisions are vested with the top
officials.

SCALAR CHAIN
There should be a scalar chain of
authority & communication ranging
from highest to the lowest.
It suggests that each
communication going up or coming
down must flow through each
position in line of authority

ORDER
This principle relates to the
order of things.
There should be a place for every
thing & every thing in it’s place.

EQUITY
It is the combination of justice
& kindness, equity in treatment
& behavior.
It brings loyalty & devotion from
subordinated.

STABILITY OF TENURE
There should be reasonable security
for job.
The employee should not be removed
from the job shortly.
Stability of tenure is essential to get an
employee accustomed to new work &
succeeding in doing it well.

INITIATIVE
Within limits of authority & discipline,
managers should encourage their
employees to take initiative.
Initiative is concerned with thinking
about execution of plan.
Initiative increases zeal & energy on
the part of human beings.

ESPIRIT DE CORPS
This is the principle of “UNION IS
STRENGTH” & extension of unity of
command for establishing team
work.
The erring employee should be ser
right by oral directions & not by
demanding written explanation.

THEORIES OF
MANAGEMENT
1. Classical School.
2.Neo Classical School.
3. Behavioral School.
4. Modern School.

1. Classical School.
 Oldest school of management thought.
 According to Luther Gullick, Organization is
the formal structure of authority through
which work subdivisions are arranged,
defined & co ordinated for the objective.
Organizations have a hierarchical line of
authority. This line of authority helps to
clarify, define the position & responsibilities
in an organization.

 The Classical School has three streams :
1. Scientific Management.
2. Administration management
or management process.
3. Bureaucracy.

SCIENTIFIC MANAGEMENT
 The basic components are ;
Determination of standards of
performance.
Functional foremanship.
Responsibilities of management.
Different piece of work system.
Mental revolution.

MANAGEMENT PROCESS
SCHOOL
It regards management as the
process of getting things done
with & through people as
individuals.
It regards management as an
universal process.

BUREAUCRACY
Max Weber propounded the
bureaucratic theory.
BUREAUCRACY refers to
“certain characteristics of
organizational DESIGN”.
(A Hierarchy of authority &
chain of command running
throughout the organization)

NEO CLASSICAL SCHOOL
This also known as human
relation’s school.
It emphasize the human
dimension of management.
It’s findings lead to motivation to
work, morale & productivity.
(Incentives are given)

BEHAVIOURAL SCIENCE
SCHOOL
MANAGEMENT is the process of
getting things done by people
(managers), so managers should
understand human behavior.
Motivation, Leadership,
Communication, participative
management & group dynamics are
central core of this approach.

MODERN SCHOOL
 It is a decentralized approach in which the
lower levels are allowed the discussions to
decide the most important decisions.
 Two approaches come under this school of
thought.
 1. THE SYSTEM THEORY SCHOOL.
 2. CONTINGENCY APPROACH.

COMPONENTS OF THE SYSTEM
MODEL
 The components of the system model are :
 1. Boundaries.
 2. Goals.
 3. Set Factors.
 4. Input.
 5. Output.
 6. Feedback.

THE CONTINGENCY MODEL
The contingency theorist aim at
integrating theory with practice in a
systems framework
A contingency approach is an
approach where the behavior of one
submit is dependent in it’s
environmental relationship to other
units or sub units that have control
over the consequences desired by the
sub units.

ROLE OF A NURSE AS A
MANAGER
 Assign staff the duties to ensure smooth
functioning to achieve goal.
 Co ordinate the activities by scheduling
work assignment, setting priorities &
directing the work of subordinate
employees.
 Evaluate & verify the nurses’
performance, through review of
completed work assignments & work
techniques.

Identify & staff development &
training needs and ensure that staff
nurses get the training.
Maintain records, prepare reports &
composes correspondence related to
work.
Supervise the general nursing
services provided by staff nurses.

Develop plan & objectives for her
work area.
Evaluate nursing programmes &
nursing care plans.
Conduct assessment of patient’s need
& initiate nursing care plan.
Co ordinate the community nursing
activities with those of social work
staff to ensure continuity of care.

 Evaluate & document patient’s progress.
 Serves as a liaison between the staff
nurses & higher authority
 Act as an advisor to the other disciplines.
 Assess needs for personnel, supplies,
equipments & physical facilities for
budget planning.

Organize educational activities for the
development of staff nurses.
In brief,……. A nurse manager performs
functions such as planning, organizing,
staffing, delegation of authority, co-
ordination, reporting, budgeting,
supervising, assessing, implementation,
evaluation & act as a liaison between
staff & others

ROLE OF A NURSE AS A MANAGER
planning
organizing
staffing
delegation
coordination
Recording &
reporting
budgeting
Role of a
nurse as a
manager
1. Plan educational
activities.
2. Plan budget
activities.
3. Plan activities for
work area
1. Organize staff
development prog.
2. Plans to achieve
prevention of cross
infection
Staffing by
assigning
work to staff
& scheduling
work
assignment
according to
priorities
Budget
planning
for
supplies,
equipme
nts,
physical
facilities
Maintain records,
prepare reports for
policy & decision
making
Coordinate the
activities of staffs
with other team
members
Delegate
authorit
y to staff
nurses to
assess &
plan Nsg
care

ROLE OF A NURSE AS AMANGER
FORMAL AUTHORITY &
STATUS
INTERPERSONAL ROLES
FIGURE HEAD LEADER LIASON
INFORMATIONAL ROLES
MONITOR DISSIMINATOR SPOKESPERSON
DECISIONAL ROLES
ENTERPRRENUER DISTURBANCE HANDLER
RESOURCE ALLOCATOR NEGOTIATOR

NATURE &
CHARACTERISTICS OF
ADMINISTRATION

NATURE & CHARACTERISTICS
 1. Universal & Holistic.
 2. Goal Oriented.
 3. Continuous & ongoing.
 4. Existence of sequences in management
functions.
 5. Social & Human.
 6. Presence of inter relationship.
 7. Flexible & Dynamic.
 8. Common to all organizations.
 9. Innovative or Creative.
 10. Providing framework for guidance.

FREDRICK WINSLOW
TAYLOR (1857 -1915)

 Was born in 1856 in a well to do family, in
Philadelphia.
 He had a quality of seriousness of purpose & hard
work.
 He paid a high price of serious impairment of
vision because of too much study in kerosene
light.
 In 1874 he began as apprentice pattern making in
a small workshop.
 Later he switched on to Midvale Steel Company.
 Here he progressed through the stages of ordinary
laborer to time keeper, machinist, gang boss,
foreman, asst engineer to chief of works.

 He completed by taking his technical
qualifications by taking a Master’s Degree in
engineering at Stevens Institute.
 He invented several industrial tools &
conducted research on methods of training
workers to increase industrial production.
 Taylor believed that the principle “best
management is a true science”.
 Taylor was a pioneer who propounded
scientific principles of management as the
result of his keen research in different areas of
industrial activity.

 Taylor was thoughtful & systematic in his
approach & advocated the following.
 The replacement of rules of thumb with more
carefully thought out guidelines to action.
 The collection of data to support decisions
rather than reliance on casual judgment.
 The elimination of waste effort.
 Emphasis on fitting workers to a particular
work.
 Greater care in training workers to the specific
requirements of their jobs.

 Greater specialization of work activities
 .
 The establishment of standards for
performance.
 Standardization, Simplification, Time &
motion studies, functional foremanship,
production planning & control, Piece
wage system for payment on differential
basis were the main ideas enunciated by
Taylor

 Frank Gilberth & his wife Lilian Gilberth made
memorable contribution to improvement of
working methods.
 He contended that it would be essential to find
out the best way to perform a particular job
with marked efficiency & least exertion. He
developed a unique technique of speed work.
 He advocated “ rhythm in work”.
 Gilbert introduced the use of micro motion
study.

 Gilberth advocated the following sequences :
 Identifying the problem & objectives.
 Defining the objectives & problems.
 Collection of data on problem & objectives.
 Analysis & interpretation of data.
 Consideration of alternatives.
 Formulation of tentative alternatives.
 Taking up selected action on the basis of
conclusions & testing the results.
 Reviewing & evaluating the results.
 Introducing corrective action if necessary.
 Framing “laws & models” to serve as a guide to
planning & execution

 Luther Gullick was a classists was influenced by
Taylor & Fayol.
 He used Fayol’s five elements of administration.
 Planning, Organizing, Command, Coordination
& Control as framework for his neutral
principles.
 Gullick condensed the duties of administration
into a famous acronym “POSDCORB”.
 Each letter in the acronym stands for one of the
seven activities of the administrator .
 PLANNING : Working out the things that needs
to be done, & the methods of doing them to
accomplish the purpose set for the enterprise.

 ORGANIZING : Establishment of the formal
structure of authority through which work
subdivisions are arranged, designed &
coordinated for the defined objectives.
 STAFFING : The whole personnel function of
bringing in & training the staff & maintaining
favorable conditions of work.
 DIRECTING : Continuous task of making
decisions & embodying them in specific &
general orders & instructions & serving as the
leader of the enterprise.

 COORDINATING : All important duties of
interrelating the various parts of the work.
 REPORTING : Keeping the executive informed
as to what is going on, which includes keeping
himself & his subordinates informed through
records, research & inspection.
 BUDGETING : All fiscal planning, accounting &
control
 Gullick was very much influenced by Fayol’s 14
principles. He expressed principles of
administration as follows.

 Division of work or specialization.
 Bases of departmental organization.
 Coordination through hierarchy.
 Deliberate coordination.
 Coordination through committees.
 Decentralization.
 Unity of Command.
 Staff & line.
 Delegation.
 Span of control

THE FOUR FACTORS OF GULLICK
 PURPOSE.
 PROCESS.
 PERSONS.
 PLACE.

LYNDAL URWICK
 Lyndal Urwick is also one among classical
theorists.
 Urwick concentrated his efforts on the
discovery of principles & identified 8
principles of administration applicable to
all organizations as given below.
 The “Principle of Objective”

 The “Principle of Correspondence”
 The “ Principle of Responsibility”
 The “ Principle of Span of Control”
 The “Scalar Principle”
 The “ Principle of specialization”
 The “ Principle of Coordination”
 The “ Principle of Definition.

MAX WEBER
 Max Weber (1864-1920) was a German
intellectual.
 His major work on theory of Social & Economic
Organization had a major impact on American
Management.
 He advocated “BUREACRACY” as the ideal form
of organization for a complex institution.
 Weber described bureaucracy as having a well
defined hierarchy of authority, division of work
based on specialization, highly specific rules
governing worker’s duties & rights

 Weber claimed that bureaucracy was
superior to other forms of organization,
because it provides greater stability,
precision & reliability in controlling
employees.
 His areas of emphasis are ; hierarchy of
Authority, A system of rules, Division of
labour, Impersonality of relationship, A
system of work procedure & Legal
authority & Power.

MARY PARKER FOLLETT
 Mary Parker Follett (1869 -1933) was an
American.
 She viewed management as a social process.
 She advised & stressed managers on
leadership skills rather than possessing
specific personality traits.
 She stressed that manager & employee
should analyze the situations together &
then take orders from the situation.

 Mary’s area of contribution has been the
psychological foundations of a human
activity & the emotional elections in the
working of human groups.
 She contended that no one can become a
full person unless he becomes a member
of a group.
 According to Follett, “ Man can discover
his true nature, can reach greater release
of his own relative powers, gains his true
freedom through powers of the group

 Follett’s major areas of contribution are ;
 Removal of conflict.
 Participation of workers.
 Group dynamics.
 Leadership.
 The law of situation.
 Management as a profession.
 Co - ordination.
 Authority.

ELTON MAYO The contribution of Elton Mayo to administrative
organization has been great innovation of the
modern times.
 Elton Mayo conducted the famous Hawthorne
studies.
 The purpose of the study was to determine
relationship between intensity of illuminations &
workers productivity.
 Elton Mayo (1880 -1949) offered evidence that an
organization is not only formal arrangement of
men but also a social organization.

 Mayo’s initial interest was in fatigue, accidents &
labor turnover.
 Mayo was the first person to emphasize the
understanding & realization of the human factor in
organization.
 He concluded that of all the factors influencing
employee’s behavior the most powerful were those
emanating from the workers participation in social
groups.
 Mayo felt that work satisfaction depends to a large
extent on the informal social pattern of the
working group.

KURT LEWIN
 Kurt Lewin is a social psychologist, developed
the field theory of human behavior. (1951)
 He claimed that a worker’s on the job behaviour
is influenced by interactions between workers
personality, work group structure &
sociotechnical climate of the work place.
 On the basis of his study, Lewin concluded that
the process of behaviour changes occurs in three
phases.
 He is referred to as the father of Group
Dynamics

 Kurt Lewin developed the field theory of
organization.
 The theory focuses on man as a function of the
person & his field or environment.
 Lewin demonstrated that democratic
leadership style is more effective in building
morale & promoting active participation.
 He proposed the three stage model of change.
 UNFREEZING.
 CHANGING.
 REFREEZING

 UNFREEZING : When an alteration in
social & psychological forces is perceived,
an individual’s equilibrium is distributed,
facilitating attitudinal & behavioural
change.
 When thus imbalanced , an individual can
be motivated to other behaviour, either by
increasing pressure to make the change
or reducing threats associated with the
change.

CHANGING
 The individual demonstrates the desired
attitudes & behaviour either by
mimicking behaviour or by “discovering”
the desired attitudes & behaviours when
placed in a situation that required trend

REFREEZING The individual integrates the newly
acquired attitudes & behaviour into daily
activities & organizing relationships.
 Whether the new behaviours are learned
through identification of self – discovery,
the individual will not display permanent
behaviour chance unless the desired
behaviour is continually reinforced by
superior, peers & subordinateds.

 Abraham Maslow is an American psychologist.
 He has given the classification of human needs known as
“NEED HIERARCHY”.
 According to Maslow, human needs can be categorized as:
Basic Psychological needs, Security & Safety needs, Social
needs, Ego or Esteem needs & Self fulfillment or Self
Actualization needs.
 These needs are further divided into
 Primary needs – Psychological & Security needs
 Secondary needs – Social , ego & Self fulfillment
needs.


 Maslow in his classical paper “ A Theory
of Human Motivation” (1943) outlined an
overall theory of motivation.
 He analyzed the relationship between the
human beings & the organizations from
the stand point of “ Human Needs”.
 Maslow arranged individual needs in an
hierarchical manner .

Psychological needs
Security needs
Social needs
Self Esteem
needs
Self Actualization
needs
Lower needs
Medium needs
Higher needs
Presentation of individual needs in hierarchical manner .
Abrham Maslow

PHYSIOLOGICAL NEEDS
 Includes basic things necessary for human
survival, e.g. hunger, thirst, shelter, etc.
 The human being needs to satisfy these
needs first- Once these needs are satisfied
individual no longer strives hard to obtain
these and he himself is motivated to work
hard for organization

SECURITY NEEDS
 Include job security or job safety and the
work place, thus giving psychological
security to human beings. Safety includes
both physical & emotional safety.
 Human being is a safety seeking
mechanism.
 Once safety & security is ensured, they no
longer motivate the human being.

SOCIAL NEEDS
 Represent the relationship between &
among groups of people working in the
organization.
 This need provides emotional security to
people & also gives a sense of
belongingness & association.
 Every human being needs friendship with
others.
 If these needs are not met the employee
becomes resistant & hostile.

ESTEEM NEEDS
Represents a higher level needs.
At this level, they strive for power,
achievement & status.
Esteem cannotates both self – esteem
& esteem from others.

SELF ACTUALIZATION
 Is a higher level need & represents
culmination of all other needs.
 The fulfillment of this need gives a higher
degree of satisfaction to individual in work &
life.
 It improves a person’s performance in the
organization.
 A self actualized person has fulfilled all his
potential.
 This represent’s person’s motivation to
transform perceptions of self into reality.


 The fulfillment of esteem needs gives self
confidence to people & prepares them to
take up leadership positions, guidance to
others & appraising the performance of
others.
 After satisfying the esteem needs person
proceeds achieve self actualization needs.
 This is described as achieving the
meaning & purpose in life through
personal & professional growth.
 It is expressed by achieving higher
performance on a role.

 Mac Gregor is the father of the classical theory
of management.
 Mac Gregor put forth the theory as a modest
beginning for a new theory.
 Mac Gregor thesis is that the average employee
has high degree of imagination ingenuity &
creativity & under conducive atmosphere the
individual seek responsibility & if committed to
objectives he will exercise self direction & self
contract.
 He advocated the task of management to be
creating opportunities, encouraging growth,
removing obstacles, providing guidance &
realizing potential.

 Mac Gregor is a behavioral scientist & a strong
believer in the potentialities of human beings in
contributing organizational performance.
 According to him the traditional manager in a
bureaucracy operates on a set of assumptions about
human nature & human behavior: that he has called
as “Theory X”, according to this theory the
assumptions are :
 1. The average human has inherent dislike of
work & will avoid it, if he can, when
possible.
 2. Because of dislike of work, most people must
be coaxed, controlled, directed, threatened with
punishment to get through, put forth adequate effort
towards the achievement of organizational objectives

 The average human being prefers to be directed,
wishes to avoid responsibility, has rationally
little ambition & is more interested in financial
increments & wants security above all than
personal achievements.
 In such case the management has two strategies
to adopt viz. hard & soft.
 Hard strategy implies the use of techniques like
close supervision, tight center, coercion &
threat.
 Soft strategy is more permissible, meets the
demands & attempts to harmonize the demands
of the organizations and that of the employees.

 Mac Gregor himself questioned the validity of the
theory put forth by him, & there fore came out with
the “Y” theory.
 Theory “Y” provides more accurate assessment of
human nature, one that encourages workers to
develop their full potential.
 The assumption about human under Theory “Y” are
:
 1. The expenditure of physical & mental effort in
work is as rational as play or rest. The average
individual does not inherently dislike work.
 2. External control & the threat of punishment are
not the only means of bringing about efforts
towards organizational objectives. People will
exercise self control & self direction when pursuing
goals to which they are personally committed.

 3.Commitment to objectives is a function of the
rewards associated with their achievement. The
most significant of the rewards e.g., the
satisfaction of ego & self actualization needs,
can be direct products of efforts directed
towards organizational objectives.
 4.The average human being learns, under
proper conditions, not only to accept but to
seek responsibility. Avoidance of responsibility,
lack of ambition & emphasis on security are
generally consequences of experience, they are
not inherent.

 5. The capacity to exercise a relatively
high degree of imagination, ingenuity &
creativity in the solution of
organizational problems is widely not
narrowly, distributed in the population.
 6. Under condition of modern industrial
life, the intellectual potentialities of the
average human being are only partially
utilized.

 The theory underlines the importance of
maintaining an organization where people feel
confident & motivated
 The corner stone of Mac Gregor framework, is self
restraint, self direction,goal orientation &
human values in the organization

 According to Argyris (1964) during maturation,
the individual moves to a condition of greater
independence, more achievements, musts &
activities, longer time perspective & increased
self control.
 Argyris claimed that the rigid structure &
stringent rules of bureaucracy block normal
maturation, encouraging employees to become
passive & dependent & decreasing their job
satisfaction & emotional health.
 According to Chris, as the individual grows from
infancy to adulthood, he has a tendency to move
from passivity to activity; from dependency to
independence; from lack of awareness to self
awareness.

 Argyris suggested the redesign of jobs.
 Organization structures & content system
& positive leadership styles for the
effective motivation of employees.
 According to him managers must provide
them with opportunities for a variety of
experiences, give them responsibility &
rely more on the employees, self direction
& self content.

 Rensis Likert proposed that effective
organization are those where supervisors focus
attention on building effective work groups with
high performance goals, so worker will support
organizational goals & cooperate with superiors
& peers.
 Likert advocated “system 4” approach to
organizational development in which
organizational structure facilitates continuous
interaction among various groups in the
organization, so work is controlled through
mutual influence by employees.

 A “system 4” organization is one in which
superiors & subordinates trust each other in all
matters, information flows freely throughout
the organization (upwards, downwards,
laterally) employees participate in setting high
but achievable goals, decisions are made at all
levels, training is provided to upgrade
personnel & the control mechanism stimulates
workers to solve their own problems.
 Likert conducted extensive research at Institute
of Social Sciences Michigan USA & based in the
findings of research work, he advocated four
styles of management. Viz; Exploitative
authoritative, Benevolent authoritative,

 Likert advocated participative type of leadership
style.
 He maintained that the use of supportive
relationships, group decision making & high
performance goals are must for achieving a higher
productivity.
 Likert put forward the supportive style as the new
pattern of management.
 He identified two distinct leadership.
 1. Orientation towards employees with emphasis
on interpersonal relations on the job.
 2. Orientation towards production with
emphasis on technical aspects of the job

 Likert concluded that employee orientation
coupled with general rather than close
supervision leads to higher productivity,
greater group cohesiveness, better morale, less
anxiety & lower turnovers of employees

 Herbert Simon is a decision theorist who views
business & service institutions as networks of
decision makers.
 He analyzed human behavior in terms of it’s
value preference in decision making process.
 Human behavior involves conscious or
unconscious selection of particular alternative
which is physically possible & organizationally
effective.
 The selection of a choice refers to preference of
a course of action over other courses of action.

 In any mechanized action, the choice & the action
are directly related.
 The decision – making process involves three
important phases of activities. These are :
 1. Intelligence activity.
 2. Design activity.
 3. Choice activity.
 INTELLIGENCE ACTIVITY : Involves finding, access
to taking decisions, for which executive has to
analyze the organizational environment & identify
the conditions that need decision.
 He likes the alternative strategies for problem
solving.

 DESIGN ACTIVITY : Involves development of
alternatives to do a particular job.
 Here the executive identifies the merits &
demerits as well as problems involved in each of
the alternatives, determining likely
consequences of each alternative.
 CHOICE ACTIVITY : In this stage, decision
maker should choose or select one of the
alternative or course of action, keeping in view
the organizational goals. Here, executive
evaluates consequences & selects the course of
actions.

 This behavioral approach of Simon emphasized
that insight into the structure & function of an
organization can best be gained by analyzing the
manner in which the decisions & the behavior of
the employees are influenced within & by the
organization.
 Simon suggests that work decisions should be
taken at all levels of an organization& that each
decision should be based on premises about
people as information processors.
 He identifies two types of decision man.
 ECONOMIC MAN
 ADMINISTRATIVE MAN

 The economic man is completely rational
& so uses optimizing decision strategy to
seek greater possible gain from each
action. Economic man is a rational
decision maker.
 A administrative man willingly satisfy,
realizing his perception of the world &
use single rules of thumb to guide
decision making.

 Chester I Bernard ( 1886- 1961) was a
sociologist.
 His major contribution was how to
develop cooperation among individual
through the formal organization.
 Bernard defined that there are three
universals in each system.
 1. Willingness to co operate.
 2. Common purpose.
 3. Communication.

 In a system these are non logical elements that
influence the behaviors of the members of an
organization.
 Informal organization is the aggregate of the
personal contacts .
 Bernard highlighted the function of the
executive as
 1. Providing a system of communication.
 2. Securing efforts.
 3. Formulating & defining purpose.
 Cheater Bernard viewed an organization as a
social system.


 Bernard laid emphasis on organizations as
cooperative systems.
 He defines a organization as a system of
consciously coordinated personal activities or
forces.
 The organization comes into existence when :
 There are persons willing to communicate.
 Who are willing to contribute to action.
 To accomplish a common purpose.

 Accordingly the elements of organization are
communication, willingness & common
purpose.
 The process of cooperation in an organization
require the following to make it effective.
 1. The place where work is done.
 2. The time in which the work is done.
 3. The person with whom the work is done.
 4. The things upon which the work is done.
 5. The method or process by which the work
is done

 Henry Mintzberg had the opportunity to
observe the top level managers, activities that
make him to refute the notion that managers
spend most of their time in planning,
organizing, coordinating & controlling
activities,
 He claimed that modern manager is not
thoughtful, systematic planner whose decisions
derive from careful analysis of objective data.
 He asserts that managerial activities are more
reactive than productive & are characterized
by brevity, variety & discontinuity.

 He concludes that managers do not base decisions on
so called hard data supplied by a management
informations with others.
 Mintzberg reports that the topical manager or
administrator patrons ten roles; which includes those
are interpersonal, they are informational & decisional
role as given below :
 INTERPERSONAL ROLES : are figurehead, leader &
liaison's a figure head a manager represents his
institution at ceremonial events such as conducting
visiting dignitaries through the organization &
hosting other function. As a leader the manager hires
& trains subordinates, schedules work hours,
distributes assignments & directs group efforts to
organizational goals

 INFORMATIONAL ROLES: Information roles
are monitor, disseminator & spokesman. As a
monitor a manager sees the environment for
information needed to portray other roles. As
disseminator a manager transmits some
recently acquired information to superiors,
peers, subordinates or clients. As a
spokesperson a manager directs work related
information to persons outside the unit or
agency.

 DECISION ROLES : Decision roles are entrepreneur,
disturbance handler, resource allocator &
negotiator. As an entrepreneur, a manager develops
new projects, as a disturbance handler a manager
responds to high pressure disturbances that
threaten to disrupt the work force & defeat goals.
As a resource allocator a manager determines what
portion of the agency is financial, personnel,
supply & equipment resources should be Allocated
to each employee.
 As a negotiator a manager confers with persons
inside or outside the agency to obtain concession
or render agreement on pivotal issues.

 W Ouchi developed Theory “Z” as a means for applying,
Japanese management principles to American industry.
 This approach combines elements of Japanese &
American management prochas in order to combine the
strength of both.
 This philosophy incorporates the following concepts:
 1. Life long employment in the same firm.
 2.Infrequent evaluation & promotions.
 3. Non specialized carpet path development.
 4. Implicit control of worker’s behavior.
 5. Collective decision making.
 6. Group responsibility for quality.
 7. Holistic concern for employee welfare.

a
 Taylor’s ideas were further strengthened &
developed by Henry Gantt & Gilberth.
 Among the chief contribution of Gantt are :
 1. GRAPHIC CHART : It helps in showing
daily progress of production & thus facilitating
production planning & control.
 2. EMPHASIS ON HUMAN ELEMENT : It
emphasizes the respect for human nature & the
development of talent & potential of workers. It
amounts to directing their development
instead of driving them.

 INDUSTRIAL DEMOCRACY : It amounts to the
organization of industry in such a way that
each individual has an equal opportunity to
function at his highest capacity.
 SOCIAL RESPONSIBILITY : Emphasizes that the
business system must accept its social
responsibility & devote itself primarily to
service. Gantt also brought out that the
responsibility of management is to teach &
train workers to become more skilled, for better
work habits & more dependability.

OLIVER SCHELDON
 Recognized that a company should play
an important role as a part of socially
rather than a means of earning.
 Better working conditions & efficient
management are some of the important
factors.

HENRY DENNISON
Dennison developed the concept of
motivation, leadership & team work

ALVIN BROWN
Alvin concentrated on the evaluation
of the principles of delegation of
authority

MONEY & REILEY
 They evolved a logical framework for the
theory of organization by presenting
certain principles of organization which
occupy an important place in the modern
theory of organization & management

SCHOOLS OF MANAGEMENT THOUGHT
CRITERIA MANAGEMENT
PROCESS SCHOOL
EMPIRICAL SCHOOL HUMAN
BEHAVIOUR
SCHOOL
CONCEPT The school
provides concept
on framework
which can be
usefully utilized
to identify the
essentials of
management
Management is the
study of
experiences of
managers. It is also
named as the
management by
custom school
Management is
the study of
behavior of
people at work
SCOPE This approach is
identified with-
Operational
Approach;
Universalist
Approach:
Classical
Care method is the
important tool of
study for empirical
school of thought
Depends on
several
behavioral
sciences

CRITERIA MANAGEMENT
PROCESS
SCHOOL
EMPIRICAL
SCHOOL
HUAMN BEHAVIUR
SCHOOL
CONTRIBUTOR
S
Henry Fayol, JD
Moorey, Ac
Reily, Lyndall
Urwick,Koontz,
Newman &
Summers
Earnest Dale Elton Mayo, Mac
Gregor, Keith
Davis, Maslow,
Argyris &
Herzberg
CRITICISM Since
organizations
function under
dynamic
conditions,
universal
principles
Managers have
to contribute
under dynamic
conditions &
history does not
repeat itself.
Confining the
study of
management only
to human
behavior or
human relations
would unduly
restrict the stand
of the empirical
scope of
management

CRITERIA SOCIAL SYSTEM
SCHOOL
DECISION
THEORY
SCHOOL
MATHEMATICAL
SCHOOL OR
QUANTITATIVE
SCHOOL
CONCEPT Management as a
cooperative
system & study of
organization as a
collaborative
system.
Collaboration
should be
promoted among
systems.
System is an
entity or inter
related
subsystems.
It is based on
the rational
approach to
decision making
It offers a
quantitative
method of
decision making.
It is possible to
quantify &
express the
various factors in
the form of
mathematical
models.
E.g. Operation
Research,
Mathematical
tools, Simulation,
Model Building,
PERT, Break Even
Analysis.
CONTRIBUTORS Max Weber, Chester Taylor, Gilberth,

CRITERIA SYSTEM’S APPROACH
SCHOOL
CONTNGENCY APPROACH
SCHOOL
CONCEPT Management is a
system or an
organized whole.
Overall
effectiveness of
the system is
more important
than sub systems.
School of thought
is more close to
reality.
Effective
management is
always situational.
Practicing managers
should take into
account the realities
of a given situation.
CONTRIBUT
ORS
Kenneth,
Johnson, Rosen,
Zwieg
Johan Woodward,
Fiedler, Lorsch &
Lawrence

CRITERIA SYSTEM’S APPROACH SCHOOL CONTINGENCY
APPROACH
SCHOOL
SCOPE System approach can be utilized
by other approaches including
process approaches; decision
theory & behavioral science.
It can be used in important
subsystems of management viz.
Organization Design;
Leadership; Behavior Change
Nil
MERIT System Approach has edge over
the other approaches being, it is
closer to reality.
Nil

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