This document provides information about various management theories and approaches including: 1. The Classical Approach including Bureaucratic Management Theory by Max Weber and Scientific Management concepts by F.W. Taylor from 1910. 2. The Neo-Classical Approach including the Human Relations movement led by Elton Mayo and behavioural science concepts from A. Maslow and Douglas McGregor in the 1940s. 3. The Modern Approach including System Approach proposed by Boulding and Johnson in the 1950s, and Contingency Approach developed by theorists like Lorsch and Lawrence.

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3. THEORIES AND APPROCHES OF MANAGEMENT
1. THE CLASSICAL APPROACH
– BUREAUCRATIC MODEL INTRODUCED BY MAX WEBER (AROUND 1900)
– SCIENTIFIC MANAGEMENT CONCEPTS BY F.W. TAYLOR (1910)
– FUNCTIONAL & ADMINISTRATIVE THEORY BY HENRY FEYOL (1910)
2. THE NEO CLASSICAL APPROACH
– HUMAN RELATIONS APPROACH BY ELTON MAYO AND ROETHLISBERGER (1930)
– BEHAVIOURAL SCIENCE MOVEMENT BY A. MASLOW, McGREGOR (1940)
3. THE MODERN APPROACH
– SYSTEM APPROACH PROPOUNDED BY BOULDING, JOHNSON (1950)
– CONTINGENCY APPROACH DEVELOPED BY LORSCH, LAWRENCE

4. 1. The Classical Approach

5. 1. Bureaucratic Management Theory by Max Weber
• Bureaucratic management theory developed by Max Weber, contained two
essential elements, including structuring an organization into a hierarchy and
having clearly defined rules to help govern an organization and its members.
• Max Weber (1864-1920), a German sociologist; described a theory to operate
an organization in an effective way which is known as the Bureaucratic
management approach or Weberian bureaucracy.
• Max Weber’s work was oftentimes interpreted as a caricature of modern
bureaucracies with all of their shortcomings.
• According to Max Weber, the Bureaucratic management approach emphasized
the necessity of organizations to operate in a rational way instead of following
the “arbitrary whims” or irrational emotions and intentions of owners and
managers.

6. 1. Bureaucratic Management Theory by Max Weber
• Bureaucratic management approach developed by Max Weber is not suitable
for business organizations but may be suitable for government organizations.
• Max Weber described 6(six) principles of the Bureaucratic management
approach:-
– Proper Division of Labor
– Chain of Command
– Separation of personal and official property
– Application of Consistent and Complete Rules
– Selection and Promotion Based on Qualifications
– Training in job requirements and skills
• BOOK: “THEORY OF SOCIAL AND ECONOMIC ORGANISATION”
• FATHER OF BUREAUCRACY

7. • Features of Bureaucratic Organization
– The high degree of Division of Labor and Specialization.
– There is a well-defined chain of command.
– It follows the principle of Rationality, Objectively and Consistency.
– The relationship among the member of the organization is Formal
and Impersonal relations. And it’s based on positions and not on
personalities.
– Rules and Regulations are well defined and it indicates the duties
and rights of the employees. These rules apply to everyone from to
bottom of the organization and must be strictly followed.
– Selection and Promotion are based on Technical qualifications.
– Only Bureaucratic or legal power is given importance.

8. • Criticism of Bureaucratic Organization
– The emphasis only on rules and regulations.
– There will be unnecessary delays in decision-making due to formalities and rules
of Bureaucratic Organization.
– Coordination and communication hampered because of too much formality and
rules.
– Bureaucracy involves a lot of paperwork and has just too much level of authority
which results in a lot of wastage of time, effort and money. Not ideal for efficiency.
– Because of its too much formality, a Bureaucratic approach is not suitable for
business organizations. The bureaucratic model may be suitable for government
organizations.
– The bureaucratic structure gives all the importance and power to top-level
management.
– Bureaucratic management gives a window for “red-tapism”.

9. 2.SCIENTIFIC MANAGEMENT CONCEPTS BY F.W. TAYLOR (1910)
– The Scientific Management Theory is well known for its application of engineering science at
the production floor or the operating levels. The major contributor of this theory is Fredrick
Winslow Taylor, and that’s why the scientific management is often called as “Taylorism”.
• The major principles of scientific management, given by Taylor, can be summarized as follows:
– Separate planning from doing.
– The Functional foremanship of supervision,i.e. Eight supervisors required to give directions
and instructions in their respective fields.
– Time, motion and fatigue studies shall be used to determine the fair amount of work done by
each individual worker.
– Improving the working conditions and standardizing the tools, period of work and cost of
production.
– Proper scientific selection and training of workmen should be done.
– The financial incentives should be given to the workers to boost their productivity and
motivate them to perform well.
• Thus, the scientific management theory focused more on mechanization and automation, i.e.,
technical aspects of efficiency rather than the broader aspects of human behavior in the
organization.

10. 2.SCIENTIFIC MANAGEMENT CONCEPTS BY F.W. TAYLOR (1910)
– SCIENCE, NOT RULE OF THUMB
– HARMONY, NOT DISCORD
– MENTAL REVOLUTION
– COOPERATION, NOT INDIVIDUALISM
– DEVELOPMENT OF EACH AND EVERY PERSON TO HIS OR HER GREATEST
EFFICIENCY AND PROSPERITY
• TECHNIQUES OF SCIENTIFIC MANAGEMENT
– FUNTIONAL FOREMANSHIP (8 PERSONS GROUP)
• PRODUCTION DEPARTMENT(4-SPEED BOSS, INSPECTOR, MAINTENACE
FOREMAN, GANG BOSS)
• PLANNING DEPARTMENT (4- ROUTE CLERK, INSTRUCTION CARD CLERK, TIME
AND COST CLERK, DISCIPLINIARIAN)
PRINCIPLES OF
S. MANAGEMENT

11. • TECHNIQUES OF SCIENTIFIC MANAGEMENT
– MOTION STUDY (ELEMINATION OF UNNECCESARY WORK)
– TIME STUDY (TIME SAVING)
– DIFFERENTIAL PIECE WAGE SYSTEM (PAY BASED ON EFFICIENCY)
– STANDARDISATION (RAW MATERIALS, PRODUCT,MACHINES AND EQUIPMENTS,
METHODS, WORKING CONDITIONS)
– WORK STUDY (VARIOUS OPERATIONS IN ORG)
• METHOD STUDY
• SCIENTIFIC SELECTION AND TRAINING OF WORKERS
• FATIGUE STUDY
• MENTAL REVOLUTION
NOTE:
• TAYLOR’s BOOK ENTITLED, THE PRINCIPLES OF SCIENTIFIC MANAGEMENT, IN 1911.
• TAYLOR WAS AN INDUSTRIAL ENGINEER
• HE HAS GIVEN FOUR PRINCIPLES OF MANAGEMENT

12. • SHOP MANAGEMENT CONCEPT(1903)-BOOK
• A PIECE RATE SYSTEM (1895)-BOOK
• Critiques of Taylorism
• Taylor's Scientific Management Theory promotes the idea that there is "one
right way" to do something. As such, it is at odds with current approaches such
as MBO (Management By Objectives), Continuous
Improvement initiatives, BPR (Business Process Reengineering), and other
tools like them. These promote individual responsibility, and seek to push
decision making through all levels of the organization.

13. 3. FUNCTIONAL & ADMINISTRATIVE THEORY BY HENRY FEYOL (1910)
• Henri Fayol (29 July 1841 – 19 November 1925) was a French mining engineer,
mining executive, author and director of mines who developed general theory
of business administration that is often called Fayolism.
• Fayol's work was one of the first comprehensive statements of a general
theory of management.[ He proposed that there were five primary functions of
management(POCCC) and fourteen principles of management.
• Functions of management: five primary functions were identified:
– Planning
– Organizing
– Staffing
– Directing
– Controlling

15. Principles of management:
• Division of work - In practice, employees are specialized in different areas and they
have different skills. Different levels of expertise can be distinguished within the
knowledge areas (from generalist to specialist).
• Authority & Responsibility - According to Henri Fayol, the accompanying power or
authority gives the management the right to give orders to the subordinates.
• Discipline - This principle is about obedience. It is often a part of the core values of a
mission and vision in the form of good conduct and respectful interactions.
• Unity of command - Every employee should receive orders from only one superior or
behalf of the superior.
• Unity of direction - Each group of organisational activities that have the same objective
should be directed by one manager using one plan for achievement of one common
goal.
• Subordination of Individual Interest to General Interest - The interests of any one
employee or group of employees should not take precedence over the interests of the
organisation as a whole.

16. • Remuneration - All Workers must be paid a fair wage for their services.
• Centralization and Decentralization - This refers to the degree to which subordinates are
involved in decision making.
• Scalar chain - The line of authority from top management to the lowest ranks represents
the scalar chain. Communications should follow this chain. However if someone needs to
communicate some other person in emergency he/she might use "Gang Plank".
• Order - this principle is concerned with systematic arrangement of men, machine, material.
• Equity - All the employees in the organization must be treated equally with respect to the
justice and kindliness.
• Stability of tenure of personnel - High employee turnover is inefficient. Management
should provide orderly personnel planning and ensure that replacements are available to
fill vacancies.
• Initiative - Employees who are allowed to originate and carry out plans will exert high
levels of effort.
• Esprit de corps - Promoting team spirit will build harmony and unity within the
organization

17. • DIVISION OF INDUSTRIAL ACTIVITIES (SIX)
1. TECHNICAL
2. COMMERCIAL
3. FINANCIAL
4. ACCOUNTING
5. MANAGERIAL
6. SECURITY
• MANAGERIAL SKILLS AND QUALITIES (SIX)
1. PHYSICAL
2. MENTAL
3. EDUCATIONAL
4. MORAL
5. TECHNICAL
6. EXPERIENCE

18. • KNOWN AS:
1. FATHER OF MODERN MANAGEMENT
2.FATHER OF PRINCIPLES OF MANAGEMENT
3.FRANCIS BACON OF MANAGEMENT
4.FATHER OF ADMINISTRATIVE MANAGEMENT

19. 2.The Neo-Classical Approach

20. • Human relations movement
– According to Human Relations Approach, management is the
Study of behaviour of people at work.
– This approach had its origin in a series of experiments
conducted by Professor Elton Mayo and his associates at the
Harvard School of Business at the Western Electric
Company’s Hawthorne Works, near Chicago.
– These studies brought out for the first time the important
relationships between social factors and productivity.
– Elton mayo is known as father of human relation
management

21. • Contribution of Elton Mayo to Management Thought:
– George Elton Mayo (1880-1949) was a professor at the
Harvard Business School. He published the books :-
– ‘Human Problems of an Industrial Civilization’ (1933),
– ‘Social problems of an Industrial Civilization’ (1945),
– ‘Training for Human Relations’ (1949) etc.
– He conducted the famous ‘Hawthorne Experiments’ at the
Hawthorne plant of the Western Electric Company in the USA
during 1927-32 with his associates.

22. • Hawthorne Experiments: 1927-1932
1. Illumination Experiments:
From these experiments, it was revealed that productivity could
be increased not only by improving the working environment,
but also through informal social relations among the members of
the working group.
2. Relay Assembly Test Room Experiment:
Productivity and morale were maintained even if the im-
provements in the working conditions were withdrawn. The
researchers concluded that socio- psychological factors such as
the feelings of being important, recognition, participation, in-
formal work group, non-directive supervision etc. held the key
for higher productivity.

23. 3. Mass Interviewing Programme:
A large number of workers were interviewed to know their
perceptions and orientation on the working life. The results again
confirmed the importance of informal relation, social and
psychological needs and their impact on the behaviour of the
workers.
4. Bank Wiring Observation Room Experiment:
A group of 14 workers was observed with regard to their work
behaviour. The observation revealed the informal production
norms set by the workers and the existence of informal relations
in the group.

24. • BEHAVIOURAL SCIENCE MOVEMENT BY A. MASLOW, McGREGOR
– Maslow’s theory of human needs
• A need is a physiological or psychological deficiency a person
feels compelled to satisfy
• Need levels:
– Physiological
– Safety D- needs (deficiency)
– Social
– Esteem
– Self-actualization B-needs (Growth needs)

25. • BEHAVIOURAL SCIENCE MOVEMENT BY A. MASLOW, McGREGOR
– Maslow’s theory of human needs
• Deficit principle
– A satisfied need is not a motivator of behavior
• Progression principle
– A need becomes a motivator once the preceding lower-
level need is satisfied

26. Maslow’s hierarchy of human needs

27. • Douglas McGregor (1906-1964):
– Douglas Murray McGregor (1906 – 1 October 1964) was
a management professor at the MIT Sloan School of
Management. He also taught at the Indian Institute of
Management Calcutta.
– His 1960 book The Human Side of Enterprise had a profound
influence on education practices.
– In the book The Human Side of Enterprise, McGregor identified
an approach of creating an environment within which
employees are motivated via authoritative direction and
control or integration and self-control, which he called theory
X and theory Y

28. Theory X Assumptions:
• The average human being has an inherent dislike of work and will avoid
it if he can.
• Because of their dislike for work, most people must be controlled and
threatened before they will work hard enough.
• The average human prefers to be directed, dislikes responsibility, is
unambiguous, and desires security above everything.
• These assumptions lie behind most organizational principles today, and
give rise both to "tough" management with punishments and tight
controls, and "soft" management which aims at harmony at work.
• Theory X managers do not give their staff this opportunity so that the
employees behave in the expected fashion.

29. Theory Y Assumptions
• The expenditure of physical and mental effort in work is as natural as
play or rest..
• People will exercise self-direction if they are committed to the objectives
(they are NOT lazy).
• Commitment to objectives is a function of the rewards associated with
their achievement.
• People learn to accept and seek responsibility.
• Creativity, ingenuity, and imagination are widely distributed among the
population. People are capable of using these abilities to solve an
organizational problem.
• People have potential.

30. Comparison of Theory X and Theory Y

31. 3.THE MODERN APPROACH

32. System Approach of Management
• The word system is taken from a Greek word which means to bring
together or combine.
• Ludwig Von Bertalanffy is called as Father of Systems approach.
• According to Ludwig von Bertalanffy,
– “In order to understand an organized whole, we must know both the parts
as well as the relations between them.”
• Kenneth E. Boulding-he was co-founder of general systems
theory

33. • Components of Systems Theory of Management-six
1. Sub-System:
2. Synergy: Synergy defines relationships amongst all parts of the organisation .
3. Open and Closed Systems:
4. System Boundary(which separate it from environment)
5. Flow: movement of inputs (men, material, money, machine etc.) into the
system from the environment, their transformation into outputs (goods and
services) and supply of outputs to the environment.
6. Feedback: knowing whether or not output is accepted by the environment.

34. • Contingency theory of management
– Contingency theory is a class of behavioral theory that claims
that there is no best way to organize a corporation, to lead a
company, or to make decisions. Instead, the optimal course of
action for organizational effectiveness is contingent
(dependent) upon the internal and external situation. Several
contingency approaches were developed concurrently in the
late 1960s.
– There could not be "one best way" for leadership or
organization.

35. • Gareth Morgan in his book Images of Organization describes the
main ideas underlying contingency in a nutshell:
– Organizations are open systems that need careful management to
satisfy and balance internal needs and to adapt to environmental
circumstances
– There is no one best way of organizing. The appropriate form
depends on the kind of task or environment one is dealing with.
– Management must be concerned, above all else, with achieving
alignments and good fits
– Different types or species of organizations are needed in different
types of environments

36. • Fred Fiedler's- contingency model focused on a contingency model
of leadership effectiveness. This model contains the relationship
between leadership style and the favorableness of the situation.
Situational favorableness was described by Fiedler in terms of
three empirically derived dimensions:-
1. The leader-member relationship, which in the most important
variable in determining the situation's favorableness
2. The degree of task structure, which is the second most
important input into the favorableness of the situation
3. The leader's position power obtained through formal authority,
which is the third most important dimension of the situation

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