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UNIT – 1 – INTRODUCTION TO MANAGEMENT CHAPTER – 1- MEANING AND NATURE OF MANAGEMENT

Define Management
Management is the process of planning, organizing, leading, and controlling the work of organization members and of using all available organizational resources to reach stated organizational goals. It emphasize that all managers, regardless of their particular aptitudes or skills, engage in certain interrelated activities in order to achieve their desired goals. Acc. to Harold Koontz and Weirich – “ Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals. “ Acc. to F.W. Taylor – “ Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way. ” Acc. to Henry Fayol – “ To manage is to forecast and to plan, to organize to command, to coordinate and to control. “ Acc. to Ralph C. Davis – “ Management is the function of executive leadership anywhere.” Acc. to E.F.L Breach – “ Management is concerned with seeing that the job gets done; its tasks all centre on planning and guiding the operations that are going on in the enterprise. “ Acc to George R. Terry – “ Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources. “ Acc to American Management Association – “ Management is guiding human and physical resources into dynamic organizational units which attain their objectives to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering service.” Acc. to Peter Drucker – “ Management is a multipurpose organ that manage a business and manages Managers and manages Workers and work. “

As unifying force. government. army. All types of organizations. (7) Management is Pervasive or Universal : Management is essential element of every organized activity irrespective of the size or type of activity. management is purposeful. (1) Management is goal-oriented: Management is not an end in itself. Management reconciles the individual goals with organizational goals. the managers who perform the functions of management are very much tangible and visible. Management has no justification to exist without goals. physical and financial resources. (6) Management Accomplishes Results through the cooperation of others : The managers cannot do everything themselves. management is a pervasive activity. The success of management is measured by the extent to which the established goals one achieved. club. The . management creates a whole that is more than the sum of individual parts. It cannot be seen but its presence can be felt everywhere in the form of results. Thus. management is necessary. Wherever two or more persons are engaged in working for a common goal. (5) Management is a part of Group effort : Management is an integral part of any group activity. The basic goal of management is to ensure efficiency and economy in the utilization of human. Management goals are called group goals or organizational goals.Nature/ Scope/ Characteristics/ Features of Management It is an essential part of any goal oriented activity. It involves the use ofgroup efforts in the pursuit of well defined goals or objectives. It cannot exist independent of the group or organization it manages. It is essential to undertake any organized activity. It is a means to achieve certain goals. (3) Management is Intangible: Management is an unseen or invisible force. leading and motivational of people.g. organization of resources. They must motivate the subordinates for the accomplishment of their subordinates. establishment of communication system. (4) Management as a Coordinative Force : The essence of management lies in the coordination of individual efforts in to a team. Every organization requires planning of activities. and control of operations for the realization of its goals or objectives. However. cricket team or business. Thus. require management. The cycle of management continues to operate so long as there is organized action for the achievement of group goals. They must have the necessary ability and skills to get work accomplished through the efforts of others. family. (2) Management is a continuous Process: Management is a dynamic and an on-going process.. e. university. It integrates human and other resources.

psychology. Infact. Efficiency These are interrelated terms. management is multidisciplinary in nature. It contains principles drawn from social sciences like anthropology. An organization is said to be effective if it is able to accomplish its objectives." . etc. It concerns the minimization of cost using less resources and getting maximum output." Effectiveness means "doing the right things. Much of management literature is the result of the association of these disciplines. effectiveness is determined without reference to costs. (10) Management Balances effectiveness and Efficiency : Sound management requires that all organizational activities are performed effectively and efficiently. These are two sides of same coin. quantitatively determined by the ratio of output to input.fundamental principles of management are applicable in all areas of organized effort. (b) Efficiency – It describes the extent to which time or effort is well used for the intended task or purpose. Effectiveness vs.means the degree to which objectives are achieved and the extent to which targeted problems are solved. Effectiveness is a relatively vague. non-quantitative concept. (9) Management is a Dynamic Discipline : Management is a field of study which is taught in universities and management institutes. It is the process of getting things done with the aim of achieving organizational objectives effectively and efficiently. (a) Effectiveness . Efficiency is a measurable concept. These two terms needs to be balanced but at times efficiency has to be compromised by the management. sociology. Management is also a discipline involving specialized training and an ethical code arising out of its social obligations. Managers at all levels perform the same basic functions. mainly concerned with achieving objectives. Efficiency means "doing the things rightly. In contrast to efficiency. (8) Management is a Science as well as an Art : It contains a systematic body of theoretical knowledge and it also involves the practical application of such knowledge.

and excludes everything it does not control. They ensure that the organization has adequate resources and at the same time does not have idle resources. money and manpower. Managers make sure that workers know their jobs well and use the most efficient methods of work. sales or customer-satisfaction surveys. With effectiveness and efficiency in place. The development of a country largely depends on the quality of the management of its resources. You should start measuring this productivity on a daily. weekly and monthly basis. Each person may be working efficiently. Capital investment and technical know-how cannot lead to economic growth unless wealth producing resources are managed efficiently. That‟s why it is called as the first test of management‟s competence. each specializing in doing a part of the total task. You can use metrics such as number of units produced. Management creates team . (2) Effective utilization of resources: Managers forecast the need for materials.work and coordination in the group. It includes all the efforts the enterprise contributes. you will see a rise in productivity. Management is the most crucial factor in economic and social development. (3) Development of society and nation: Efficient management is equally important at the national level. They provide training and guidance to employees so that they can make the best use of the available resources. Productivity is doing the right things in the right way. Once you ensure employees are being effective and efficient. but the group as a whole cannot realize its objectives unless there is mutual cooperation and coordination among the members of the group. Managers provide inspiring leadership to keep the members of the group working hard. By producing wealth management increases the national income and the living standards of .Productivity : The first test of Management’s Competence A Productivity measurement is the best yardstick for comparing managements of different units within an enterprise and for comparing managements of different enterprises. He reconciles the objectives of the group with those of its members so that each one of them is motivated to make his best contribution towards the accomplishment of group goals. you will be able to establish some baseline measures of the productivity of your company. They create and maintain an environment conducive to highest productivity. machinery. Therefore : Productivity = Efficiency + Effectiveness Importance of Management (1) Accomplishment of Goals : A human group consists of several persons.

Any subject which is scientifically developed and consists of universally accepted principles is a science. For this manager needs to indulge motivation and leadership practices to develop team spirit. It fills various positions with right qualifications at right time. It ensures that the enterprise is able to meet the demands of changing environment.people. That is why management is regarded as a key to the economic growth of a country. hypotheses. (4) Sound organization – Management provides sound environment in the organization for the accomplishment of your desired goals. It contains concepts. cooperation and commitment to group success. It also initiates a spirit of cooperation among the workers and provide them with good environment. (6) Harmony in work – Managers bring uniformity and harmony in the action of employees as employees come from different backgrounds. theories and principles to explain cause and effect relationship between two or more factors.Science is a systematized body of knowledge pertaining to a particular field of enquiry. It explain authority-responsibility relationships in the organization. Disciplines of Management Management is Science or Art (A) Management as a science . These help to explain events and serve as guidelines for managers in different types of organisations. (5) Providing vision and foresight – It predicts the happenings of future which will influence the workings of the organization. Scientific observations and Experiments – Scientific principles are derived through scientific investigation and reasoning. they have different attitudes and styles of performing work. Scientific principles do not reflect the opinion of an individual or of a religious • . Management Discipline should have the following characteristics in order to be called as science : • Systematic body of knowledge – Management has a systematic body of knowledge consisting of general principles and techniques. It means that there is an objective or unbiased assessment of the problem situation and the action chosen to solve it can be explained logically. (7) Helping the Employees in achieving Personal Objectives – Manager needs to motivate their team in such regard that they should contribute equally towards their personal and organizational objectives.

They are flexible and need to be modified in different situations. This principle can be applied in all types of organisation-business or non business. Stated differently. For instance. Management as an Art or Practice Art signifies the application of knowledge and personal skills to bring about desired results. For example. These principles may be applied in all situations and at all times. can be logically explained. Management contains sound fundamental principles which can be universally applied. Application of its principles doesn't depend upon situations and factors. with regard to following the instructions. so it is a social process that is why it is called as social science. Management principles are also based on scientific enquiry and investigation. They are critically tested. science is to seek knowledge and art is to apply knowledge. If science is learnt. For example. It is based on scientific knowledge and principles. the Law of Gravitation states that if you throw an object in the air it will fall on the ground due to the gravitational force of the earth. It is difficult to establish cause and effect relationship in management. the principle that the earth revolves around the sun has been scientifically proved. confusion and indiscipline are likely to arise. It has the following features : . an art is practiced. Therefore they produce predictable and ensured results. These are objective and represent best thinking on the subject. It deals with people but it is difficult to predict their behavior accurately. • Verifiable Principles – Scientific principles are verifiable as they undergo long experimentation procedures. Exceptions. the principle of unity of command states that at a time one employee should be answerable to only one boss. It is as applicable to a football as it is to an apple falling from tree. if any. However. For example. of managers. These have been developed through experiments and practical experience of a large no. Such experimental results are verified by repeatition proceedings of experiments. principles of management are not exactly like those of physics or chemistry. still it is not considered as exact science like biology.guru. Though management has all these characteristics. • Universal application – Scientific principles represent basic facts about a particular field enquiry. because :-• • • • many of the principles of management are not supported by research. it has been observed that wherever one employee has two or more bosses simultaneously. physics etc. This law can be applied in all countries and at all points of time. Rather these can be scientifically proved at any time.

The art of management can be learnt and mastered through continuous practice. Management is considered an art because of the following reasons : • • • • • Management practice involves the use of knowledge of management concepts. art and science are complementary to each other. However. Moulding the attitudes and behaviour of people at work. This process is directed towards the accomplishment of concrete goals. . all Thus. a person cannot be a good surgeon unless he has scientific knowledge of human anatomy and the practical skill of applying that knowledge in conducting an operation. Creativity – Art is basically creative and an artist aims at producing something that had not existed before. Personal judgments are used by managers to deal with various problems and management decision making. A manager effectively combines and coordinates the factors of production to create goods and services. Personalized application of knowledge and skills – Art is basically the application of knowledge and skills with the use of know-how. Art can be developed through continuous practice. towards the achievement of the desired goals is an art of the highest order. They are not mutually exclusive. Therefore.• • • • Body of knowledge – Discipline of art requires a systematized body of knowledge that requires learning of theory and know – how. art ( practice ) are both essential for the success of the management. management is creative. Science ( theory ). principles and practices. “ mangement is both a science as well an art. For example. Knowledge of principles and theory is essential. An artist not only learn the theory but also its application in practice. Practice – Every art signifies practical knowledge. Like any other art. It is situational there by there is no best management role and contribution of managers are considered for various situations. but practical application is required to make this knowledge fruitful. Art without science has no guide and science without art is knowledge wasted. One cannot become an effective manager simply by learning management principles by heart. It is known as an art because it involves creating results through practical application of knowledge and skills. Similarly a successful manger must know the principles of management and also aquire the skill of applying those principles for solving managerial problems in different situations. every piece of art requires imagination and intelligence to create. “ It is a science because it has an organized body of knowledge consisting of certain universal facts. Science teaches one to know and art to do.

integrity and professional ethics. this association does not have the statutory power to regulate the activities of managers. For example. No university accepted criteria or standard exists for their evaluation.Management as a profession Profession may be defined as an occupation backed by specialized body of knowledge and training and to which entry is regulated by a representative body. For example a chartered accountant is not expected to commercially advertise his firm. The essential requirements of a profession are as follows : • Specialized field of knowledge . Membership of this association is not compulsory in order to become a manager. Representative or professional association . the Institute of the Chartered Accountants of India establishes and administers standards of competence for the auditors. The All India Management Association has framed code of conduct for managers.Members of one profession have to abide by a code of conduct which contains rules and regulations providing the norms of honesty. but he is • • • • . For example. Service Motive . A manager of a factory is responsible not only to its owners. a person requires specialised knowledge of its principles and techniques. Managers have formed associations for the regular exchange of knowledge and experience.In every profession there is a statutory association or institution which regulates that profession. Members the organisation. Therefore. In India. observing business ethics is always helpful in becoming a more effective manager. But this code does not have legal sanctions. However. The code requires the managers to fulfil their social and moral obligations. a doctor earns his living from his medical practice. The code of conduct is by the representative association to ensure self-discipline among its members. Similar is the case with managers.A profession is a source of livelihood but professionals are primarily motivated by the desire to serve the community. In order to practice a profession. He has a concern for the suffering of others and a desire to help the community.Every profession has a well defined body of knowledge relevant to the area of specialisation. Restricted entry based on education and training – There exists institutions and universities to impart education and training for a profession. Any member violating the code can be punished and his membership can be cancelled. No one can enter a profession without going through the prescribed course of learning. However. a profession enjoys high community sanction or respect. Ethical code of conduct for self-regulation . In management also associations have been established both in India and abroad. there is the All India Management Association. But he does not treat his patients only for the sake of money.

Management can be considered as profession because : • • It is supported by a well – defined body of knowledge that can be taught and learnt. Management cannot be fully regarded as profession because • • • Entry to management profession is not restricted. No specific qualifications is required. techniques and skills. management does not restrict the entry into managerial jobs to people . It requires competent application of management principles.also expected to produce quality goods at a reasonable cost and to contribute to the wellbeing of the community. But like other professions. The above discussion reveals that management fulfils several essentials of profession. Management doesn‟t have an all-India representative association like medical council of India There is no ethical code of conduct for the managers.

It has operational authority to execute administrative decisions. It is concerned with implementation of policies laid down by administration. It is relevant at lower level of management. Administration It is concerned with the formulation of objectives. It has authority to take strategic and policy decisions.Basis 1) Meaning Management Means getting things done with and through others by leading and motivating them. It refers to higher level of management. It is concerned with determination of major objectives and policies. It refers to execution of decisions. plans and policies of the organization. It is actively concerned with direction of human efforts at the operative level. It is concerned with determination of major objectives and policies. 2) Nature 3) Stage of performance 4) Leading of Human efforts 5) Type of Authority 6) Level in the organization . It relates to decision making.

Basis 6) Decision – making 7) Usage Management It decides who will implement the administrative decisions. Chancellor. Secretary. Director. Managing directors. 8) Designations in organizations 10) Influencing Factors General Managers. Minister. Branch Manager. social forces. etc. Administrative decisions are influenced by economic environment. policies values and beliefs of managers. military organizations. This term is associated with nonbusiness organizations such as government departments. Plant Superintendent. socio-cultural organizations. etc. etc. Registrar. . Administration It determines what is to be done and when it si to be done. government policies. public enterprises. Vice. objectives. Commissioner. This term is widely used in business organizations in the private sector. Managerial decisions are influenced mainly by organizational mission. etc. Controller.

The organising process in general involves the following steps : 1. 4. Staffing Staffing is the function of hiring and retaining a suitable work-force for the enterprise both at managerial as well as non-managerial levels. compensating. Identification of activities keeping in view the objectives to be achieved. 3. 4. 3. training. directing the activities of others. and maintaining this work-force with proper incentives and motivations. selecting the most effective communication channel. 2. and evaluating employees. Planning Planning is the continuous process of making present entrepreneurial decisions systematically andt possible knowledge of their futurity. Organising The process of organising consists of dividing activities. developing. 2.Functions or Elements of Management Process 1. Coordination of these activities throughout the organization. It includes motivating employees. organising systematically the efforts needed to carryout these decisions and measuring the results of these decisions against the expectations through organized and systematic feedback. more complex will be the job of organising people and their work as face to face communication becomes difficult. 5. assigning duties and delegating authority for effective operation and achievement of goals. Dividing activities into convenient groups. Allocating activities of different departments and assigning duties. Delegation of authority and fixing of responsibility. with command. Directing Directing process in business was identified by henry Fayol. It involves the process of recruiting. and resolving conflicts. . Bigger the organisation.

Coordinating Management thinkers of today. would pull their respective weight in the right direction and give their loyalty to the enterprise wholeheartedly. however. feel that coordination is all-pervasive and permeates every function of the management process.5. . all help managers to achieve proper coordination. The control process also requires coordination. supervision communication. who. organising. Other functions are : 1. staffing. etc. Thus planning. to correct any deviations. guidance. It is also secured through proper direction of the human efforts by the exercise of effective leardership. if satisfactorily and effectively motivated. direction and controlling. 2. motivation. Controlling The function of control consists of those activities that are undertaken to ensure that the events do deviate from the pre-arranged plans. This could only be possible with the help of motivated personnel. Motivation It is an act of providing personnels an inspiration to get to their jobs with zeal and entusiasm and perform efficiently the work assigned to them. Management has a responsibility to utilise the capacity of its task force to the maximum. They would then carry out the activities allocated to them with purposeful sincerity. The activities consist of establishing standards for work-performance and comparing it to these set standards and taking corrective actions as and when needed.

3. Organizations can be designed in ways to control irrational emotions and thus unpredictable.Taylor analysed and timed steel workers‟ movements on a series of jobs. He established how much workers should be able to do with the equipment and materials at hand. rise of consumerism etc. Because organizations control economy incentives. an individual is primarily a passive resource to be manipulated. Its view is that : 1. dysfunctional behaviours of employees. Types of Classical Theories (I) Scientific Management Frederick Winslow Taylor (1856-1915) is considered to be the father of scientific management. growth of trade unionism. These are : (a) The Classical or Traditional approach (b) The behavioural or Neo-classical approach (c) The Modern approach (A) The Classical approach It is based upon the ideas similarly generated in the late 1800‟s and early 1900‟s and is primarily based upon the economics rationality of all employees. This evolved around the classical assumption of Adam Smith. 2. The inventions during the industrial revolution. have led to the development of different schools of management thought. These studies called time and motion studies – marked the true beginning of scientific management. controlled. The divergent directions of management thoughts have caused. expansion of industrial trade.Chapter – 2 Evolution of Management The history of modern management can be traced to the industrial revolution in England and other European countries during the 18th and 19th centuries. People are motivated by economic gains. Harold Koontz to call the resulting array “ management theory jungle “ Schools of Management The various schools of Management can be put into three broad categorised. 4. He exerted a great influence on the development of management thought his experiments and writings. Irrational emotions must be kept from interfering with economic rationality. that people are motivated by economic incentives and that they will rationally consider opportunities that provide for them the greatest economic gain. rise of factory system. and motivated by the organization. He further stressed that it was entirely the management‟s prepogative to plan the ways and .

affecting their behavior cannot be ruled out completely. not rule of thumb – For solving problems and making decisions. the efficiency level of workers should be increased by providing scientific training and developing their potential abilities to the maximum. (5) Development of each employee to his greatest efficiency and prosperity – For the prosperity of individual workers as well as the organization. clash or conflict should not be allowed to crop in and. (3) Cooperation. Intuitive decisions should be substituted by decisions based on facts. if it arises. He also recognised the need of economic incentives and rewards to increase productivity. economies of scale set in and the cost per unit of output will decrease. As production increases. Credit should be given to all employees. required data should be collected and analysed for finding a solution. Criticisms of the approach of Scientific Management This approach is mainly criticized on the following counts : (a) Taylor and the early scientific management proponents have been criticised for their unrealistic assumption believing that workers being „economic man‟ are having only economic needs and therefore are interested only in more money. If the worker met the standard. should be reduced to a minimum. etc.means of doing a task in a systematic way and the role of workers was limited only to do jobs as determined by management. There should be complete harmony or coordination in their functioning and any kind of disagreement. he earned his base rate but if he surpassed the standard. importance of cooperative group efforts should be recognised because if the objectives of the organization are to be accomplished. his pay would go up.He introduced the system differential wage payment which tied a worker‟s earnings to scientifically set performance standards for his job. not restricted output – Production should be carried out up to the maximum capacity available in a unit. the manager should adopt scientific attitude and use scientific thinking and methods. (2) Harmony not discord – All the departments and workers are a part of an organization. not individualism – Instead of fostering individualsim. . The „ rule of thumb „ or „ hit or miss „ approach should be replaced and problems studied in all respects. (4) Maximum. Basic Principles of Scientific Management (1) Science. it would be possible not only on account of dynamic and effective leadership of the individual manager but the whole hearted cooperation and commitment of all employees. The policy of restricted output should be treated as an outdated one. Infact economic needs of workers may be more pressing and influencing their working behavior but the possibility of their other needs such as social and psychological .

Unity of Direction – All activities related towards common goals should be included in single plan to be implemented by particular manager. Henry Fayol (1841-1925) is considered the father of administrative management theory with focus on the development of broad administrative principles applicable to general and higher managerial levels. 5. Discipline – It implies compliance with organizational directives and rules. 2. 4. (c) The approach of scientific management is also criticized on the ground that it advocates close supervision and control as to get maximum contribution and higher level of productivity on the part of workers. Unity of command – According to this principle one subordinate should get orders and instructions regarding his work only from one superior. Fayol provided a broad analytical framework of the process of administration. 6. Remuneration – Employees should be paid fairly and reasonably in accordance with their contribution. (II) Administrative Management / Classical Organization Theory While Taylor is considered the Father of scientific management.(b) Other critics fear that scientific management techniques have dehumanized the workers by considering them only as factor of production which are lifeless and unconscious. Subordination of individual’s interest to interest of organization – Acc. unlike that of Taylor extended beyond the shop level and the physical production processes and was of a macro nature. beliefs. 3. fixing responsibility and not allowing them to side track responsibility. It helps in maintaining discipline among employees. But this practice has limited use and to get whole hearted cooperation from workers self-regulating control and supportive supervision have proved more effective. . to this in every work setting each employee should sacrifice and subordinate his personal interest and goal for accomplishing common goals of organization. orders and instructions of superior and to co-operation with fellow workers. Division of Work – To divide work among various departments and employees according to required abilities and skills as to get benefit of specialization. 7. Authority and Responsibility – Authority should commensurate with responsibility. controlling their activities. More authority may be result in misutilization or under utilization of it. Fayol’s principles of Management 1. His perspective. The workers are basically human beings and their behavior is influenced by their needs. covering the general administrative and managerial functions and processes at the organizational level. values and perception therefore they cannot be treated at par with other factors of production.

13. This theory is based on the two main points : (1) Organisational situation should be viewed in social as well as in economic and technical terms. Chicago in the late twenties. It is known as scalar chain because all employees are attached to it in the relationship of superior and subordinate. Centralisation – The relationship between centralisation and decentralisation of authority is a matter of proportion and optimum balance which should be maintained according to the needs of organization. . This movement has started by „ Mayo” and his associates at Hawthrone Plant of the eastrn Electric Company. Order – In order to facilitate smooth flow of work and efficient use of resource material. etc. therefore they should not be allowed to move frequently from one position to another. 11. 9. Initiative – Acc. Due care should be taken specially for developing policies so as to regulate decision making behaviour of managers on the one hand and on the other to provide them enough liberty for using their personal skills and judgement. employees should be provided an opportunity as to develop and use initiative for solving work – related problems. An impressive account of thinking of human relations has been given by Douglas M. 12. people need time to learn their jobs.8. 10. Espirit – de – crops – It implies to build team spirit among the employees so that they work in harmonious manner with proper mutual understanding as to make their respective contribution for achieving goals. (B) The Behavioural or Neo Classical Approach This approach was developed as a reaction to the classical approach which attracted so many behaviourist to make further researches into the human behaviour at work. 14. machine tools equipment. gained momentum and continued to dominate till the sixties. Scalar chain – As a result of delegation of authority in organization line of authority from top to the lowest level is established. as well as employees (human factor) should be in their prescribed proper place and order. Stability of tenure of personnel – Since. to this principle. Equity – The principle of equity suggests that similar treatment based on the principles of equity fairness and impartiality should be assuredc to all employees working in organization. Mc Gregor in his book entitled „ The Human Side of Enterprise’. and (2) The social process of group behaviour can be understood in terms of clinical method analogous to the doctor‟s diagnosis of human organism.

An individual employees is motivated not merely by economic incentives but also by non-economic. The informal group and not the individual is the dominant unit of analysis in organizations. Employee satisfaction and happiness brought about by a warm and friendly atmosphere and by meeting their social and psychological needs will lead to higher productivity and performance. Employee – centered. Management is not the only variable. (1) (2) (3) (4) (5) (6) . He behaves irrationally as far as rewards from the job are concerned.Its main prepositions are : (1) The organization in general is a social system composed of numerous interacting parts. the human relations movement improved on the classical approach which treated productivity merely as an engineering program. (6) Money is one of the motivators but not the sole motivator of the human behaviour. Social skills should be used to inject a feeling among employees that they are a part of the organization. (5) People are interdependent and their behaviour can be predicted in terms of social factors. Management requires both social skills as well as technical skills. (8) Both-way communication is necessary because it carries necessary information downward for the proper functioning of the organization and transmits the feelings and sentiments of people who work in the organization upwards. psychological and social interets. (7) Man‟s approach is not always rational. needs and aspirations. (3) The informal organization also exists within the framework of Formal organisational and it affects and is affected by the formal organization. (4) There is always a conflict between organization and individual goals that always increases the importance of integration between these two. (2) The social environment on the job affects the workers and is also affected by them. Also employees are capable of self-direction and control. The latter defines individual roles and establishes norms which may be at variance with those of the formal organization. Phases of Neo – Classical Approach (I) Human Relations School – By stressing social needs. This movement revealed the following fact: A business organization is not merely a techno-economic system but is also a social system. Man is diversely motivated and socio-psychological factors are more important. democratic and participative style of supervisor leardership is more effective than task-centred leadership. humanistic.

The term behavioural science approach may be defined as systematic as well as scientific analysis of human behaviour with a view to determine causes of working behaviour of an individual. they seek affiliation with groups. The basic mission of management is to secure the willing and cooperative effort of its employees by providing them need fulfilment and satisfaction. (II) Behavioural Science Approach – In view of certain inadequacies and drawbacks associated with human relation approach. . concerted efforts were made by many other social and behavioural scientists for undertaking and analysing human behaviour methodically.(7) (8) People need to be liked and respected. This can be done by enthusing people to participate and communicate freely in the concerned areas of decision-making.