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Lecture notes: Introduction to Management

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CHAPTER 2

EVOLUTION OF MANAGEMENT THOUGHT

Application of management knowledge is as old as human civilization but development of
management thought and theory is relatively of recent origin. The construction and completion
of gigantic projects like Great Wall of China and Pyramids of Egypt, shows the use of
management abilities by the people of ancient world. At that time probably, there was a jungle of
management knowledge and people used it in their own way. Moses of Israel is advised by his
father-in-law to follow the principle of span of control. Socrates definition of management as a
skill separate from technical knowledge and experience is remarkably close to current
understanding of management.
The concept of management has been developed and practiced in early days in the Roman
Catholic Church, Government and military organization. The organizational hierarchy of
authority, functional specialization, staff specialists was operated by Roman Catholic Church in
a successful way. Management principles such as unity of command scalar principles, effective
communication had been plasticized in the administrative set up of army. Public administrators of
German and Austrian who are known as cumeralists designed the principles of functional
specialization, selection and training of administrators, simplification of administrative
procedures for effective administration of the state.
2.1 EARLY CONTRIBUTORS OF MANAGEMENT THOUGHT
(PRE-SCIENTIFIC MANAGEMENT ERA)

The period prior to F.W. Taylor was considered as management which was practices in terms of
highly individualistic art based on personal qualities. They laid down foundations for scientific
utilization on management. The early contributors to the management (Prescientific management
era) are: (a) Robert Owen, (b) Charles Babbage, (C) Henry Robinson Towne, (d) James Watt Jr.
and Mathew Robinson Boulton, and (e) Charles Dupin .
(a) Robert Owen (1771-1858); He has conducted experiments in the field of personnel management in
textile mills in Scotland during 1800-1828. He advocated that workers should be treated as human
beings. He has taken efforts to improve working conditions in the factory reduce working hours,

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increase minimum wages, provide meal~ to employees, allocate education provision, housing and
other labor welfare facilities. His main contribution is that the effective and good personnel
management was essential part of manager's job since it pays dividends to the employer. Even though
he has specialized in the field of personnel but he has not designed any formal theory of management.
(b) Charles Babbage (1792-1871): He was a professor of Maths at Cambridge University from 1828 to
1839. He has suggested aspects like division of labor, work measurement, profit sharing and
engineering to improve the efficiency of management. He has invented mechanical calculator which
was called as "differential machine". He wrote a book titled "on the Economy of Machinery and
Manufactures" (1832). He has emphasized in improving efficiency through the application of maths
and science in the operation of factories.
2.2 Emergence (history) of management thought
To get the balance perspective of theory of management, it may be easier to place these concepts into
three categories.
(i) Classical or Traditional Approach
(a) Scientific Management Approach;
(b) Administrative Theory of Management
(c) Bureaucratic Organization Approach
(ii) Behavioral/Neo-classical Approach
(a) Human Relations Approach
(b) Behavioral Science Approach
(iii) Modern Management Approach
(a) Quantitative Approach
(b) System Approach
(c) Contingency Approach
These approaches can do little more than sketch some of the high spots in the emergence of
management thoughts.

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1. Classical approach

The Classical Approach is one of the oldest approaches in management and is also known by 'various
names, i.e., Empirical, Functional and Management Process Approach. The classical theory represents
the traditional thoughts about organizations. It is based on the prototype industrial and military
organization. The theory concentrates on organization structure and their management. The classical
writers include Taylor, Fayol, Weber, Gullick, Urwick, Mooney and Reiley and others. They placed
emphasis on work planning the technical requirements, principles of management, formal structure,
and the assumption of rational and logical behavior. This theory incorporates three view points. (i)
Taylor view point, (ii) Fayol Administrative theory, (iii) Weber's Bureaucracy. All these writers
concentrated on structure and that is why their approach sometimes is characterized as 'structural
framework of organisation. F. W. Taylor insisted on application of scientific methods to the problems
of management. Fayol suggested fourteen principles of management and their universal application.
Max Weber introduced rationality in organization.
It is characterized by division of labour, specialization, structure, personnel, competence, etc.
Classical approach signifies from the following features:
(i) Organisation through division of labour, specialization, structure, scalar, functional processes and
span of control.
(ii) Management is the study of managerial experiences. If the experiences are studied and certain
generalizations are deducted there from, this \ will help the practicing managers.
(iii) Classical Approach treat organisation as a closed systems.
(iv) Formal organisation structure coordinate the activities .of the organisation.
They ignored the element of human beings.
(v) Principles and functions of management have universal application.
(vi) Scientific management emphasized efficiency of lower levels of organizations.
(vii) Work force were supposed to be rational economic force, they could be motivated through
economic incentives.
(viii) Classical approach emphasized on 'centralization of authority'.
(ix) This school is based on the close study of past managerial experience and cases, so formal

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education and training is needed for developing managerial skills.

Limitations of Classical Theory
The classical approach suffers from several Limitations:
(i) The classical ignored the human relations aspects and undermines the role of human factor.
(ii) Classical viewed organisation as a closed system, i.e., having no interaction with external
environment.
(iii) Economic rewards assumed as the main motivator of work force. They have ignored non
monetary factors.
(iv) The classical principles are based on managerial experiences and their limited observations.
These are not empirical.
(v) Classical approach is based on over-simplified assumptions. Its principles are ambiguous and
contradictory.
(vi) This school emphasized on strict adherence to rules and regulations.
The scope for individual initiative is thus limited.
As discussed earlier, classical approach is based on three main pillows:
Scientific management, Administrative and Bureaucratic theory.
A. scientific management
Frederick Winslow Taylor is acknowledged as the "father of scientific management". Probably no
other person has had a greater impact on the early development of management. His experience as an
apprentice, a common labour, a foreman, a mechanic and then the chief Engineer gave opportunity to
know firsthand problems and attitudes of workers and to see the great possibilities for improving the
quality of management. Other contributors like Frank Gilbreth and Lilian Gilbreth Henry Gant,
Emerson also suggested the effective use of human beings in industrial organisation. They studied the
use of human beings as adjuncts to machines in performance of routine tasks. It was only Taylor who
gave concrete shape to the theory of scientific management.
He started his career as a labour in Midvale steel company in 1874 after discontinuing his study. After
that he was promoted as a mechanic, then he was appointed as the chief Engineer of the company
within six years. After obtaining the graduation in physics and mathematics and later on Master of
Engineering, he was employed by the Bethlehem steel company to increase output; which had been a
serious problem. He invented high speed steel cutting tools and spent most of his life as a consulting

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Engineer. However, his major concern was to increase efficiency in production, not only to lower
costs but also to make possible increased pay for workers through their higher productivity.
Scientific management employs scientific methods to the problems of management. He defined
scientific management as the art of "Knowing exactly what you want men to do and then seeing that
how they do it in the best and the cheapest way' He advocated scientific task setting based on time and
motion study, standardization of materials, tools and working conditions, scientific selection and
training of workers and so on. But he was confined to management' at the top level. Most of his
experiments were carried out in Midvale steel company and Bethlehem steel company. The process of
initiation of experiment carried on Midvale steel company was based on 'time and motion study', and
further at Bethlehem also. However, he conducted experiments mainly on three functions to find out
the best way of working:
He explained the basic philosophy of management in the following terms:
1. Replacing rule of thumb methods with science,
2. Scientific selection and training of workers,
3. Co-operation of labour and management to accomplish work,
4. Working for maximum output, rather than restricted output.
5. A more equal division of responsibility between managers and workers.
Taylor adopted differential piece rate plan to motivate the workers for higher efficiency. According
to this plan, high wages in the form of incentive was provided to those workers who perform more
than standard work published the following works on the basis of experiments:
1. A Piece Rate System

1895

2. Shop Management

1903

3. On the Art of Cutting

1906.

4. Principles of Management

1911.

Later, he integrated his ideas into "The Principles of Scientific management," which was published
in 1911.
Mental revolution
Scientific management involves a complete mental revolution on the part of the working men
engaged in any particular establishment or industry, a complete mental change on the part of these
men as to their duties towards the work, towards their fellowmen, and towards their employers. It

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involves equally: complete mental change on the part of those on the managements' front - the
foreman, the superiors, the superintendent, the owners, the Board of Directors- a complete mental
revolution on their part as to their duties towards their fellow workers in management, Taylor
advocated that without complete mental change on both the sides, scientific management does not
exist. The basic theme behind scientific management is to change the mental attitude of the workers
and the management towards each other. He advocated that:
(i) There is a change in the mental attitude of the workers, and
(ii) There is also a positive mental change in the attitude of management
He called the positive change in the attitude of workers and management as a revolution in
management. He called it 'Mental Revolution' which has three implications:
(i)

Effort to increase in production;

(ii) Creation of mutual trust and confidence; and

(iii) Developing scientific attitude towards problems.
He suggested management to find out the best methods of doing various jobs and introduced
standardized materials, tools and equipment to reduced wastages. Management must create congenial
environment for optimum efficiency. Congenial environment should be created through the
cooperation of workers and management; and it is only the congenial atmosphere that brings out the
.maximum productivity.
Principles of Scientific Management
To put the philosophy of scientific management into practice, Taylor and his associates suggested the
following techniques:
1. Scientific task planning: Scientific planning suggests series of separate operations and function
which are already determined by the management. How the task is performed? In what way? Who
performs it? What's the procedure of performing the task? It provides the answers to these
questions.
2. Functional foremanship: Taylor evolved functional foremanship to supervise and giving various
directions. In this system, eight persons direct the activities of workers, out of them four persons
are related with planning functions and the remaining four are concerned with operating level.
Functional foremanship involves the duties of: (i) Route clerk, (ii) Instruction and clerk, (iii) Time
and cost clerk, (iv) disciplinarian, (v) Speed boss, (vi) Inspector, (vii) Maintenance foreman, and

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(viii) Gang boss.

3. Job Analysis: Work management has been suggested by Taylor. There is one best way of doing a
job which requires least movements, consequently less time and cost. He advocated the analysis of
work job with reference to:
(a) Time study: Every work/job requires standard time to carry out under Specific conditions.
Time study involves the determination of time a Movement takes to complete.

(b) Motion Study: Motion study involves the study of movement of both the workers and machines
so as to identify wasteful movements and performing only necessary movements.
(c) Fatigue Study: The fatigue study shows the time and frequency of. Rest. On the basis of this,
management should provide appropriate rest at appropriate intervals to increase the efficiency of
workers.
4. Differential piece rate system: He advocated that there is direct link between, remuneration and
productivity for motivating employees. Taylor applied differential piece-rate system which is of
highly motivating technique. Different piece rate system adopted on workers :
(a) Low rate for those who fail-to achieve the standard output; and
(b) Higher rate for those achieving or exceeding the standard output.
The rate should be based on individual performance and on the position which he occupies. He
stressed for scientific determination of remuneration for workers.
5. Standardization: Standardization helps to simplify work, to ensure uniformity of operations and
to facilitate companions of efficiency. Standards are laid down regarding work, materials, tools
and techniques, time, working conditions, etc. These things should be fixed in advance on the
basis of observations.
6. Scientific selection and training: Workers should be selected on scientific basis, and their
education, experience; aptitude, strengths, etc.
7. Cooperation between management and workers: Scientific management succeeds through the
cooperation between management and workers. There should be a mental change to cooperate
with each other and to find out the way out of problem through scientific methods. Scientific
management depends upon the cooperation of these two. Taylor termed this cooperation as a
Mental Revolution.

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Critical Evolution of Scientific Management

Scientific Management was more concerned about the activities at operation level in the organisation,
rather than total functions. Similarly, they emphasized physiological variables affecting human
behavior at work-place, both in terms at work efficiency and methods of motivation. As such, the
scientific management is more relevant to mechanization and automation-technical aspect of
efficiency. Even the mental change of both management and workers could be sought to achieve
maximum production. So, scientific management has been criticized broadly on the following fronts:
1. Scientific management is a mechanic aspect as it ignores the human element in the organisation.
Workers are treated as mere extensions of machines devoid of any feeling and emotion. Taylor and
his associates treated workers as factors of production, as there is no value of their social and
psychological needs.
2. Scientific management focused mainly on efficiency at the operation! Shop level, as a
consequence organisation or industry has the importance on the areas of operational level. In this
sense, it also denotes as a field of industrial engineering.
3. Scientific management emphasized that planning function should be
4. Separated from actual performance and should be given to specialists. This is impracticable.
Planning cannot be fully separated from doing, because you are doing on planned basis; and if
there is any change takes place, you also try to absorb these changes in work. Planning and doing
are two sides of the same job.
5. Scientific management advocated functional foremanship to bring specialization in the
organisation. But this is not applicable in practice as the worker cannot carry out instructions from
eight foremen. This violates the principles of unity of command.

6. The approach of scientific management is criticized that it advocates close Supervision and control
as to get maximum contribution. But this practice has limited use and only applicable in a limited
way at shop floor.
7. This approach also advocates that standards are laid down regarding everything in the
organisation. However, standardization helps to simplify of every task/activity brings out
uniformity in operations -and helps to increase productivity. .

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8. Workers are forced to do the standard work, and they are motivated to pay more if they achieve the
Standard. So in the name of increasing efficiency, workers are forced to speed up their functions,
i.e., exploitation. And this also is not a type of motivation. They perform the least standard, they
have degraded and vice-versa. They force the workers to work hard, and this is clearly
exploitation.
Finally, Taylor made a long-lasting contribution in management. Taylor was the first pioneer in
introducing scientific management reasoning to the discipline of management. Many of the
contributions provide the basis of modern management. Really, scientific management provides a
basic input to enliven the theories, approaches which give reasoning to management. Simply, Taylor
laid the foundation of modern management as a science.
(B) Administrative management Approach
It was Henry Fayol who, for the first time, studied the functions and principles of management in a
systematic manner. He defined management in terms of certain functions and then laid down
fourteen principles of management which are universally applicable.
Henry Fayol was a French mining engineer turned chief administrator in a large French mining and
metallurgical company. It is in four parts of which the first part deals with classification of business
activities as technical activities (manufacturing or production), commercial activities (buying,
selling and exchange), financial activities (raising and optimum use of capital), accounting
activities, security services, and managerial activities. Henry Fayol was the first person who
emphasized managerial organisation and process. Fayol tried to develop a theory of management.
He discussed the principles of management and recommended teaching in management.
Organizational Activities
Henry Fayol found that industrial activities could be divided into six groups, or classified all
operations into six ways:
i) Technical (production),
ii) Commercial (buying, selling and exchanging),
iii) Financial
iv) Accounting (balance sheet, costing, records)

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Principles of Management
Fayol listed fourteen principles, based on his experience. However, the list is not exhaustive. They are
summarized in the perspective. He noted that these principles are flexible, and not absolute, and must
be usable regardless of changing and special conditions. These principles are as follows:
1. Division of labour: Fayol advocated division of work to take the advantage of specialization. This
is the specialization that managers consider necessary for efficiency in the use of labour. Fayol
applies this principle to all kinds of work.
2. Authority and responsibility: The authority and responsibility are related, with the later arising
from the former. He finds authority is being official and personal factor. Authority is generally
derived from manager's position and because of manager's personal competency to solve problems
in the organisation. Responsibility arises out of assigning the work.
3. Discipline: Discipline is the obedience, application, energy, behavior, and outward mark of respect
shown by employees. It also implies compliance with organizational directives and rules, orders
and instructions of superior and to co-operation with fellow workers. Fayol observed that
discipline is what leaders make it. He declared that discipline requires good superiors at all levels.
4. Unity of command: Unity of command means that employees should receive orders from one
superior only. The principle is useful in the clarification of authority-responsibility relationships.
It helps in maintaining disciplines, controlling their activities, fixing responsibility and not allows
overriding their track.
5. Unity of direction: Unity of Direction means one unit and one plan.' Each group of activities with
same objective must have one head and one plan. It relates to the organisation of the "body
corporate" rather then to individual. All activities of the organisation should be directed towards a
definite way.
6. Subordination a/individual to general interest: Organizations interest is above the individual
interest. And when there is conflict between the two, the common interest must prevail or
management must reconcile them.
7. Remuneration: Employees should be paid fairly and reasonably in accordance with their
contribution. Remuneration and method of payment should be fair and afford the maximum
possible satisfaction to employees and employer.
8. Centralization: Fayol refers to the extent to which authority is-centralized or decentralized. This

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pattern is determined by individual circumstances and should be based on optimum utilization of

all faculties of the personnel. Centralization refers to the reservation of authority at the top level.
But he referred that how much authority is dispersed or concentrated to achieve the objective
effectively.
9. Scalar chain: These should be clear line of authority from the top level to the lowest level, which,
while not to be departed from needlessly, should be short-circuited only in special circumstances
when its rigid following would be detrimental to the organisation. It is known as scalar chain
because all employees are attached to it in the relationship of superior and subordinate.
10. Order: This is essentially a principle of organisation in the arrangement of things and people.
Human as well as material resources should be in their prescribed proper place and order.
11. Equity: Employees should be assured to be treated on the basis of principle of equality, fairness
and impartiality. Loyalty and devotion should be elicited from personnel by a combination of
kindness and justice on the part of managers when dealing with subordinates.
12. Stability of Tenure: Stability should be provided to employees accustomed to new work and
succeeding in doing it will. Fayol finds that unnecessary tenure is both the cause and effect of bad
management.
13. Initiative: Employees should be provided an opportunity as to' develop and use initiative for
solving work-related problems. Initiative increases zeal and energy on the part of human beings.
Fayol exhorts managers to "sacrifice personal vanity" in order to allow to do it.
14. Esprit-de-corps: It emphasizes the need for team work and the importance of communication in
obtaining it. It implies to build team spirit among the employees so that they work with proper
mutual understanding as to make their respective contribution for achieving goals.
Fayol regarded the elements of management as its functions-planning, organizing, commanding,
coordinating and controlling. Fayol perceived that management should be viewed as a process
consisting of five elements:
(i) Planning; (ii) Organizing; (iii) Commanding; (iv) Coordinating (v) Controlling.
He observes that planning is the most important function and a failure to plan properly leads to
inefficiency in the organisation. Creation of organizational structure and commanding is necessary to
execute the plan. Coordination integrates the activities, controlling asks whether everything is
proceeding according to plan. Fayol had emphasized that these principle is applicable everywhere.

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Since all the organizations require managing, it follows that formulation of a theory of management is
necessary for effective teaching of the subject.
C) Bureaucratic Organisation
The next important form of classical approach is bureaucratic approach of organisation. This
contribution has been given by a German sociologist Max Weber.? This particular form of
organisation is well known in government and military organizations. Every type of organisation
possesses some features of bureaucracy in some form; that is ranging between, 'Line organizations to
'free form organisation'. It aims at high degree of precision, efficiency, objectivity and rationality in
the organisation to make it more efficient. Weber's theory recognizes rational-legal authority as the
most important in the organisation. However, Weber's contention is that there are three types of
legitimate authority in the organisation': (i) Rational legal authority; (ii) Traditional authority; (iii)
Charismatic authority.
Weber's contention is based on the display of rational legal authority. The model of bureaucracy
suggested by Weber is based on the following features:
(i) Division of work: It implies to divide and assign activities to various employees on the basis of
their abilities, skills and aptitudes to' get the benefit of specialization. Work should be
divided and assigned to each employee in the organisation to achieve high degree of
precision.
(ii) Hierarchy of authority: The bureaucratic structure is hierarchical in nature. All employees in
bureaucratic organisation are attached to hierarchy of authority which is rational and
legal in nature.
(iii) Rigidity in rules and regulations: Management standardizes operations and decisions.
Management prescribes procedure and set rules and regulations in bureaucratic
organisation to regulate and control working behaviour of employees. They must be in
compliance with procedures and framework of rules.
(iv) Impersonality: The decisions are entirely governed by rules and regulations and are totally
impersonal. The employees have very formal and functional in relationship among
them. They have the official relationship.

(v) Technical competence: Human resources in the organisation are employed or selected on the basis

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of technical competence, that is, what they know about the job. It is on the basis of job
requirements; they are selected and placed in the organisation.
Weber's ideal bureaucracy has been designed to bring rationality and predictability of behavior in the
organisation. It reduces subjectivity, because people have impersonal and formal relationship and they
have to comply with rules and regulations. Hierarchy of authority also helps to maintain discipline.
Division of labour leads to specialization' and rationality brings effectiveness in decision making. This
form of organisation helps to gain the following advantages:
i)
ii)

Rationally efficient form of organisation,

Reduces subjective judgment,

iii)

Specialization,

iv)

Effective decision-making,

v)

Consistency of actions,

vi)

Allocation of task according to competency, and

vii) Maintaining discipline in the organisation.

However, this approach is not free from negative connotations. These are as follows:
i) Bureaucratic model does not consider informal organisation and does not prescribe personal
relationship; so, this is insensitive to the needs of the individual.
ii) That which is based on rationality perhaps finds very limited applicability in practice and often it
becomes the epitome of inefficiency.
iii) Bureaucratic organisation encourages red-tapism; inordinate delay in decision-making, goal
displacement and finally lack of initiative and positive motivation may result in inefficiency in such
organizations.
2. Behavioral or Neo- classical approach
The Neo-classical approach was evolved over many years; because it was found that classical
approach did not achieve complete production efficiency and workplace harmony. Managers still
encountered difficulties and frustrations because people did not always follow predicted or rational
patterns of behavior. Thus, there was increased interest in helping managers deal more effectively
with the 'people side' of their organisation. The neo-classical theory reflects a modification over
classical theories. The neo-classical approach recognizes the primacy of psychological and social

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aspects of the workers as an individual and his relations within and among groups and the
organisation. It gained importance after the World War I, particularly in the wake of the "Hawthorne
experiments" at Western Electric Company by Elton Mayo during 1924 to 1932. So, Elton Mayo is
generally recognized as the father of the Human Relations Movement. The basic features of neoclassical approach are:
i) The business organisation is a social system.
ii) Human factor is the most important element in the social system.
iii)

It revealed the importance of social and psychological factors in determining worker

productivity and satisfaction.

iv) The behavior of an individual is dominated by the informed group of which he is a member.
v) The aim of the management is to develop social and leadership skills in addition to technical
skills. It must be done for the welfare of the workers.
Hawthorne experiment
A famous series of studies of human behavior in work situations was conducted at the Western
Electric Company from 1924 to 1933. In 1927, a group of researchers led by Elton Mayo and Fritz J.
Roethlisberger9 at the Harvard Business School were invited to join at Western Electric's Hawthorne
plant near Chicago. The studies began as an attempt to investigate the relationship between the level
of lighting in the workplace and the productivity of workers.
This initial experiment carried out over a period of three years sought to determine the effects of
different levels of illumination on worker's productivity. The results of the experiments were
ambiguous. When the test group's lighting conditions were improved, productivity tended to increase
just as expected, although the increase was erratic. But there was a tendency for productivity to
continue to increase when the lighting conditions were made worse, besides lighting was influencing
the worker's performance, as the work group was not able to maintain relationship between
illumination and productivity.
In the second set of experiments, a smaller group of six female telephone operators was put under
close observation and control. Frequent changes were made in working conditions such as hours of
work, lunch break, rest periods, etc. Again the results were ambiguous, as performance tended to
increase even when the improvements in working conditions were withdrawn. It was found that sociopsychological factor exercised a greater influence on productivity and working conditions.

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The third set of experiment attempted to understand how group norms affect group effort and output.
It was noted that the informal organisation of workers controlled the norms established by the groups
in respect of each member's output. The researcher concluded that informal work groups have a great
influence on productivity.
In the subsequent experiments, Mayo and his associates decided that financial incentives, when these
were offered, were not causing the productivity improvements. The researchers concluded that
employees would work hard if they believed management was concerned about their welfare, and
supervisors paid special attention to them. This phenomenon was subsequently labeled as the
Hawthorne Effect.
These findings concerning human behaviors at work focused on the worker as an individual and
considered the importance of caring for his feelings and understanding the dynamics of informal
organisation of workers. The view point of Hawthorne Effect thus gave birth to human relations
movement and provided the thrust toward democratization of organizational power structures and
participative management. It ushered in an era of organizational humanism.
(a) Human Relation Movement
Hawthorne experiment led to the development of human. Relations approach. It revealed the
importance of social and psychological factors in determining workers, productivity and satisfaction.
This movement is marked by informal grouping, informal relationship and leadership Pattern of
communication and philosophy of industrial humanism. The values of human relationists are
exemplified in the work of Douglas McGregor and Abraham Meslow.10 Human relation approach is a
social psychological approach and suggests business enterprise is a social system in which group
norms play a significant role. Financial incentive was less of a determining factor on a workers output
than were group pressure and acceptance and the concomitant security. It ushered an era of
organizational humanism: Managers would no longer consider the issue of organisation design
without including effects on work groups,
employees' attitudes, and manager-employee relationships. Elton Mayo, Mary Parker Follett and
Douglas McGregor, Roethlisberger, Dickson, Dewey and Lewin, etc were the main contributors that
led to the development of Human Relations Movement. The human relations movement marked by the
following factors:
1. This movement viewed organisation as a social system composed of numerous interacting parts, in

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which groups norms exercise a significant influence on the behavior and performance of
individuals.
2. The movement emphasized that apart from economic needs, the employees have other social and
psychological needs such as recognition, affiliation, appreciation, self-respect, etc.
3. The group determines the norms of behaviour for the group member and thus exercises a great
influence on the attitudes and performance of workers. Group Dynamics at the workplace become a
major force.
4. The human relations approach was focused on teaching people-management skills, as opposed to
technical skills.
5. This approach strongly believed that there should be no conflicts or clashes in the organisation;
and if it arises, it must be removed through improvement of human relations in the
organisation.
6. They consider that informal organisation does also exist within the framework of formal
organisation and it affects and is affected by the formal Organisation.
7. According to his approach, managers should understand human relations.
Managers began thinking in terms of group processes and group rewards to supplement their former
concentration on the individual worker. The study of human behavior and human interactions has
assumed much Significance as a result of this approach. .
Criticism of Human Relations Approach
No doubt, this approach has provided many new ideas in managing the organisation, but this is not
free from certain limitations:
1. Human relations approach cannot be treated as complete package to deal with human being
effectively, because no attempt had been made for studying and analyzing human behavior
systematically and scientifically.
2. The human relations approaches undermine the role of economic incentives in motivation and
give excessive stress on social and psychological factors. In actual practice, financial incentive
plays a crucial rule to motivate employers.
3. The human relations approach presented a negative view of conflict between organizational and

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individual goals. It views these conflicts as destructive. The positive aspects of conflicts such as
overcoming weaknesses and generation of innovative ideas are ignored.
4. The human relationists drew conclusions from Hawthorne experiments which were clinical
based, rather than scientific. The experiments focused on a particular group chosen for study
which did not represent the entire work force.
5. The human relations approach did not give adequate focus on work. It puts all the emphasis on
interpersonal relations and on the informal group.
It tends to overemphasize the socio-psychological aspects at the cost of structural and technical
aspects.
6. The human relations approach over emphasized on group Dynamics. But in actual practice,
group and group norms, in formal process exercise a light influence in organisation functioning.
Behavioral Science Approach
Mayo and his colleagues pioneered the use of the scientific method in their studies of people in the
work environment. .Later researchers were more rigorously trained in the social sciences (psychology,
sociology, and anthropology) and used more sophisticated research methods. Thus, these later
researchers became known as 'behavioural scientists'. Several sociologists and psychologists, e.g.,
A.H. Maslow, Douglas McGregor, Argyris, F. Herzberg, Rensis Likert, Kurt Lewin, Keith Davis and
others have made significant contributions to the development of this approach. Sciences. It focuses on
human behavior in organizations and seeks to promote verifiable propositions for scientific
understanding of human behavior in organisation behavior and stresses the development of human
beings for the benefit of both the individual and the organisation. It is broad based and consisted of
multiple concepts such as motivation, leadership, communication, group Dynamics, job redesign,
organizational change and development, impact of technology on jobs, etc. It highlights the group and
group relationships broadly which is the focus point of this theory to judge the group behavior in the
organisation. The main propositions of this approach are as follows:
1. Behavioral Science Approach is an inter-disciplinary approach and integrates the knowledge
drawn from different disciplines for the study of human behavior.
2. This approach advocates that an organisation is a socio-technical system which consists of
individuals and their interpersonal and social relationship with each other, and another side it

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consists of various techniques, methods and procedures used by them for performing jobs.
3. Behavioral Approach recognizes individual differences in terms of their personality, goals, beliefs,
values and perception. Therefore, these matters are important for the organisation in case of
motivation.
4. Behavioral Approach -recognizes goal conflicts in the organisation and suggests reconciliation of
the goals of the individuals and the organisation for the effectiveness and efficiency of the
organization.
5. This approach emphasized on informal group which exercise a significant influence on the
attitudes, behavior and performance of employees.
6. Behavioral Science approach stressed upon groups, group behavior and group dynamics. Workers
have their own informal groups and they have their own norms, cultures and communication
system.
7. This is broad based and consists of multiple concepts such as motivation, leadership,
communication, change and development, group dynamics, jobs redesign; etc.
Behavioral approach provided a new insight to human behavior. It integrates the different knowledge
of different fields for the scientific study of human behavior for the benefits of both the individual and
the organisation.
3. Modern approach
Recent development took place in management theories after 1930. It perhaps Chester I. Bernard,
who in 1938, provided a comprehensive explanation of the modem view of management and
organisation. He considers the individual, organisation suppliers and customers as a part of the
environment. Ten years later Weiner's pioneering work on cybernetics developed concepts of systems
controlled by information feed back. It is important note that with the passage of time, the viewpoints
have been changed or modified. Each major contributor brought new knowledge, awareness, and tools
and techniques to understand the organisation better. In Modern era, we are rich than even before in
terms of our knowledge about approaches to understand organizations better.

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1. Quantitative Approach
2. Systems Approach
3. Contingency Approach
A. Quantitative Approach
The approach gained the prominence after the world war II, when British formed the operational
research team-group of mathematicians, physicists and other scientists who were brought together to
solve problems and operations. These groups were expected to develop optimal decisions about
deployment of military resources. This approach is also known as 'Management Science Approach,
Mathematical Approach, Decision Theory approach, or Operations Research.
It is based on the approach of scientific management. It offers a systematic and scientific analysis
and solutions to the problems faced by managers. Today management Science Approach to solving a
problem begins when a mixed team of specialists from relevant disciplines is called to analyses the
problems and propose a course of action to management. The team constructs a mathematical model
to simulate the problem. The model shows, in symbolic terms, all the relevant factors that bear on the
problem and how they are interrelated. Eventually, management science team presents management
with a rational basis for making a decision. The techniques commonly used for solving mathematical
problems in decision-making are Linear programming, critical path method, PERT Games Theory,
Queuing theory, Break Even Analysis, etc. Simply, operation Research is regarded as the application
of scientific methods and mathematical models for solving problems. The basic postulates of
Operation Research Method are as:
i)

Management is regarded as a problem-solving mechanism with the help of mathematical tools and
techniques.

ii) Management problems can be described in quantitative or mathematical symbols, data

and relationship.
iii) The different variables in management can be quantified and related to equation which can
be solved. .
iv) It covers decision making, system analysis, and some aspect of human behavior.
v) The team uses the basic mathematical models; operation research mathematical tools, simulation,
games theory, PERT, CPM to solve the problems.

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Uses and Limitations of Quantitative Approach

The techniques of management science are a well-established part of the problem solving armory of most
large organizations. Management Science techniques are used in such activities as capital budgeting and
cash flow management, production, scheduling, development of product strategies, planning for human
resource development, optimum inventory levels, etc. The development of techniques has contributed
significantly in developing orderly thinking in management and the study of various problems and
talking optimum or best solutions to the problem. It provides a rational basis of decision making. It has
been used as a planning and controlling tool in management.
Quantitative Approach suffers from the limitations in spite of widespread use of many problems:
i) This approach is focused on decision-making and ignored other functions of management.
ii) Management Science Approach are too complicated for ready understanding the concept and
language of the problem and implementation.
iii) Management Scientists feel that they have not achieved their full potential of solving management
problems because of their remoteness from and lack of awareness of the problem and constraints
actually faced, by managers.
iv) it does not consider the human element in the organisation.
v) The approach is based on unrealistic assumptions, e.g., all related variables are measurable and
have a functional relationship.
On the whole, due to these constraints, the quantitative approach has very limited application that only
in respect of decision-making and problem-solving.
B. Systems Approach
In the nineteenth century, modem theories of organisation and management have been developed.
The perspective here is to provide a systems view point In 1951, Weiner's pioneering work on
cybernetics developed concepts of systems control by information feed back. He described on
adaptive system mainly dependent upon measurement and correctional through feedback. The
Systems Approach to management attempts to view the organisation as a unified, purposeful system
composed of interrelated parts. The systems Approach gives managers a way of looking at an
organisation as a whole and a part of the larger environment. Systems Theory tells us that the activity
any part of an organisation affects the activity of every other part. It is integrating approach which
considers the management in its totality. A system is defined as the assemblage of things connected

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or interdependent, so as form a complex unity, a whole composed of parts in orderly arrangement

according to plan. This has been defined as 'an organized of complex whole, an assemblage or
combination of things or parts forming a complex unitary whole.23 The world is considered to be a
system in which various nation economy are sub-systems. In turn, each national economy is
composed of various industry, each industries is composed of firms, and of course, each, firms is
composed of various components such as production, finance, marketing, etc. Thus, each system
consists of several such systems and, in turn, each sub system further is composed of various
components or sub-units; which are interrelated or interdependent each other. The main elements of
Systems Approach are as:
(i) An organisation is a unified and integrative system consisting of several interrelated and
interdependent parts. It gives a manager a way looking at the organisation as a whole.
(ii) A system is considered an open system because it interacts with environment. All
organizations interact with their environment. It gets various resources from the
environment and transforms them into out puts desired by the environment.
(iii) The parts that make-up the whole of a system are called sub-systems.
And each system in turn may be a sub-system of a still larger whole. All these sub-systems are
functionally interacting and interdependent.
(iv) Each system has a boundary that separates it from its environment. The boundaries are more
flexible in an open environment. It maintains the clear and proper relationship between the
system and its environment. The system boundary is rigid in closed system. The boundary of a
system classifies it into two parts: (i) open system, (ii) closed system.
(v) Management as a system is dynamic which suggests that equilibrium in the organisation is always
changing. The survival arid growth in a dynamic environment demands an adaptive system
which can continuously adjust to changing environment. Management tends to bring changes in
the sub-systems of the organisation to cope up with the environmental challenges.
(vi) Systems Approach follows the law of synergy. Synergy means that the whole is greater than the
sum of its parts. In organizational terms, it means that as separate departments within an
organisation cooperate and interact, they become more productive than if each had acted in
isolation. The parts of a system become more productive when they interact with each other.
(vii) Feedback is the key to system controls. As operation of the system proceeds, information is

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feedback to the appropriate people or perhaps to a computer so that the work can be assessed and, if
necessary, corrected. (Viii) Management as a discipline draws and integrates knowledge from various
disciplines and schools of thought like psychology, sociology, anthropology, mathematics, operation
research, and so on.
Evaluation: System theory calls attention to the dynamic and interrelated nature of organizations and
the management task. Thus, systems theory provides understand unanticipated consequences as they
may develop.
In spite these significant points, the systems approach are not free form limitations:
(i) The systems approach cannot be considered a unified theory of organisation. This is in no way a
unified body of thought. Systems approach fails to take a comprehensive study to analyze the
organizations from different angles.
(ii) The systems approach has failed to specify the nature of interactions and inter dependencies
between an organisation and its external environment. (iii) The systems approach has failed to
spell out the precise relationship between various sub-systems.
(iv) The systems approach does not provide action framework applicable to all types of organizations
(v) The systems approach does not offer any tools or techniques for analysis and synthesis of the
system and environment.
C. Contingency Theory
Contingency Approach shares a common ancestry with socio-technical system theories. The latest
approach of management which integrates the various approaches is known as 'contingency' or
'situational' approach. 'Charles Kindleberger specified upon what it depends, and in what ways. "It
depends' is an appropriate response to the important questions in management. Management theory
attempts to determine the predictable relationships between situation, actions, and outcomes. It focuses
on the interdependence of the various factors involved in managerial situation. The early beginnings
can be found in the studies of Burns and Stalker in 1950 which examines what happens to the
behaviour of organisation members as a consequence of technological changes. Joan Woodward
analyzed the influence of technology on organisation structure. She found that span of control;
interpersonal relationships, participation and other structural aspects differed to technology used.
Lawrence and Lorsch (1967) attempted to explain the internal states and processes is an organisation

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according to their external environment. Jay Galbraith revealed that the amount of information
required by an organisation depended on the level of uncertainties, interdependence and adaptation
mechanisms. Tom Bums, G.W. Stalker, Joan Woodward, James Thompson, Paul Lawrance, Jay
Galbraith and other pioneers made significant contribution to the contingency theory.
The contingency approach was developed by managers, consultants, and researches who tried to apply
the concepts of the major schools to real-life situations. They found that methods that were effective
in one situation would not work in other situations.
According to contingency approach, then, the task of managers is to identify which technique will, in
a particular situation, under particular circumstances, and at a particular time, best contribute to the
attainment of management goals. The basic theme of the contingency approach is that there is no
single best way of managing application in all situations. The application of management principles
and practices should be contingent upon the existing circumstances. Functional, behavioral,
quantitative and systems tool of management should be applied situationally. Management should
deal with different situations in different ways. There cannot be a particular management action or
design which will be appropriate for all situation .Contingency Approach is based on generalizations
of 'if and 'then'. 'If represents environmental variables which are interdependent. 'Then' represents
management variables which are dependent on the environment.
The main features of contingency approach are as:
(i) The contingency approach stresses that there is no one best style of leadership which will suit
every situation. The effectiveness of leadership style varies from situation to situation.
Therefore, according to this approach, management is entirely situational.
(ii) Contingency Approach is action-oriented as it is directed towards the application of systems
concepts and the knowledge gained from other approaches. The contingency approach builds
upon this perspective by following in detail on the nature of relationships existing between these
parts.
(iii) Contingency theory attempts to determine the predictable relationships between situations, actions
and outcomes.
(iv) Management should match or 'fit' its approach to the requirements of the particular situation.
Management has to exercise the action subject to environmental changes.
(v) Contingency approach provides significant contribution in organizational design. It suggests that

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no organizational design can be suitable for all situations, rather, the suitable design is one
determined, keeping in view the requirements of environment, technology, risk and people.
Contingency approach is useful orientation in management. It emphasizes the multivariate nature of
organizations- and attempts to understand how organizations operate under varying conditions in
specific circumstances. This theory suggests organisation design and actions which are most
appropriate for specific situation.
Critical evaluations
The primacy of contingency approach is challenged by several theorists. They argue, for one thing,
that the contingency approach does not incorporate all the aspects of systems theory, and they hold
that it has not yet developed to the point of which it can be considered a true theory. Critics also argue
that there is really not much that is new about contingency approach. For example, even the classical
theorists such as Fayol cautioned that management principles must be flexible.
The contingency approach is also criticized on the ground that it is totally a practical approach without
being supported by required theoretical and conceptual framework. The managers experience
difficulty in analyzing situations in the absence of needed research devices and generalizations for
understanding behavior of the situation. Some of the classical theorists forgot the pragmatic cautions
of Fayol and others. Instead, they tried to come up with "universal principles" that could be applied
without the "it depends" dimension. Managers applied the absolute principles by these theorists.
Lastly, the considerations of environmental factors are necessary to develop an organizational design
and action. But, managers are certainly unaware of the environmental changes and could not analyze
the environmental factors properly. The theme of contingency approach that management must be
aware would work best in a particular situation in the absence of certain methods, models and
techniques that are relevant to appraise situation.