Theory

Derived from Greek word theoria means looking at

They are ideas organized in logical order
It distinguish real from ideal, right from wrong
It is based on logical reasoning and set of principles systematically arranged
It is concise presentation of facts and logical set of assumptions
Elements of theory are set of propositions, which are interrelated, and can be empirically
tested.
It should conform to objectivity, reliability, universality, coherence and
comprehensiveness

Woodrow Wilson

Essay the study of administration

He presented the necessity, value, method and means in which study is to be carried out
According to him the study of administration developed because of growing complexity,
functions, growth of governments on democratic lines.
According to him objective of study was to find out what government can do, how it can
do efficiently
According to him reasons behind neglect of study was small population and therefore less
government function
Growth of administration in Europe was: - 1st government was independent of popular
assent and 2nd desire to keep government a monopoly
He felt that unless nation stops tinkering with constitution it is difficult to concentrate on
administration.
He observed that it is more difficult to run a constitution then to frame one.
PA is detailed and systematic execution of public laws.
Politics and administration
His views on its dependence is not clear
He says politics is for statesmen and administration is for technical officer
The idea is about politics and PA and how each should be separated and yet work
together
Business and administration
Buechner argued that Wilson argument was that PA and private administration were
synonymous
Wilson felt that public opinion should be like critic and should not interfere in
administration
Civil services based on merit is necessary to organize in democracy. It should have sense
and vigor.

He emphasized on comparative method of PA. one can learn by weakness and virtues of
any system by comparing it with other method
Evaluation
He established PA as field of study
He failed to emphasis on actual relationship between administration and politics

Henri Fayol

According to him attempt to sub divide study of management or administration in

accordance with purpose of activity is untenable
Types of activity in industrial undertaking
1. Technical activity
2. Commercial activity
3. Financial activity
4. Security activity
5. Accounting activity
6. Managerial activity
Fayol says irrespective of nature of organization these 6 activity will be present, although
importance of first 5 may vary.
Elements of management: Planning- separates short run and long run events. Unity, continuity, flexibility,
precision are broad features of planning
Organizing- to provide everything required for its functioning. They are of 2 types
material and human organization
Command- it rests on personal qualities and knowledge of general principle of
management
Coordination- to ensure one department efforts coincide with others in regards to
overall aim of organization
Control- obtain conformity with plan adopted, instruction issued, principles
established.
Attributes of manager
1. Physical
2. Mental
3. Moral
4. General education
5. Special knowledge
6. Experience
Principles of administration
They are not rigid and are 14 in number given by Fayol
1. Division of work
2. Authority and responsibility

3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest over general interest
7. Remuneration of personnel
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stabilization of tenure
13. Initiative
14. Esprit de corps
He considers every superior officer as teacher to his immediate subordinates.
Gangplank it refers to level jumping in hierarchical organization
Criticism
1. His 14 principles have overlapping
2. Empirical base is narrow
3. Unity of command will overwhelm chief executive with problem of coordination
4. Behavioral aspect is neglected.

FREDERICK TAYLOR

Father of scientific management

Soldiering- is a phenomenon of workers purposely operating below their capacity
3 reasons for this1. Some of them can loose job if they produced surplus
2. Non incentive wage system
3. Unscientific rules and practices of work
Taylor proposed to use stopwatch to know workers sequence of motion and determine the
best way to do a job.
Piece rate system
1. Observe and analysis of work for time study for rate and standards
2. Differential rate system
3. Pay men and not position
Shop management
1. management should pay high wages and have low unit cost of production
2. application of scientific methods
3. standardization of work condition
4. friendly cooperation between workers and management
defects of management1. management had no clear understanding of worker-management responsibility
2. lack of effective standard of work

3. restricted o/p
4. no proper incentive
5. unscientific decision making
6. lack of study of division of work
7. placement of worker without consideration of ability, aptitude, interest.
He lay down foundation of personnel management i.e. to match workers ability to job.
Maximum prosperity for employer and employee
High productivity and benefit sharing between employer, employee, customer
Determine standards, planning work, organizing, controlling and incentive.
Principles of scientific management
1. Development of true science- best way of doing a job
2. Scientific selection of workers- selecting workers possessing physical and
intellectual qualities to ensure effective performance
3. Scientific education and development of worker- ensure worker do not slip back
to old methods
4. Friendly cooperation between management and men- equal responsibility between
worker and management.
Philosophy of these principles1. Science, not rule of thumb
2. Harmony, not discord
3. Cooperation, not individualism
4. Maximum output
5. Development of each man to the greatest
Functional foremanship- here workers received order from 8 supervisors
1. Route clerk
2. Instruction clerk
3. Time and cost clerk
4. Shop disciplinarian
5. Gang boss
6. Repair boss
7. Speed boss
8. Inspector
First 4 are planning bosses while next 4 are functional bosses
Qualities of foreman1. Education
2. Technical knowledge
3. Manual dexterity
4. Tact
5. Energy
6. Grit
7. Honesty
8. Judgement
9. Good health

Mechanism to operate principles of scientific management

1. Time study
2. Standardization of tools
3. Acts of workers
4. Planning room
5. Exception principle
6. Slide rules
7. Instruction cards
8. Differential rate
9. Modern cost system
10. Routing system
Mental revolution- mutual interest are not antagonistic and mutual prosperity is possible
through mutual cooperation. Management and employee should take eye off from
division of surplus and concentrate on increasing surplus and make it so large that it
become irrelevant how it is divided.
Criticism1. Trade unions opposed taylorism as it destroyed trade unions and power of
collective bargain.
2. They also felt that it neglected concern of total work situation and human aspect
of production
3. It was opposed by managers who wanted quick promotions without any merit
based on higher education
4. His minute division of work was criticized on following grounds- work gets
depersonalized, it leads to automation of workers and participation of workers is
low.
Evaluation- he was first to apply quantitative techniques to the study of industrial
management. For young and imaginative engineers he provided ethos and mission.

Max Weber

Five essential components of authority1. Individual who rule

2. Individuals who are rules
3. Will of ruler to influence conduct of ruled
4. Influence of rulers
5. Direct or indirect evidence of this influence

Authority exists as long as it is accepted as legitimate by ruled

He defined administration as dominance or exercise of authority while most other
scientist defined it as service
Types of authority/leadership1. Traditional- commands are legitimate because of customs. Followers carry out
command because of personal loyalty. Administration is irrational
2. Charismatic- claim authority by virtue of magical power, heroism, gift, etc.
followers are selected based on personal loyalty and devotion.
3. Legal- rules are applied judicially and in accordance with accepted principle.
All 3 authority claims authority as long as ruled accepts it.
Bureaucracy- to him it is an administrative body of appointed officials. He included
explicitly appointed officials only. It is of 2 types patrimonial bureaucracy found in
traditional and charismatic type, legal rational bureaucracy found in legal type it is also
known as Weberian model.
Legitimacy of authority depends upon 5 belief1. A legal code which can claim obedience
2. Rules applicable as per case
3. Individuals exercising authority also obey interpersonal order
4. Obedience to position not person
5. Members obey law
Characteristics of legal rational bureaucracy are1. Official business conducted on regular basis
2. Administrative agency function on stipulated rules
3. Every official and office is part of hierarchy
4. Official do not own resources needed to render the duty
5. Office cannot be filled by incompetent
6. Administration conducted on basis of written document
He stressed that people once ruled by bureaucracy can never think of another alternative.
Hence it is permanent and indispensable.
Main elements of bureaucracy are1. Impersonal orders
2. Rules
3. Sphere of competence
4. Hierarchy
5. Personal and public ends
6. Written document
7. Monocratic type
Critics1. Rationality, suitability in different places and environment, efficiency.
2. According to Merton hierarchy and rules will create inefficiency in bureaucracy
3. Division of function in an organization will compel sub units to set their own
goals which may be in conflict with organizations goals

4. Weber expects administrative staff to be technically superior which may not be

always true.
5. Rudolf complained that webers model carries misconception that administration
was a rational machine and officials were mere technical functionaries.
6. Robert Presthus considers that webers model makes implicit assumption about
human motivation.
7. Bernard and Simon believed that organizational efficiency would fall if his
methods were applied.
8. Human behavior ignored
9. Rigid adherence to principle of hierarchy
10. Authoritarianism of superiors
11. Too much adherence to written communication and recorded oral communication.
Evaluation- reflects condition of Germany of that time. Selection threw merit, absence of
appropriation of official position are +ve points. Impersonal order, rules, sphere of
competence, hierarchy, technical rules, written document are in ve category.

Luther Gulick and Lyndall Urwick

They were influenced by line and staff model from military organization, machine model
of man by Taylor, industrial management by Henry Fayol an derived classical theory of
management or administrative management theory
Structure of administration major cause of friction and confusion is due to faulty organization structure
Urwick felt that lack of design of organization is illogical, cruel, wasteful and
inefficient
Illogical because it is inconceivable to appoint a person and pay him without an idea
of position he is to occupy
Cruel when an organizational member does not know the qualification required for
job and duties assigned to him
Wasteful functional specialization not possible
Inefficient because supervisors have nothing to fall back in case of conflict or
confusion.
Principles of organization according to Gulick1. Division of work
2. Departmentalization
3. Coordination threw hierarchy
4. Deliberate coordination
5. Coordination through committees
6. Decentralization
7. Unity of command
8. Staff and line
9. Delegation
10. Span of control

Urwick principles of organization1. Objectivity

2. Correspondence
3. Responsibility
4. Scalar principle
5. Span of control
6. Specialization
7. Coordination
8. Definition
Executive function- POSDCORB
Planning
Organizing
Staffing
Directing
Coordinating
Reporting
Theory of departmentalization- work can be divided into 4 basis Purpose, Process,
Person, Place also known as 4Ps. for an organization to work successfully it should use
all 4 basis.
Single executive- both of them favoured single top executive and felt committees are
irresponsible and try to shield mistakes and avoid responsibility. They are slow,
cumbersome, wasteful, inefficient. Both of them favoured unity of command despite the
fact that it is not universally applicable.
Staff principle- unity of leadership. Leader is assisted by staff which is both general and
special.
Delegation- delegation of authority a need because in its absence subordinate cannot
discharge responsibility and function entrusted to them. Urwick emphasized need to
delegate responsibility. He said executive should be personally responsible for actions of
their subordinates. Authors emphasized on principle of correspondence of responsibility
and authority.
Span of control- an official cannot effectively control more than a certain number of
subordinates. Urwick gave this number as 5, he observed that if number of subordinate
are increased in AP then P& Combination relationship requiring superiors attention
increases in GP. Span depends upon superiors knowledge, kind of work, time span.
Human factor and time- Gulick considers human being as major and essential variable.
Major function of state should be human welfare, survival, improvement. He emphasized
need of decentralization. He identified 5 factors of time- as input, as output, as flow of
events, as gap between 2 events, as management policy.
Evaluation- principles not clearly defined. Absence of universality. They gave
suggestion and not rules. Simon called them mere proverb. Contradiction between
specialization and unity of command. Span of control is another criticism.
Departmentalization is overlapping. Neglected human elements. Neglected informal
organization. V. Subramanium said their theory lacked sophistication and is pro

management. Simon and March pointed out 5 limitations- improper motivation, little
appreciation to inter organizational conflict, constraint on human beings, task
identification and classification given little stress, program evaluation given little stress.

Mary Parker Follett

Advances idea of constructive conflict

Ways of resolving conflict
1. Dominance
2. Compromise
3. Integration
Integration is difficult to achieve
Basis of integration
1. Bring differences to open
2. Breaking up of issue
3. Anticipation of issue
Obstacles to integration
1. It is easier to fight
2. People enjoy domination
3. needing immediate solution
4. language used
5. undue influence of leaders
6. lack of training
steps to give order1. conscious attitude
2. responsible attitude
3. experimental attitude
4. pooling of result
acceptance of order can be ascertained by1. officials should see desirability
2. rules should be so changed so as to adopt new method
3. few people should be convinced in advance
4. intensifying the attitude to be released
depersonalizing of order- follett says one should not give order to other but both should
take order from situation. It only means exercising authority of situation.
Power, authority and control- power is ability to make things happen. There are 2 types
of power- power over and power with. Former is coercive power while later is coactive
power. Power with is superior and developmental. It can never be delegated.
Authority is vested power. It sometimes creates friction
Control tends to self-control.
4 principle of organization1. coordination relating to all factors

2. coordination by direct control

3. coordination at early stage
4. coordination as a continuing process.
Leadership- ideas of leadership changes. Coordination, purpose and anticipation are
critical functions of leader. Leaders can be made. 3 types of leadership- of position,
personality and function.
Evaluation- follett criticized classical theory for its one sidedness, mechanistic approach
and for ignoring psychological aspect. She was criticized for 1 ignoring social nature, 2
unsystematic writings, 3 she never had institutional basis to support her situation, 4 her
ideas are not practical in current times as Mecalf and Urwick pointed out thy are advance
of current thinking.

Elton Mayo
Read experiments from book.
Harvard group proposed 5 hypotheses for failure of original illumination project1. Improved material conditions and method of work- rejected because of later illumination
experiment results.
2. Rest period and shorter work duration- rejected because it did not explained why
production increased even after withdrawal of privileges.
3. Relief from monotony to increase production- rejected because monotony had nothing to
do with physical environment.
4. Individual wage payment incentive- rejected in further experiments
5. Changes in supervision technique- this was accepted as it created interpersonal contact
between workers and supervisors.
Worker satisfaction depends upon informal social pattern.
Links between supervision, morale and productivity became foundation stone of human
relation movement.
Human attitude and sentiments- two types of complains were observed material
complains and psychological complains. The study identified following 3 aspects1. Workers appreciated method of information collection
2. Change in attitude of supervisors
3. Research team acquired new skills
Social organization- social organization did not allowed workers to increase or decrease
the output. And followed following code of conduct1. One should not turn out too much work
2. One should not turn out too little work
3. One should not tell supervisor anything detrimental to association
4. One should not attempt to maintain social distance
In addition to technical skills, management should handle human situation, motivate, lead
and communicate with workers.

Criticism1. Theory tried to substitute union representation to human relation orientation

supervisors
2. Theory full of pitfalls
3. Economic dimension neglected
Evaluation- he examined employer-employee relation, stability of labor, supervision,
etc. Also importance of group in affecting behavior was brilliantly analyzed.

Chester Barnard

He viewed organization as system of cooperation of human activity

Each person has his own biological, physical and social limitations.
He emphasized on system of interaction
He disapproved system of economic man and propounded theory of contributionsatisfaction equilibrium.
He said that if a person gets back only what he puts in there is no net satisfactionand
incentive for him in organization.
4 specific inducements
1. Material inducements
2. Personal inducements
3. Desirable working conditions
4. Ideal benefactions
4 general inducements
1. Association attractiveness
2. Adoption of working condition
3. Opportunity
4. Communication
Economic rewards are ineffective beyond a certain level.
Formal organization- it is system of consciously coordinated activity or force of 2 or
more person. Organization comes into existence only when1. Persons are able to communicate with each other
2. Who are willing to contribute
3. To accomplish common purpose
These are 3 elements of communication
Commitment of individuals always fluctuates and thereby creates instability in
organization.

For cooperation there must always be objective or purpose. This need not be specific.
Cooperative and subjective aspect of purpose are different. Individual motive are
personal, internal and subjective.
Characteristics of formal organization1. System
2. Depersonalization
3. Specialization
4. Informal organization
Informal organization- individuals interact based on personal interaction. Because of
instincts or fulfillment of some personal desire. These are indefinite, structure less and
shape less. Formal organisation must establish informal organisation within it for
communication. It should not be viewed as evil.
Theory of authority- introduced acceptance as basis of authority. Individuals accept
authority only when following 4 conditions are satisfied1. Communication is understood
2. Consistency with organisation purpose
3. Compatibility with personal interest
4. Physical and mental ability to comply
Conditions for cooperation of individuals for following orders
1. Orders in accordance with above 4 conditions
2. Orders fall in zone of indifference
3. Group influence of individuals resulting in stability of zone of indifference
Zone of indifference- if orders are arranged according to acceptability they fall in 3
categories1. Those which are clearly unacceptable and not obeyed
2. Those that are on neutral line
3. Those that are unquestionably acceptable this is zone of indifference.
Fiction of authority- read from book
Responsibility- he examines responsibility from point of view of morality, legality,
technicality, profession and institutional code. According to him business is totally
unaffected by concept of morality.
Decision making-