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Nature of Management PDF
Nature of Management PDF
Structure
1.1 Concept, Nature, Scope and Functions of Management
1.2 Levels of Management
1.3 Evolution and Foundations of Management Theories – Classical and Neo-
Classical Theories,
1.4 Systems Approach to organisation, Modern Organisation Theory.
1.5 Questions & Exercise
Objectives
After completion of this unit you will be able to know
The basic understanding of the management its nature, the areas where it can
be applied and what are the functions of it.
The different levels of management and its utility. Skill required and the role of
a manager.
New trend in management thought, the system approach and the modern
organisation theory.
Introduction
The management can be defined as a continuous process of achieving
predetermined targets by utilizing the scarce available resources in effective and
efficient manner. So management is an all pervasive activity which requires a well
defined target and efficient deployment of the resources available to the manager, the
general steps followed in management are Planning, Organising, Staffing, Directing
and Controlling. Management is said to be an art as the managerial process has
subjective creativity and at the same time as a science as it is based on the evaluation
of objective theories as well. But whatever is the definition but to be a successful
manager some skills termed as managerial skills are required, like conceptual,
technical and people skill etc. The management can be classified as top management,
middle management and lower management depending upon the role and authority
within the organisation.
With passage of time different theories had emerged in the field of management
by various researchers and practitioners based on their research, experience and
observations. These theories can be classified as classical, administrative, neo
classical and system theories of management. Based on the integration of these
theories the modern thoughts of management has emerged, which is currently
prevalent for the understanding of the management function and its role in the
organisation.
The basic objective of this unit is to make you understand the concepts, objective
and functions of management so that once you become a manager you will be to
understand the organisational objective, their processes and behavior so that you
can suitably adopt the organisation and bring efficient and effective changes with your
endeavors within the organisation and bring excellence in your organisation.
Amity Directorate of Distance and Online Education
100 Management Functions & Behaviour
So based on our own analysis of so many definitions and based on our own
observations and experience we can define “management as a continuous process of
achieving predetermined targets by utilizing the scare available resources efficiently
and effectively. The resources include the finance, time, human effort, technology,
infrastructure, system, material, etc. the efficiency and effectiveness lies with the
strategy formulated and implemented by a person or organisation for achievement of
the targets”
Is Management a Group/Team
We can say that Management is a group/ team because in management there is
a group of people who carry out various activities of management. So we can refer
management as the group of people in an enterprise who are carrying out management
functions. All individuals occupying managerial positions are collectively known as
management. But if we analyze we see that every individual in an organisation is
performing his part of the activity in the management functions so is it not right to say
that every person is a manager.
Technically, the term ‘management’ is used to indicate all the people who carry
out managerial activities. Under this interpretation, all the managers from the chief
executive to the first line supervisors are collectively addressed as management.
Practically, the term ‘management’ is used to indicate only the top management of
the organisation (e.g., Board of Directors and Chief Executive of the company) It
is the top management that has the authority for making important decisions like
introduction of a new product, issue of shares or debentures, joint venture with a
multinational corporation, etc.
Finally every individual who is contributing towards the achievement of the goals by
utilizing the available resources is a manager.
Also according to Harold Koontz management is the art of getting things done
through and with people in formally organized groups, management gets results from
the people by satisfying their needs and expectations, and providing them opportunity
for their personal growth. Therefore we can say that yes management is group of
people
According to Mary Parker Follett, “Management is the art of getting things done
through others’ According to this definition managers achieve organisational objectives
by directing others to perform whatever tasks may be necessary and not performing the
tasks themselves. This traditional view of management emphasizes that management
directs the workers for getting results from them and controls their performance. So
employees are treated merely as a factor of production like materials, machines and
capital.
The management tries to manipulate the behaviour of the workers to get things
done.
The emphasis is only achieving organisational targets, needs and aspirations of the
workers are not considered.
It also means there is division between who actually do the work and who get
things done, but can we really have such distinction.
Finally the line separating owner and management of the company is also widening,
which means managers are also employees who are doing things for the others (
the stakeholders) by getting things done by others ( employees)
So when an organisation employs people for the efficient and effective utilization of
resources to achieve its purpose the people so employed also have their needs which
they seek to fulfill through their work-place. Hence It is essential to satisfy their needs
to motivate them to contribute their efforts for the achievement of organisational goals.
Even authors like Maslow, Herzberg and Vroom have clearly stated that the behavior of
the people working in an organisation is largely dependent upon the fulfillment of their
needs.
The workers are human resources and so they should be treated as human beings
who could be motivated by satisfying their economic and psychological needs. They
are not simply a factor of production or merely a cog in the wheel as was considered
traditionally. To-day’s workers are knowledgeable and have higher aspirations which
they want to be fulfilled at the workplace. Therefore, organisation must provide
opportunities for the growth and development of workers to motivate them for greater
productivity. We can’t say in clear sense that management is an art of getting things
done by others.
Is Management a Discipline?
Management has a systematized body of knowledge and a separate field of study.
Management comprises of an organized body of knowledge which can be learnt
through formal instructions and training. Management can be understood by certain
principles, practices, techniques and skills which help in achieving objectives. This
discipline is taught widely in business schools and through the world. The knowledge
acquired through research in the management can be accumulated to the existing
knowledge and can be used by future managers. So we can say that management is a
Discipline in itself.
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according to Drucker”, Management is a multipurpose organ that manages a
Notes business, manages managers and manages workers and work”. Managers at
higher level have more authority than others.
Functions of Management
The management performs various functions in management of an organisation
before we proceed to defining the functions of the management, we should first know
about what are the objectives which an organisation seeks to fulfill
Higher level of customer Satisfaction:- The objective can be to know the voice of
customer and develop safe, secure and economical products which can generate a
higher level of satisfaction.
Better Workforce. Management tries to build a team of efficient workers who are
happy and satisfied with the organisation. They are cooperative and contribute to
the goals of the organisation.
Wealth Creation for the stakeholders:- Management may set the objective
to create wealth for the stakeholders like shareholder, financers, employees,
customers, vendors, suppliers, society & c .
Achieving the triple bottom:- Management may have the objective to achieve the
economic, social and environmental targets, set by them, also known as triple bottom
approach.
Managerial Functions
Based on the studies and researches of various management scholars we can
define the functions of management as follows:
Planning
Planning is a fundamental process to ascertain and define the objectives of the
organisation, the goals that have to be achieved for the fulfillment of the objective, planning
involves deciding in advance what to do, when to do, where to do, how to do, who will do.
Planning provide the base for the functioning of all the activities in the organisation.
Organising
Organising is process to plan and arrange organisation’s resources like
materials, infrastructure and technology, human resource, finance in such a way that
organisational objectives can be achieved in the minimum effort. It involves division of
work, authority and responsibilities among departments, individual and groups defined
in terms of organisational structure. Organising also define the formal channels of
communications and interdependencies among the different parts of organisation
required for coordination and work accomplishment.
Staffing
Staffing is a process to employ right kind of person at all the designation defined
by the organisation in right numbers, staffing involves to forecast the human resource
requirements for the organisation, to recruit, select and place the individuals on the job
and also perform the administrative decision like performance appraisal, promotion and
transfer etc. Today staffing also include human resource development & training, career
planning etc.
Directing
The process of supervising, guiding and eliminating barriers to performance of the
subordinates is directing, employees direction is that aspect of management which
deals with initiating the work, monitoring the activities to evaluate whether the activities
are done according to the plan or not, in case there is a mismatch between the actual
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and the plan the manager has to find out the causes and rectify it by influencing,
Notes guiding, supervising, motivating sub-ordinates for the achievement of organisational
goals. Direction has following elements
Motivation- Means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary incentives may be used for this purpose.
Controlling
Controlling means measurement of accomplishment against the standards and
correction of deviation if any to ensure achievement of organisational goals. The
purpose of controlling is to ensure that everything occurs in conformities with the plans
and standards. An efficient system of control helps to predict deviations before they
actually occur. According to Theo Haimann, “Controlling is the process of checking
whether or not proper progress is being made towards the objectives and goals
and acting if necessary, to correct any deviation”. According to Koontz & O’Donell
“Controlling is the measurement & correction of performance activities of subordinates
in order to make sure that the enterprise objectives and plans desired to obtain them as
being accomplished”. Therefore controlling has following steps:
Managerail Skills
For performing the management functions a manager should have certain skill set.
With time the skill set required by a manager keep evolving, managerial skill means
the personal ability put to use by a manager for the accomplishment of organisational
goals. The job of a modern manager has become very complex. We can enlist the
various skills required by a manager are as follows.
Organising Skills: - Includes the ability to specify and divide work among team,
ability to use the competencies of the people working under him, maintain the harmony
of relationship flow of communication, handling and resolving conflict.
Leadership: - Ability to lead people from front, to inspire and guide, ability to assess the
situation and guide the team. Ability to motivate the members, to achieve their targets and
ability to inculcate decision making habits, in the subordinate and solve their problems.
Decision Making:- This include the ability to identify and formulate different
alternatives available, to prioritize which decisions are more important, to be able to
make right choices, not to avoid delaying or implementing decisions, to make timely
decisions and follow its implementation.
Human skills: - the ability to work with people, understand their competencies
to utilize them, ability to understand the weaknesses and help them eliminate it, to
harmonize interpersonal relationships and motivate them to work in team spirit.
It also includes the ability to understand the personal problems of the employees and
guide or counsel them as personal life can also be the reason of failing performance.
This also includes the ability to negotiate, resolve conflict and motivate people to realize
their potential.
Conceptual skills:- Conceptual skill means the ability to see the organisation as a
whole and it includes recognizing how the various functions of the organisation depend
on one another. It also makes the individual aware how changes in one part of the
organisation affect the others. It extends to visualizing the relationship of the individual
business to the industry, the community and the political, social and economic forces
of the nation as a whole. Thus, the manager gains insight into improving the overall
effectiveness of the organisation
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Administrative Skills:-These centre around ability to act in a pragmatic manner, get
Notes things done by implementing decisions and plans, to mobilize and organize resources
and efforts, to co-ordinate diverse activities and to regulate organisational events in an
orderly manner.
Pfiffner and Sherwood have classified management levels into four viz., Corporate
management, Top management, and Middle management and Supervisory
management. Koontz and O’Donnell and Brech have classified the levels into two, viz,
top level management and supervisory level management.
Joseph Litterer has suggested three levels, viz., Institutional level, General
management and Departmental management.
J.B. Batty has classified management into four levels, viz., Top management, Upper
middle management, Middle management and Supervisory management.
Based on the analysis of so many experts we can classify the levels of management
in to three levels as
Top Management Level:- Include the Board of Director, Chairman, Chief Executive
Officer, Managing Directors, etc.
Top Management
Some of the functions of top management are
To set targets for all the other functional bodies working under him
Middle Management
Some of the functions of middle management are--
They are the link between the Top and Lower Management levels.
To achieve the targets set for them by utilizing the resources provided to them.
To instruct the lower level of management so that the necessary task can be done.
To monitor and appraise the performance of the lower level of management and
suggest appropriate administrative actions.
To negotiate and allocate resources to achieve the targets set by the top
management.
To align the functioning of his department or division or area under him in line with
the organisational targets.
To direct and control the function rather than planning and organising, such
planning and organising is only limited to short term and on tactical basis.
To implement the top management policies and provide feedback to the higher
levels of management.
To plan the day-to-day activities and assign tasks to their subordinates, guide them
and take corrective steps whenever necessary.
To arrange for necessary materials, machines tools, etc. for workers and to provide
them the necessary working environment.
To provide necessary skill training and guidance required by the operative work
force.
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To help resolve day to day problems of the workers.
Notes
To act as an interface between the operative staff and higher management for
various issues like appraisal, grievances, complaints etc.
Division of Work:- The work is divided in to specialized job and for each specialized
job one department is there, where the job is further broken down in to more simple
tasks. Each employee is expected to perform only routine and well defined task.
It was assumed that if a person will keep on doing one thing routinely then he will
develop specialization to perform that task, so efficiency will be increased
Rules, regulations and procedures:- All the work and behavior is controlled
through set of rules and regulations, by implementation of these rules and
regulations it was expected to achieve better control and consistency of the
performance.
Advantages of Bureaucracy
Specialization:- One of the advantages of bureaucracy is specialization,
bureaucracy is based on the division of work among departments where the work is
broken down into simpler tasks performed by an employee. The employee perform
the same task on a daily basis which make him master of that particular work which
improves efficiency and reduce errors, so bureaucracy enhances the skill of the
employee and make him specialist in performing his task. Due to specialization the
work is done in less time and is free form defects.
Democracy:- The rules and regulations are formulated according to the general
consensus of the management which is arrived after consideration of the majority
of the employees. Once these rules and regulations are set they are religiously
followed which results in to a democratic structure where the decisions are made on
the basis of majority view.
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Stability:- The bureaucracy brings stability and this stability and specialization acts
Notes as a competency for the company, such management is suitable where efficiency is
required in a stable business environment.
Disadvantages of Bureaucracy
Rigidity: - The rigidity comes to bureaucracy as a fact that this management style
is too formal, and the process of bringing changes in the rules and regulations
is too tedious which makes this style of management rigid, because of this such
management style can not respond to changing business environment.
Centralization and Empire building:- The managers at the higher rung try
to enhance their powers and status by adding more people, space, physical
facilities this leads to wastages of resources. This also leads to more rigidity in the
management.
Red Tapism:- Under the bureaucracy the rules and regulations guide the activities
and each activities have to be authorized by higher level and for each authorization
or communication have to be recorded this lead to slowing down of work as for
even minor issues there has to be formal communication from lower level to upper
level for approval and then the approval has to travel through the formal channels to
the actual authority. This communication takes a very long time which withholds the
work and the performance of the organisation.
1. Deceptive belief that a material increase in the output of each man or each
machine in the trade would throw people out of work
According to Taylor the work should not be done in casual manner but worker should
take work more seriously .He conducted various experiments at Bethlehem Steel
Plant which were related to time and motion study where attempts were made to find
appropriate timing and best methods of doing a thing. He selected a Pennsylvanian
Dutchman named Schmidt (real name Henry Nolle) and calculated that Schmidt could
load 47 tons a day rather than the usual 12½ tons, by offering him an increase in pay
of $ 1.85 per day instead of the usual pay of $ 1. 15 per day. Taylor used variable
methods of handling and loading the pig iron and also used variable methods of
ergonomics to find out the maximum amount of productivity.
Such an approach anticipated the rise of reductionism the belief that if a problem
can be reduced to its smallest component, and that component understood, then it is
possible to comprehend the whole.
Such experiments laid the groundwork for the principles of scientific management
which were first published in 1911. These included time studies, standardization of tools
and implements, standardization of work methods etc.
Workers must be selected on the basis of scientific management which means they
should be made aware of the methods of doing work and trained to perform the task as
prescribed; it will significantly improve the productivity. Bring together the scientifically
designed jobs and workers (having the required training and aptitude) so that there will
be match between them. The work should be divided between the management and
worker, and should have a close cooperation.
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task or activity to define a scientific method of doing it, and also calculate the amount
Notes of work an average worker can perform, this is known as fair day’s work. It is the
responsibility of the management to decide what to do, how to do, when to do, where to
do and by whom to be done.
Standardization
Scientific management advocated the concepts of standardization where by
conducting work study (time study, motion study, method study and fatigue study)
we can find out the best practice of doing a thing, which can act as the basis of
performance evaluation, this standardization can be applied to process, material, time,
product and working conditions etc. having standardization will allow to do the work
more consistently.
Functional Foremanship
Scientific management theory advocated the concept of functional foremanship.
Taylor concentrated on improving the performance of foreman who actually supervise
the work this role in the factory set-up. He identified a list of qualities of a good foreman/
supervisor and found that no single person could fit them all. Hence the concept
of functional foremanship was developed which is group of eight persons. Taylor
advocated separation of planning and execution functions. Under the factory manager
there was a planning in charge and a production in charge. Under planning in charge
four personnel namely instruction card clerk, route clerk, time and cost clerk and a
disciplinarian worked. These four personnel would draft instructions for the workers,
specify the route of production, prepare time and cost sheet and ensure discipline
respectively. Under Production in charge, personnel who would work were speed boss,
gang boss, repair boss and inspector. These respectively were responsible for timely
and accurate completion of job, keeping machines and tools etc., ready for operation
by workers, ensure proper working condition of machines and tools and check the
quality of work. Functional foremanship is an extension of the principle of division of
work and specialization to the shop floor. Each worker will have to take orders from
these eight foremen in the related process or function of production. Foremen should
have intelligence, education, tact, grit, judgment, special knowledge, manual dexterity,
and energy, honesty and good health. Since all these qualities could not be found in
a single person so Taylor proposed eight specialists. Each specialist is to be assigned
work according to her/his qualities.
Method Study
The objective of method study is to find out one best way of doing the job. There
are various methods of doing the job. To determine the best way there are several
parameters. Right from procurement of raw materials till the final product is delivered
to the customer every activity is part of method study. Taylor devised the concept of
assembly line by using method study.
Motion study
Motion study refers to the study of movements like lifting; putting objects, sitting and
changing positions etc. this study also deals with ergonomics of doing a thing under this
study unnecessary movements are sought to be eliminated so that it takes less time
to complete the job efficiently. For example, Taylor and his associate Frank Gailberth
were able to reduce motions in brick layering from 18 to just 5. Taylor demonstrated that
productivity increased to about four times by this process.
Fatigue study
Fatigue study seeks to determine the amount and frequency of rest intervals in
completing a task. A person is bound to feel tired physically and mentally while working
and if rest time is not provided while working. The rest intervals will help to regain
stamina to work again with the same capacity. This results in increased productivity.
The rest timing and frequency is decided on the basis of long working hours, doing
unsuitable work etc even having uncordial relations with supervisor, or unsuitable
working condition will also cause more fatigue hence such hindrances should also be
eliminated.
His analysis about administration was entirely built on his personal observation
and experience of what worked well in terms of organisation. His aspiration for an
“administrative science” sought a consistent set of principles that all organisations must
apply in order to run properly.
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F. W. Taylor published “The Principles of Scientific Management” in the USA in 1911,
Notes and Fayol in 1916 examined the nature of management and administration on the basis
of his French mining organisation experiences.
According to scientific management Fayol classified the business operation into six
major activities
Technical – Production
To Forecast & Plan – To forecast about future, define objectives and formulate
plans of action to achieve these objectives.
To co-ordinate- To harmonize and bind together the activities and efforts of the
organisation to achieve the set goals.
These five management functions are still the basis of management functions today.
For organisational design and effective administration, Henry Fayol had also given
fourteen principles known as Henry Fayol’s 14 Principles of Management. According to
him these principles can be applied in all types of organisations irrespective of size,
function and levele.
Division of labor
According to this principle of work should be allocated among people this will lead
to specialization as the employees will be able to concentrate on their activities and will
enhance skills and understandings, resulting in to more work focus and efficiency.
Discipline
According to this principle employees must obey and respect the rules that govern
the organisation, good discipline is the result of effective leadership. There has to be
a clear understanding between management and workers regarding the organisation’s
Unity of command
According to this principle the employee should report only to one superior
and receive instructions from him only, this prevents unnecessary confusion and
indiscipline, reporting to two or more superiors will result in conflicts in instruction and
dilution of authority.
Unity of direction
According to this principle there should be one manager for one plan, so only one
person should head all the activities having same objective.
Remuneration of personal
The compensation or remuneration should be fair to employee and the employer, so
as to give satisfaction to both the staff and the firm, even a profit sharing can be done
but only for the managers only.
Centralization
According to this the manager should retain the final responsibility but also
give enough authority to subordinate to do their job properly. Fayol stated that there
should be proportionate division of authority but the manager should bear the overall
responsibility of the work.
Order
Everything in the organisation should be in order, place for everything and
everything at its place, a place for everyone and every one in his place.
Equity
Equity, fairness and a sense of justice “should “pervade the organisation - in
principle and practice. The application of equity requires good sense, experience and
good nature for soliciting loyalty and devotion from subordinates.
Stability of tenure.
Time is needed for the employee to adapt to his/her work and perform it effectively.
Stability of tenure promotes loyalty to the organisation, its purposes and values.
Management should implement practices which foster long term commitment of people,
lack of stability can effect the fortunes of the company.
Initiative
Employees must be encouraged to think through to implement a plan of action,
even though some mistakes may result, the opportunity to perform independently
is an essential component of employee growth and development. At all levels of the
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organisational structure, zeal, enthusiasm and energy are enabled by people having the
Notes scope for personal initiative.
Esprit de corps
Unity is strength; organisation should promote team spirit which will give the
organisation a sense of unity.
These principles were taken as universal principles of management and till date have
importance in undertstanding the concepts of management, Fayol stated that any one could
learn these principles and apply successfully in the management of any enterprise.
Fayol also defined a list of managerial skills which a manager should acquire in
order to become more effective. These include skills like Physical health, Mental
ability, Morality, Educational competence, Technical skills and Experience.
Neglect of people:- The theory emphasized only the organisational rules and
people are considered as passive factor, the behavior of people can be changed by
incentives and organisation’s rules.
False Assumption:- The theory is also criticized on the fact that assuming that
these principles can be applied at all the organisations is false, as it does not recognize
the differences of objective, work, situations faced by the organisation. Similarly only
authority vested in managers can control employees. Managers have to act differently
in different situations, which depend on the varying factors of internal environment and
external of the business.
Historical Significance: - The theory is valid only for the past as the current
business environment is entirely different from the time when the theory was
propounded. Hence the significance of the theory is minimal.
Lack of people orientation: - This theory standardized the tasks, so there was no
room of flexibility for the people at work, they were considered as a tool of operation
only performing standard work in a standard process. The workers were expected to
repeat the same operation daily in a mechanical way this lead to high demotivation, due
to boredom and monotony. The efforts of people are severely neglected.
The neo classical theories were also known as human relations theory and included
the insights form behavioral science like psychology, sociology and anthropology.
Elton Mayo was also the researcher who conducted the Hawthorne experiments in the
Western Electric Company from 1924 to 1933. These experiments became the basis of
this theory.
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Relay Assembly Test Room Experiments, 1927-1929
Notes The next experiments begin in 1927 focused on the relay assembly department,
where the electromagnetic switches that made telephone connections possible were
produced. The manufacture of relays required the repetitive assembly of pins, springs,
armatures, insulators, coils, and screws. For the experiment a small group of workers
were placed in a separate room and a number of factors were changed, like wages of
the test group was increased, the workers were allowed to chose their own rest timings,
and their suggestions were also considered in changes. Surprisingly the productivity
increased in both the test and the control group even when there is no change in the
control group.
The above two experiments shown that apart from changing the factors there is
something else which helped the increase in the productivity even when the factors for
control group were held constant, this conclusion lead to the concept of Hawthorne Effect.
The increase in the productivity in the control is attributed the special treatment
and attention which the workers got due to the experiment. This special attention and
treatment was concluded to be the factor to increase of the productivity. They workers
were allowed to participate in decision making about work changes, and were not
subject to usual restrictions. The result of such attention and special treatment caused
stimulating feeling of pride and belongingness which resulted in to increase in the
productivity. This increase in worker’s performance by providing attention and allowing
them to participate is known as Hawthorne effect.
Work-group norms affect productivity. The Hawthorne researchers were not the
first to recognize that work groups tend to arrive at norms of what is “a fair day’s
work.” However, they provided the best systematic description and interpretation of
this phenomenon.
The need for recognition, security and sense of belonging is more important in
determining workers’ morale and productivity than the physical conditions under
which he works.
The major finding of the study was that almost regardless of the experimental
manipulation, worker production seemed to continually improve. One reasonable
conclusion is that the workers were happy to receive attention from the researchers
who expressed an interest in them. Originally, the study was expected to last one
year, but since the findings were inexplicable when the researchers tried to relate the
worker’s efficiency to manipulated physical conditions, the project was incrementally
extended to five years.
Individual
An individual is not a mechanical tool but a distinct social being, with aspirations
beyond mere fulfillment of a few economic and security works. Individuals differ from
each other in pursuing these desires. Thus, an individual should be recognized as
interacting with social and economic factors.
Work group
The neoclassical approach highlighted the social facets of work groups or informal
organisations that operate within a formal organisation. The concept of ‘group’ and its
synergistic benefits were considered important.
Participative management
Participative management or decision making permits workers to participate in the
decision making process. This was a new form of management to ensure increases in
productivity.
Work Environment
Management should create conducive and positive work environment where people
are able to achieve organisational goals along with the personal goals. A positive
environment can be created when goals are clear and understood by employees,
incentive schemes are properly used to improve performance, decisions are timely and
participation is there, conflicts are considered and resolved openly, the work itself is
interesting and growth oriented.
Leadership
The leader should be a competent enough to be flexible to various personalities and
situations. He should be able to create a pleasant work climate where strict control is
absent and employees are allowed to participate in decision making process.
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loyalties toward organisation they will only think about self interests, and by preaching
Notes collaboration instead of competition will lead to decreased efficiencies, interest in
human relationship is stated as sentimentality and unrealistic desire to make everyone
happy. It was considered impractical solution to bring harmony between management
and the worker.
Narrow Approach
The theory is also criticized on the grounds that there is overemphasis on the
psychological aspects and the structural and technical aspects were neglected. It
also overlooks the economic dimension of work satisfaction, the motivation factor by
economical benefits was undermined.
Skinner (1971) had given the theory of “operant conditioning.” In this theory
humans (and animals) will respond to particular stimuli and will modify their behavior
because of it. This stimuli could be either reinforcing (keep turning up to work and pay
keeps getting deposited in your bank account) or aversive (punishment.) the manager
Some other points of the behavioral theory are people like doing work as they
like doing any other activity but if they are a participant in decision making then the
commitment will be better.People don’t require extreme supervision they can exercise
self control, self direction and creative by nature.
Motivation factor
The theory is criticized on the fact that each individual may have different
motivational needs and each need influence him differently so how can all be motivated
equally.
Compatibility of Goals
The theory stated that there is compatibility between individual and organisational
goals, but in reality individual’s desire to be autonomous and creative can be conflicting
to the organisational goals.
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Non human aspects
Notes The theory only focuses on the human relation and behavior aspects but ignores the
non human aspects of management like method, technology and structure etc.
According to system approach it is the synergy which comes from the coordination
of all elements of the organisation brings the unique competencies of the organisation,
we can’t view a department or an activity in isolation to improve the performance of the
organisation.
Sub System:- A part of the overall system which also acts as a system in itself, e.g.
a functional departmental of the organisation can be seen as a part of the organisation
system and can also be considered a system in itself. So we can different systems like
goal sub system, technical sub system, structural sub system, managerial sub system,
psychological sub system.
Synergy:- Synergy means the effect of system is more as compared to the sum
total effect of its constituent elements. If the different activities and sub systems of the
organisation are coordinated well then only synergy can be achieved and this is the
challenge which the management face.
System Boundary:- A barrier which separates the system and its constituents from
the external environment. Boundary allows or disallows the system to interact with the
external environment and also distinguish the system from the environment as a whole.
Process and Flow – A system is formed to achieve desired objectives and for it
the system require some inputs and transform it in to the out puts, any activity within
a system which require an input and transformed into an output is known as process,
The system theory of management is one step further to all the previous theories of
management, it envisaged the overall organisation and all its activities as one entity, it
emphasized the interrelations and interdependencies of each part of the organisation in
the success. This theory conceptualized the ideas focusing only on one component will
not lead to success; the manager should consider the effects their decisions will carry
on the entire system even when a single element of the system is related.
System theory compiled the scientific management theory, administrative theory and
the human relation theory in one.
Motivation:- The theory accepts to the fact that each individual has different sets of
needs which motivate him, the behavior is the outcome of so many different factors and
we have to deal with them differently.
Descriptive and probabilistic in nature:- The theory only describe how the
management is done it doesn’t tell the ways to manage, it means it is only giving a
description and not prescribing any ways as it depends on probabilities or chances of
happening a certain outcome, according to this theory we can only give probabilistic
view about the system’s outcome, we can not predict in absolute terms.
2
Integrative:- The theory integrates all the important areas and concepts of
Notes management theory.
Summary
The management can be defined as a continuous process of achieving
predetermined targets by utilizing the scarce available resources in effective and
efficient manner. Management can also be defined as group or team of people who
carry out various activities of managing the organisation. Management is considered
as art as well as science as it has the characteristics of both, because every manager
can use his own insights and decision making to run the business whereas it also
follow some fundamental theories and concepts. The management is goal oriented,
social, universal and continuous process which integrates the resources and efforts of
the organisation in achievement of its objectives. Management is a discipline and act
according to the requirement of the changing environment, relies on the relationships
and authority and employs the resources to get best results. The major objectives of
management is to achieve organisations objective through judicious and optimal use
of resources so as to create wealth for its stakeholders, the other objectives of the
organisation to justify its presence in the market place and being a social entity deliver
benefits to the society at large by not only bringing safe and secure products in the
market but also creating better employment opportunities and achieving the social
responsibility targets.
Neo classical approach in management begin with the Elton Mayo’s Hawthrone
Experiments where he found that there is significant improvement in the performance of
people with attention being given to them by the management and with more freedom
at work place also helps in improvement. Such results shifted the focus of management
that people involvement and role is of importance in the management of organisation,
later on with behavioral experts contributions like The contributions of Burrhus F.
Skinner, Abraham H. Maslow and Douglas McGregor,F. Fiedler, V. Vroom, F. Hertzberg,
E. Locke, D. McClelland, R. Hackman, J. Pfeffer, K. Thomas and C. Perrow resulted in
the development of management theory. They emphasized on the role of behavior and
the possibilities of changing the individual behavior through concepts like reinforcement
theories of Skinner and the Social learning theory of Bandura. Currently the systematic
theory of management is more relevant which is based on the integration of all the
elements of management concepts and analyze the organisation as a single system in
which people and non people factors act together to achieve a desired goals.
b) Concept of management where the people skills and their motivation drivers
are used to increase the efficiency.
d) Concept of management where full liberty is given to worker so that there will
be less supervision resulting into efficiency.
b) If you allow the worker to talk more there will be increase in productivity
a) There is no one best method of doing things hence let the worker select the
method of doing things
b) There is one best method of doing things and so the tasks should be
standardized so that suitable worker can be matched with the standard method.
c) There is one best method of doing things and management should apply carrot
and stick approach to make worker understand that this method should be
adopted by them
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6. According to modern organisational theory approach
Notes
a) Organisation is a rigid group of people trying to change according to the
changing business environment
4. Visit any organisation and meet with a manager and make out a list of different
responsibilities and functions he has to perform during his work.
6. Greenberg, J. & Baron, R.A. 1993, Behaviors in Organisations, Allyn and Bacon,
Boston.