DR SARITA IYER

MBA,MMM,MS,MPHIL,PhD
MODULE 1
MANAGEMENT GURU
FATHER OF
MANAGEMENT
COINED
MB0(MANAGEMENT BY
OBJECTIVES)
 MANAGEMENT BY OBJECTIVES (MBO) IS A
STRATEGIC APPROACH TO ENHANCE THE
PERFORMANCE OF AN ORGANIZATION.
 IT IS A PROCESS WHERE THE GOALS OF THE
ORGANIZATION ARE DEFINED AND CONVEYED BY
THE MANAGEMENT TO THE MEMBERS OF
THE ORGANIZATION IN CONSULTATION WITH
THEM
 WITH THE INTENTION TO ACHIEVE EACH
OBJECTIVE.
 STEPS
IN MANAGEMENT BY
OBJECTIVES PROCESS
SETTING OBJECTIVES IS NOT ONLY
CRITICAL TO THE SUCCESS OF ANY
COMPANY, BUT IT ALSO SERVES A VARIETY
OF PURPOSES.
 IT NEEDS TO INCLUDE SEVERAL DIFFERENT
TYPES OF MANAGERS IN SETTING GOALS.
THE MISSION AND VISION OF THE
ORGANIZATION ARE ALSO KEPT IN
MIND
THIS WILL BE A ONE-ON-ONE DISCUSSION
WHERE THE EMPLOYEES WILL LET THE
MANAGERS KNOW ABOUT THEIR TARGETS
AND WHICH GOALS THEY CAN ACCOMPLISH
WITHIN A SPECIFIC TIME AND WITH WHAT
RESOURCES
. THEY CAN THEN SHARE THEIR IDEAS AND
THOUGHTS ABOUT WHICH GOALS THE
ORGANIZATION OR DEPARTMENT CAN FIND
 THE MANAGEMENT BY OBJECTIVES
APPROACH IS NECESSARY FOR
INCREASING THE EFFECTIVENESS OF
MANAGERS
 IT IS EQUALLY ESSENTIAL FOR
MONITORING THE PERFORMANCE AND
PROGRESS OF EACH EMPLOYEE IN THE
ORGANIZATION.
 WITHIN THE MBO FRAMEWORK,
THERE IS CONSTANT EVALUATION
BASED ON THE PREDETERMINED
GOALS.
 THESE GOALS ARE ALSO CALLED
KRA( KEY RESULT AREAS)
 IN THE MANAGEMENT BY OBJECTIVES APPROACH,
THE MOST ESSENTIAL STEP IS THE
CONTINUOUS FEEDBACK ON THE RESULTS AND
OBJECTIVES
 IT ENABLES THE EMPLOYEES TO TRACK AND
MAKE CORRECTIONS TO THEIR ACTIONS.
 THE ONGOING FEEDBACK IS COMPLEMENTED BY
FREQUENT FORMAL EVALUATION MEETINGS IN
WHICH EMPLOYEES AND EMPLOYERS MEET TO
DISCUSS.
THEART OF GETTING THINGS DONE
THROUGH AND WITH PEOPLE.
 REFERS TO THE TASKS AND ACTIVITIES
INVOLVED IN DIRECTING AN ORGANIZATION
OR ONE OF ITS UNITS: PLANNING,
ORGANIZING, LEADING, AND CONTROLLING.
 THE PROCESS OF REACHING
ORGANIZATIONAL GOALS BY WORKING WITH
AND THROUGH PEOPLE AND OTHER
ORGANIZATIONAL RESOURCES.
 - THE INDIVIDUAL,
RESPONSIBLE FOR DIRECTING
THE EFFORTS AIMED AT
HELPING ORGANIZATIONS
ACHIEVE THEIR GOALS.
A PERSON WHO PLANS,
ORGANIZES, DIRECTS AND
CONTROLS THE ALLOCATION OF
HUMAN, MATERIAL, FINANCIAL,
AND INFORMATION RESOURCES IN
PURSUIT OF THE ORGANIZATION’S
GOALS.
 MANAGERIAL COMPETENCIES?

 COMPETENCY – A COMBINATION OF KNOWLEDGE,

SKILLS, BEHAVIORS, AND ATTITUDES THAT
CONTRIBUTE TO PERSONAL EFFECTIVENESS

 MANAGERIAL COMPETENCIES – SETS OF

KNOWLEDGE, SKILL, BEHAVIORS, AND ATTITUDES
THAT A PERSON NEEDS TO BE EFFECTIVE IN A
WIDE RANGE OF POSITIONS AND VARIOUS TYPES
OF ORGANIZATIONS
 COMMUNICATION
COMPETENCY
PLANNING AND
TEAMWORK
ADMINISTRATION
COMPETENCY
COMPETENCY
MANAGERIAL
EFFECTIVENESS
GLOBAL STRATEGIC
AWARENESS ACTION
COMPETENCY COMPETENCY
SELF-MANAGEMENT
COMPETENCY
NATUREOF
MANAGEMENT
SYSTEMATIC BODY OF
KNOWLEDGE
PRINCIPLES BASED ON
EXPERIMENTATION
UNIVERSAL VALIDITY OF THE
LAWS AND PRINCIPLES
OPERATES FROM THE LEFT
BRAIN
 MANAGEMENT IS A SYSTEMATIC BODY OF
KNOWLEDGE WITH ITS OWN THEORIES AND
PRINCIPLES
 .THE PRINCIPLES OF MANAGEMENT ALSO
EVOLVED THROUGH REPEATED
EXPERIMENTATION. BUT SINCE MANAGEMENT
DEALS WITH HUMANS, THE OUTCOME OF THE
EXPERIMENTS IS SIGNIFICANTLY
UNPREDICTABLE.
 THE PRINCIPLES OF MANAGEMENT DO NOT HAVE
A UNIVERSAL APPLICABILITY AND NEED
MODIFICATION UNDER DIFFERENT
CIRCUMSTANCES.
ART IMPLIES APPLICATION OF
KNOWLEDGE.
 IT IS HIGHLY PERSONALIZED ACTIVITY
TO ACHIEVE DESIRED GOALS.
SINCE, ART VARIES FROM PERSON TO
PERSON IT IS PRONE TO FAILURE.
OPERATES FROM THE RIGHT BRAIN
MANAGEMENT IS ALSO APPLICATION OF
KNOWLEDGE IN DIFFERENT SITUATIONS.
MANAGEMENT IS A HIGHLY PERSONALIZED
ACTIVITY AND VARIES FROM MANAGER TO
MANAGER. THUS, MANAGEMENT IS ALSO
PRONE TO FAILURE
MANAGEMENT IS ACTION-ORIENTED TO
ACHIEVE ORGANIZATIONAL OBJECTIVES.
 BASED ON SPECIAL SKILLS AND
KNOWLEDGE
 FORMAL METHODS OF ACQUIRING THESE
SKILLS.
 AN APEX BODY WHICH ISSUES GUIDELINES
FOR PROFESSIONALIZATION OF THE
OCCUPATION.
 A UNIFORM CODE OF CONDUCT TO
REGULATE THE MEMBERS.
PROVIDING SERVICE FOR A FEE
 SOCIAL RESPONSIBILITY.
 MANAGEMENT IS A PROFESSIONAL
ACTIVITY LIKE DOCTORS AND
LAWYERS.
 ALTHOUGH
EVERY ORGANIZATION TRIES TO
DESIGN THEIR ETHICAL CODES OF
BEHAVIOUR
 INDIVIDUALLY, THERE IS ABSENCE OF
A UNIFORM CODE OF CONDUCT.
 IMPORTANCE OF MANAGEMENT
 MANAGEMENT HELPS TO UTILIZE THE
RESOURCES IN BEST POSSIBLE
MANNER THEREBY REDUCING THE
WASTAGE ENSURING MAXIMUM
POSSIBLE PROFITABILITY.
THIS GIVES BUSINESS A COMPETITIVE
EDGE IN THE MARKET AND ALSO
HELPS IN GROWTH AND EXPANSION OF
BUSINESS.
MANAGEMENT BRINGS ABOUT
AN EFFECTIVE COMMUNICATION
– BOTH UPWARDS AND
DOWNWARDS.
THIS HELPS IN SMOOTH
FUNCTIONING OF THE
ORGANIZATION.
MANAGEMENT KEEPS A TRACK OF THE
CHANGES IN BUSINESS ENVIRONMENT.
THIS HELPS ORGANIZATION TO ADAPT TO
THE CHANGED SITUATIONS OF THE MARKET.
 BRINGING ABOUT CHANGES IN THE
ORGANIZATION, INCLUDING INTRODUCTION
OF NEW TECHNOLOGY, BECOMES EASIER
WITH THE EFFORTS OF THE MANAGERS.
 MANAGEMENT BRINGS ABOUT
UNITY OF DIRECTION IN THE
ORGANIZATION AS IT GUIDES ALL
THE EFFORTS TOWARDS THE
ACHIEVEMENT OF A COMMON
OBJECTIVE.
 THIS HELPS DEVELOP TEAM-SPIRIT
IN THE ORGANIZATION
 IT MOTIVATES EMPLOYEES TO PERFORM THE
ASSIGNED JOB TO THEIR POTENTIAL LEVEL.
 THIS INCREASES PRODUCTIVITY AND
RESULTS IN HIGHER SATISFACTION LEVEL
AMONG THE EMPLOYEES.
 THE EMPLOYEE TURNOVER AND
ABSENTEEISM IS ALSO REDUCED.
 THUS, MANAGEMENT AND WORKERS HAVE
CORDIAL RELATIONSHIP.
MANAGEMENT PROCESS AND GOAL
ATTAINMENT
MANAGEMENT AND ORGANIZATIONAL
RESOURCES
 EVOLUTIONOF MANAGEMENT
THOUGHT
 THE EVOLUTION OF MANAGEMENT THOUGHT IS A
PROCESS THAT STARTED IN THE EARLY DAYS OF MAN.
 IT BEGAN SINCE THE PERIOD MAN SAW THE NEED TO
LIVE IN GROUPS.
 MIGHTY MEN WERE ABLE TO ORGANIZE THE MASSES,
SHARE THEM INTO VARIOUS GROUPS.
 THE SHARING WAS DONE ACCORD TO THE MASSES’
STRENGTH, MENTAL CAPACITIES, AND INTELLIGENCE.
 ARMY
 ROMAN CATHOLIC CHURCH
1.PRE
SCIENTIFIC
MANAGEMENT
THOUGHT
 THE INDUSTRIAL REVOLUTION THAT TOOK PLACE
IN THE 18TH CENTURY HAD A SIGNIFICANT
IMPACT ON MANAGEMENT AS A WHOLE.
 IT CHANGED HOW BUSINESSES, AS WELL AS
INDIVIDUALS, RAISED CAPITAL; ORGANIZE LABOR
AND THE PRODUCTION OF GOODS.
 ENTREPRENEURS HAD ACCESS TO ALL THE
FACTORS OF PRODUCTION SUCH AS LAND, LABOR,
AND CAPITAL.
 THEIRS WAS TO MAKE AN EFFORT TO COMBINE
THESE FACTORS TO ACHIEVE A TARGETED GOAL
SUCCESSFULLY.
 A)PROFESSOR CHARLES BABBAGE – UNITED
KINGDOM (1729 – 1871)
 PROF BABBAGE, A RENOWNED PROFESSOR
IN MATHEMATICS AT CAMBRIDGE
UNIVERSITY DISCOVERED THAT
MANUFACTURERS WERE RELYING ON
GUESSWORK AND SUGGESTIONS AND
URGED THEM TO UTILIZE MATHEMATICS AND
SCIENCE TO BE MORE ACCURATE AND
PRODUCTIVE.
 HEWAS REGARDED AS THE FATHER
OF PERSONNEL MANAGEMENT BECAUSE OF HIS
APPROACH AND FOCUS ON EMPLOYEE WELFARE.
 HE INTRODUCED CO-OPERATION AND TRADE
UNIONS. ROBERT BELIEVED THAT EMPLOYEE
WELFARE COULD DETERMINE THEIR
PERFORMANCE TO A LARGE EXTENT.
 HE ENCOURAGED THE TRAINING OF WORKERS,
EDUCATION FOR THEIR CHILDREN, CANTEENS IN
THE WORKPLACE, SHORTER WORKING HOURS,
AMONG OTHERS.
C)HENRY ROBSON TOWNE –
USA
D)JAMES WATT JUNIOR –
UNITED KINGDOM
E)SEEBOHM ROWNTREE –
UNITED KINGDOM
2.CLASSICAL THEORY
DURING THE CLASSICAL
PERIOD, MANAGEMENT THOUGHT WAS
FOCUSED ON JOB CONTENT,
STANDARDIZATION, THE DIVISION OF LABOR,
AND A SCIENTIFIC APPROACH TOWARDS THE
ORGANIZATION.
 IT ALSO WAS CLOSELY RELATED TO THE
INDUSTRIAL REVOLUTION AS WELL AS THE
RISE OF LARGE-SCALE ORGANIZATIONS
 A)HARRISON
EMERSON
PRINCIPLE OF EFFICIENCY
 B)F.W. TAYLOR
SCIENTIFIC MANAGEMENT
C) HENRY .L. GANTT
 INCORPORATES BENCHMARKS IN
A PROJECT AS A WAY TO COMPLETE
THE PROJECT EFFICIENTLY.
3. NEO CLASSICAL
THEORY
NEO-CLASSICALTHEORY
GAVE MORE PROFOUND
EMPHASIS ON EMPLOYEE
RELATIONSHIPS IN THE
WORK ENVIRONMENT.
A)ELTON MAYO
 PIONEERED THE HUMAN RELATIONS TO
IMPROVE LEVELS OF PRODUCTIVITY AND
SATISFACTION.
 B)CHESTER BARNARD
 HE STATEDFOR EMPLOYEES TO WORK WELL
TOGETHER THEY SHOULD FIT TOGETHER,
WHICH REQUIRES COMPATIBILITY OF
PERSONNEL.
 THIS FITNESS INCLUDES EDUCATION, RACE,
SEX, AGE AND OTHER FACTORS
 HE IS WIDELY ASSOCIATED WITH THE
THEORY OF BOUNDED RATIONALITY
 THIS MEANS THAT INDIVIDUALS DO NOT
MAKE PERFECTLY RATIONAL DECISIONS
 THEY ARE AFFECTED BY BOTH COGNITIVE
LIMITS (THE DIFFICULTY IN OBTAINING
AND PROCESSING ALL THE INFORMATION
NEEDED) AND SOCIAL LIMITS (PERSONAL
AND SOCIAL TIES AMONG INDIVIDUALS)
4.THE BUREAUCRATIC
MODEL
 PROPOSED BY MAX WEBER, A GERMAN
SOCIOLOGIST
 ACCORDING TO HIM, MANAGEMENT MUST
HAVE THE FOLLOWING ATTRIBUTES:
 SPECIALIZATION OF LABOUR
 A FORMAL SET OF RULES AND
REGULATIONS
 WELL-DEFINED HIERARCHY
 IMPERSONALITY IN THE APPLICATION OF
RULES
SCOPE/
FUNCTIONS
OFMANAGEMENT
 MANAGEMENTIS A
CONTINUOUS PROCESS
COMPOSED OF DIFFERENT
FUNCTIONS THAT MANGERS
HAVE TO PERFORM FOR
ATTAINMENT OF DESIRED
GOALS
 P-PLANNING.
O-ORGANISING.
D-DIRECTING.
S-STAFFING.
C-CONTROL
O-ORDER.
R-REPORTING.
B-BUDGETING
DECIDING ON WHERE YOU ARE, WHERE DO YOU WANT TO
GO AND HOW TO GET THERE
PLANNING INVOLVES TASKS THAT MUST BE PERFORMED
TO ATTAIN ORGANIZATIONAL GOALS, OUTLINING HOW THE
TASKS MUST BE PERFORMED, AND INDICATING WHEN
THEY SHOULD BE PERFORMED.
 PLANNING
 DETERMINING ORGANIZATIONAL GOALS AND MEANS
TO REACH THEM
 MANAGERS PLAN FOR THREE REASONS

1. ESTABLISH AN OVERALL DIRECTION FOR THE

ORGANIZATION’S FUTURE
2. IDENTIFY AND COMMIT RESOURCES TO ACHIEVING
GOALS
3. DECIDE WHICH TASKS MUST BE DONE TO REACH
THOSE GOALS
 DECIDING WHERE YOU ARE, WHERE DO U WANT TO GO
AND HOW TO GET THERE
Organizing means assigning the planned tasks to various individuals or
groups within the organization and cresting a mechanism to put plans
into action.
AN ORGANIZATION CHART
IS CALLED ORGANIZATION
HIERARCHY OR
ORGANAGRAM OR
PLANOGRAM
 ORGANIZING

 PROCESS OF DECIDING WHERE DECISIONS WILL BE

MADE, WHO WILL PERFORM WHAT JOBS AND TASKS,
AND WHO WILL REPORT TO WHOM IN THE COMPANY
 INCLUDES CREATING DEPARTMENTS AND JOB
DESCRIPTIONS
LEADING (INFLUENCING) MEANS GUIDING THE
ACTIVITIES OF THE ORGANIZATION MEMBERS IN
APPROPRIATE DIRECTIONS. OBJECTIVE IS TO IMPROVE
PRODUCTIVITY.
 SHOWING THE RIGHT WAY

 GETTING OTHERS TO PERFORM THE

NECESSARY TASKS BY MOTIVATING THEM TO
ACHIEVE THE ORGANIZATION’S GOALS

 CRUCIAL ELEMENT IN ALL FUNCTIONS

CHOOSING THE
PERSON FOR THE
RIGHT JOB.
 CONTROLLING

PROCESS BY WHICH A
PERSON, GROUP, OR
ORGANIZATION
CONSCIOUSLY MONITORS
PERFORMANCE AND TAKES
CORRECTIVE
ACTION.
1. GATHER INFORMATION THAT MEASURES RECENT PERFORMANCE
2. COMPARE PRESENT PERFORMANCE TO PRE-ESTABLISHED
STANDARDS
3. DETERMINE MODIFICATIONS TO MEET PRE-ESTABLISHED
STANDARDS
 SETTING STANDARDS OR
BENCHMARKS
MEASUREMENT OF ACTUAL
PERFORMANCE WITH PRESET
SRANDARDS.
CHECKING FOR DEVIATIONS.
CORRECTIVE ACTION.
ONGOING PROCESS.
DOING THINGS IN
THE RIGHT
SEQUENCE.
SELF DISCIPLINE
 ALSO KNOWN AS
FEEBBACK
THIS ENSURES THAT
INSTRUCTIONS HAVE BEEN
UNDERSTOOD CORRECTLY.
ITS ALSO AN EFFECTIVE
CONTROL TOOL
STUDYOF REVENUE
AND EXPENDITURE.
DECISION-MAKING
INNOVATION
R &D
SCHOOLS OF THOUGHT
 ALLOCATION WORK BASED ON SKILL
LEVEL
 SPECIALIZATION ALLOWS THE
INDIVIDUAL TO BUILD UP
EXPERIENCE, AND TO CONTINUOUSLY
IMPROVE HIS SKILLS.
 THEREBY HE CAN BE MORE
PRODUCTIVE.
 THE RESPONSIBIITY MUST BE
BACKED BY ADEQUATE AUTHORITY
TO COMPLETE THE TASKS
 THE RIGHT TO ISSUE COMMANDS,
ALONG WITH WHICH MUST GO THE
BALANCED RESPONSIBILITY FOR
ITS FUNCTION.
 EMPLOYEES MUST OBEY,
BUT THIS IS TWO-SIDED
 EMPLOYEES WILL ONLY
OBEY ORDERS IF
MANAGEMENT PLAY THEIR
PART BY PROVIDING GOOD
LEADERSHIP.
 EACH WORKER SHOULD
HAVE ONLY ONE BOSS WITH
NO OTHER CONFLICTING
LINES OF COMMAND.
AVOIDS CONFUSION AND
OVERLAPPING OF JOBS
 THERE MUST BE
SYNCHRONISATION BETWEEN
INDIVIDUAL OBJECTIVES,
DEPARTMENTAL OBJECTIVES
AND THE ORGANISATIONAL
OBJECTIVES
 ALL SHOULD WALK AND SPEAK
THE SAME
 MANAGEMENT MUST
SEE THAT THE GOALS
OF THE EMPLOYEE AND
THE ORGANISATION
MUST BE IN SYNCH.
PEOPLE SHOULD BE PAID
ACCORDING TO THEIR
SKILL LEVEL.
INPUT AND OUTPUT
LEVEL SHOULD BE
JUSTIFIED
 REFERS TO THE AMOUNT OF CONTROL OR
POWER
 CENTRALIZATION IMPLIES THAT THE
POWERS ARE CONCENTRATED IN THE HAND
OF ONE PERSON.
 DECENTRALIZATION IMPLIES THAT THE
POWERS ARE DELEGATED WITH THE
NECESSARY AUTHORITY.
 A HIERARCHY IS NECESSARY FOR
UNITY OF DIRECTION.
SCALAR CHAIN REFERS TO THE
NUMBER OF LEVELS IN THE
HIERARCHY FROM THE ULTIMATE
AUTHORITY TO THE LOWEST LEVEL
IN THE ORGANIZATION.
IT HELPS TO CLEARLY DEFINES THE
ROLES AND RESPONSIBILITIES OF
EACH INDIVIDUAL.
 IMPLIES DOING
THINGS IN A CERTAIN
SEQUENCE.
HELPS TO AVOID
WASTAGE OF
MATERIALS AND TIME.
 TREATING EMPLOYEES FAIRLY
IRRESPECTIVE OF GENDER,
CASTE, CREED OR COLOR.
 TAKING CARE OF DIVERSITY
AND INCLUSIONS
 SHOWING COMPASSION TO ALL.
 EMPLOYING THE CONCEPT OF
DIGNITY OF LABOUR.
 THIS REFERS TO THE
FEELING OF SECURITY
AMONG EMPLOYEES.
 INCREASES THE
COMMITMENT AND LOYALTY.
 REDUCES ATTRITION LEVEL.
 ENCOURAGING THE
EMPLOYEES TO EXPRESS
THEIR INNOVATIVENESS AND
CREATIVITY.
 REWARDING THEM
ACCORDINGLY.
 THIS MEANS UNITY IS
STRENGTH.
AN ORGANISATION CULTURE
MUST BE CREATED WHEREIN
THE EMPLOYEES MUST MADE
TO FEEL AS PART OF ONE
FAMILY.
 SCIENTIFIC
MANAGEMENT

FREDERICK W. TAYLOR
 THE FATHER OF SCIENTIFIC MANAGEMENT
– THE 1ST EFFICIENCY EXPERT.
A PHILOSOPHY AND SET OF MANAGEMENT
PRACTICES THAT ARE BASED ON FACT AND
OBSERVATION, NOT ON GUESSWORK
 SCIENTIFIC MANAGEMENT

BELIEVED INCREASED PRODUCTIVITY DEPENDED ON

FINDING WAYS TO MAKE WORKERS MORE EFFICIENT
USED TIME-AND-MOTION STUDIES TO ANALYZE WORK
FLOWS, SUPERVISORY TECHNIQUES, AND WORKER
FATIGUE
USED FUNCTIONAL FOREMANSHIP, A DIVISION OF LABOR
THAT ASSIGNED EIGHT FOREMEN TO EACH WORK AREA
ASSUMED WORKERS MOTIVATED BY MONEY

CONDUCTED AT THE THE HAWTHORNE
PLANT OF WESTERN ELECTRIC LOCATED IN
CHICAGO
 THE STUDY BEGAN IN 1924 BY ISOLATING
TWO GROUPS OF WORKERS IN ORDER TO
EXPERIMENT WITH THE IMPACT OF VARIOUS
INCENTIVES ON THEIR PRODUCTIVITY.
 HAWTHORNE EXPERIMENTS WERE DESIGNED
TO STUDY HOW DIFFERENT ASPECTS OF THE
WORK ENVIRONMENT, SUCH AS LIGHTING,
THE TIMING OF BREAKS, AND THE LENGTH
OF THE WORKDAY, HAD AN ON WORKER
PRODUCTIVITY.
 CAMERAS WERE POSITIONED AND
LIGHTING WAS BRIGHTENED AS WELL
AS DIMMED
 ILLUMINATION EXPERIMENT.
 This experiment was conducted to establish
relationship between output and
illumination.
 RELAY ASSEMBLY TEST ROOM
EXPERIMENT.
 his phase aimed at knowing not only the
impact of illumination on production but also
other factors like length of the working day,
rest hours, and other physical conditions
 INTERVIEWING PROGRAMME.
 The objective of this programme was to make a
systematic study of the employees attitudes which
would reveal the meaning which their “working
situation” has for them.
 BANK WIRING TEST ROOM EXPERIMENT
 The experiment was conducted to study a group of
workers under conditions which were as close as
possible to normal. It was observed that the group
evolved its own production norms for each
individual worker, which was made lower than
those set by the management
 THE DISCOVERY WAS THAT THAT JOB
SATISFACTION INCREASED THROUGH EMPLOYEE
PARTICIPATION IN DECISIONS RATHER THAN
THROUGH SHORT-TERM INCENTIVES.
 EMPLOYEES ARE MOTIVATED FAR MORE BY
RELATIONAL FACTORS SUCH AS ATTENTION AND
CAMARADERIE THAN BY MONETARY REWARDS OR
ENVIRONMENTAL FACTORS, SUCH AS LIGHTING,
HUMIDITY AND MORE.
 THE HAWTHORN STUDIES FOUND THAT THE
OUTPUT WAS IMPROVED MORE DUE TO
PARTICIPATION IN THE DECISION MAKING,
AND SOCIAL RELATIONSHIP AMONG
EMPLOYEES AND NOT DUE TO TO THE
IMPROVEMENT OF IN WORKING CONDITIONS.
EMPLOYEE PRODUCTIVITY COULD BE
ENHANCED THROUGH A POSITIVE
RELATIONSHIP WITH MANAGEMENT.