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PRESENTED BY: Abhishek Singh(1) Kumud Sigdel(27) Kunal Kishore(28) Sakshi Chaudhary(40) Siddharth Arya(46) Subhadeep Sarkar(48) Yamini Dixit(51)


Definition of theory

John Clancys perspective Theory provides A stable focus To communicate efficiently To keep learning


The Scientific Management School Classical Organization Theory School

Neo Classical Theory

System Approach Contingency Approach


Definition : A theory of management that analyses

and synthesizes workflows, with the objective of improving labour productivity.

Other theories

Federick Winslow Taylor

The Development of a true science of management. The scientific selection workers.

The scientific education and development of the worker.

Intimate friendly cooperation between management and labour. Differential rate system

Contributions of scientific management theory
Limitations of Sientific Management Theory

Henry L. Gantt
Emphasis on the motivational factor He originated a charting system for production scheduling, known as Gantt Chart.

Frank and Lillian Gilbreths

Emphasis on the individual Workers welfare and help them to reach their full potential as human workers

Classical Organisation Theory

This theory grew out of the need to find guidelines

for managing such complex organisations as factories. 4 main thinkers contributing to this theory: Henri Fayol Max Weber Mary Parker Follett Chester I. Barnard

Henry Fayol(1841-1925)
He is hailed as the founder of the classical

management theory. He was interested in total organization and focused on management. He considered management as a skill that could be taught once its underlying principles were understood.

Fayols 14 Principles of Management

Division of labour Authority Discipline Unity of Command

Unity of direction Subordfination of individual interest to the

Common Good
Remuneration Centralization

The Hierarchy Order Equity Stability of staff

Initiative Esprit de Corps

(in union there is strength)

Max Weber(1864-1920)
He developed a theory of bureaucratic management He stressed the need for a strictly defined hierarchy

governed by clearly defined regulations and lines of authority. His bureaucratic management model clearly advanced the formation of huge corporations such as Ford.

Mary Parker Follett(1868-1933)

She introduced many new

elements in the framework of classical theory. She focussed on the area of human relations and organizational structure. She was a great believer in the power of the group.

Folletts Holistic model of control took into account

not just individuals and groups, but the effects of such environmental factors as politics, economics and biology.
Follett paved the way for management theory to

include a broader set of relationships.

Chester I. Barnard(1886-1961)
According to Barnard, people

come together in formal organizations to achieve goals they cannot accomplish working alone.

He stressed on the satisfaction

of individual needs along with organizations goals.

Barnard recognized the

importance and universality of informal organization.

According to Barnard, managers should understand

an employees zone of indifference to maintain a balance between individual and organizational purposes. He stressed a lot on the work of executive managers. He described individual worker as the basic strategic factor in an organization.

Neo Classical Theory

Behavioral Science approach

Human Relations Movement Hawthorne Experiments


In 1920s and 1930s the incompleteness of

administrative and scientific movement was felt. The importance of man behind the machine and the social aspects of workers itself was felt. The human relationship theory or the Neo classical theory tried to compensate for the deficiencies of the classical theory modifying it with insights from behavioural science like psychology, sociology and anthropology.

Human Relations Movements

A movement in management thinking and practice that emphasized satisfaction of employees basic needs as key to increase productivity.

Hawthrone Experiments
Hawthorne Experiment during 1924 to 1933

by Elton Mayo and his Harvard Colleagues was an extension of this theory which was conducted in Western electrics Hawthorne plant near Chicago.
Hawthorne Effect: The possibility that individuals

singled out for a study may improve their Performance simply because of the added attention they receive from the researchers, rather than because of any specific factors being tested.

Man is not motivated by money alone, a healthy

social climate is necessary.

Groups have more influence on workers rather than

the organisation rules.

Friendly supervision ensures good results, better



Mayo derived this conclusion on the basis of a small

set of employees.
The experiments lacked a scientific

basis like choice of employees, work the working environment.

Behavioural Sciences Approach

The behavioural science approach came as natural

continuation from the Hawthorne experiments. Behavioural science approach included psychology, sociology, economics and anthropology. Abraham Maslow was the pioneer who developed hierarchy of human needs later many scientists came with their opinions.

Basic Philosophy of behavioural science approach

People do not inherently dislike work, if they have

helped establish objectives, they will want to achieve them.

Most people can exercise a great deal more self

direction, self control and creativity then required in their current job.
The managers basis job is to use the untapped

human potential in the service of the organisation.


Most employees have five basic needs namely

physiological, safety, social, self esteem and selfactualisation.

First three of these are low-order needs and the last

two are high order needs help to in leash the latent talent and creative skill of the employees.

Systems Approach
System : A system is defined by different elements

that are correlated and its structure always has a specific order.
A simple reunion of elements, without a way of

organizing them, does not represent a system.

System Approach : The System Approach to

management views the organization as a unified, purposeful system composed of interrelated parts.
System theory tells us that the activity of any

segment of an organization affects, in varing degrees, the activity of every other segment.

Key Concept of System Approach


The Flow and Feedback in an Open System

External Environment

Human Capital Land Building Technology Information

Transformation Or Conversion Process

Goods Services Other


Contingency Approach
What is Contingency ?
A Contingency is an event that might happen.

It is not certain that it will happen, but there is

possibility that it might. Good managers need to consider contingencies when making plan.

Contingency Approach
Contingency Theory : It all depends on the situation. Sometimes called the Situational Approach.

Contingency Approach
States that there is no one best way to manage

organization. Because what works for one organization may not work for another. Situational characteristics (Contingencies) differ. Manager need to understand the key contingencies that determine the most effective management practices in a given situation.

It is the managers task to identify which technique

In a particular situation Under particular circumstances And at a particular time

Best contribute to attainment of management goals.

How it is different
The earlier approaches (classical, behavioural etc)

are considered universal perspective because they tried to identify the one best way to manage organisations.
In contrast, contingency theory suggests universal

theories cannot be applied to organisations because each organisation is unique.

Features of Contingency Approach

Management is entirely situational. There is no best way of doing anything. Manager needs to adapt himself to the

It is a kind of if & then approach.

It is a practically suited.

Management policies and procedures should

respond to environment.
Managers should understand that there is no best

way of managing. It dispels the universal validity of principles.



Reactive but not Proactive

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