Module II

DR. SHWETA DANI

Module II
• Classical Management Approaches: A. Scientific Management
(Taylorism and New Taylorism)
• Administrative Management (Henry Fayol’s 14 principles)
• Neo Classical theories: Human Relations School - The Hawthrone
studies (The 4 basic experiments)
• Modern Approaches:
(a) Quantitative Approach
(b) The Systems Approach
(c) Contingency Approach
Learning Outcome

• Students will realize that management is not “one-approach” but it

is more about integration of multiple approaches and perspectives
that help in arriving at a decision. In addition, students understand
that the theory is not static but more dynamic, which continuously
has evolved over the years.
SCIENTIFIC MANAGEMENT

(F.W. TAYLOR)
Scientific Management:
1. Introduced by Frederick W. Taylor in USA in the beginning of 20th century.
2. about how to increase the efficiency of people.
3. Scientific He carried experiments Management was concerned with improving the
operational efficiency at the shop –floor level.

. According to Taylor “Scientific management is concerned with knowing exactly what you
want men to do and then see in that they do it in the best and cheapest way”.

Elements and Tools of Scientific Management:

Taylor conducted various experiments at his work-places to find out how human beings
could be made more efficient by standardizing the work and better method of doing the
work.
Taylor’s experiments have provided the following features of scientific
management:
• Separation of Planning and Doing
• Functional Foremanship
• Time study
• Motion study
• Fatigue study
• Standardisation
• Scientific Selection and Training of workers
• Financial Incentives
• Economy
• Mental Revolution
Principles of Scientific Management:

1. Replacing Rule of Thumb with Science

2. Harmony not Discord

3. Cooperation, not Individualism

4. Development of Workers
Evaluation of Taylor

1. His idea of functional foremanship violets the fundamental principle of

organization i.e. Unity of Command which holds that one man should have
only one boss.

2. The concept of “Mental Revolution” never materialized but in very few cases,
because this concept is based on the notion that people are primarily
motivated by financial incentives.

In fact, man has different social and psychological needs, have to be fulfilled
before getting financial satisfaction, because man is a social animal and his
work behavior is generally guided by group norms and expectations.
ADMINISTRATIVE THEORY
(HENRI FAYOL)
1916
1. Authority and Responsibility are Related: Authority flows from responsibility. Managers
who exercise authority over others should assume responsibility for decisions as well as
for results.

2. Unity of Command: One employee should have only one boss and receive instructions
from him only.

3. Unity of Direction: There should be one head and one plan for a group of activities
having the same objective. All related activities should be directed by one person.

4. Order : Right person on the right job and everything in its proper place.

5. Division of Work: Specialisation of functions will yield maximisation of efficiency in

production e.g. in assembly lines
6. Scalar Chain of Command: Chain of command is the chain of superiors and
subordinates (relationships) running throughout the organisation from top
to bottom.
According to Fayol, when the scalar chain of command is blocking the
smooth and efficient functioning of the organisation, gangplanks should be
thrown. Fayol says that gangplank allow F and P to communicate directly in
emergencies without weakening the chain of command.
A
B L
C M

D N

E O

F P

Scalar Chain of command

Gangplank
7. Discipline: Members of an organisation are required to perform their functions and
conduct themselves in relation to others, according to rules, norms and customs.

8. Subordination of Individual Interest to General Interest: Fayol says that the interest of
the organisation is above the interests of the individual and the group.

9. Remuneration: Fair and equitable remuneration should be given to employees.

Differentials in remuneration should be on the basis of job differentials (in terms of qualities
of the employee, responsibility, working conditions and difficulty of the job).
10. Centralisation: Fayol said “In every organism…..sensations converge towards the brain
or directive part , and from the brain or directive part orders are sent out which set all parts
of the organism in movement”. This term refers to the degree to which subordinates are
involved in decision making.
11. Equity: Subordinates should be treated with justice and
kindliness.
12. Stability of Tenure of Personnel: Policies of the organisation
should provide a sense of reasonable job security.
According to Fayol “ a mediocre manager who stays is more
preferable in comparison to outstanding managers who come
and go”.
13. Initiative: It focuses on the ability, attitude and resourcefulness to
act without prompting from others.
14. Esprit de Corps (Cohesiveness and Team Spirit): Cohesiveness
and team spirit should be encouraged among employees.
The Hawthorne experiments

• Studies undertaken at Western Electric Company’s Hawthorne Plant in Chicago

between 1924-1932

• Initiated by the company’s officials and later overseen by Harvard professor

Elton Mayo

• The Hawthorne researchers began by examining the relation between the

physical environment and productivity.

• Only after these experiments, Organisational Behavior was given importance as

a separate discipline in the field of Management
Experiments 1- Illumination Experiments (1924-27)

• began illumination experiments with various groups of workers

• manipulated the intensity of illumination upward and downward, while at the
same time noting changes in group output
• results varied, but in no case was the increase or decrease in output in proportion to
the increase or decrease in illumination
• so the researchers introduced a controlled group
• experimental group was presented with varying intensity of illumination, whereas
the controlled unit worked under a constant illumination intensity
Result
• As the light level was increased in the experimental unit, output rose for both the
control and the experimental group.
• But, surprisingly, as the light level was dropped in the experimental group,
productivity continued to increase in both groups.
• In fact, a productivity decrease was observed in the experimental group only
when the light intensity had been reduced to that of moonlight.
Conclusion
• The researchers concluded that illumination intensity was only a minor
influence among the many influences that affected an employee’s productivity,
but they could not explain the behavior they had witnessed.
2.Relay Assembly Test Room Experiment (1927-28)
• This experiment was conducted in the relay assembly test room at Western
Electric Company.
• A small group of women was isolated from the main work group so that their
behavior could be more carefully observed.
• The members of this group went about their job of assembling small telephone
relays in a room laid out similarly to their normal department.
• In the room of this group, a research assistant was placed who acted as an
observer-keeping records of output, rejects, working conditions, and a daily
log sheet describing everything that happened.
 
Results
• After some years of observations, it was found that this small group’s output
increased steadily.
• The number of personal absences and those due to sickness were approximately
one-third of those recorded by women in the regular production department.
 Conclusions
• Researchers concluded that this group’s performance was significantly influenced
by its status of being a “special” group.
• The women in the test room thought that being in the experimental group was
fun, that they were in sort of an elite group, and that management was concerned
with their interest by engaging in such experimentation.
Note: Workers in both the illumination and assembly-test-room experiments were
reacting to the increased attention they were receiving.
Bank Wiring Observation Room Experiment
• This experiment was conducted in Bank wiring observation room
• It was introduced to ascertain the effect of a sophisticated wage incentive plan (giving
wages according to the output)
• The assumption behind this experiment was that individual workers would maximize
their productivity when they saw that it was directly related to economic rewards
Results
• Employees did not individually maximize their outputs
• Rather, it was controlled by a group norm, which was informally decided by the
group members
Conclusions
• Interviews determined that the group was operating well below its capability and was
leveling output in order to protect itself
• Members were afraid that if they significantly increased their output, the unit
incentive rate would be cut, the expected daily output would be increased, layoffs
might occur, or slower workers would be punished. So the group established its idea
of a fair output-neither too much nor too little
• They helped each other to maintain the level of their reports
• The group established some “don’ts” for members like don’t work too much or too
little, and don’t create any hurdles for any of your peers
• To enforce these norms, the employees established some methods (like name calling,
physical punches to the upper arm etc.) to correct the behavior of members who
violated the group’s norms
•  
Modern Approaches

• Quantitative Approach
• System Approach
• Contingency Approach
 Quantitative Approach

• This approach tended to concentrate on the development of

solutions to more complex problems. It is based on the mathematical
modelling.
• A model is a theoretical representation of a real life situation, or in
this case, a real life problem. It shows the factors giving rise to the
problem and their inter-relationship. Various alternative solutions to
the problem are simulated and computers are used to determine the
best solution.
• It also placed emphasis on the development of Management
Information Systems (MIS).
• The greatest contribution of the Quantitative theory was the use of
computers to solve complex problems using modelling and simulation
techniques.
• The greatest limitation is that most managers feel that this management
science places too much emphasis on complicated mathematical formulae
which they may be unable to fully comprehend.
The System Approach
• This approach offers more insight into management. It views the
management process as a system.
• A system is an interrelated set of components functioning as a whole.
The organisation is thus viewed as a system, consisting of inputs from
the environment in the form of material, human and financial inputs.
Thus, the activity of each of the components of a system (called
subsystems) has an effect on the activities of the other components.
• Management has to view an organisation as an open system – meaning
a system that interacts with the environment- and have to
communicate with other employees, departments, as well as
representatives of other organisations
• The major contribution of this systems approach is that, it highlights the
dynamic and interrelationship nature or organisational activities and thus,
the enormity of the management task.
• It may also be said to be a basis for conceptual thinking for general
managers who need to have an overview of organisational objectives it
also equips the manager with a unique skill to understand how a given
variable is composed, and hence, it gives rise to a holistic view of the
organisation.
• The major weakness is that: as this is an evolving field of study, it may
not offer conclusive insights into the best managerial practice but
generalise i.e. applies to all schools
 Contingency Approach
1. The contingency approach is the latest approach to the existing management
approaches.
2. Management problems are different under different situations and require to
be tackled as per the demand of the situation.
3. The manager’s task was to identify which technique will in a particular
situation and under certain circumstances best contribute to the achievement
of organizational goals.

4. The contingency approach prepares managers for the unanticipated problems

relating to the application of other management techniques
 Features of Contingency Approach

1. The contingency approach does not accept the universality of management theory. It
stresses that there is no one best way of doing things.
2. Managerial policies and practices to be effective, must adjust to changes in environment.
3. It should improve diagnostic skills so as to anticipate and ready for environmental
changes.
4. Managers should have sufficient human relations skill to accommodate and stabilise
change.
5. It should apply the contingency model in designing the organization, developing its
information and communication system, following proper leadership styles and preparing
suitable objectives, policies, strategies, programmes and practices