Management processes

Nature of Management Process

Management process can be treated as dynamic in which events and interrelationships must be seen as dynamic flexible and continuous and must be considered as a whole Thus management as a process involves a number of activities and assumes that the totality of what managers do can be divided into a set of interrelated activities

What is a Manager

Someone whose primary responsibility is to carry out the management process

Someone who plans and makes decisions organizes leads and controls human financial physical and information resources

Kinds of Managers by Level and Area

Kinds of Managers by Level

Top Managers The relatively small group of executives who manage the

organizationrsquos overall goals strategy and operating policies Middle Managers

Largest group of managers in organizations Implement top managementrsquos policies and plans Supervise and coordinate lower-level managersrsquo activities

First-Line Managers Managers who supervise and coordinate the activities of

operating employees

Kinds of Managers by Area

Marketing Managers Work in areas related to getting consumers and clients to buy the

organizationrsquos products or services Financial Managers

Deal primarily with an organizationrsquos financial resources Operations Managers

Concerned with creating and managing the systems that create organizationrsquos products and services

Kinds of Managers by Area (contrsquod) Human Resource Managers

Involved in human resource processes Planning recruiting and selection training and development

designing compensation and benefit systems formulating performance appraisal systems

Administrative Managers Serve as generalists in functional areas and are not associated

with any particular management specialty Other Kinds of Managers

Assigned as specialists in positions directly related to the needs of the organization

Management in Organizations

Inputs from the environmentbull Human resourcesbull Financial resourcesbull Physical resourcesbull Information resources

Planningand decision

making

Leading

Organizing

Controlling

Goals attainedbull Efficientlybull Effectively

Figure 12The Management Process

Skills and the Manager

Fundamental Fundamental Management Management

SkillsSkills

Fundamental Fundamental Management Management

SkillsSkills

Technical SkillsTechnical Skills

Interpersonal SkillsInterpersonal Skills

Conceptual SkillsConceptual Skills

Diagnostic SkillsDiagnostic Skills

Communication SkillsCommunication Skills

Decision-Making SkillsDecision-Making Skills

Time-Management SkillsTime-Management Skills

Fundamental Management Skills Technical

Skills necessary to accomplish or understand the specific kind of work being done in an organization

Interpersonal The ability to communicate with understand and

motivate both individuals and groups Conceptual

The managerrsquos ability to think in the abstract Diagnostic

The managerrsquos ability to visualize the most appropriate response to a situation

Fundamental Management Skills (contrsquod) Communication

The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others

Decision-Making The managerrsquos ability to recognize and define

problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities

Time-Management The managerrsquos ability to prioritize work to work

efficiently and to delegate appropriately

Management Science or Art The Science of Management

Assumes that problems can be approached using rational logical objective and systematic ways

Requires technical diagnostic and decision-making skills and techniques to solve problems

The Art of Management Decisions are made and problems solved using a

blend of intuition experience instinct and personal insights

Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activities

Sources of Management Skills

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Nature of Management Process

Management process can be treated as dynamic in which events and interrelationships must be seen as dynamic flexible and continuous and must be considered as a whole Thus management as a process involves a number of activities and assumes that the totality of what managers do can be divided into a set of interrelated activities

What is a Manager

Someone whose primary responsibility is to carry out the management process

Someone who plans and makes decisions organizes leads and controls human financial physical and information resources

Kinds of Managers by Level and Area

Kinds of Managers by Level

Top Managers The relatively small group of executives who manage the

organizationrsquos overall goals strategy and operating policies Middle Managers

Largest group of managers in organizations Implement top managementrsquos policies and plans Supervise and coordinate lower-level managersrsquo activities

First-Line Managers Managers who supervise and coordinate the activities of

operating employees

Kinds of Managers by Area

Marketing Managers Work in areas related to getting consumers and clients to buy the

organizationrsquos products or services Financial Managers

Deal primarily with an organizationrsquos financial resources Operations Managers

Concerned with creating and managing the systems that create organizationrsquos products and services

Kinds of Managers by Area (contrsquod) Human Resource Managers

Involved in human resource processes Planning recruiting and selection training and development

designing compensation and benefit systems formulating performance appraisal systems

Administrative Managers Serve as generalists in functional areas and are not associated

with any particular management specialty Other Kinds of Managers

Assigned as specialists in positions directly related to the needs of the organization

Management in Organizations

Inputs from the environmentbull Human resourcesbull Financial resourcesbull Physical resourcesbull Information resources

Planningand decision

making

Leading

Organizing

Controlling

Goals attainedbull Efficientlybull Effectively

Figure 12The Management Process

Skills and the Manager

Fundamental Fundamental Management Management

SkillsSkills

Fundamental Fundamental Management Management

SkillsSkills

Technical SkillsTechnical Skills

Interpersonal SkillsInterpersonal Skills

Conceptual SkillsConceptual Skills

Diagnostic SkillsDiagnostic Skills

Communication SkillsCommunication Skills

Decision-Making SkillsDecision-Making Skills

Time-Management SkillsTime-Management Skills

Fundamental Management Skills Technical

Skills necessary to accomplish or understand the specific kind of work being done in an organization

Interpersonal The ability to communicate with understand and

motivate both individuals and groups Conceptual

The managerrsquos ability to think in the abstract Diagnostic

The managerrsquos ability to visualize the most appropriate response to a situation

Fundamental Management Skills (contrsquod) Communication

The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others

Decision-Making The managerrsquos ability to recognize and define

problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities

Time-Management The managerrsquos ability to prioritize work to work

efficiently and to delegate appropriately

Management Science or Art The Science of Management

Assumes that problems can be approached using rational logical objective and systematic ways

Requires technical diagnostic and decision-making skills and techniques to solve problems

The Art of Management Decisions are made and problems solved using a

blend of intuition experience instinct and personal insights

Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activities

Sources of Management Skills

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

What is a Manager

Someone whose primary responsibility is to carry out the management process

Someone who plans and makes decisions organizes leads and controls human financial physical and information resources

Kinds of Managers by Level and Area

Kinds of Managers by Level

Top Managers The relatively small group of executives who manage the

organizationrsquos overall goals strategy and operating policies Middle Managers

Largest group of managers in organizations Implement top managementrsquos policies and plans Supervise and coordinate lower-level managersrsquo activities

First-Line Managers Managers who supervise and coordinate the activities of

operating employees

Kinds of Managers by Area

Marketing Managers Work in areas related to getting consumers and clients to buy the

organizationrsquos products or services Financial Managers

Deal primarily with an organizationrsquos financial resources Operations Managers

Concerned with creating and managing the systems that create organizationrsquos products and services

Kinds of Managers by Area (contrsquod) Human Resource Managers

Involved in human resource processes Planning recruiting and selection training and development

designing compensation and benefit systems formulating performance appraisal systems

Administrative Managers Serve as generalists in functional areas and are not associated

with any particular management specialty Other Kinds of Managers

Assigned as specialists in positions directly related to the needs of the organization

Management in Organizations

Inputs from the environmentbull Human resourcesbull Financial resourcesbull Physical resourcesbull Information resources

Planningand decision

making

Leading

Organizing

Controlling

Goals attainedbull Efficientlybull Effectively

Figure 12The Management Process

Skills and the Manager

Fundamental Fundamental Management Management

SkillsSkills

Fundamental Fundamental Management Management

SkillsSkills

Technical SkillsTechnical Skills

Interpersonal SkillsInterpersonal Skills

Conceptual SkillsConceptual Skills

Diagnostic SkillsDiagnostic Skills

Communication SkillsCommunication Skills

Decision-Making SkillsDecision-Making Skills

Time-Management SkillsTime-Management Skills

Fundamental Management Skills Technical

Skills necessary to accomplish or understand the specific kind of work being done in an organization

Interpersonal The ability to communicate with understand and

motivate both individuals and groups Conceptual

The managerrsquos ability to think in the abstract Diagnostic

The managerrsquos ability to visualize the most appropriate response to a situation

Fundamental Management Skills (contrsquod) Communication

The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others

Decision-Making The managerrsquos ability to recognize and define

problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities

Time-Management The managerrsquos ability to prioritize work to work

efficiently and to delegate appropriately

Management Science or Art The Science of Management

Assumes that problems can be approached using rational logical objective and systematic ways

Requires technical diagnostic and decision-making skills and techniques to solve problems

The Art of Management Decisions are made and problems solved using a

blend of intuition experience instinct and personal insights

Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activities

Sources of Management Skills

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Kinds of Managers by Level and Area

Kinds of Managers by Level

Top Managers The relatively small group of executives who manage the

organizationrsquos overall goals strategy and operating policies Middle Managers

Largest group of managers in organizations Implement top managementrsquos policies and plans Supervise and coordinate lower-level managersrsquo activities

First-Line Managers Managers who supervise and coordinate the activities of

operating employees

Kinds of Managers by Area

Marketing Managers Work in areas related to getting consumers and clients to buy the

organizationrsquos products or services Financial Managers

Deal primarily with an organizationrsquos financial resources Operations Managers

Concerned with creating and managing the systems that create organizationrsquos products and services

Kinds of Managers by Area (contrsquod) Human Resource Managers

Involved in human resource processes Planning recruiting and selection training and development

designing compensation and benefit systems formulating performance appraisal systems

Administrative Managers Serve as generalists in functional areas and are not associated

with any particular management specialty Other Kinds of Managers

Assigned as specialists in positions directly related to the needs of the organization

Management in Organizations

Inputs from the environmentbull Human resourcesbull Financial resourcesbull Physical resourcesbull Information resources

Planningand decision

making

Leading

Organizing

Controlling

Goals attainedbull Efficientlybull Effectively

Figure 12The Management Process

Skills and the Manager

Fundamental Fundamental Management Management

SkillsSkills

Fundamental Fundamental Management Management

SkillsSkills

Technical SkillsTechnical Skills

Interpersonal SkillsInterpersonal Skills

Conceptual SkillsConceptual Skills

Diagnostic SkillsDiagnostic Skills

Communication SkillsCommunication Skills

Decision-Making SkillsDecision-Making Skills

Time-Management SkillsTime-Management Skills

Fundamental Management Skills Technical

Skills necessary to accomplish or understand the specific kind of work being done in an organization

Interpersonal The ability to communicate with understand and

motivate both individuals and groups Conceptual

The managerrsquos ability to think in the abstract Diagnostic

The managerrsquos ability to visualize the most appropriate response to a situation

Fundamental Management Skills (contrsquod) Communication

The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others

Decision-Making The managerrsquos ability to recognize and define

problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities

Time-Management The managerrsquos ability to prioritize work to work

efficiently and to delegate appropriately

Management Science or Art The Science of Management

Assumes that problems can be approached using rational logical objective and systematic ways

Requires technical diagnostic and decision-making skills and techniques to solve problems

The Art of Management Decisions are made and problems solved using a

blend of intuition experience instinct and personal insights

Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activities

Sources of Management Skills

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Kinds of Managers by Level

Top Managers The relatively small group of executives who manage the

organizationrsquos overall goals strategy and operating policies Middle Managers

Largest group of managers in organizations Implement top managementrsquos policies and plans Supervise and coordinate lower-level managersrsquo activities

First-Line Managers Managers who supervise and coordinate the activities of

operating employees

Kinds of Managers by Area

Marketing Managers Work in areas related to getting consumers and clients to buy the

organizationrsquos products or services Financial Managers

Deal primarily with an organizationrsquos financial resources Operations Managers

Concerned with creating and managing the systems that create organizationrsquos products and services

Kinds of Managers by Area (contrsquod) Human Resource Managers

Involved in human resource processes Planning recruiting and selection training and development

designing compensation and benefit systems formulating performance appraisal systems

Administrative Managers Serve as generalists in functional areas and are not associated

with any particular management specialty Other Kinds of Managers

Assigned as specialists in positions directly related to the needs of the organization

Management in Organizations

Inputs from the environmentbull Human resourcesbull Financial resourcesbull Physical resourcesbull Information resources

Planningand decision

making

Leading

Organizing

Controlling

Goals attainedbull Efficientlybull Effectively

Figure 12The Management Process

Skills and the Manager

Fundamental Fundamental Management Management

SkillsSkills

Fundamental Fundamental Management Management

SkillsSkills

Technical SkillsTechnical Skills

Interpersonal SkillsInterpersonal Skills

Conceptual SkillsConceptual Skills

Diagnostic SkillsDiagnostic Skills

Communication SkillsCommunication Skills

Decision-Making SkillsDecision-Making Skills

Time-Management SkillsTime-Management Skills

Fundamental Management Skills Technical

Skills necessary to accomplish or understand the specific kind of work being done in an organization

Interpersonal The ability to communicate with understand and

motivate both individuals and groups Conceptual

The managerrsquos ability to think in the abstract Diagnostic

The managerrsquos ability to visualize the most appropriate response to a situation

Fundamental Management Skills (contrsquod) Communication

The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others

Decision-Making The managerrsquos ability to recognize and define

problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities

Time-Management The managerrsquos ability to prioritize work to work

efficiently and to delegate appropriately

Management Science or Art The Science of Management

Assumes that problems can be approached using rational logical objective and systematic ways

Requires technical diagnostic and decision-making skills and techniques to solve problems

The Art of Management Decisions are made and problems solved using a

blend of intuition experience instinct and personal insights

Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activities

Sources of Management Skills

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Kinds of Managers by Area

Marketing Managers Work in areas related to getting consumers and clients to buy the

organizationrsquos products or services Financial Managers

Deal primarily with an organizationrsquos financial resources Operations Managers

Concerned with creating and managing the systems that create organizationrsquos products and services

Kinds of Managers by Area (contrsquod) Human Resource Managers

Involved in human resource processes Planning recruiting and selection training and development

designing compensation and benefit systems formulating performance appraisal systems

Administrative Managers Serve as generalists in functional areas and are not associated

with any particular management specialty Other Kinds of Managers

Assigned as specialists in positions directly related to the needs of the organization

Management in Organizations

Inputs from the environmentbull Human resourcesbull Financial resourcesbull Physical resourcesbull Information resources

Planningand decision

making

Leading

Organizing

Controlling

Goals attainedbull Efficientlybull Effectively

Figure 12The Management Process

Skills and the Manager

Fundamental Fundamental Management Management

SkillsSkills

Fundamental Fundamental Management Management

SkillsSkills

Technical SkillsTechnical Skills

Interpersonal SkillsInterpersonal Skills

Conceptual SkillsConceptual Skills

Diagnostic SkillsDiagnostic Skills

Communication SkillsCommunication Skills

Decision-Making SkillsDecision-Making Skills

Time-Management SkillsTime-Management Skills

Fundamental Management Skills Technical

Skills necessary to accomplish or understand the specific kind of work being done in an organization

Interpersonal The ability to communicate with understand and

motivate both individuals and groups Conceptual

The managerrsquos ability to think in the abstract Diagnostic

The managerrsquos ability to visualize the most appropriate response to a situation

Fundamental Management Skills (contrsquod) Communication

The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others

Decision-Making The managerrsquos ability to recognize and define

problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities

Time-Management The managerrsquos ability to prioritize work to work

efficiently and to delegate appropriately

Management Science or Art The Science of Management

Assumes that problems can be approached using rational logical objective and systematic ways

Requires technical diagnostic and decision-making skills and techniques to solve problems

The Art of Management Decisions are made and problems solved using a

blend of intuition experience instinct and personal insights

Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activities

Sources of Management Skills

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Kinds of Managers by Area (contrsquod) Human Resource Managers

Involved in human resource processes Planning recruiting and selection training and development

designing compensation and benefit systems formulating performance appraisal systems

Administrative Managers Serve as generalists in functional areas and are not associated

with any particular management specialty Other Kinds of Managers

Assigned as specialists in positions directly related to the needs of the organization

Management in Organizations

Inputs from the environmentbull Human resourcesbull Financial resourcesbull Physical resourcesbull Information resources

Planningand decision

making

Leading

Organizing

Controlling

Goals attainedbull Efficientlybull Effectively

Figure 12The Management Process

Skills and the Manager

Fundamental Fundamental Management Management

SkillsSkills

Fundamental Fundamental Management Management

SkillsSkills

Technical SkillsTechnical Skills

Interpersonal SkillsInterpersonal Skills

Conceptual SkillsConceptual Skills

Diagnostic SkillsDiagnostic Skills

Communication SkillsCommunication Skills

Decision-Making SkillsDecision-Making Skills

Time-Management SkillsTime-Management Skills

Fundamental Management Skills Technical

Skills necessary to accomplish or understand the specific kind of work being done in an organization

Interpersonal The ability to communicate with understand and

motivate both individuals and groups Conceptual

The managerrsquos ability to think in the abstract Diagnostic

The managerrsquos ability to visualize the most appropriate response to a situation

Fundamental Management Skills (contrsquod) Communication

The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others

Decision-Making The managerrsquos ability to recognize and define

problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities

Time-Management The managerrsquos ability to prioritize work to work

efficiently and to delegate appropriately

Management Science or Art The Science of Management

Assumes that problems can be approached using rational logical objective and systematic ways

Requires technical diagnostic and decision-making skills and techniques to solve problems

The Art of Management Decisions are made and problems solved using a

blend of intuition experience instinct and personal insights

Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activities

Sources of Management Skills

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Management in Organizations

Inputs from the environmentbull Human resourcesbull Financial resourcesbull Physical resourcesbull Information resources

Planningand decision

making

Leading

Organizing

Controlling

Goals attainedbull Efficientlybull Effectively

Figure 12The Management Process

Skills and the Manager

Fundamental Fundamental Management Management

SkillsSkills

Fundamental Fundamental Management Management

SkillsSkills

Technical SkillsTechnical Skills

Interpersonal SkillsInterpersonal Skills

Conceptual SkillsConceptual Skills

Diagnostic SkillsDiagnostic Skills

Communication SkillsCommunication Skills

Decision-Making SkillsDecision-Making Skills

Time-Management SkillsTime-Management Skills

Fundamental Management Skills Technical

Skills necessary to accomplish or understand the specific kind of work being done in an organization

Interpersonal The ability to communicate with understand and

motivate both individuals and groups Conceptual

The managerrsquos ability to think in the abstract Diagnostic

The managerrsquos ability to visualize the most appropriate response to a situation

Fundamental Management Skills (contrsquod) Communication

The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others

Decision-Making The managerrsquos ability to recognize and define

problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities

Time-Management The managerrsquos ability to prioritize work to work

efficiently and to delegate appropriately

Management Science or Art The Science of Management

Assumes that problems can be approached using rational logical objective and systematic ways

Requires technical diagnostic and decision-making skills and techniques to solve problems

The Art of Management Decisions are made and problems solved using a

blend of intuition experience instinct and personal insights

Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activities

Sources of Management Skills

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Figure 12The Management Process

Skills and the Manager

Fundamental Fundamental Management Management

SkillsSkills

Fundamental Fundamental Management Management

SkillsSkills

Technical SkillsTechnical Skills

Interpersonal SkillsInterpersonal Skills

Conceptual SkillsConceptual Skills

Diagnostic SkillsDiagnostic Skills

Communication SkillsCommunication Skills

Decision-Making SkillsDecision-Making Skills

Time-Management SkillsTime-Management Skills

Fundamental Management Skills Technical

Skills necessary to accomplish or understand the specific kind of work being done in an organization

Interpersonal The ability to communicate with understand and

motivate both individuals and groups Conceptual

The managerrsquos ability to think in the abstract Diagnostic

The managerrsquos ability to visualize the most appropriate response to a situation

Fundamental Management Skills (contrsquod) Communication

The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others

Decision-Making The managerrsquos ability to recognize and define

problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities

Time-Management The managerrsquos ability to prioritize work to work

efficiently and to delegate appropriately

Management Science or Art The Science of Management

Assumes that problems can be approached using rational logical objective and systematic ways

Requires technical diagnostic and decision-making skills and techniques to solve problems

The Art of Management Decisions are made and problems solved using a

blend of intuition experience instinct and personal insights

Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activities

Sources of Management Skills

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Skills and the Manager

Fundamental Fundamental Management Management

SkillsSkills

Fundamental Fundamental Management Management

SkillsSkills

Technical SkillsTechnical Skills

Interpersonal SkillsInterpersonal Skills

Conceptual SkillsConceptual Skills

Diagnostic SkillsDiagnostic Skills

Communication SkillsCommunication Skills

Decision-Making SkillsDecision-Making Skills

Time-Management SkillsTime-Management Skills

Fundamental Management Skills Technical

Skills necessary to accomplish or understand the specific kind of work being done in an organization

Interpersonal The ability to communicate with understand and

motivate both individuals and groups Conceptual

The managerrsquos ability to think in the abstract Diagnostic

The managerrsquos ability to visualize the most appropriate response to a situation

Fundamental Management Skills (contrsquod) Communication

The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others

Decision-Making The managerrsquos ability to recognize and define

problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities

Time-Management The managerrsquos ability to prioritize work to work

efficiently and to delegate appropriately

Management Science or Art The Science of Management

Assumes that problems can be approached using rational logical objective and systematic ways

Requires technical diagnostic and decision-making skills and techniques to solve problems

The Art of Management Decisions are made and problems solved using a

blend of intuition experience instinct and personal insights

Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activities

Sources of Management Skills

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Fundamental Management Skills Technical

Skills necessary to accomplish or understand the specific kind of work being done in an organization

Interpersonal The ability to communicate with understand and

motivate both individuals and groups Conceptual

The managerrsquos ability to think in the abstract Diagnostic

The managerrsquos ability to visualize the most appropriate response to a situation

Fundamental Management Skills (contrsquod) Communication

The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others

Decision-Making The managerrsquos ability to recognize and define

problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities

Time-Management The managerrsquos ability to prioritize work to work

efficiently and to delegate appropriately

Management Science or Art The Science of Management

Assumes that problems can be approached using rational logical objective and systematic ways

Requires technical diagnostic and decision-making skills and techniques to solve problems

The Art of Management Decisions are made and problems solved using a

blend of intuition experience instinct and personal insights

Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activities

Sources of Management Skills

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Fundamental Management Skills (contrsquod) Communication

The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others

Decision-Making The managerrsquos ability to recognize and define

problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities

Time-Management The managerrsquos ability to prioritize work to work

efficiently and to delegate appropriately

Management Science or Art The Science of Management

Assumes that problems can be approached using rational logical objective and systematic ways

Requires technical diagnostic and decision-making skills and techniques to solve problems

The Art of Management Decisions are made and problems solved using a

blend of intuition experience instinct and personal insights

Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activities

Sources of Management Skills

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Management Science or Art The Science of Management

Assumes that problems can be approached using rational logical objective and systematic ways

Requires technical diagnostic and decision-making skills and techniques to solve problems

The Art of Management Decisions are made and problems solved using a

blend of intuition experience instinct and personal insights

Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activities

Sources of Management Skills

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Sources of Management Skills

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Management Roles

Interpersonal roles Informational roles Decisional roles

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Evolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960 Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquos

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Scientific Management-Frederick TaylorFeatures of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Administrative Management-Henri FayolPrinciples

1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods

2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility

3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their

part in that plan6 Subordination of individual interests-- When at work only work things

should be pursued or thought about There should be constant vigilance and supervision

7 Remuneration-- Employees receive fair payment for services not what the company can get away with

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Administrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions

are made from the top9 Scalar chain (line of authority)-- Formal chain of command running

from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and

they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime

employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it

happen14 Esprit de corpsndash Union is strength Harmony cohesion among

personnel Manager should encourage espirit de corps among workers

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Bureaucracy- Weber

Features of Bureaucracy1 Administrative Class- Bureaucratic organizations generally

have administrative class responsible for maintaining coordinative activities of the members

2 Hierarchy-There are hierarchy of positions in the organization3 Division of Work- Work of the organization is divided on the

basis of specialization to take the advantages of division of labour

4 Official Rules- Administrative process is continuous and governed by official rules

5 Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments

6 Official Records- Organization is characterized by maintenance of proper official records

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Human Relations Approach- George Elton MayoThe study continued for an extended period of

time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicago

bull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test Room

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Phase-I Illumination ExperimentsPhase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers

hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the

groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time

higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Phase III Interviewing ProgramFrom the Relay Assembly Test Room the researchers for the first

time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Phase IV Bank Wiring Test RoomIt had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete

disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group

toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group

membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the group

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Thus the Hawthorne study pointed out the following The business organization is essentially a socio-technical entity

where the process of social interactions among its members is also extremely important

1048707 There is not necessarily a direct correspondence between working conditions and high production

1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders

1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to

communicate they are willing to contribute and they attempt to accomplish a common purpose

Formal and Informal Organizations Elements of Organization-specialization incentives power and logical

decision making Authority- Authority acceptance-understand the communication not

inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance

Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose

Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational

efforts to satisfy individuals

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Decision Theory Approach- Simon Concept of organization- To analyze an organization we should

find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing

developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough

decisions Administrative Man- Simplifies things takes decisions by simple

rules likes tricks of trade or habit etc Organization Communication- More importance given to

informal communication

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations

Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are

to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities

Organization Structure- organized least no of managerial levels catch them young

Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting

the changes in the organizations