UNIT 1.

2
APPROACHES TO MANAGEMENT
(SCHOOLS OF MGT THOUGHT)
Different Schools of mgt thought are :
 
1. Classical theory
a.Scientific Management approach
b.Administrative Management Approach
c.Bureaucratic Organisation approach
2. Neoclassical or Human Relation approach
3.Behavioural Science approach
4.Quantitative or Management Science approach
5.Systems Approach
6.Contingency approach
7.Operational approach
1. CLASSICAL THEORY
- traditional theory
- describes organisation in terms of its
purpose and formal structure
- deals with anatomy of formal
organisation
Incorporates three viewpoints
a. Taylor’s Scientific Management
b.Fayol’s Administrative Management
c.Weber’s Ideal Bureaucracy
 
CONTRIBUTIONS OF CLASSICAL THEORY
 Emphasizes Organisation Structure for coordination of various
activities
 Emphasizes on division of labour &
specialization,structure ,span of control etc.
 Management is considered Universal
 Treated Organisation as closed system as it ignored the
impact of external environment on the working of the
organisation.
 Based on Centralization of authority.
 The efficiency of the organization can be increased by
making each individual efficient.
 No conflict between individual & Organization.
 People are rational economic persons so can be motivated by
the rewards.
CRITICISM OF CLASSICAL THEORY

1. Narrow view of Organisation

2. Assumption of Closed System

3. Commodity approach

4. Economic rewards as main motivator

5. Lack of empirical Verification

6. Lack of Universality of principles

7. Excessive Emphasis on rules & regulations

A.SCIENTIFIC MANAGEMENT APPROACH
Given by F.W Taylor (1865-1915)
(Father of Scientific Management theory)
 Applicability of scientific methods to the problems of management at shop floor
Taylor laid emphasis on following principles :

1. Science not rule of thumb

2. Harmony in group action rather than discard

3. Maximum output in place of restricted output

4. Scientific selection,training and placement of the workers

5. Almost Equal division of work and responsibility between workers & managers.

Main emphsis is on changing the mental attitude of workers & managemenr towards
each other.Taylor called it MENTAL REVOLUTION
MENTAL REVOLUTION
Implications
 All our efforts for increase in production
 Creation of the spirit of Mutual Trust
 Including and developing the scientific attitude
towards problem
TECHNIQUES OF SCIENTIFIC
MANAGEMENT
 Scientific Task Setting to determine a fair day’s work
 Work study to simplify work & increase efficiency
( Time & Motion Study)
 Standardisation of
materials ,tools,equipments,costing system etc.
 Scientific selection & training
 Differential piece wage plan to reward highly
efficient workers
 Functional foremanship
 Elimination of waste & rationalisation of system of
control
CRITICISM OF SCIENTIFIC
MANAGEMENT
 Use of Word “Scientific Management”.It is scientific approach to
management.
 Principles of management are confined to production management
only.
 Functional foremanship is not applicable as it is not feasible for a
worker to carry out instructions from eight foreman.
 Production centered & kept less emphasis on human factors so there
is monotony of job,loss of initiatives,overspeeding workers etc.
 Workers are rational economic beings so are treated as extension of
machines and ignored their social & psychological needs
 Means to exploit workers as wages are not increased in direct
proportion to productivity.
B.ADMINISTRATIVE MANAGEMENT
APPROACH
 Father of Administrative approach – Henry Fayol
Fayol Classified operations into
1. Technical (Production)
2. Commercial (Purchase & Sales)
3. Financial
4. Security
5. Accounting
6. Administrative
PRINCIPLES OF FAYOL (14)

Management Principles developed by Henri Fayol:

1. DIVISION OF WORK: Work should be divided among individuals and groups to
ensure  that effort and attention are focused on special portions of the task. Fayol
presented work specialization as the best way to use the human resources of the
organization.                                                                                                        
2. AUTHORITY: The concepts of Authority and responsibility are closely related.
Authority was defined by Fayol as the right to give orders and the power to exact
obedience. Responsibility involves being accountable, and is therefore naturally
associated with authority. Whoever assumes authority also assumes responsibility.  
                              
3. DISCIPLINE: A successful organization requires the common effort of workers.
Penalties should be applied judiciously to encourage this common effort.                
                               
4. UNITY OF COMMAND: Workers should receive orders from only one manager.          
                                          
5. UNITY OF DIRECTION: The entire organization should be moving towards a common
objective in a common direction.                                                                            
              
6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The
interests of one person should not take priority over the interests of the
organization as a whole.                                                                                          
                      
7.REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business
conditions, and success of the business, should be considered in determining a worker’s rate of pay.
                                                 

8.CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role.
Decentralization is increasing the importance. The degree to which centralization or
decentralization should be adopted depends on the specific organization in which the manager is
working.                                                                                                                  
9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from
the first line supervisor to the president, possess certain amounts of authority. The President
possesses the most authority; the first line supervisor the least. Lower level managers should always
keep upper level managers informed of their work activities. The existence of a scalar chain and
adherence to it are necessary if the organization is to be successful.                                                
                          
10. ORDER: For the sake of efficiency and coordination, all materials and people related to a specific
kind of work should be treated as equally as possible.                                                                      
  
11. EQUITY: All employees should be treated as equally as possible.                                                      
                                                          
12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high
priority of management. Recruitment and Selection Costs, as well as increased product-reject rates
are usually associated with hiring new workers.                                                                                
                
13. INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new
or additional work activity undertaken through self direction.                                                    
14.ESPIRIT DE CORPS: (Unity is strength) Management should encourage harmony and general good
feelings among employees.
CRITICISM TO ADMINISTRATIVE
APPROACH
 No single classification of Managerial
function
 Principles are not universal
 No consideration of external environment of
business
 Fayol emphasized on the teaching of
management but he didnot elaborate the
nature and content of Management
education.
 C.BUREAUCRACY
By Max Weber
Three types of authority
i.Rational Legal
ii.Traditional
iii.Charismatic
A bureaucratic organisation which is based on rational-legal authority
has the following features
1.Division of work
2. Hierarchy of Positions
3.Rules & Regulations
4.Impersonal Conduct
5.Staffing
6.Technical competence
7. Official Records
MERITS
 Proper delegation of authority
 Consistency of actions due to rules &
regulations.
 Behaviour of employees is rational.They
donot go by their emotions or prejudices
 Behaviour of employees is predictable as
they know how to react under different
situations.
 Bureaucracy leads to efficiency in the
organisation
CRITICISM
 Rules may be followed in letter and not in spirit
 Requires strict adherence to the organisational
rules and regulations.No emphasis on the goals of
individuals
 No consideration to informal organisation and
interpersonal relations
 Discourages innovation as employee has to behave
in specified manner.
 Goal displacement may take place
 Communication takes long time as structure is tall
 Situation is not effective under dynamic conditions.
 2. NEO CLASSICAL THEORY
(HUMAN RELATION APPROACH)
 Organisation is a social System
 Human factor is the most important element
 Elton Mayo is father of HR School

 Reveals the importance of social and psychological factors in

determining worker’s productivity and satisfaction.
The features are :
1. Business Organisation is a social system.
2. Behaviour of individual is dominated by the informal group.
3. Employee cannot be motivated by economic incentives
only.His social & psychological needs must also be satisfied.
4. Not only the command but cooperative attitude works.
5. Mgt must aim at developing social & leadership skills along
with technical skills
6. Morale & Productivity go hand in hand with each other.
HAWTHORNE EXPERIMENT
The Hawthorne Studies (or experiments) were conducted from 1927 to 1932
at the Western Electric Hawthorne Works in Chicago, where Harvard
Business School professor Elton Mayo examined productivity and work
conditions.
The major phases of Hawthorne experiments are as follows:
1. Illumination Experiments
2. Relay Assembly Test Room Experiments
3. Mass Interviewing Programme
4. Bank Wiring Observation Room Experiment.
1. Experiments to determine the effects of changes in illumination on
productivity, illumination experiments, 1924-27.
2. Experiments to determine the effects of changes in hours and other
working conditions on productivity, relay assembly test room experiments,
1927-28;
3. Conducting plant-wide interviews to determine worker attitudes and
sentiments, mass interviewing programme, 1928-30; and
4. Determination and analysis of social organisation at work, bank wiring
observation room experiments, 1931-32.
1. Illumination Experiments:

 Illumination experiments were undertaken to find out how varying

levels of illumination (amount of light at the workplace, a physical
factor) affected the productivity.
 Since this group was subjected to experimental changes, it was termed
as experimental group. Another group, called as control group,
continued to work under constant intensities of illumination. The
researchers found that as they increased the illumination in the
experimental group, both groups increased production. When the
intensity of illumination decreased, the production continued to
increase in both the groups.
 The production in the experimental group decreased only when the
illumination was decreased to the level of moonlight. The decrease
was due to light falling much below the normal level.
 Thus, it was concluded that illumination did not have any effect on
productivity but something else was interfering with the productivity.
At that time, it was concluded that human factor was important in
determining productivity but which aspect was affecting, it was not
sure. Therefore, another phase of experiments was undertaken.
2. Relay Assembly Test Room Experiments:
 Relay assembly test room experiments were designed to determine the effect of changes in various job
conditions on group productivity
 Two group of girls was taken. The experiments started with introducing numerous changes in sequence with

duration of each change ranging from four to twelve weeks.

 An observer was associated with girls to supervise their work. Before each change was introduced, the girls

were consulted. They were given opportunity to express their viewpoints and concerns to the supervisor. In
some cases, they were allowed to take decisions on matters concerning them.
Following were the changes and resultant outcomes:
1. The incentive system was changed so that each girl’s extra pay was based on the other five rather than
output of larger group, say, 100 workers or so. The productivity increase as compared to before.
2. Two five- minute rests one in the morning session and other in evening session were introduced which were
increased to ten minutes. The productivity increased.
3. The rest period was reduced to five minutes but frequency was increased. The productivity decreased
slightly and the girls complained that frequent rest intervals affected the rhythm of the work.
4. The number of rest was reduced to two of ten minutes of each, but in the morning, coffee or soup was served
along with the sandwich and in the evening, snack was provided. The productivity increased.
5. Changes in working hours and workday were introduced, such as cutting an hour off the end of the day and
eliminating Saturday work. The girls were allowed to leave at 4.30 p.m. instead of usual 5.00 p.m. and later at
4.00 p.m. productivity increased.
 As each change was introduced, absenteeism decreased, morale increased, and less supervision was required.

It was assumed that these positive factors were there because of the various factors being adjusted and
making them more positive. At this time, the researchers decided to revert back to original position, that is, no
rest and other benefits. Surprisingly, productivity increased further instead of going down.
 This development caused a considerable amount of redirection in thinking and the result implied that

productivity increased not because of positive changes in physical factors but because of the change in girls’
attitudes towards work and their work group.
 They developed a feeling of stability and a sense of belongings. Since there was more freedom of work, they

developed a sense of responsibility and self-discipline. The relationship between supervisor and workers
became close and friendly
3. Mass Interviewing Programme:
During the course of experiments, about 20,000 interviews wereconducted between
1928 and 1930 to determine employees’ attitudes towards company, supervision,
insurance plans, promotion and wages. Initially, these interviews were conducted
by means of direct questioning such as “do you like your supervisor?” or “is he
in your opinion fair or does he have favorites?” etc.
During the course of interviews, it was discovered that workers’ behaviour was being
influenced by group behaviour. However, this conclusion was not very satisfactory and,
therefore, researches decided to conduct another series of experiments. As such, the
detailed study of a shop situation was started to find out the behaviour of workers in small
groups.
4. Bank Wiring Observation Room Experiment:
These experiments were conducted to find out the impact of small groups on the
individuals. In this experiment, a group of 14 male workers were formed into a
small work group.
It was expected that highly efficient workers would bring pressure on less efficient workers to increase
output and take advantage of group incentive plan. However, the strategy did not work and workers
established their own standard of output and this was enforced vigorously by various methods of social
pressure. The workers cited various reasons for this behaviour viz. fear of unemployment, fear of
increase in output, desire to protect slow workers etc.
CONCLUSIONS
1. Social Unit:
A factory is not only a techno-economic unit, but also a social unit. Men are social
beings. This social characteristic at work plays an important role in motivating
people. The output increased in Relay Room due to effectively functioning of a
social group with a warm relationship with its supervisors.
2. Group Influence:
The workers in a group develop a common psychological bond uniting them as £
group in the form of informal organisation. Their behaviour is influenced by these
groups. Pressure of a group, rather than management demands, frequently has the
strongest influence on how productive workers would be.
3. Group Behaviour:
Management must understand that a typical group behaviour can dominate or even
supersede individual propensities.
4. Motivation:
Human and social motivation can play even a greater role than mere monitory
incentives in moving or motivating and managing employee group.
5. Supervision:
The style of supervision affects worker’s attitude to work and his productivity. A
supervisor who is friendly with his workers and takes interest in their social
problems can get co-operation and better results from the subordinates.
6. Working Conditions:
Productivity increases as a result of improved working
conditions in the organisation.
7. Employee Morale:
Mayo pointed out that workers were not simply cogs, in the
machinery, instead the employee morale (both individual and in
groups) can have profound effects on productivity.
8. Communication:
Experiments have shown that the output increases when
workers are explained the logic behind various decisions and
their participation in decision making brings better results.
9. Balanced Approach:
The problems of workers could not be solved by taking one
factor i.e. management could not achieve the results by
emphasizing one aspect. All the things should be discussed and
decision be taken for improving the whole situation. A balanced
approach to the whole situation can show better results.
CRITICISM
 Lack of Scientific Validity
 Overemphasis on group
 Overstretching of Human Relations
 Limited focus on work
 Over stress on socio-psychological factors
 Negative view of conflict between
organisational individual goals
3. SYSTEM APPROACH
(MODERN MGT THEORY)

 Organisation is a system & its components are interrelated

 System is a combination of related & dependent elements.
 Each system has subsystems
Features :
1.Open system
2.Adaptive system(Adaptability to environment)
3.Interdependent subsystem
4.Whole organisation
5.Synergy (Output is always more than the combined output
of its parts)
6.Multilevel Analysis
7.Probalistic
8.Multidisciplinary