Development Of Management Thought Assignment

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Assignment on Management Thought

...Early management Writers Chapter- 4 Compared with the two preceding centuries, the 1800s brought forth a veritable wealth of literature on management. Economists perceived of and wrote about managerial concepts, the functions of management, and the applications of management theory. Samuel P Newman wrote in 1835, needed to constitute a good undertaker, a combination of qualities, rarely found united in the same individual. He should possess an unusual share of foresight and calculation, that his plans may be well laid. He must also exhibit perseverance and consistency of purpose in carrying his plans into execution. This is assuredly an impressive set of qualifications to add to Adam Smith’s simple list of “order, economy, and attention”. J.S. Mill adds two important qualifications to the list: Fidelity and zeal. Moving into the concepts of management, many of the economists of this period distinguished between the functions of a manager and the functions of the organizations. Most of the writers write about functions of a manager. Turgot was concerned with direction and control, Bowker felt that organizing and directing were a manager’s chief functions. Of all these writers, Neman alone appeared to have the sharpest focus when he wrote that a manager’s functions are “planning, arranging, and conducting the different processes of production. Actually time and motion study was researched by Adam Smith in his Wealth of Nations. The economists of this period were......

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Evelution of Management Thought

...വിഭവ ളം ഉപേയാഗി പ്െപടാെത വ േ ാൾ, പണ ിന്െറ വികാസേമാ േചാദനവർധനവിേല നയി മ സംേവദ േളാ വില വർധി ി ം. തത്ഫലമായി ഉപേയാഗി പ്െപടാതിരി ഉത്പാദനഘടക െള ഉപയ മാ തിലെട ഉത്പാദനം വർധി . ഇത് െതാഴിലില്ലായ നിശ്േശഷം ഇല്ലാതാ വെര ടർ െകാ ിരി ം. ഈ ഘ ം കഴി ാൽ, പണ ിന്െറ പരിമാണേമാ ചര കൾ േചാദനേമാ വർധി ാൽ വില വർധി െമ ിലം ഉത്പാദനേമാ െതാഴിേലാ വർധി കയില്ല. ഇതിൽ ആദ െ വിഭാഗ ിൽപ്െപ വിലവർധന നല്ലതാെണ ് െകയിൻസ് വാദി . അ മലം അലസമായിരി ഉത്പാദനഘടക ൾ ഉപേയാഗി പ്െപടകയം െതാഴിലം ഉത്പാദനവം വർധി കയം െച . ര ാമെ തര ില വിലവർധന ഉത്പാദന ിന്െറേയാ െതാഴിലിന്െറേയാ വർധനെയ സഹായി ാ തിനാൽ അത് േദാഷകരമാണ്. ര ാമെ വിഭാഗ ിൽപ്െപ വില വർധനെയയാണ് െകയിൻസ് നാണയപ്െപ െമ ് നിർവചി ത്. Economics Economie s by re gion [ ദർശി ി ക] General categories Microeconomics · Macroeconomics History of economic thought Methodology · Mainstream & heterodox Mathematical & quantitative methods Mathematical economics · Game theory Optimization · Computational Econometrics · Experimental Statistics · National accounting Fields and subfields Behavioral · Cultural · Evolutionary Growth · Development · History International · Economic systems Monetary and Financial economics Public and Welfare economics Health · Education · Welfare Population · Labour · Managerial Business · Information Industrial organization · Law Agricultural · Natural resource Environmental · Ecological Urban · Rural · Regional · Geography ഉ ട ം 1 േചാദനേ രകവം െചലവേ രകവമായ വിലവർധന. 2 നാണയപ്െപ വിടവ് 3 നാണയപ്െപ ിന്െറ ഫല ൾ 4 നാണയപ്െപ നിയ ണം 5 പണപ്െപ ം അവികസിതരാജ ളിൽ 6......

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School of Management Thought: an Introductory Overview

...1. What are the features of the major management thought schools? The major schools of management theory can be, according to the author Koontz, classified into six main groups: 1) The Management Process School: which deals with management as being a process of getting things done through and with people operating in organized groups. This school is also called the “traditional” or “universalist” school, and is fathered by Henri Fayol. It views management theory as a way of organizing experience for practice, research and teaching. It begins by defining the functions of managers. 2) The Empirical School: which deals with management as being a study of experience that has to be taught and transferred to the practitioner or student. Koontz mentions Ernest Dale's comparative approach as an example which involves the study and analysis of cases. The general idea is that generalizations can be drawn from cases that can be applied as guides in similar situations. 3) The Human Behavior School: which believes that since managing involves getting things done with and through people, then the study of management must be centered on interpersonal relations. It’s also called the “human relations”, “leadership”, or “behavioral sciences” approach. Its theory focuses on the motivation of the individual viewed as a socio-psychological being. 4) The Social System School: which identifies the nature of the cultural relationships of various social groups and attempts to show these as a......

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Early Management Thought

... Early Management Thought in Perspective      Management is not a new concept. It has been employed for thousands of years, as seen in the practices of the Sumerians, the Romans, and the Roman Catholic Church. However, the emergence of the factory system.  presented management with a new challenge. With industrialization it became necessary to develop rational, scientific principles for handling workers, materials, money, and machinery. The scientific managers played a major role in helping attain this objective.      The primary goal of these managers was that of achieving the highest productivity possible by devising efficient work methods and encouraging employees to take advantage of these new techniques. In the United States, scientific management was made famous by people such as Frederick W. Taylor. His experiments at Bethlehem Steel illustrated the importance of time-and-motion study, and his difFerential piece-rate system provides students an insight into the types of wage incentive payment plans used during this period. Another important scientific manager of the day was Frank Gilbreth, renowned for his work in time-and-motion study and for a large body of work in management in which he collaborated with Lillian Gilbreth.      The success of the scientific managers brought about changes in the worker-manager ratio and moved the focus of attention farther up the hierarchy. The result was two distinct levels of inquiry about management. The first sought to......

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Evolution of Management Thought and Patterns of Management Analysis.

...Evolution of management thought and patterns of management analysis. Scientific management school •A theory is simply a blueprint or roadmap that guides towards achieving the goal. In other wards, it provides a systemic framework for actions. •Study of management only dates for the last century, although there has been concerns about effective management practice for over centuries Scientific management school The two earliest pioneers of management theory are: -Robert Own and -Charles Babbage Scientific management school Robert Own (1771 -1858) A British industrialist who valued the organization’s human resources. Scientific management school He advocated ideas such as, - better working condition - meals for employees - reduced working hours He claimed that people deserve more respect and dignity. Scientific management school *Charles Babbage (1792 -1871) An English Mathematician who encouraged the application of mathematics to solve efficiency problems Scientific management school His work put the basic lines of both classical and quantitative management theories. He was also the originator of modern management theory and practice The classical management theory Includes two approaches: Scientific management Classical management Scientific management Concerned with the management of work and workers. it grew from researches of five people: Scientific management *Fredrick W.Taylor(1856 -1915) He was interested......

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Evolution of Management Thought

...The Evolution of Management Thinking 1880 - Scientific Management Frederick Taylor decides to time each and every worker at the Midvale Steel Company. His view of the future becomes highly accurate: "In the past man was first. In the future the system will be first." - Frederick Taylor In scientific management the managers were elevated while the workers' roles were negated. "Science, not rule of thumb, - Frederick Taylor The decisions of supervisors, based upon experience and intuition, were no longer important. Employees were not allowed to have ideas of responsibility. Yet the question remains — is this promotion of managers to center-stage justified? 1929 – Taylorism The Taylor Society publishes a revised and updated practitioner's manual: Scientific Management in American Industry. 1932 - The Hawthorne Studies Elton Mayo becomes the first to question the behavioral assumptions of scientific management. The studies concluded that human factors were often more important than physical conditions in motivating employees to greater productivity. 1946 - Organization Development Social scientist Kurt Lewin launches the Research Center for Group Dynamics at the Massachusetts Institute of Technology. His contributions in change theory, action research, and action learning earn him the title of the “Father of Organization Development:” the systematic application of behavioral science knowledge at various levels (group, intergroup, and total......

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Management Thoughts

...still commonly used for motivation and management today. They are Theory X and Theory Y. He was influenced by Dr Abraham Maslow’s Humanistic School of Psychology and based his researches on Dr Abraham Maslow’s hierarchy of needs, namely psychological, safety, love, esteem and self actualisation. He saw these two theories (X & Y) as two quite separate attitudes. He was a forerunner for seeing the need of values-based leadership. These’s values are from one’s belief, assumptions about what seems to cause what, and fundamental attitudes. McGregor’s goal was to introduce a framework that provides ways of liberating the employees from authoritarian leadership and management with a good balance of soft and hard management styles. Managements that are hard or strong had an environment of command and control involving close supervision, tight controls and limited flexibilities as opposed to soft management which involve satisfying employees’ demands, seeks harmony and being permissive with more flexibility which employees will cooperate in return. Having said these, hard and soft management are not the best management styles. The hard approach resulted in hostility, low-output, and extreme union demands and the soft approach resulted in increasing desire for greater reward in exchange for diminishing work output. The characteristic of McGregor’s Theory X is much of a top-down approach of decision making. It is a conventional authoritarian management style which had the believe......

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Management Thought

...What is ERP? ERP is the acronym of Enterprise Resource Planning. ERP utilizes ERP software applications to improve the performance of organizations' resource planning, management control and operational control. ERP software is multi-module application software that integrates activities across functional departments, from product planning, parts purchasing, inventory control, and product distribution, to order tracking. ERP software may include application modules for the finance, accounting and human resources aspects of a business. Enterprise resource planning (ERP) refers to a computer information system that integrates all the business activities and process throughout an entire organization. The objective of ERP is to provide seamless, real-time information to all employees throughout the enterprise. Companies commonly use ERP systems to communicate the progress of orders and projects throughout the supply chain, and to track the costs and availability of value-added services. ERP Definition - A Systems Perspective A sound definition should several purposes: 1. It answers the question of "what is ...?” 2. It provides a base for defining more detailed concepts in the field - ERP Software, ERP systems, ERP implementation etc. 3. It provides a common ground for comparison with related concepts - CRM, SCM etc. 4. It helps answer the basic questions in the field -benefits of ERP, the causes of ERP failure etc. The Goal of an ERP System - The goal of ERP is to...

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The Development of Management Thoughts

...THE DEVELOPMENT OF MANAGEMENT THOUGHTS Basic Approaches of Organisational Behavior  An Interdisciplinary Approach: It is integrating many disciplines. It integrates social sciences and other disciplines that can contribute to the Organizational Behavior. It draws from these disciplines any ideas that will improve the relationships between people and organization. Its interdisciplinary nature is similar to that of medicine, which applies physical, biological and social science into a workable medical practice. Organizations must have people, and people working toward goals must have organizations, so it is desirable to treat the two as a working unit.  Scientific Management Approach: The fundamental concern of the scientific management school was to increase the efficiency of the worker basically through good job design and appropriate training of the workers. Taylor is the father of the scientific management movement and he developed many ides to increase organizational efficiency. Taylor showed that through proper job design, worker selection, employee training and incentives, productivity can be increased. The scientific management school advocated that efficiency can be attainted by finding the right methods to get the job done, through specialization on the job, by planning and scheduling, by using standard operating mechanisms, establishing standard times to do the job, by proper selection and training of personnel and through wage incentives.  A Human......

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A Summary of the Key Thought Leaders of the Classical School of Management

...A Summary of the Key Thought Leaders of the Classical School of Management Beth J. Beal Mary Baldwin College BUAD200L WA SP2014 Principles of Management A Summary of the Key Thought Leaders of the Classical School of Management Introduction According to Daft (2009) "Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources." The classical school of management often referred to as the "Classical School of Thought" was born in the early 1900s out of a need to run organizations efficiently, and it is so named because it comprises the first works and contributions that make up the core of modern management theory. Classical theorists viewed workers as a production instrument and were interested in finding ways to use people efficiently or in "one best way" through the application of science (Lindsey, 1998). It was also during this period of development that the five basic functions of management were identified: planning, organizing, command, coordination, and controlling (Wren, 1994). These five functions are often referred to as "the management process" (Wren, 1994). The classical viewpoint sought to find ways to manage work and run the organization in the most efficient manner, and is made up of the following three major approaches. The scientific management approach represented by the work of Frederick W. Taylor and supporting efforts of Frank and......

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Schools of Management Thought

...Schools of Management Thought SCHOOLS OF MANAGEMENT THOUGHT Structure 4.0 4.1 4.2 4.3 4.4 4.5 Objectives Introduction Historical Perspective Theory in Management Classification of Management Theories Classical Management Theory 4.5.1 Scientific Management 4.5.2 Administrative Management 4.5.3 Bureaucratic Organization 4.5.4 Criticisms on Classical Management Theory 4.6 Neo-Classical Theory 4.6.1 Human-Relations School 4.6.2 Behavioural Schools 4.7 Modem Management Theory 4.7.1 Systems Theory 4.1.2 Contingency Theory 4.7.3 Organizational Humanism 4.7.4 Management Science 4.8 Other Schools of Thoughts, Styles and Approaches 4.9 Problems and Conflicts in Management Theories 4.10 Summary 4.11 Key Words 4.12 References and Further Reading 4.0 OBJECTIVES After reading this Unit, you will be able to • know the historical development of schools of management thought; • explain what a theory in management is; • outline the classification of management theories; • describe important schools of management, their contributions and limitations; • elaborate problems and conflicting issues in management theory; and 4.1 INTRODUCTION In the preceding three units of this block you have learnt various scientific principles of management, management functions and what constitutes managerial quality and leadership as propounded by management experts. In this Unit you will have a historical perspective of management approaches or thoughts. The block in toto will set the background about......

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Evolution of Management Thought and Patterns of Management Analysis

...MANAGERS AND MANAGING What is Management? "Management is the organizational process that includes strategic planning, setting objectives, managing resources, deploying the human and financial assets needed to achieve objectives, and measuring results. Management also includes recording and storing facts and information for later use or for others within the organization. Management functions are not limited to managers and supervisors. Every member of the organization has some management and reporting functions as part of their job." (Knowledge Management Terms, 2009) Essential Managerial Tasks A manager's job uniquely describes the functions of management, which are most commonly cited as planning, organizing, leading, and controlling, although some managers' jobs identify additional functions. The process of management is defined by the functions of management, which are distinct from accounting, finance, marketing, and other business functions. " These functions provide a useful way of classifying information about management, and most basic management texts since the 1950s have been organized around a functional framework." (Cengage, 2006) Levels and Skills of Managers Most organizations have three levels of management. First-line, middle, and top managers. While first-line managers are responsible for the day-to-day supervision of non-managerial employees, middle managers are responsible for developing and utilizing organizational resources......

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Management Assignment

...BPMN 1013 PRINCIPLES OF MANAGEMENT Group Assignment CASE STUDY 2 Transparency Works Successfully marketing something—an automobile, a dating service or a politician—requires skill, creativity and an understanding of the target market. For short-term products this usually is enough. In 1975 a California advertising executive came up with the idea of a “pet rock.” It was an ordinary rock, resting on fake grass in a small cardboard box, with instructions titled The Care and Training of your Pet Rock. The unit sold for about four dollars, and it was wildly popular—for less than one year. But this product is an example of a “one hit wonder”—so its creators did not need to worry about whether they seemed to be reliable or trustworthy or explicit about their company’s practices. But very few companies have the luxury of casting aside concerns about image. For big, medium and small companies today, the emphasis usually is on long-term survival, and this requires a good public image. So how can a company survive in today’s fast-changing world? Through transparency—in the presentation and defense of its products, and in its day-to-day behavior. This mean sharing, to whatever extent possible, facts about the company—how it is set up, how it operates, what its salaries and bonuses are based on, and how its workers are expected to treat customers and each other. There are many examples of companies doing precisely this, and succeeding. One of the most recent examples is......

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Administrative Management Thought

...ADMINISTRATIVE MANAGEMENT. Administrative management focuses on the management process and principles of management. In contrast to scientific management, which deals largely with jobs and work at the individual level of analysis, administrative management provides a more general theory of management. Henri Fayol is the major contributor to this school of management thought. Fayol was a management practitioner who brought his experience to bear on the subject of management functions and principles. He argued that management was a universal process consisting of functions, which he termed planning, organizing, commanding, coordinating, and controlling. Fayol believed that all managers performed these functions and that the functions distinguished management as a separate discipline of study apart from accounting, finance, and production. Fayol also presented fourteen principles of management, which included maxims related to the division of work, authority and responsibility, unity of command and direction, centralization, subordinate initiative, and team spirit. Although administrative management has been criticized as being rigid and inflexible and the validity of the functional approach to management has been questioned, this school of thought still influences management theory and practice. The functional approach to management is still the dominant way of organizing management knowledge, and many of Fayol's principles of management, when applied with the......

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The Evolution of Management Thought

...THE EVOLUTION OF MANAGEMENT THOUGHT Second Edition DANIEL A. WREN The University of Oklahoma JOHN WILEY AND SONS New York • Chichester • Brisbane • Toronto CONTENTS PART ONE EARLY MANAGEMENT THOUGHT A PROLOGUE TO THE PAST 3 A Cultural Framework: The Economic Facet. The Social Facet. The Political Facet. P eople, Management, and Organizations: The Human Being. Organizations and Management. MANAGEMENT BEFORE INDUSTRIALIZATION 15 Management in Early Civilizations: The Near East. The Far East. Egypt. The Hebrews. Greece. Rome. The Catholic Church. Feudalism and the Middle Ages. The Revival of Commerce. T he Cultural Rebirth: The Protestant Ethic. A Criticism of the Weberian Thesis. Modern Support for Weber. The Liberty Ethic. The Market Ethic. THE INDUSTRIAL REVOLUTION: PROBLEMS AND PERSPECTIVE The Industrial Revolution in England: The Age of Machines. Management: the Fourth Factor of Production. M anagement Problems in the Early Factory: The Search for Managerial Talent. The Labor Problem. The Shortage of Skilled Labor. Training. Discipline and Motivation. Management Functions in the Early 42 Xll CONTENTS Factory. Cultural Consequences of the Industrial Revolution: The Condition of the Worker. Child and Female Labor. MANAGEMENT PIONEERS IN THE FACTORY SYSTEM Robert Owen: The Search for a New Harmony: Early Managerial Experiences. The Call for Reform. Charles Babbage: The Irascible Genius: The First Computer....

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The origin of management can be traced back to the days when man started living in groups. History reveals that strong men organized the masses into groups according to their intelligence, physical and mental capabilities. Evidence of the use of the well recognized principles of management is to be found in the organization of public life in ancient Greece, the organization of the Roman Catholic Church and the organization of military forces. Thus management in some form or the other has been practiced in the various parts of the world since the dawn of civilization. With the on set of Industrial Revolution, however, the position underwent a radical change. The structure of industry became extremely complex. At this stage, the development of a formal theory of management became absolutely necessary. It was against this background that the pioneers of modern management thought laid the foundations of modern management theory and practice.

Evolution of management thought may be divided into four stages

  1. Pre-scientific management period.
  2. Classical Theory
    1. Scientific Management of Taylor
    2. Administrative Management of Fayol
    3. Bureaucratic Model of Max Weber
  3. Neo-classical Theory or Behaviour Approach
  4. Modern Theory or Systems Approach

Evolution of Management Thought

Pre-scientific Management Period

The advent of industrial revolution in the middle of the 18th century had its impact on management. Industrial revolution brought about a complete change in the methods of production, tools and equipments, organization of labour and methods of raising capital.

Employees went to their work instead of receiving it, and so, the factory system, as it is known today, become a dominant feature of the economy. Under this system, land and buildings, hired labour, and capital are made available to the entrepreneur, who strives to combine these factors in the efficient achievement of a particular goal. All these changes, in turn, brought about changes in the field of management. Traditional, conventional or customary ideas of management were slowly given up and management came to be based on scientific principles. In the words of L. F. Urwick- "Modern management has thrown open a new branch of human knowledge, a fresh universe of discourse". During the period following the industrial revolution, certain pioneers tried to challenge the traditional character of management by introducing new ideas and character of management by introducing new ideas and approaches. The notable contributors of this period are:

  1. Professor Charles Babbage (UK 1729 -1871): He was a Professor of Mathematics at Cambridge University. Prof Babbage found that manufacturers made little use of science and mathematics, and that they (manufacturers) relied upon opinions instead of investigations and accurate knowledge. He felt that the methods of science and mathematics could be applied to the solution of methods in the place of guess work for the solution of business problems. He advocated the use of accurate observations, measurement and precise knowledge for taking business decisions. He urged the management of an enterprise, on the basis of accurate data obtained through rigid investigation, the desirability of finding out the number of times each operation is repeated each hour, the dividing of work into mental and physical efforts, the determining of the precise cost for every process and the paying of a bonus to the workers in proportion to his own efficiency and the success of enterprise.
  2. James Watt Junior (UK 1796 - 1848) and Mathew Robinson Boulton(1770 - 1842): James Watt Junior and Mathew Robinson Boulton contributed to the development of management thought by following certain management techniques in their engineering factory at Soho in Birmingham. They are:-
  3. Robert Owens (UK 1771 - 1858): Robert Owens, the promoter of co-operative and trade union movement in England, emphasized the recognition of human element in industry. He firmly believed that workers' performance in industry was influenced by the working conditions and treatment of workers. He introduced new ideas of human relations - shorter working hours, housing facilities, training of workers in hygiene, education of their children, provision of canteen etc. Robert Owen, managed a group of textile mills in Lanark, Scotland, where he used his ideas of human relations. Though his approach was paternalistic, he came to be regarded as the father of Personnel Management.
  4. Henry Robinson Towne (USA 1844 -1924): H.R Towne was the president of the famous lock manufacturing company "Yale and Town". He urged the combination of engineers and economists as industrial managers. This combination of qualities, together with at least some skill as an accountant, is essential to the successful management of industrial workers. He favoured organized exchange of experience among managers and pleaded for an organized effort to pool the great fund of accumulated knowledge in the art of workshop management.
  5. Seebohm Rowntree (UK 1871- 1954): Rowntree created a public opinion on the need of labour welfare scheme and improvement in industrial relations. The Industrial Welfare Society, The Management Research Groups and the Oxford Lecture Conferences in the U.K owed their origin and progress to the interest and zeal of Rowntree.

Classical Theory

Prof. Charles Babbage, James Watt Junior and Mathew Robinson Boulton, Robert Owen, Henry Robinson Towne and Rowntree were, no doubt, pioneers of management thought. But, the impact of their contributions on the industry as a whole was meagre. The real beginning of the science of management did not occur until the last decade of the 19thcentury. During this period, stalwarts like F.W. Taylor, H.L. Gantt, Emerson, Frank and Lillian Gilberth etc., laid the foundation of management, which in due course, came to be known as scientific management. This epoch in the history of management will be remembered as an era in which traditional ways of managing were challenged, past management experience was scientifically systematized and principles of management were distilled and propagated. The contributions of the pioneers of this age have had a profound impact in furthering the management know-how and enriching the store of management principles.

F.W. Taylor and Henry Fayol are generally regarded as the founders of scientific management and administrative management and both provided the bases for science and art of management.

Features of Management in the Classical Period:

  1. It was closely associated with the industrial revolution and the rise of large-scale enterprise.
  2. Classical organization and management theory is based on contributions from a number of sources. They are scientific management, Administrative management theory, bureaucratic model, and micro-economics and public administration.
  3. Management thought focussed on job content division of labour, standardization, simplification and specialization and scientific approach towards organization.
  1. Taylor's Scientific Management: Started as an apprentice machinist in Philadelphia, USA. He rose to be the chief engineer at the Midvale Engineering Works and later on served with the Bethlehem Works where he experimented with his ideas and made the contribution to the management theory for which he is so well known. Frederick Winslow Taylor well-known as the founder of scientific management was the first to recognize and emphasis the need for adopting a scientific approach to the task of managing an enterprise. He tried to diagnose the causes of low efficiency in industry and came to the conclusion that much of waste and inefficiency is due to the lack of order and system in the methods of management. He found that the management was usually ignorant of the amount of work that could be done by a worker in a day as also the best method of doing the job. As a result, it remained largely at the mercy of the workers who deliberately shirked work.
  2. He therefore, suggested that those responsible for management should adopt a scientific approach in their work, and make use of "scientific method" for achieving higher efficiency. The scientific method consists essentially of

    1. Observation
    2. Measurement
    3. Experimentation and
    4. Inference.

    He advocated a thorough planning of the job by the management and emphasized the necessity of perfect understanding and co-operation between the management and the workers both for the enlargement of profits and the use of scientific investigation and knowledge in industrial work. He summed up his approach in these words:

    • Science, not rule of thumb
    • Harmony, not discord
    • Co-operation, not individualism
    • Maximum output, in place of restricted output
    • The development of each man to his greatest efficiency and prosperity.

    Elements of Scientific Management: The techniques which Taylor regarded as its essential elements or features may be classified as under:

    1. Scientific Task and Rate-setting, work improvement, etc.
    2. Planning the Task.
    3. Vocational Selection and Training
    4. Standardization (of working conditions, material equipment etc.)
    5. Specialization
    6. Mental Revolution.
    1. Scientific Task and Rate-Setting (work study): Work study may be defined as the systematic, objective and critical examination of all the factors governing the operational efficiency of any specified activity in order to effect improvement. Work study includes.
      1. Methods Study: The management should try to ensure that the plant is laid out in the best manner and is equipped with the best tools and machinery. The possibilities of eliminating or combining certain operations may be studied.
      2. Motion Study: It is a study of the movement, of an operator (or even of a machine) in performing an operation with the purpose of eliminating useless motions.
      3. Time Study (work measurement): The basic purpose of time study is to determine the proper time for performing the operation. Such study may be conducted after the motion study. Both time study and motion study help in determining the best method of doing a job and the standard time allowed for it.
      4. Fatigue Study: If, a standard task is set without providing for measures to eliminate fatigue, it may either be beyond the workers or the workers may over strain themselves to attain it. It is necessary, therefore, to regulate the working hours and provide for rest pauses at scientifically determined intervals.
      5. Rate-setting: Taylor recommended the differential piece wage system, under which workers performing the standard task within prescribed time are paid a much higher rate per unit than inefficient workers who are not able to come up to the standard set.
    2. anning the Task: Having set the task which an average worker must strive toperform to get wages at the higher piece-rate, necessary steps have to be taken top lan the production thoroughly so that there is no bottlenecks and the work goes on systematically.
    3. lection and Training: Scientific Management requires a radical change in the methods and procedures of selecting workers. It is therefore necessary to entrust the task of selection to a central personnel department. The procedure of selection will also have to be systematised. Proper attention has also to be devoted to the training of the workers in the correct methods of work.
    4. Standardization: Standardization may be introduced in respect of the following.
      1. Tools and equipment: By standardization is meant the process of bringing about uniformity. The management must select and store standard tools and implements which will be nearly the best or the best of their kind.
      2. Speed: There is usually an optimum speed for every machine. If it is exceeded, it is likely to result in damage to machinery.
      3. Conditions of Work: To attain standard performance, the maintenance of standard conditions of ventilation, heating, cooling, humidity, floor space, safety etc., is very essential.
      4. Materials: The efficiency of a worker depends on the quality of materials and the method of handling materials.
    5. Specialization: Scientific management will not be complete without the introduction of specialization. Under this plan, the two functions of 'planning' and 'doing' are separated in the organization of the plant. The `functional foremen' are specialists who join their heads to give thought to the planning of the performance of operations in the workshop. Taylor suggested eight functional foremen under his scheme of functional foremanship.

      1. The Route Clerk: To lay down the sequence of operations and instruct the workers concerned about it.
      2. The Instruction Card Clerk: To prepare detailed instructions regarding different aspects of work.
      3. The Time and Cost Clerk: To send all information relating to their pay to the workers and to secure proper returns of work from them.
      4. The Shop Disciplinarian: To deal with cases of breach of discipline and absenteeism.
      5. The Gang Boss: To assemble and set up tools and machines and to teach the workers to make all their personal motions in the quickest and best way.
      6. The Speed Boss: To ensure that machines are run at their best speeds and proper tools are used by the workers.
      7. The Repair Boss: To ensure that each worker keeps his machine in good order and maintains cleanliness around him and his machines.
      8. strong>The Inspector: To show to the worker how to do the work.
    6. Mental Revolution: At present, industry is divided into two groups – management and labour. The major problem between these two groups is the division of surplus. The management wants the maximum possible share of the surplus as profit; the workers want, as large share in the form of wages. Taylor has in mind the enormous gain that arises from higher productivity. Such gains can be shared both by the management and workers in the form of increased profits and increased wages.

    Benefits of Scientific Management: Taylor's ideas, research and recommendations brought into focus technological, human and organizational issues in industrial management. Benefits of Taylor's scientific management included wider scope for specialization, accurate planning, timely delivery, standardized methods, better quality, lesser costs, minimum wastage of materials, time and energy and cordial relations between management and workers. According to Gilbreths, the main benefits of scientificmanagement are "conservation and savings, making an adequate use of every one'senergy of any type that is expended". The benefits of scientific management are:-

    1. Replacement of traditional rule of thumb method by scientific techniques.
    2. Proper selection and training of workers.
    3. Incentive wages to the workers for higher production.
    4. Elimination of wastes and rationalization of system of control.
    5. Standardization of tools, equipment, materials and work methods.
    6. Detailed instructions and constant guidance of the workers.
    7. Establishment of harmonious relationship between the workers.
    8. Better utilization of various resources.
    9. Satisfaction of the needs of the customers by providing higher quality products at lower prices.


    1. Worker's Criticism:

      1. Speeding up of workers: Scientific Management is only a device to speed up the workers without much regard for their health and well-being.
      2. Loss of individual worker's initiative: Scientific Management reduces workers to automatic machine by taking away from them the function of thinking.
      3. Problem of monotony: By separating the function of planning and thinking from that of doing, Scientific Management reduces work to mere routine.
      4. Reduction of Employment: Scientific Management creates unemployment and hits the workers hard.
      5. Weakening of Trade Unions: Under Scientific Management, the important issues of wages and working conditions are decided by the management through scientific investigation and the trade unions may have little say in the matter.
      6. Exploitation of workers: Scientific Management improves productivity through the agency of workers and yet they are given a very small share of the benefit of such improvement.
    2. Employer's Criticism:

      1. Heavy Investment: It requires too heavy an investment. The employer has to meet the extra cost of the planning department though the foreman in this department do not work in the workshop and directly contribute towards higher production.
      2. Loss due to re-organization: The introduction of Scientific Management requires a virtual reorganization of the whole set-up of the industrial unit. Work may have to be suspended to complete such re-organization.
      3. Unsuitable for small scale firms: various measures like the establishment of a separate personnel department and the conducting of time and motion studies are too expensive for a small or modest size industrial unit.

    Contributions of Scientific Management: Chief among these are:

    1. Emphasis on rational thinking on the part of management.
    2. Focus on the need for better methods of industrial work through systematic study and research.
    3. Emphasis on planning and control of production.
    4. Development of Cost Accounting.
    5. Development of incentive plans of wage payment based on systematic study of work.
    6. Focus on need for a separate Personnel Department.
    7. Focus on the problem of fatigue and rest in industrial work.

    Taylor was the pioneer in introducing scientific reasoning to the discipline of management.

    Many of the objections raised were later remedied by the other contributors to scientific management like Henry L Gantt, Frank and Lillian Gilbreth and Harrington Emerson.

    Frank (USA, 1867 - 1924) and Lillian (U.S.A, 1878 - 1912): The ideas of Taylorwere also strongly supported and developed by the famous husband and wife team of Frank and Lillian Gilbreth. They became interested in wasted motions in work. After meeting Taylor, they combined their ideas with Taylor's to put scientific management into effect. They made pioneering effort in the field of motion study and laid the entire foundation of our modern applications of job simplification, meaningful work standards and incentive wage plans. Mrs. Gilbreth had a unique background in psychology and management and the couple could embark on a quest for better work methods. Frank Gilbreth is regarded as the father of motion study. He is responsible for inculcating in the minds of managers the questioning frame of mind and the search for a better way of doing things.

    Gilbreth's contributions to management thought are quite considerable. His main contributions are:

    1. The one best way of doing a job is the way which involves the fewest motions performed in an accessible area and in the most comfortable position. The best way can be found out by the elimination of inefficient and wasteful motions involved in the work.
    2. He emphasized that training should be given to workers from the very beginning so that they may achieve competence as early as possible.
    3. He suggested that each worker should be considered to occupy three positions - (i) the job he held before promotion to his present position, (ii) his present position, and
    4. the next higher position. The part of a worker's time should be spent in teaching the man below him and learning from the man above him. This would help him qualify for promotion and help to provide a successor to his current job.
    5. Frank and Lillian Gilberth also gave a thought to the welfare of the individuals who work for the organization.
    6. Gilbreth also devised methods for avoiding wasteful and unproductive movements. He laid down how workers should stand, how his hands should move and so on.

    Henry Lawrence Gantt (USA, 1861 - 1819): H.L Gantt was born in 1861. He graduated from John Hopkins College. For some time, he worked as a draftsman in an iron foundry.

    In 1884, he qualified as a mechanical engineer at Stevens Institute. In 1887, he joined the Midvale Steel Company. Soon, he became an assistant to F.W Taylor. He worked with Taylor from 1887 - 1919 at Midvale Steel Company. He did much consulting work on scientific selection of workers and the development of incentive bonus systems. He emphasized the need for developing a mutuality of interest between management and labour. Gantt made four important contributions to the concepts of management:

    1. Gantt chart to compare actual to planned performance. Gantt chart was a daily chart which graphically presented the process of work by showing machine operations, man hour performance, deliveries, effected and the work in arrears. This chart was intended to facilitate day-to-day production planning.
    2. Task-and-bonus plan for remunerating workers indicating a more humanitarian approach. This plan was aimed at providing extra wages for extra work besides guarantee of minimum wages. Under this system of wage payment, if a worker completes the work laid out for him, he is paid a definite bonus in addition to his daily minimum wages. On the other hand, if a worker does not complete his work, he is paid only his daily minimum wages. There was a provision for giving bonus to supervisors, if workers under him were able to earn such bonus by extra work.
    3. Psychology of employee relations indicating management responsibility to teach and train workers. In his paper "Training Workmen in Habits of Industry and Cooperation", Gantt pleaded for a policy of preaching and teaching workmen to do their work in the process evolved through pre-thinking of management.
    4. Gantt laid great emphasis on leadership. He considered management as leadership function. He laid stress on the importance of acceptable leadership as the primaryelement in the success of any business. Gantt's contributions were more in the nature of refinements rather than fundamental concepts. They made scientific management more humanized and meaningful to devotees of Taylor.

    Harrington Emerson (USA, 1853 - 1931): Emerson was an American Engineer. He devoted his attention to efficiency in industry. He was the first to use the term 'efficiency engineering' to describe his brand of consulting. He called his philosophy "The Gospel of Efficiency". According to him, "efficiency means that the right thing is done in the right manner, by the right man, at the right place, in the right time".

    Emerson laid down the following principles of efficiency to be observed by management:-

    1. Ideals
    2. Common Sense
    3. Competent Counsel
    4. Discipline
    5. Fair Deal
    6. Proper Records
    7. Dispatching
    8. Standards and Schedules
    9. Standard Conditions
    10. Standardized Operations
    11. Standard practice instructions and
    12. Efficiency Reward.
  3. Administrative Management Theory: Henry Fayol was the most important exponent of this theory. The pyramidal form, scalar principle, unity of command, exception principle, span of control and departmentalisation are some of the important concepts set forth by Fayol and his followers like Mooney and Reiley, Simon, Urwick, Gullick etc.
  4. Henry Fayol (France, 1841 - 1925): Henry Fayol was born in 1941 at Constantinople in France. He graduated as a mining engineer in 1860 from the National School of Mining. After his graduation, he joined a French Coal Mining Company as an Engineer. After a couple of years, he was promoted as manager. He was appointed as General Manager of his company in 1888. At that time, the company suffered heavy losses and was nearly bankrupt. Henry Fayol succeeded in converting his company from near bankruptcy to a strong financial position and a record of profits and dividends over a long period.

    Concept of Management: Henry Fayol is considered the father of modern theory of general and industrial management. He divided general and industrial management into six groups:

    1. Technical activities - Production, manufacture, adaptation.
    2. Commercial activities - buying, selling and exchange.
    3. Financial activities - search for and optimum use of capital.
    4. Security activities - protection of property and persons.
    5. Accounting activities - stock-taking, balance sheet, cost, and statistics.
    6. Managerial activities - planning, organization, command, co- ordination and control.

    These six functions had to be performed to operate successfully any kind of business. He, however, pointed out that the last function i.e., ability to manage, was the most important for upper levels of managers. The process of management as an ongoing managerial cycle involving planning, organizing, directing, co-ordination, and controlling, is actually based on the analysis of general management by Fayol. Hence, it is said that Fayol established the pattern of management thought and practice. Even today, management process has general recognition.

    Fayol's Principles of Management: The principles of management are given below:

    1. Division of work: Division of work or specialization alone can give maximum productivity and efficiency. Both technical and managerial activities can be performedin the best manner only through division of labour and specialization.
    2. Authority and Responsibility: The right to give order is called authority. The obligation to accomplish is called responsibility. Authority and Responsibility are the two sides of the management coin. They exist together. They are complementary and mutually interdependent.
    3. Discipline: The objectives, rules and regulations, the policies and procedures must be honoured by each member of an organization. There must be clear and fair agreement on the rules and objectives, on the policies and procedures. There must be penalties (punishment) for non-obedience or indiscipline. No organization can work smoothly without discipline - preferably voluntary discipline.
    4. Unity of Command: In order to avoid any possible confusion and conflict, each member of an organization must received orders and instructions only from one superior (boss).
    5. Unity of Direction: All members of an organization must work together to accomplish common objectives.
    6. Emphasis on Subordination of Personal Interest to General or CommonInterest: This is also called principle of co-operation. Each shall work for all and all for each. General or common interest must be supreme in any joint enterprise.
    7. Remuneration: Fair pay with non-financial rewards can act as the best incentive or motivator for good performance. Exploitation of employees in any manner must be eliminated. Sound scheme of remuneration includes adequate financial and nonfinancial incentives.
    8. Centralization: There must be a good balance between centralization and decentralization of authority and power. Extreme centralization and decentralization must be avoided.
    9. Scalar Chain: The unity of command brings about a chain or hierarchy of command linking all members of the organization from the top to the bottom. Scalar denotes steps.
    10. Order: Fayol suggested that there is a place for everything. Order or system alone can create a sound organization and efficient management.
    11. Equity: An organization consists of a group of people involved in joint effort. Hence, equity (i.e., justice) must be there. Without equity, we cannot have sustained and adequate joint collaboration.
    12. Stability of Tenure: A person needs time to adjust himself with the new work and demonstrate efficiency in due course. Hence, employees and managers must have job security. Security of income and employment is a pre-requisite of sound organization and management.
    13. Esprit of Co-operation: Esprit de corps is the foundation of a sound organization. Union is strength. But unity demands co-operation. Pride, loyalty and sense of belonging are responsible for good performance.
    14. Initiative: Creative thinking and capacity to take initiative can give us sound managerial planning and execution of predetermined plans.
  5. Bureaucratic Model: Max Weber, a German Sociologist developed the bureaucratic model. His model of bureaucracy include
  1. Hierarchy of authority.
  2. Division of labour based upon functional specialization.
  3. A system of rules.
  4. Impersonality of interpersonal relationships.
  5. A system of work procedures.
  6. Placement of employees based upon technical competence.
  7. Legal authority and power.

Bureaucracy provides a rigid model of an organization. It does not account for important human elements. The features of Bureaucracy are:-

  1. Rigidity, impersonality and higher cost of controls.
  2. Anxiety due to pressure of conformity to rules and procedure.
  3. Dependence on superior.
  4. Tendency to forget ultimate goals of the organization.

Bureaucratic Model is preferred where change is not anticipated or where rate of change can be predicated. It is followed in government departments and in large business organizations.

Neoclassical Theory:Neo-classical Theory is built on the base of classical theory. It modified, improved and extended the classical theory. Classical theory concentrated on job content and management of physical resources whereas, neoclassical theory gave greater emphasis to individual and group relationship in the workplace. The neo- classical theory pointed out the role of psychology and sociology in the understanding of individual and group behaviour in an organization.

George Elton Mayo (Australia, 1880 - 1949): Elton Mayo was born in Australia. He was educated in Logic and Philosophy at St. Peter's College, Adelaide. He led a team of researchers from Harvard University, which carried out investigation in human problems at the Hawthorne Plant of Western Electrical Company at Chicago. They conducted some experiments (known as Hawthorne Experiments) and investigated informal groupings, informal relationships, patterns of communication, patterns of informal leadership etc. Elton Mayo is generally recognized as the father of Human Relations School. Other prominent contributors to this school include Roethlisberger, Dickson, Dewey, Lewinetc.

Hawthorne Experiment: In 1927, a group of researchers led by Elton Mayo and Fritz Roethlisberger of the Harvard Business School were invited to join in the studies at the Hawthorne Works of Western Electric Company, Chicago. The experiment lasted up to 1932. The Hawthorne Experiments brought out that the productivity of the employees is not the function of only physical conditions of work and money wages paid to them. Productivity of employees depends heavily upon the satisfaction of the employees in their work situation. Mayo's idea was that logical factors were far less important than emotional factors in determining productivity efficiency. Furthermore, of all the human factors influencing employee behaviour, the most powerful were those emanating from the worker's participation in social groups. Thus, Mayo concluded that work arrangements in addition to meeting the objective requirements of production must at the same time satisfy the employee's subjective requirement of social satisfaction at his work place.

The Hawthorne experiment consists of four parts. These parts are briefly described below:-

  1. Illumination Experiment.
  2. Relay Assembly Test Room Experiment.
  3. Interviewing Programme.
  4. Bank Wiring Test Room Experiment.
  1. Illumination Experiment: This experiment was conducted to establish relationship between output and illumination. When the intensity of light was increased, the output also increased. The output showed an upward trend even when the illumination was gradually brought down to the normal level. Therefore, it was concluded that there is no consistent relationship between output of workers and illumination in the factory. There must be some other factor which affected productivity.
  2. Relay Assembly Test Room Experiment: This phase aimed at knowing not only the impact of illumination on production but also other factors like length of the working day, rest hours, and other physical conditions. In this experiment, a small homogeneous work-group of six girls was constituted. These girls were friendly to each other and were asked to work in a very informal atmosphere under the supervision of a researcher. Productivity and morale increased considerably during the period of the experiment. Productivity went on increasing and stabilized at a high level even when all the improvements were taken away and the pre-test conditions were reintroduced. The researchers concluded that socio-psychological factors such as feeling of being important, recognition, attention, participation,cohesive work-group, and non-directive supervision held the key for higherproductivity.
  3. Mass Interview Programme: The objective of this programme was to make a systematic study of the employees' attitudes which would reveal the meaning which their "working situation" has for them. The researchers interviewed a large number of workers with regard to their opinions on work, working conditions and supervision. Initially, a direct approach was used whereby interviews asked questions considered important by managers and researchers. The researchers observed that the replies of the workmen were guarded. Therefore, this approach was replaced by an indirect technique, where the interviewer simply listened to what the workmen had to say. The findings confirmed the importance of social factors at work in the total work environment.
  4. Bank Wiring Test Room Experiment: This experiment was conducted by Roethlisberger and Dickson with a view to develope a new method of observation and obtaining more exact information about social groups within a company and also finding out the causes which restrict output. The experiment was conducted to study a group of workers under conditions which were as close as possible to normal. This group comprised of 14 workers. After the experiment, the production records of this group were compared with their earlier production records. It was observed that the group evolved its own production norms for each individual worker, which was made lower than those set by the management. Because of this, workers would produce only that much, thereby defeating the incentive system. Those workers who tried to produce more than the group norms were isolated, harassed or punished by the group. The findings of the study are:-
    1. Each individual was restricting output.
    2. The group had its own "unofficial" standards of performance.
    3. Individual output remained fairly constant over a period of time.
    4. Informal groups play an important role in the working of an organization.

Contributions of the Hawthorne Experiment: Elton Mayo and his associates conducted their studies in the Hawthorne plant of the western electrical company, U.S.A., between 1927 and 1930. According to them, behavioural science methods have many areas of application in management. The important features of the Hawthorne Experiment are:-

  1. A business organization is basically a social system. It is not just a techno-economic system.
  2. The employer can be motivated by psychological and social wants because his behaviour is also influenced by feelings, emotions and attitudes. Thus economic incentives are not the only method to motivate people.
  3. Management must learn to develop co-operative attitudes and not rely merely on command.
  4. Participation becomes an important instrument in human relations movement. In order to achieve participation, effective two-way communication network is essential.
  5. Productivity is linked with employee satisfaction in any business organization. Therefore management must take greater interest in employee satisfaction.
  6. Group psychology plays an important role in any business organization. We must therefore rely more on informal group effort.
  7. The neo-classical theory emphasizes that man is a living machine and he is far more important than the inanimate machine. Hence, the key to higher productivity lies in employee morale. High morale results in higher output.

Elements of Behavioural Theory: There are three elements of behavioural theory.

  1. The Individual: The neoclassical theory emphasized that individual differences must be recognised. An individual has feelings, emotions, perception and attitude. Each person is unique. He brings to the job situation certain attitudes, beliefs and ways of life, as well as skills. He has certain meaning of his job, his supervision, working conditions etc. The inner world of the worker is more important than the external reality in the determination of productivity. Thus human relations at work determine the rise or fall in productivity. Therefore human relationists advocate the adoption of multidimensional model of motivation which is based upon economic,individual and social factors.>
  2. Work Groups: Workers are not isolated; they are social beings and should be treated as such by management. The existence of informal organization is natural. The neo-classical theory describes the vital effects of group psychology and behaviour on motivation and productivity.
  3. Participative Management: The emergence of participative management is inevitable when emphasis is laid on individual and work groups. Allowing labour to participate in decision making primarily to increase productivity was a new form of supervision. Management now welcomes worker participation in planning job contents and job operations. Neoclassical theory focuses its attention on workers. Plant layout, machinery, tool etc., must offer employee convenience and facilities. Therefore, neoclassical approach is trying to satisfy personal security and social needs of workers.

Human relationists made very significant contribution to management thought by bringing into limelight human and social factors in organizations. But their concepts were carried beyond an appropriate limit. There are many other factors which influence productivity directly. Modern management thought wants equal emphasis on man and machine and we can evolve appropriate man- machine system to secure both goals – productivity and satisfaction.

Limitations of Human Relations Approach:-

  1. The human relationists drew conclusions from Hawthorne studies. These conclusions are based on clinical insight rather than on scientific evidence.
  2. The study tends to overemphasize the psychological aspects at the cost of the structural and technical aspects.
  3. It is assumed that all organizational problems are amenable to solutions through human relations. This assumption does not hold good in practice.
  4. The human relationists saw only the human variables as critical and ignored other variables.
  5. The human relationists overemphasize the group and group decision-making. But in practice, groups may create problems and collective decision-making may not be possible.

Modern Theory (System Approach): The systems approach to management indicates the fourth major theory of management thought called modern theory. Modern theory considers an organization as an adaptive system which has to adjust to changes in its environment. An organization is now defined as a structured process in which individuals interact for attaining objectives.

Meaning of "System": The word system is derived from the Greek word meaning to bring together or to combine. A system is a set of interconnected and inter-related elements or component parts to achieve certain goals. A system has three significant parts:

  1. Every system is goal-oriented and it must have a purpose or objective to be attained.
  2. In designing the system we must establish the necessary arrangement of components.
  3. Inputs of information, material and energy are allocated for processing as per plan so that the outputs can achieve the objective of the system.

The Design of a Basic System

Systems Approach Applied to an Organization: When systems approach is applied to organization, we have the following features of an organization as an open adaptive system:-

  1. It is a sub-system of its broader environment.
  2. It is a goal-oriented – people with a purpose.
  3. It is a technical subsystem – using knowledge, techniques, equipment and facilities.
  4. It is a structural subsystem – people working together on interrelated activities.
  5. It is a psychosocial system – people in social relationships.
  6. It is co-ordinate by a managerial sub system, creating, planning, organizing, motivating, communicating and controlling the overall efforts directed towards set goals.

Characteristics of Modern Management Thought:

  1. The Systems Approach: An organization as a system has five basic parts -
    1. Input
    2. Process
    3. Output
    4. Feedback and
    5. Environment.
  2. It draws upon the environment for inputs to produce certain desirable outputs. The success of these outputs can be judged by means of feedback. If necessary, we have to modify out mix of inputs to produce as per changing demands.

  3. Dynamic: We have a dynamic process of interaction occurring within the structure of an organization. The equilibrium of an organization and its structure is itself dynamic or changing.
  4. Multilevel and Multidimensional: Systems approach points out complex multilevel and multi dimensional character. We have both a micro and macro approach. A company is micro within a business system. It is macro with respect to its own internal units. Within a company as a system we have:-
    1. Production subsystem
    2. Finance subsystem
    3. Marketing subsystem
    4. Personnel subsystem.
  5. All parts or components are interrelated. Both parts as well as the whole are equally important. At all levels, organizations interact in many ways.

  6. Multimotivated: Classical theory assumed a single objective, for instance, profit.
  7. Systems approach recognizes that there may be several motivations behind our actions and behaviour. Management has to compromise these multiple objectives

    eg: - economic objectives and social objectives.

  8. Multidisciplinary: Systems approach integrates and uses with profit ideas emerging from different schools of thought. Management freely draws concepts and techniques from many fields of study such as psychology, social psychology, sociology, ecology, economics, mathematics, etc.
  9. Multivariable: It is assumed that there is no simple cause-effect phenomenon. An event may be the result of so many factors which themselves are interrelated and interdependent. Some factors are controllable, some uncontrollable. Intelligent planning and control are necessary to face these variable factors.
  10. Adaptive: The survival and growth of an organization in a dynamic environment demands an adaptive system which can continuously adjust to changing conditions. An organization is an open system adapting itself through the process of feedback.
  11. Probabilistic: Management principles point out only probability and never the certainty of performance and the consequent results. We have to face so many variables simultaneously. Our forecasts are mere tendencies. Therefore, intelligent forecasting and planning can reduce the degree of uncertainty to a considerable extent.

Contingency Theory: Systems approach emphasizes that all sub- systems of an organization along with the super system of environment are interconnected and interrelated. Contingency approach analysis and understands these inter relationship sothat managerial actions can be adjusted to demands of specific situations or circumstances.

Thus the contingency approach enables us to evolve practical answers to problems demanding solutions. Organization design and managerial actions most appropriate to specific situations will have to be adopted to achieve the best possible result under the given situation. There is no one best way (as advocated by Taylor) to organize and manage. Thus, Contingency Approach to management emphasizes the fact that management is a highly practice-oriented discipline. It is the basic function of managers to analyse and understand the environments in which they function before adopting their techniques, processes and practices. The application of management principles and practices should therefore be continent upon the existing circumstances.

Contingency approach guides the manager to be adaptive to environment. It tells the manager to be pragmatic and open minded. The contingency approach is an improvement over the systems approach. It not only examines the relationships between sub-systems of the organization, but also the relationship between the organization and its environment.

However, the contingency approach suffers from two limitations:-

  1. It does not recognize the influence of management concepts and techniques on environment.
  2. Literature on contingency management is yet not adequate.

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