MBP Management behavior practices Introduction

DEFINITIONS:
• “Management is the art of getting things done through and with people in
formally organized groups” --- Koontz
• “Management is the art of getting things done through and with people”
--- Mary Parker
• “Management is the art of knowing what you want to do and then seeing
that it is done in the best and cheapest way” -
-- F.W. Taylor
• “Management is the accomplishment of results through the efforts of
other people”
--- Lawrence
• “Management is to manage is to forecast and plan, to organize, to
command, to coordinate and control”.
-- Henry Fayol

What Managers Do
Managerial Activities
• Make decisions
• Allocate resources
• Direct activities of others
to attain goals

Nature/Charactersitics of Management
• Multidisciplinary
• Group Activity
• Factor of Production
• Social Process
• Dynamic Function
• Management: Science or Art
• Management as profession
• Universality of management
• Management is a Situational in Nature
• Intangible force

What is Management?
• Management involves coordinating and
overseeing the work activities of others so
that their activities are completed efficiently
and effectively.
• Or Management is the art of getting work
done through others

2 IMPORTANT WORDS FOR
MANAGEMENT:
EFFICIENCY AND EFFECTIVENESS

Efficiency and Effectiveness
Efficiency Effectiveness
• Efficiency = getting the
most output from the least
amount of inputs
• “doing things right way”
• concern with means(ways)
of getting things done
• Effectiveness = do those
work activities that will help
the organization reach its
goals
• “doing the right things”
• concern with ends(result) of
organizational goal
achievement

Efficiency and Effectiveness
Efficiency Effectiveness
• Efficiency = getting work
done with a minimum
effort, expense, or waste
• (use resources – people,
money, raw materials–
wisely and cost-effectively)
• Effectiveness = accomplish
tasks that help fulfill
organizational objectives
• (make the right decisions
and successfully carry them
out to accomplish the org.
goal)

Efficiency and Effectiveness in
Management
Resource
Usage
Goal
Attainment
Management Strives for:
Low Resource Waste (high efficiency)
High Goal Attainment (high effectiveness)
Low Waste High Attainment
Efficiency (Means) Effectiveness (Ends)

Functions of Management
• Management experts have given different classifications for
management functions:
Names of Contributors Functions
Henry Fayol Planning, Organizing, Commanding,
Coordinating Controlling
Luther Gulick POSDCORB
R C Davis Planning, Organizing and Controlling
E F L Brech Planning, Organizing, Motivating,
Coordination, Controlling
Koontz & O’Donnell Planning, Organizing, Staffing, Leading,
Controlling
George Terry Planning, Organizing, Actuating, Controlling
Lyndall Urwick Planning, Organizing, Commanding,
Coordinating, Communicating, Forecasting
and investigating
Peter F Drucker Objective setting, Decision-making,
Organizing and Motivating
Modern Views Planning, Organizing, Staffing, Directing and
Controlling.

• Planning: It is a primary function of Management. It is a thinking process. It
determines future course of action by deciding what to do(type of work), why
to do (objectives), when to do (time), where to do (places or location), how to
do(method) and who are going to do(people).
• It helps in selecting the best course of action, among other alternatives that can
contribute the most to the objectives of the organizations.
• Planning is a continuous process. It is required to ensure effective utilization of
human and non-human resources to accomplish the desired goals.
• The process of planning thus involves the following activities:
– Analyzing the business environment
– Establishing the objectives
– Setting planning premises
– Identifying the alternatives
– Evaluating alternatives
– Selecting best alternative
– Formulating secondary plans
– Implementing the plan and reviewing the results.

• Organizing: Once planning is implemented, the people in the
organization have to be organized.
• Organizing brings together the manpower and material
resources for the accomplishment of pre-determined goals.
• Organizing is the process of establishing relationships among
the members of the organization. This relationship is created
in the form of authority and responsibility.
• Each member in the organization is assigned a specific duty to
perform and is granted the corresponding authority to do it.
• In the words of Louis A. Allen, “Organization is the process of
identifying and grouping the work to be performed and
dividing it among the individuals and creating authority and
responsibility relationship among them for the
accomplishment of objectives.”

• Need to have an Organization Structure
• Organization Structure is the framework within which an
organization function

• The process of organizing thus involves the following
activities:
– Identifying the activities involved in achieving the
objectives
– Grouping the activities into a logical pattern
– Assigning the activities to employees
– Delegating authority and fixing responsibility
– Coordinating the authority-responsibility relationships of
various activities.

• “Staffing involves acquiring, maintaining and developing necessary human resources
for a smooth functioning of various operations in the organization”
• It performs all the necessary activities required from recruitment of employees to
their retirement.
• It ensures that a right person is appointed for the right post at the right time.
• Staffing is also known as Personnel Management or Human Resource Management.
• It involves:
– Manpower planning, determining the need for people
– Recruitment, selection and induction of employees
– Training and development of employees
– Wage and salary administration
– Promotion and transfer
– Performance appraisal
– Grievance handling and maintaining good relations
– Security and welfare activities.

• Directing involves instructing, guiding, inspiring and
supervising employees to make them work according to the
plan. It is also known as Commanding or Executing function.
• The efforts of employees can be directed by using some
techniques/tools. It includes
– Communication is concerned with providing and receiving
necessary information within the organization.
– Supervision: concerned with observing and correcting
employee’s performance. It involves overseeing people at work.
– Leadership: concerned with guiding and instructing employees at
work
– Motivation: concerned with inspiring and encouraging people at
work
– Coordination: Bring all the work together

• Controlling is measuring and correcting individual and organizational
performance to ensure that events conform to plans.
• It is useful in finding out what is wrong and how it can be rectified.
• The process of controlling involves the following steps:
– Setting standards (expected results)
– Measuring actual results
– Comparing actual results with expected results
– Identifying deviation between actual results and expected results
– Taking corrective actions so that actual results match with
expected results.
• It should be noted that both planning and controlling are interrelated
and interdependent.
• Controlling ensures effective implementation of the plan.

Levels in Management
• Levels in management refer to the classification of
managerial functions on the basis of their relative
importance.
• The number of levels in an organization depends on
factors like ownership structure, management
philosophy, nature and size of business, dispersion of
activities and resource capacity.
• Levels of Management are broadly classified into three
levels- Top, Middle and Bottom.
• Top level is comprised of key position holders
• Middle Level includes departmental, divisional and
sectional heads
• Bottom level is made up of senior, functional and
frontline supervisors.

Levels in Management – Top Level
• Functions of Top Level Management:
– Analyze and capture the business environment and determine
the firm’s response to it
– Determine basic objectives for the enterprise
– Formulate main long-term policies, rules, procedures, budgets
etc.,
– Decide the structure of the organization and select top
executives
– Deal with matters related to financial and technological issues
– Finalize strategic decisions such as long-term contracts, mergers
and acquisitions etc.,
– Guide, supervise, review and control middle level executives
– Integrate efforts of departmental heads
– Motivate employees and boost their morale
– Build and maintain healthy public relations and represent the
unit to the outside world.

Levels in Management – Middle Level
• The executives and middle level perform the following functions:
– Carry out operations according to the plan formulated by the
top level
– Make arrangement for necessary resources and facilities for the
department
– Coordinate and control efforts of people working in their
department
– Maintain amicable relations with other departments
– Serve as the link between the top level and operating level
– Recruit, select and train supervisory personnel
– Motivate employees working at the lower level
– Collect and analyze necessary information and prepare report
for the top management
– Guide, instruct and control lower level employees
– Perform any task assigned by the higher authority

Levels of Management- Lower/Bottom Level
• Functions of Lower Level Management:
– Extend all possible cooperation to higher authorities in
implementing departmental plans
– Prepare and implement operating plans for carrying out day-to-
day activities effectively
– Deal with recruitment, selection and training for workers
– Supervise and control activities of workers
– Maintain discipline and order at work place
– Create and maintain healthy work climate
– Manage necessary materials and facilities for workers
– Communicate problems of workers with higher authorities and
seek suitable solutions
– Report performance of workers to the higher authority
– Perform any activity assigned by the higher authority.

Managerial skills and Competencies.
• A skill is an ability to translate knowledge into
action that results in a desired performance.
• Robert L Katz identified three kinds of skills for
administrators
– Technical.
– Human.
– Conceptual.

Managerial Skills :Technical
• An ability to perform specialized tasks.
• Derives from knowledge of expertise gained
from education or experience.
• Proficiency at using select methods,
processes, and procedures to accomplish
tasks.

Managerial Skills: Human
• An ability to work well with other people.
• Emerges as a spirit of trust, enthusiasm, and
genuine involvement in interpersonal
relationships.
• Capacity for understanding and empathizing.
• Engages in persuasive communication.
• Deals successfully with conflicts.

Managerial Skills: Conceptual and
Design
• An ability to see and understand how the
system works, and how the parts are
interrelated.
• Used to:
– Identify problems and opportunities.
– Gather and interpret relevant information.
– Make good problem-solving decisions.

Managerial Roles
• According to Mintzberg, a Manager should be
regarded as playing the following ten different roles:
Category Roles
Interpersonal
• Figurehead
• Leader
• Liaison
Informational
• Monitor
• Disseminator
• Spokesperson
Decisional
• Entrepreneur
• Disturbance Handler
• Resource Allocator
• Negotiator

Managerial Roles contd…..
• Interpersonal Category: The managerial roles
in this category involve providing information
and ideas.
– Figurehead – In this role, every manager has to perform some duties
of a social, ceremonial and legal nature. Figurehead is expected to
be a source of inspiration. People look up to this role as a person
with authority, and as a figurehead. (greeting touring dignitaries,
managing important customers etc)
– Leader – This is where a manager leads the teams or department. As
a leader, every manager must motivate and encourage his
employees.
– Liaison – Managers must communicate with internal and external
contacts. Manager must be able to network effectively on behalf of
the organization. He should cultivate network outside his vertical
chain of command to collect information useful for the organization.

• Informational Category: The managerial roles
in this category
involve processing information.
– Monitor – In this role, the manager should scan the environment
and look for relevant changes in the environment. Manager also
should monitor the team, in terms of their productivity, and their
well-being.
– Disseminator – This is where the manager communicates
potentially useful information to the colleagues and team.
– Spokesperson – Managers represents and speaks for their
organization. In this role, the manager is responsible for
transmitting information about the organization and its goals to the
people outside it.

• Decisional Category: The managerial roles in this
category involve using information.
– Entrepreneur – in this role, the manager proactively looks out
for innovation to improve the organization. This means solving
problems, generating new ideas, and implementing them.
– Disturbance Handler – When an organization or team hits an
unexpected roadblock, it's the manager who must take charge.
Manager must seek solutions of various unanticipated
problems.
– Resource Allocator – the manager also need to determine
where organizational resources are best applied. This involves
allocating funding, as well as assigning staff and other
organizational resources.
– Negotiator – Manager is needed to take part in, and direct,
important negotiations within the team, department, or
organization. CEO with union leaders about any strike, foreman
with workers on grievance redressal.

Evolution of Management
Thought

• Two pre-twentieth-century events played
significant roles in promoting the study of
management

• Adam Smith’s contribution in the field of
management
• Influence of Industrial Revolution in
management practice.

Adam Smith
Adam Smith
• His contribution in Wealth of Nations (1776)
outlined the economic advantage that
organization and society can gain from the
division of labor.
• He used the pin-manufacturing industry for his
example.
• Smith concluded that division of labor increased
productivity by increasing each worker’s skill, by
saving time lost in changing tasks, and by creating
labor-saving inventions and machinery.

Industrial Revolution
• The major contribution of the industrial revolution was
the substitution of machine power for human power,
which in turn, made it more economical to
manufacture goods.
• The advent of machine power, mass production, the
reduced transportation costs that followed a rapid
expansion of the railroads and lack of governmental
regulation also fostered the development of big
organization.

Evolution of Management Thought

• The evolution of Management thought during
the last hundred years can be studies in three
parts:
Approaches Studies in each approach
Early Classical Approach Scientific Management/ Taylorism
Administrative Management
Bureaucracy
Neo-classical Approaches Human Relations Movement
Behavioral Approach
Modern Approaches Quantitative Approach,
Systems Approach
Contingency Approach

Name of the Contributor Contributions
Scientific Management
Fredrick W Taylor Father of Scientific Management. Primary
concern is to increase productivity by applying
scientific method.
Henry L. Gantt Scientific selection of workers. And
“harmonious Cooperation” Developed Gantt
chart.
Frank and Lillian Gilbert Frank is known for Time and Motion study.
Lillian focused on human aspects of work and
understanding of worker’s personalities and
needs

contd…..
Name of Contributor Contributions
Modern Operational Management Theory
Henry Fayol Referred as the “Father of Modern Management Theory”.
Divided industrial activities into 6 groups: technical,
commercial, financial, security, accounting and managerial.
Formulated 14 principles of Management
Behavioral Sciences
Hugo Munsterberg Application of psychology to industry and management
Walter Dill Scott Application of Psychology to advertising, marketing and
personnel
Max Weber Theory of Bureaucracy
Vilfredo Pareto Father of Social Systems Approach to Organization and
Management
Elton Mayo and F J Roethlisberger Famous studies at Hawthorne plant of the Western Electric
Company on the influence of social attitudes and
relationships of work groups on performance.

contd…..
Name of Contributor Contributions to Management
Systems Theory
Chester Barnard Suggested a comprehensive social systems approach to
managing.
Modern Management Thought
Peter F Drucker Prolific writer on many general management topics
Edward Deming Introduced Quality Control in Japan
Laurence Peter Observed that eventually people get promoted to a level
where they are incompetent
William Ouchi Discussed selected Japanese managerial practices adapted in
the US environment
Thomas Peters and Robert Waterman Identified characteristics of Companies they considered
excellent.

Early Classical Approach- Scientific
Management
• Scientific management means application of
the scientific methods to the problem of
management. It conducts a business or affairs
by standards established by facts or truth
gained through systematic observation,
experiments, or reasoning.

Charles Babbage (1792-1871):
• Concentrated on developing the efficiencies of labour
production. He, like Adam Smith, was a proponent of the
specialization of labour, and he applied mathematics to the
efficient use of both production materials and facilities.
His main contributions are as follows:
– He stressed the importance of division of and assignment to
labour on the basis of skill.
– He recommended profit-sharing programs in an effort to foster
harmonious management-labour relations.
– He stressed the means of determining the feasibility of
replacing manual operations with machines.

Management
• Fredrick Winslow Taylor is considered to be the Father of Scientific
Management.
• He developed the Scientific Management theory/ Taylorism
• Scientific Management is applying science to work which means
systematically studying the tasks at micro level to speed up the
work and increase the efficiency.
• The main objective is improving economic efficiency and labor
productivity.
• 4 Important Principles of Scientific Management
(1) Science, Not Rule of Thumb:
(2) Harmony, Not Discord:
(3) Cooperation, Not Individualism:
(4) Development of Each and Every Person to His / Her Greatest Efficiency
and Prosperity:

Science, Not Rule of Thumb
• Rule of thumb refers to a principle with broad application
that is not intended to be strictly accurate or reliable for
every situation.
• It refers to an easily learned and easily applied procedure
or standard, based on practical experience rather than
theory
• Scientific Management proposed applying standardized
methods and tool to increase the output, quality & reduce
costs and wastages
• Words of Taylor “Scientific Management means knowing
exactly what you want men to do and seeing that they do
to in the best and cheapest way”

• Steps Involved
– Investigation of Traditional methods
– Unifying the best practices
– Developing a standard method
– Selecting ‘one best method’-saves time, effort,
money and resources

Harmony, Not Discord
• There should be complete harmony between
management and workers
• Complete mental revolution on part of
management and workers.
• Means that management and workers should
transform their thinking.
• Management share the gains of the company –
Workers. Workers- should work hard –Improve
business.

Cooperation, Not Individualism
• Cooperation between labour and
management.
• Competition should be replaced by
cooperation.
• Constructive suggestions made by the
employees should not be ignored & rewarded.
• Equal division of work and responsibility
between workers and management.

Development of Each and Every Person to
His/Her Greatest Efficiency and Prosperity
• Each person should be efficiently selected. Work
assigned should suit his/her physical, mental and
intellectual capabilities.
• Train Employees if needed.
• Training-essential-learn best method –ensure
efficiency for workers and organization.

• The following are the contributions of F W Taylor:
– Time and Motion Study
– Differential Payment
– Drastic Reorganization of Supervision
– Scientific Recruitment and Training
– Cooperation between the Management and Workers

Management
• Time and Motion Study
– Time is the least amount of time on an average to perform
each task or part of a task
– Motion is the fewest number of motions required for each
task- Frank and Lillian Gilbreth
– Shoveling experiment– 26 pounds to 21.5 pounds- Time
Study- Taylor
– Surgical nurse assistance, Assembling and disassembling of
weapons in the army- Motion Study
– Under time and motion study, each motion of a job was to be
timed with the help of a stop watch and shorter and fewer
motions were to be developed. Thus the best way of doing a
job was found. This replaced the old rule-of-thumb knowledge
of the workman.

Management
• Differential Payment: Taylor introduced a new payment plan called
the Differential piece work, in which incentives are linked with
production. Under this plan, a worker receives low piece rate if he
produces standard number of pieces and high rate if he surpasses
the standard. Taylor suggested the high piece rate would motivate
workers to increase production.
• Drastic Reorganization of Supervision: Taylor suggested Separation
of planning and doing work and functional foremanship. The work
should be planned by a foreman and not by the worker. And there
should be as many foreman as there are special functions involved
in doing a job. Functional foremanship is a factory management
technique that advocates for having multiple foremen in different,
specialized roles. Planning Foreman: Instruction Card Clerk, Route
clerk, Time and Cost clerk, Disciplinarian. Production Foreman:
Speed Boss, Gang Boss, Repair Boss and Inspector.

Management
• Scientific Recruitment and Training: Taylor
emphasized the need for scientific selection and
development of workers. Management should
develop and train every worker to bring out his
best skills and to enable to do better work.
• Cooperation between the Management and
Workers: leads to increase in the production,
which increases the profits and results in better
understanding and better earnings.

Management
• Henry Laurence Gantt was an American mechanical engineer and management
consultant who is best known for his work in the development of scientific
management.
• Gantt insisted that willingness to use correct methods and skills in performing a
task was important as knowing the methods and having the skills in the first place.
• Thus, he highlighted the importance of human element in productivity and
propounded the concept of motivation.
• He redesigned the incentive system developed by Taylor.
• Gantt’s incentive system:
– Every worker who finishes the day’s assignment is given 50% bonus for that
day.
– The foreman too earns bonus for each worker who finishes the daily standard
+ extra bonus if all the workers reaches the standard.
• He developed Gantt Charts. These charts records the worker’s progress on
individual bar charts and inked black on the days if standard is achieved and red on
the days the progress is below the standard.

Early Classical Approach-
• Henri Fayol is considered as the Father of
Administrative Management Theory.
• The study focuses on development of board
administrative principles applicable to general
and higher managerial levels.
• Fayol synthesized the 14 principles of
management which serve as a guidelines for
decision-making and management actions.
• They are drawn up by means of observations and
analyses of events that managers encounter in
practice.

• Division of Work (Specialization): According to Henri
Fayol specialization promotes efficiency of the workforce and
increases productivity. In addition, the specialization of the
workforce increases their accuracy and speed.
• Authority and Responsibility: As the management consists of
getting the work done through others, it implies that the
manager should have the right to give orders and power to
extract obedience. According to Henri Fayol, the
accompanying power or authority gives the management the
right to give orders to the subordinates.
• Discipline: is the obedience to authority, observance of the
rules, respect for the agreements, sincere efforts to complete
the work etc., It is often a part of the core values of a mission
and vision in the form of good conduct and respectful
interactions.

Early Classical Approach- Administrative
Management
• Unity of Command: This principle requires that each employee
should receive instructions about a particular work from one
superior only. If an employee has to report to more than one
superior, he would be confused due to conflict in instructions.
• Unity of Direction: This principle means that there should be
complete identity between individual and organizational goals on
the one hand and between department goals and organizational
goals.
• Subordination of Individual Interest to General Interest: This
principle states that general interest is superior to the individual
interest. The interests of any one employee or group of employees
should not take precedence over the interests of the organization as
a whole. An individual is interested in maximizing his own
satisfaction through more money, recognition and status etc., this
individual interest is against the general interest which lies in
maximizing production. Hence the need to subordination of
individual interests to general interests.

• Remuneration: the remuneration paid to the personnel
should be fair. It should be based on business conditions, cost
of living, productivity of concerned employees and capacity of
the firm to pay. Fair remuneration increases worker’s
efficiency and morale and fosters good relations between
them and the management.
• Centralization and Decentralization: This refers to the degree
to which subordinates are involved in decision making. If
employees are given more role and importance in decision
making, it is Decentralization. If employees involvement in
decision making is very little, it is Centralization. The
management decides the degree of centralization on the basis
of types of activities, size and nature of organization. The
objective is to optimum utilization of all faculties of the
personnel.

• Scalar Chain: The line of authority from top
management to the lowest ranks represents the
scalar chain. It is the “Chain of Superiors”
Communications should follow in this chain. Gang
Plank avoids delays and allows direct communication
between two subordinates at the same level.

• Order: This principle is concerned with systematic arrangement
of men, machine, material etc. There should be a specific place
for every employee in an organization. That is 'a place for
everything (people) and everything has a place'.. To observe this
principle, there is need for scientific selection of competent
personnel. Correct assignment of duties to personnel and good
organization.
• Equity: All the employees must be treated equally with respect.
Equity results from combination of kindness and justice. It
ensures healthy industrial relations between management and
labour which is essential for the successful working of the
organization.
• Stability of tenure of Personnel: To motivate the employees,
the management has to assure job security. If employee has
fear of insecurity of job, their morale will be low which results
in lower performance.

• Initiative: Innovation is possible only when the
employees are encouraged to take initiatives. It is the
freedom to think and execute a plan. The zeal and
energy of employees are augmented by initiative.
• Esprit de Corps: This principle means “Unity is
Strength” which results in team spirit. Organization
should create team spirit among the employees.
Harmony and unity among the staff are a great source
of strength of the organization. Fayol suggests to avoid
the motto of “divide and rule” and promotion of
verbal communication to overcome
misunderstandings.

Early Classical Approach- Bureaucratic
Theory
• Around 1910, Max Weber made a study on
various organizations.
• He is considered as the Father of Bureaucracy.
• Bureaucracy states that employees performing a
large variety of tasks in any organization must
follow established rules and regulations in order
to ensure uniformity and rationality of output.
• Bureaucracy is a system of administration in
which most of the important decisions are taken
by Top management rather than by managers.

Neoclassical Approach- Human
Relations Movement
• Human relations movement refers to the study of behaviour of
people in groups, particularly in workplace groups in relation to
Organizational Development.
• The first intensive and systematic analysis of Human behaviour was
made in the form of Hawthorne experiments.
• Hawthorne studies were conduced by Elton Mayo and Fritz
Roethlisberger with the workers at the Hawthorne plant of Western
Electric Company, Chicago.
• The reason to conduct the studies is to identify the factors that
fluctuates productivity of a worker.
• WEC was manufacturing Telephone system bells. 30,000 employees
participated in the study.
• Company provides pension, sickness benefits and other
recreational benefits but employees were dissatisfied which
resulted in inefficient productivity.
• The experiments were conducted in 4 phases from 1924-32.

Hawthorne Experiment
– Place: Hawthorne plant of
Western Electric Company,
Chicago
– Conducted by: Team by Elton
Mayo and Fritz
Roethlisberger
– Reason: To know the factors
that brings fluctuation in
workers Productivity.

Relations Movement
Four Parts of Hawthorne Experiment
• Illumination experiment. (1924-27)
• Relay assembly room experiment. (1927-29)
• Bank wiring observation room experiment.
(1928-30)
• Mass interview program.(1932)

Neoclassical Approach- Human Relations Movement
• Illumination Experiment: There were two groups via
Experimental Group (varying illumination) and
Control Group (Constant illumination).
• Illumination Experiment were conducted to find out
how varying level of amount of light at the work
place(Physical Factor) affects productivity.

Relations Movement
• The researchers found that as the illumination
increased in the Experimental group, the production
increased.
• When the intensity of light decreased, the production
still increased.
• The production in experimental group decreased only
when the illumination was decreased to the level of
moonlight.
• Thus, it was concluded that illumination did not have
any effect on productivity.
• They found out that something was inferring the
productivity which resulted in the Phase 2 experiments
called as Relay Assembly Test Room Experiment.

Relay Assembly Test Room Experiment:
• Designed to determine the effect of changes in
various job condition on job productivity.
• Researchers set up a Relay assembly test room with a
group of 6 women. Which involved assembly of
telephone relays
• The experiment started with introducing various
changes in 4-6 weeks duration.

• Telephone relay. A relay having a multiplicity
of contacts on long spring strips mounted
parallel to the coil, actuated by a lever arm or
other projection of the hinged armature; used
chiefly for switching in telephone circuits.

Relations Movement
Relay Assembly Test Room Experiment:
• Change in Incentive System: Extra pay for woman if the
productivity increased. This change resulted in increased
productivity.
• 2 Rest pauses, 5/10 minutes each; Morning and evening.
The rest pause time increased to10 minutes later. This
resulted in increased productivity.
• 3 Rest pauses 5 minutes each. This resulted in slightly
decreased productivity because this effected rhythm in the
work.
• The 2 rest pauses 10 minutes each with coffee/soup &
Sandwich. Productivity increased.
• 5 working days and lesser working hours: Productivity
increased.

Relations Movement
• Relay Assembly Test Room Experiment: As
changes were introduced, the absenteeism
decreased, morale increased and less supervision
was required.
• The final change is reverting back to the original
position with no breaks and no benefits. The
productivity still increased.
• It was concluded that the productivity is effected
only by the attitude of the worker and not the
benefits provided by the organization.

Relations Movement
• Mass Interviewing Programme: 20,000 workers were
interviewed. To study the human behavior in the company.
• Theme: Determine employees attitude towards company,
supervision, insurance plans, promotion and wages.
• Directive questions were asked which were close- ended. The
replies were guarded so non-directive questions were asked.
• The interviewers were allowed only to listen and not to argue
or guide.
• This method gave valuable insights like:
– Worker’s behaviour is influenced by group behaviour.
– The worker behaviour is influenced by social experience in
groups both inside and outside the work place.

Relations Movement
• Bank Wiring Observation Room Experiments: The work involved
attaching wire with switches for certain equipment used in
telephone exchanges.
• Group of 14 male workers
• Hourly wage for each worker was fixed on the basis of average
output of each worker. Bonus as also payable on the basis of
group effort.
• 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. The
productivity was not increased.
• This study suggested that informal relationships are more
important factor in determining the human behaviour.
• The reasons of less productivity are fear of unemployment and
fear of increasing the standard and protection of slower workers.

Relations Movement
Characteristics of Human Relations Approach
• The organization is a social system.
• System is composed of many interacting group.
• Many informal groups emerge at work place.
• They have great impact on the behavior of
members.
• Workers don’t always behave rationally (emotions,
feelings, values pay an important role)
• Monetary gains alone cannot motivate workers.

Neoclassical Approach- Behavioral
Approach
• Behavioral approach is an improved and a more
mature version of the human relations approach.
• Douglas McGregor’s Theory X and Theory Y,
Abraham Maslow’s Hierarchy of needs, Kurt
Lewin’s Change Theory and Chester Barnard’s
Acceptance theory of Authority contributed
majorly to this approach.
• Behavioral theorists believed that a better
understanding of human behavior at work, such
as motivation, conflict, expectations, and group
dynamics, improved productivity.

Modern Approach- Quantitative
Approach
• The quantitative school of management is a
result of the research conducted during World
War II (1939 - 1945)
• The Quantitative approach to management
involves the use of quantitative techniques, such
as statistics, information models, and computer
simulations, to improve decision making.
• This approach encourages managers to use
mathematics, statistics, and other quantitative
techniques to make management decisions.

Modern Approach- Systems Approach
• Major contributors to Systems approach are
Chester Barnard, George Homans and Herbert
Simon.
• Systems approach views a company as an
interconnected purposive system that consists
of several business sections.
• A system is a set of different independent
parts working together in an interrelated
manner to accomplish a set of objectives.

Features of System
• A system is a combination of parts, subsystems.
• A system is interdependent parts: Each part represents a
department or a sub-system. Each department has its
sub-system. Continuous and effective interaction of sub-
systems helps to attain goals of the larger system.
• System is not merely totality of parts. The whole is
greater than sum of individual parts.(Synergy).
• Every System has a boundary: Organizations being social
systems do not have clearly observable boundaries. The
activities necessary for their transformation process
define their boundaries. A boundary defines the scope
of a system.
• A system is either open or closed: An open system is one
which interacts with its environment. The closed system
is one which is independent of the environment. Every
systems needs to interact with the external environment
for better adaptation.

• A system transforms inputs to output.

“no one best way to do things”

It suggests that managers must do what the situation
warrants or managers actions must be contingent upon
the organizational situation or environment.

Contingency approach
• It is an extension of systems approach.
• This approach is based on Contingency Theory of Leadership
Effectiveness developed by Fred Fielder.
• In the 1970s, it was felt that none of the approaches to
management had all the solutions to all the problems in an
organization.
• The task of a manager is to identify which technique will, in a
particular situation, under particular circumstances and at a
particular time, best contribute to the attainment of goals.
• The best way to organize depends on the nature of the
environment to which the organization must relate.

Assumptions for contingency approach
• Each organization is unique.
• External environment of each organization is different and unique.
• Sub-systems of organization are interrelated.
• There cannot be one best way of doing a thing.
• Best approach to management is situational.
• Key to a manager’s success lies in his ability to perceive and analyze
every situation.

• Real life business examples
“there is no one right way of leading and that a
leader must adjust their style depending on the
context”

• What you do “depends” on the “situation”.
-internal contingency factors
-external contingency factors

Internal Contingency Factors
• Purpose
• Technology
• Structure/Size

External Contingency Factors
• Socio-cultural Factors
• Legal/Political Factors
• Economic Factors
• Technological Factors

• General Environment of Coca Cola

Advantages of Contingency Approach
to Management
• Contingency approach is dynamic in nature. So, it
changes according to the situations. it allows
managers to change the policies according to the
situation.
• Contingency approach helps the manager to
enhance their leadership and decision-making
skills.
• Contingency approach provides options to the
employees, that helps them to grow and share
their ideas to the business.

Disadvantages of Contingency
Approach to Management
• Contingency approach has a complex approach.
The suggestion of the approach is very simple but
when it comes to practical it becomes more
complex.
• Contingency approach is basically reactive in
nature. Sometimes the handling the situations
become hard for the manager.
• Contingency approach suffers from inadequately
of literature. It is not sufficient to say that ‘a
managerial action depends on the situation’.

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