Taylor’s scientific management

approach
 Under this system the worker who met the
established standards of performance would earn
the basic wage rate set by management.
 The worker who produced the maximum output
would be rewarded.
 If the worker’s output exceeded the set target his
wages would increase proportionately.
Reorganization of supervision:
The work must be planned by the worker and not by
the foreman .this focused on two things separation
of planning and doing and functional
foremanship.
Scientific recruitment and training: training must be
imparted to bring out the best in a worker.
Intimate friendly co-operation between management
and workers.
Limitations of this approach:
1. It revolve round the operational level problems
and did not focus on the management of an
organization from a manager’s point of view.
2. Over emphasis on economic needs of a worker
did not lay emphasis on the social needs of the
workers.
3. Did not focus on job satisfaction.
He is best remembered for task and bonus system
and the Gantt chart.
Under Gantt’s incentive plan if the worker
completed his work in the less than the
standard time he would receive the bonus.
He also introduced an incentive plan for the
foreman who would be paid a bonus for every
worker who reached the daily standard.
Gantt chart : it is still used by many organizations.
 It compares the actual performance with the
planned performance.
 It indicates the production in time rather than
quantity.
 The horizontal axis in chart shows time work
scheduled, work completed.
 The vertical axis identifies the individuals and
machine assigned to the work schedules.
 It compares a firm’s scheduled output and
expected completion dates with what actually
produced in a year.
Job Week number

1 2 3 4 5 6 7 8

Scheduled activity time Time for non

productive activity
Actual progress
 This is another classical theory principles that
could be used by managers to coordinate the
internal activities of organizations.
 Most prominent theory is of Henry Fayol.
 Henri Fayol
 Prominent European management theorist.
 He became known to American Scholars after
writing his book General and Industrial
Management.
 BUSINESS OPERATIONS

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 DIVISION OF WORK(SPECIALIZATION)
 AUTHORITY AND RESPONSIBILITY
 DISCIPLINE(FOR RUNNING
ORGANIZATION SMOOTHLY)
 UNITY OF COMMAND
 UNITY OF DIRECTION (ALL THE
ACTIVITIES COME UNDER 1 PLAN ANS
SUPERVISED BY ONE PERSON ONLY)
 SUBORDINATION OF INDIVIDUAL
INTEREST TO THE GENERAL INTEREST.
 REMUNERATION: FAIR WAGES
 CENTRALIZATION
 SCALAR CHAIN
 ORDER (MATERIAL ORDER RIGHT THING
AT RIGHT PLACE ,SOCIAL ORDER RIGHT
PERSON AT RIGHT JOB)
 EQUITY
 STABILITY OF TENURE OF PERSONNEL
 INITIATIVE
 ESPIRIT DE CORPSE: SENSE OF UNION
 Buro meaning office refers to organizations
running on rational basis and not on the basis
of nepotism.
 Weber has propounded the formal structure of
working in an organization.
 Characterstics:

Work specialization
Abstract rules and regulations
Impersonality of managers
Hierarchy of organization structure.
 NOT MUCH POPULAR TODAYSTRICT
DIVISION OF LABOR DESTROYS
INDIVIDUAL CREATIVITY OF WORKERS.
 NOT UNIVERSALLY APPLICABLE TO
COMPLEX STRUCTURES.
 THEY DID NOT DEAL WITH LEADERSHIP
MOTIVATION ASPECT INFORMAL
RELATIONS THEY EMPHASISED ON
PRODUCTIVITY OVER OTHER ASPECTS OF
MANAGEMENT
 MARY PARKER FOLLET 1868-1933
 SHE GAVE MUCH MORE IMPORTANCE TO
THE FUNCTIONING OF GROUPS IN THE
WORK PLACE .
 ORGANIZATIONAL PARTICIPANTS WERE
INFLUENCED BY THE GROUP IN WHICH
THEY WORK.
 FOCUSED ON PRINCIPLE OF ‘POWER WITH
‘ THAN POWER OVER.
 ADVOCATED POWER SHARING.
 FINDING A SOLUTION ACCEPTIBLE TO ALL
MEMBERS.
 BASIS FOR MOTIVATION LEADERSHIP
TEAMWORK POWER AUTHORITY.
 ELTON MAYO(1880-1949)
 FATHER OF THE HUMAN RELATIONS
APPROACH
 STUDY CONDUCTED AT WESTERN
ELECTRIC’S HAWTRHONE PLANT 1927-1933
TO EVALUATE EMPLOYEE’S PSYCHOLOGICAL
REACTIONS IN –ON THE JOB
 ILLUMINATION EXPERIMENTS:
 1924-1927

 MANIPULATING ILLUMINATION FOR ONE

GROUP AND OTHER
 RESULT THE PERFORMANCE OF TESTING
GROUP ALSO INCREASED SO
ILLUMINATION WAS NOT AFFECTING
THIR PERFORMANCE.
 1927-1933
 CONCERNED WITH WORK HOURS FREQUENCY REST
PERIODS
 6 WOMEN WERE TAKEN FOR EXPERIMENT
 WORKED IN A RELAY ASSEMBLY ROOM ASSEMBLED A
SMALL DEVICE CALLED ELECTRICAL RELAY.

 IN THE ROOM CERTAIN THINGS ALTERED WAGES

INCREASED REST PERIODS OF VARYING LENGHTS
GIVEN , LEAVING WORK STATION WITH OUT TAKING
PERMISSION.
 SPECIAL ATTENTION INCREASED THE
PRODUCTIVITY.
 TERMED AS HAWTHRONE EFFECT.

 21000 PEOPLE WERE INTERVIEWED
 1928-1930
 TO EXPLORE THE REASONS FOR THE
HUMAN BEHAVIOUR AT WORK
 A COMPLAINT NOT AN OBJECTIVE
RECITAL OF FACT CAN BE A PERSONAL
DISTURBANCE SYMPTOM.
 OBJECTS PERSONS AND EVENTS CARRY
SOCIAL MEANING.THERE SATISFACTION
OR DISSATISFACTION IS PURELY BASED
ON HOW THEY PERCEIVE IT.
 PERONAL SITUATION OF CONFIGURATION
OF RELATIONSHIPS
 PERSONAL AND SOCIAL REFERENCE.
 POSITION AND STATUS OF EMPLOYEE
GAINING MEANING TO SITUATIONS
EVENTS.SOCIAL ORGANIZATION OF THE
COMPANY REPRESENTS SYSTEM OF VALUES
FROM WHICH HE DERIVES SATISFACTION OR
DISSATISFACTION.SOCIAL DEMANDS OF
WORKERS INFLUENCED BY SOCIAL
EXPERIENCES.
 1931-1932
 14 PARTICIPANTS WERE TOLD TO ASSEMBLE
TELEPHONE WIRING TO PRODUCE
TERMINAL BANKS.
 INCENTIVE PAY PLAN PAY INCREASED AS
THE OUTPUT INCREASED.

 GROUP ENCOURAGED NEITHER TOO MUCH

NOR TOO LITTLE
 GROUP INVOLVEMENT MORE IMPORTANT
THAN MONEY
 People are motivated by hierarchy of needs .
 His theory rested on three assumption:
 All of us have certain needs which are never
completely fulfilled.
 Through our actions, we try to fulfill our
unsatisfied needs.
 Human Needs occur in the following hierarchy
 Physiological Needs
 Safety or Security needs
 Belongingness or social needs
 Esteem or status needs
 Self Actualization
 Theory X
 People dislike work
 Most people must be threatened with punishment
before they work
 Most people prefer to be directed avoid
responsibility, little ambitious.
 Theory Y
 Work is a natural activity like play or rest
 People are self directed and self controlled if they
are committed to objectives
 People become committed to organization if they
are rewarded
 Matching human and organization
development
 He propounded maturity/immaturity theory
 Model 1 and Model 2 organization
 Employees in model 1 are manupulative and
pitied against each other, not willing to take
risk
 Employees in Model 2 are open to learning.
Their access to information gives them freedom
to make informed choices which increases their
willingness to take risk.
 Emerged during world war –II.
 Managers/Government Officials/Scientist
were brought together to utilise resources
efficiently and effectively.
 Mathematical approaches were used
 3 main branches of this approach are –
 Management Science
 Operations Management
 Management Information Systems
 Management Science – Mathematical models and
statistical methods for decision making
 Management science techniques widely used are
capital budgeting, cash flow management,
production scheduling, development of product
strategies, planning for human resource
development programmes etc.
 Various mathematical tools used, the program
evaluation review technique, the critical path
method etc.
 Since one person cannot have all these
mathematical and statistical skills, these
quantitative methods require a team approach to
decision making.
 Operations Management – It is concerned with
inventory management, work scheduling,
production planning, facilities location and design,
quality assurance.
 Various tools used by Operations managers are
forecasting, inventory analysis etc.
 Management Information System – it focuses on
designing and implementing computer based
information systems for business organizations.
 It converts raw data into information and provides
needed information to each manager at the right
time in the needed form.
 Cruchman West was the pioneer of systems
approach to management.
 Four components of this theory – Inputs,
Money, Materials, Men, Machine and
Information sources are required to produce
goods and services
 Transformation processes – Managerial
techniques used to convert inputs into Outputs
 Outputs :product , services, profit.
 Two types of systems:
 Open system which interacts with the
environment.
 Closed system which does not interact with the
environment.
 Contingency theory: also known as situational
theory.
 Acc to this theory there is no one best way to
manage all situations.
 Paul Hersey and Ken Blanchard propounded this
theory the task of managers is to identify which
technique will be used in a particular situation at a
particular time best contribute to the attainment of
goals.
 Theory Z:William Ouchi conducted a research on
both American and J apanese theory and
propounded theory Z. the theory Z involves
providing employees with job security to
employees for rnsuring their long term loyalty
towards organization.
 Involves job rotation for cross functional skills.
 Lays emphasis on participation of employees.
 Training and development
 Quality management: another new approach
which is gaining importance these days.
 Continuous improvement in quality of
products services to achieve higher level of
customer satisfaction.
 https://youtu.be/ZRU9ERi-GtM