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Flash Revision Series -

PPM
By- Lakshmi Kushwaha
 2

NTA UGC NET/JRF 2021

Industrial Relations and Labour welfare/HRM
CODE 55
Paper 2

Presented by
Lakshmi Kushwaha
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 Stages in the history of development of
Management Theory(Herbert G. Hicks)

The Neo Classical

The Classical Approach The Modern Approach
Approach

Bureaucratic Model Human Relation

Movement Quantitative Approach
Maxweber(1900)
Elton Mayo &
Roethlisberger (1930

Scientific Management System Approach

F.W Taylor(1910)
Function & administrative
Henry Fayol(1910)
Behavioral Sciences Boulding & Johnson(1950)
A. Maslow, Mc.
Gregor(1940)
Contingency Approach
Lash , Lawrence
 School of Thought of
Management

Classical Administrative
Classical Scientific Theory
Theory

Contributors: Fredrick Contributor: Max weber,

Taylor, Henry Gantt, Henri Fayol, Mary parker
Frank & Lillian Gilbert Follett, Chester I Barnard
 1. Scientific Management Theory(F.W
Taylor)
1. The Scientific Management Theory is well known for its application of
engineering science at the production floor or the operating levels.
2. The major contributor of this theory is Fredrick Winslow Taylor, and that’s why
the scientific management is often called as “Taylorism”. He is a Father of
Scientific Management Approach. And also, he popularized as Father of
Industrial Engineering and Efficiency Movement.
3. Is also called the classical management theory, emphasizes efficiency.
4. The major emphasis is on increasing the production through the use of
intensive technology, and the human beings are just considered as adjuncts to
machines in the performance of routine tasks.
5. Taylor published a book entitled, The Principles of Scientific Management, in
1911.
Principles of Scientific Management
Science not rule of thumb

Harmony and not discord

Principles of Scientific
Mental Revolution
Management

Co-operation , not individualism

Selection , training and

development in scientific manner
Techniques of Scientific Management
1. Functional Foremanship

2. Motion Study

3. Time Study
Techniques
4. Differential Piece Wage System

5. Standardization

6. Work study
 2. Classical Administrative School(
Bureaucracy theory-Max Weber)
Max Weber who was the first to use and describe the term bureaucracy.
This is also known as the bureaucratic theory of management, bureaucratic
management theory or the Max Weber theory.

what is bureaucracy?
• “Bureaucracy is an organisational structure that is characterised
by many rules, standardised processes, procedures and
requirements, number of desks, meticulous division of labour and
responsibility, clear hierarchies and professional, almost
impersonal interactions between employees”.
 According to Max weber
Max Weber, a German scientist, defines bureaucracy as a highly structured,
formalized, and also an impersonal organization.
He also instituted the belief that an organization must have a defined hierarchical
structure and clear rules, regulations, and lines of authority which govern it. Max
Weber bureaucracy ideally has the following characteristics:
1. Specialization of labor
2. A formal set of rules and regulations
3. Well-defined hierarchy within the organization
4. Impersonality in the application of rules
 6 Principles of Bureaucracy
A formal hierarchical structure

Rules-based Management

Functional Specialty organization

Bureaucracy Principle
Up-focused or In-focused Mission

Impersonal

Employment-based on Technical Qualifications

3. Henry Fayol Administrative Management
Theory
Administrative Theory
• The Administrative Theory is based on the concept of
departmentalization,
• which means the different activities to be performed for
achieving the common purpose of the organization should
be identified and be classified into different groups or
departments, such that the task can be accomplished
effectivel
 According to Henry Fayol
1. The administrative theory is given by Henri Fayol, who believed that more
emphasis should be laid on organizational management and the human
and behavioral factors in the management.
2. Main focus is on how the management of the organization is structured
and how well the individuals therein are organized to accomplish the tasks
given to them
3. The administrative theory focuses on improving the efficiency of
management first so that the processes can be standardized and then
moves to the operational level where the individual workers are made to
learn the changes and implement those in their routine jobs
 Contribution of Fayol to management
1. Division of Industrial Activities 2.Qualities of an effective
Technical, Commercial, Financial, Manager
Accounting, Managerial, Physical, Mental, Moral, Education,
Security Technical, Experience

Fayol Contribution

3. Functions of Management
4. Principles of Management Planning, Organizing ,
14 Principles Commanding,
CO-ordinating, Controlling
 The Neo Classical Theory Of Management
1. Neo-Classical theory is called human relations and Behavioural science
approach.
2. Neo-Classical theory gave greater emphasis to man behind the machine and
stressed the importance of individual as well as group relationship in the plant
or workplace.
3. The neo-classical approach recognizes the primacy of psychological and social
aspects of the workers as an individual and his relations within and among
groups and the organisation.
4. Neo-Classical approach may be analysed in three parts, namely —
1. Hawthorne Experiment
2. Human Relation Movement
3. Behavioural Approach
 Features of Neo Classical Approach
i) The business organisation is a social system.
(ii) Human factor is the most important element in the social system.
(iii) It revealed the importance of social and psychological factors in
determining worker productivity and satisfaction.
(iv) The behaviour of an individual is dominated by the informal group of
being a member.
(v) The aim of the management is to develop social and leadership skills in
addition to technical skills. It must be done for the welfare of the workers.
(vi) Morale and productivity go hand-to-hand in an organization.
 i) Hawthorne Experiment
(Elton Mayo , Roethlisberger & Dickson)
1. A famous series of studies of human behaviour in work situations was
conducted at the Western Electric Company from 1924 to 1933.

2. In 1927 a group of researchers led by Elton Mayo and Fritz J. Roethlisberger

and Dickson at the Harvard Business School were invited to join at Western
Electric’s Hawthorne plant near Chicago.

3. The studies began as an attempt to investigate the relationship between the

level of lighting in the workplace and the productivity of worker
 4 Phases of Hawthorne Experiment
1. Illumination Experiments(1924-27)

2. Relay Assembly Test Room Experiments (1927-28)

3. Mass Interviewing Programme (1928-30)

4. Bank Wiring Observation Room(1931-32)

 Human Relations Movement
Theory X and Theory Y
• proposed by Douglas McGregor in his
1960 book, The Human Side of
Enterprise.
• Theory X states that people dislike
work and need the constant threat of
job loss and financial incentives to
work hard. These workers are
irresponsible and need to be
controlled.
• Theory Y states that people are self-
motivated, responsible, creative and
need to work. Theory Y has been
adopted by more progressive
management intellects that follow
Elton Mayo's human relations
approach.
Hierarchy of needs
• According to Maslow, McGregor's
Theory Y did not completely work
because it ignored the need
individuals had for Theory X.
• Maslow used his hierarchy of needs
theory to explain human motivation.
• The five levels of needs according to
Maslow are physiological needs, safety
needs, needs of belonging, esteem
needs and self-actualization needs.
• Maslow believed that people cannot
fulfill the higher needs of esteem and
self actualization without fulfilling the
basic physiological and safety needs of
an individual first.
 Expectancy theory of motivation Two factor hygiene and motivational theory

• Victor Vroom developed the expectancy • Frederick Herzberg stated that hygiene
theory of motivation. factors such as quality of management,
• It is based on outcomes. safety, status, relationships, company,
• Vroom surmises that effort, performance working conditions and company policies
and motivation must be linked. are necessary to keep employees satisfied.
• He proposes three variables, valence, • Motivational factors like advancement,
expectancy and instrumentality. achievement, recognition, job interest and
responsibility are needed in order to
• Expectancy is the thought process that
motivate employees to a higher
increased effort will lead to better
performance level.
performance.
• Instrumentality is the belief that you will
be rewarded for hard work, and valence is
the significance an individual places on an
outcome.
• Vroom's theory is based on perceptions of
equity or fairness in the workplace.
 3. Behavioral Approach
(Mary Parker Follet & Elton Mayo)

Mary Parker Follet Elton Mayo

• Follet is the pioneer of behavioural approach to • Even though Follet was the pioneer of the
management. She recognized the significance of the behavioural approach to management, it is
human element and attributed greater significance • Elton Mayo who is recognized as the father of the
to the functioning of groups in workplaces. human-relations approach.
• As per Follet, the critical role of managers should be • Mayo and his associates conducted a study at the
to bring about constructive changes in organizations, Western Electric’s Hawthorne Plant between 1927
following the principle of ‘power with’ rather than and 1932 to evaluate the attitudes and psychological
‘power over’. reactions of workers in on-the-job situations.
• power should not be based on hierarchical levels but
should be collectively developed to foster a
cooperative concept that involves superiors and
subordinates and enables them to work together as
a team.
• emphasis is more on power sharing.
Mary Parker Follett's
management theory
Mary Parker Follett, or the "Mother of Modern Management," believed
that management was "the art of getting things done through people.“
She offered valuable insight on the importance of "powering with"
rather than "powering over," and integrating with employees to solve
conflicts.
Leadership is not defined by the exercise of power but by the capacity to
increase the sense of power among those led," Follett once said. "The
most essential work of the leader is to create more leaders."
 Quantitative School of
Management/Mathematical Approach
1. After World War II, analytical methods developed by the military during the
war effort began to be used in business decision making.
2. Evolving from the Decision Theory School, the Mathematical School gives a
quantitative basis for decision-making and considers management as a
system of mathematical models and processes.
3. This school is also sometimes called, ‘ Operations Research” or
“Management Science School’.
4. It uses scientific techniques for providing quantitative base for managerial
decisions. The exponents of this school view management as a system of
logical process.
 Branches of Quantitative Management
(a) Management Science
• “Management science is an
approach that aims at
increasing decision
effectiveness through the
use of sophisticated
mathematical models and
statistical methods.”
• uses mathematical models
such as linear programming,
PERT, CPM, games theory,
probability, sampling theory,
capital budgeting, financial
structure theories and
symbols to solve
organisational problems
(c) Management Information
(b) Operations Management
Systems.
• Operations management is • MIS is the field of
the function, or field of management that focuses on
expertise, that is primarily designing and implementing
responsible for managing the computer-based information
production and delivery of systems for use by
an organisation’s products management.”
and services. • Large amount of information
• use quantitative techniques is quickly processed
of forecasting, inventory (conversion of raw data into
analysis, statistical quality useful information) to make
control methods, networking useful business decisions.
models etc. in areas such as
inventory management,
production planning,
designing the production
process, purchasing raw
materials, storing and selling
the final products and similar
areas in manufacturing units.
 2. System Approach
1. In the 1960, an approach to management appeared which tried to unify the prior schools of
thought.
2. This approach is commonly known as ‘Systems Approach’.
3. Its early contributors include Ludwing Von Bertalanffy, Lawrence J. Henderson, W.G. Scott,
Deniel Katz, Robert L. Kahn, W. Buckley and J.D. Thompson.
4. viewed organisation as an organic and open system, which is composed of interacting and
interdependent parts, called subsystems.
5. The system approach is top took upon management as a system or as “an organised whole”
made up of sub- systems integrated into a unity or orderly totality.
6. Systems approach is based on the generalization that everything is inter-related and inter-
dependent.
 Features of System Approach
(i) A system consists of interacting elements. It is set of inter-related and inter-
dependent parts arranged in a manner that produces a unified whole.
(ii) The various sub-systems should be studied in their inter-relationships rather, than
in isolation from each other.
(iii) An organisational system has a boundary that determines which parts are internal
and which are external.
(iv) A system does not exist in a vacuum. It receives information, material and energy
from other systems as inputs. These inputs undergo a transformation process within a
system and leave the system as output to other systems.
(v) An organisation is a dynamic system as it is responsive to its environment. It is
vulnerable to change in its environment.
 3. Contingency Approach
(J W Lorsch & P.R Lawrence)
1. The contingency approach is the latest approach to the existing management approaches.
2. During the 1970’s, contingency theory was developed by J.W. Lorsch and P.R. Lawrence, who
were critical of other approaches presupposing one best way to manage.
3. Management problems are different under different situations and require to be tackled as
per the demand of the situation.
4. Kast and Rosenzweig give a broader view of the contingency approach. They say, “The
contingency view seeks to understand the inter-relationships within and among sub-systems
as well as between the organization and its environment and to define patterns of
relationships or configurations of variables contingency views are ultimately directed toward
suggesting organization designs and managerial actions most appropriate for specific
situations.
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