CHAPTER ONE

1. Basic Concepts of Organization and Management.

Introduction Why people live and work together? How they coordinate and arrange activities?
The issue of organization and management goes to the life of human being. Efforts to codify
organization and management knowledge as a separate and identifiable field of study are
relatively recent. It has been only in the 20 th century that attempts have been made to develop a
general theory. In this unit, the students will learn about the basic concept of organization and
management. It helps students to be familiar with some common characteristics and aspects of
organizations and management. In addition, in the unit, the notions of managerial levels, skills
and functions have been presented. They will learn about the importance of management in
organizational behaviour and performance. In addition, they also learn about the unique feature
of educational organization and management.
Objectives:
Up on completion of this unit, students will be able to:
 Examine the concept of organization from different perspectives.
 Discuss the levels and functions of management in various organizational successes.
 Explain common characteristics, and major aspects of organization.
 Describe the feature of educational organization and management from other organizations.
1.1 The Nature of Organization and Management.
1.1.1. Organization
Organizations dominate our lives. Our activities and behaviour are shaped by organizations
right from birth to death. Schools, colleges and universities, hospitals, local state and central
governments, manufacturing and trading concerns, clubs, societies, cultural, social and
professional bodies are some of the organizations with which most of us have to deal in life. Our
association with some of them may be close and long or it may be short live. But there is nobody
who can escape from organizations.
What does organization mean to you?
Some of the leading definitions of the term organization are presented below:
Organization is “a system of consciously coordinated personal activities or forces of
two or more persons”.

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 Organization is the form of every human association for the attainment of a common
purpose.
Organization is the structure and process by which a cooperative group of human
beings allocated its tasks among its members, identifies relationship and integrates its
activities towards common objectives.
Organizations are social units deliberately constructed and reconstructed to seek
specific goals.
The following are the most widely used definitions of organization.
 A consciously coordinated social unit composed of two or more people that
function on a relatively continuous basis to achieve a common goal or set of
goals.
 A social entity that is goal-directed and deliberately structured.
 A system of consciously coordinated activities or forces of two or more persons.
 A structured social system consisting of groups and individuals working together
to meet some agreed-on objectives.

Characteristics of Modern Organizations

1, Social Entities: Organizations exist to serve the needs of people. An organization comes into
being when: There are persons able to communicate with each other; that are willing to
contribute action; and to accomplish a common purpose
2. Large Sized: Modern organizations are invariably large sized. The ambit of their activities
has been increasing consistently over the past few decades.
3. Complex: The ever expanding/ diversifying scope and array of functioning have elaborated
procedure and added to ramifications to a decision. The resultant has been complexity, both in
structure (command, control etc.) and functions (multiplicity).
4. Work towards a Purpose: Cooperative endeavor is directed towards accomplishing a preset,
mutually agreed purpose.
5. Set Pattern of Behavior: Hierarchy structures behavior within an organization. Limits of
positional authority at each level are clearly stipulated.

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6. Continuing System: There is no fluidity or spasmodic appearance associated with a modern
organization. It does not occur in flashes. An organization is a continuing consistent system
which modifies/ adjusts but does not eclipse.
7. Differentiation: Task specialization and hierarchical levels lead to differentiation. There is
task differentiation, and status differentiation accompanies task differentiation.
8. Co-ordination: Coherence is the watchword for smooth functioning of any enterprise.
9. Conscious Rationality: Organizing is also an academic venture. Hence it has been explained
as “Co-operative rational action”. Conscious rationality thus forms the basis of an organization.
10. Import–Conversion–Export: It states the mechanism by means of which an organization
relates to its environment. The organization is related to its substratum (environment).
Typology of Organizations
According to Talcott Parsons, organizations can be classified primarily into four categories based
on functions:
1, Economic organization: - primarily concerned with producing something of value to the
society. Industrial, commercial and trading concerns are included in this category.
2. Political organization: - Survive on the basis of service to society. All governmental
agencies are included in this category.
3. Integrative organization: - They are concerned with social control and maintenance. Police
departments, courts and other protective organizations are included in this category.
4. Pattern maintenance organization: - These are primarily concerned with long-term interests
of society (culture, knowledge, values, etc). Examples are educational institutions, research
institutions, religious organizations, clubs, etc.
Blau and Scott have suggested “ who benefits” criterion for classifying organizations.
They have suggested four types of organizations
1. Mutual benefit associations: - Like trade unions, political parties, and professional bodies ’,
etc crop up to serve the interests of members.
2. Business organizations: - Owners are the primary beneficiaries.
3. Service organizations: - Like educational institutions, hospitals, social welfare agencies etc.
Clients are the primary beneficiaries.
4. Common weal organizations: - Like the army, police departments, post offices etc are
mainly concerned with serving the interests of the public at large.

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According to Samuel Deep organizations can be classified according to:
1. Their structure (line, line and staff, functional, and project/matrix organization types)
2. The concentration of authority (centralized and decentralized organization)
3. According to their objectives (for profit organizations, government organizations,
protective organizations, service organizations, political organizations, religious
organizations, and social organizations).
4. According to their degree of formality (formal and informal organizations).
Formal and Informal Organization
Organizations may be divided on the basis of the interrelationships of individuals and their
degree of formality into two categories:
1. Formal organization and 2. Informal organization.
Both types of organizations are necessary for the attainment of goals.
1. Formal Organization
✍️
Formal Organization is one in which position, responsibility, authority and accountability at
each level is clearly defined. In such organization, authority is delegated from higher to lower
levels, and the whole structure, is designed to accomplish the objectives of the organization. A
formal organization is bound by rules, systems, procedures and methods as laid down by the
top management from time to time. Co-ordination also proceeds according to a prescribed
pattern in the formal organization structure.
According to Terry, there are four basic components of a formal organization.
a. The work which is divided.
b. The persons who are assigned to and perform the divided jobs.
c. The environment under which the work is to be done.
d. The relationship among persons or work units
2. Informal Organization
An informal organization always exists together with a formal organization in every
enterprise. Informal organization refers to the relationship between people in the organization,
bases on personal attitudes, emotions, and prejudices, likes, dislikes etc.
✍️
According to Davis, an informal organization is that network of personal and social relations
which is not established by formal organization. These relations between them are not developed
according to procedures and regulations laid down in the formal organization structure. Usually,

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large formal groups give rise to small informal groups. These groups are not preplanned but they
develop automatically within the organization. ▶️A manager cannot eliminate the informal
organizations because she/he does not create them.
▶️ Many times informal organization come into being to support and supplements the formal
organization. Managers should utilize it as a part of the total organization as an effective channel
of communication, as a forum for exchange of ideas and as an instrument for obtaining support
from the informal groups.

Advantages and Disadvantages of Formal and Informal organization

Type Advantages Disadvantages

Formal -Avoidance of role conflict -It does not recognize informal

organization -Avoidance of over-lapping of authority and relationship.
responsibility • It does not facilitate organizational
• Facilitate specialization communication.
• Defining and standardizing systems, rules, • It emphasizes structure rather than
policies and procedures of the enterprise people.

Informal -It provides a useful channel of -It may tend to act on the basis of
organization communication. irrational thinking.
• It covers the deficiencies of formal • It may become a source of rumor
organization. or wastage of time
• It influences the formal organization to work • It may tend to oppose change.
carefully.
• It brings about mutuality among group
members who derive job satisfaction
exchange of ideas and views etc.

1.1.2. Management
What is Management?
Management is the process of planning, organizing, staffing, directing and controlling the work
of organization members and of using all available organizational resources to reach stated

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organizational goals. Management can be defined as the art of getting things done with and
through others. It is also defined as a process of effectively achieving organizational objectives
through the efficient use of scare resources in changing environment.
Some definitions are simple and precise as one might realize from the following examples:
 Management is the process undertaken by one or more persons to coordinate the
activities of other persons and to achieve results not attainable by any one person acting
alone.
 Management is the art of getting things done through and with other people.
 Management is marshalling both human and material resources towards common
organizational goals .
Generally management is a process, composed of some basic functions for getting the
objectives of any organization accomplished through and with the efforts of its personnel.
Why management is so important for organizations?
 Managers are supposed to lead an organization to a certain defined end - objectives.
 This requires managers to coordinate the human and non-human resources that
organizations have.
 The role of management is critical in human progress.
 It serves to identify a great need of our time: to improve standards of living for all people
through effective utilization of human and material sources.
Management is the coordination of resources necessary for effective and efficient instruction of
all children with in a school organization in an orderly plan for accomplishing certain objectives.
 In this regard, educational managers have to perform the following major functions:
 Recognize and influence the development educational programs.
 Stimulate and dissect the development of the programs.
 Procure and manage resources to support the organization and its programs.
 Represent the organization.
The Management Dilemmas
A. Management Vs Administration
▶️
The term management is referred to organization in business-oriented institutions, while the
term administration is used for others, none business oriented institutions.

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Another distinction between administration and management relates with outcome orientation of
enterprise.
▶️ That is, the term administration is used in organizations which have no explicit results to
achieve, while the term management is used in organizations which have explicit results to
achieve.
▶️ In other words, administration lays down original objective, and broad policies under which
management operates to achieve those objectives.
In this sense, therefore, management is a technical aspect rather than the policy-forming aspect
of administration.
For most writers, however, the term management and administration are used interchangeably.
B. Is Management Science or an Art?
▶️ Management is both a science and an art. That is to say, management as practice is an art; the
organized knowledge underlying the practice is referred to as a science. In general,
management as a science accumulate knowledge and facts, focuses on principles, teaches
people to know, and deals with theory. As an art, applies knowledge and facts, focuses on
techniques, teaches people to do, and deals with practices.
C. Management Vs Leadership
Management is defined as the process of working with and through individuals (and/or groups)
and other resources (Such as equipment, capital, and technology) to accomplish organizational
goals. The achievement of organizational objectives through leadership is management.
Management is a special kind of leadership in which the achievement of organizational goals is
paramount.
Leadership occurs whenever one person attempts to influence the behavior of an individual or
group, regardless of the reason. Leadership is a force that creates capacity among a group of
people to do something that is different or better.

Manager Leader

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-The manager administrates; -the leader innovates.
- The manager is a copy; -the leader is an original
- The manager maintains; - the leader develops.
- The manager focuses on system and structure; -the leader focuses on people.
- The manager relies on control’ -the leader inspires trust.
- The manager has a short-range view, -the leader has long-range perspective.
- The manager asks how and when -the leader asks what and why.
- The manager has an eye on the bottom line; -the leader has his eye on the horizon.
- The manager imitates; -the leader originates
- The manager accepts the statuesque; -the leader challenges it.
- Mangers do things right; leaders do the right things.

Irrespective of how these terms are defined, school leaders experience difficulty in deciding the
balance between higher order tasks designed to improve staff, student and school performance
(leadership), routine maintenance of present operations (management) and lower order duties
(administration). Administration is not associated with “lower order duties” in the U.S. but may
be seen as the overarching term, which embraces both leadership and management.
Cuban provides one of the clearest distinctions between leadership and management. By
leadership, I mean influencing others actions in achieving desirable ends . . . . Managing is
maintaining efficiently and effectively current organizational arrangements . . . .

1.2. Levels and Skills of Management

1.2.1 Levels of Management
Managers are people in an Organization, who hold positions of authority and make decisions
about the allocation of resources. Managers may also be defined as those people in an
organization, who are responsible to carry out major activities of management. Managers from
hierarchical positions divided in to top-level managers, middle level managers and first
line/supervisory level managers.
1. Top Level Mgt. This is the mgt level at the top of Organization hierarchy. Top-
level managers are involved in very broad issues of Organization such as strategic
planning, policy making and other strategic issues. They do also control the
activities of middle level managers.

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 2. Middle Level Mgt. Middle level managers are concerned with interpreting the
strategic plans and policy set down by top-level managers and communicate down
to lower level managers. They are also responsible for organizing and controlling
the activities of lower level managers and communicate with their immediate
managers (top level managers). They serve as a bridge
3. First Line Mgt. Managers at this level, manage the activities of the Organization
at the grassroots level. They are managers who are directly involved in the day-to-
day activities of the Organization.
1.2.2 Skills of Management
Accordingly there are three managerial skills that are essential to successful management:
1. Technical,
2. Human, and
3. Conceptual Skills.
1) Technical skill
Technical skill refers to the ability to use tools, techniques, or approaches in a specialized
manner. Technical skill involves specialized knowledge, analytical ability within that specialty,
and facility in the use of the tools and techniques of the specific discipline. In education,
technical skill assumes an understanding of and proficiency in the methods, procedures, and
techniques of the teaching-learning activities. In non instructional areas it also includes
specific knowledge in finance, accounting, scheduling, purchasing, construction and
maintenance. Hence, for the manager, the nurture of technical skills is of two folds. First, the
manager should have developed some expertise in the work being clone. Secondly, he/she
should have the skills requisite for managing the work being done.

2) Human skill
All the managerial levels require skills in dealing with people. Human skill involves working
with people. Managers must be able to work with and understand communications, attitudes and
motivations in order to achieve cooperation. It calls for the ability to select, motivate, work with
and lead employees either individually or in groups. As technical skill is primarily concerned
with working with “things” (processes or physical objects), so human skill is primarily

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concerned with working with people.

3) Conceptual Skill
Conceptual skill refers to the ability to integrate and coordinate the organization ’s activities as a
whole. This skill is related with the ability to see the “total picture”, how the different parts of the
organization fit together and depend on each other, and how a change. Conceptual skill is used
for abstract, reflective thinking, and for the concept development involved in planning (creative
strategy formulation) and policy making. Therefore, it involves the formulation of ideas.
Thus, technical skill deals with things, human skill concerns about people, and conceptual skill
has to do with ideas. In summary, edn’l managers, like the rest of their counter parts deal with
people (i.e., students, teachers, family, clerks, etc), they have to relate schools to other
Organizations in the environment.
Hence, the skill required of them in working with others to be an effective group member and to
be able to build cooperation within the team they lead (i.e. human skill), and ability to recognize
the inter r/ships of the various factors involved in the situation (i.e. the conceptual skill) tend to
be similar to that of the managers in other types of Organizations. Whereas Organization and
mgt in all Organizations has similarities in most of its general processes, it varies from
Organization to Organization particularly in the technical skills required.
1.3. Educational Organization and Management
✍️Educational management, as the name implies, operates in educational organizations or
institutions. Educational management has progressed from being a new field dependent upon
ideas developed in other settings to becoming an established field with its own theories and
research. It has become a popular field of study and practice globally. Educational management
refers to the administration of the education system in which a group combines human and
material resources to supervise, plan, strategies, and implement structures to execute an
education system. Education is the equipping of knowledge, skills, values, beliefs, habits, and
attitudes with learning experiences. The education system is an ecosystem of professionals in
educational institutions, such as government ministries, teachers ’ unions, statutory boards,
agencies, and schools. For making our idea of education management further clear we may
borrow the words of some education thinkers. Educational management is a field of study and
practice concerned with the operation of educational organizations. Most authors have argued

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consistently that educational management has to be centrally concerned with the purpose of
education (Bush, 2003). These purposes or goals provide the crucial sense of direction to
underpin the management of educational institutions.
1.3.1. The Nature of Educational Management
In the light of the above discussion, we can arrive at the following nature of education
management.
Educational management is universal process: Educational Management is a universal
process. It is related to each and every country, society, organization etc. The need of
management can arise in every field of Commercial, War, Religion, Human Relation etc.
Educational management is an art: Educational management is more an art than a science.
The reason is that human relationship prevailed here can ’ t be maintained by any set of
formulae. According to Koontz, management has been accepted as an art as in management
things are done through others. Therefore, in management, not only one has to learn the
principles of management but also the manager has the qualities of sympathy, patience, good
manners, experience, behavioural skills etc.
✒ Educational management is loosely science: Educational Management is a science because
it also collects data by using the methods of observation, experimentation, explanation, etc. Like
Political science, Economics, Sociology, etc.
✒ Educational management is a profession: Educational Management is profession. Because
in each and every profession, to manage the activities effectively, she/ he should have some
particular qualities like preparation, behavioural skill, patience, etc.
Educational management is a multidisciplinary subject: Management is also a
multidisciplinary subject. Because the principles, concepts and skills which are involved in
management are also related to Economics, Mathematics, Psychology, Anthropology, Sociology.
Educational management is a dynamic process: Educational Management can be considered
as continuous or dynamic process because the principles of management are changeable as
change in time. Every field i.e industry, education, etc are changing from time to time in respect
of new policy, new action.
Educational management is a social process: It is a social process as it gives more importance
to social benefits and responsibilities.

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Educational management is goal-oriented: Each and every function of management is goal-
oriented. Effective management is guided by specific objectives. Educational Management is a
process of planning, organizing, directing, and providing instruction to achieve educational
goals. The chief objective of management is to achieve predetermined goals. So, “anything
without management is nothing”.
Educational management is a group activity: Educational Management is a group activity as
it involves a group of individuals to achieve common goals. It helps the members of the
organization to know the aims & objectives of the organization and also directs them to achieve
those goals.
Educational management doesn’ t refer to any single process rather different processes or
aspects constitute administration. These are planning, organizing, directing, coordinating and
evaluation.
✒ Educational management is a non-profit making task.
✒ Educational management is primarily a social enterprise as it is more concerned with human
resources than with material resources.
Educational management is a complex affair.

1.3.2 The Nature & Peculiar features of educational organizations & management
Accordingly different scholars have argued that organization and management of educational
institution is some how different when compared with other organizations. In this regard
Campbell has identified six factors that distinguish educational organization and its management
from other organization.

1) Crucially to society
Educational institutions are unique in the range (type) of their functions, and centrality of
relationships to other social institutions. Social services (such as health, construction, water
supply of other economic sectors) require qualified manpower, the training of which is carried by
educational institutions. In addition to this, educational institutions are charged with the
responsibility for socialization (way of life), political system and culture of the society. Hence,
educational supervisors should know that school organizations are very unique institutions that
act efficiently to satisfy the needs of other organization of society at large.

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 2) Public visibility and sensitivity
School and its activities are visible to society more than any other organizations. Society is also
sensitive to educational institutions more than other organization because of the contribution of
education to the overall development of a nation. So, educational managers should be sensitive
to the different members of the community. And this requires them to create intimate
relationship with individuals and groups in the community.
3) Complexity of functions
In school organizations, educational administrator deals with many people: teachers, non-
teaching personnel, students, and members of the community. These people have different
individual and group interests. This makes the functions of educational administrator very
difficult.
4) Intimacy of necessary relationship
In school organizations there is intimate relationship among school personnel, and in between
school personnel and community. It is obvious that this intimacy maximizes behavioral
problems. As a result of this the organization and management of educational institutions
demand competent leaders who can deal with various behavioral problems.
5) Difficulty in appraisal
The school is charged with the responsibility of bringing about a desirable change of behavior in
the learner. Since behavioral changes may not be manifested in a short- period of time,
supervisors have to know that teachers and educational administrator are in a difficulty to
appraise or measure the degree of performance.
6) Staff Professionalization
More than other service-giving organizations, schools comprise of professionally trained man-
power. In such a case, personal disposition (qualities and characters) of the staff are affected by
different factors such as professional values, superior intelligence, and communication. Hence,
supervisors in schools must pay greater attention to personal dispositions in the school than
supervisors in other organizations.

CHAPTER TWO
Development of Organization and Management Thought

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In 19th century the industrial revolution has transformed the job of manager from owner-manager
to professional, salaried manager. Prior to industrialization, almost all of the Western Europe
including United States was predominantly an agricultural society and the manufactured goods
was in its handicraft stage which was consisted of household manufacturing, small shops, and
local mills. However, there are management practices, principles and techniques developed in
earlier time by military and church organizations as well as other pioneer contributors. The
Evolution of Management thoughts can be classified into four
 Pre classical school of thought
 Classical school of management
 Human relation school
 Behavioral school
2.1 Pre Classical Management Period
The pre scientific management period includes the time from cooperative efforts up to the
approach to study management scientifically (up to about 1889s). Very little is known about the
philosophies of early managers, but there were organizations and individual contributors to the
pre industrial period like military organizations, Roman Catholic Church, the Cameralists,
Robert Owen, Charles Babbage and others.
2.1.1 Pre Classical Organizations which Contributed for Management Evolution
✍️Many major accomplishments such as: the building of the pyramids of Egypt, and the great
wall of china- indicated the existence and application of considerable skills in the various
management functions of ancient time. The following are some of the major contributors of
Pre-classical era:
a) The Roman catholic Church contributed the following:- The development of hierarchy of
authority, The specialization of activities along functional lines, and The early use of staff device
for efficiency

b) The Military Organizations contributed terms like-superior, subordinate, line, staff, etc.

c) The Cameralists: A group of cameralists from Austria and German public management (16 th
up to 18th centuries), have given emphasis on:- The principles of specialization of functions, The
selection and training of subordinates for administrative positions; and The establishment of the
office of controller in the government organizations.

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 2.1.2 Pre -Classical Pioneer Individuals who Contributed to the Evolution of
Management
Besides religious and military organizations, various intellectuals in the field of economics and
mathematics have made credible theoretical contributions for the pre-scientific management
thought.
Contributions of Robert Owen (1771-1858) to Management
The basic challenge facing management in the early years of the industrial revolution was that of
developing rational and scientific principles for handling human and non-human resources. How
to increase productivity by making the work easier to perform and how to motivate the workers
to take advantage of these new methods are two forms of the challenge. Robert Owen was one
of those individuals who developed approaches for meeting these challenges and laid the
foundation for scientific management. The specific problems that won the attention of Owen
were:
a. Exploitation of child labor
b. Poor working conditions, and
c. Brutal labor exploitation.
Owen believed that this challenge could be tackled by understanding human nature. He
approached to solve these problems by instituting work reforms as follows:
 No children under age ten were employed, instead they were sent to school.
 Working hours per day was limited to 10:45
 Provided improved facilities such as meal, evening recreation, schooling, housing, and
through his personal influence thought thrift, cleanliness, and order.
 Opened a store where goods could be bought at fewer price.
 Forbid punishment of employees.
Generally he showed great concern to the human side of organizations. Owing to this, Owen is
described as a social reformer. He is also called as father of modern Personnel management.
As a result of his human relations approach to management, the workers ’ confidence increased
and his organization became highly profitable.
◾ Contributions of Charles Babbage (1792-1871) to Management

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 Charles Babbage was another thinker who contributed to the development of management
thought. He was also faced with the same challenge that Owen faced. Babbage paid particular
attention to methods that would increase efficiency of the workers. However, the approach he
used was different from that of Owen. He believed that by systematically studying the
operations of factories and management could find out ways to improve efficiency. He also
visited many British factories to observe their operations. During these visits, he examined
manufacturing processes, tools, skills, and machinery to find ways to improve efficiency. He
was a devoted proponent of division of labor, economies of scale in manufacturing, incentive
pay, and profit sharing.
◾ Contributions of Henri Varnum Poor (1855) to management
Poor was the editor of the “American Rail Road Journal” in the later half of the nineteenth
century. From his capacity, he closely watched and analyzed the maladministration of the rail
road system and ultimately came up with certain recommendations. Some of the
recommendations he give, which might be termed as modern, were the following.
▶️ Clear organizational structure in which people have clear responsibility and can be held
accountable.
▶️ Clear communication and reporting system
▶️ Maintaining feeling of unity, appreciation of work and esprit de corps (team spirit).
In general, by the end of the 19 thc, the stage was set for a group of people to tackle management
problems in a systematic manner.

2.2 The Classical Approach to Management

A classical approach is a perspective on management that emphasizes on finding "one best
way" to manage work and organization. The classical approaches consist primarily of three
streams of thoughts. These include
1. Scientific management approach: it is mainly concerned with productivity and the jobs
of workers at lower level of organization. Scientific management theory consists of the
work of Frederick .W. Taylor, Frank and Lillian Gilbreth, Henry Gantt and Emerson etc.
2. Administrative management /classical organization theory: this theory concerns with
the whole administration of an organization. It emphasizes on universally applicable

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 administrative principles. The primary contributor to this theory is Henri Fayol and some
other scholars like Gulick and Urwick
3. Bureaucratic organization theory: the main concern of this theory is setting a guideline
for structuring organizations in the most efficient manner. The major contributor to
bureaucratic theory is Max Weber. He Identified bureaucracy as an ideal form of
organization structure.

2.2.1 Scientific Management: Getting the most out of Workers Taylor's Concept of
Management
The primary concern of Taylor was that results of higher productivity should equally benefit all
people. i.e. workers, employers and consumers in the shape of higher wages to the workers,
greater profits to the management and payment of lower prices for the products by the
consumers. He advised that management should take the responsibility for determining
standards, planning work, organizing, controlling and devising incentive schemes.
Principles of Scientific Management
Taylor’s philosophy of management was based on mutual interests and on four basic principles
of scientific management:
Development of a true science
Scientific selection of the workmen
Scientific education and development of workmen &
Intimate and friendly cooperation between the management and the men.
Scientific Management and its Impact on Education
Taylor himself advocated scientific management for all sorts of work, including the
management of universities and government School system. Accordingly, scientific
management was applied in education system in the following ways:
 Educational objectives were re-examined (liberal to vocational).
 Curricula were modified to become practical and vocational.
 School organizational patterns were changed to double and triple session,
departmentalization were introduced.
 New classroom teaching methods and testing procedures were introduced, tests were
more standardized.

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  Supervision was made more “scientific” by the use of detailed rating devices to measure
the efficiency of teachers & principals.
 Accounting methods were tightened and school budgets were scrutinized to eliminate
wasteful expenditures.
2.2.2 Administrative Management Theory: Getting the Most out of Management
The second major sub-field within the classical/traditional view is known as the administrative
management theory. The administrative management was based on three fundamental aspects;
the division of work, the application of an administrative process and the formulation of
technical criteria that must orient the administrative function.
Henri Fayol
Perhaps the single greatest contributor to the field of classical administrative theory was Henri
Fayol (1841 - 1925), the French industrialist now considered the “father of modern
management theory.” Fayol primarily attempted to categorize all activities in business
undertakings. He concluded that activities in business undertakings could be grouped into six
essential groups:
i. Technical (production, manufacture, adaptation)
ii. Commercial (buying, selling, exchange)
iii. Financial (finding, acquiring, and using capital optimally)
iv. Security (protection of people and property)
v. Accounting (costing, preparation and analysis of financial statements)
vi. Managerial (planning, organizing, commanding, coordinating, and controlling).
The managerial activities, for Fayol, included planning, organizing, commanding, coordinating,
and controlling.
i. Planning - foreseeing and providing means examining the future and drawing up the plan of
action.
ii. Organizing - building up the material and human structure of the undertaking.
iii. Commanding - maintaining activity among personnel.
iv. Coordinating - binding together, unifying and harmonizing all activity and effort.
v. Controlling - seeing that everything occurs in uniformity with established rule and expressed
command.

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Fayol and his followers advocated the idea that management was a universal function that could
be defined in terms of the various processes. He emphasized that the managerial principles that
he developed could be applicable not only to business but also to governmental, military,
religious, and other organizations.
The following is a summary of his fourteen principles.
1. Division of work.
There should be division of work/specialization in order to increase organizational efficiency
through repeated operation. Division of labor encompasses three basic concepts:
Breaking down a task into its components,
Training workers to become specialists in specific duties, and
Putting activities in sequence so that one person’s efforts build on another’s.
2. Authority and responsibility.
Authority is the right to give directives or to command action. This right rests in the job the
manager holds in an organization.
Responsibility, on the other hand, is a sense of obligation that goes with authority. Authority
should be delegated only to subordinates who are willing to assume commensurate
responsibility.
3. Discipline.
✍️
Employees and employers of an organization are required to perform their function in relation to
others, respect the laws, norms and customs, and agreements that govern the organization.
Discipline can be maintained by:
• Having good superiors at all levels.
• Agreements those are clear and fair.
• Penalties appropriately imposed in case of insubordination
4. Unity of command.
✍️ An employee should receive directives from only one superior regarding a particular
operation. Violating this principle undermines authority and jeopardizes discipline and stability.
5. Unity of direction.
✍️All activities geared toward achieving the same objective should be directed and controlled by
one person. This improves coordination and ensures that energies are channeled in the proper
direction.

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 6. Subordination of individual to general interest.
✍️The overall interest of the firm is more important than the interest of any person or group of
people who work for it.
7. Remuneration of personnel. Wages should be fair and equitable to both the workers
and the company.
8. Centralization.
✍️Centralization and its counterpart, decentralization, mean how much authority is concentrated
at the top of an organization or dispersed throughout the management hierarchy. The question of
centralization or decentralization is a question of proportion. It is important to find the optimal
degree of each in an organization.
9. Scalar chain. Often called the chain of command, this is the line of managers from highest to
lowest in an organization. All organizational requests and directives must follow this chain.
10. Order. Order refers to the right person on the right job and everything in its proper
place.
Both material things and people should be in their right place.
11. Equity. Subordinates should be treated with justice, kindness, and fairness at all levels. This
develops their devotion and loyalty to the enterprise.
12. Stability of tenure/ permanent states of personnel. Experienced, well-trained managers
and workers are crucial to the success of a business, so a stable work force should be maintained.
Some turnover, however, is expected and desirable. Retirement, death, illness, and job
promotions lead to turnover.
13. Initiative. Fayol defined initiative as the ability to think through and develop a plan of action
without any external pressure. He believed that the most capable managers must instill this
attribute in their subordinates.
14. Esprit de corps.
In union, there is strength. All members of an organization should work together harmoniously
to achieve a common goal. The job of the manager is to “coordinate effort, encourage keenness,
use each man’s abilities, and reward each one ’s merit without arousing possible jealousies and
disturbing harmonious relations.” It’s important to note that Fayol considered the principles to be
flexible and adaptable - not rigid rules. Moreover, he pointed out that there is no limit to the
number of management principles that can improve an organization’s operation.

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 2.2.3. Max Weber and the Bureaucracy
Weber (1864 – 1920) is a German sociologist who was mainly concerned with the issue of how
organizations are structured. His fundamental emphasis was on outlining the characteristics of
what he termed bureaucratic structures. He believed that any goal-oriented organization
consisting of thousands of individuals require carefully controlled regulation of its activity.
Explaining the authority of different kinds in various organizations, Weber concluded "all
administration means domination". Weber defined administration as domination or exercises it
as service or performance of duty. He prescribed three states of legitimacy each with a different
type of apparatus to justify the power of command. These are:
a) Legal authority: Manifestations of legal authority are found in organizations where rules are
applied judicially and in accordance with ascertainable principles valid for all members in
the organization. The members who exercise the power are the superiors and area appointed
or elected by legal procedures to maintain the legal order. The subject persons to the
commands are legal equals who obey the law.
b) Traditional authority: Traditional authority derives its legitimacy from the acceptance of it
since hoary / ancient past. The person exercising authority generally is called Masters who enjoy
the personal authority by virtue of their inherited status. In a feudal society they are loyal allies
of the master. However, all these actions are legitimized in the name of traditions and customs.
c) Charismatic authority: The power exercised by the leader - maybe a prophet, a hero, or a
demagogue - substantiating the claim by virtue of his magical powers or heroism or other
extraordinary gift or qualities. Charisma and its acceptance form the basis of legitimacy in this
system. The persons who receive the commands obey the leader because they believe in his
extraordinary abilities rather than the stipulated rules or the dignity of a position. The
charismatic leader selects his disciples / followers as his officials based purely on their personal
devotion to him rather than on their special qualification or status. Weber believed that all three
types of authority claim legitimacy as long as the rules accept them. He states that these pure
types of authority are always found in combination rather than separated from each other. But
Weber insists that there is need to analyze them separately to find out the composition of legal,
traditional and charismatic elements present in a combination.

Characteristics of Ideal Bureaucracy

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 1. Clear-cut division of work: labor is divided with clear definitions of authority and
responsibility that are legitimized as official duties.
2. Managerial hierarchy: positions are organized in a hierarchy of authority, with each
position under the authority of a higher one.
3. Formal selection: all personnel are selected and promoted based on technical
qualifications, which are assessed by examination or according to training and experience.
4. Separation: management is separate from the ownership of the organization.
5. Formal rules and regulations: all employees are administered through well-defined
formal rules and procedures. Administrative acts and decisions are recorded in writing.
Record keeping provides organizational memory and continuity over time.
6. Impersonality: Impersonality of relationships between persons.
Merits of Bureaucracy
As you could have observed, the ideal bureaucracy has the following advantages:
Division of labor will lead to increased efficiency.
Hierarchy of authority: it develops a clear chain of command that extends from the
highest to the lowest level of the enterprise.
Employees can be hired and promoted based on merit system and expertise.
The hiring of professionals based on career orientation leads to continuity of operations.
Enterprise efficiency will increase as formal rules and controls relating to employee
performance are enforced.
It protects workers from arbitrary dismissal and avoids the involvement of personalities.
Demerits of Bureaucracy
Rules and controls may take on significance of their own, as a result become ends in
themselves.
Recordkeeping and paper work become more important in its own than as a means to the
end.
Extreme devotion to rules and procedures may lead to blind repetition of past decisions
without concern for changed conditions.
It results in managers to be paid for doing only what they are told, not for thinking.
When the situation is not covered by the existing rules and procedures, managers are
inflexible and cannot adapt the changed circumstances.

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 Decision making tend to be categorized or choices are previously programmed. This
discourages the search for further alternatives and initiatives.
Workers are expected to work to the prevailing rules and nothing more.

2.3 Human Relations School of Management Thought

Human relations school
The Human Relations arose as a reaction against the ‘mechanistic ’ classical school. The human
relations movement in industry began with the research of Elton Mayo and his associates by
studies carried out at the Hawthorne plant of the Western Electric Company (Chicago) between
1927 and 1932. Elton Mayo (1880-1949) has often been called the founder of both the Human
Relations movement and of Industrial sociology. Mayo’s generalization was that workers’
satisfaction depends to a large extent on the informal social pattern of the work group. The
impact of Hawthorne led to a fuller realization and understanding of the human factor in work
situation.
What was the major objective of the Hawthorne studies?
Initially the objective was to determine the effect of physical conditions on workers’
productivity. Employees had been considered as mechanistic elements in the productive system.
Studies on fatigue, rest periods and physical surroundings were prevalent during the early part of
20th century. The basic studies by Mayo and his group took place over a five-year period
and focused on the following experiments:
1. The illumination experiment
This was the first phase of the initiated study to determine the relationship between intensity of
illumination and productivity of workers. However, the experiment failed to show any simple
relationship between the intensity of illumination and rate of output. This experiment suggested
that variables other than physical conditions might be affecting output.
2. The relay assembly test room experiment
The objective of this research team was to determine the effects on output of working
conditions, length of working day, frequency and length of rest periods, and other factors relating
to the physical environment. The study found that, regardless of variations in these conditions,
production increased. The amazing, thing was that production continued to increase even

23
after the workers were returned to the original conditions with longer working days,
without rest pauses, and with poor surroundings.
Conclusions of the relay assembly test room experiment:
 The research team hypothesized that the increased production was a result of changes in
social relations, motivation, and supervision of workers
 Social and psychological factors were now seen as important in determining worker
satisfaction and productivity.
3. The interviewing program
Here, over 21,000 people were interviewed during a three-year period. Although this phase of
the program did not lead to a quantifiable result, it did indicate the importance of humans and
social factors in the total work situation.
4. The bank wiring observation room
The final phase of the research program consisted of a study to observe and record group
behavior of workers. The bank wiring room study was an intensive observation of a small work
group of 14 male operators for a period of six months. This group established production can't
norms that were in conflict with those set forth by management. In spite of the fact that the
workers were paid on a group piecework incentive plan, each worker restricted output.
Piecework: work paid by the amount done instead of by the time spent doing it. The work group
established many other types of social norms in addition to output standards.
In general, the bank wiring room observations indicated the strength of the informal social
organization based on sentiments and feelings, status roles, and social interactions that were
often far removed from the formal organizational policies and procedures.
Weaknesses of Human Relations School
• It overemphasized the psychosocial aspects.
• Did not consider economic, political, and other environmental forces
• Ignored the role of unions in industrial societies.
Educational Organizations and Human Relations Movement
The human relations thought brought into the field of education by the writings of John Dewey.
In his book ‘Democracy and Education’ he advocated that an ideal school is a miniature society
in which students are best prepared for life, by living in a democratic climate. School according
to Dewey, should emphasize, above all, respect for individuality and increased freedom for

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teachers and students. Supervisors began to emphasize human relation concepts like: morale,
group cohesiveness (unity), collaboration, democratic administration, democratic supervision
and dynamics of informal organizations.
The Contributions of the Human Relations School
Early human relation brought to the forefront the concept of the organization as a social system
encompassing individuals, informal groups, and intergroup relationships as well as formal
structure. Mayo and other early human relationists developed many concepts about human
behavior in organizations. The following are some of their ideas:
• The business organization is a social system as well as a technical-economic system.
• Individual is motivated by diverse social and psychological factors as well as economic
incentives.
• Informal work group is a focal unit of consideration.
• The human relations school emphasized “democratic” rather than “authoritarian”
leadership patterns.
• The human relations school emphasized that increasing satisfaction would lead to
increased effectiveness.
• Effective communication channels should be developed between the hierarchy
• Management requires effective social skills as well as technical skills.
In spite of the fact that the human relations school had a major impact on management thought,
there have been substantial weaknesses;
 It overemphasized the psychosocial aspects.
 Did not consider economic, political, and other environmental forces.
 They ignored the role of unions in industrial societies.

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Table: Comparison of the “Scientific’ and the “Humanist” Approach

Scientific Management Theory Human Relations Theory

1 Hard Measures 1. Soft Measures

2 Things 2. People
3 Increased Production Output 3. Increased production Output
4 Time and Motion 4. Human Factor
5 Inputs, Outputs 5. Informal groups
6 Efficiency 6. Motivation
7 Systems 7. Leadership
8 Quantity 8. Communication

2. 4. The Behavioural School of Management Thought

The Behavioral school (also called organizational theory movement or social science approach)
is a synthesis of classical and human relation schools with some modifications and additional
insights. That is, it does not reject the contributions of previous schools but suggests their
shortcomings. Writers of this school are concerned with the description of actual conditions; they
search for what is rather than what should be. In addition, it also deals with all types of
organizations: formal, and informal. Behavioral school is a synthesis of both classical and
human relation schools. But it considered the classicalist as economic model and the human
relationists’ as a social model.
Contributors to Behavioural School of Management
Behavioral school is not a unified school of study; rather it is a contribution of different authors.
Some major authors of this school are discussed below.
A. Chester Bernard, He was one of the first authors to take the behavioral approach. His best-
known idea about management was the cooperative system. Cooperative system was an attempt
to integrate human relation management and classical management principles in a single
framework. Barnard argued the executive must meet two conditions, effectiveness and
efficiency. Effectiveness is the degree to which the common purpose of the organization is
achieved, while efficiency is the satisfaction of individual motives of employees.

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B. E. Wight Bake, Another contributor to the behavioral approach was E.W. Bake. He views
the organization as embodying a fusion process (combination). He argues that individual
attempts to use the organization to further her/his own goals, and organization also uses the
individual to further its own goals.

C. Jacob Getzels and Egon Guba

✍️These authors view organization as social system involving two classes of phenomena. The
first one is institution, which encompass certain roles and expectations that together constitute
the homothetic dimension of activities in the social system. The second phenomenon is
individual with certain personalities and need dispositions that together constitute the idiographic
dimension of activities in the social system.

2.5 The Contemporary Management Views

✡️
Followers of scientific management emphasized scientific decision-making. Administrative-
management studied managerial work patterns in order to learn the secrets of executive success.
Behavioural scientists developed their theories of human behavior. They assumed that the whole
is explained in terms of its parts. However, beginning from world war-II and sometime in the
1960’ s, modern management theorists have tried to integrate the findings of the scientific-
management thoughts, administrative management theories, and human relation movements to
solve wartime problems. This section attempts to integrate these different perspectives through
two approaches:

1. The systems approach,

2. Contingency theory of management and will try to treat some other recently evolving
concepts of management.

2.5.1 The Systems Approach/ Theory

The system approach has its roots in many disciplines. It was initially developed by a team of
mathematicians, physicists, sociologists, psychologists, operations researchers, biologists and
other. The approach unified the goods from all the previous management approaches and studied
management by putting things together. It assumes that the whole is greater than the sum of its

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parts. A system is an organized unitary whole composed of two or more parts or subsystems
delineated by identifiable boundaries from its environments and established with purpose.

Key Concepts in the Systems Approach

i. Subsystems or Components.

A system by definition is composed of interrelated parts or elements. This is true for all systems
- mechanical, biological, and social. Every system has at least two elements, and these elements
are interconnected.

ii. Holism.

The simultaneous action of different parts of an open system functioning in a harmonious and
integrated manner produces more total effect than the sum of the separated efforts of individual
parts. That is, the whole is greater than the sum of its parts. The whole is not just the sum of
the parts; the system itself can be explained only as a totality. Holism is the opposite of
elementarism, which views the total as the sum of its individual parts.

iii. Open Systems View.

Systems can be considered in two ways; (1) closed or (2) open.

☑️
Open systems exchange information, energy, or material with their environments. Biological
and social systems are inherently open systems; mechanical systems may be open or closed. The
concepts of open and closed systems are difficult to defend in the absolute. i.e., systems are
relatively open or relatively closed.

The systems approach views organizations as open systems.

Closed system Open system

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 All non-living organisms are closed systems All living organisms are open
They are self-contained and self- They import energy and export
maintaining output
They are generally mechanical for example, These are highly dynamic and
automatic watch flexible
They are relatively rigid and static, do not They interact with the
interact with the environment Environment
iv. Input-Transformation-Output Model.
✍️The open system can be viewed as a transformation model. In a dynamic relationship with its
environment, it receives various inputs, transforms these inputs in some way, and exports outputs

Inputs Process Output

1 .A bakery Floor, sugar, salt, water, heat, staff, Baking Breads of different sizes,
etc etc
2 .A hospital Patients, physicians, nurses, Diagnosis, Healthy people
equipment, support staff, fees. ameliorate, cure,
prevent
3 . A Students, faculty/lecturers, support Teaching, research, Graduates, books, articles,
university staff, tuition, contracts, and grants. and community outreach activities.
service

v. System Boundaries.

✍️It follows that systems have boundaries that separate them from their environments. The
concept of boundaries helps us understand the distinction between open and closed systems.
Relatively closed systems have rigid, impenetrable boundaries, whereas open systems have
permeable boundaries between itself and a broader supra-system. Boundaries are relatively
easily defined in physical and biological systems but are very difficult to delineate in social
systems such as organizations.

vi. Negative Entropy.

✍️Entropy is a natural process of decay, death or disintegration. The system of arresting or

controlling the natural disintegration is called Negative Entropy. It helps to maintain an
organization alive and keep its identity. Example, a replacement of an old cell by a new helps to
keep the organism alive and similarly the conception and introduction of a new product followed

29
by the declining and death of an old item helps to maintain the organization alive. Closed
physical systems are subject to the force of entropy which an increase until eventually the entire
system fails. The tendency toward maximum entropy is a movement to disorder, complete lack
of resource transformation, and death.

✍️In a closed system, the change in entropy must always be positive; however, in open biological
or social systems, entropy can be arrested and may even be transformed into negative entropy - a
process of more complete organization and ability to transform resources -because the system
imports resources from its environment.

vii. Steady State, Dynamic Equilibrium, and Dynamic Homeostasis.

The concept of steady state is closely related to that of negative entropy. Organizations should
adapt to environmental changes. Homeostasis is a tendency of maintaining equilibrium condition
by making constant and proportional adjustment in response to changes in its environment. An
organization should be stable. Its various parts should be in balance with one another. If an
organization is to survive, it must correct the disruptive forces of the environment. Example,
replacing gas energy by hydroelectric power and solar energy as a result of deterioration of
natural resource such as crude oil. A closed system eventually must attain an equilibrium state
with maximum entropy - death or disorganization. However, an open system may attain a state
in which the system remains in dynamic equilibrium through the continuous inflow of materials,
energy, and information.

Feedback.

✍️The concept of feedback is important in understanding how a system maintains a steady state.
Information concerning the outputs or the process of the system is feedback as an input into the
system, perhaps leading to changes in the transformation process and/or future outputs.
Feedback can be both positive and negative. Negative feedback is informational input, which
indicates that the system is deviating from a prescribed course and should readjust to a new
steady state.

ix. Hierarchy.

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✍️A basic concept in systems thinking is that of hierarchical relationships between systems. A
system is composed of subsystems of a lower order and is also part of a supra-system. Thus,
there is a hierarchy of the components of the system.

x. Multiple Goal Seeking.

✍️Biological and social systems appear to have multiple goals or purposes. Social organizations
seek multiple goals, if for no other reason than that they are composed of individuals and
subunits with different values and objectives.

xi. Equifinality of Open Systems.

✍️This refers to the idea that the same output can be achieved in multiple ways, with different
inputs, and different transformation methods. There is no single best way of doing a certain job.
One can achieve desired goals in various ways. Thus, search for potential courses of action to
achieve goals. Example, profit can be achieved by reducing cost or maximizing revenue through
making more sales at a reduced price. In mechanistic systems there is a direct cause-and-effect
relationship between the initial conditions and the final state. Biological and social systems
operate differently.

Equifinality suggests that certain results may be achieved with different initial conditions and in
different ways. This view suggests that social organizations can accomplish their objectives with
diverse inputs and with varying internal activities (conversion processes).

2.5.2 The Contingency Approach

✍️The contingency approach has gained popularity since the 1970 ’ s although the idea is not
new. It attempts to understand the effectiveness of different managerial techniques under
varying conditions and in specific circumstances. It seeks to match different situations with
different methods and rejects the universality of management syndrome of all the previous
management theories. The basic idea of contingency approach is that there is no one best way of
managing. No plans, no organization structure, no leadership style, no control system fits every
situation. Every organization is unique, existing in a unique environment, with unique
employees and unique goals. Managerial practices and technique that are appropriate in one
situation may not be appropriate in another. This is because the world is too complex to be

31
managed by a single approach in all situations and the contingency theorists believe that there
are many ways to perform the various managerial functions. Thus, students of management must
learn multiple ways to compete, innovate, create, motivate, and lead in the future.

©️The contingency view becomes more important due to certain changes. Some of these changes
are listed below.

 Increased globalization of enterprises and the need for more government business
alliances to compete internally.
 The need for ethical and socially responsive leadership.
 Changing demographics and skill requirements of the workforce.
 The emergence of new organizational structure that emphasizes speed in reacting to
environmental changes.
 Changing needs, preferences, and desires of employees for job security, participation,
ownership, and personal fulfillment.

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