CHAPTER II

PERSEPECTIVE IN
MANAGEMENT
 INTRODUCTION
 There are number of theories developed in the past that contributed to
the expansion of management theory and practice, some of the
important theories are:
 Classical Theory
 Scientific Management Theory
 Administrative Theory
 Bureaucracy Theory
 Human Relation and Behavioral Science Theory
 Human Relation Theory
 Need Hierarchy Theory
 Two Factor Theory
 Theory X and Y
 System Theory
 Decision Theory
 Management Science Theory
 Contingency Theory
 Introduction
Classical theory was started in the beginning of 19th
century. This theory supposes the human beings as
wise economic creature and advocates that the human
beings always work for economic benefits. The
classical theory is the first insightful thought of
management. This includes Scientific Management
Theory, Administrative Management Theory, and
Bureaucracy Theory.
SCIENTIFIC MANAGEMENT THEORY
Frederick Winslow Taylor (1856-1915) is considered the
father of scientific management. He gave birth to
completely innovative ideas in the field of management.
Taylor started working as a general worker for Midvale
Steel Company and later became a supervisor there. He
then joined Bethlehem Steel Company. After retiring
from there, he started working as a consultant. While
working in both companies, he did a number of
experiments to increase workers' efficiency. He rejected
traditional methods and formulated new theories based on
his personal experience and experiments called 'Scientific
Management Theory'.
In the general sense, scientific management provides
information on what to do and how to do it properly.
Under this concept, scientific method is adopted to
select employees, appoint them, train them and solve
various types of industrial problems.
(F. W. Taylor: Scientific management means
knowing exactly what you want men to do and
seeing that they do it in the best and the cheapest
way.)
As a manager, Taylor saw institutions as governed only by
the Rule of Thumb. In this case, he found that industrial
resources were not being fully utilized. There has never
been a systematic effort to find the best way to do things.
There was no proper division of responsibilities between
management and employees. Taylor observed that the
workers of that time deliberately stopped the increase in
production without working full time. Seeing this kind
of situation, he was excited to improve the then
management. He aims to make management a science
based on sound, well-defined and definite principles.
 SCIENTIFIC MANAGEMENT THEORY
Fredrick Winslow Taylor is popularly known as father
of scientific management.
He introduced new philosophy to increase the
productivity of workers, which is known as scientific
management.
Scientific management implies the art of knowing
exactly what is to be done and how it is to be done.
Scientific management is an attitude of applying
scientific knowledge and techniques at work place to
improve management.
SCIENTIFIC MANAGEMENT THEORY

Taylor's
Principles of
Scientific
Management
SCIENTIFIC MANAGEMENT THEORY
Science, not rule of Thumb

Harmony, not Discordance

Cooperation, not individualism

Maximum Output, not restricted

output
Development of Workers

Division of Responsibility
 SCIENTIFIC MANAGEMENT THEORY
Science, not a rule of Thumb: Managers have to apply
scientific methods and approach to solve a problem. This rule
emphasizes experimentation, analysis and observation.
According to this rule, every problem is solved after collecting
and analyzing information rather than using rule of thumb.
Harmony, not Discordance: Scientific management
emphasizes that there should be no conflict between the
interest of the managers and the workers. Managers look for
higher profit and workers look for higher wages, both of their
goals can be achieved through harmony.
Cooperation, not individualism: Group efforts and work
should be encouraged and it is the responsibility of manager to
motivate group work in the organization. Group efforts help to
achieve organizational goal with full commitment.
 SCIENTIFIC MANAGEMENT THEORY
Maximum output, not restricted output: Taylor has given
importance on the maximum output instead of limited or
minimum output. When both the management and workers aim
at higher output by optimum use of resources, it will bring
higher profit for the management and higher wages for the
employees
Development of Workers: Employees working in the
organization should be given opportunity for training and
development to increase the ability to work. This will increase
employee’s efficiency at work and finally help to achieve
organizational goals.
Division of Responsibility: The management must
concentrate in planning of the work and workers for the
implementation of plans in operation.
CONTRIBUTION OF SCIENTIFIC MANAGEMENT
THEORY

 It helps increasing production by using modern machines and

tools, and optimum use of resources
 It seeks to minimize the cost of production, which enables
business firms to increase profit
 It emphasizes on training and development of workers, which
help to increase output and reduces wastage of materials and
time
 It brings changes in the attitude of employer and employee
 It leads to greater economic prosperity and helps improve the
living standard of workers
 ADMINISTRATIVE MANAGEMENT THEORY

HENRY FAYOL(1841– 1925)

Father of Modern Operational management
theory
Principles of management are the
fundamental rules for managing organization
Henry Fayol has recommended 14 principles
of management
(Fayol's Administrative Management
Theory)
Henri Fayol was a French Mining Engineer and director of
mines who developed a general theory of business
administration. He has propounded administrative theory
of management and he has contributed a lot in the field of
development of management. He published his ideas and
experience in his book named General and Industrial
Management in the French language in 1916. It was
translated into English in 1930. In this works Fayol
presented his theory of management, known as Fayolism.
Before that Fayol had written several articles on mining
engineering, starting in the 1870s, and some preliminary
papers on administration.
Henri Fayol was the first to identify the specific
managerial controlling. He described from personal
experience as he was the Managing functions such as
planning, organizing, leading, and Director of French
Coal - Mining Firm. He described the practice of
management as something different from production,
distribution, finance, accounting, and other typical
business functions. He has used the term
administration instead of management.
ADMINISTRATIVE MANAGEMENT THEORY
 Division of work
 Authority and Responsibility
 Discipline
 Unity of Command
 Unity of Direction
 Subordination of individual interest to general interest
 Remuneration of Personnel
 Centralization
 Scalar Chain
 Order
 Equity
 Stability of Tenure
 Initiative
 Esprit de Corps
ADMINISTRATIVE MANAGEMENT THEORY
 Division of Work: Division of work means distribution of right
work to the right person. It helps to develop the concept of
specialization and increases the efficiency among the workers.
 Authority and Responsibility: Authority is the right to give
order and responsibility is obligation to perform the work.
There must be proper balance between authority and
responsibility
 Discipline: Every employee should have to follow rules and
regulations in organizations.
 Unity of Command: This principle states that each employee
should receive orders from one supervisor, this will minimize
the cause of conflict and misunderstanding at the workplace.
 Unity of Direction: There should be one head and one plan for
a group of activities having the same objective.
ADMINISTRATIVE MANAGEMENT THEORY
 Subordination of individual interest to general interest: This
principle states that interest of organization should be above
the interest of individual.
 Remuneration of Personnel: The management must provide
fair wages to the workers for their services. It helps to maintain
the loyalty and increase motivation of workers.
 Centralization: This principle suggest that only few amount of
authority should be given to the subordinates to make decisions
and all major policy decisions should be made at the top level.
 Scalar Chain: All employees are linked with each other in a
hierarchy or superior- subordinate relationship.
Communication should flow from bottom to top.
 Order: This principle says that people and things should be
systematically arranged.
ADMINISTRATIVE MANAGEMENT THEORY
 Equity: There should be kindness and justice to the entire
employees working in the organization. The management has to
avoid the concept of favoritism and partiality among the workers.
 Stability of Tenure: This principle states that the employees turn
over should be minimized, employees need stability of tenure to
perform well. There should be the provision of job security.
 Initiative: Mangers should encourage their employees to take
initiative within their limit of authority and discipline. Initiative
gives subordinates zeal and energy in performing their job.
 Esprit de Corps: This principle reminds “union is strength “, there
should be cohesiveness and team spirit. The management should
avoid divide and rule policy, complex and rigid organization
structure etc.
ADMINISTRATIVE MANAGEMENT THEORY

DAD IS USE SOURCE

 ADMINISTRATIVE MANAGEMENT THEORY

Contribution of Administrative Theory

Administrative management laid heavy
emphasis on universal principles of
management.
This theory laid the foundation for the study
of management functions of planning,
organizing, staffing, directing and controlling.
This theory has provided the conceptual
framework for analyzing the management
process.
This theory has isolated and analyzed
management as a separate discipline.
 Comparison between Taylor and Fayol
 In fact, Taylor and Fayol's contributions to management complement each
other. Both were managers working directly in the industry. The actions of
both Taylor and Fayol are practical in nature. Both wanted to improve the
management process. Although they developed the concept of modern
management in different forms, these two pioneers differed in the
following aspects:
 (1) Taylor's scientific management focuses mainly on work, tools, workers
and employers, while Fayol's administrative management is related to the
efficiency of the administrator or manager.
 (2) Taylor looks at management from a supervisory point of view. He tried
to improve the efficiency of the implementation level in the workshop.
Taylor placed special emphasis on the standardization of work and tools.
Fayol, on the other hand, analyzes management from a higher
management perspective and emphasizes principles such as the unity and
coordination of directives.
(3) Taylor focuses on workshop management. His
principles are applied directly at the workshop and
implementation level. But Fayol focuses on general
management principles and managerial functions. He
argues that his principles are universal.
(4). Taylor's main goal is to improve workers'
productivity by eliminating all kinds of losses and
inefficiencies by standardizing work and tools. Fayol
sought to develop the principles of ubiquitous
management that would help manage best.
(5) Taylor's stated theory is called "Scientific
Management". Taylor's scientific management is really
the management of work. But Fayol's theory is called
"A General Theory of Administration.“
Taylor's scientific management adopts a micro-
approach and Fayol's administrative management
adopts a macro-perspective. So the contributions of
Taylor and Fayol are not contradictory but
complementary.
 BUREAUCRACY THEORY
Max Weber, a German sociologist
developed this theory.

Bureaucracy is a form of organization

characterized by division of labor, a clearly
defined hierarchy, detailed rules and regulations
and impersonal relations.

According to Weber, bureaucracy form is the

ideal way of organizing any large and complex
organization. It puts emphasis on hierarchy.
Max Weber’s Bureaucratic
Theory
मार्क स बेईभरको अड्डातन्त्रको/कर्मचारितन्त्र/
नोकरसाहिको सिद्धान्त
Max Weber (pronouncedVAY-ber)
(1864-1920)
German Sociologist, Administrative, Scholar,
and Political Economist
Received outstanding secondary education in languages,
history and the classics , he studied law, economics, history,
philosophy, at the universities of Heidelberg, Strasbourg,
Gottigen and Berlin.
Worked at the universities of Freiburg (1894), Heidelberg (1897) in Faculty of
Economics.
1911 Weber wrote his famous essay bureaucracy, defining its principle and
characteristics.

His most famous book is “The Protestant Ethnic and

the Spirit of Capitalism”
Introduction
 belongs to the Scientific School of Thought, who discussed such topics as
specialization of job-scope, merit system, uniform principles, structure,
and hierarchy.
 Max Weber described an ideal type of organization which he called a
bureaucracy.
 The term bureaucracy was derived from the French word bureau, meaning
desk or office and the Greek kratos, meaning rule or political power
 A bureaucracy is a body of non elective government officials and/or an
administrative policy making group.
 Historically, it referred to the government administration managed by
departments staffed with nonelected officials. In modern parlance, it refers
to the administrative system governing any large institution.
 Bureaucrat can enjoy traditional power or charismatic power or legal power
in an organization.
Types of Authority
(1) Traditional rested upon people's belief in the age-
old customs and traditions,
(2) Charismatic rested upon the extraordinary
personal qualities of individuals, and
 (3) Rational-legal which is based upon laws, statutes
and regulations.
"According the Max Weber, a bureaucracy is the most
efficient form of organization. The organization has
well-defined line authority. It has clear rules and
regulations which are strictly followed. It
characterized by red-tapism, inflexibility, specialized
division of labor, clear defined hierarchy, fixed rules,
impersonal relationships, formal selection, an
functional specialty.
अड्डातन्त्रको महत्त्व प्रकाश पार्दै हेडी (Heady) लेख्दछन्, "A viable polity
in the world of today must have a public service that
meets the criteria of a bureaucracy." विश्वको जीवन्त राजनीतिसँग
एउटा यस्तो निजामती सेवा विद्यमान हुनुपर्दछ जसले अड्डातन्त्रका मूलभूत गुणहरू
अङ्गीकार गरेको होस् ।
फिफनर र प्रिस्थसका अनुसार "Bureaucracy is the systematic
organization of tasks and individuals into a pattern
which can most effectively achieve the ends of
collective efforts.“ अड्डातन्त्र भन्नाले व्यक्ति र कामको त्यो सङ्गठनात्मक पद्धति
हो जसअन्तर्गत सामूहिक प्रयत्नद्वारा तोकिएको लक्ष्य प्रभावकारी ढङ्गले हासिल गर्न
सकिन्छ ।
 BUREAUCRACY THEORY
Job Specialization

Authority Hierarchy

Formal Selection

Formal Rules and Regulation

Impersonality

Career Orientation
 BUREAUCRACY THEORY

 Job Specialization: job are broken down into simple, routine

and well defined on the basis of functional specialization.

 Authority Hierarchy: Officers or position are organized in

hierarchy, each lower one being controlled and supervised by a
higher one.

 Formal Selection: All the organizational members are to be

selected on the basis of technical qualification demonstrated by
training, education or formal examination.
 BUREAUCRACY THEORY

 Formal Rules and Regulations: To ensure uniformity and to

regulate action of employees, the managers must depend
heavily on formal rules.

 Impersonality: Rules and controls are applied uniformly,

avoiding involvement with personalities and personal
preference of the employees.

 Career Orientation: Managers are professional officials rather

than owners of the units that they manage. They work for fixed
salaries and pursue their careers within the organization.
 CONTRIBUTION OF BUREAUCRACY THEORY

 Useful in managing big and complex organization.

 Rational decision making is based on clear cut objective.
 Specialization is possible on the basis of the division of labor.
 Hierarchy of authority is clearly defined.
 Selection and promotion are possible.
 HUMAN RELATION APPROACH

The famous Hawthorne studies marks as the beginning of

human relation theory. It consists of series of experiment
conducted by Elton Mayo and his associates for more than
eight years. These experiments was conducted at the
Hawthorne plant of western electric company in USA from
1927-1932.
 HUMAN RELATION APPROACH
1. Illumination Experiment:
 One of the popular studies was on the effect of illumination on
work productivity. In this study, two groups- control and
experiment were formed to find out the effects of bright and
dim light. The control group worked without changes in the
lighting, the experimental group worked in fluctuating lighting
condition. The experiment provided surprising outcome and
found no relation between illumination and performance. In
other words, productivity of both group increased.
 Researchers of the study concluded that human element
(specifically relations among the co-workers) is important in
the workplace. The research outcomes revealed the importance
of valuing workers and the importance of relation between
individual sentiment towards working environment and
resultant behavior of the workers.
2. Relay assembly test room
experiment
3. Mass Interviewing Programme
4. Bank Wiring Observation Room Experiment.
Relay assembly test room
experiment
Relay assembly test room experiments were
designed to determine the effect of changes in
various job conditions on group productivity.
Several new elements were introduced in the
working environment such as shorter working hours,
proper rest periods, improved physical conditions,
friendly supervision,, and free social interaction
among the group members.
Mass Interviewing Programme

During the course of experiments, about 20,000

interviews were conducted between 1928 and 1930
to determine employees’ attitudes towards company,
supervision, insurance plans, promotion and wages.
Initially, these interviews were conducted by means
of direct questioning such as “do you like your
supervisor?” or “is he in your opinion fair or does he
have favorites?” etc.
Some of the major findings
of the programme were as
follows:
 A complaint is not necessarily an objective recital of
facts; it is a symptom of personal disturbance the
cause of which may be deep seated.
2. Objects, persons or events are carriers of social
meanings. They become related to employee
satisfaction or dissatisfaction only as the employee
comes to view them from his personal situation.
Bank Wiring Observation Room
Experiment
These experiments were conducted to find out the
impact of small groups on the individuals. In this
experiment, a group of 14 male workers were formed into
a small work group. The men were engaged in the
assembly of terminal banks for the use in telephone
exchanges.
The work involved attaching wire with switches for
certain equipment used in telephone exchanges. 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.
The following were the main
conclusions drawn by Prof.
Mayo on the basis of
Hawthorne studies:
 Social Unit:
Group Influence:
Group Behaviour:
Motivation:
Supervision:
 CONTRIBUTION OF HUMAN RELATION
APPROACH
 This theory focuses on managerial attention towards
organizational motivation, group dynamic and interpersonal
relation.
 This theory establishes in employees or workers as the most
important resource.
 Employees are not motivated solely by money, personal and
social factors are important to motivate employee’s attitudes
toward their work.
 It has greatly emphasized the role of individual psychology and
group behavior for organizational effectiveness.
 BEHAVIORAL SCIENCE THEORY

Behavioral science is concerned with scientific investigation,

analysis and understanding human behavior in organization.
Behavioral science theory consist of:

 Maslow's Need Hierarchy Theory

 Two Factor Theory
 Theory ‘X’ and ‘Y’
 NEED HIERARCHY THEORY

This theory was developed by Abraham Maslow in 1943 A.D.

According to his clinical experiment, he finds five basic needs

which motivate employees to behave in certain ways at work.

Therefore, a manager must understand the ‘hierarchy of

needs’.

These five hierarchies of needs are as follows

 NEED HIERARCHY THEORY

Higher Order Needs

SELF
ACTUALIZATION
NEEDS

ESTEEM NEEDS

SOCIAL NEEDS
Lower Order Needs
SAFETY / SECURITY NEEDS

PHYSIOLOGICAL / BASIC NEEDS

 NEED HIERARCHY THEORY
Physiological Needs: These are the basic needs of air, water,
food, clothing, shelter etc. They are the lowest level of needs.
Basically, salary satisfies the physiological needs in an
organization.
Safety Needs: Safety needs includes physical environmental
and emotional safety and protection, such as job security,
financial security, family security, health security etc. In an
organization, provident fund, pension fund and health
insurance satisfy the safety needs of the employees.
Social Needs: Social needs include the need for love, affection,
care, belongingness and friendship. Informal groups, friends at
work and the employee’s club satisfy the social needs of the
employees in the organization.
 NEED HIERARCHY THEORY

Esteem Needs: Esteem needs include recognition, power,

status, attention, administration etc. Basically, in an
organization, position titles, lavish office, luxury cars satisfy
esteem needs.
Self Actualization Needs: This includes the urge to become
what you are capable of becoming. It includes the need for
growth and self contentment. It also includes desire for gaining
more knowledge, social service, creativity. The self
actualization needs are not fully satisfactory.
 TWO FACTOR THEORY

This theory is also called the dual factor theory of motivation

or hygiene theory of motivation.

Fredrick Hertzberg has developed this theory.

From his study on 200 engineers and accountants he found that

there are two sets of needs or factors namely motivating factor
and hygiene factor to motivate employees.
In carrying out the research, Herzberg and his
associates asked participants to describe job
experiences that produced good and bad feelings
about their jobs. From his finding, he found that
there are two sets of factors, viz. hygiene factors
and motivating factors.
 TWO FACTOR THEORY
Hygiene Factors: Hygiene factors are also known as
dissatisfiers or maintenance factors. The presence of these
factors does not motivate employees, but their absence causes
dissatisfaction. For example: company policy and supervision,
relationship with supervisor, working condition, salary , job
security etc. These factors are necessary to maintain a
minimum level of need satisfaction.

Motivating Factors: Motivating factors are also knows as

motivators, satisfiers or job content factors. These factors are
job centered and the presence of such factors causes high level
of motivation and job satisfaction. For example: achievement,
recognition , responsibility etc.
 THEORY X AND Y
Douglas McGregor invented this theory and is also known
as “hard guy, soft guy” approach of managing people in
organization.
According to McGregor there are two sets of assumption to
manage people in the organization.
One set of assumption known as theory ‘X’, describes
employee with relatively negative views.
On the other hand, theory ‘Y’ with another set of
assumptions, describes employee positively.
This theory assumes that people are motivated by
satisfying their lower level needs whereas, theory’ Y
‘assumes that employees are satisfied by satisfying their
higher level needs.
 THEORY X AND Y
 The general assumption of theory X are:
 Employees inherently dislike work and whenever possible, will attempt to
avoid it
 Since employees dislike work, they must be corrected, controlled or
threatened with punishment to achieve desired goals
 Employees will avoid responsibility and seek formal direction whenever
possible
 Most workers place securities above all other factors associated with work
and will display little ambition
 The general assumption of theory Y are:
 People will become committed to organizational objectives if they are
rewarded for doing so
 People will exercise self-direction and self control if they are committed to
objectives
 The average person can learn to accept and seek responsibility
 Many people in the general population have imagination and creativity
 SYSTEM THEORY
General systems theory was founded by the
biologist Ludwig von Bertalanffy.
This approach is based on a belief that an organization is a
system consisting of interrelated and interdependent
components which forms the unitary whole.

A system is a set of interrelated and interdependent parts that

work together to achieve a common goal.

A system transforms inputs into outputs by adding means and

resources. Therefore, all systems composed of three basic
elements- inputs, process and output.
The systems theory of management asserts that any
organisation is a single, unified system of interrelated
parts or subsystems. Each part of the overall system is
dependent on the others and cannot function optimally
without them.
 SYSTEM THEORY
EXTERNAL ENVIRONMENT

INPUTS PROCESSING OUTPUT

Human Planning Goods and

 Financial Decision Making Services
Physical Leadership Profit or Loss
Information Control Employee’s
Behavior

FEEDBACK
 SYSTEM THEORY
 Input: Input consists of human, financial, physical and information.
Competent and experienced personnel, good physical infrastructure, and
sufficient capital are essential for achieving organizational goal.
 Processing: Organization are processing units. They convert raw materials
into finished products through conversion process. Sound Planning,
decision making, good leadership and proper control are essential for
processing.
 Output: Output is the product of the organization. Outputs are supplied in
the market and feedback is received. If the organization is able to supply
quality goods, the customer will have positive attitude towards the
organization and vice versa.
 According to this theory, there are two basic types of system – closed and
open system. Closed system do not interact with the environment and are
not influenced by them, they are mostly mechanical and predetermined
activities that must be preformed regardless of their environment. Open
system concerned with the transformation of input into useful outputs
required by the environment.
 DECISION THEORY

Herbert Simon has developed this theory.

He considered the management process as the decision making

process. Whatever, a manager does is the outcome of a
decision made by them from the set of alternatives.

Decision making process depends on the decision making

ability of the manager, hiring new employees, introducing new
product, creating an organizational structure and setting
objective, all are dependent on the manager’s decision.
The decision theory of management explores how choices
are made within uncertain and unknown environments. It
combines mathematical, philosophical, statistical, and
psychological tools to understand the decision-making
process. By analyzing an individual’s beliefs, attitudes,
and desires, decision theory helps determine the best
logical decision possible in unpredictable circumstances.
Simply put, decision theory is that theory that emphasizes
managers make rational decisions out of any
circumstances that best deliver value to the organization.
 DECISION THEORY
The main characteristic of this approach are as follows:

 Management is basically a decision making process.

 Managers of an organization are decision makers and problems
solvers.
 The productivity and efficiency of organization depends upon
the quantity of management decisions.
 Participative approach is desirable in decision making.
 Proper information management system is essential for
decision making.
 MANAGEMENT SCIENCE THEORY

This theory is also called quantitative approach or operational

research or mathematical approach.

It considers management as a system of mathematical process

and models to solve complex business problems.

It extensively uses quantitative tool and techniques such as

operation research, linear programming, game theory, sampling
theory, probability theory, simulation and PERT (program
evaluation and review techniques).
Management science theory emphasizes on
applications of mathematics and statistics
for decision-making and solving
management problems. This theory focuses
on solving technical problems rather than
human relations problems. And computer
programs are used to analyze the problems.
 MANAGEMENT SCIENCE THEORY

The main features of this theory are as follows:

 Management science theory uses mathematical tool, models
and techniques for rational and quick decision making.
 Management process can be quantified and described in
mathematical models.
 Management is a sequential and logical process.
 It focuses on maximizing performance and efficiency.
 It also gives emphasis on decision making, economic
effectiveness and use of computer.
 CONTINGENCY THEORY
The contingency theory of leadership was proposed by
the Austrian psychologist Fred Edward Fiedler in his
landmark 1964 article, "A Contingency Model of
Leadership Effectiveness." The contingency theory
emphasizes the importance of both the leader's
personality and the situation in which that leader
operates.
The contingency theory is also called situational or practical
approach to management.
This theory states that managerial practice depends on
situation.
There is no one best way in the world of
management. Each situation is unique and
demands unique managerial action.
Manager should be situation sensitive in their
behaviors. Effective managerial behavior in one
situation can’t be generalized to other situations.
In this way, effective management differs on the basis
of size, nature, situation and challenge etc of a
business organization.
 CONTINGENCY THEORY
The main characteristics of this approach are as follows:

 Organizations are open system and interact regularly with the

environment.
 Situational contingencies influence the strategies, structure and
process that result in high performance.
 There is more than one way to reach a goal.
 Managers may adopt their organization with the situation.
 It is based on imperial researches and has developed its tools
on real findings in varied situations.
EMERGING CHALLENGES FOR MANAGEMENT
Globalization: Globalization is the tendency of expanding
business in different countries, manager have to work in
boundary less world which invites global competition.
Organization should increase quality of product and reduce
cost which is a challenge for manager.
Technology: Technology is a method or process converting
inputs into outputs. The technology is shifting towards
computation, digitalization, automation and robotics that
affects in decision making. Managers have to cope with all
these changes taking place in technology and their
management.
Workforce Diversity: Diversity refers to similarities and
differences among employees in terms of age, cultural
background, religion and social orientation. How to manage
such diversified workforce is a great challenge for managers.
 EMERGING CHALLENGES FOR
MANAGEMENT
Quality Assurance and productivity: Quality is the ability of
the product to satisfy customers need. How to improve quality
of the product or how to assure customers about the quality of
the product has become a great challenge for management.
Improved technology, employee's regular skill development
and better utilization of resource help to increase productivity
which is a challenge for management.
Innovation and Change: Management must pay attention on
innovation and change. Old and outdated product can’t satisfy
customers, there must be new inventions of ideas, new
invention of product. Continuous innovation of new ideas, new
techniques, new methods become challenges for management.
MCQ
1. Which is not a classical theory of management?
a. Scientific management theory
b. Administrative management theory
c. Bureaucratic theory
d. Human Relation theory
2. Who is known as father of scientific management
theory?
a. F.W. Taylor b. Max Weber
c. H. Fayol d. P. Drucker
3. Which of the following is not a principle of
scientific management theory?
a. Development of science
b. Co-operation between management and worker
c. Mental revolution
d. Restricted output
4. Which is not a principle of administrative
management theory?
a. Division of work b. Unity of command
c. Unity of Direction d. Inequality
5. which of the following is not a feature of
bureaucratic organization?
a. Division of work
b. Administrative hierarchy
c. Official record
d. Flexible
6. which of the following is not a principle of
bureaucratic organization/ theory?
a. Formal hierarchical structure b. Division of labor
c. Official record d. Flexible
7. which of the following is not a phase of human
relations theory experiments?
a. Illumination experiments
b. Bank wiring observation room experiment
c. Relay assembly test room experiment
d. Mass production program
8. which of the following is not a need in Maslow’s
need hierarchy?
a. Safety/ security needs b. Social/ belongingness
c. Self- actualization needs d. Self- commanding needs
9.
 Which of the following theory assumes people are
inherently happy to work?
a. Theory V
b. Theory X
c. Theory W
d. Theory Y
10. which of the following is the situational approach to
management?
a. System theory b. Human relation theory
c. Contingency theory d. Management science theory
1. D
2. A
3. D
4. D
5. D
6. D
7. D
8. D
9. D
10. C
 ASSIGNMENT
Explain the challenges of Management.