CLASSICAL APPROACHESCLASSICAL APPROACHES

1.1. SCIENTIFIC MANAGEMENTSCIENTIFIC MANAGEMENTContribution of Taylor-Contribution of Taylor-

DefinitionDefinition:- Management is the art of knowing :- Management is the art of knowing what you want to do and then seeing that they do it what you want to do and then seeing that they do it

in the best and cheapest wayin the best and cheapest way

Principles-Principles-

Use of science for the rule of thumbUse of science for the rule of thumbScientific selection and training of workersScientific selection and training of workersCooperation between labours and managementCooperation between labours and managementMaximum outputMaximum outputDivision of responsibility.Division of responsibility.

TECHNIQUES-TECHNIQUES-

Scientific study of work:-Scientific study of work:- Method study, Motion study, time study,Method study, Motion study, time study,

Fatigue studyFatigue study..Scientific task planningScientific task planningScientific selection and traning of worksScientific selection and traning of worksStandarddisationStandarddisationDifferential wage systemDifferential wage systemSpecialization or Functional formanshipSpecialization or Functional formanshipMental revolutionMental revolution

Contribution ofContribution of Frank and Lilian Gilberth- Frank and Lilian Gilberth-

Motion StudyMotion Study

Contribution of Contribution of Henry L.Gantt-Henry L.Gantt-

Task and bonus planTask and bonus planThree categories of workersThree categories of workersSupervisors should also be paid bonusSupervisors should also be paid bonusPublicly demonstrate the efficiencyPublicly demonstrate the efficiency

Contribution ofContribution of Harrington Emerson- Harrington Emerson-

Line and staff organizationLine and staff organization

Principles-Principles-

IdealsIdealsCommon senseCommon senseCompetent counselCompetent counselDisciplineDisciplineFair dealFair dealReliable, Immediate, AdequateReliable, Immediate, AdequateDispatchingDispatchingStandards and SchedulingStandards and SchedulingStandardized conditionStandardized conditionStandardized operationsStandardized operationsStandard practice instructionsStandard practice instructionsReward for efficiencyReward for efficiency

EVALUATION-EVALUATION-Benefits:-Benefits:-1.1. To EmployeesTo Employees -Maximum production-Maximum production -Industrial peace-Industrial peace -benefits of specialization-benefits of specialization2.2. To WorkersTo Workers:: -Better working condition-Better working condition -More remuneration-More remuneration -Improvement in standard of living-Improvement in standard of living -Increase in efficiency -Increase in efficiency

Demerits:-Demerits:-1.1. By owners:By owners: -Difficult to introduce-Difficult to introduce -Only suitable for large scale business-Only suitable for large scale business - Dependency on exports- Dependency on exports2.2. By Workers:By Workers: -Fear of retrenchment-Fear of retrenchment -Lack of initiative-Lack of initiative -opposition by lobour unions-opposition by lobour unions -Exploitation of labourers-Exploitation of labourers -Inhuman behaviour-Inhuman behaviour

2-ADMINISTRATIVE MANAGEMENT2-ADMINISTRATIVE MANAGEMENTBy-Henry Fayol (Process Management)By-Henry Fayol (Process Management)

Business Activities:-Business Activities:-TechnicalTechnicalCommercialCommercialFinancialFinancialSecuritySecurityAccountingAccountingManagerialManagerial

Managerial Activities:-Managerial Activities:-Functions-Functions-

PlanningPlanningOrganizingOrganizingCoordinatingCoordinatingCommandingCommandingControllingControlling

PRINCIPLES:-PRINCIPLES:-

Division of workDivision of workAuthority and responsibilityAuthority and responsibilityDisciplineDisciplineUnity of commandUnity of commandUnity of directionUnity of directionPriority to general interest over industrial interestPriority to general interest over industrial interestFair remunerationFair remunerationEffective centralizationEffective centralizationOrderOrderEquityEquityStability in the tenure of personnelStability in the tenure of personnelInitiativeInitiativeScalar chainScalar chainEsprit de corpesEsprit de corpes

3-BUREAUCRATIC MANAGEMENT3-BUREAUCRATIC MANAGEMENTBy:-Max Weber (German social Scientist)By:-Max Weber (German social Scientist)

Features:-Features:-Proper division of workProper division of workClear hierarchy of authorityClear hierarchy of authoritySystem of rulesSystem of rulesImpersonal relations between peopleImpersonal relations between peoplePromotion based on competencePromotion based on competence

Evolution:-Evolution:-

MERITS-MERITS-

SpecializationSpecializationRegularity of employeesRegularity of employeesImportance to postImportance to post

DEMARITS-DEMARITS-

Paper formality increasesPaper formality increasesRed Tapism increases Red Tapism increases Ignores personal relationIgnores personal relationLack of initiative in the workersLack of initiative in the workersWorkers oppose changeWorkers oppose change

NEO CLASSICAL APPROACHES-NEO CLASSICAL APPROACHES-1.HUMAN RELATION APPROACH1.HUMAN RELATION APPROACH

-Elton Mayo famous psychologist-Haw thorn -Elton Mayo famous psychologist-Haw thorn experimentsexperiments

-Western Electric company’s haw thorn plant in -Western Electric company’s haw thorn plant in U.S.A during 1927 to 1932. the plant U.S.A during 1927 to 1932. the plant manufactured telephone parts 29,000manufactured telephone parts 29,000

Workers were employed. Study was on:- Workers were employed. Study was on:- Relation between light and production.Relation between light and production.Relation between condition of workers and Relation between condition of workers and production.production.Informal group and relation with production.Informal group and relation with production.Relation between economic incentives and Relation between economic incentives and production production

EVALUATIONEVALUATION

Importance:-Importance:-No relation in workers conditions and productivityNo relation in workers conditions and productivityNon economic awards do effect the efficiency of workersNon economic awards do effect the efficiency of workersFactory is a social organizationFactory is a social organizationDemocratic leadership style more effectiveDemocratic leadership style more effectivePsychology of workers is very importantPsychology of workers is very importantWorkers to be associated with decision makingWorkers to be associated with decision makingProper rest interval during working hoursProper rest interval during working hoursWorkers to be properly informedWorkers to be properly informed

Limitations:-Limitations:-Only human factor considered.Only human factor considered.People form separate groups but not a familyPeople form separate groups but not a familyCannot satisfy all with non economic awardsCannot satisfy all with non economic awardsNo more satisfaction in informal groupsNo more satisfaction in informal groups

2.BEHAVIOURAL SCIENCE APPROACH2.BEHAVIOURAL SCIENCE APPROACHBy- Douglas, Fredric Hertzberg, By- Douglas, Fredric Hertzberg,

Abraham Maslow etc.Abraham Maslow etc.

Suggestions:-Suggestions:-

Participation in policy determinationParticipation in policy determination

Human way of treatmentHuman way of treatment

Latest talent of the employees to be Latest talent of the employees to be brought outbrought out

Provide healthy environmentProvide healthy environment

System of self-disciplineSystem of self-discipline

MODERN APPROACHMODERN APPROACH1.Ouantitative Approach-C.W1.Ouantitative Approach-C.W

ChurchmanChurchman (operational research)(1950 (operational research)(1950))

Formula to solve the problem of manager:-Formula to solve the problem of manager:-Theory of probability-Network analysisTheory of probability-Network analysisSampling analysis-Break-Even analysisSampling analysis-Break-Even analysisCorrelation/Regression analysisCorrelation/Regression analysisTime series analysis-Cash benefit analysisTime series analysis-Cash benefit analysisRatio analysis-Waiting line theoryRatio analysis-Waiting line theoryVariance analysisVariance analysisStatistical quality controlStatistical quality controlLinear programmingLinear programmingGame theoryGame theory

2. SYSTEM APPROACH-2. SYSTEM APPROACH-(1960)(1960)

Chester Bernard, Herbert A. Simon and Chester Bernard, Herbert A. Simon and colleaguescolleagues

Whole Organization – a systemWhole Organization – a systemDepartments – Sub systemsDepartments – Sub systemsDecision taken to be after considering all the sub systeDecision taken to be after considering all the sub syste

3.CONTINGENCY APPROACH-3.CONTINGENCY APPROACH-(1970)(1970)

Features:-Features:-Managerial action influences the environmentManagerial action influences the environmentManagerial actions changes according to the situationManagerial actions changes according to the situationCoordination in the organization and environmentCoordination in the organization and environment

Limitations:-Limitations:-What action to be taken in a situationWhat action to be taken in a situationA situation can be affected by many factorsA situation can be affected by many factors