ateng. (tle)
TRANSCRIPT
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Contributions to statistics
Pearson's work was all-embracing in the wide application and development of
mathematical statistics, and encompassed the fields of biology,
epidemiology, anthropometry, medicine and social history. In 1901, with
Weldon and Galton, he founded the journal Biometrika whose object was the
development of statistical theory. He edited this journal until his death.
Among those who assisted Pearson in his research were a number of female
mathematicians who included Beatrice Mabel Cave-Browne-Cave and Frances
Cave-Browne-Cave. He also founded the journal Annals of Eugenics (now
Annals of Human Genetics) in 1925. He published the Drapers' Company
Research Memoirs largely to provide a record of the output of the Department
of Applied Statistics not published elsewhere.
Pearson's thinking underpins many of the 'classical' statistical methods which
are in common use today. Examples of his contributions are:
Correlation coefficient. The correlation coefficient (first conceived by
Francis Galton) was defined as a product-moment, and its relationship with
linear regression was studied.[10]
Method of moments. Pearson introduced moments, a concept borrowed
from physics, as descriptive statistics and for the fitting of distributions tosamples.
Pearson's system of continuous curves. A system of continuous univariate
probability distributions that came to form the basis of the now conventional
continuous probability distributions. Since the system is complete up to the
fourth moment, it is a powerful complement to the Pearsonian method of
moments.
Chi distance. A precursor and special case of the Mahalanobis distance.[11]
P-value. Defined as the probability measure of the complement of the ballwith the hypothesized value as center point and chi distance as radius.[11]
Foundations of the statistical hypothesis testing theory and the statistical
decision theory.[11] In the seminal "On the criterion..." paper,[11] Pearson
proposed testing the validity of hypothesized values by evaluating the chi
distance between the hypothesized and the empirically observed values via
the p-value, which was proposed in the same paper. The use of preset
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evidence criteria, so called alpha type-I error probabilities, was later proposed
by Jerzy Neyman and Egon Pearson.[12]
Pearson's chi-squared test. A hypothesis test using normal approximation
for discrete data.
Principal component analysis. The method of fitting a linear subspace to
multivariate data by minimizing the chi distances.[13][14]
Principles
Of
Management
Aashiq
Gems b school
Contents : Acknowledgement Abstract CENTRALISATION AND
DECENTRALISATION
> Control of Personnel
> Motivation of Personnel
> Training of Personals
> Screening and selection of managerial personnel
> Sources of recruits of selection of managerial personnel
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> Selection of Managerial Personnel
> Managerial job evaluation
> Managerial job descriptions and man specifications
> Analysis of Managerial Jobs
> Nature and importance or staffing
> Role of Functional Manager
> Matrix Organization
> Characteristics of committee organization
> Committee Organization
> Advantages and Disadvantages of functional organization
> Line and Staff Organization
> Advantages and Disadvantages of Line Organization
CONCEPT OF MANAGEMENT
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> Systems Approach of Management Thought
> Human relations Approach of Management Thought
> Contribution of Henry Fayol of Classical Approach
> Harrington Emerson Contribution of Classical Approach
> Frank Gilbert Contribution of Classical Approach
> Taylor's Principles of Classical Approach
> Classical Approach of Management Thought
> Pre-Scientific Management
> Early Contribution
> Classification of Management Thought
> Development of management thought
> Managerial job in business
> Functions of management
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> Fayol's principles of management
>
ACKNOWLEDGEMENT :
The Project work was carried out under the remarkable guidance of Dr.
Lakshman Lecturer , Great Eastern Management School. I am grateful for his
guidance, valuable Suggestions and for the constant encouragement and co-
operation.
ABSTRACT :
The present study examines centralization and decentralization and concept
of management
Subjective well being among Principles of management.
Chapter 1 : CENTRALISATION AND DECENTRALISATION
Introduction :
The terms centralization and decentralization, however, are used to give
various connotations. The semantic variations range from administrative,physical and functional centralization to decentralization.
At the same time, decentralization is taken to mean separation of facilities, a
type of organization structure, and delegation of decision-making power. Its
more common use in management literature, however, shows extent of
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delegation of authority. Thus, centralization can be defined as the delegation
of authority to the lowest levels of management.
Centralization and decentralization describe the manner in which decision-
making responsibilities are divided among managers at different levels of
managerial hierarchy. Decentralization is different from delegation of
authority. Delegation simply refers to the entrustment of responsibility and
authority from one individual to another, decentralization refers to the
systematic delegation of authority in an organization-wide context. Thus
delegation is said to be the process and decentralization as the result of
process. There can neither be absolute centralization nor absolute
decentralization. The concepts of centralization and decentralization are nor
absolute decentralization. The concepts of centralization and decentralization
are two extreme points in matters of distributing authority in the organization
structure, and in between these two points, there may be a continuum ofauthority distribution
Control of Personnel
To control managers and their activities, the managerial performance is
assessed in terms of established standards, and any failing from the standard
is assumed to be the result of established standards, and any failing from the
standard is assumed to be the result of faulty decisions made by some
managers.
This system of remote and indirect control fails to trace out the responsible
managers in many cases and to prevent recurrence of undesirable results in
the organization. In the first place standards cannot be established for
measuring all activities of enterprise. Secondly, poor and unsatisfactory
performance may arise from some extraneous factors behind which
managers can take shelter to evade their unsatisfactory work; many minor
deviations from the standard are ignored as a matter of practical expediency.
Fourthly, where undesirable performances stem from the faulty decisions of
top managers, no precise steps can be taken to ensure their activities.
Motivation of Personnel
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Motivation must begin with the managers who, in turn, are expected to
motivate other employees of the enterprise.
To motivate the managers, their basic wants and desires are to be satisfied
by the enterprise. Some of the important wants of the management
personnel are: (a) opportunity for development; (b) satisfactory spirit of the
organization grounded in high standards of justice, integrity and conduct; (c)
status prestige and respect for the manager in the enterprise; (d) freedom of
operation within the framework of a clearly defined character of right, duties
and obligations; and (e) satisfying the rewarding job. If these wants are not
fulfilled, management members are bound to develop frustration, discontent,
and even bitterness in course of time, and as a result their performance will
come down to safe mediocrity.
There are three vital areas in which managerial wants are highlighted by
decisions for them.
First, placement decisions with respect to mangers should be made by
systematic appraisal of the managers performance, ability, potentiality and
aptitude. Secondly, promotion decisions become crucial to manger's
motivation. Promotions must always be based upon measured performance
and proven ability. Thirdly, remuneration of mangers should be high enough
to give the necessary status and prestige in the organization. In respect of
salary, what matters more is not the absolute amount of remuneration but
salary differentials between managers.
Training of Personals
Training may be given in a variety of way, partly within the organization and
partly through study courses at outside centers.
The training methods are to be specific to suit the needs of both candidates
and the enterprise. Combination of two or more methods has been found to
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yield satisfactory results. Some of the important methods are job assignment,
job rotation, internal coaching, study courses, case studies, training
positional; task force on special assignment, committees and junior boards,
conferences and seminar. Methods of training vary according to the three
distinct levels of management, viz., supervisory training, junior-executive
training and senior executive training.
By job assignment, trainees are made familiar with the pattern of duties that
they are going to undertake and with the problems and situations that they
are to cope with. Necessary guidance an counseling are provided by senior
managers through answering queries, making suggestions and giving
explanations in all phases of the job.
Under job rotation, a trainee is experienced in different activities so as to
enrich his knowledge, vision and capacity. The number of jobs and their
sequence carefully chosen by senior mangers, and the trainees are kept at
each job for a fairly long period so that they can get into the techniques and
practices utilized by the enterprise to reach its objectives.
Internal coaching is provided by the trainee's superior to make him familiar
with policies andprocedures relating to specific work. In addition,
management principles and techniques, in general terms, are brought within
the knowledge to trainees who are deficient techniques, in general terms, are
brought within the knowledge to trainees who are deficient in this respect. A
series of written instructions is used for management teaching within the
enterprise.
Study courses are arranged with a formally organised institution which
imparts training in various aspects of the management study. As the
management skill is in rudimentary in our country special study appear to be
more important for upgrading the management competence.
Case studies provide sample though-provoking materials to trainees for the
purpose of increasing their analytical ability, they offer also an opportunity to
master the art of utilizing theoretical knowledge for practical purpose, there
by bridging the gap between theory and practice.
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Committees and junior boards are constituted by some selected managers of
the middle-level group in order to prepare candidates for senior-executive
positions.
Screening and selection of managerial personnel
The actual selection is based on the appraisal of three basic factors-ability,
personality an social traits.
Ability traits are composed of intelligence, education, training and experienceof the candidate. Personality traits centre round the power to get along with
people and include the attributes of firmness, determination, stability and
leadership. Under social traits, the candidate's economic position, community
status, willingness to travel and radiness to shift residence to other place are
appraised. These three basic traits are examined by means of biographical
records, psychological test are put to a further study and observation at the
interview stage.
Sources of recruits of selection of managerial personnel
There are three basic sources, from which managerial personnel can be
obtained, viz., candidates from other companies, persons promoted from
within the company, and fresh graduates universities and technical
institutions.
The first source is tapped sometime for securing managers of special ability
in connection with manufacturing and marketing activities. To tone up themanagement efficiency an outsider is occasionally taken in at the top level
for infusing new blood, vigor and drive in the enterprise. The second source is
much to the liking of employees and acts as a strong incentive to satisfactory
work performance. Most of the higher level jobs are filled from promotions
within the company. The third source is becoming popular with large
companies which have adopted programmes for management development.
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Fresh graduates with wider outlook and satisfactory background knowledge
prove to be excellent materials for developing them into successful mangers.
Selection of Managerial Personnel
Selection of managerial personnel requires considerations of the sources of
recruits and the screening method applied
Sources of recruits
Screening and selection
Managerial job evaluation
Evaluation of managerial jobs is concerned with the ranking or gradation of
such in terms of known-how required, problems encounted and accountability
involved.
The comparative worth of different jobs is indicated in respect of
remuneration, status, prestige, office facilities and other like thing. There are
two usual methods for evaluating managerial jobs, viz., (a) comparison
method, and (b) job factor method. Under the comparison method, the
managerial jobs at different levels are compared to some key positions like
the chief executive, the accountant and the factory superintendent both
within and outside the company but applying subjective judgment, the job
differences are expressed in salary differentials between managers. Under
the job factor method, the pertinents job factors like education, training,l
experience, responsibility and work conditions are assigned individual
weights and points for comparing managerial jobs on the basis of aggregatepoints these point-rating systems are mostly used for lower-level jobs with a
view to fixing their salary scales and levels.
Managerial job descriptions and man specifications
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Position or job descriptions involve an analysis of responsibilities and duties
associated with various managerial positions in the organisation structure.
Job descriptions are spelled out in greater details so as to find out the exact
scope of varying jobs in the enterprise. Once job descriptions are prepared,
an assessment of future managerial requirements can be made from known
retirements, projected expansions and anticipated changes.
Analysis of Managerial Jobs
Staffing of executive personnel must be preceded by an analysis of
managerial jobs.
Unless the content or the make up of managerial job is known, recruitment of
managerial personnel is not possible. The results of job analysis are usually
indicated by the preparation of position descriptions or job descriptions.
Managerial job descriptions and man specifications
Managerial job evaluation
Nature and importance or staffing
The systematic approach to the problem of selecting, training, motivating an
retaining good personnel in any organisation is referred to as staffing. The job
of staffing is concerned with recruitment and development of managers and
their maintenance in a high spirit
It entails management manpower planning with a view to recruiting and
training executives. Also, it calls for the satisfaction of managerial wants
through the provision of individual motivation and the introduction of self-
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control on the part of mangers.
Management manpower planning involves an estimate of the present and
future requirements of executive positions in the enterprise. The demand for
mangers has steadily grown in all progressive and expanding enterprises
during the past several decades. In addition to this demand, existing
managers require constant replenishment because of their retirement,
resignation, death or oven dismisal in some cases. Accordingly, management
manpower planning must be undertaken on a continuous basis. But without
studying the organisation structure and its job requirements, the managerial
positions can neither be planned nor filled.
To make an effective manpower planning, organisation planning must begone
through to find out the exact time when a certain number and type of
managerial personnel are required in the enterprise.
Role of Functional Manager
A functional manager is charged with managing a functional entity in support
of the system of projects that are flowing through the organisation
In this context, the role of a functional manager is as follows:
A functional manager is responsible for one of the principle elements of the
organisation, such as production, marketing, finance, etc. He has to provide
functional services in his disciplines and for supporting all; the projects in the
organisation.
The functional manger has line authority over this personnel in the project.He is responsible through the chain of command for his department. A
functional manager tends to concentrate on the activities of his discipline.
Each functional manger tends to emphasise his own function. Sometimes,
this tendency creates conflict in the organisation. Since the responsibility of
the functional manager is limited to his area, he seeks to make that area as
efficient and effective as possible, often without regard to the effect of his
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function on others or on the basic task which the organisation has to perform.
Matrix Organisation
Matrix organisation is the realization of a two-dimensional organisation which
emanates directly from the two dimensions of authority
Two complementary organisations- the pure project organisation and
functional organisationare merged to create the matrix organisation.
Sometimes matrix and project organisations are considered as the same
because of the same nature of authority relationships. For taking and
managing projects, separate identifiable units are created. In pure projectorganisation, complete responsibilities for the task as well as all the resources
needed for its accomplishment are usually assigned to one project manager.
In large projects, the organisational units for projects resemble a regular
division, relatively independent of any other division. In matrix organisation,
the project manager is usually not assigned complete responsibility for
resources. Instead, he shares them with the rest of the orgnaisation. Pure
project organisation is most effective when an organisation is dealing with a
small number of major projects. When the organisation has a variety of
projects, ranging from large to small, it is often desirable to use a matrix
organisation. For programmes of major magnitudes, a project type of
management may be established, but the rest of the operations may be
carried out by the functional organisation. In such a case, there are well-
established functional departments which have skills and capabilities for
preformance of a variety of programmes. Essentially programmes flow
through the functional complex and receive the services of these specialised
departments.
In matrix orgnaisation, a project manager is appointed to co-ordinate the
activities of the project. Personnel are drawn from their respective
administrative department. Upon completion of the project, these people may
return to their original departments for further reassignment. In the
functioning of the matrix organisation, the unity of command principle is
violated. Each functional staff has two bosses-his administrative head and his
project manager.
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Characteristics of committee organisation
On the basic of the definition, following broad characteristics of a committee
any be spelled out.
A committee is a group of persons there should be at least two persons.
There is no limitation on the maximum number of persons. However, if
number of persons rises above seven, communication tends to become
centralized because committee members do not have adequate opportunity
to communicate directly with one another.
A committee is charged with dealing with specific problems and it cannot
go in for actions in all sphere of activities. There are strictly defined
jurisdictions within which a committee is expected to justify its existence.Beyond these limited spheres a committee is doomed to fail as an organ of
action.
Members of the committee have authority to go into details of the
problems. This authority usually is expressed in terms of one vote for each
member.
A committee have the authority either to take a final decision or it may
merely decision or it may merely deliberate on problems without authority to
decide.
A committee may be constituted at any level of organization. Moreover,
the members of a committee may be drawn from various levels. Usually in
such a case, all the members of the committee enjoy equal authority.
Committee Organisation
Organisation committees are quite popular at different levels for various
functions. The board of directors is a committee.
Similarly, there may be executive committee, finance committee, audit
committee, bonus committee, planning committee, grievance committee,
etc. Exact definition of a committee is difficult because there are many
different kinds of committees and the concept of a committee may be
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defined as a group of persons in an organization to another. However, a
committee may be defined as a group of persons in an organization for taking
or recommending certain decisions.
Advantages and Disadvantages of functional organization
The main advantages of functional organisation are the greater degree of
specialisation, increase in operational efficiency, economic flexibility, co-
ordination within the function, and projecting of outstanding skills.
The major drawbacks are the problems and difficulties of multiple command,
indifferent approach of managers, problems of co-ordination, and lack of well-defined responsibility.
Line and Staff Organisation
Line and staff organisation refers to a pattern in which staff specialists advice
line managers to perform their duties.
When the work of an executive increase, its performance requires the
services of specialists which he himself cannot provide because of his limited
capabilities on these fronts.
Such advice is provided to line managers by staff personnel who are
generally specialists in their fields. The staff positions or departments are of
purely advisory nature. They have right to recommend, but have no authority
to enforce their preference on other departments.
In actual practice, sometimes it is difficult to determine which departments
are line or staff. The problem can be usually solved by classifying activities
within an organisation in two types: (i) that which is objective (direct) in its
contribution. to the organisations' overall objectives, and (ii) that which is
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objective (indirect) in the contribution to the organisations' The departments
performing former group of activities are line ones, and those performing
latter group of activities are staff ones.
Advantages and Disadvantages of Line Organisation
The main advantages of line organisation are it is simplicity, clear authority
and responsibility, unified control, quick decisions, co-ordination, and
discipline.
The disadvantages include no scope for specialisation, rigidity, unitary
system, problems in departmentation and red-tapism. In the modern businessworld. Its scope is limited only to small organisations. In a large organisation,
where high premium is placed on specialisation, this form is totally
unsuitable.
Chapter 2 : CONCEPT OF MANAGEMENT
Intoduction :
Management is an activity process composed of some basic functions, for
getting the objective of any enterprise accomplished through the efforts of its
personnel. Wherever and whenever objectives are to be achieved through
organized and co-operative endeavour, management becomes essential for
directing and unifying the group efforts towards a common purpose. As
human aims and beliefs are mostly realized through the establishment of
diverse associations in our society, management is universally needed for
operating all such organisation.
Management, viewed as a functional concept, is of equal necessity to the
educational religious, charitable and other non-business institutions as it is
required for business Organizations.
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Furthermore, the greatest and the most comprehensive of our social
organizations, viz., the Government of all types needs management as others
require, perhaps more than all other social organizations. That the
Government without requires a management process has been apply pointed
out in the statement: A Government without good management is a house
built on sand. Put in short, management is an essential accompaniment of allsocial organizations, and it is to be found everywhere as a distinct, separate
and dominate activity. The nature and significance of the activity do not
change even if it is called administration in some social in situations and
management in others.
Management is the only activating element of any enterprise for getting
things done through it personnel. The job of management is to provide
dynamic leadership that combines the productive but passive resources into
a fruitful organization. Not only does it adapt itself to existing opportunities,restrictions and pressures, but it exercises a positive influence as well as to
make the future events favourable for the enterprise. With a view to getting
the expected results and seeing that things happen as they should,
management has to become a creator of the economy rather then its
creature. Management forges ahead through innovations in operating
situation and the adoptian of far-sighted planning. It visualize the future,
initiates changes and achieves the purpose of any enterprise under highly
dynamic conditions. As an activity process, management plans the future
course of action, organizes people and their work, directs the operation an
controls the performance, and thus ensures the accomplishment of enterpriseobjectives. Adaptations and innovations permeate through each of these
phases of the management process.
Management acts as a creative and invigorating force in the organisation. It
creates result that is bigger than the sum total of efforts put in by the group.
Management adds real plus value to the operation of any enterprise by
enlisting as little extra value out of each person. It provides new ideas,
imaginations and visions to the group working an integrates its efforts in such
a manner as to account for better results. It ensures a smooth flow of work inthe organization by focusing on strong points, neutralizing weak link,
overcoming difficulties and establishing team spirit. Management strives to
secure the maximum result by the use of minimum resources.
Systems Approach of Management Thought
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The systems approach, also labeled as modern theory of management, is a
relatively new approach though neither the terms management and
organization nor the system is a new concept.
Over the past tow decades or so the systems approach has emerged as
vigorous and lively. Now, we are bombarded with reference to system in
various walks of life. Everything is a system and the system thinking is the by
work. We have entered a period that forces man to find more accurate
answers to questions involving the 'wholeness' of an operation. This age of
synthesis forces management to think out in new and different ways- as
suggested by the systems approach. In this view the whole is not merely a
combination of the system but distinct from it s parts. Before analyzing how
an organization functions as a system, it is imperative to analyze the concept,and working of the system.
A system is defined as the assemblage of things connected or
interdependent, so as to form a complex unity; a whole composed of parts in
orderly arrangement according to some scheme or plan. This has been
defined as 'an organized' or complex whole; an assemblage or combination of
things or parts forming a complex unitary whole.
Various authors on systems approach have attempted to develop a
generalized theory which can be applied to any system-physical, biological,
or social. They have termed is as General Systems Theory (GST). The theory
is concerned with developing a systematic, theoretical framework for
describing the empirical world. Buckley describes its role as such, 'A which
functions as a whole by virtue of the inter-dependence of its parts I called a
system and the method which aims at discovering how this is brought about
in widest variety of systems has been called General Systems Theory.
General Systems Theory seeks to classify systems by the way their
components are organized and to derive the laws, or typical patterns ofbehavior, for the different classes of systems singled but by the taxonomy.
The first basic stage in system management is the determination of
organization system. Since organization is a deliberate and purposive
creations, the basic objectives of the organization should be determined
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before its creation. Determination of objectives is important because every
attempt is directed towards realization of these objectives. In the second
stage, each element of the organization is arranged in some combination to
provide desired results.
Systems design provides the overall framework for implementing systems
concepts. It includes strategic and comprehensive planning for the entire
organizational system, as well as the development of operation and
facilitating sun-system. The third stage-operation and controlrefers to
conversion of inputs into outputs. Inputs may be in the form of information,
materials, and energy. The inputs are allocated to plan, though it is possible
to eliminate parts of the planning required during operations by designing
system with predetermined input allocation structuring the system to operate
in a specified fashion and with more predictable results.
Operation of the system requires some sort of control, that is, a mechanism
for output or related characteristics, comparing he measurement with the
standard, and activating the unit to adjust inputs to correct the deficiency.
This is necessary to maintain the equilibrium of the system near the ideal
point. The fourth stage pertains to review and evaluation, that is, to ascertain
how well the system has performed. This is different from the control in the
sense that control refers to operating efficiency, while the concept of review
and evaluation is more comprehensive, and always relates the functioning of
the system to its objectives. The review and evaluation occur at periodicintervals during the life cycle of a system and lead to design changes in the
present system or recommendations for changes which may be operated in
future systems.
Human relations Approach of Management Thought
The classical approach which focused attention on the mechanical an
physiological variables of organizational functioning was tested on the field to
increase the efficiency of organizations.
Surprisingly, positive aspects of these variables could not evoke positive
response in work behavior, and researchers tried to investigate the reasons
for human behavior at the work. They discovered that the real cause of
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human behavior was something more than physiological variables. Such
findings generated a new phenomenon about the human behavior and
focused attention of the human beings in the organizations. As such, this new
approach his been called 'human approach of management'.
Even in the writings of classical approach, notably, Taylor, Fayol, Henry Gantt,
Follet, Urwick, and others, the human element in the organisation was
recognized, but they emphasized it very little. The human relations approach
was born out of reaction to classical approach and during the last four
decades, a lot of literature on human relations had been developed. The
essence of the human relations contributions is contained in two points; (I)
organizational situation should be viewed in social terms as well as in
economic and technical terms, and (ii) the social process of group behavior
can be understood in terms of clinical method analogous to the doctor's
diagnosis of the human organism. Among human relations approach, thereare many contributions and many more researches are being carried on.
These include contributions form famous 'Hawthorne Experiments', many
sociologists-Bakke , Selznic, Homans , dubin , and Dalton; many
psychologists-McGregor, Likert, Argyris, March and Simon, Leavitt, Blake,
Sayles, Brown, etc. There will be relatively lengthy discussion of the results
and implications of the Hawthorne studies because of their historical
importance to the behavioral approach to the analysis of management
problems. In fact, for the first time, an intensive and systematic analysis of
human factor in organizations was made in the form of Hawthorne
experiments.
Contribution of Henry Fayol of Classical Approach
Perhaps, the real father of modern management theory is Henry Fayol. He
was a French mining engineer, who after obtaining engineering degree joined
a French coal firm as technician in 1880.
Fayol observed the organizational functioning from manager's point of view.
He found that all activities of the organisation could be divided into six
groups:
Technical (relating to production)
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Commercial (buying, selling, and exchange)
Financial (search of capital and its optimum use)
5. Accounting (including statistics)
6. Managerial (planning, organisation, command, co-ordination and control).
He points out that these activities exist in every organisation. He further
observes that first five activities. Fayol has divided his approach of studying
management in three parts: (I) managerial qualities and training. (ii) General
principles of management, and (iii) elements of management.
Harrington Emerson Contribution of Classical Approach
Emerson made scientific management more acceptable to people. He wrote a
book in 1912 on 'Efficiency', in which he has given 12 principles of increasing
efficiency.
These are (1) ideals (2) common sense (3) competent counsel (4) discipline
(5) fair deal (6) reliable, immediate, adequate, and permanent records (7)
dispatching (8) standards and schedules (9) standardized conditions (10)
standardized operations (11) standard practice instructions (12) reward for
efficiency.
Frank Gilbert Contribution of Classical Approach
Frank Gilbreath and his wife Lilian Gilbreath were contemporary of Taylor, but
they worked independently on time and motion study.
Besides time and motion study, they ave also developed a comprehensive
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body of planning an control techniques for construction industry. In 1908,
Frank Gilbreath published a book 'Field System' and Mrs. Lilian wrote a
research paper on 'The Psychology of Management'.
Taylor's Principles of Classical Approach
Although Taylor's principles were intended for broad application, his emphasis
was not on general management; but on management at the shop level.
He was more concerned about the efficiency of workers and mangers at
actual work and left the principles of management which could be followed in
other functional areas. These principles, more specifically time, motion, andfatigue study, became the basis for some time, but the much talked mental
revolution could not take place. The adoption of scientific management was
resisted by manages on that plea that it involved extra costs on their part in
various experiments, and by workers also on the plea that by this method
they could put in more work, however, the profit did not go to them. Both the
parties took a short-term view.
Classical Approach of Management Thought Classical Approach of
Management Thought
The approach has focused on on input-output mediators and given less
attention to constraining an facilitating factors in the external environment.
The writers have dealt with human motivation only in a very rudimentary
manner.
In the classical approach, wherein organisation is treated as a machine, the
efficiency of the organisation can be increased by making each individual
efficient in it. The emphasis is more on specialisation of performance and co-
ordination of various activities. In fact among the classical writers, few
emphasized on individual efficiency and others emphasized on group
efficiency. As such, it was given tow streams-scientific management and
administrative management. However, it should be made clear, here, that
classical label does not mean that views are static and time-bound many of
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their views still hold good today.
Taylor and other contributories, notably Frank Gilbreath an Lilian Gilbreath,
Henry Gantt, Emerson, investigated the effective use of human beings in
industrial organizations. In industrial organizations. They studied primarily the
use of human beings as adjuncts to machines in performance of routine task.
The area of human behavior in organizations investigated by them was quite
narrow, and the theories of human behavior in this approach encompass
primarily physiological variables. This is because of the historical accidents of
their positions and training in the industry and the type of problems they
faced there.
Pre-Scientific Management
Though Frederic W. Taylor is known as the founder of scientific management,
many persons before him made considerable contribution to the
development of management thought.
Prominent among them were James Watt and Boulton, Owen, Babbage and
Poor. Their main contributions are as follows:
(i)James Watt and Boulton. These two men took charge of the management of
the Soho Engineering Foundry when it was established in 1796 in Great
Britain. Watt was in charge of organisation and administration, and Boulton
was responsible for the sales or commercial activities. They developed many
management techniques. Prominent among them were market research an
forecasting in marketing ares; planned machine layout in terms of work- flow
requirements, production planning, production-process standards, and
standardization of product component in production area; calculation of cost
and profit for each machine and department in costing area; training anddevelopment of workers and executive, work study and payment by results,
welfare programme and constitution of a committee to administer it in
personnel area.
(ii) Robert Owen. He carried out most of his experiments in the area of
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personnel management when he was engaged in managing the textile mills
in Scotland between 1800 and 1828. Owen improved working conditions in
the factory, provided meals to employees in the factory, provided housing
and marketing store facilities to the employees. His main philosophy was that
good personnel management paid dividends to the employer and it was in
essential part of every manager.
(iii) Charles Babbage. Babbage was a professor of Mathematics at Cambridge
University (1818-39) and took keen interest in the problems of manufacturing
operations. He is best remembered for his book 'On the Economy of
Machinery and Manufactures' published in
1832. He was specially interested in the economics of division of labour and
development of scientific principles to govern a manager's use of facilities,
materials and labour to get the best possible results.
(IV) Henry Varnum Poor. He was editor of 'American Railroad Journal' in the
latter half of the nineteenth century. While on this position he watched and
analyzed the progress of American railroad system. He visualized the scope
for effective management to bring the railroad in the light direction. He gave
many recommendations many of which might be termed as most modern. He
felt the need for a managerial system with a clear organisation structure in
which people have clear responsibility and can be held accountable.
Early Contribution
The early contributions have come mainly from Roman catholic Church,
military organizations and camera lists.
The contributions of Roman Catholic Church were the development of the
hierarchy of authority with its territorial organization, the specialization of
activities along functional lines and the early use of staff device for efficiency.
The military organizations in the past have emphasized what is called today
as 'Unity of Doctrine' and the use of staff for line personnel. The camera lists
were a group of Austrian and German public administrators and intellectuals
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from sixteenth to eighteenth centuries. They emphasized systematic
administration as a source of strength for the State.
Classification of Management Thought
Management is old as civilization and it has been of some concern to
organized society thought civilized history. Various examples exist today to
remind us the result of the organized activities of the past.
However, the principles of such organized activities are either not available or
not applicable in present day social structure. In fact, no organized effort
towards developing management principles was carried on before the presentcentury and most of the earlier contributions towards increasing the
efficiency of organized groups were scattered. Another significant point in the
context of the development of thought is that the contributions have been
made by practicing managers as well as academicians. Thus the total
contribution is the result of practical experience as well as the organized
researches. If we analyze various thought from period point of view, the role
of organized researches successively increase in the development of
management principles. For the sake of analysis, the management thoughts
have been classified as:
Classical approach
Human relations approach and
Systems approach
1. Classical approach
Starting with the early beginnings of management we come across the
Scientific Management also known as Taylorism, named after his founder
and father Frederick Winslow Taylor.
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His theory was one of control and co-ordination. For an increase in
production, managers should take control of the whole process. They should
observe their workers and analyze each step in terms of time spent and
energy expended and then uses the results to determine the best methods
for working processes. They should give workers the right tools and
equipment and a standardized method of doing the job. These persons do itlike they were asked to, not thinking about what they do and what for.
Management will do all the work which workers are not able to do. But acting
in behalf of this theory manager's supervised every step of the workers closer
and closer, so that they had no more autonomy at all. The workers got
unhappy about the situation and thought that they know more about their
work then all the managers and experts.
Even today this theory of management is common in many places.
Companies and managers use time and motion studies to increaseproductivity of their workforce. They hire the best qualified employees and
design incentive systems based on output they are bringing. ical approach.
2. Human relations approach
The human relations approach to management was originated in the 1930s
as a reaction against the mechanistic view of organizations and the
pessimistic view of human nature suggested by the classical approach. The
human relations approach argues that people are emotional rather than
economicrational beings; organizations are cooperative social systems rather
than mechanical ones; and organizations are composed of informal
structures, rules, and norms as well as formal practices and procedures. The
human relations approach represents a distinct break from the classical
approach. However, both share two important similarities. First, they see
organizations as closed and unchanged entities. Second and relatedly, they
believe that there is one best way of managing the organization, regardless
of the type, nature, or size of the organization, and that their way is the best
way.Important theoretical advancements in the human relations approachinclude the famous Hawthorne experiments conducted by Elton Mayo,
Chester Barnard's cooperative system, Abraham Maslow's hierarchy of needs,
Douglas McGregor's Theory XTheory Y, and Warren Bennis's the death of
bureaucracy. Despite these intellectual advancements, the human relations
school remained operationally weak until the 1950s and 1960s when the
advent of the job design movement offered operational guidelines to
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organizations
3. Systems approach
The systems approach to management is a concept which views a company
as an interconnected purposive system that consists of several business
sections. It is a management approach which enables the leadership to see
the company as a unified part or a major section of the larger outside
corporate environment. Even a small activity in a part has a substantial effect
on other sections in the company. Such a system may be biological, physical
or social; and may enable the management to efficiently determine the long-
term goals of the company. The systems approach states that for realizing
the operations of an entity, it is essential to see the entity as a complete
system.
This classification is based on the grouping of various thoughts which have
similarity in the approach of how managers get the things done. The
classification in not very rigid suggesting that the thoughts can be classified
in some other ways. Before we proceed to the study of management in an
organized way, let us have a look on the early contributions mostly in
scattered way.
Development of management thought
Although the systematic management has a recent origin, the practice of
management is as old as human society.
Human beings, being gregarious in nature, have been living in groups since
the very beginning. The history of human beings is full of evidence of
organizational activity that indicates a knowledge of many to the ideas later
expressed by the pioneers of scientific management. However, the study of
how managers achieve the results is predominantly a twentieth century
phenomenon.
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Managerial job in business
All social institutions, whether they are business or non business ones,
require the same process of management of achieving their objectives.
But there are some special considerations that put the business enterprises in
a class by itself from other social institutions. The criteria of efficiency,
productivity and accountability are not so exacting and demanding in the
case of other social institutions as in the case of business. Leaving aside
communist countries where totalitarian planning takes place, the very
survival of business depends upon the fulfillment of objectives in the face of
competition and many other odds.
The manager performs three types of work simultaneously-managing a
businest managing managers and managing workers and work. Almost every
decision or action a, manager takes affects all these facts. Managing a
business is the task pertaining to the economic performance of the enterprise
and calls for the supply of goods and services at acceptable prices. To be
effective, a manager must be creator rather than' a creature of the economy.
Secondly, managing mangers is necessary for making a productive
organisation out of human and material resources. It involves co-ordination of
efforts and functions of managerial personnel, setting goals for them and
directing their activities Finally, managing workers and work is concerned
with organizing and directing the employees and their work. It calls for the
evaluation of the worker both as a human being and as a resource.
Managers are supposed to confine themselves to managerial duties. But in
actual practice, all managers do a lot of non-managerial duties in addition to
their managerial duties. The lower an level of managers, the managerial
content of the job gradually shrinks and non-management duties in
predominate. Even the top job are not immune from non-managerial duties.
To take some examples, sales calls on important customers are usually made
by the sales manager, although such duties are not managerial in character.
The chief executive of a company is very often found to undertake public
relations activities by way of making public addresses, having press
conferences and going through other like non-managerial duties. A supervisor
at the bottom performs many non-managerial duties like making reports,
preparing invoices, operating equipment, and so on.
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Functions of management
There are four basic functions of management, viz., planning, organization,direction and control.
These functions are closely interlinked and interwoven in character. All
executives or mangers, regardless of their area and position, a are o
discharge these functions.
These functions are the identifying marks by which a manger can bedifferentiated form a non-manager. Of the four functions, however, the upper
or top executives are mostly preoccupied with the first two functions-planning
and organization, while the lower-ranking executives are largely busy with
direction and largely busy with direction and control. But the thinking
functions of planning and organisation cannot be separated in to water-tight
compartments from the doing functions of direction and control. Irrespective
of their levels and spheres of activity, executives are required to perform all
the four functions in varying degrees.
1. Planning Is the rational and orderly thinking about ways and means for the
realization of certain goals. It involves thought and decision pertaining to a
future course of action. It anticipates and precedes action rather than making
a reflective thinking abut the past events. Absence of planning before doing
implies rashness, imprudence or shortsightedness in the performance of
work. Before undertaking any work, is to be done, and who is to do the work.
In considering these points, managers have to clarify objectives or goals and
to evolve policies and procedures for guiding those who do the work; they
have to chart the proposed lines of action with proper time schedules for the
execution of work. For providing a factual basis for future action, managers
have to map out a programme indicating the best course of action to be
followed, fixing the targets and standards of work performance there in and
evolving the strategies and remedies for possible hindrances to the smooth
flow of work. In other words, programmes provide a complete road map for
the guidance of managers to get things done through operators.
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In a sense, planning and decisions making are synonymous. Like decision
making, planning is made for providing guide to action in problem areas.
There is much common ground between the steps planning and of decision
making-diagnosis of the problem, development of alternative, evaluation of
alternative and selection of the best course of action. The decision phase of
planning is so important that many writers have treated planning as asynonym of decision making.
2. Organization Provides the mechanism or apparatus for purposive,
integrated and co-operative action by two or more persons with a view to
implementing any plan.
With a few persons, organization calls for the allocation of tasks to individuals
and the requires the efforts of many people, several departments come into
existence under the charge of different managers who are tied together
neatly by authority relationships for integrated action. That is, organization
involves the division and subdivision of activities, into departments, sections
and jobs as well as the integration of activities and positions into a co-
ordinate whole. The division of activities entails three thing, viz.,
determination of total activities, grouping of such activities and assignment of
jobs to both managers and operators. The integration of activities is effected
through positions which are bound together in a consistent pattern by the
fabric of inter-relationships among enterprise functions, jobs and personnel.
Delegation of authority is the cement that holds the positions together as oneentity.
The concept of organization has a number of implications. First, it has two
aspects: technical or mechanistic aspect pertaining to activities and social or
humanistic aspect pertaining to people. For the personal contentment and
social satisfaction of people, organization calls for the matching of jobs with
individuals and vice-versa. Secondly, as a mechanism for action, organization
is required to be changed when either the volume and nature of action or the
personnel change. Although some amount of reorganization takes place withevery personnel change, upper-level personnel change is more significant in
effect. Thirdly, delegation of authority takes place not only between
management members, but it extends to operators as well. In addition to
managerial jobs, the operating jobs are also put to the same process of
delegation.
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3. Direction is largely a function of human relations and motivation. This
function is, of course, denoted variously by different writers, such as
command, leadership, motivation, execution or actuating. The organizational
mechanism is to be energized, activated or put into action for carrying out
the management plan. This is what is actually done through directing
function to set the organization in motion. But human beings are notinanimate cogs in a machine; they have emotions, aspirations, sentiments,
capacity to participate or to withhold such participation. Like a machine, they
could not be ordered to do a predetermined work. With the purpose of
inducing the members of the organization to put forth their best endeavor,
managers direct the employees through the medium of leadership, guidance,
supervision, communication and counseling. Direction involves personal and
social-group relationships. The working terms are inspired and motivated to
do the work willingly and whole-heartedly because of providing desirable job
satisfaction and wanted team spirit.
4. Control ensures qualitative and quantitative performance of work in the
organization for completing plans and achieving objectives. Under the control
function, measuring standards or yardsticks are established and
communicated to managers so that they can regulate employee performance
and can work by self-control.
Moreover, control brings to light any management lapses that hinder
satisfactory work progress, and thus it provides the managers with anopportunity to take remedial action before it is too late. The control function
furnishes new data and facts that enable the managers to verify the accuracy
of their decisions with regard to planning, organizing and directing functions.
Controlling as a process involves measurement, evaluation and correction of
performance in the light of standards established through planning. That
planning and controlling are inter-dependent can be explained form the
nature of either functions. As control forces events to conform to plans, three
can exist no control without planning. Likewise, plans are not capable of self-
achieving without the exercise of controlling function. In the past, control was
work-focused rather than work-focused.
Fayol's principles of management
Fayol evolved fourteen principles of management which may be briefly stated
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as follows
Division of work. The object of division of work is to derive the benefits
from the principle of specialization which can be applied not only in technical
work, put in all other work as well. Unlike Taylor, Fayol pointed out that
division of work has its obvious limits.
Authority and responsibility. Authority and responsibility are correlated
terms; responsibility is the essential counterpart of authority and they go
hand. An ideal manger is expected to have official authority arising from
official positions as well as his inherent personal authority. Such person
authority is compounded of intelligence experience, moral worth, ability to
lead, past services, etc.
Discipline. Discipline is in essence obedience, application, energy,
behavior, and outward marks of respect shown buy employees. Discipline is
what the leaders make it through the observance of agreements, because
agreements spell out to formalities of discipline. Three requisites of discipline
are (a) good supervisors at all levels, (b) clear and fair agreements, and (c)
judicious application of penalties of sanctions.
Unity of direction. This principle requires than employee should receive
orders form one superior only. Dual command wreaks havoc in all concerns,
since authority is undermined, discipline in jeopardy, order disturbed and
stability threatened.
Unity of direction. Fayol discussed this principle of unity of direction in a
different way from that of unity of command. While unity of direction is
concerned with the functioning of the body corporate, unity of command is
only concerned with the functioning of personnel at all levels. For the
accomplishment of a group of activities having the same objective, there
should be one head and one plan. A body with two heads is in the social as
in the animal sphere a monster, and has difficulty in surviving.
Subordination of individual interest to general interest. Common interest
must prevail over individual interest, but some factors like ambition, laziness,
weakness and others tend to reduce the importance of general interest.
Remuneration of personnel. As the prices of services rendered
remunerations should be fair and satisfactory to both the parties.
Centralization. Everything which goes to increase the importance of the
subordinate's role is decentralization, everything which goes to reduce it is
centralization. The question of centralization or decentralization holds the
key to the utilization of all faculties of the personnel.
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Scalar chain. It is the chain of superiors or the line of authority form the
highest executive to the lowest one for the purpose of communication. The
need for swift action should be reconciled with due regard to the line of
authority by using gang plank or direct contact.
Order. This is a principle of organization relating to things and personsmaterial order requires a place for everything and everything in its place
and social demands the engagement of the right man in the right place.
Equity. Equity is greater than justice, since it results from the combination
of kindliness and justice. The application of equity requires much good
sense, experience and good nature with a view to securing devotion and
loyalty form employees.
Stability of tenure of personnel. Stability of tenure is essential to get an
employee accustomed to doing a new work and to enable him in performing
it well. Instability of tenure is an evidence of bad running of affairs.
Initiative. The freedom to purpose a plan and to execute it is what is known
as initiative that increases zeal and energy on the part of human beings.
Since initiative is one of the keenest satisfactions for an intelligent man to
experience. Fayol advised managers to secure as much initiative from
employees as possible.
Esprit de corps. This is an extension of the principle of unity of command
whereby team work is ensured. To maintain proper esprit de corps in the
organization, personality politics and abuse of written and communications
are to to be guarded against.
REFERENCES :
http://www.bookrags.com
http://www.wikipedia.org
http://www.freemba.in
http://www.bookrags.com/http://www.wikipedia.org/http://www.freemba.in/http://www.wikipedia.org/http://www.freemba.in/http://www.bookrags.com/