BBA Development Management Thought Study Material Notes

BBA Development Management Thought Study Material Notes: Evolution management thought elements and tools  scientific management early contributions  Taylor and scientific management  Principle of scientific management  administrative management followers scientific management  general principles management elements of management relevance of fayol principles  features of Bureaucracy Hawthorne experiments and human relations  :

MCom I Semester Contemporary Change Issue Study Material Notes

Development Management thought 

In the previous chapter, we have seen how knowledge of management principles and their applications help in effective management. These principles have been developed over period of time with a combination of experiences and experiments. These have through different schools of management thought, with each subsequent school claiming to make some improvement over the previous one. It is worthwhile to know the background of the evolution of management to avoid rediscovering previously known ideas and to appreciate the situations under which newly developed ideas have taken place.

Development Management Thought

Evolution of Management Thought

Management practice is as old as human civilisation when people started living together in groups. For, every human group requires management and the history of human beings is full of organisational activities. However, the study of how managers achieve results is predominantly a twentieth century phenomenon. In the earlier years, management could not get the attention of researchers because the field of business in which the management concepts were applied was held low, unworthy of study: indifferent approach of other social scientists like economists, sociologists, psychologists, etc., towards management and business organisations; treatment of management as an art not as a science; and the commonly-held belief that managers are born and not made. These factors created the situation where the need for a systematic study of management was not felt. This situation continued till the beginning of the twentieth century.

The situation started changing with the beginning of the 20th century; specially the World War I created the situation where people started thinking of solution to the problem of how limited resources could be applied in better way. The World War II added further problem to this end. Growing competition and complexity of managing large business organisations further provided impetus to developing systematic management concepts and principles. In recent years, there has been worldwide rivalry for markets, power, and progress. The increasingly severe competition has come from such factors as (į technological innovations and their dissemination in business, (i) growing technological obsolescence, (iii) increase in capital investment, (iv) freedom at national and international markets, and (V) increasing buyers’ sovereignty in the markets. Besides the growing competition in business, the complexity of managing business also has increased due to (i increasing size of business organisations, (tt) high degree of division of labour and specialisation, (iit) increased government regulations and controls to make business more socially-oriented, (iv) organised union activities to put pressures on management, and (U) pressure of various conflicting interest groups to meet their demands from the organisations. Both these factorsgrowing competition and complexity in managing business-have demanded the efficiency in management process which can come not merely by trial-and-error methods but by developing and applying sound management concepts and principles.

Development Management Thought

These factors emerged gradually which attracted the attention of a wide variety of intellectuals economists, sociologists, psychologists, anthropologists, mathematicians, and management practitioners–to study the organisations and processes through which these organisations could be made more effective. Each of these groups of intellectuals viewed the organisations and the processes therein in a particular way and made recommendations accordingly

This led to the emergence of a variety of orientations and approaches in management; some making clear demarcation from others; some overlapping others. Similarly, a particular approach did not really start with the end of the previous one so far as time period is concerned; there was presented are approximate.

Evolution of management thought

1. Early contributions	Upto 19th century
2. Scientific management	1900-1930
3. Administrative/operational management	1916-1940
4. Human relations approach	1930-1950
5. Social systems approach	1940-1950
6. Decision theory approach	1945-1965
7. Management science approach	1950-1960
8. Human behaviour approach	1950-1970
9. Systems approach	1960s onwards

Development Management Thought

Another classification of management thought and approaches is in the form of classical, neoclassical, and modern. Classical approach includes scientific management and administrative/operational management. Neoclassical approach includes human relations approach and some relevant part of social systems approach, decision theory approach, management science approach, and human behaviour approach. Modern approach includ systems approach, contingency approach, and some relevant portion of the above approaches not included in neoclassical approach. However, this classification is time-specific because what is modern in today’s context, may not remain the same in future.

Development Management Thought

EARLY CONTRIBUTIONS

Before the systematic study of management which started close to 19th century. contributions in the field came from a variety of sources. For example, the concept of organisation and administration existed in Egypt in 1300 B.C. Confucius’s parables included suggestions for proper public administration and admonitions to choose honest, unselfish. and capable public officers long before Chirst. Kautilya has offered sound principles of state administration in 320 B.C. Roman catholic church introduced the concept of staff personnel in church administration which was further carried on by military organisations. The cameralists, a group of German and Austrian public administrators and intellectuals, emphasised systematic administration as a source of strengths during 16th to 18th centuries. These contributions provided some insights about how resources could be utilised more effectively. However, these contributions were outside the field of business and other economic organisations.

In the field of business organisations, some stray contributions have come from Robert Owen, James Watt, Charles Babbage, and Henry Town. While Owen emphasised personnel aspects in management and advocated a number of benefits to employees, others ping concepts relating to effective utilisation of resources at the concentrated on developing concepts relating to effective utilisa shop-floor level. Their contributions came bit by bit and in har failed to stimulate to study management as a distinct discipline. However, their ideas created an awareness about managerial problems. By the end of 19th century, a stage was set for taking systematic study of management and the beginning was made by Taylor in the early part of 20th century which took the shape of scientific management.

Development Management Thought

TAYLOR AND SCIENTIFIC MANAGEMENT

The Concept of scientific management was introduced by Frederick Winslow Taylor in USA In the Beginning of 20th century. This concept was further carried on by Frank and Lillian Gilbreth, Henry Gantt, George Berth. Edward Felen, etc. Scientific management was concerned essentially with improving the operational efficiency at the shop-floor level. Taylor has defined scientific management as follows:

Since Taylor has put the emphasis on solving managerial problems in a scientific way, often, he is called as ‘father of scientific management and his contributions as the principles of scientific management. Though his contributions have become traditional in presentday context, still the label scientific management is used for his contributions. It does not mean that present-day management thoughts and practices are not scientific. In fact, management as a science has been taken much later than the contributions of Taylor.

Taylor joined Midvale Steel Company in U.S.A. as a worker and later on became supervisor. During this period, he continued his studies and eventually completed his M.E. (Master of Engineering). Subsequently, he joined Bethlehem Steel Company. At both these places, he carried experiments about how to increase the efficiency of people. Even after

tinued to develop scientific management. On the basis of his experiments, he published many papers and books and all his contributions were compiled in his book ‘Scientific Managemenť. Taylor’s contributions can be described in two parts: elements and tools of scientific management and principles of scientific management.

Development Management Thought

Elements and Tools of Scientific Management

Taylor conducted various experiments at his work-places to find out how human beings could be made more efficient by standardising the work and better method of doing the work. These experiments have provided the following features of scientific management:

1 Separation of Planning and Doing. Taylor emphasised the separation of planning aspect from actual doing of the work. Before Taylor’s scientific management, a worker used to plan about how he had to work and what instruments were necessary for that. The worker was put under the supervision of a supervisor commonly known as gang boss. Thus, supervisor’s job was merely to see how the workers were performing. This was creating a lot of problems. and Taylor emphasised that planning should be left to the supervisor and the worker should emphasise only operational work.

2. Functional Foremanship. Separation of planning from doing resulted in development of supervision system which could take planning work adequately besides keeping supervision on workers. For this purpose, Taylor evolved the concept of functional foremanship based on specialisation of functions. In this system, eight persons are involved to direct the activities of workers. Out of these, four persons are of workers. Out of these, four persons are concerned with planning: Hard clerk. (iii) time and cost clerk and (iv) disciplinarian. The (0 route clerk, (11) instruction card clerk, (ill) time and cost clerk Concerned with doing aspect of the work. These are: (i) speed remaining four persons are concerned with doing aspect of the winnentor Guil maintenance foreman, and (W) gang boss. All of them give directions to workers on different aspects of work. This is against unity of command principle as shown in Figure 2.1.

3. Job Analysis. Job analysis is undertaken to find out the one best way of doing the things. The best way of doing a job is one which requires the least movements, consequently less time and cost. The best way of doing the things can be determined by taking up timemotion-fatigue studies. (1) Time study involves the determination of time a movement takes to complete. The movement which takes minimum time is the best one. This helps in fixing the fair work for a period. (11) Motion study involves the study of movements in parts which are involved in doing a job and thereby eliminating the wasteful movements and performing only necessary movements. Elimination of unnecessary movements in doing work reduces time taken in performing a work and also the fatigue of workers. (iii) Fatigue study shows the amount and frequency of rest required in completing the work. After a certain period of igue and cannot work with full capacity. Therefore, they require rest in between. When the rest is allowed, they start working with full capacity. Thus, job analysis, as given by Taylor, suggests the fair amount of a day’s work requiring certain movements and rest periods to complete it.

4. Standardisation. As far as possible, standardisation should be maintained in respect of instruments and tools, period of work, amount of work, working conditions, cost of production, etc. These things should be fixed in advance on the basis of job analysis and various elements of costs that go in performing a work.

5. Scientific Selection and Training of Workers. Taylor has suggested that workers should be selected on scientific basis taking into account their education, work experience, aptitude, physical strength, etc. A worker should be given work for which he is physically and technically most suitable. Apart from selection, proper emphasis should be given on the training of workers which makes them more efficient and effective.

6. Financial Incentives. Financial incentives can motivate workers to put in their maximum Provisions exist to earn higher wages by putting in extra effort, workers will be earn more. Taylor himself applied the concept of differential piece rate system motivated to earn more. Taylor himself anni which was highly m which was highly motivating. According to this scheme, a worker who completes the normal at higher rate per piece and one who does not complete gets at lower rate.

7. Economy. While applying scientific management, not only scientific and management, not only scientific and technical aspects should be considered but adequate consideration should be given to economy should be given to economy and profit. For this purpose, techniques of cost estimates and control should be adopted. and profit can be achieved by making the resources more productive as well as the wastages. Taylor has clarified by giving examples of how resources are wasted by following scientific management.

Development Management Thought

8.Mental Revolution. Scientific management depends on the mutual co-operation between management and workers. For this co-operation, there should be mental change in bon parties from conflict to co-operation. Taylor feels that this is the most important feature of scientific management because in its absence, no principle of scientific management can be applied.

Development Management Thought

Principles of Scientific Management

Taylor has given certain basic principles of scientific management. The fundamental principles that Taylor saw underlying the scientific management have been given below:

1 Replacing Rule of Thumb with Science. Taylor has emphasised that in scientific management, organised knowledge should be applied which will replace rule of thumb. While the use of scientific method denotes precision in determining any aspect of work, rule of thumb emphasises estimation. Since exactness of various aspects of work like day’s fair work, standardisation in work, differential piece rate for payment, etc., is the basic core of scientific management, it is essential that all these are measured precisely and should not be based on mere estimates. This approach can be adopted in all aspects of managing.

2. Harmony in Group Action. Taylor has emphasised that attempts should be made to obtain harmony in group action rather than discord. Group harmony suggests that there should be mutual give and take situation and proper understanding so that group as a whole contributes to the maximum.

3. Cooperation. Scientific management involves achieving cooperation rather than chaotic individualism. Scientific management is based on mutual confidence, cooperation, and goodwill. Cooperation between management and workers can be developed through mutual understanding and a change in thinking. Taylor has suggested “substitution of war for operation for contentment and strife, replacement of peace, hearty and brotherly cooperation for contentment and strife mutual confidence, of becoming friends instead of enemies. suspicious watchfulness with mutual confidence, of becoming fr It is along this line, I say, that scientific management must be developed Traffic management involves continuous increase in production

Development Management Thought

4. Maximum Output. Scientific management involves continuous writy instead of restricted production either by management or by workers curtailment of production. His concern was with be in his opinion. “there is hardly any worse crime to my mind than the large size of the cake. In his opinion. “there is hardly a that of deliberately restricting our literately restricting output.” He decried quarrel over production but welcomed quarrel over distribution, provided the product to be distributed had outgrown the size. Therefore, he advised the management and workers to “turn their attention towards increasing the size of the surplus until the size of the surplus becomes so large that it is necessary to quarrel over how it shall be divided.”4

5. Development of Workers. In scientific management, all workers should be developed to the fullest extent possible for their own and for the company’s highest prosperity. Development of workers requires their scientific selection and providing them training at the workplace. Training should be provided to workers to keep them fully fit according to the requirement of new methods of working which may be different from the non-scientific methods.

Development Management Thought

Followers of Scientific Management

Other persons who worked to develop scientific management were Carl George Berth, Henry Gantt, Frank and Lillian Gilbreth, and Edward Felene to mention a few important. Berth worked with Taylor and later developed many mathematical techniques and formulae that made it possible to put Taylor’s ideas into practice. Gantt developed graphic methods of depicting plans and making possible better managerial control. He emphasised the importance of time as well as cost in planning and controlling work. This eventually led to the development of famous Gantt Chart which is in wide use today and was the forerunner of such modern technique as Programme Evaluation and Review Technique (PERT). Frank and Lillian Gibreth, a team of husband and wife, also tried to find out one best way of doing under the given set of realities. They also tried to look at the problems of workers from social and psychological point of view. Felene invited Gilbreth to apply scientific management to manage his departmental store. The major areas of concern were employee training and evaluation and human element in business. Later, he created Twentieth Century Fund, a famous research organisation still in existence. I

Development Management Thought

Critical Analysis of Scientific Management

Scientific management created awareness about increasing operational efficiency at the shop-floor level by adopting systematic methods as against the rule of thumb which was prevalent at that time. However, from the point of view of the development of theoretical framework, the principles of scientific management were more concerned with problems at the operating levels and did not emphasise management of an organisation from the manager’s point of view. Therefore, it was more relevant from engineering point of view rather than management point of view. In fact, one author has later suggested that Tavlor can be regarded as the ‘father of industrial engineering’ rather than the ‘father of scientific management’. Similarly, persons advocating scientific manageinent have emphasised physiological variables affecting human behaviour at workplace, both in terms of work effciency and methods of motivating the workers. As such, the scientific management is more relevant to mechanisation and automation-technical aspect of efficiency-than the broader aspects of management of an organisation.

A part from the theoretical considerations, Taylor’s scientific management was by trade unions, industrialists, and general public. The opposition was so grave had to defend his scientific management before a special US Congressional le opposition was so grave that Taylor 1912. The introduction of scientific management led to the agitation by trade pre a special US Congressional Committee in different production units. The major reasons for the opposition of scientific mala of scientific management were as follows:

Development Management Thought

1 There were many of the followers of Taylor who took aggressive mechanical view of production and sidelined human aspect at the workplace. This created aggressive attitudes among workers. used to be performed under close and strict supervision based on authoritarian approach. Workers were not allowed to raise their voice even for genue grievances.

2. There was lack of scientific standardisation of work and whatever standards used to be set by the management, the workers had to follow strictly. Such standards often used to raise production norm without taking into consideration the factors affecting such a norm.

3. The most crucial element which was under contention was the differential piece rate system. The workers, even the efficient ones, and their unions, opposed this system on the plea that it was a new method of exploiting workers by the industrialists.

It may be mentioned that trade unions were quite popular at that time.

Development Management Thought

FAYOL’S ADMINISTRATIVE MANAGEMENT

Perhaps the real father of modern operational management theory is the French industrialist Henry Fayol. His contributions are generally termed as operational management or administrative management. Fayol’s contributions were first published in book form titled ‘Administration Industrielle at Generale in French language, in 1916. However, the book was not made available outside France and was not translated until 1929. Its English version was published in 1949 in the United States of America. Therefore, in the early period,

contributions could not make much impact on the development of management thought. However, after the publication of his book in English, he got prominence in the field of management very quickly.

Fayol looked at the problems of managing an organisation from top management point of view. He has used the term ‘administration’ instead of ‘management’ emphasising that there is unity of science of administration. For him, administration was a common activity and administrative doctrine was universally applicable. From administrative point of view. he placed commerce, industry, religion, philanthropy, and the State on equal footing. His administrative science can be applied equally well to public and private affairs. Therefore phenomenon. However, he has emphasised that principles of management are flexible and not absolute and are usable regardless of changing and special conditions.

Fayol found that activities of an industrial organisation could be divided into six groups:

1 Technical (relating to production);

2. Commercial (buying, selling, and exchange);

3. Financial (search for capital and its optimum use);

4. Security (protection of property and person);

5.Accounting (including statistics); and

6. Managerial (planning, organization, command, coordination, and control).

Development Management Thought

Pointing out that these activities exist in business of every size, Fayol observed that the first five were well known, consequently he devoted most of his book to analyse the sixth one, that is, managerial activity. Fayol has divided his approach of studying management into three parts: (1) managerial qualities and training, (tt) general principles of management, and (iii) elements of management.

Managerial Qualities and Training

Fayol was the first person to identify the qualities required in a manager. According to him, there are six types of qualities that a manager requires. These are as follows:

1 Physical (health, vigour, and address);

2. Mental (ability to understand and learn, judgement, mental vigour, and capability);

3. Moral (energy, firmness, initiative, loyalty, tact, and dignity);

4. Educational (general acquaintance with matters not belonging exclusively to the function performed);

5. Technical (peculiar to the function being performed); and 6. Experience (arising from the work).

Development Management Thought

Fayol has observed that the most important ability for a worker is technical; the relative importance of managerial ability increases as one goes up the scalar chain, with insight becoming the most important ability for top level executives. On the basis of this conclusion, Fayol recognised a widespread need for principles of management and for management teaching. He held that managerial ability should be acquired first in school and later in the workshop. In order to acquire managerial knowledge, he developed principles of management to be taught in academic institutions.

Development Management Thought

General Principles of Management

Fayol has given fourteen principles of management. He has made distinction between management principles and management elements. While management principle is a fundamental truth and establishes cause-effect relationship, management element denotes the function performed by a manager. While giving the management principles, Fayol has emphasised two things: (9 The list of management principles is not exhaustive but suggestive and has discussed only those principles which he followed on most occasions. (c) Principles of management are not rigid but flexible. According to him,”there is nothing rigid or absolute in management affairs; it is all a question of proportion. Therefore, principles are flexible and capable of being adopted to every need. It is a matter of knowing how to make use of them which is a difficult art requiring intelligence, experience, and proportion 1.5 Various principles of management are as follows:

1 Division of Work. Fayol has advocated division of work to take the advantage of specialisation. According to him, “specialisation belongs to natural order. The workers always work on the same part, the managers concerned always with the same matters, acquire an ability, sureness, and accuracy which increase their output. Each change of work brings in it training and adaptation which reduces output … yet division of work has its limits which experience and a sense of proportion teach us may not be exceeded.” This division of work can be applied at all levels of the organisation.

2. Authority and Responsibility. The authority and responsibility are latter the corollary of the former and arising from it. Fayol finds authority as a responsibility are related, with the of official and personal factors. Official authority is derived from the manageit. Fayol finds authority as a continuation and personal authority is derived from personal qualities such as intelligence, ca moral worth, past services, etc. Responsibility arises out of assignment to discharge the responsibility properly, there should be parity of authority and responsibility.

3. Discipline. All the personnel serving in an organisation should be disciplined. Discipline is obedience, application, energy, behaviour, and outward mark of respect shown by employees. Discipline may be of two types: self-imposed discipline and command discipc. Self-imposed discipline springs from within the individual and is in the nature spontaneous response to a skilful leader. Command discipline stems from a recognised authority and utilises deterrents to secure compliance with a desired action, which is expressed by established customs, rules, and regulations. The ultimate strength of command discipline lies in its certainty of application. Such a discipline can be obtained by sanctions in the forms of remuneration, warnings, suspension, demotion, dismissal, etc. However, while applying such sanctions, people and attendant circumstances must be taken into account. This can be learned by experience and tact of the managers.

4. Unity of Command. Unity of command means that a person should get orders and instructions from only one superior. The more completely an individual has a reporting relationship to a single superior, the less is the problem of conflict in instructions and the greater is the feeling of personal responsibility for results. This is contrary to Taylor’s functional foremanship. On this conflicting view, Fayol suggested that, “I do not think that a shop can be well run in flagrant violation of this (unity of command). Nevertheless, Taylor successfully managed large-scale concerns. I imagine that, in practice, Taylor was also able to reconcile functionalism with the principle of unity of command but this is the supposition whose accuracy I am not in a position to verify.” Fayol has considered unity of command as an important aspect in managing an organisation. He says that “should it (unit of command) be violated, authority is undermined, discipline is in jeopardy, order disturbed, and stability threatened. This rule seems fundamental to me and so I have put it to the rank of a principle.”

Development Management Thought

5. Unity of Direction. According to this principle, each group of activities with the same obiective must have one head and one plan. Unity of direction is different from unity of command in the sense that the former is concerned with functioning of the organisation in respect of its grouping of activities or planning while the latter is concerned with personnel at all levels in the organisation in terms of reporting relationship. Unity of direction provides better coordination among various activities to be undertaken by an organisation

6. Subordination of Individual Interest to General Interest. Common interest is above the individual interest. Individual interest must be subordinate to general interest when there is conflict between the two. However, factors like ambition, laziness, weakness, etc. tend to reduce the importance of general interest. Therefore, superiors should set an example in fairness and goodness. The agreement between the employers and the employees should be fair and there should be constant vigilance and supervision,

7. Remuneration of Personnel. Remuneration of employees should be fair and provide maximum possible satisfaction to employees and employers. Fayol did not favour profit

8. Centralisation. Every is decentralisation; everything Pan for workers but advocated it for managers. He was also in favour of nonu benefits though these were possible only in the case of large-scale organisations. Wisation. Everything which goes to increase the importance of subordinate’s role ansation: everything which goes to reduce it is centralisation. Without using the erm centralisation of authority’, Fayol refers the extent to which authority is centralized decentralised. Centralisation and decentralisation are the question of proportion. In small firms, centralisation is the natural order, but in large firms, a series of intermediaries is required. Share of authority and initiative left to intermediaries depends on the personal character of the manager, his moral worth, the reliability of his subordinates, and also on the conditions or the business. Since both absolute and relative values of managers and employees are constantly changing, it is desirable that the degree of centralisation or decentralisation may itself vary constantly.

9. Scalar Chain. There should be a scalar chain of authority and of communication ranging from the highest to the lowest. It suggests that each communication going up or coming down must flow through each position in the line of authority. It can be short-circuited only in special circumstances when its rigid following would be detrimental to the organisation. For this purpose, Fayol has suggested ‘gang plank’ which is used to prevent the scalar chain from bogging down action. His scalar chain and gang plank can be presented as follows:

Development Management Thought

Scalar chain and gang plank In Figure 2.2, A is the top man having immediate subordinates B and L. In turn B and L are having immediate subordinates C and M. This continues to the level of G and Q. Ordinarily, the communication must flow from A to B to Cto D, and so on while coming from the top to down. Similarly, it must flow from G to Fto E, and so on while going up. It means if any communication is going from F to P, it will flow from F to A via E, D, C and B and coming down to P via L, M, N and O. Fayol suggests that this scalar chain system takes time and therefore, can be substituted by gang plank (dotted line) without weakening the chain command. In order to maintain authority, it is desirable that superiors of Fand Pauthorise them to deal directly provided each informs his superiors of any action taken. Fayol suggested that this system allows Fand P to deal in a few hours with some questions or other which via the scalar chain would pass through twenty transmissions, inconvenience people, involve masses of paper, lose weeks or months to get to a conclusion, less satisfactory than the one which could have been obtained via direct contact

10. Order. This is a principle relating to the arrangement of things and peop order, there should be a place for everything and everything should be in its Should be the right man in the right place. This kind of order demands precise knowledge of the human requirements and resources of the organisation and a constant balance between these requirements and resources. Normally, bigger the size of the organisation, more difficult this balance is.

11.Equity, Equity is the combination of justice and kindness. Equity in treatment and behaviour is liked by everyone and it brings loyalty in the organisation. The application of equity requires good sense, experience, and good nature for soliciting loyalty and devotion from subordinates.

12. Stability of Tenure. No employee should be removed within short time. There should be reasonable security of jobs. Stability of tenure is essential to get an employee accustomed to new work and succeeding in doing it well. Unnecessary turnover is both cause and effect of bad management.

13. Initiative. Within the limits of authority and discipline, managers should encourage their employees for taking initiative. Initiative is concerned with thinking out and execution of a plan. Initiative increases zeal and energy on the part of human beings.

14. Esprit de Corps. This is the principle of ‘union is strength’ and extension of unity of blishing team work. The manager should encourage esprit de corps among his employees. The erring employees should be set right by oral directions and not by demanding written explanations. Written explanations complicate the matters.

Development Management Thought

Elements of Management

Fayol holds that management should be viewed as a process consisting of five elements. He has regarded these elements as functions of management. These are planning, organisation, commanding, coordination, and controlling. He has regarded planning as the most important managerial function and failure to plan properly leads to hesitation, false steps, and untimely changes in directions which cause weakness in the organisation. Creation of organisation structure and commanding function is necessary to execute plans. Coordination is necessary to make sure that every-one is working together, and control looks whether everything is proceeding according to plan. Fayol holds the view that these functions are required at all levels of management and in all types of organisations.

The contributions of Fayol have made the real beginning of development of management as a separate field of study. He wrote as the practical man of business reflecting on his long managerial career and setting down the principles he had observed. His principles of management hold good even today, though pronounced long back. It was unfortunate that his contributions were not known to scholars in U.S.A., otherwise the development of management would have been much faster. In fact, many of the things were de management on the lines of Fayol much after his contributions.

Relevance of Fayol’s Principles

According to the classification of era of management development, Fayol’s principles are treated as classical while present-day management adopts systems and contingency approach. This approach suggests that while managing an organisation, it should be Faction should take into account the contingent factors both as a system and management action should take into account the However, this does not mean that Fayol’s principles within and outside an organisation. However, this does not meant and most of Fayol’s principles are being applied today. However, it can be said that not all principles can be applied in all organisations. In fact, Fayol also recognised that fact and suggested that management principles are not rigid but flexible and their use requires intelligence, experience, and proportion. Contributions of Taylor and Fayol: A Comparison At this stage, it may be worthwhile to compare the contributions of both Taylor and Fayol as both of them have made attempts to the development of management principles in somewhat more systematic way. Both were contemporary though from different countries. When we compare the contributions of Taylor and Fayol, we find that both are complementary to each other and have somewhat similarity. Even Fayol commented in 1925 that his contributions and those of Taylor are complementary to each other. There are some similarity as well as dissimilarity in the contributions of both.

Similarity. Both Taylor and Fayol have seen and analysed the problems of managing from practitioners’ point of view. Therefore, there must be some similarity between the two. The similarity exists on the following lines:

1 Both have attempted to overcome managerial problems in a systematic way.

2. Both have developed some principles which can be applied in solving managerial problems.

3. Both have emphasised that management actions can be effective if they are based on sound principles.

4. Both of them have emphasised that managerial qualities are acquirable and can be acquired through training. Therefore, organisations should make attempts to develop these.

5. Both have emphasised harmonious relationships between management and workers for the achievement of organisational objectives.

Dissimilarity. There is more dissimilarity between the approaches of Taylor and Fayol as compared to similarity. This is because of the fact that Taylor has concentrated on the shop-floor efficiency while Fayol has concentrated on higher managerial levels. The dissimilarity between the two is presented in Table .

Besides Fayol, contributions have come from other them being Max Weber, Sheldon, Mooney, Reiley, have come from other administrative theorists, notable among Tunctioning of church, government, military, and business on, Mooney, Reiley, Urwick, etc. Weber who analysed the bureaucratic structure is the most efficient form military, and business organisations believed that It is the most rational means of carrying out impensive given five features of bureaucracy: special of carrying out imperative control over human beings. He has

I bureaucracy: specialisation, hierarchy of authority, rules, anty, and trained personnel.8 Oliver Sheldon has added the concept of ethics and social responsibility to the scientific study of management. His to the scientific study of management. 9 His normative approach was develop for the first time to view management both a science and a philosophy. voney and Reiley, both executives at General Motors, U.S.A., emphasised basic principles of organisation. These principles are: coordination principle, scalar principle, functional principle, and staff phase of functionalism. 10 They have also emphasised that all organisations, irrespective of the field of their operation, have common features requiring these principles. They all require coordination and have a system of hierarchy, and clearly defined duties and responsibilities for each iob. Urwick, though not strictly an original thinker, has integrated the various views into a unified whole.” Apart from these people, contributions have come from Gullick. Sloan, Merriam, Stene and Dale.

BUREAUCRACY

The term ‘bureaucracy’ has been used widely with invidious connotations directed at government and business. Bureaucracy is an administrative system designed to accomplish large-scale administrative tasks by systematically coordinating the work of many individuals. Weber has observed three types of power in organisations: traditional, charismatic, and rational-legal or bureaucratic. 12 He has emphasised that bureaucratic type of power is the ideal one.

Features of Bureaucracy

Weber has given a number of features of bureaucracy. Accordingly, following features suggest the characteristics of bureaucratic organisations:

1 Administrative Class. Bureaucratic organisations generally have administrative class responsible for maintaining coordinative activities of the members. Main features of this class are as follows: (0) People are paid and are wholetime employees. (it) They receive salary and other perquisites normally based on their positions. (lll Their tenure in the organisation is determined by the rules and regulations of the organisation. (iv) They do not have any proprietary interest in the organisation. (u) They are selected for the purpose of employment based on their competence.

2. Hierarchy. The basic feature of bureaucratic organisation is that there is a hierarchy of sanisation. Hierarchy is a system of ranking various positions in positions in the organisation. Hierarchy is a system from top to bottom of the organisation. In bureaucratic organisation, descending scale from top to bottom of the organisation offices also follow the principle of hierarchy, that is, each lower office is subject to control communication and delegation of authority. It implies that communication ng down or going up must pass through each position. Sommiany, pass through each position. Similarly, a subordinate will get authority from his immediate superior. However, this hierarchy is not unitary but subPyramids of officials within the large organisation corresponding to functional divisions exist. Thus, there are offices with same amount of authority but with different kinds of functions operating in different areas of competence. For example, in Government organisations, we can observe separate offices looking after particular functions. This happens in business organisations too.

3. Division of Work. Work of the organisation is divided on the basis of specialisation to take the advantages of division of labour. Each office in the bureaucratic organisation has specific sphere of competence. This involves (a sphere of obligations to perform functions which have been marked off as part of a systematic division of labour; (ii) the provision of the incumbent with necessary authority to carry out these functions; and (iii) the necessary means of compulsion are clearly defined and their use is subject to definite conditions. Thus, division of labour tries to ensure that each office has a clearly-defined area of competence within the organisation and each official knows the areas in which he operates and the areas in which he must abstain from action so that he does not overstep the boundary between his role and those of others. Further, division of labour also tries to ensure that no work is left uncovered.

4.Official Rules. A basic and most emphasised feature of bureaucratic organisation is that administrative process is continuous and governed by official rules. Bureaucratic organisation is the antithesis of ad hoc, temporary, and unstable relations. A rational approach to organisation calls for a system of maintaining rules to ensure twin requirements of uniformity and coordination of efforts by individual members in the organisation. These rules are more or less stable and more or less exhaustive. When there is no rule on any aspect of organisational operation, the matter is referred upward for decision which subsequently becomes precedent for future decision on the similar matter. Rules provide the benefits of stability, continuity, and predictability and each official knows precisely the outcome of his behaviour in a particular matter.

5. Impersonal Relationships. A notable feature of bureaucracy is that relationships among individuals are governed through the system of official authority and rules. Official positions are free from personal involvement, emotions, and sentiments. Thus, decisions are governed by rational factors rather than personal factors. This impersonality concept is used in dealing with organisational relations as well as relations between the organisation and outsiders.

6. Official Record. Bureaucratic organisation is characterised by maintenance of proper official records. The decisions and activities of the organisation are formally recorded and preserved for future reference. This is made possible by extensive use of filing system in the organisation. An official record is almost regarded as encyclopaedia of various activities performed by the people in the organisation.

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Problems in Bureaucracy

Bureaucratic organisation has been considered once superior than ad hoc or temporary structure. It has been termed as rational and ideal leading to efficiency. The efficiency in hureaucratic organisation comes through rationality and predictability of behaviour because every one knows the consequence of his action before actuany uchce Ol his action before actually the action is undertaken. However, bureaucracy has been criticised because of its inefficiency and it has be as a symbol of inefficiency. There are many dysfunctional aspects of bureaucracy w referred to as bureaupathology. Looking into the needs of modern organisations, bureaucracy dysfunctional aspects of bureaucracy which is has many shortcomings and is, therefore, not suitable. The major problems of bureaucracy are because of the following factors: invalidity of bureaucratic assumptions, goal displacement, unintended consequences, inhuman and closers-system perspective.

Invalidity of Bureaucratic Assumptions. In fact, the sources of bureau pathology lie in the invalidity of various assumptions of ideal bureaucracy. Many authors have questioned the validity of bureaucracy. In most of the cases, either the conditions are not found in practice, or even if found, may not result into efficiency. Specially the following aspects of bureaucracy work against efficiency of the organisation, though they are supposed to contribute to efficiency:

1 Rules are normally provided for guidelines but often they become a source of inefficiency because of too much emphasis on rules, their misuse, and people’s apathy from rules.

2. Rigid organisational hierarchy works against efficiency. It over-emphasises superior-subordinate relationships unnecessarily which is detrimental to congenial organisational climate.

3. In dealing with people, total impersonal approach cannot be adopted because people have feelings, emotions, and sentiments which affect decision making. Thus, people cannot work totally according to rules and prescriptions.

Goal Displacement. Goal displacement occurs when resources are used for a purpose other than for which the organisation exists. The purpose that has replaced the original and values may be followed too excessively that this itself becomes end for the Over the period, people are provided incentives on such behaviour. For example, rules are means for achieving organisational goals but following of rules may become the obiective of the organisation and organisational objectives may become secondary. People may be judged on the basis of observance of rules and not results. For example, in government organisations, the performance may be judged on the basis of whether expenditure has been incurred on the lines of rules and regulations. Thus, expenditure becomes the criterion of performance measurement and not the results achieved through expenditure.

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Unintended Consequences. In bureaucratic organisation, there may be many consequences which have not been visualised but which emerge because of the system. Such unintended consequences may be of following nature:

1 There may be trained incapacity in the organisation. Trained incapacity relates to a phenomenon where a person is trained at the matter from a single point of view. Thus, he does not see beyond his training and tries to correlate the matter with total situation on the basis of his training. This happens because of excessive specialisation.

2. There is conflict between professionals and bureaucrats. The basic reason of conflict is the difference in orientation of professionals and bureaucrats. Professionals try to work according to their discipline for efficiency while bureaucrats try to emphasise rules and regulations.

3. Often there is conflict between organisation and individuals. There are many characteristics of bureaucratic organisation which work against human nature. For example, human beings work better when there is comparatively free environment but bureaucratic organisation puts more restrictions through rules and regulations. Thus, people try to avoid these rules and regulations.

Inhuman Organisation. Perhaps the most important criticism of bureaucracy has come from behavioural scientists who have emphasised on human behaviour in the organisation. According to them, bureaucratic organisation is inhuman and works like machine in which there is no importance of human beings. For example, Argyris holds the view that individual moves from immaturity to maturity and over the period he matures, while bureaucratic organisation is designed to suit immature personality, 15 A mature personality requires less control, innovation in behaviour, and flexibility in working. The design of bureaucratic organisation is against these features. Thus, bureaucracy works against the basic nature of human behaviour.

A pioneering criticism of bureaucracy comes from organisational psychologist, Warren Bennis. He sees the model as overly mechanical and no longer useful. 14 The flaws and dysfunctions of the bureaucratic organisation are extensive, but the main are as follows:

1 It is inhuman and denies man’s needs.

2. It is incompatible with the development of a mature personality.

3. It promotes conformity.

4. It does not consider informal organisation and interpersonal difficulties.

5. The hierarchy interferes with communication.

6. Innovation and new knowledge are stifled.

7. It is ineffective in a turbulent environment.

These criticisms are representative of the lack of human aspect of bureaucracy. The thrust of these criticisms is that bureaucratic organisation makes inadequate assumptions about the real nature of human beings and does not address itself to the interaction of people within the organisation.

Closed-system Perspective. Bureaucratic organisation has closed-system perspective. Though a social organisation cannot be a totally closed system but it may lean towards closed system in its working. A closed system is self-contained and self-maintaining. It is generally rigid and static. It ignores external conditions and makes no allowances for adapting to changes in the environment. In other words, it is viewed as operating within a vacuum. Specific characteristics of closed-system social organisation include predictability, rationality, optimisation, internal efficiency, and certainty. Since behaviour is assumed to be functional and all outcomes predictable, those activities that take place in the environment that is, changes in social, political, and economic, and other factors can be ignored.

Bureaucratic organisation can work well when environment is highly static and predictable. However, the nature of environment for large organisations of te nomic and heterogeneous. In dynamic environment, more interaction between Hon and environment is required. There is high need for information monitoring ocessing. Thus, an open-system perspective is more suitable for the management of while bureaucratic organisation has closed-system perspective.

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HAWTHORNE EXPERIMENTS AND HUMAN RELATIONS

Many of the findings of earlier writers, particularly of scientific management, which focused attention on the mechanical and physiological variables of organisational functioning were tested in the field to increase the efficiency of the organisations. Surprisingly, positive aspects of these variables could not evoke positive response in work behaviour, and researchers tried to investigate the reasons for human behaviour at work. They discovered that the real cause of human behaviour was something more than mere physiological variables. Such findings generated a new phenomenon about the human behaviour and focused attention on the human beings in the organisations. As such, this new approach has been called ‘human relations 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 recognised, but they emphasised it very little. The human relations approach was born out of a reaction to classical approach and during the last seven decades, a lot of literature on human relations has been developed. The essence of the human relations contributions is contained in two points: (1) organisational situation should be viewed in social terms as well as in economic and technical terms, and (ii) the social process of group behaviour can be understood in terms of clinical method analogous to the doctor’s diagnosis of the human organism. Among human relations approach, there are many contributions and many more researches are being carried on. For the first time, an intensive and systematic analysis of human factor in organisations was made in the form of Hawthorne experiments. 15 There will be relatively lengthy discussion of the results and implications of the Hawthorne studies because of their historical imporiance to the behavioural approach to the analysis of management problems.

The Hawthornie plant of the General Electric Company, Chicago, was manufacturing telephone system bell. It employed about 30,000 employees at the time of experiments. Although in respect of material benefits to the workers, this was the most progressive company with pension and sickness benefits and other recreational facilities, there was great deal of dissatisfaction among the workers and productivity was not up to the mark. After the utter failure of an investigation conducted by efficiency experts, in 1924, the company asked for the assistance from the National Academy of Sciences to investigate the problems of low productivity.

In order to investigate the real causes behind this phenomenon, a team was constituted led by Elton Mayo (psychologist) Whitehead and Roethlisberger (sociologists), and company representative, William Dickson. The researchers originally set out to study the relationship between productivity and physical working conditions. They conducted various researches in four phases wit.. each phase attempting to answer the question raised at the previous phase. The four phases were as follows:

1 Experiments to determine the effects of changes in illumination on productivity, illumination experiments, 1924-27;

2. Experiments to determine the effects of changes in hours and other working conditions on productivity, relay assembly test room experiments, 1927-28 A detailed account of these experiments is available in several books: Elton Mayo, The Human Problems of an Industrial Civilisation, New York: The Macmillan Company 1933. T.N. Whitehead, The Industrial Worker

3. Conducting plant-wide interviews to determine worker attitudes and sentiments, mass interviewing programme, 1928-30; and

4. Determination and analysis of social organisation at work, bank wiring observation room experiments, 1931-32.

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Illumination Experiments

Illumination experiments were undertaken to find out how varying levels of illumination (amount of light at the workplace, a physical factor) affected productivity. The hypothesis was that with higher illumination, productivity would increase. In the first series of experiments, a group of workers was chosen and placed in two separate groups. One group was exposed to varying intensities of illumination. Since this group was subjected to experimental changes, it was termed an experimental group. Another group, called as the control group, continued to work under constant intensities of illumination. The researchers found that as they increased the illumination in the experimental group, both groups increased production. When the intensity of illumination was decreased, the production continued to increase in both groups. The production in the experimental group decreased only when the illumination was decreased to the level of moonlight. The decrease was due to light falling much below the normal level. Thus, it was concluded that illumination did not have any effect on productivity but something else was interfering with the productivity. At that time, it was concluded that the human factor was important in determining productivity but which aspect was affecting it, it was not sure. Therefore, another phase of experiments was undertaken.

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Relay Assembly Test Room Experiments

Relay assembly test room experiments were designed to determine the effect of changes in various job conditions on group productivity as the illumination experiments could not establish relationship between intensity of illumination and production. For this purpose, the researchers set up a relay assembly test room and two girls were chosen. These girls were asked to choose four more girls as co-workers. The work related to the assembly of telephone relays. Each relay consisted of a number of parts which girls assembled into finished products. Output depended on the speed and continuity with which girls worked. The experiments started with introducing numerous changes in sequence with duration of each change ranging from four to twelve weeks. An observer was associated with girls to supervise their work. Before each change was introduced, the girls were consulted. They were given opportunity to express their viewpoints and concerns to the supervisor. In some cases, they were allowed to take decisions on matters concerning them. Following were the changes and resultant outcomes:

1 The incentive system was changed so that each girl’s extra pay was based on the other five rather than output of larger group, say, 100 workers or so. The productivity increased as compared to before.

2. Two five-minute rests-one in morning session and other in evening session were introduced which were increased to ten minutes. The productivity increased.

3. The rest period was reduced to five minutes but frequency was increased. The productivity decreased slightly and the girls complained that frequent rest intervals affected the rhythm of the work.

4. The number of rest was reduced to two of ten minutes each, but in the morning. coffee or soup was served along with sandwich and in the evening, snack was provided. The productivity increased.

5. changes in working hours and workday were instructed such as cutting an hour off the end of the day and eliminating Saturday work. The girls were allowed to leave at 4.30 p.m. instead of usual 5.00 p.m. and later at 4.00 p.m. Productivity increased.

As each change was introduced, absenteeism decreased, morale increased, and less supervision was required. It was assumed that these positive factors were there because of the various factors being adjusted and making them more positive. At this time, the researchers decided to revert back to original position, that is, no rest and other benefits. Surprisingly, productivity increased further instead of going down. This development caused a considerable amount of redirection in thinking and the result implied that productivity increased not because of positive changes in physical factors but because of a change in the girls’ attitudes towards work and their work group. They developed a feeling of stability and sense of belongingness. Since there was more freedom of work, they developed a sense of responsibility and self-discipline. The relationship between supervisor and workers became close and friendly. 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 favourites?” etc. Since this method had disadvantage of either stimulating antagonism or the over-simplified ‘yes’ or ‘no’ responses which could not get to the root of the problem the method was changed to non-directive interviewing where interviewer was asked to listen to instead of talking, arguing, or advising. The interview programme gave valuable insights about the human behaviour in the company. Some of the major finder programme were as follows:

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1 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, and 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.

3. The personal situation of the worker is a configuration, composed of a personal preference involving sentiments, desires, and interests of the person and the social reference constituting the person’s social past and his present interpersonal relations.

4. The position or status of a worker in the company is a reference from which the worker assigns meaning and value to the events, objects, and features of his environment such as hours of work, wages, etc.

5. The social organisation of the company represents a system of values from which the worker derives satisfaction or dissatisfaction according to the perception of his social status and the expected social rewards.

6. The social demands of the worker are influenced by social experience in groups both inside and outside the work plant. 16 During the course of interviews, it was discovered that workers’ behaviour was being influenced by group behaviour. However, this conclusion was not very satisfactory and, therefore, researchers decided to conduct another series of experiments. As such, the detailed study of a shop situation was started to find out the behavior of workers in small groups .

 

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