I MBA - I SEMESTER - MODEL EXAMINATION

BA4102 – Management Concepts and Organizational Behaviour

Time: 1.30PM to 4.30 PM
Date: 12.01.2023 Max Marks: 100

Part-A 10*2=20

Answer All the Questions:

1. ‘Unity of command’ means that an individual employee should receive orders from one manager
and that the employee is answerable to that manager. If tasks and related responsibilities are
given to the employee by more than one manager, this may lead to confusion which may lead to
possible conflicts for employees. By using this principle, the responsibility for mistakes can be
established more easily.
2. Management job is different from other jobs. It requires elements of stewardship and
commitment to the purpose. It involves the obligation to make prudent use of human and
material resources. It requires sound judgment to handle complex situations. For purpose of
analysis, skills required of any manager are classified under three different heads
 technical, human (Employee relations skill) and
 conceptual skill
 The exhibit helps in understanding the levels of management responsibility,
the principal skill requirements, and the extent to which each kind of skill is
required at each level.
3. A significant aspect of any formal planning process in collection of relevant information for the
purpose of forecasting the future as accurately as possible. This would minimize the chances of
haphazard decisions. Since the future needs of the organization are anticipated in advance, the
proper acquisition and allocation of resources can be planned, thus minimizing wastage and
ensuring optimal utility of these resources.

4. Operational Planning, Strategic Planning, Tactical Planning, Contingency Planning ,

Hierarchical Plans, Frequency-of-use Plans, Standing plans, Policies, Rules, Procedures,
Single-use plans, Programmes, projects, budgets
5. It is refers to motivation that comes from inside of an individual. People may work at a
job because it gives them feelings of capability and a sense of personal control, doing the
job is fun, the tasks are challenging, so on. In this situation, the individual is basically
motivated to work.
6. Type A personality These people are very competitive and have a strong sense of
urgency. They work well in moderate-to-high levels of stress. Type A Personalities are
impatient and forceful to achieve more and more in less and less time. These
characteristics results in some specific behavioral outcomes working fast, working for
long hours, making quick decisions etc. are some of the behavioral examples of Type A
people.

Type B personality . The opposite of Type A people, Type Bs have far less time urgency
and less competitive natures. The senior executives are usually Type B's. He used to put
extra effort in order to meet a deadline but do not feel pressurized.

7. In matrix organization managers is usually not assigned complete responsibility for

resourced instead shares them with others in the organization. It contains characteristics
of project and functional organizational structure.

8. a) Collective work-products b) Strategic effects c) Improved version of formal group d)

Small size or limited members e) Rewarding pattern f) Complementary membership role
g) Emphasis h) Shared leadership i) Accountability j) Specific purpose k) Interacting
style (open ended) l) Members’ characteristics or expertise

9. Cross-cultural communication is a process of creating and sharing meaning among people

from different cultural backgrounds using a variety of means. The term cross-cultural
communication is used interchangeably with intercultural communication at times.

10. Cultural Intelligence refers to the skill to relate and work effectively in culturally diverse
situations. It's the capability to cross boundaries and prosper in multiple cultures.
 Part B 5*3=15

11. A) The Hawthorne experiments were conducted by Elton Mayo at Hawthorne plant &
general electronics company (GEC) between1927 and 1932 at Chicago. It is explored
informal groupings, informal relationships, patterns of communication, and patterns of
internal leadership. The human relationists advocate several factors after conducting
Hawthorne experiments such as Social system: The organization in general is a social system
consists of numerous interacting parts. The social system established individual roles and
establishes norms that may differ from those of formal organization. Social environment: The
social climate of the job affects the workers and is also affected. Informal organization: The
informal organization does also exist within the frame work of formal organization and it
affects and is affected by the formal organization. Group dynamics: At the place of work, the
workers often do not act or react as individuals but as members of group. The group plays an
important role in determining the attitudes and performance of individual workers. Informal
leader: There is an appearance of informal leadership as against formal leadership and the
informal leader sets and enforces group norms. Non-economic reward: Money is an
encouraging element but not the only motivator of human behaviour. Man is diversely
motivated and socio psychological factors act as important motivators. In 1927, a group of
researchers led by Elton Mayo and Fritz Roethlisberger of the Harvard Business School were
invited to join in the studies at the Hawthorne Works of Western Electric Company, Chicago.
The experiment lasted up to 1932. The Hawthorne Experiments brought out that the
productivity of the employees is not the function of only physical conditions of work and
money wages paid to them. Productivity of employees depends heavily upon the satisfaction
of the employees in their work situation. Mayo’s idea was that logical factors were far less
important than emotional factors in determining productivity efficiency. Furthermore, of all
the human factors influencing employee behaviour, the most powerful were those emanating
from the worker’s participation in social groups. Thus, Mayo concluded that work
arrangements in addition to meeting the objective requirements of production must at the
same time satisfy the employee’s subjective requirement of social satisfaction at his work
place. The Hawthorne experiment consists of four parts. These parts are briefly described
below:- 1. Illumination Experiment. 2. Relay Assembly Test Room Experiment. 3.
Interviewing Programme. 4. Bank Wiring Test Room Experiment. 1. Illumination
Experiment: This experiment was conducted to establish relationship between output and
illumination. When the intensity of light was increased, the output also increased. The output
showed an upward trend even when the illumination was gradually brought down to the
normal level. Therefore, it was concluded that there is no consistent relationship between
output of workers and illumination in the factory. There must be some other factor which
affected productivity. 2. Relay Assembly Test Room Experiment: This phase aimed at
knowing not only the impact of illumination on production but also other factors like length
of the working day, rest hours, and other physical conditions. In this experiment, a small
homogeneous work-group of six girls was constituted. These girls were friendly to each other
and were asked to work in a very informal atmosphere under the supervision of a researcher.
Productivity and morale increased considerably during the period of the experiment.
Productivity went on increasing and stabilized at a high level even when all the
improvements were taken away and the pre-test conditions were reintroduced. The
researchers concluded that socio-psychological factors such as feeling of being important,
recognition, attention, participation, cohesive work-group, and non-directive supervision held
the key for higher productivity. 3. Mass Interview Programme: The objective of this
programme was to make a systematic study of the employees’ attitudes which would reveal
the meaning which their “working situation” has for them. The researchers interviewed a
large number of workers with regard to their opinions on work, working conditions and
supervision. Initially, a direct approach was used whereby interviews asked questions
considered important by managers and researchers. The researchers observed that the replies
of the workmen were guarded. Therefore, this approach was replaced by an indirect
technique, where the interviewer simply listened to what the workmen had to say. The
findings confirmed the importance of social factors at work in the total work environment. 4.
Bank Wiring Test Room Experiment: This experiment was conducted by Roethlisberger and
Dickson with a view to develop a new method of observation and obtaining more exact
information about social groups within a company and also finding out the causes which
restrict output. The experiment was conducted to study a group of workers under conditions
which were as close as possible to normal. This group comprised of 14 workers. After the
experiment, the production records of this group were compared with their earlier production
records. It was observed that the group evolved its own production norms for each individual
worker, which was made lower than those set by the management. Because of this, workers
would produce only that much, thereby defeating the incentive system. Those workers who
tried to produce more than the group norms were isolated, harassed or punished by the group.
B) Management job is different from other jobs. It requires elements of stewardship and
commitment to the purpose. It involves the obligation to make prudent use of human and
material resources. It requires sound judgment to handle complex situations. Further, the
nature of the job becomes increasingly complex at each higher level because of the increase
in the scope of authority and responsibility. Therefore, each higher level requires increased
knowledge, broader perspective and greater skills. For purpose of analysis, skills required of
any manager are classified under three different heads  technical,  human (Employee
relations skill) and  conceptual skill as shown in figure 2.2. The exhibit helps in
understanding the levels of management responsibility, the principal skill requirements, and
the extent to which each kind of skill is required at each level. Technical Skills Technical
skills refer to the ability to use the tools, equipment, procedures, techniques and knowledge
of a specialized field. It is primarily concerned with the ways of doing the things. It implies
proficiency in a specific field of activity. Technical skills are most important for the lower
level managers, because by nature their job involves supervision of the workers. Effective
supervision and coordination of the work of the subordinates, therefore, depends on the
technical skill possessed by the lower level manager. Any supervisor without a sound
knowledge of the job cannot make an effective supervisor. Such supervisors are not respected
by the subordinates at the shop floor. The relative importance of the technical skills as
compared to the other skills diminishes as one moves up to higher levels of management.
Human Skills Human skills are primarily concerned with persons, as contrasted with
“things”. When a man is highly skilled in employee relations, he is aware of his own
attitudes, assumptions, and beliefs and recognizes their limitations as well as their usefulness.
He accepts, as an important fact of life, the existence of viewpoints and feelings, different
from his own. Thus, human skill refers to the ability of the manager to work effectively as a
group member and to build cooperative effort in the team he leads. It is the ability to work
with, understand and motivate people. He understands why people behave as they do and is
able to make his own behaviour understandable to them. he can foresee their reactions to
possible courses of action and, is able to take their attitudes into account. His skill in working
with others is natural and continuous. He does not apply it in random or in inconsistent
fashion. It is a natural ingredient of his every action. Conceptual Skills The skill also called
design and problem-solving skill, involves the ability;  to see the organisation and the
various components of it as a whole;  to understand how its various parts and functions mesh
together; and  to foresee how changes in any one of these may affect all the others
Conceptual skills extend to visualizing the relation of the organisation to industry, to the
community and to the political, economic and social forces of the nation as a whole and even
to forces which operate beyond the national boundaries. It is the creative force within the
organisation. A high degree of conceptual skill helps in analyzing the environment and in
identifying the opportunities and threats. Managements of companies like ITC, Larsen &
Toubro, Asian Paints, Bajaj Auto in the private sector and National Dairy Development
Board in the public sector, to mention a few, have amply demonstrated this skill in gaining a
competitive edge over their competitors. As you have understood by now – the three types of
skills discussed so far are not mutually exclusive. In other words, management job always
requires all the three skills but in different proportions depending upon the level of
management. there is a gradual shift in the emphasis from the bottom to the top of the
pyramid. Technical skills and human skill are always in great demand at the lower level of
management for it is there the productive processes and operations are carried out. It is there
where you find most of the people. It is there where the action takes place. The need for
conceptual skill is greatest at the top level of management. Obviously, the top managers are
not often involved in the direct application of specific methods, procedures and techniques,
compared to those at the lower echelons of management. As evident from the foregoing
discussion, at the entry level is not the management job, that is, at the supervisory level,
besides technical skills, you have to acquire human skills and the problem – solying skills
(conceptual). To climb up the organizational ladder, you must not only be good at the skills
required for the present job, but also learn and acquaint yourself with the skills required at the
next level. As result, in the event of promotion to the next higher levels, you would feel at
home and discharge the responsibilities with ease. Based on the differences in the type of
skills required, organisations assess the training needs of the managers. Accordingly,
appropriate training methods or modules are designed to equip them with the skill required at
the respective levels. Although, each of these skills is needed in some degree at every level of
management, there are successful executives who have no great amount of technical skills.
But they are able to compensate the lack of that skill through superior creative ability and
skill in selecting, planting and effectively motivating subordinates who are strong in technical
skills.

12A) Management by objectives (MBO) is a comprehensive management system based on

measurable and participatively set objectives. MBO is now widely practised all over the
world. But, despite its large-scale application, the meaning of MBO is not yet always clear.
To some people, it is an appraisal tool; others consider it a motivational technique, while
others look upon it as an instrument of planning and control. Management by objectives
(MBO) has been defined by Weihrich and Koontz as “The comprehensive managerial system
that integrates many key managerial activities in a systematic manner and that is consciously
directed toward the effective and efficient achievement of organisational and individual
objectives. Emphasising management by objectives was not initiated or originated by any
single person. Such management has been dictated by the prudence or common sense of
innumerable Violators will face infringement proceedings of copyright laws. Page 25 people.
However, certain individuals have long placed emphasis on management by end results MBO
is a comprehensive management system based on measurable and participatively set
objectives. It has come a long way since it was first suggested by Peter F. Drucker in 1954 as
a way of promoting managerial self-control. The common factor that has made MBO
programs so popular in both management theory and practice is the emphasis on objectives
that are both measurable and participatively set. MBO is a management technique for
increasing employee involvement in the planning and controlling activities. Through
involvement, it is believed that employee commitment to a planned course of action will be
enhanced and performance will be more efficient. Many variations are found in the practice
of MBO. But basically it is a process through which goals, plans, and control systems of an
organisation are defined through collaboration between managers and their subordinates.
Jointly they identify common goals, define the results expected from each individual, and use
these measurements to direct the operation of their unit and to assess individual contributions.
In this process, the knowledge and skills of many members of the organisation are pressed
into service. Instead of telling subordinates about their goals, managers ask subordinates to
participate and decide about what their goal should be. After setting up of an acceptable set of
goals for each employee through a give-and-take collaborative process, the employee is asked
to play a major role in devising an action plan for achieving these goals. In the final stage of
the MBO process, employees are asked to develop control processes, to monitor their own
performance and to suggest corrective measures if deviations from plans do occur. The entire
process is a combination of planning and control.

b)The word decision has been derived from the Latin word "decidere" which means "cutting
off". Thus, decision involves cutting off of alternatives between those that are desirable and
those that are not desirable. In the words of George R. Terry, "Decision-making is the
selection based on some criteria from two or more possible alternatives". Characteristics of
Decision Making • Decision making implies that there are various alternatives and the most
desirable alternative is chosen to solve the problem or to arrive at expected results. • The
decision-maker has freedom to choose an alternative. • Decision-making may not be
completely rational but may be judgemental and emotional. • Decision-making is goal-
oriented. • Decision-making is a mental or intellectual process because the final decision is
made by the decision-maker. • A decision may be expressed in words or may be implied from
behaviour. • Choosing from among the alternative courses of operation implies uncertainty
about the final result of each possible course of operation. • Decision making is rational. It is
taken only after a thorough analysis and reasoning and weighing the consequences of the
various alternatives.

Characteristics of Effective Decisions An effective decision is one which should contain three
aspects. These aspects are given below: • Action Orientation: Decisions are action-oriented
and are directed towards relevant and controllable aspects of the environment. Decisions
should ultimately find their utility in implementation. • Goal Direction: Decision making
should be goal-directed to enable the organization to meet its objectives. • Effective in
Implementation: Decision making should take into account all the possible factors not only in
terms of external context but also in internal context so that a decision can be implemented
properly.

13 A) Learning Definitions: “Learning is any permanent change in behavior that occurs as a

result of experience.” - Stephen Robbins and Seema Sanghi. “Learning means acquisition of
knowledge, skills, ability, expertise, etc., through study, experience, and practice that result
into long-term change in one’s behavior.” Definition According to E. R. Hilgard, “Learning
is a relatively permanent change in behavior that occurs as a result of prior experience.”
Ironically, it can be said that change in behavior indicates that learning has taken place and
that learning is a change in behavior. Characteristics of Learning: • Psychological process •
Outcome of past experience • Change in behavior • Conscious and deliberate • Need of
Reinforcement Principles of Learning: Principles are facts related to learning. Psychologists
have identified some truths to explain how learning takes place. Most principles have been
derived from classical and operant theories of learning. Important principles are: 1. Principle
of acquisition: principle of acquisition suggests that people follow different patterns of
acquiring new behavior depending on the situation. The principle works under five types of
conditions/ situations a. Different tasks and different patterns of acquisition.

Steps in Learning
Process Stimuli (Motivation) Stimuli are any objects and language or information or data,
which draw the attention of people. Employees get information from the actions of their
superiors Attention The degree of attention depends upon the nature of information. All
information’s are not paid attention to. Technical and interesting information’s are highly
attended. Career oriented information’s are generally accepted by employee. Recognition
Attention paid information or data is recognized as acceptable factors of improvement and
new life styles Translation Recognized information or data are evaluated at the mental level
to eliminate the irrelevant points for accepting a part of the information or data for changing
behavior Reinforcement Reinforced (unbreakable) perception is learning. The perception
process includes information, attention, recognition, translation and behavior. Perception
leads to learning, but perception itself is not learning unless it is reinforced Behaviour
Learning changes behavior through re-enforcement of perceived knowledge. It makes
permanent changes in behavior. A temporary change in behavior is not learning .positive
behavior gives rewards to employees Reward Employees expect rewards for learning. If the
translated behavior provides a reward, it is accepted, otherwise it is not accepted. Habits A
permanent change in behavior becomes a habit which helps continuous improvement in
behavior and performance. Employees develop the habit of self- appraisal and development
Motives Motive depends on the level of satisfaction. Employees getting more satisfaction
through learning develop high motives. Less satisfied learners have low motives. Learning is
complete only when motives are fully realized and translated in to efforts. Efforts Habits help
to achieve good efforts and performance. This is a continuous process. Efforts are the
automatic outcome of good habits which are acquired through learning process.

13B)Perception Process a. Receiving: - The first process in the perception is the receipt of the
data from various sources. Most of the data received through seeing, hearing, smelling,
tasting etc b. Selection: - selection is the fundamental step in perceptual process. It is based
on internal or external factor Internal Factor: - Personality, experience etc External Factor: -
Size, movement etc c. Organizing: - The next step is to organize these in proper manner to
make the same meaningful. d. Interpreting: - People interpret the meaning of what they have
perceived and organized in terms of their own assumptions of people, things and situations.
They also become judgmental as well as tend to interpret the thing as good /bad. e.
Checking:- The next step in the process of perception is that the perceiver has to check
whether the interpretation made by him is correct or not f. Reaction: - The last stage in the
perception process is the response based on what has been perceived (Believed, Thought).
This is the output aspect of perceptual process.

14 A) “Organization structure is the establishment of authority relationships with provision

for co-ordination between them, both vertically and horizontally in the enterprise structure.

Formation or Types of organization structure or modern organization designs

Line / Military organization Functional organization Line and staff organization Committee
organization Project organization Matrix organization

A. Line / Military organization Line Organization (also called Military/Scalar

Organization) is the oldest and the simplest form of internal Organization structure. It
was first developed by the Roman army and later adopted by armies all over the
world. Factory owners also used line Organization structure in its purest form in the
nineteenth century in England. In the line Organization, the line of authority moves
directly from the top level to the lowest level in a step-by-step manner.
B. Line and Staff Organization Structure :According to Louis Allen, "Line refers to those
positions and elements of the Organization, which have the responsibility and
authority and are accountable for accomplishment of primary objectives. Staff
elements are those which have responsibility and authority for providing advice and
service to the line in attainment of objectives"
C. C. Functional organization In the functional Organization suggested by F.W.Taylor,
the job of management is divided according to specialization. As a result, functional
departments are created. For example, the personnel department will look after the
recruitment, selection, training, wage payment, etc. of all persons of the Organization.
Similar will be the position of other departments like production, sales, etc.
D. Committee organization A committee is a group of person who are consciously and
deliberately formed to discuss a problem and provide solutions to overcome it. A
committee consists of a group of a people with a minimum or at least two people and
there is no limit for the maximum number of people. The member of a committee
arrive at a decision on the basis of one member one vote provided they have authority
to go into the problem assigned to them. Generally committee classified as executive
and non executive committee.
E. Project organization A project organization is composed of a core of functional
departments; through its main units are specific programs or projects.
F. Matrix organization In matrix organization managers is usually not assigned complete
responsibility for resourced instead shares them with others in the organization. It
contains characteristics of project and functional organizational structure.

b) Group Cohesiveness (Interrelation) Group in which individuals generally agree and

cooperate would be relatively more effective at completing the task A. Consequence or
Importance of group cohesiveness High productivity :- Under Hawthorne studies high
degree of cohesiveness is both a cause and effect of high productivity More personal
satisfaction: - High group cohesiveness also offers job satisfaction to its members. Group
provides self respect, reward, support, opportunity, achievement, Protection and feeling
of security. More participation: - In group cohesiveness involves close interpersonal
relationship, among members. Members also quality to assistant support other members
of the group in term of need and this strengthens the links of friendship. The members are
actively involved in meetings and group activities asit gives them an opportunity of social
indention for achieving individual and group goals. Generally members absentees and
turnover rate is very low in groups More success: - High degree of cohesiveness
(interrelation) leads for high degree of coordination, communication, participation and
this result in a high degree of achievement of goals. In general cohesiveness groups are
more successful in achieving the goals. Thus high degree of coordinated efforts of
members of group tend to result in success in achieving such goals More communication:
- Better communication reduces conflict and misunderstanding among members of the
group. Increases communications leads for the depth in personal relationship among
members in group.

Determinants influence of (group behavior or group cohesiveness or group dynamics) /

structural dynamics of group • External factors :- The organization system influence the
group through corporate strategy, organizational structure, rules and regulations,
organizational resources, staffing policies, appraisal and reward system, organizational
culture, physical work environment such as layout, lighting, interior decoration, seating
arrangement, temperature etc. • Group members' resources a. Ability of members: - The
performance of group may be influenced by the task relevant academic abilities of each of
its members. b. Personality characteristics: - The personality qualities of group members
can shape group attitude and behaviour. These include qualities such as sociality, self
reliance and independence. • Group structure: - In a simple term structure is a model in
which various parts or components of an object or interrelated or interconnected.
 Therefore, the structure of the work group has to been realized from its various
components and how they work • Group process: - Group process refers to the
communication pattern used by members. Group decision process, leader behaviour,
power dynamics, and conflict interactions. Group process are significant as they can
create outputs greater than the some of the inputs because of the effect of interaction •
Group tasks: - Groups are created to accomplish some tasks. Group tasks can range from
simple to complex task. Generally, the more complex task, the more group will benefit
from decision among members on various alternatives. If the task is simple and search for
alternatives and thus discussion between group members would be limited. • Performance
and satisfaction: - The group task requires members to take initiative. Difficult task is
perceived as meaningful.

15.A)a. Perform difficult task: - Group can be a means of working on a difficult and
independence task that are too difficult for an individual to perform and that cannot be
easily broken down into independence task. b. Generate new ideas: - Groups can be a
means of generating new ideas or creating solutions to solve problems that required input
from number of people. A multi various skills required for the performance of a difficult
job is available within a group c. Problem solving mechanism :- Groups can serve as
problem solving mechanism when problem requires the process of difficult information
interaction among members with different information and critical assignment of
possible alternative solutions d. Facilities complex decision making: - Groups can be
used to facilitate the implementations of the difficult decisions. A group composed of
representatives from various working group co-ordinating activities of these interrelated
groups. In a large organization there will be a number of problems conflicting views, etc.
for decision making. one needs a vehicle to air this views after due considerations only a
powerful group can provide this as “ union is strength”.

Part C 1*15

16 A) The evolution of of management theory may be divided in to 3 stages I. The classical

Theory of Management – It consists of 3 streams  Scientific management – Frederick Taylor
 Administrative Management – Henry Fayol  Bureaucracy – Max Weber

II The Neo- Classical Theory  Human Relations Management  Hawthorne Experiment 

Behavioural science
approach III. The modern management Theories  Quantitative management approach 
Systematic approach  Contingency management approach

I. The classical Theory of Management – It consists of 3 streams Scientific

Management Frederick Winslow Taylor is known as the father of scientific
management. Scientific management (also called Taylorism or the Taylor system)
is a theory of management that analyses and synthesizes workflows, with the
objective of improving labour productivity. The Traditional rules of thumb are
replaced by precise procedures developed after careful study of an individual at
work. The Organizational productivity can be increased by increasing the
efficiency of production processes. 1. Development of Science for each part of
men’s job (replacement of rule of thumb) a. This principle suggests that work
assigned to any employee should be observed, analyzed with respect to each and
every element and part and time involved in it. b. This means replacement of odd
rule of thumb by the use of method of enquiry, investigation, data collection,
analysis and framing of rules. c. Under scientific management, decisions are made
on the basis of facts and by the application of scientific decisions. 2. Scientific
Selection, Training & Development of Workers a. There should be scientifically
designed procedure for the selection of workers. b. Physical, mental & other
requirement should be specified for each and every job.
Administrative Management Henri Fayol is the major contributor of
Administrative approach of management thought. Administrative management
focuses on the management process, principles of management and functions for
improving organizational functioning. In contrast to scientific management, which
deals largely with jobs and work at the individual level of analysis, administrative
management provides a more general theory of management.
 Bureaucratic Management - Bureaucratic management focuses on the ideal form
of organization. Max Weber [1864-1920] was the major contributor to
bureaucratic management. Based on observation, Weber concluded that many
early organizations were inefficiently managed, with decisions based on personal
relationships and loyalty. He proposed that a form of organization, called a
bureaucracy, characterized by division of labour, hierarchy, formalized rules,
impersonality, and the selection and promotion of employees based on ability,
would lead to more efficient management. Weber also contended that managers'
 authority in an organization should be based not on tradition or charisma but on
the position held by managers in the organizational hierarchy. Rules and
regulations to eliminate managerial inconsistencies.

II)- Neo-classical Theory The Neo-classical theory deals with the human factor.
Elton Mayo and Mary Parker Follett are the main contributors to the human
relations approach. The Neoclassical Theory is also called a Behavioural
Approach. The behavioural approach of management thought as they observed
weaknesses in the assumptions of the classical approach. This theory is focused
on the area of job content, including the management of physical resources, while
the neo-classical theory gave a more profound emphasis on employee
relationships in the work environment. The behavioural approach concentrated on
the understanding of the factors that affect human behaviour at work. This is an
improved and more matured description of human relations approach. Elements
of Neoclassical theory a) Human Relations Management b) Hawthorne
Experiment c) Behavioural science approach

III Modern Theory of Management approach Modern Theory of management has

grown with the growth of socialeconomics and scientific institution. The Modern
Theory of management has divided into three groups such as a. Quantitative
management approach b. Systematic approach c. Contingency management approach
a) Quantitative management approach – The quantitative approach focuses on
improving decision making via the application of quantitative techniques. It is also
known as Management science approach or decision theory approach. The
quantitative approach was developed by W.C. Churchman. The Major contributors in
Quantitative approach are: Johan MacDonald, George R Terry, and Andrew Szilagyi.
It focused on use of mathematical and statistical techniques in management. It also
focused on finding right answers to management problems.

b) System Approach to Management: The System approach is based on the

generalization that an organization is a system and its components are inter-related
and inter-dependent. The effectiveness of the system mainly depends upon the inter
dependence and interrelatedness of the various sub systems.

c) Contingency or Situational Approach –The contingency approach focuses on

applying management principles and processes as dictated by the unique
 characteristics of each situation. This approach was developed by J. W. Lorsch and P.
R. Lawrence. The basic essence of this approach that organizations have to cope with
different situations in different ways. So managers should develop variable methods,
tools and action plans as per the required situation. There cannot be a particular
management action which will be suitable for all situations. The only action is
designed on the basis of external environment, internal states and needs.

b) The social process by which people interact face to face in smaller groups is called group
dynamics. Thus group dynamics is concerned with the face to face interaction of individual.

Two or more persons: - To form a group, there should be atleast two persons because
a single individual cannot interact. However, there cannot be any specific limit on the
maximum number of persons in a group but the size of the group, will be determined
by rules and regulations of the organization.

Collective identify: - Members of the group must be aware about the membership of
the group. Each member of the group must believe that he is the member of, is a
participant in, some specific group. Interaction: - Interaction means the each members
share his ideas with others through communication and this communication can take
place face to face, in writing, over the telephone, across a computer network, or in any
other manner which allows communication among group members. However, it is not
necessary for all members of the group to interact simultaneously, but each member
must interact, atleast occasionally with one or more members of the group. Shared
goal interested: - Members of the group should give to the attainment of some
common objectives. However, it is not necessary that each member promise to or
agrees with all the objectives of the group. If groups have a variety of objectives or
interest, each member of the group must share atleast one of the group concerned. The
shared goal interest joins the group member together.

Primary and Secondary groups: - Primary groups are those characterized by intimate,
face to face association and cooperation. These are clusters are people like families or
close friendship circles where there is close, face to face and intimate interaction. For
example: - Family and peer group. Secondary groups are characterized by large size
and individual’s identification with values and beliefs established in them rather than
actual interaction. There are often large and usually formally organized. For example:
- Occupational association and ethnic groups etc.
Membership and Reference groups:- Membership group are once to which the
individual actually belongs. For example: - Clubs, cooperative societies, workers
unions etc. Reference groups are the once with which an individual identifies or to
which he would like to belong. c. Temporary or Permanent group:- Groups are formed
for achieving certain objectives. They have a very short life. After attaining the
objectives, they are dissolved. Meetings, committees, and small groups are example
for temporary groups. They have group activities, group performance, and job
assignment and so on. A team is a permanent group.

High productivity :- Under Hawthorne studies high degree of cohesiveness is both a

cause and effect of high productivity More personal satisfaction: - High group
cohesiveness also offers job satisfaction to its members. Group provides self respect,
reward, support, opportunity, achievement, Protection and feeling of security. More
participation: - In group cohesiveness involves close interpersonal relationship,
among members. Members also quality to assistant support other members of the
group in term of need and this strengthens the links of friendship. The members are
actively involved in meetings and group activities asit gives them an opportunity of
social indention for achieving individual and group goals. Generally members
absentees and turnover rate is very low in groups More success: - High degree of
cohesiveness (interrelation) leads for high degree of coordination, communication,
participation and this result in a high degree of achievement of goals. In general
cohesiveness groups are more successful in achieving the goals. Thus high degree of
coordinated efforts of members of group tend to result in success in achieving such
goals More communication: - Better communication reduces conflict and
misunderstanding among members of the group. Increases communications leads for
the depth in personal relationship among members in group.