MANAGEMENT OF PRINCIPLE S AND

Evolution of
APPLICATION

Management
Thoughts
(Group 6: 24/89193 - 24/89202)
CONTENT
 Quick
Management has been practiced in some form or the other since the dawn of civilization.

and management were evolved. History

Ever since human beings began to live and work together in groups, techniques of organization

The Summerian Civilization dating back to 3000 B.C. had an efficient system of tax collection.
The pyramids of Egypt, the Chinese Civil Service, the Roman Catholic church, and military
organization offer good examples of the application of management in ancient times.
Kautilya's Arthashastra, the Bhagavad Gita, the Holy Bible and other epics contain references to
the management of public affairs.
 01
MANAGEMENT AS AN
ELECTRIC MODERN
DISCIPLINE
The art of management has ancient origins. However, the science of management
developed largely after the Industrial Revolution. Modern management has
developed through several stages or approaches.
Different researchers looked at management from different perspectives. While
some emphasized adoption of scientific systems to increase efficiency; others
looked at the administrative and systematic aspects.
Some theories focused on human behavior while others took a broader view of the
organization and talked of synergy between organization and its environment. Some
theories relate to decision making and using mathematical models for the same.

There is no consensus among the researchers as to which theory is the best. Each
theory has its own set of supporters. This has led to a lot of confusion.

The same was acknowledged by Harold Koontz in his paper called "The Management
Theory Jungle" where he identified six different approaches to management theory.
Koontz in a later work mentions that the number of approaches had increased to 11
over time, However, it needs to be mentioned that these approaches to
management should not be seen as contradictory.
Management is an eclectic modern discipline and all these approaches are useful
explain parts of managerial theories and practices. Thus, as a discipline
management is based on the principles of all these approaches. Different
approaches may work for different organization at different points of time.
Many aspects of these theories may pertain to management itself. But, the basic
management science and theory also draws from various other disciplines.
For example, management draws on sociology, social psychology, cultural
anthropology and psychology to explain interpersonal and group behavior as well as
human relations. It borrows management sciences from mathematics. The decision
theories and rationality are based on economics, For technical and scientific aspects
management uses engineering. Systems theory also uses principles of industrial
engineering and political science. Thus, various schools of thoughts developed their
base with the help of ideas, concept and principles from various knowledge
disciplines and blended them together to make the complete philosophy of
management. Further, management theory combines its knowledge from multiple
fields with the experience of the practitioners to form the eclectic discipline of
management.
02
The Classical
Approach
The classical or empirical approach is based on the following tenets :
1.Management is a process consisting of interrelated functions performed to achieve
the desired goals.
2.From the experience of managers in different organizations; principles or guidelines
can be derived.
3.These principles are basic truths which can be applied in different organizations to
improve managerial efficiency.
4.Managers can be developed through formal education and training.
5. People are motivated mainly by incentives and penalties. Therefore managers use
and control economic rewards.
6.Theoretical research into management helps to develop a body of knowledge which
is necessary to improve the art of management.
7.There should be no conflict between individuals and the organization. In case of
conflict interests of the organization should prevail.
 USES
The classical approach offers a convenient framework for the
education and training of managers.
First, the observational method of case study is helpful in drawing
common principles out of past experiences with some relevance for
future application.
The second merit of this approach is that it focuses attention on what
managers actually do.
Thirdly, this approach highlights the universal nature of management.
Fourthly, it provides a scientific basis for management practice. It also
provides a starting point for researchers to verify the validity and
improve the applicability of management knowledge.
 LIMITATIONS

1. The classical approach, however, suffers from several shortcomings.

2. It offers a mechanistic framework that undermines the role of human
factor.
3. The environmental dynamics and their effect on management have
been discounted.
4. There is a positive danger in relying too much on past experiences
because a principle or technique found effective in the past may not fit
a situation of the future.
5. The totality of the real situation can seldom be incorporated in a case
study.
6. The classical approach is based on oversimplified.
 ADVANTAGES
- Specialization: A bureaucratic organization provides the advantages of
specializing because every member is assigned a specialized task to perform.

- Structure: A structure or form is created by specifying the duties and

responsibilities and reporting relationships in a command hierarchy. Structure sets
the pace and framework for the functioning of the organization.

- Rationality: A measure of objectivity is ensured by prescribing in advance the

criteria for decision-making in routine situations.

- Predictability: The rules, regulations, specialization, structure and training impart

predictability and thereby ensure stability in the organization. Conformity to rules
and roles in the structural framework bring about order to cope with complexity.

- Democracy: Emphasis on qualifications and technical competence make the

organization more democratic. Officials are guided by the prescribed rules, policies
and practices rather than by patronage or other privilege treatment
 DISADVANTAGES
•Rigidity: Rules and regulations in a bureaucracy are often rigid and inflexible. These
encourage status quo and breed resistance to change. Rigid compliance with rules and
regulations discourages initiative and creativity. It may also provide the cover to avoid
responsibility for failures.

•Goal displacement: Rules framed to achieve organizational objectives at each level

become an end in themselves. When individuals holding office at lower levels pursue
personal objectives or objectives of sub-units, the overall objectives of the organization
may be neglected. Once the objectives get so displaced, managers and other members of
the organization find it very difficult to achieve the goals of the organization.

•Impersonality: A bureaucratic organization stresses mechanical way of doing things.

•Paperwork: Bureaucracy involves excessive paperwork as every decision must be put in

writing. All documents have to be maintained in their draft and original forms. This leads to
great wastage of time, stationery and space.
SCIENTIFIC MANAGEMENT – F.W
TAYLOR
Frederick Winslow Taylor (1856-1915) is regarded as the "father of scientific
management".
He was a brilliant engineer and management scientist in the USA. He
worked at Midvale Steel Works, Simonds Rolling Mills, and Bethlehem Steel
Company in the USA for several years. He was sad to see the haphazard
and wasteful ways of doing job in these organizations.
Principles of Scientific Management
•Harmony, in group action, rather than discord
• Maximum output, in place of restricted output.
• Development of each man to his greatest efficiency.
• Maximum prosperity of employer, coupled with maximum prosperity of
each employee.
• Cooperation not individualism.
• An almost equal division of work and responsibility between workers and
managers.
 TECHNIQUES OF SCIENTIFIC
MANAGEMENT
● 1.Time study: Time study or work measurement is designed to establish
the standard time required to carry out a job under specified conditions. It
involves analysis of job into its constituent elements and recording the
time taken in performing each element. Taylor suggested the use of time
study to lay 'down a fair day's work' so as to avoid guesswork and
uncertainty on the effort and productivity expected of each worker.
● 2.Motion study: It is systematic and critical study of the movement of both
the workers and the machines so as to identify and eliminate unnecessary
and wasteful movements.
● 3.Scientific task planning: It is the technique of forecasting and picturing
ahead every step in a long series of separate operations, each step to be
taken in the right place, of the right degree and at the right time, and each
operation to be performed at the optimum efficiency. It provides answers
to questions like what work is to be done, how it is to be done, where it is
to be done, and when it is to be done. More efficient routing system and
work scheduling were developed for effective planning of work.
4.Standardization and simplification: Under scientific management,
predetermined standards are laid down regarding the task, material, methods,
time, quality, cost, and working conditions.
5. Differential piece rate system: Stressing the need for scientific determination
of remuneration for workers, Taylor suggested that a direct link should be created
between remuneration and productivity for motivating workers. For this purpose,
he developed the differential piece rate system of wage payment. Under this
system two piece rates are laid down: one, low rate for those failing to achieve
the standard output and the second higher rate for those achieving or exceeding
the standard output. Suppose the two piece rates are Rs. 1 and Rs. 1.50
respectively. Standard daily output laid down through time and motion studies is
10 units. The daily wages of two workers A and B who produce 8 and 12 units will
be calculated as under:
•A's wages = 8 units × Re. 1 = Rs. 8
•B's wages = 12 units x Rs. 1.50 = Rs. 18
 Due to significant difference in wages, A and other inefficient workers will
be under pressure to reach the standard output. B and other efficient
workers will be encouraged to keep their output above standard. Differential
piece rate system is thus better than the straight piece rate system under
which the rate per piece is the same for all workers.

6. Functional foremanship: According

to Taylor, one supervisor cannot be an
expert in all aspects of work
supervision. He suggested the system
of functional foremanship in which
eight supervisors supervise a worker's
job. Four of them are concerned with
the planning of work in the factory
office and the other four are involved
in the execution of work at the shop
floor.
 MANAGEMENT
PRINCIPLES
1.Division work: The work of every person in the organization should be
limited as far as possible to the performance of a single leading function. This
helps to do more and better work with the same effort.
2.Authority and responsibility: Responsibility is a natural consequence of
and a corollary to authority. The two are co-extensive and, therefore, a parity
should be maintained between them. Authority is not to be conceived of apart
from responsibility. Wherever authority is exercised responsibility arises.
3.Discipline: It implies respect for rules and agreements designed to secure
obedience. It must prevail throughout an organization to ensure its smooth
functioning. Discipline requires clear and fair agreements, good supervision and
judicious application of penalties.
4.Unity of command: Every employee must receive orders and be accountable to only
one boss, It is necessary to avoid conflicting orders and to ensure order and stability in the
organization. As soon as two supervisors wield their authority over the same person,
uneasiness makes itself felt.
5.Unity of direction: There should be one head and one plan for a group of activities
having the same objective. This is essential to ensure unity and coordination in the
enterprise. Unity of command cannot exist without unity of direction but does not
necessarily flow from it. Unity of command is concerned with grouping of persons whereas
unity of direction relates to grouping of activities
6. Subordination of individual to general interests: Efforts should be made to
reconcile individual interests with common interests. When there is conflict between the
two, the interests of the organization should prevail over individual interests. This requires
continuous and exemplary supervision and fair agreements.
7.Remuneration of personnel: The amount of remuneration and the methods of
payment should be just and fair and should provide maximum possible satisfaction to both
employees and employers.
8. Centralization: According to Fayol, the question of centralization and decentralization
is a matter of finding the optimum degree for the particular concern. The degree of
concentration of authority should be based upon optimum utilization of all faculties of the
personnel. It should be determined on the basis of individual circumstances in each case
.,9 Scalar chain: Scalar chain refers to the chain of
superiors ranging from the ultimate authority to the
lowest level in the organization. It should be short
circuited and not carried to the extent it proves
detrimental to the organization. To prevent the scalar
chain bogging down action. Fayol gave the concept
of 'gangplank’
10. Order: This principle is concerned with the
arrangement of things and the placement of people.
In material order, there should be a place for
everything and everything should be in its proper
place. Similarly in social order, there should be an
appointed place for everyone and everyone should
be in his or her appointed place. This kind of order
requires precise knowledge of human requirements
and resources of the concern so that a proper
11.Equity: Equity implies that employees should be treated with justice and kindness.
Managers should be fair and impartial in their dealings with subordinates. They should adopt
a sympathetic and unbiased attitude towards workers. Equity helps to create cordial
relations between management and workers which are essential for the successful
functioning of every enterprise.
12. Stability of tenure of personnel: Employees cannot work efficiently unless job
security is assured to them. Time is required for an employee to get used to new work and
succeed in doing it well. An employee cannot render worthwhile service if he is removed
from the job before he gets accustomed to it. Therefore, management must strive to
minimize employee turnover.
13.Initiative: Employees at all levels should be given the opportunity to take initiative and
exercise judgement in the formulation and execution of plans. Initiative refers to the
freedom to think for oneself and use discretion in doing work. It develops the interest of
employees in their jobs and provides job satisfaction to them.
14. Esprit de corps: It implies unity of effort through harmony of interests. Fayol believed
that unity of command and oral communication are the most effective means for achieving
Esprit de corps.
•Fayol warned that these principles are flexible guidelines rather than hard and
fast laws. They should be used with discretion rather than blindly.
 03
NEO CLASSIC OR
BEHAVIOURAL APPROACH
•Classical approach led to more efficient forms of
organization and management. But it failed to
recognize the overwhelming role of people in
management. Jobs became narrow and workers began
to resist the formal and impersonal treatment
overlooking their social and psychological needs. This
resistance and the need to secure willing cooperation of
workers led to the development of neo-classical
approach.
Neo-classical approach may be analyzed in three parts, namely:
1. Hawthorne
Experiments
2. Human Relations
Movement

3. Behavioral Sciences
Thinking
 HAWTHORNE
EXPERIMENTS
George Elton Mayo, regarded as the father of the neo-classical approach, led the
Hawthorne Experiments (1924–1932) at Western Electric Company's Hawthorne
plant near Chicago. The key experiments and findings were:

1. Illumination Experiment: Examined the impact of lighting on productivity. Both

groups (constant and variable lighting) showed increased output, suggesting
factors beyond lighting influenced productivity.
2. 2. Relay Assembly Test Room: Tested six female workers under varying
working conditions (e.g., rest periods, informal supervision). Productivity rose,
even when conditions were reverted, highlight3. Mass Interview Program:
Found that allowing workers to freely express their opinions boosted morale
and productivity.
3. 4. Bank Wiring Observation Room: Observed a group of 14 workers whose
pay depended on group performance. Informal norms and social pressure
prevented output increases, showing the influence of group dynamics.Overall,
the experiments emphasized the importance of socio-psychological factors
and group behavior in productivity.
2. Relay assembly test room studies: These studies were conducted in three
different groups. The test group consisted of six female workers. Frequent changes
were made in working conditions such as shorter working hours, rest periods, hot
lunch, friendly and informal supervisors, free interaction among members of the
group, etc. Productivity of the group increased even when the improvements in
working conditions were withdrawn. It was concluded that socio-psychological
factors, e.g. special attention, recognition, sense of group pride and belonging
exercise a greater influence on productivity than working conditions
3. Mass interview programme: A large number of workers were interviewed to
judge their attitudes and opinions on the factors influencing productivity. It was
found that the opportunity to talk freely about things that are important to workers
had a positive effect on their morale and productivity.
4.Bank wiring observation room study: In this experiment, a group of fourteen
workers was put under close observation. The pay of every member was made
dependent on the performance of the group as a whole. It was found that the
informal group had its own norms of performance and various forms of social
 CONCLUSION
(i) A work group is not merely a techno-economic unit. It is also a social
system with a culture of its own.
(ii) Workers are not merely rational economic beings motivated simply by
money. They are also socio-psychological beings and respond to the total
work situation.
üi) Social and psychological factors exercise a greater influence on employee
behavior
and performance than physical conditions of work.
(iv) Workers act or react not as individuals but as members of a group. The
informal groups have their own norms and beliefs. These groups and their
leader exercise an overriding influence on the attitudes, behavior and
performance of individual employees.
(v) Workers respond to the total work situation. Their behavior and
performance are conditioned by factors inside and outside the workplace.
 HUMAN RELATIONSHIP
•Human relations school isAPPROACH
a socio-psychological approach to
management. It suggests that a business enterprise is a social
system in which group norms exercise significant influence on
the behavior and performance of individuals. Workers cannot
be motivated by economic rewards alone.
•They require social satisfaction at the workplace. Therefore,
managers should create such a climate in the organization
that workers can feel happy. Employee counselling,
participative decision-making, cordial supervision, job
enrichment and other techniques have been suggested for
keeping workers happy and satisfied. According to Keith Davis,
human relations is an area of management practice which is
concerned with the integration of people into a work situation
in a way that motivates them to work together productively,
cooperatively and with satisfaction and achieve organizational
goals.
 IDEA ON WHICH BASED
1. The individual: According to the human relations school, each person is
unique, He brings certain attitudes, beliefs, values, skills, etc. to the job
situation. Therefore, an individual is motivated by not only economic
factors but by several social and psychological factors.
2. The work group: Work is a social experience and most workers find
satisfaction in social or informal groups. The norms of such groups
determine to a great extent the attitudes and performance of workers.
Therefore, managers should maintain good interpersonal and inter-group
relations to maximize productivity.
3. The leader: As the leader of a work group, a supervisor/manager should
provide a pleasant work climate wherein employees are allowed to have a
say in the decision-making process. He can gain respect and obedience by
adjusting to various personalities and situations.
4. The work environment: A positive work environment enables employees
to satisfy their needs as well as to achieve organizational goals. Positive
work environment consists of clearly defined goals, performance linked
rewards, feedback on performance, participative decision-making,
interesting and growth oriented work, open communications,
 Contributions of
Human
Human relations school has a moralRelations Approach
justification. Employees are human
beings and they
are entitled to be treated with respect and dignity.
Human relations approach helps to satisfy the social and psychological needs
of employees. Such satisfaction is likely to improve productivity and reduce
costs. Sound human relations can result in the optimum utilization of
resources.
Human relations school highlights the 'people Side of organizations. It
therefore, avoids the imbalance caused by over-emphasis on technical and
administrative aspects.
A true concern for workers, (those vital machines) would yield rich dividends.
Human relations school focuses attention on interpersonal relations and
 BEHAVIOURAL SCIENCE
APPROACH
•Human relations movement focused on interpersonal relations and overlooked the wider subject
of organizational behaviour. Organizational behavior involves the study of attitudes, behaviour and
performance of individuals and groups in organizational setting. Behavioral approach includes the
issue of organizational behaviour. It is also known as human resource approach because it stresses
development of human beings for the benefit of both the individual and the organization.
•The main propositions of behavioral science approach are as follows :
1.An organization is a socio-technical system.
2.Individuals differ in terms of their attitudes, perceptions and value systems. Therefore, they
react differently to the same situation.
3.People working in an organization have their needs and goals which may differ from the
organization's needs and goals. Management should achieve fusion between organizational goals
and human needs.
4.A wide range of factors influence relations among people (interpersonal relations):
5.People's behaviour as individuals may be different from their behaviour as members of a group.
6.Persons working together in an organization form their own informal groups. Such groups have
their own norms, culture and communication systems.
7.Informal groups exercise a significant influence on the attitudes, behaviour and performance of
employees
 SYSTEM APPROACH
•Since 1950 researchers began to look at organizations from a
systems view point. In 1951 Wiener's pioneering work on cybernetics
developed concepts of systems control by information feedback. He
described an adaptive system as mainly dependent upon
measurement and correction through feedback. Later Ludwig Von
Bertalanffy and Kenneth Boulding evolved the General System Theory
(GST). This theory consists of general principles for understanding the
physical, mechanical, biological and social entities and the
relationship among them. A.K.
•Rice, E.L. Trist, D.S.Pough, Robert Katz, Kahn have made significant
contributions to the development of the systems approach.
 CONTRIBUTION
1.The systems approach examines interrelationship and interdependence
between different parts of an organization. It suggests balance between different
sub-systems so as to ensure the efficiency and growth of the system.
2.The systems approach calls attention to the dynamic and adaptive nature of
organizations. A change in environment calls for modification in the organization.
It acknowledges environmental influences which were overlooked in the earlier
approaches.
3.The systems approach represents a balanced thinking on organization and
management. It exerts managers to avoid analyzing problems in isolation and to
develop an integrated or holistic thinking in place of fragmented and piecemeal
approach.
4.The systems approach stresses the dynamic and multidimensional nature of
organizations. It provides a strong conceptual framework for meaningful analysis
and understanding of organizations.
 LIMITATIONS
1.Lack of Unified Theory: Systems approach does not offer a unified
theory which can be applied to all types of organisations.
2.Vague and Abstract : The systems approach is too abstract to be of
much use to practicing managers. It indicates inter-relationship and
interdependence between various parts of the organisation. But it fails to
spell out the precise relationship between different sub-systems.
3.Narrow View of Organisation Environment Interface : The systems
approach recognises interface between an organisation and its
environment. But it does not present a complete view of this interface.
4.Limited Application: The systems approach does not provide an action
framework applicable to all types of organisations. The systems approach is
often criticized as being too abstract and vague. It cannot directly and
easily be applied to practical problems. It does not offer specific tools and
techniques for the practicing executive.
 CONTINGENCY APPROACH
The contingency approach is a relatively
new approach to organization and
management. It is related to the systems
approach. The belief that organizations
are open systems widened the
perspective further leading to the
development of the contingency
approach. It is also known as the
situational approach. it was developed by
managers, consultants and researchers
who tried to apply the concepts of earlier
approaches to real life situations. They
found that the concepts and techniques
effective in one situation failed to work in
The contingency approach is based on the belief that there
is no one best way to tackle the problems of management.
The application of management principles and practices is
contingent upon the environment. There is no single best
way of managing applicable in all situations. The best
solution is the one that is responsive to the peculiarities of
the given situation. Significant differences exist between
one substation and others. Therefore, management should
deal with different situations in different ways.
Contingency approach rejects universality of management
concepts. It appeals to common sense. But it is much more
than common sense. It requires the ability to analyze and
diagnose a managerial situation correctly. It also requires
knowledge and understanding of different principles,
techniques and styles of management. Use of contingency
approach is not possible
without the ability to match the management knowledge
and skills to the demands of the given situation.
 PRACTICAL UTILITY OF
CONTINGENCY APPROACH

1. Contingency approach provides a clear view of the realities

of the managerial job.
2. Contingency approach has common sense value and wide-
ranging practical utility.
3. The contingency approach does not suggest that the
findings of earlier approaches are useless
4. The approach accepts that organizations and their
environment are too dynamic to be always effectively
managed in the same manner.
5. The contingency approach is more eclectic than the other
approaches.
CONTINGENCY APPROACH IS AN
IMPROVEMENT OVER THE SYSTEMS
APPROACH.
Systems approach only examines the relationship
between subsystems of the organisation. But the
contingency approach also examines the relationship
between the organisation and its environment. The
contingency approach appears to hold considerable
promise for the future development of management
 THANKS CREDITS
TO
1.MADHAV JAIN (194)
2.ANUSHKA GUPTA (195)
3.RAJ KISHAN (196)
4.HIMANSHU KUMAR (197)
5.DIVYANSHU KUMAR (198)
6.KAPIL YADAV (199)
7.GAURAV MEHROTRA (200)
8.PRAKUL JAIN (201)
9.PRACHI KIRTI (202)