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Management processesNature of Management ProcessManagement process can be treated as dynamic in which events and interrelationships must be seen as dynamic flexible and continuous and must be considered as a whole Thus management as a process involves a number of activities and assumes that the totality of what managers do can be divided into a set of interrelated activities What is a Manager Someone whose primary responsibility is to carry out the management process Someone who plans and makes decisions organizes leads and controls human financial physical and information resources
Kinds of Managers by Level and AreaKinds of Managers by Level Top Managers The relatively small group of executives who manage the organizationrsquos overall goals strategy and operating policies Middle Managers Largest group of managers in organizations Implement top managementrsquos policies and plans Supervise and coordinate lower-level managersrsquo activities First-Line Managers Managers who supervise and coordinate the activities of operating employeesKinds of Managers by Area Marketing Managers Work in areas related to getting consumers and clients to buy the organizationrsquos products or services Financial Managers Deal primarily with an organizationrsquos financial resources Operations Managers Concerned with creating and managing the systems that create organizationrsquos products and servicesKinds of Managers by Area (contrsquod) Human Resource Managers Involved in human resource processes Planning recruiting and selection training and development designing compensation and benefit systems formulating performance appraisal systems Administrative Managers Serve as generalists in functional areas and are not associated with any particular management specialty Other Kinds of Managers Assigned as specialists in positions directly related to the needs of the organizationManagement in OrganizationsFigure 12The Management Process
Skills and the ManagerFundamental Management Skills Technical Skills necessary to accomplish or understand the specific kind of work being done in an organization Interpersonal The ability to communicate with understand and motivate both individuals and groups Conceptual The managerrsquos ability to think in the abstract Diagnostic The managerrsquos ability to visualize the most appropriate response to a situationFundamental Management Skills (contrsquod) Communication The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others Decision-Making The managerrsquos ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities Time-Management The managerrsquos ability to prioritize work to work efficiently and to delegate appropriatelyManagement Science or Art The Science of Management Assumes that problems can be approached using rational logical objective and systematic ways Requires technical diagnostic and decision-making skills and techniques to solve problems The Art of Management Decisions are made and problems solved using a blend of intuition experience instinct and personal insights Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activitiesSources of Management SkillsManagement Roles Interpersonal roles Informational roles Decisional rolesEvolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960
Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquosScientific Management-Frederick Taylor
Features of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution
Administrative Management-Henri Fayol
Principles1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their part in that plan6 Subordination of individual interests-- When at work only work things should be pursued or thought about There should be constant vigilance and supervision7 Remuneration-- Employees receive fair payment for services not what the company can get away withAdministrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions are made from the top9 Scalar chain (line of authority)-- Formal chain of command running from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it happen14 Esprit de corpsndash Union is strength Harmony cohesion among personnel Manager should encourage espirit de corps among workers
Bureaucracy- WeberFeatures of Bureaucracy Administrative Class- Bureaucratic organizations generally have administrative class responsible for maintaining coordinative activities of the members Hierarchy-There are hierarchy of positions in the organization Division of Work- Work of the organization is divided on the basis of specialization to take the advantages of division of labour Official Rules- Administrative process is continuous and governed by official rules Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments Official Records- Organization is characterized by maintenance of proper official records
Human Relations Approach- George Elton Mayo
The study continued for an extended period of time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicagobull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test RoomPhase-I Illumination Experiments
Phase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers hadto conclude that illumination affected production only marginally and there must besome factor which produced this result
Phase-II Relay Assembly Test Room
In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the group
to observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion
Phase III Interviewing Program
From the Relay Assembly Test Room the researchers for the first time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his moralePhase IV Bank Wiring Test Room
It had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the groupThus the Hawthorne study pointed out the following
The business organization is essentially a socio-technical entity where the process of social interactions among its members is also extremely important 1048707 There is not necessarily a direct correspondence between working conditions and high production 1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders
1048707 The informal groups and not the individuals are the units of analysis in a group
Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to communicate they are willing to contribute and they attempt to accomplish a common purpose Formal and Informal Organizations Elements of Organization-specialization incentives power and logical decision making Authority- Authority acceptance-understand the communication not inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational efforts to satisfy individuals
Decision Theory Approach- Simon Concept of organization- To analyze an organization we should find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough decisions Administrative Man- Simplifies things takes decisions by simple rules likes tricks of trade or habit etc Organization Communication- More importance to informal communication
Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities Organization Structure- organized least no of managerial levels catch them young Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting the changes in the organizations
Skills and the ManagerFundamental Management Skills Technical Skills necessary to accomplish or understand the specific kind of work being done in an organization Interpersonal The ability to communicate with understand and motivate both individuals and groups Conceptual The managerrsquos ability to think in the abstract Diagnostic The managerrsquos ability to visualize the most appropriate response to a situationFundamental Management Skills (contrsquod) Communication The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others Decision-Making The managerrsquos ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities Time-Management The managerrsquos ability to prioritize work to work efficiently and to delegate appropriatelyManagement Science or Art The Science of Management Assumes that problems can be approached using rational logical objective and systematic ways Requires technical diagnostic and decision-making skills and techniques to solve problems The Art of Management Decisions are made and problems solved using a blend of intuition experience instinct and personal insights Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activitiesSources of Management SkillsManagement Roles Interpersonal roles Informational roles Decisional rolesEvolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960
Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquosScientific Management-Frederick Taylor
Features of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution
Administrative Management-Henri Fayol
Principles1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their part in that plan6 Subordination of individual interests-- When at work only work things should be pursued or thought about There should be constant vigilance and supervision7 Remuneration-- Employees receive fair payment for services not what the company can get away withAdministrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions are made from the top9 Scalar chain (line of authority)-- Formal chain of command running from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it happen14 Esprit de corpsndash Union is strength Harmony cohesion among personnel Manager should encourage espirit de corps among workers
Bureaucracy- WeberFeatures of Bureaucracy Administrative Class- Bureaucratic organizations generally have administrative class responsible for maintaining coordinative activities of the members Hierarchy-There are hierarchy of positions in the organization Division of Work- Work of the organization is divided on the basis of specialization to take the advantages of division of labour Official Rules- Administrative process is continuous and governed by official rules Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments Official Records- Organization is characterized by maintenance of proper official records
Human Relations Approach- George Elton Mayo
The study continued for an extended period of time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicagobull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test RoomPhase-I Illumination Experiments
Phase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers hadto conclude that illumination affected production only marginally and there must besome factor which produced this result
Phase-II Relay Assembly Test Room
In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the group
to observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion
Phase III Interviewing Program
From the Relay Assembly Test Room the researchers for the first time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his moralePhase IV Bank Wiring Test Room
It had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the groupThus the Hawthorne study pointed out the following
The business organization is essentially a socio-technical entity where the process of social interactions among its members is also extremely important 1048707 There is not necessarily a direct correspondence between working conditions and high production 1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders
1048707 The informal groups and not the individuals are the units of analysis in a group
Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to communicate they are willing to contribute and they attempt to accomplish a common purpose Formal and Informal Organizations Elements of Organization-specialization incentives power and logical decision making Authority- Authority acceptance-understand the communication not inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational efforts to satisfy individuals
Decision Theory Approach- Simon Concept of organization- To analyze an organization we should find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough decisions Administrative Man- Simplifies things takes decisions by simple rules likes tricks of trade or habit etc Organization Communication- More importance to informal communication
Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities Organization Structure- organized least no of managerial levels catch them young Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting the changes in the organizations
Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquosScientific Management-Frederick Taylor
Features of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution
Administrative Management-Henri Fayol
Principles1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their part in that plan6 Subordination of individual interests-- When at work only work things should be pursued or thought about There should be constant vigilance and supervision7 Remuneration-- Employees receive fair payment for services not what the company can get away withAdministrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions are made from the top9 Scalar chain (line of authority)-- Formal chain of command running from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it happen14 Esprit de corpsndash Union is strength Harmony cohesion among personnel Manager should encourage espirit de corps among workers
Bureaucracy- WeberFeatures of Bureaucracy Administrative Class- Bureaucratic organizations generally have administrative class responsible for maintaining coordinative activities of the members Hierarchy-There are hierarchy of positions in the organization Division of Work- Work of the organization is divided on the basis of specialization to take the advantages of division of labour Official Rules- Administrative process is continuous and governed by official rules Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments Official Records- Organization is characterized by maintenance of proper official records
Human Relations Approach- George Elton Mayo
The study continued for an extended period of time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicagobull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test RoomPhase-I Illumination Experiments
Phase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers hadto conclude that illumination affected production only marginally and there must besome factor which produced this result
Phase-II Relay Assembly Test Room
In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the group
to observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion
Phase III Interviewing Program
From the Relay Assembly Test Room the researchers for the first time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his moralePhase IV Bank Wiring Test Room
It had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the groupThus the Hawthorne study pointed out the following
The business organization is essentially a socio-technical entity where the process of social interactions among its members is also extremely important 1048707 There is not necessarily a direct correspondence between working conditions and high production 1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders
1048707 The informal groups and not the individuals are the units of analysis in a group
Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to communicate they are willing to contribute and they attempt to accomplish a common purpose Formal and Informal Organizations Elements of Organization-specialization incentives power and logical decision making Authority- Authority acceptance-understand the communication not inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational efforts to satisfy individuals
Decision Theory Approach- Simon Concept of organization- To analyze an organization we should find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough decisions Administrative Man- Simplifies things takes decisions by simple rules likes tricks of trade or habit etc Organization Communication- More importance to informal communication
Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities Organization Structure- organized least no of managerial levels catch them young Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting the changes in the organizations
Bureaucracy- WeberFeatures of Bureaucracy Administrative Class- Bureaucratic organizations generally have administrative class responsible for maintaining coordinative activities of the members Hierarchy-There are hierarchy of positions in the organization Division of Work- Work of the organization is divided on the basis of specialization to take the advantages of division of labour Official Rules- Administrative process is continuous and governed by official rules Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement emotions and sentiments Official Records- Organization is characterized by maintenance of proper official records
Human Relations Approach- George Elton Mayo
The study continued for an extended period of time and had gone through various phases which is briefly described here Hawthorne Experiments- General Electric Company Chicagobull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test RoomPhase-I Illumination Experiments
Phase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers hadto conclude that illumination affected production only marginally and there must besome factor which produced this result
Phase-II Relay Assembly Test Room
In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the group
to observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion
Phase III Interviewing Program
From the Relay Assembly Test Room the researchers for the first time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his moralePhase IV Bank Wiring Test Room
It had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the groupThus the Hawthorne study pointed out the following
The business organization is essentially a socio-technical entity where the process of social interactions among its members is also extremely important 1048707 There is not necessarily a direct correspondence between working conditions and high production 1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders
1048707 The informal groups and not the individuals are the units of analysis in a group
Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to communicate they are willing to contribute and they attempt to accomplish a common purpose Formal and Informal Organizations Elements of Organization-specialization incentives power and logical decision making Authority- Authority acceptance-understand the communication not inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational efforts to satisfy individuals
Decision Theory Approach- Simon Concept of organization- To analyze an organization we should find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough decisions Administrative Man- Simplifies things takes decisions by simple rules likes tricks of trade or habit etc Organization Communication- More importance to informal communication
Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities Organization Structure- organized least no of managerial levels catch them young Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting the changes in the organizations
to observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed thisphenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion
Phase III Interviewing Program
From the Relay Assembly Test Room the researchers for the first time became aware about the existence of informal groups and the importance of social context of the organizational life To probe deeper into this area in order to identify the factors responsible for human behavior they interviewed more than 20000 employees The direct questioning was later replaced by non-directive type of interviewing The study revealed that the workersrsquo social relationship inside the organizations has a significant influence on their attitude and behavior It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his moralePhase IV Bank Wiring Test Room
It had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the groupThus the Hawthorne study pointed out the following
The business organization is essentially a socio-technical entity where the process of social interactions among its members is also extremely important 1048707 There is not necessarily a direct correspondence between working conditions and high production 1048707 Economic motives are not the only motive for an employee Onersquos social needs can also significantly affect their behavior Employee-centered leaders always tend to be more effective than the task-oriented leaders
1048707 The informal groups and not the individuals are the units of analysis in a group
Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to communicate they are willing to contribute and they attempt to accomplish a common purpose Formal and Informal Organizations Elements of Organization-specialization incentives power and logical decision making Authority- Authority acceptance-understand the communication not inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational efforts to satisfy individuals
Decision Theory Approach- Simon Concept of organization- To analyze an organization we should find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough decisions Administrative Man- Simplifies things takes decisions by simple rules likes tricks of trade or habit etc Organization Communication- More importance to informal communication
Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities Organization Structure- organized least no of managerial levels catch them young Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting the changes in the organizations
1048707 The informal groups and not the individuals are the units of analysis in a group
Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization- Organizations exists when persons are able to communicate they are willing to contribute and they attempt to accomplish a common purpose Formal and Informal Organizations Elements of Organization-specialization incentives power and logical decision making Authority- Authority acceptance-understand the communication not inconsistent with the organizational purpose not incompatible with personal goal mental and physical compliance Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational efforts to satisfy individuals
Decision Theory Approach- Simon Concept of organization- To analyze an organization we should find out where and by whom decisions are made Decision making- Intelligent activity phase of inventing developing and analyzing possible courses of action Bounded Rationality- Managers are satisfied with good enough decisions Administrative Man- Simplifies things takes decisions by simple rules likes tricks of trade or habit etc Organization Communication- More importance to informal communication
Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation Management Functions- Three basic functions of a manager are to make its contributions for- specific purpose and mission of the institution making work productive and the worker achieving managing social impacts and social responsibilities Organization Structure- organized least no of managerial levels catch them young Federalism- Centralized control in decentralized structure Management by Objectives (MBO)-concept introduced in 1954 Organizational Changes- Dynamic organizations for accepting the changes in the organizations
