1. Classical Schools of Thought: Scientific Management
Classical Schools of Thought: Scientific Management
Intro
Evolved in the late 19th & early 20th century
Perspective emerges from the industrial revolution & centers on theories of efficiency
Towards the end of 19th century, factory production became pervasive, time for large scale organizations & production
People have been looking ways to increase productivity
During this period, work was performed by skilled craftsmen who had learned their jobs in lengthy apprenticeships
F.W. Taylor
In 1911, Frederick Winslow Taylor published his work, The Principles of Scientific Management
With a background in Mechanical Engineering, Taylor had emphasized on ‘Efficiency’
Advanced his career at a US steel manufacturer, designed workplace experiments
Explained how application of scientific method to the management of workers could improve productivity
Converted skilled crafts into a series of simplified jobs
Scientific Management

2. Classical Schools of Thought: Scientific Management
Classical Schools of Thought: Scientific Management
Soldiering
Taylor observed the phenomena of workers purposely operating below their capacity;
Universally held belief among workers that of they became more productive, fewer of them would be needed & jobs would be eliminated
Non- incentive wage systems, encouraged lower productivity. Employee received the same wages irrespective of how much they produced
A fear that faster pace would become the new standard . If employees were paid by the quantity they produce, they fear that management would decrease their per- unit pay, if the quantity increases
Workers relied on rule of thumb method rather than on optimal work
To counter soldiering & to improve efficiency, Taylor began to conduct experiments to determine the best level of performance for certain jobs, and what was necessary to achieve this performance.

3. Time Studies/ Time & Motion Studies
Classical Schools of Thought: Scientific Management
Time Studies/ Time & Motion Studies
Taylor argued that most basic task could be planned in a way that dramatically could improve productivity
Initiative & incentive method offered an incentive to increase productivity but placed the responsibility on the worker to figure out how to do it
Taylor performed experiments that he called ‘Time Studies’
Pig Iron
If workers were moving 12.5 tons of pig iron everyday, they could be incentivized to move 47.5 tons per day but that would depend on their own wits. They would get exhausted in few hours & fail to reach the goal
Conducting experiments to determine the amount of resting that was necessary, using stop watch
Worker’s managers could determine the optimal timing of lifting & resting, so that the worker could move 47.5 tons per day
Not all workers were physically capable of moving 47.5 tons of pig iron per day. Only 1/8th of workers had the physical capabilities to do the same.
This example suggests that ‘workers should be selected according to how well they are suited for a particular job’.

4. Classical Schools of Thought: Scientific Management
Classical Schools of Thought: Scientific Management
Science of Shoveling
The optimal weight that a worker should shovel is 21 pounds.
The shovel should be sized to a weight of 21 pounds, so that workers could easily lift the iron
Factory provided the workers with optimal shovels
The result was a three fold increase in productivity & workers were rewarded with pay increases.
Taylor believed in ‘A fair Day’s Pay for a Fair Day’s Work’
Taylor’s Principles of Scientific Management
After several years of experiments, Taylor proposed four principles of Scientific Management;
Replace rule of thumb method with methods based on a scientific study of tasks
Scientifically select, train & develop each worker rather than passively leaving them to train themselves
Cooperate with the workers to ensure that the scientifically developed methods are being followed
Divide work nearly equally between managers & workers, so that the managers apply scientific management principles to planning the work & the workers actually perform the tasks

5. Classical Schools of Thought: Scientific Management
Classical Schools of Thought: Scientific Management
Critiques of Scientific Management
Increased the monotony of work
Core job dimensions of;
- Skill variety
- Task identity
- Task significance
- Autonomy
- Feedback
All were missing from the picture of scientific management - Use of stop watches were not accepted by workers in many US factories. It led to a strike in one of the factories where ‘Taylorism’ was practiced.
- Complaints were registered that Scientific Management was dehumanizing

6. Classical Schools of Thought: Gantt Chart
Is a bar chart
Developed by Henry Gantt
In the year 1910s
Illustrates project schedule (start date, finish date, activities involved in the project)
Measures planned and completed work along each stage of production, based on time instead of quantity, volume, or weight
What
How
Schedule for Blood Donation Camp in the Campus on December 25, 2014
S.No
Activity
Dec-14
I week
II week
III week
IV week 1
Venue 2
Logistics 3
Marketing 4
Doctors 5
Drinking Water Area 6
Ambulance

7. Classical Schools of Thought: Bureaucratic Management
Classical Schools of Thought: Bureaucratic Management
Background
- Max Weber disliked that many European organizations were managed on a “personal” family‐like basis and that employees were loyal to individual supervisors rather than to the organization
- He believed that organizations should be managed impersonally having
a formal organizational structure, where specific rules were followed
Bureaucracy
1. A well‐defined hierarchy:
- Structured positions
- Higher positions to supervise & control lower positions
- Clear chain of command
2. Division of labor and specialization:
- Specialized roles & responsibilities
- Expertise in any particular task
3. Rules and regulations:
- SOP (Standard Operating Procedures)
4. Impersonal relationships between managers and employees:
- No favoritism and personal prejudice to influence decisions making
5. Competence:
- Competence should be the basis for all decisions made in hiring, job assignments, and promotions
6. Records:
- Maintenance of files regarding all activities

8. Classical Schools of Thought: Bureaucratic Management
Classical Schools of Thought: Bureaucratic Management
Traditional Authority
Ability & right to rule is passed down
Tends to be irrational and inconsistent
Maintains Status Quo
Forms of Authority
Charismatic Authority
A leader whose mission and vision inspire others
A head of a new social movement
Example: Martin Luther King, Mahatma Gandhi
Legal rational Authority
Empowered by a formalistic belief in the content of the law
Obedience is given to a set of rational principles
Example: Bureaucracy, Modern States

9. Classical Schools of Thought: Administrative Management
Classical Schools of Thought: Administrative Management
Background
Henri Fayol was born in Istanbul in 1841
When he was 19, he began working as an engineer at a large mining company in France.
He eventually became the director, at a time when the mining company employed more than 1,000 people
Fayol developed 14 most important principles of management Essentially, these explained how managers should organize and interact with staff
Fayol's "14 Principles" was one of the earliest theories of management to be created
Fayol's 14 Principles of Management
Division of Work – When employees are specialized, output can increase because they become increasingly skilled and efficient
Authority – Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility
Discipline – Discipline must be upheld in organizations, but methods for doing so can vary. Penalties should be applied, if not followed.
Unity of Command – Employees should have only one direct supervisor
Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated

10. Classical Schools of Thought: Administrative Management
Classical Schools of Thought: Administrative Management
Fayol's 14 Principles of Management
Subordination of Individual Interests to the General Interest – The interests of one employee should not be allowed to become more important than those of the group. This includes managers
Remuneration – Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation
Centralization – This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance
Scalar Chain – Employees should be aware of where they stand in the organization's hierarchy, or chain of command
Order – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place
Equity – Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate
Stability of Tenure of Personnel – Managers should strive to minimize employee turnover. Personnel planning should be a priority
Initiative – Employees should be given the necessary level of freedom to create and carry out plans
Esprit de Corps – Organizations should strive to promote team spirit and unity

11. Classical Schools of Thought: Administrative Management
Classical Schools of Thought: Administrative Management
Fayol's 6 Functions of Management
Forecasting
Planning: What, When, Why, Where, Who, How
Organizing: raw materials, tools, capital and human resources. Identifying responsibilities, grouping them into departments or divisions, and specifying organizational relationships
Commanding: Managers need to implement the plan. They must have an understanding of the strengths and weaknesses of their personnel. Leading people in a manner that achieves the goals of the organization requires proper allocation of resources and an effective support system.
Coordinating: to harmonize all the activities to facilitate organizational success. Communication is the prime coordinating mechanism
Controlling: Monitoring function that evaluates quality in all areas . Ensuring high-quality performance and satisfactory results while maintaining an orderly and problem-free environment

12. Behavioral Perspective: Human Relations Approach: Elton Mayo
Behavioral Perspective: Human Relations Approach: Elton Mayo
Background
- In the early 1920s, a shift began towards human side & social needs of the employees
- Neo classical theories answered questions related to the best way to motivate, structure, and support employees within the organization
- Classical theories created an attitude among managers that employees were nothing more than an accessory to a machine
- It was unrealistic to expect standardization among emotional beings
Hawthorne Studies: Conclusions
Workers' attitudes are associated with productivity
Workplace is a social system and informal group’s influence could exert a powerful effect on individual behavior
Style of supervision is an important factor in increasing workers' job satisfaction
Began in 1924 till 1930s with the workers at the Hawthorne plant of the Western Electric Company - Elton Mayo & Roethlisberger are the main names associated with it
The studies originally looked into whether workers were more responsive and worked more efficiently under certain environmental conditions, such as improved lighting
Studies found that workers were more responsive to social factors; such as people they worked with in a team, the amount of interest their managers had in their work

13. Behavioral Perspective: Mary Parker Follett
Behavioral Perspective: Mary Parker Follett
Mary Parker Follett
Power: “Power Over” & “Power With”, differentiate coercive power from participative decision making
True leaders create group power, rather than expressing personal power
Conflict resolution through Integration

14. Behavioral Perspective: Chester Barnard
Behavioral Perspective: Chester Barnard
Acceptance Theory to Authority
Manager's authority rests on workers' acceptance of his right to give orders and to expect compliance
There are a reasons for this expectation:
Workers will be rewarded for compliance
There will be discipline for non-compliance
Workers respect the manager for his experience
Effective & Efficient Organizations: When organizations meet their goals on time, its effective. Efficient means the degree to which the organization can satisfy the motives of its employees
Informal & Formal Organizations
Formal organizations operate under a set of rules and policies designed to carry out the organizational purpose
Organizations are made up of groups of individual workers. Naturally, these individual workers form informal social groups that become the informal organization. The informal organization exists within a larger formal organization

15. Behavioral Perspective: Hierarchy of Needs: Abraham Maslow
Behavioral Perspective: Hierarchy of Needs: Abraham Maslow
Self-Actualization needs- realizing personal potential, self-fulfillment, seeking personal growth and peak experiences
Esteem needs- achievement, mastery, independence, status, dominance, prestige, self-respect, respect from others
Social Needs/ Love and belongingness needs- friendship, intimacy, affection and love, from work group, family, friends, romantic relationships
Safety needs- protection from elements, security, order, law, stability, freedom from fear
Biological and Physiological needs- air, food, drink, shelter, warmth, sleep
Reputation: how other people see them, fish for compliments
What we think of ourselves, Self confidence we have, Internal environment, 50% of people are satisfying our internal needs
Basic level of survival

16. Behavioral Perspective: Theory X-Y: Douglas McGregor
Behavioral Perspective: Theory X-Y: Douglas McGregor
Theory X Assumptions
- The average person dislikes work and will avoid it as much as one could
- Most people must be forced with the threat of punishment to work towards organizational objectives
The average people prefers to be directed; dislikes responsibility
Wants security above all else
Theory X managers, do not give their staff the opportunity to explore so that they behave in an expected fashion
Theory Y Assumptions
Control & punishments are not the only ways to make people work
Man will direct himself if he is committed to the aims of the organization
If a job is satisfying, then the result will be commitment to the organization
The average man learns under proper conditions, to accept & carry out responsibility
Imagination & creativity can be used to solve large number of problems

17. Structure of an Organization as Per Systems Theory
Systems Theory
What
Systems theory (new way of conceptualizing and studying
organizations) was proposed in the 1940's by the biologist Ludwig von Bertalanffy
Real systems are open to, and interact with, their environments
There happens continual evolution
Rather than reducing an entity (e.g. the human body) to the properties of its parts
Systems theory focuses on the arrangement of and relations between the parts which connect them into a whole (holism)
Systems concepts include: system-environment boundary, input, output, process, state, hierarchy, goal-directedness, and information
Process
Input
Resources(Goods,Funds, People)
Services(Financialconsulting, Legal)
Output
Systems return product to the environment
Feedback
Positive
Negative
Environment
Synergy
Interdependence
Interconnection
- within the org.
- B/w the org.- env.
- Org. as organism
Structure of an Organization as Per Systems Theory
Explanation

18. Environmental Interaction
Systems Theory
Properties of System
Environmental Interaction
Open system’s interaction with the outside environment
Parts that make up a system are interrelated
Synergy
- When all organizational subsystems work together making the whole greater than
the sum of it’s parts
Entropy
- The tendency for systems to decay over time
Differentiation
Classical Theory
Worker as a tool for improving efficiency
Not applicable to tasks that are not simple & homogeneous
Increased Labor- Management conflict & strengthening of labor union
Humanistic Theory
Manipulating people to comply with management directives, instead of understanding human behavior & mankind desirable changes in the org.
Overemphasized human needs, & not on org. tasks & process
Systems Theory
Provides an analytical framework for viewing an org. in general (organism)
- Recognizes;
Interdependence of personnel
Impact of environment on organizational structure and function
Affect of outside stakeholders on the organization

19. Characteristics of Organization
Systems Theory
Role of Communication:
- Inter communication: exchange information b/w organization & environment
- Intra communication: exchange information within various systems
Types of Subsystems:
- Production (technical) Subsystems - concerned with outputs, eg; assembly line
- Supportive Subsystems - ensure production inputs are available, eg; import raw material, Procurement
- Maintenance Subsystems - social relations in the system, eg; HR
- Adaptive Subsystems - monitor the environment and generate responses, eg; PR
- Managerial Subsystems - coordinate, adjust, control, and direct
subsystems, eg; Senior Management
Boundaries:
- Physical Boundary - prevents access (security system)
- Linguistic Boundary - specialized language (jargon)
- Systemic Boundary - rules that regulate interaction (titles)
- Psychological Boundary - restricts communication (stereotypes, prejudices)
Characteristics of Organization

20. Contingency Approach
Research conducted in the 1960s and 1970s focused on situational factors that affected the appropriate structure of organizations and the appropriate leadership styles for different situations - There is no one best way to manage
To be effective, planning, organizing, leading, and controlling must be tailored to the particular circumstances faced by an organization
Stable Environment: Centralization, formalization, standardization, and
specialization
Paul Lawrence and Jay Lorsch- suggest that organizational units operating in differing environments develop different internal unit characteristics, and that the greater the internal differences, the
greater the need for coordination between units
- Joan Woodward- financially successful manufacturing organizations with different types of work technologies;
1. unit or small batch
2. large-batch or mass-production
3. continuous-process
differed in the number of management levels, span of management, and the degree of worker specialization
Contingency Approach

21. Contingency Perspective & Leadership
Contingency Approach
Organizational Size- Small organizations can behave informally while larger organizations tend to become more formalized.
Small Organization: owner of a may directly control most things
Large organizations: complex and indirect control mechanisms, specialized staff, units, and jobs.
Contingency Approach
Contingency Perspective & Leadership
Fred Fiedler, in the 1960s and 1970s, was an early pioneer in this area
Task-oriented or relationship oriented leadership
Fiedler believed that leadership style is fixed, and it can be measured using a scale he developed called Least-Preferred Co-Worker
The scale asks you to think about the person who you've least enjoyed/ most enjoyed working with
The model says that task-oriented leaders usually view their LPCs more negatively, resulting in a lower score. He said that low LPCs are very effective at completing tasks. They're quick to organize a group to get tasks and projects done. Relationship-building is a low priority.
However, relationship-oriented leaders usually view their LPCs more positively, giving them a higher score. These are high-LPC leaders. High LPCs focus more on personal connections, and they're good at avoiding and managing conflict. They're better able to make complex decisions.

22. Total Quality Management
Total Quality Management
Total Quality Management (TQM) is a management approach that originated in the 1950s & gained momentum in 1980s
All members of an organization participate in improving processes, products, services, and the culture in which they work
‘Customer Satisfaction’ is the end result
Contingency Approach
Customer Satisfaction
Employee Involvement: Styles of Leadership, Employee relating to co. vision & mission, flow of communication, proper environment to work,
self managed work teams
Process centered
Integrated systems: horizontal processes interconnected. Eg; HR process of ‘PMS’- Individual Goal Setting – Manager Goal Setting – Mid year review – Departmental Discussion – Calibration Meeting (HR) – Final review
Strategic and systematic approach: To achieving an organization’s
vision, mission, and goals, the formulation of a strategic plan that integrates quality as a core component
Continual Improvement
Fact based decision making
Communication
Elements of TQM

23. Total Quality Management
Total Quality Management
- Create loyalty of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs
- Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change
- Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product
- Move towards a single supplier for any one item, on a long term relationship of loyalty & trust
Improve constantly the system of production & service to improve quality & productivity
Institute training on the job
Institute Leadership. The aim of leadership should be to help people &
gadgets to do a better job
Drive out fear. So that everyone can work effectively for the company
Break down barriers between department. People in research, design,
production must work as a team, to foresee problems
- Eliminate work standards (quotas)/ Eliminate management by objectives (numbers, numerical goals). Substitute leadership for both
14 Principles of TQM By W. Edward Deming

24. Total Quality Management
Total Quality Management
The responsibility of workers must be changed from number to quality
Institute a vigorous program of education & self improvement
Transformation is everybody’s job
14 Principles of TQM By W. Edward Deming

25. Theory Z: William Ouchi
Theory Z: William Ouchi
Back in the '70s and '80s, Japanese organizations were arguably the
most productive and efficient in the world
The secret to their success was how they were managing their people – Japanese employees were engaged, empowered, and highly productive
Ouchi first wrote about Theory Z in his 1981 book, "Theory Z: How American Management Can Meet the Japanese Challenge." He created the theory after conducting research designed to help American
companies compete with Japanese businesses
Background
- A Strong Company Philosophy and Culture: The company philosophy and culture needs to be understood and embodied by all employees, and employees need to believe in the work they're doing
- Long-Term Staff Development and Employment: The organization and management team has measures and programs in place to develop employees. Employment is usually long-term, and promotion is steady and measured. This leads to loyalty from team members.
- Consensus in Decisions: Employees are encouraged and expected to take part in organizational decisions.
- Generalist Employees: Because employees have a greater responsibility in making decisions, and understand all aspects of the organization, they should be "generalists." However, employees are still expected to have specialized career responsibilities.
Theory Z

26. Theory Z: William Ouchi
Theory Z: William Ouchi
Theory Z
- Concern for the Happiness and Well-Being of Workers: The organization shows sincere concern for the health and happiness of its employees, and for their families. It puts measures and programs in place to help foster this happiness and well-being
- Informal Control with Formalized Measures: Employees are empowered to perform tasks the way they see fit, and management is quite "hands off." However, there should be formalized measures in place to assess work quality and performance
- Individual Responsibility: The organization recognizes the contributions of individuals, but always within the context of the team as a whole

27. Unfreeze – Change – Free: Kurt Lewin
Unfreeze – Change – Free: Kurt Lewin
Kurt Lewin
Kurt Lewin emigrated from Germany to America during the 1930's
Recognized as the "founder of social psychology”
Highlights his interest in the human aspect of change, factors that
influence people to change
Details
Stage 1: Unfreeze
This stage is about getting ready to change
It involves getting to a point of understanding that change is necessary
Force Field Analysis: Change is all about weighing up the 'pro's' and 'con's' and deciding if the 'pro's' outnumber the 'con's' before you take any action
If there are more ‘cons’ to change than the motivation to change would be low
This first 'Unfreezing' stage involves moving ourselves, or a department, or an entire business towards motivation for change
Stage 2: Change
Change is not an event but a process (transition- the inner movement or journey we make in reaction to a change)
People are 'unfrozen' and moving towards a new way of being
Hardest stage, as people are unsure or fearful
Support is really important in the form of training, coaching, and expecting mistakes as part of the process
Communication is an important aspect to keep people together

28. Unfreeze – Change – Free: Kurt Lewin
Unfreeze – Change – Free: Kurt Lewin
Details
Stage 3: freeze
This stage is about establishing stability once the changes have been made
The changes are accepted and become the new norm
People form new relationships and become comfortable with their routines

29. http://kalyan-city. blogspot
MBO: Peter Drucker
MBO
The genesis of MBO is attributed to Peter Drucker who has explained it in his book 'The Practice of Management‘ in 1954
Objectives should not be imposed on subordinates but should be decided collectively by a concerned with the management
It is a demanding and rewarding style of management
MBO is based on the assumption that people perform better when they know what is expected of them and can relate their personal goals
to organizational objectives
It is a result-oriented philosophy and offers many advantages such as employee motivation, high morale, effective and purposeful leadership and clear objectives before all concerned persons
MBO involves the establishment of goals by managers and their
subordinates acting together, specifying responsibilities and assigning authority for achieving the goals and finally constant monitoring of
performance

30. Cognitive Dissonance: Leon Festinger
Cognitive Dissonance: Leon Festinger
Details
Festinger's (1957) cognitive dissonance theory suggests that we have an inner drive to hold all our attitudes and beliefs in harmony and avoid disharmony (or dissonance)
According to Festinger, we hold many cognitions about the world and ourselves; when they clash, a discrepancy is evoked, resulting in a state of tension known as cognitive dissonance
- The situation can be divided into three main areas:
- Forced compliance behavior
- Decision-making
- Effort
Dissonance can be reduced in one of three ways:
- Change one or more of the attitudes
- Acquire new information
- Reduce the importance of the cognitions

31. Leadership Pattern: Robert Tannenbaum & Warren H. Schmidt
Leadership Pattern: Robert Tannenbaum & Warren H. Schmidt
Details
How to Choose a Leadership Pattern” describes ”democratic management” and devises a leadership continuum ranging from authoritarian to democratic (1958)
Manager makes decision & announces it
Manager sells discussion
Manager presents decision & invites questions
Manager presents tentative decisions subject to change
Manager presents problem, gets suggestions, makes decision
Manager defines limits, asks group to make decision
Manager permits subordinates to function within limits defined by superior
Use of authority by the manager
Area of freedom for subordinates
Boss centered Leadership
Subordinate centered Leadership

32. Transactional Analysis: Eric Berne
Transactional Analysis: Eric Berne
Transactional Analysis
Eric Berne, in his book Games People Play (1964), identified three ego states for studying the psychology of human relationships
Transactional Analysis is the method for studying interactions between individuals
Ego State
A consistent pattern of feeling and experience directly related to a corresponding consistent pattern of behavior
Berne defined the three ego states as: Parent, Adult, and Child
Parent
Represents a massive collection of recordings in the brain of external events
The majority of the external events experienced by a child are actions of the parent, the ego state was appropriately called Parent
Parent is our 'Taught' concept of life
Child
Our internal reaction and feelings to external events
Child is our 'Felt' concept of life
Adult
Our 'Adult' is our ability to think and determine action for ourselves
The Adult allows the young person to evaluate and validate Child and Parental data
Adult is our 'Thought' concept of life

33. Organization