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“Download for free at” – If you redistribute this textbook in a print format, then you must. Principles of Management by Tripathi and Reddy is a well defined textbook which gives a basic knowledge about managerial functions in the most organised and. Principles of Management, Edition 2, P. C. Tripathi and P. N. Reddy, Tata. McGraw Hill Publishing Company. Page UNIT 2: ORGANISING AND ORGANISATION.


Principles of management pc tripathi pdf download


Should the discipline involve the use of a laboratory and a lab coat in order to be called a science? Obviously not. The hallmarks of a science are not the test tube or the lab coat.

Instead, they are implicit in the method of inquiry used by a discipline for gathering the data. Being systematic means being orderly and unbiased. The attempt to gain knowledge must be with- out taint of personal or other prejudgement. Further, the inquiry must be empirical and not merely an armchair speculation or a priori approach. It thus becomes communicable and intelligible.

Communication of results also permits repetition of the study, if need be, by the original investigator or others. Science is also cumulative in that what is discovered is added to that which has been found before. We learn from past mistakes and obtain guides for the future. We build upon the base that has been left by others. We must remember that management is not like the exact or natural sciences such as physics, chemistry.

But the same thing is not possible in management where we have to study man and a multiplicity of factors affecting him. At best, we can get only a rough idea of the rela- tionship between the two. They are going to tell us about tendencies and probabilities only. We may, therefore, place management in the category of a behavioural science.

Are Management Principles Culture-bound? Some people argue that the principles of management do not have universal application and that their applicability varies according to culture.

This is not correct, for these people do not distinguish carefully between management theory and management practice. Several researches19 have shown that although different cultures may give rise to different management practices or techniques, management theory, concepts and principles remain the same everywhere.

A classic study is that of Harbison and Myers who studied management practices in 23 countries and concluded that management did not differ fun- damentally from country to country. For example, one may come across automobiles of different designs to suit different topographical conditions but the physical science principles governing all the designs may be the same.

Art is thus concerned with the understanding of how a particular work can be accomplished. Management in this sense is more an art. It is the art of getting things done through others in dynamic and mostly non-repetitive situations. The manager has to constantly analyse the existing situation, determine the objectives, seek alternatives, implement, coordinate, control and evaluate information and make decisions. A theoretical body of lessons and principles which a manager has learnt in a classroom will not secure for him the aimed results unless he has also the skill or art of applying such principles and body of knowledge to his special problem.

Knowledge of management theory and principles is indeed a valuable aid and kit of the manager but it cannot replace his other managerial skills and qualities. This knowledge has to be applied and practised by the manager just as the medical or legal practitioners practise their respective sciences.

In this sense, management in an art. It is like the art of a musician or the art of a painter who seeks to achieve the desired effect with colour or instruments, but mainly with his own skill. He does not copy the skills of others. We may thus conclude that management involves both elements—those of a science and an art. While certain aspects of management make it a science, certain others which involve application of skill make it an art.

Farmer and B. Richard D. Irwin, or F. Harbison and C. Myers, Management in the Industrial World, N. We have seen that management is partly an art and partly a science. Is it a profession? McFarland20 gives the following characteristics of a profession: 1.

Existence of an organised and systematic knowledge 2. Formalised methods of acquiring training and experience 3. Existence of an association with professionalisation as its goal 4. Existence of an ethical code to regulate the behaviour of the members of the profession 5.

Charging of fees based on service, but with due regard for the priority of service over the desire for monetary reward Management, as we all know, does not possess all the above characteristics of a profession. There is no uniform code of conduct or licensing of managers. Further, the entry to managerial jobs is not restricted to individuals with a special academic degree only.

In the light of this analysis we can conclude that management cannot be called a profession. There are, however, certain unmistakable trends toward the professionalisation of management. For example, it is becoming increasingly essential nowadays to acquire some professional knowledge or training.

Managing a business is no longer just a matter of intuition or a family ability. It has now come to be studied and taught as a subject by itself. In India, we have at present twelve national institutes of management at Ahmedabad, Bangalore, Kolkata, Lucknow, Indore, Shillong, Ranchi, Rohtak, Raipur, Udaipur, Tiruchirapalli and Kozhikode; besides there are a number of university departments which offer M.

Peter Druckcr21 is, however, of the view that holding of an academic degree should not be a condition to get an entry into the management profession. A degree in management does not by itself make an individual a professional manager any more than does a degree in philosophy make an individual a philosopher.

The essence of professional management is achievement, not knowledge; results not logic. By insisting on holding a degree, we are overemphasising knowledge and completely overlooking skill. This will eliminate those individuals who, though highly skilled, do not have the required degree. It is said that all family managements must be replaced by professional management—managers by birth should yield place to managers by profession. This view is not totally correct because there is nothing basically wrong in perpetuating a family dynasty so long it also continues to be dynamic and.

The growth of the corporate sector in India is our inspiring saga of dynamism and toil of some business families, at a time when professionalism was quite unknown.

In the words of K. Following is a brief description of the various skills and abilities that an international manager must possess. These include patents, trade secrets, proprietary designs, product development and process innovation. Human relations skills of an international manager are manifested no where more than in global human resource management.

In a moment of anger, he shouted at his time keeper to take the next boat to the shore. He escaped by barricading himself in his quarters.

The Economic Times, July 21, Daft, Management, 2nd Ed T. This may be related to ownership e. It is useful to remember here that while strong encouragement of foreign investment is now the norm, government policy remains diverse in many cases. Ability to Manage Country Risk An international manager should have the ability to proactively manage the two kinds of risks. Management of political risk may include coalition building, advocacy advertising, channelising invest- ment in local industries and contributing to the development at regional level.

Coalition building often involves bringing on board the local constituencies, sometimes in the form of alliance partners.

Ability to Exert Pressure on Home Government It is the ability to assist a Multinational En- terprise MNE in a foreign market via dumping, pricing, tied aid, tied scholarships and so on. Airbus often buys full-page advertisements in U. The laws that are of particular concern to him include competition laws, marketing and distribution laws, patent laws and treaties involving the protection of intel- lectual property rights. Legal systems in different countries vary in their underlying principles, independence, transparency and enforcement.

Also see Chapter These are: availability, experience, quality, compensation level, and cultural distance. The economic development of a country depends on management. Management coordinates all organisational activities and produces a synergic effect, like a man conducting an orchestra.

Management is both, a science as well as an art. It is an inexact science. However, its principles as distinguished from practice are of universal application. Managers at different levels of the organisation require and use different types of skills. Lower level managers require and use a greater degree of technical skill than higher level managers, while higher level managers require and use a greater degree of conceptual skill. Human skills are important at all managerial levels.

Roles These are sets of behavioural expectations of related individuals or groups from a manager. List its functions. Distinguish between management and administration. Comment on the true nature of management. Is it a science or an art? Discuss the importance of management in the present-day world.

What are the attributes of a profession? Is management a profession? Is it necessary for every business to have a professional management? Explain the principal functions of management. Would you attach different levels of importance to these functions at various levels of management? What do you understand by the universality concept of management?

Critically examine the pros and cons of this concept. Match the following: a Innovation and Representation as two additional Mary Parker Follett managerial functions. Henry Mintzberg c Management is the art of getting things done E. Brech through people. McFarland e Management is a comprehensive generic term. Between a general hospital and a steel plant? And between a college and a recreation club?

Outline the various functions and skills of a manager and explain the concept of managerial ef- fectiveness. What are the skills required of an international manager? This assignment can be carried out in the following manner: 1.

This chapter will enable the reader to: Examine the contributions and limitations of F. From an almost unrecognised position nearly three centuries ago, management has risen today to the central activity of our age and economy—a powerful and innovative force on which our society depends for material support and national well-being. The period between and highlights the Indus- trial Revolution and the writings of the classical economists.

Several economists during this period explained in their writings the concepts and functions of management. Adam Smith,1 for example, explained the concept and consequences of division of labour. Turgot2 explained the importance of direction and control and Say3 was struck by the importance of planning.

The evolution of management thought during this period can be studied in three parts as under: 1. Neo-classical approaches, represented by human relations movement and behavioural approach 3. Modern approaches, represented by quantitative approach, systems approach and contingency approach The contributions made by all these approaches to management serve as a foundation for modern management. Time and Motion Study Since Taylor had been a machinist himself, he knew how piece-work employees used to hold back production to its one-third level because they feared that their employers would cut their piece rate as soon as there was a rise in production.

The real trouble, Taylor thought was that no one knew how much work it was reasonable to expect a man to do. He, therefore, started.

John Richter Philadelphia: M. Development of Management Thought Thus the best way of doing a job was found. This replaced the old rule-of-thumb-knowledge of the workman.

Differential Payment Taylor introduced a new payment plan called the differential piece work, in which he linked incentives with production. Under this plan a worker received low piece rate if he produced the standard number of pieces and high rate if he surpassed the standard.

Taylor thought that the attraction of high piece rate would motivate workers to increase production. Drastic Reorganisation of Supervision Taylor suggested two new concepts: i separation of planning and doing and ii functional foremanship.

In those days it used to be customary for each worker to plan his own work. The worker himself used to select his tools and decide the order in which the operations were to be performed.

The foreman simply told the worker what jobs to perform, not how to do them. Taylor suggested that the work should be planned by a foreman and not by the worker. Further, he said that there should be as many foremen as there are special functions involved in doing a job and each of these foremen should give orders to the worker on his speciality.

In short, Taylor believed that management and labour had a common interest in increasing productivity. Gantt and the Gilbreths. Thus he saw the importance of the human element in productivity and propounded the concept of motivation as we understand it today. Second, the foreman too was to earn a bonus for each worker who reached the daily standard, plus an extra bonus if all the workers reached it. This, Gantt reasoned, would spur a foreman to train his workers to do a better job.

Going beyond this, Gantt originated a charting system for production control. They made motion and fatigue study their lifework. This is concerned with product, process and tool design; plant layout; standard operating procedures; work measurement and standards; and work methods and human-machine interactions.

He has many other needs also, such as security needs, social needs or egoistic needs which motivate him far more potently than his desire for money, at least after he has risen above the starvation level. This is because two time studies done by two separate individuals may time the same job entirely differently. Separation of planning and doing and the greater specialisation inherent in the system tend to reduce the need for skill and produce greater monotony of work. Having a man take orders from 7 to 8 different bosses results in confusion, besides increasing the overhead cost.

This caused resentment among them. March and Herbert A. Simon, Organisations N. He was a French mining engineer turned a leading industrialist and successful manager. Until this book was translated into English in , little was known about him by the western world. His perspective, unlike that of Taylor extended beyond the shop level and the physical production processes and was of a macro nature, cov- ering the general administrative and managerial functions and processes at the organisational level.

Further, the process of management as a series of functions originated with Fayol. He emphasised repeatedly that this process is the same at every level of an organisation and is common to all types of organisations. Fayol also presented 14 principles of management as general guides to the management process and management practice. These are discussed below. Division of Work Division of work in the management process produces more and better work with the same effort.

Authority and Responsibility As the management consists of getting the work done through oth- ers, it implies that the manager should have the right to give orders and power to exact obedience. A manager may exercise formal authority and also personal power.

Responsibility is closely related to authority and it arises wherever authority is exercised. An individual who is willing to exercise authority, must also be prepared to bear responsibility to perform the work in the manner desired. However, responsibility is feared as much as authority is sought after. Discipline Discipline is absolutely essential for the smooth running of business.

By discipline we mean, the obedience to authority, observance of the rules of service and norms of performance, respect for agreements, sincere efforts for completing the given job, respect for superiors, etc. The best means of maintaining discipline are a good supervisors at all levels, b clear and fair agreements between the employees and the employer, and c judicious application of penalties.

In fact, discipline is what leaders make it. Unity of Command This principle requires that each employee should receive instructions about a particular work from one superior only. Note that the importance of such a restriction was not realised by F. Taylor when he recommended that there should be as many foremen as there are special functions in doing a job and each of these foremen should give orders to the worker on his speciality.

Unity of Direction It means that there should be complete identity between individual and organi- sational goals on the one hand and between departmental goals inter se on the other. They should not pull in different directions. Subordination of Individual Interest to General Interest In a business concern, an individual is always interested in maximising his own satisfaction through more money, recognition, status, etc.

This is very often against the general interest which lies in maximising production. Hence the need to subordinate the individual interest to general interest. The management must decide the degree of centralisation or decentralisation of authority on the basis of the nature of the circumstances, size of the undertaking, the type of activities and the nature of organisational structure.

The objective to pursue should be the optimum utilisation of all faculties of the personnel. Scalar Chain Scalar chain means the hierarchy of authority from the highest executive to the lowest one for the purpose of communication. It states superior-subordinate relationship and the authority of superiors in relation to subordinates at various levels.

As per this principle, the orders or communica- tions should pass through the proper channels of authority along the scalar chain. But in case there is a need for swift action, the proper channels of authority may be short-circuited by making direct contact called gang plank with the concerned authority. In Fig. In a strict observance of the scalar chain, any communication from D to O would go all the way up to A and down the other side of the triangle to O.

This is a time consuming procedure. Fayol suggested that if there is need for swift action D and O may be authorised by their respective superiors C and N to have direct contact with each other. A gang plank can be thrown across between D and O. Order To put things in an order needs effort. Disorder does not need any effort. It evolves by itself. Management should obtain orderlines in work through suitable organisa- tion of men and materials.

Equity Equity means equality of fair treatment. Equity results from a combination of kindness and justice. Employ- ees expect management to be equally just to everybody. It Fig. Equity ensures healthy industrial relations between management and labour which is essential for the successful working of the enterprise. Stability of Tenure of Personnel In order to motivate workers to do more and better work, it is necessary that they should be assured security of job by the management.

If they have fear of insecurity of job, their morale will be low and they cannot give more and better work. Initiative Initiative means freedom to think out and execute a plan. The zeal and energy of employees are augmented by initiative. Innovation which is the hallmark of technological progress, is possible only where the employees are encouraged to take initiative. Employees should be encouraged to make all kinds of suggestions to conceive and carry out their plans, even when some mistakes result.

Esprit de Corps This means team spirit. Only when all the personnel pull together as a team, there is scope for realising the objectives of the concern. Harmony and unity among the staff are a great source of strength to the undertaking. To achieve this, Fayol suggested two things. One, the motto of divide and rule should be avoided, and two, verbal communication should be used for removing misunderstand- ings.

Contributions and Limitations of Administrative Management Both Taylor and Fayol had essentially the same goal of increasing production but they tried to reach this goal from different directions.

Taylor worked from the bottom of the hierarchy upward, whereas Fayol worked from the apex downwards. Mooney and Alan C. These executives wrote a book, Onward Industry, in , later revised and renamed Principles of Organisation. The real explosion in the number of principles of management came with Colonel L. Urwick, a distin- guished executive and management consultant in U. Some of the several dozen principles he advocated are as follows: 1.

There should be clear line of authority, as in the military, from the top management down to the lowest employee. The authority and responsibility of each employee should be communicated to him in writing. Each individual should perform one function only. The span of control of a manager should never exceed six.

Authority can be delegated, but not responsibility. Drawing inspiration from Fayol, a new school of thought known as the Management Process School came into existence. They also believe that these functions and the principles on which they are based have general or universal applicability. Managers, whether they are managing directors or su- pervisors, perform the same functions of planning and control although the degree of complexity may differ.

Management theory, as a body of knowledge, is not culture-bound but is transferable from one environment to another. This approach is also referred to as the universalist approach. Ideas of Fayol and his followers have come to be criticised as follows: 1. Each individual carries out his assigned part as something apart from the overall purpose of the organisation as a whole.

Simon7 substantiated this criticism by referring to the principle of unity of command and the principle of specialisation or division of labour. Both the principles, he said, cannot be followed simultaneously. Similarly, the principle of limited span of control advocated by Gulick, Urwick, and others does not go hand in hand with another of their principles which says that the number of organisational levels should be kept at a minimum because on limiting the span of control, number of levels of management increases.

In this way, many of these principles are full of contradictions and dilemmas. This provoked Simon to remark that these principles are no better than proverbs which give opposite messages. These principles are based on few case studies only and have not been tested empirically. Indeed, whenever these principles have been tested empirically, they have fallen like autumn leaves.

These principles are often stated as unconditional statements of what ought to be done in all circumstances when what is needed are conditional principles of management. These principles viz. They also develop among employees an orientation towards their own particular departments rather than towards the whole organisation. These principles are based on the assumption that organisations are closed systems.

But this is not so. Organisations are open systems. Hence the rigid structures which these principles tend to create, do not work well under unstable conditions. Read Systems Approach described later in this chapter. About he made a study of different types of business and government organisations and distinguished 3 basic types of administration in them: leader-oriented, tradition-oriented and bureaucratic. Leader-oriented adminis- tration is one in which there is no delegation of management functions.

All employees serve as loyal subjects of a leader. In tradition-oriented administration managerial positions are handed down from generation to generation. Who you are rather than what you can do, becomes the primary criterion for work assignment.

No person can claim a particular position either because of his loyalty to the leader or because the position has been traditionally held by members of his family. Weber considers this last type as the ideal type of administration.

Important Features of Bureaucratic Administration 1. There is Insistence on following Standard Rules Weber believed that the authority in an organisation should not be governed by the personal preferences of the employer but it should be gov- erned by standard rules.

In other words, the institutional cult should replace the personality cult. Bums and G. This would also obviate the need for searching ad hoc solutions to problems. It is Necessary for the Individual to have Knowledge of and Training in the Application of Rules because these form the basis on which legitimacy is granted to his authority.

There is Rational Personnel Administration People are selected on the basis of their credentials and merit and are paid according to their position in the hierarchy.

Promotions are made systematically. Limitations During the past years, however, bureaucracy has come in for a lot of criticism. Researches by Merton,12 Selznick13 and Gouldnerl4 have revealed several dysfunctional consequences of bureaucracy. Bennis and Thompson are among the severest critics of bureaucratic organisations.

In fact, Weber himself in his own life time became so much disenchanted with these organisations that he later on began to attack the concept which at one time he had helped to immortalise. Important dysfunctional consequences of bureaucracy are discussed below.

They therefore follow only the letter of the law without going into its spirit. Violation of rule, begets more rules to take care of the violations. In situations where there are no rules, employees are afraid of taking decisions independently lest they may be punished for the wrong decisions.

They, therefore, either shift decisions to others or postpone them. Social Forces, No. Trained incapacity In a bureaucratic organisation the training and experience, repeated many times over, develop in an individual skills and abilities in a specialised area only.

Displacement of goals This is a very common phenomenon in a bureaucratic organisation. Goal displacement takes place when an organisation substitutes for its legitimate goal some other goal for which it was not created, for which resources were not allocated to it, and which it is not known to serve.

Displacement of goals can occur in several ways. Some of them are as under: a After some time the leaders of an organisation may begin to devote more and more of their atten- tion and resources to preserve and maintain the organisation itself rather than its initial purpose.

This occurs because several interest groups develop in and outside the organisation which begin to use the organisational goals as means to serve their own individual goals. The means thus become more important than the ends.

But the employee, instead of supplying him the required information asks him to follow the rules and to go to the enquiry counter. If a librarian is praised for the neat and orderly look of the library and not for the increase in the number of book borrowers, if a factory worker is praised for his regular attendance and not for the quality of his performance and if a teacher is praised for the pass percentage of his students and not for the quality of his instruction, it is not surprising if they begin to feel after some time that the orderly look of the library, regular factory attendance and high pass percentage are all what are demanded of them.

Story is told of a transport spokesman who countered complaints that buses often whizzed past waiting commuters by arguing that picking up passengers upset timetables. In fact, appraisals in many organisations are based on information that is easy to collect rather than that which is intrinsically important.

A company may decide to put in a secret detective force in order to cut down on losses due to theft and carelessness. The net result may be that the cost of the service is greater than the amount of theft prevented and that production drops due to a lowering of the morale among the workers. Superiors very often side with the viewpoint of their sub- ordinates.

Neglect of informal groups Man is imbued with sentiments. Being a social creature, he forms informal groups which play a very important role in all organisations. Bureaucratic organisations often ignore the existence of informal groups which usually carry out a big chunk of organisational work.

Rigid structure Precise description of roles and overconformity to rules make bureaucratic struc- tures rigid. Inability to satisfy the needs of mature individuals The maturity-immaturity theory, propounded by Chris Argyris,l6 explains in great detail how bureaucratic organisations are unable to meet the needs of mature individuals who work in them. According to this theory, a mature individual wants indepen- dence, initiative, self-control, opportunity to use all his skills and information to plan his future.

But the hierarchy and control features of a bureaucratic organisation work against these needs. The real inspiration for the move- ment, however, came from the Hawthorne experiments which were done by Prof. The plant employed Illumination Experiments 2. Relay Assembly Test Room 3. Interviewing Programme 4. Bank Wiring Test Room. In this phase, the popular belief that productivity is positively correlated with illumination was tested.

Experiments were done on a group of workers. Their productivity was measured at various levels of illumination. But the results were erratic. Puzzled with this phenomenon, researchers improved their methodology. This time, they set up 2 groups of workers in different buildings.

One group called the control group worked under constant level of illumination and the other group called the test group worked under changing levels of illumination. The post-test productivity of the two groups was then compared and it was found that illumination affected production only marginally. Relay Assembly Test Room In this phase, the object of the study was broadened. It now aimed at knowing not only the impact of illumination on production but also of such other factors as length of the working day, rest pauses, their frequency and duration and other physical conditions.

A group of six women workers, who were friendly to each other, was selected for this experiment. These women workers were told about the experiment and were made to work in a very informal atmosphere with a supervisor-researcher in a separate room. The supervisor-researcher acted as their friend, philosopher and guide. Surprisingly, the researchers found that the production of the group had no relation with working conditions. It went on increasing and stabilised at a high level even when all the improvements were taken away and the poor pre-test conditions were reintroduced.

How this phenomenon came about, nobody knew. The workers were also not able to explain this phenomenon. They were neither closely supervised, nor motivated by extra reward. Obvi- ously, something else was happening in the test room which was responsible for this. Researchers then attributed this phenomenon to the following factors: a Feeling of importance among the girls as a result of their participation in the research and the attention they got b Warm informality in the small group and tension-free interpersonal and social relations as a result of the relative freedom from strict supervision and rules c High group cohesion among the girls.

Interviewing Programme The knowledge about the informal group processes which was acciden- tally acquired in the second phase made researchers design the third phase. In this phase, they wanted to know as to what were the basic factors responsible for human behaviour at work.

For this purpose they interviewed more than 20, workers. But since the replies were guarded, the technique was changed to non-directive type of interviewing, in which workers were free to talk about their favourite topics related to their work environment. The study brought to light the all-pervasive nature of informal groups which had their own culture and production norms which their members were forced to obey.

Bank Wiring Observation Room This phase involved an in-depth observation of 14 men making terminal banks of telephone wiring assemblies, to determine the effect of informal group norms and formal economic incentives on productivity. Workers would produce that much and no more, thereby defeating the incentive system.

The study also revealed that the members of an informal group gave informal rankings to each other, which decided the internal social structure of the group and its informal leaders.

The experience of the Hawthorne studies produced a profound impact on the luminaries of the human relations movement. They came to realise the important role played by informal groups in the working of an organisation. Contributions and Limitations of the Human Relations Movement Contributions The contributions of the movement may be summarised as follows: 1.

A business organisation is not merely a techno-economic system but is also a social system. Hence it is as important for it to provide social satisfaction to the workers as to produce goods. There is no correlation between improved working conditions and high production. Those who deviate from the group norm are penalised by their co-workers. A worker does not work for money only.

Employee-centred, democratic and participative style of supervisory leadership is more effective than task-centred leadership. The informal group and not the individual is the dominant unit of analysis in organisations. Limitations 1. If Taylor and Fayol viewed task and structure as their central tenets and ignored the human variable, the human relations writers saw only the human variable as critical and ignored other variables. Every organisation is made up of a number of diverse social groups with incompatible values and interests.

These groups might cooperate in some spheres and compete and clash in others. Management can only put off its decision for some time. This approach over-emphasises the importance of symbolic rewards and underplays the role of material rewards.

Many times a worker in a factory is ridiculed by his coworkers on receiving a symbolic reward from his employer. Hence such rewards generally fail to achieve their objective of higher production. This approach provides an unrealistic picture about informal groups by describing them as a major source of satisfaction for industrial workers. This approach is in fact production-oriented and not employee-oriented as it claims to be. Many of its techniques such as granting the workers inexpensive symbols of prestige, arranging picnics for the employees, running subsidised canteens, socialising with workers, etc.

The leisurely process of decision-making of this approach cannot work during an emergency. How far, for example, can a platoon commander, under orders to capture a hill, practise human relations in the thick of the battle? When decisions have to be made very quickly, when secrecy is important, when work is reduced to a routine, or when subordinates do not particularly care to be consulted, this approach may not work.

This approach makes an unrealistic demand on the superior. It wants him to give up his desire for power. A desire for power is one of the main reasons why people want to become managers.

Attempts to increase output by improving working conditions and the human rela- tions skills of a manager, generally do not result in the dramatic productivity increases that are expected.

Behavioural Approach This approach is an improved and a more mature version of the human relations approach to management. These scientists were more rigorously trained in various social sciences such as psychology, sociology, and anthropology and used more sophisticated research methods.

Social Problems C. Behavioural scientists are highly critical of the classical organisation structures which are built around the traditional concepts of hierarchical authority, unity of command, line and staff relationships and narrow spans of control.

They argue that in these organisations there is lot of domination of the work place by managers which causes subordinates to become passive and dependent on them. The behavioural approach recognises the practical and situational constraints on human rationality for making optimal decisions.

It says that in actual practice, the decision-making is done in a suboptimal manner. Also, behavioural scientists attach great weightage to participative and group decision-making because it is felt that business problems are so complex that it is neither fair nor feasible to make individuals responsible for solving them.

Behaviourists underline the desirability of humanising the administration of the control process and encouraging the process of self-direction and control instead of imposed control. They also favour participation in the establishment, measurement and evaluation of standards of performance, prompt information feedback to those whose performance is off the mark and the need for positive and refor- mative measures instead of punitive measures.

They have, therefore, made wide-ranging studies of human groups— big and small. They have studied such issues as why individuals join groups, group size, structure and process, group cohesiveness, and so on. Behavioural scientists have made extensive studies on leadership. Their view is that while in general, the democratic-participative style is desirable, the autocratic, task-oriented style may also be appropri- ate in certain situations. To behavioural scientists, the realistic model of human motivation is complex man.

This model suggests that different people react differently to the same situation or react the same way to different situations. It gained momentum during the Second World War when the UK and USA were desperately trying to seek solutions to a number of new, complex problems in warfare.

In later years, when the war ended, people made use of this technique in solving problems of industry also. Today OR works in approximately the following manner. A mixed team of specialists from relevant disciplines is called in to analyse the problem and to propose a course of action to the management.

The team constructs a mathematical model to simulate the problem. The model shows, in symbolic terms, all the relevant factors that bear on the problem and how they are interrelated. By changing the values of the variables in the model such as increasing the cost of raw materials and analysing the different equations of the model generally with a computer, the team can determine what the effect of each change would be.

Eventually, the OR team presents the management with a rational base for making a decision. Statistical methods, a second variety of quantitative analysis, are undoubtedly more pervasive in management than operations research, partly because they are older in application and partly because of their versatility. The best known uses of statistical methods involve sampling theory.

It is often inferred from the characteristics appearing in a sample what the larger universe, from which the sample is taken, resembles. It is clear from the above description that the focus of the quantitative approach is on decision- making—to provide quantitative tools and techniques for making objectively rational decisions. This approach focuses on the manager as decision-maker.

The keynote of this approach is preci- sion and perfection which is achieved by expressing relationships and facts in quantitative terms. Systems Approach A common pitfall of the classical, behavioural, and quantitative schools is that they stress one aspect of the organisation at the expense of others. What is needed is one broad, detailed, conceptual framework that can help a manager diagnose a problem and decide which tool or combination of tools will best do the job.

The systems approach provides him this integrated approach to management problems. The following are the key concepts of this approach.

A system is a set of interdependent parts that together form a unitary whole that performs some function. An organisation is also a system composed of four interdependent parts, namely, task, structure, people and technology.

The people subsystem refers to the employees with their mo- tives, attitudes and values and the informal organisation. The technology subsystem refers to the tools and equipment as well as techniques which are used by the organisation to perform its task. Conversely, the whole system cannot be accurately perceived without understanding all its parts. Each part bears a relation of interdependence to every other part. This means that rather than dealing separately with the various parts of one organisation, the systems approach tries to give the manager a way of looking at the organisation as a whole.

It tells him that to understand, for example, the operations of the research and development or manufacturing or the marketing division of a company, he must understand the company as a whole, for the activity of anyone part of the company affects the activity of every other part.

The above concept facilitates more effective diagnosis of complex situations and increases the likeli- hood of appropriate managerial actions. Perhaps the best example of the application of this concept can be found in the study of 12 restaurants in Chicago by William Foote Whyte and his 3 associates. The spindle acted: a As a queuing device The waitresses could place their order slips on clips as they received them, and the cook could take each of them in its turn.

Thus the orders, and not the waitresses, waited in line. A system can be either open or closed. An open system is one which interacts with its environment. A closed system is one which is independent of the environment. The classicists regarded organisations as closed systems. They ignored the effect of the environment. But all the living systems,. These enter the system from the environ- ment as inputs and leave the system as outputs. Hence they are rightly conceived as open systems by modem writers.

The organisation changes these inputs into outputs of goods, services and satisfaction. In general, transformation processes can be categorised as follows: Physical as in manufacturing Location as in transportation Exchange as in retailing Storage as in warehousing Physiological as in health care Informational as in telecommunications These transformations are not mutually exclusive.

For example, a retailer can a allow customers to compare prices and quality informational , b hold items in inventory until needed storage , and c sell goods exchange. It should be remembered that the output of a system is always more than the combined output of its parts. In organisational terms, synergy means that as separate departments within organisation cooperate and interact, they become more productive than if they had acted in isola- tion.

As operations of the system proceed, information is fed back to the appropriate parts so that the work can be assessed and if necessary, corrected. This is shown in Fig. A system will be effective, i. Every system has a permeable boundary. They can also be maintained psychologically through symbols such as titles, uniforms and indoctrination rituals. Organisations being social systems do not have clearly observable boundaries. The concept of boundary is useful in several ways such as discussed below.

It helps a system in determining where it ends and the other system begins. It divides those elements that are a part of a system from those that are a part of its environment. It enables a system to protect its transformation process from the vagaries of its environment.

These units are known as boundary-spanning units. Examples of such units on the input side are the purchase and per- sonnel departments. Examples of boundary spanning units on the output side are marketing, warehousing and quality control departments.

Contribution of Systems Approach In the traditional approaches only that part of the organisation is studied which is plagued with a problem. But in the systems approach a problem is studied both at the level of the sub system i. The systems approach follows a logical process of deductive-inductive reasoning. The questions considered include the following: 1. How many distinguishable elements are there to this seeming problem? What cause-and-effect relationships exist among these elements?

What function needs to be performed in each case? However, application of this approach to business organisation results in the requirements that executives, in addition to having skills in their own functional areas, should have enough knowledge of other areas also.

They should be generalists. There are some writers who contend that there is nothing new in this approach. They say that this approach simply combines the views of the classicists and the neo-classicists, which tantamounts to pouring old wine into new bottles.

According to this approach, management prin- ciples and concepts of various schools have no general and universal applicability under all conditions.

In other words, there is no one best way of doing things under all conditions. Methods and techniques which are highly effective in one situation may not work in other situations. What is good for the goose may not be good for the gander. Results differ because situations differ. Accordingly, the contingency approach suggests that the task of managers is to try to identify which technique will, in a particular situation best contribute to the attainment of management goals.

Managers have, therefore, to develop a sort of situational sensitivity and practical selectivity. A detailed description of these views is given at relevant places in the chapters ahead. We have described all major approaches to management thought in terms of their chronological emergence.

It often seems that the boundaries between these approaches are becoming progressively less distinct, as the classical approach, which is incorporating many insights and concepts of other ap- proaches, continues to remain the most important approach. The history of management can be divided into three periods—early, neo-classical and modern. The early period consists of three approaches, viz. Neo-classical period consists of the human relations and behavioural approaches.

Modem period consists of the quantitative, systems and contingency approaches. Each one of the above approaches has made a distinct contribution to management theory. In the human relations approach the stress is on the human aspect of group effort.

The behavioural approach recognises the practical and situational constraints of human behaviour. Quantitative approach emphasizes the use of Operations Research or mathematical decision-making. Contingency approach attempts to integrate all previous approaches. Scalar Chain This refers to the chain of superiors from the highest to the lowest rank.

If certain situational factors exist, then certain organisational and managerial variables are most appropriate. Do you agree? Give reasons for your answer. Mention the different schools of management.

Discuss the contributions of the human behaviour schools. Is his list exhaustive? Give a brief account of the contribution to management thought made by Elton Mayo. Point out the distinctive contribution of Taylor to the theory of management. Describe the systems approach to management. How does it differ from the contingency approach? What is the major task of manager according to the contingency approach? How is this approach an effort to integrate all previous approaches? What are the important features of a bureaucratic administration?

Describe its dysfunctional consequences. Match the following: a Fourteen Principles of Management. Max Weber b Time and Motion study. Elton Mayo c Hawthorne experiments. Taylor d Bureaucracy. Henri Fayol e Systems approach. Koontz and Donnell f Universalist approach.

Herbert Simon [ a Henri Fayol, b F. Use the systems analysis technique to outline the problem of pollution caused by discarded polythene bags. Case How Practical are Hawthorne Studies? You are just too nice to people. I know that this human behaviour stuff has been taught to you at the institute, but it just does not work here.

Discussion Questions 1. How would you explain to your father the new perspective that is needed for a business to be successful?

In the preceding chapter we have learnt that every business organisation is an open system. It has a bewildering variety of dynamic forces in its environment which continuously impinge upon it and affect its working. Examples of these forces are state laws, political climate, social values, customers, sup- pliers, competitors, trade unions, and so on.

These forces lay down criteria of judging an organisation and require it to adjust its performance to meet these criteria. These criteria change with the times.

A business organisation today is judged by criteria which are very different from those of half a century ago. This means that there cannot be the same set of social responsibilities applicable to all countries in all times. These would be deter- mined in each case by the customs, religions, traditions, level of industrialisation and a host of other norms and standards about which there is a public consensus at any given time in a given society.

The socio-economic obligation of every business is to see that the economic consequences of its actions do not adversely affect public welfare. The socio-human obligation of every business is to nurture and develop human values such as morale, cooperation, motivation and self-realisation in work. It is at the centre of a network of relationships to persons, groups and things. The businessman should, therefore, consider the impact of his actions on all to which he is related.

This gave rise to the idea of a welfare state which was further strengthened by the growth of democracy and of respect for human dignity during the last years. Any extension of democracy has always produced an extension of popular education. As soon as the newly enfranchised 1Adolph A. McGuire, ed. Accordingly, as the elec- torate widens, so the rules have to provide as a political necessity, provision for the aged, compensation for disablement at work, relief during sickness and unemployment and wage legislation.

The framework of a welfare state and with it the concept of social responsibility have thus come to stay in many countries of the world. The changing image of business in recent years has lent further support to the idea of social responsi- bility.

Uploaded by Murtaza Hassan Bhat. Did you find this document useful? Is this content inappropriate? Report this Document. Flag for inappropriate content. Download now. For Later. Jump to Page. Search inside document. Tripathi, formerly Professor and Head of the Department of Business Administration, Faculty of Commerce and Management Studies, Sukhadia University, Udaipur, is an outstanding scholar and a prolific writer in the field of management.

A PhD from Mysore University, he has more than 35 years of experience in teaching commerce and management subjects. He has published 50 research articles in reputed Indian and foreign journals and has also authored 25 books in the areas of commerce and management subjects. However, neither Tata McGraw-Hill nor its authors guarantee the accuracy or completeness of any information published herein, and neither Tata MeGraw-Hill nor its authors shall be responsible for any erors, omissions, or damages arising out of use of this information, This work is published withthe understanding that Tata McGraw-Hill and its authors ae supplying information but are not attempting to render engineering or other professional serviees.

If such services are required, the assistance of an appropriate professional should be sought. The strength of the book over the years has been its comprehensive coverage of key topics, its straightfor- ward writing, up-to-date research base and Indian examples related to the use of various management concepts. This latest edition should enhance this reputation because it has been thoroughly revised and updated on the above lines. Each chapter begins with learning objectives.

These objectives should help the students focus better and prepare for what follows in the chapter. Review Questions provided at the end of each chapter will help the students check their understanding of the key concepts presented. Finally, most chapters include cases, which reinforce the chapter concepts, encourage critical think- ing to apply the concepts to unstructured or more comprehensive situations and provide opportunities for discussions and more practical understanding. The book aims at those who wish to take a totally up-to-date, research- based approach to management.

Since the textbook material is comprehensive, the book can effectively be used for both graduate and post-graduate courses. Students of some undergraduate courses may, however, on finding the book too inclusive, omit certain chapters to bring it within the scope of their desired objectives without ignoring the unified point of view.

Finally, the book should be useful to the practising managers who want to understand and more effectively manage their most important asset—their human resources. Tripathi, who has been carrying out the entire revision work since the first edition, very much appreciates the entire team at Tata McGraw-Hill, especially Atul Gupta Senior Production Executive who not only improved this edition but was a pleasure to work with. Tripathi also greatly appreciates his wife Sarla and now grown-up children and their families who have provided him with a loving, supportive relationship and the atmosphere needed to complete this project and many others over the years, We think we have not reached the end yet.

We encourage you to contact Dr. Tripathi at his postal address with your comments or suggestions for improvement. Tripathi , Ashok Nagar, Udaipur P. However, the art or practice of management is quite different in differ- ent environments. Clearly, there are differences of political, legislative, social, cultural, as well as of economic nature. These differences or variables may act as constraints, limiting the options for the manager and the organisation.

These may also provide opportunities. A good manager, therefore, must be sensitive to the environment of the place where he is operating. He must learn to make decisions and to plan, organise and control activity in the environmental perspectives of his own country. The purpose of this text is to provide this perspective to our readers.

Books written by foreign authors obviously lack this perspective. This book presents a unified picture of what management is and how it is applied to various forms of human endeavour in this country. It gives a basic knowledge about managerial functions in the most useful and organised way. An attempt has been made to eliminate the excessive use of management jargon which often affects the readability of books on management. Instead, clear and familiar language has been used to make the subject easily intelligible to the readers.

Chapters and 2 introduce the field of management and the task of the manager. Chapter 3 gives the background and the major schools of management thought. Chapters 4 and 5 are devoted to planning and decision-making. This is followed by a discussion of two important techniques and aids in planning and decision-making, namely, business forecasting and operations research Chapter 6.

The book then tums to the organising function. Chapter 7 gives an overview of the ways in which work is allocated and organisations are structured. Chapter 8 describes the evolution and growth of informal organisations. In Chapter 9 the ways in which managers exercise authority and delegate duties are described.

Chapters 14 and 15 look at the ways in which people are motivated and the modes of communication. A discussion about leadership is given in Chapter


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