Q 1.List and discuss the three stages of management evolution
ANSWER
1. Classical management theory
2. Neo classical theory
3. Modern approaches
1. Classical management theory
a. scientific management theory( F. Taylor)
b. Classical organization theory (H. Fayol)
c. Bureaucratic theory (M. Weber)
1) Classical school theory of management
 sometimes called the traditional school of management
 evolved as a result of the industrial revolution, in response to the growth of large
organizations
 Emphasis on the economic rationality of management and organization.
 Assumes that people are motivated by economic incentives and that they make choices
that yield the greatest monetary benefit.
A. scientific management Theory (SMT)
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SMT was developed mainly by a person called F.W Taylor, who was a foreman at
Bethlehem Midvale Steel Factory in America.
Taylor's primary objective was to discover the most efficient way of doing a job
and then train the workers to do it that way.
To do this, he preferred scientific management principles or rules rather than
intuitions, judgments, experience generally called Rule of Thumb method.
From his experience Taylor observed that workers were inefficient.
The major reasons for inefficiency were as follows:
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Standards of performance were not properly determined.
The existing pay system was not motivating
The responsibilities of management and other workers were not clearly distinguished
There was no specialization as such.
There were an antagonistic relationship between management and subordinates.
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Therefore, Taylor had attempted to find solutions to the above problems.
Consequently, the basic components of scientific management were developed by him.
These include
• determination of standards of performance scientifically
• differential and piece-rate payment system
• identification of responsibilities of management from subordinates
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specialization of functional foremanship
mental revolution
B. Administrative management theory
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Pioneers of administrative management explored the possibilities of an ideal way to
put all jobs together and operate an organization.
Thus, the emphasis of administrative or general management theory is on finding
‘the best way’ to run an organization.
Fayol is the main Pioneers of administrative management
He writes that all activities of business enterprises could be divided into six groups:
technical, commercial, financial, accounting, security and administrative or
managerial.
He profounded that the fundamental functions of any manager consists of planning,
organizing, commanding, coordinating and controlling
He emphasized that the process of management is the same at any level of an
organization and is common to all types of organizations.
Fayol's 14 principles
1. Division of work: Division of work and specialization produces more and better work with the
same effort.
2. Authority and responsibility: Authority is the right to give orders and the power to
exact obedience. A manager has official authority because of her position, as well as
personal authority based on individual personality, intelligence, and experience.
Authority creates responsibility.
3. Discipline: Obedience and respect within an organization are absolutely essential. Good
discipline requires managers to apply sanctions whenever violations become apparent.
4. Unity of command: An employee should receive orders from only one superior.
5. Unity of direction: Organizational activities must have one central authority and one
plan of action.
6. Subordination of individual interest to general interest: The interests of one employee
or group of employees are subordinate to the interests and goals of the organization.
7. Remuneration of personnel: Salaries — the price of services rendered by employees —
should be fair and provide satisfaction both to the employee and employer.
8. Centralization: The objective of centralization is the best utilization of personnel. The
degree of centralization varies according to the dynamics of each organization.
9. Scalar chain: A chain of authority exists from the highest organizational authority to the
lowest ranks.
10. Order: Organizational order for materials and personnel is essential.
The right materials and the right employees are necessary for each organizational
function and activity.
11. Equity: In organizations, equity is a combination of kindliness and justice. Both equity
and equality of treatment should be considered when dealing with employees.
12. Stability of tenure of personnel: To attain the maximum productivity of personnel, a
stable work force is needed.
13. Initiative: Thinking out a plan and ensuring its success is an extremely strong motivator.
Zeal, energy, and initiative are desired at all levels of the organizational ladder.
14. Esprit de corps: Teamwork is fundamentally important to an organization. Work teams
and extensive face-to-face verbal communication encourages teamwork.
Contributions of administrative organization
1. Demonstrated the importance of different skills at different levels of
management for managers.
2. Systematically identified functions of management
3. Developed several important principles of management.
C. Bureaucratic theory of management
 Developed by Max Weber
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As organizations became larger and more complex, there is many layers of middle
and lower management for coordinating organizational effort.
Some attributes of bureaucratic theory of management
• a manager’s formal authority derives from the position he or she holds in the
organization
• A well defined hierarchy of authority,
• division of labour by functional specialization
• a set of rules covering the rights and duties of employees
• a system of procedures or dealing with work situations
• impersonal relations between people and promotion and
• selection of employees based on technical competence
• The advantages of bureaucracy are many folds:
• There is consistent employee behaviour
• It eliminates overlapping or conflicting jobs or duties
• The behavior of the system ispredictable.
• In turn, consistency and precise job definitions help to avoid wasteful actions and
improve efficiency,
2) The Neo-classical school theory of management
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The neo-classical theory of management has partly emerged because the classical
theorists failed to raise productivity and work place harmony although they had
made a lots of attempts
focused on human dimension of organization.
The objective of the neo-classical theorists was to identify factors that will serially
affect productivity of employees
As a reaction to schools of classical theory which over-emphasized the mechanical
and physiological characters of management, came up the schools of neoclassical
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theory with a more human-oriented approach and emphasis on needs, drives,
behaviors and attitudes of individuals.
Classified into the human relation and behavioral school theory
3) Modern Management theory
The modern approach consists
a) The systems approach b) The contingency approach
c) Management science
a) The system approach
system- is a group of interrelated and interdependent parts working together to attain one
common objective.
– Characteristics of systems
– A system can be open or closed
– System has boundary
– System has subsystems
– Failure in one subsystem can be considered as failure of the entire
system
b) The contingence theory of management
• The contingency approach stresses the absence of a single best way to manage
• They should be able to identify which technique, in a particular situation, will best
contribute to the attainment of management goals
c) Management science approach
• The management science approach proposes the use of quantitative technique to aid
decision making
• The management science approach is also called quantitative approach
• Tools such as linear programming, queuing theory, simulation models, CPM,
inventory-control and quality control tools were extensively used in this approach
Q 2). Discus the human relations trust in management with emphasis on the role of
Hawthorn experiment
ANSWER
The human relation school
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The researcher on human relation school believed organizations always involve
interrelationships among members
Satisfaction of psychological needs should be the primary concern of the
management
Elton Mayo has been considered as the father of the human relations movement
He headed a group of researchers in conducting the Howthrone studies
The objective was to identify factors that will serially affect productivity of
employees
Hawthorne study
The study had four phases
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Illumination Experiments
The relay assembly Test Room Experiment
The Interviewing program
The bank wiring observation.
Phase one: Illumination Experiments
• This initial experiment was designed to study the effect of illumination on out put
• At different levels of light the output increase and they concluded that lightening was
only one factor among several factors affecting output
Phase II the Relay Assembly Test room Experiment
To obtain control sample, the researchers decided to isolate small group of employees from the
regular work force and study their behavior
-Different supervisors were assigned to the women and they were allowed to communicate freely
with their supervisors and among each other
-Change in physical factors such as rest time, lunch time, number of working days, number of
working weeks
- Regardless of these changes, productivity increased.
- Then the researchers concluded that productivity was mainly affected by social,
psychological and nature of supervisions used
To get more information:
Phase III The interviewing program
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The employees were asked about factors that might affect levels of their
productivity
Finally the interviewers had the importance of other important factor from the
interview, i.e., informal groups in an organization remained significant factor that
affected the workers
Phase IV The Bank wiring observation Room Study
-The researchers decided to study a small group at work and they chose to study the bank wiring
room, where workers were wiring and soldering bank terminals
Outcomes: the workers' actions were affected by many behavioral norms, which include factors
like- individuals with whom they were given job
-informal groups
From studies conducted at howthrone researchers concluded:
• Individual workers could not be treated in isolation, but must be seen as members
of groups
• Employee motivation was based not only on the satisfaction of physical needs but
also social and psychological needs.
• Democratic style of leadership is important for employees' satisfaction.
• Informal groups were important in organizational work environment
As against the rational economic view, the social person view is that
(i) Individuals are motivated by social needs
(ii) People obtain their sense of identity through interpersonal relationships
(iii) Employees are more responsive to the social forces of peer groups than to incentives and
controls of management
(v) Employees respond to provisions for their social needs and acceptance offered by
management
Q 3. How does Henry Fayol’s contribution to the classical approach differ from that of
Taylor?
ANSWER
Difference Between Fayol and Taylor’s Theories of Management
Henry Fayol is a French Mining Engineer, who developed the concept of general theory of
administration and given 14 principles of management. On the other hand, F.W. Taylor is an
American Mechanical Engineer, who advanced the concept of Scientific Management and given
4 Principles of Management.
Management is viewed as the process in which the responsible members of the organization get
the work done through and with others. Principles of Management are the guidelines that govern
the decision making and behaviour in an organization. There are various theories of management
which are put forth by a number of management thinkers. Two such management thinkers are
Henry Fayol and Fredrick Winslow Taylor (F.W. Taylor).
Henry Fayol’s Theory Vs F.W. Taylor’s Theory
Comparison ChartDefinitionKey DifferencesConclusion
BASIS FOR
COMPARISON
HENRY FAYOL
F.W. TAYLOR
Meaning
Henry Fayol, is a father of modern
management who laid down fourteen
principles of management, for
improving overall administration.
F.W. Taylor, is a father of scientific
management who introduced four
principles of management, for
increasing overall productivity.
Concept
General theory of administration
Scientific Management
Emphasis
Top level management
Low level management
Applicability
Universally applicable
Applies to specialized organizations
only.
BASIS FOR
COMPARISON
HENRY FAYOL
F.W. TAYLOR
Basis of formation Personal Experience
Observation and Experimentation
Orientation
Managerial function
Production and Engineering
System of Wage
Payment
Sharing of profit with managers.
Differential Payment System
Approach
Manager's approach
Engineer's approach
Key Differences Between Fayol and Taylor’s Theory of Management
The difference between Fayol and Taylor’s Theory of Management, are explained in the
points presented below:
1.Henry Fayol is a father of modern management who enunciated fourteen principles of
management, for improving overall administration. As against, F.W. Taylor is a father of
scientific management who developed four principles of management, for increasing
overall productivity.
2.Henry Fayol introduced the concept of General theory of administration. F.W. Taylor
laid down the concept of Scientific Management.
3.Henry Fayol emphasized the working of top level management, whereas F.W. Taylor
stressed on the working of production level management.
4.Fayol’s management theory has universal applicability. Unlike Taylor, whose
management theory applies to a number of organizations only.
5.The basis of formation of Fayol’s theory is the personal experience. Conversely,
Taylor’s principles rely on observation and experimentation.
6.Fayol is oriented towards managerial function. On the contrary, Taylor focussed on
production and engineering.
7.The system of wage payment determined by Taylor is differential piece rate system,
while Fayol stressed on sharing of profits with managers.
8.The approach of Taylor is termed as Engineer’s approach. In contrast, Fayol’s approach
is accepted as manager’s approach.
Conclusion
Both the management thinkers have an immense contribution in the field of management,
which is not contradictory but complementary in nature. While Henry Fayol is an ardent
proponent of the unity of command, F.W. Taylor is of the opinion that it is not substantial
that under functional foremanship, an employee receives orders from multiple bosses.
Q 4 . How can employee empowerment benefit organizations?
ANSWER
There may be different definitions of empowerment, but the essence of empowerment
revolves around providing employees with a solid understanding of the company vision,
information, skills, and the authority and accountability to make the right decisions for
the business. So, how can empowering your employees provide benefits for your
company?
Empowerment for better customer service
The first benefit of an empowered company is better customer service. When you have
employees that know and share your company vision, and are truly engaged and view
themselves as integral parts of the organization, they are capable of making decisions and
doing whatever it takes to make the customer a happy customer. They treat that customer
as their own and recognize for themselves, and the organization, to be successful they
need to attract and retain customers. The result: a better service experience for your
customer.
Empowerment for increased productivity
The second benefit of empowering employees at your company is increased productivity.
If employees know what is expected and have the authority to make decisions then
timelines are met, and tasks are completed. Think about how many times you’ve heard
someone say, “I need to have this okay-ed from my boss.” This can take minutes, hours,
even days. However, if an employee is empowered and has the authority, they can make
the decision and keep the work moving forward.
Empowerment for less waste and added value
The third benefit, empowered employees identify sources of waste and opportunities for
increased value. When an employee is empowered within an organization they feel
accountable and responsible for the success of the organization. The empowered
employee is much more apt to bring to light issues around waste in the production of a
product or a service, and their proximity to the production makes them perfect candidates
to provide feedback on areas that can provide enhanced value for your customers and
company.
An empowered work environment can offer many benefits, but three very real, tangible
examples are better customer service, increased productivity, and the reduction of waste
and recognition of value add opportunities.
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Empowering your employees instead of micromanaging them improves
accountability and customer service, improves job satisfaction and helps you to solve
problems faster than before.
Accountability Improves When Employees Make Decisions
When you empower an employee to make decisions and to get things done with
reasonable judgment, you are telling him that you trust him, and that you feel he is
intelligent and can handle things. An employee becomes more accountable, knowing that
the boss has confidence in his ability to perform. That confidence means he will get the
job done and that he will do the job to the best of his ability.
Faster Problem Resolution
Nothing is more frustrating when dealing with business issues than to constantly have to
refer to another person on the chain of command. If a person is given the resources and
authority to get the job done without running around for 10 authorizations, things get
done faster.
For example, if you are out of the office at a lunch meeting and the phones go down,
having an employee who is authorized to work with the phone technicians to resolve the
problem could have the problem solved before you return from lunch. If this employee
had not been empowered to do this, the entire office would have remained down until you
returned (either early from lunch or after).
Higher Quality Customer Service
Think about how many times that car salesman has to go to the manager to get approval
for the next line item negotiated. This is time-consuming and customers don't like it.
People like dealing with the person who can get the job done for them. Giving employees
the power to make certain deals, give certain discounts at their discretion or provide other
customer service solutions builds a happier customer base.
Job Satisfaction Goes Through the Roof
Empowered employees often have higher job satisfaction because they know that the
boss values and trusts them. Imagine an employee who helped an unhappy customer get
the resolution that customer had desired, and then even sold them a second product by
thinking outside of the normal company protocol. This employee will feel great about the
accomplishment. Many times, situations like this build employee confidence helping to
mold junior talent into senior management over time.
Improved Processes and Procedures
Empowered employees are allowed to question things and look at every aspect of the job
from their perspective. If an employee isn't empowered, he simply punches in, forces the
round peg in the square hole all day until it's time to punch out. He never questions the
process. An empowered employee sees a better way, makes the adjustments to change the
pegs and makes the entire system better. Empowered employees know that managers
respect new ideas that make things better.
Q 5) List and discuss the major features of scientific management
ANSWER
The Features of Scientific Management are:• Separation of planning and working
• Functional foremanship
• Job analyzers
• Time study or Work measurement
• Method study
• Motion study
• Paved way for progress in productivity
• Employee-Employer relationship to be harmonious Training & Development is the necessity of
the hour
• Elimination of wastes through quality management is a control measure
• Optimal utilization of resources made possible.
1. Separation of Planning and doing: Taylor emphasized the separation of planning
aspects from actual doing of the work. The planning should be left to the supervisor and
the workers should emphasize on operational work.
2. Functional Foremanship: Separation of planning from doing resulted into development
of supervision system that could take planning work adequately
besides keeping
supervision on workers. Thus, Taylor evolved the concept of functional foremanship
based on specialization of functions.
3. Job Analysis: It is undertaken to find out the best way of doing things. The best way of
doing a job is one which requires the least movement consequently less time and cost.
4. Standardization: Standardization should be maintained in respect of instruments and
tools, period of work, amount of work, working conditions, cost of production etc.
5. Scientific Selection and Training of Workers: Taylor has suggested that the workers
should be selected on scientific basis taking into account their education, work
experience, aptitudes, physical strength etc.
6. Financial Incentives: Financial incentives can motivate workers to put in their
maximum efforts. Thus, monetary (bonus, compensation) incentives and non monetary
(promotion, upgradation) incentives should be provided to employees.
Q6). In your own view summarize the bureaucratic management theory and
how it benefit both from the view point of customers and that of workers
ANSWER
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a continuous organisation or functions bounded by rules
 that individuals functioned within the limits of the specialisation of the work, the degree of
authority allocated and the rules governing the exercise of authority
 a hierarchical structure of offices
 appointment to offices made on the grounds of technical competence only
 the separation of officials from the ownership of the organisation
 The authority was vested in the official positions and not in the personalities that held these
posts. Rules, decisions and actions were formulated and recorded in writing.
It is no coincidence that Weber's writings were at a time of the major industrial revolutions and
the growth of large complex organisations out of the cottage industries and/or entrepreneurial
businesses.
The efficiency of this rational and logistical organisation shares a considerable amount of
common ground with the thinking of Fayol. In particular, features such as scalar chain,
specialisation, authority and the definition of jobs which were so essential to successful
management as described by Fayol, are typical of bureaucracy.