change in the lighting and the researchers were requested to work under constant lighting system uptothe end of the experiment. It was observed that the output of both groups increased steadily. Theproduction decreased in two groups whenever the lighting falls below the normal level. This experiment23revealed that there is no relationship between lighting and productivity. It means that the improvedworking conditions do not result in the increased productivity. As per this experiment, it is known thatinformal social relations among the group members are the reason for increased productivity.2. Relay assembly test room experimentsRelay assembly test room experiments were conducted to determine the effect of changes inworking conditions, length of working days, rest pauses, frequency of rest and duration and physicalconditions on productivity. A group of six women workers, who were friendly to each other selected forthis experiment. These women workers were told about the experiment and were made to work in a veryinformal atmosphere with a supervisor researcher in a separate room. The supervisor researcheracted as their friend, philosopher and guide. During the study several variations were made in theworking conditions to find which combinations was most ideal for production. Surprisingly, theresearchers found that the production of the group had no relation with working conditions. It went onincreasing and stabilized at a high level even when all the improvements were taken away and the poorpre test conditions were reintroduced. How this phenomenon came about nobody knew. The workerswere also not able to explain this phenomenon. They were neither closely supervised, nor motivated byextra reward. Obviously, something else was happening in the test room, which was responsible for this.Researchers then attributed this phenomenon to the following factors: Feeling of importance among the women as a result of their participation inthe research and the attention they got. Warm informality in the small group and tension free interpersonal andsocial relations as a result of the relative freedom from strict supervision and rules. High group cohesion among the women.Elton mayo concluded that the work satisfaction depends to a large extent on the informalsocial pattern of the work group.3. Mass Interviewing ProgrammeThe knowledge about the informal group processes, which was accidentally acquired in thesecond phase made researchers design the third phase. This interview programme was conducted todetermine employees attitudes towards company, supervision, insurance plans, promotion and wages.For this purpose they interviewed more than 20,000 workers. At first, direct questions were askedrelating to the type of supervision, working conditions living conditions and so on. But since the replieswere guarded, the technique was changed to non directive type of interviewing, in which workers werefree to talk about their favourite topics related to their work environment. This study revealed that the24workers social relations inside the organization had an unmistakable influence on their attitudes andbehaviours. The study brought to light the all pervasive nature of informal groups which had their ownculture and production norms which their members were forced to obey.Mayo concluded that the workers were activated by logic of sentiment but the management isconcerned with logic of cost and efficiency. Thus, a conflict between the workers and the managementbecomes inevitable.4. Bank wiring Observation room ExperimentThis experiment was conducted between 1931 and 1932. A group has been formed to conductthis experiment. This group consisted of fourteen male workers. Out of these fourteen workers, ninewere wiremen, three were soldier men and two were inspectors.The main aim of this experiment was to analyze how a group could influence a worker to restricthis output even in the face of attractive incentive schemes for larger output. Hourly rate of wages wasfixed on the basis of average output of each worker and a group bonus scheme was announced. Groupbonus was to be determined on the basis of average group output. It was assumed that workers wouldproduce more and more in order to get maximum group bonus. Besides, the workers could help eachother to produce more. The company had not improved the working conditions for this experiment andthe company was not ready to analyse cause effect relationships. But, a general observation was madeto know about an individual behaviour and the impact of group behaviour on the individual behaviour.Under this experiment, workers have decided their target by themselves. The company targetwas more than the target fixed by the workers. However, the workers have failed to achieve the targetdue to the following reasons. Unemployment problem Unduly high standard Protection of slow workers Satisfaction of managementThis experiments helped to arrive at the following conclusion: An informal relationship is responsible for deciding the human behaviour. The counseling was helpful in resolving management employee conflicts. The existence of informal organization is quite common in all organization. The group had fixed standard output of their own only because of social pressure.1.10. 3. Modern approach to management25Modern approach represents latest developments, which took place after 1950. Thisapproach can be studied in the following four phases namely, Quantitative approach, Systemapproach, Contingent approach and Attributes of excellence.1.10.3.1. Quantitative ApproachThis approach also known as management science approach, has been developed during 1950.It is based on the approach of scientific management. It offers systematic and scientific analysis andsolution to the problems faced by managers. The quantitative approach aims at achieving high degree ofprecision, perfection and objectivity by encouraging the use of mathematical and statistical tools forsolving complex problems. These quantitative decision making tools are known as OperationsResearch like LPP, Simulation, queuing theory and game theory etc It also implies use of computeraidedtechnology in various fields like production, finance, costing, transporting and storage etc Insimple terms, operations research may be regarded as application of scientific methods for solvingproblems and scientific methods for solving problems and scientific methods consist of the followingstages. Dividing problems into small and simple components Gathering required information on each component Analysis of data so collected Finding out solution to problem in hand.The quantitative approach which involves use of knowledge and skills of several other disciplines suchas statistics, engineering and accounting etc has contributed significantly to management theory andbehaviour. This approach has very limited application that too only in respect of problem solving anddecision-making.1.10.3.2. Systems ApproachSystems approach of management represents new thinking and latest developments related toorganization and management. It was developed after 1950 emphasing interdependence andinterrelationship among various activities of organization. Basically this approach aims at identifying thenature of relationship among various components of the organization, which is considered as largersystem. The term system may be defined as a set of interrelated and interacting components assembledin a particular sequence as to produce some results. These components may also viewed as sub-systemsof larger system. It is only through this subsystems the larger system operates, thus larger system canbe viewed as a whole entity or totality. The various sub-systems which are involved in the functioning of26larger one are closely related to each other and to a system as a whole. Similarly, these sub-systemsinteract with each other by getting influenced and influencing others. Every system has sub-system andevery sub-system may be considered as a system because, it may have a sub-systems.The system approach defines an organization as a complex whole consisting of mutually interdependentand interacting parts, which are viewed as sub-system. Therefore the approach is said to be holistic innature assuming that whole is greater than the sum of its parts.The system may be broadly classified into four categories. They are as follows Physical system Mechanical system Biological system Social systems.Physical systems are the part and parcel of the nature or sub-system, of it totally governed andregulated by the nature. For example, solar system, seasons and rivers, etcMechanical systems refer to those devices, which are based on technology. These systems havebeen innovated by human beings for their betterment but are totally closed systems in nature, as they donot interact with external environment such as machines, motorcars, electronic appliances and consumerdurables etcBiological systems are those systems, which regulate and control existence and survival of allliving species, human and plants are good examples of biological systems.Social systems may be defined as systems, which have been developed by human being tofacilitate co-operative working to overcome the problem of isolation and desolation. All kinds of smalland big formal and informal and economic and non economic organizations are examples of socialsystems.1.10.3.3. Contingency ApproachContingency approach, though related to system approach, represents comparatively new line ofthinking among management scientists. This approach basically aims at attempting to take a step awayfrom universal application of managerial principles a recommending that the application of theseprinciples is subject to appropriateness of the situation. It is a systematic attempt to determine packageof management technique, approaches and practices which are appropriate in specific situation.The contingency approach offers following guidelines for the managers.27 Contingency approach is situation oriented urging upon the managers to study, analyseand diagnose the situation. It is to be done in terms of components variables of the situation andexternal factors affecting the situation. Subsequently, after the analysis of the situation, the managers are expected to prepareinventories of management theory, principle, techniques and concepts. In order to tackle the situation efficiently the validity and applicability of managementtools and techniques is to be examined and finally package of these tools and techniques isprepared which is appropriate for that specific situation. The different situation requires differentmanagerial response.1.10.3.4. Attributes of ExcellenceThis approach has been developed by Thomas J.Peter and Robert H.Waterman, managementconsultants of USA in 1982. They published a book popularly known as In Search of Excellencewhich was considered as remedy for solving productivity-related problems faced by Americancompanies. In view of its wide acceptance this approach deserves mention in the historical developmentof management thoughts. After having surveyed and interviewed thirty six excellent companies out ofsixty two best managed companies USA in terms of innovation and profitability they isolated eightattributes of excellence described below.S.No. Attribute ofexcellenceKey indicators1 A base for action Small scale, easily managed experiments to build knowledge,interest, and commitment. Management stay visible andpersonally involved in all areas through active informalcommunication and spontaneous management by wonderingaround (MBWA).2 Close to the customer Customer satisfaction is practically an obsession. Input fromcustomers is sought throughout the design, productionmarketing cycles.3 Autonomy andentrepreneurshipRisk taking is encouraged; failure is tolerated in projects to seethem through competition. Flexible structure permits theformation of Skunk works (small team of zealous innovatorsworking on special projects) Lot of creative swings areencouraged to ensure some home runs (Successful products)4 Productivity through Individuals are treated with respect and dignity. Enthusiasm,28people trust and family feeling are fostered. People are encouraged tohave fun while getting something meaningful accomplished.Work units are kept small and humane.5 Hands-on value driven A clear, companys philosophy is disseminated and followed.Personal values are discussed openly not buried. Theorganizations belief system is reinforced through frequentlyshares stories, myths, and legends. Leaders are positive rolemodelnot do as I say not-as-I-do, authority figure.6 Stick to the knitting Management sticks to the business it knows best emphasis is oninternal growth not merger.7 Simple form lean staff Authority is decentralized as much as possible. Headquartersstaffs are kept small; talent is pushed out of field.8 Simultaneous loosetightpropertiesTight overall strategic and financial control is counter-balancedby decentralized authority, autonomy and opportunities forcreativity.(Source: Peter and Watermains eight attributes of excellence from In Search of Excellence.)1.11. Difference between Management and AdministrationSl.No Point of Distinction Administration Management1DefinitionAdministration means overalldetermination of policies, settingsof major objectives, the laying outof broad programmes, majorprojects and so forth.(ie., Administration meansdetermination of goals,formulation of plans and policiesof the organization.)Management meansessentially an executivefunction, the active directionof human efforts gettingthings done.(i.e., Management isconsidered as an operativefunction of carrying outplans and policies forachieving objectives.)2Nature Deterministic or thinking function Executive or doingfunction3 ScopeIt is concerned with thedetermination of major objectivesand policiesIt is concerned with theimplementation of policies294 Level It is a mainly a top-level function It is largely a middle andlower- level function5Influence Administrative decisions areinfluenced mainly by publicopinion and other outside forces.Managerial decisions areinfluenced mainly byobjectives and policies ofthe organization6 Direction of humaneffortsIt is not directly concerned withthe direction of human effortsIt is actively concernedwith the direction of humanefforts in the execution ofplans7 Main function Planning and control are the mainfunctions involved in itDirecting and organizingare the main functionsinvolved in it.8 Skills required Conceptual & human skills Technical and human skills9 Usage Used largely in government andpublic sectorUsed mainly in businessorganizations10 ExamplesMinister, Commander,Commissioner, Registrar, vice-Chancellor, Governor etcManaging Director,General Manager, SalesManager, Branch Manageretc1.12. Management as a Science or an art1.12.1. Management as a ScienceScience is not only using the test tube or the lab coat, but also they are implicit in the method ofinquiry used by a discipline for gathering data. We can call it as a discipline, as it is a scientific on thefollowing grounds:1. Methods of inquiry are systematic and empirical;2. Information can be gathered, recorded and analysed; and3. Results are cumulative and communicable.Systematic means the recorded and analyzed data or being ordered and unbiased. All scientificinformation collected as raw data and finally ordered and analysed with the help of statistical tools. Itthus becomes communicable and intellectual. Communication of results also permits repetition of the