Management processesNature of Management ProcessManagement process can be treated as dynamic in which events and interrelationships must be seen as dynamic flexible and continuous and must be considered as a whole Thus management as a process involves a number of activities and assumes that the totality of what managers do can be divided into a set of interrelated activities What is a Manager Someone whose primary responsibility is to carry out the management process Someone who plans and makes decisions organizes leads and controls human financial physical and information resources

Kinds of Managers by Level and AreaKinds of Managers by Level Top Managers The relatively small group of executives who manage the organizationrsquos overall goals strategy and operating policies Middle Managers Largest group of managers in organizations Implement top managementrsquos policies and plans Supervise and coordinate lower-level managersrsquo activities First-Line Managers Managers who supervise and coordinate the activities of operating employeesKinds of Managers by Area Marketing Managers Work in areas related to getting consumers and clients to buy the organizationrsquos products or services Financial Managers Deal primarily with an organizationrsquos financial resources Operations Managers Concerned with creating and managing the systems that create organizationrsquos products and servicesKinds of Managers by Area (contrsquod) Human Resource Managers Involved in human resource processes Planning recruiting and selection training and development designing compensation and benefit systems formulating performance appraisal systems Administrative Managers Serve as generalists in functional areas and are not associated with any particular management specialty Other Kinds of Managers Assigned as specialists in positions directly related to the needs of the organizationManagement in OrganizationsFigure 12The Management Process

Skills and the ManagerFundamental Management Skills Technical Skills necessary to accomplish or understand the specific kind of work being done in an organization Interpersonal The ability to communicate with understand and motivate both individuals and groups Conceptual The managerrsquos ability to think in the abstract Diagnostic The managerrsquos ability to visualize the most appropriate response to a situationFundamental Management Skills (contrsquod) Communication The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others Decision-Making The managerrsquos ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities Time-Management The managerrsquos ability to prioritize work to work efficiently and to delegate appropriatelyManagement Science or Art The Science of Management Assumes that problems can be approached using rational logical objective and systematic ways Requires technical diagnostic and decision-making skills and techniques to solve problems The Art of Management Decisions are made and problems solved using a blend of intuition experience instinct and personal insights Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activitiesSources of Management SkillsManagement Roles Interpersonal roles Informational roles Decisional rolesEvolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960

Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquosScientific Management-Frederick Taylor

Features of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri Fayol

Principles1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their part in that plan6 Subordination of individual interests-- When at work only work things should be pursued or thought about There should be constant vigilance and supervision7 Remuneration-- Employees receive fair payment for services not what the company can get away withAdministrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions are made from the top9 Scalar chain (line of authority)-- Formal chain of command running from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it happen14 Esprit de corpsndash Union is strength Harmony cohesion among personnel Manager should encourage espirit de corps among workers

Bureaucracy- WeberFeatures of Bureaucracy Administrative Class Hierarchy Division of Work Official Rules Impersonal Relationships Official Records

Human Relations Approach- George Elton Mayo

The study continued for anextended period of time and had gone through various phases which is brieflydescribed here Hawthorne Experimentsbull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test RoomPhase-I Illumination Experiments

Phase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed this

phenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing Program

From the Relay Assembly Test Room the researchers for the first time became awareabout the existence of informal groups and the importance of social context of theorganizational life To probe deeper into this area in order to identify the factorsresponsible for human behavior they interviewed more than 20000 employees Thedirect questioning was later replaced by non-directive type of interviewing The studyrevealed that the workersrsquo social relationship inside the organizations has a significantinfluence on their attitude and behavior It was also found that merely giving a personan opportunity to talk and air his grievances has a beneficial effect on his moralePhase IV Bank Wiring Test Room

It had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the groupThus the Hawthorne study pointed out the following

The business organization is essentially a socio-technical entity where the processof social interactions among its members is also extremely important1048707 There is not necessarily a direct correspondence between working conditions andhigh production1048707 Economic motives are not the only motive for an employee Onersquos social needscan also significantly affect their behavior Employee-centered leaders alwaystend to be more effective than the task-oriented leaders1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization

Formal and Informal Organizations Elements of Organization Authority Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose Motivation Executive Effectiveness Organizational Equilibrium

Decision Theory Approach- Simon Concept of organization Decision making Bounded Rationality Administrative Man Organization Communication

Peter Drucker- Contemporary Approach Nature of Management Management Functions Organization Structure Federalism Management by Objectives (MBO) Organizational Changes

Skills and the ManagerFundamental Management Skills Technical Skills necessary to accomplish or understand the specific kind of work being done in an organization Interpersonal The ability to communicate with understand and motivate both individuals and groups Conceptual The managerrsquos ability to think in the abstract Diagnostic The managerrsquos ability to visualize the most appropriate response to a situationFundamental Management Skills (contrsquod) Communication The managerrsquos abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others Decision-Making The managerrsquos ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities Time-Management The managerrsquos ability to prioritize work to work efficiently and to delegate appropriatelyManagement Science or Art The Science of Management Assumes that problems can be approached using rational logical objective and systematic ways Requires technical diagnostic and decision-making skills and techniques to solve problems The Art of Management Decisions are made and problems solved using a blend of intuition experience instinct and personal insights Requires conceptual communication interpersonal and time-management skills to accomplish the tasks associated with managerial activitiesSources of Management SkillsManagement Roles Interpersonal roles Informational roles Decisional rolesEvolution of Management Thought Scientific Management 1900-1930 Administrative Management 1916-1940 Human Relations Approach 1930-1950 Social Systems Approach 1940-1950 Decision Theory Approach 1945-1965 Management Science Approach 1950-1960

Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquosScientific Management-Frederick Taylor

Features of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri Fayol

Principles1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their part in that plan6 Subordination of individual interests-- When at work only work things should be pursued or thought about There should be constant vigilance and supervision7 Remuneration-- Employees receive fair payment for services not what the company can get away withAdministrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions are made from the top9 Scalar chain (line of authority)-- Formal chain of command running from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it happen14 Esprit de corpsndash Union is strength Harmony cohesion among personnel Manager should encourage espirit de corps among workers

Bureaucracy- WeberFeatures of Bureaucracy Administrative Class Hierarchy Division of Work Official Rules Impersonal Relationships Official Records

Human Relations Approach- George Elton Mayo

The study continued for anextended period of time and had gone through various phases which is brieflydescribed here Hawthorne Experimentsbull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test RoomPhase-I Illumination Experiments

Phase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed this

phenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing Program

From the Relay Assembly Test Room the researchers for the first time became awareabout the existence of informal groups and the importance of social context of theorganizational life To probe deeper into this area in order to identify the factorsresponsible for human behavior they interviewed more than 20000 employees Thedirect questioning was later replaced by non-directive type of interviewing The studyrevealed that the workersrsquo social relationship inside the organizations has a significantinfluence on their attitude and behavior It was also found that merely giving a personan opportunity to talk and air his grievances has a beneficial effect on his moralePhase IV Bank Wiring Test Room

It had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the groupThus the Hawthorne study pointed out the following

The business organization is essentially a socio-technical entity where the processof social interactions among its members is also extremely important1048707 There is not necessarily a direct correspondence between working conditions andhigh production1048707 Economic motives are not the only motive for an employee Onersquos social needscan also significantly affect their behavior Employee-centered leaders alwaystend to be more effective than the task-oriented leaders1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization

Formal and Informal Organizations Elements of Organization Authority Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose Motivation Executive Effectiveness Organizational Equilibrium

Decision Theory Approach- Simon Concept of organization Decision making Bounded Rationality Administrative Man Organization Communication

Peter Drucker- Contemporary Approach Nature of Management Management Functions Organization Structure Federalism Management by Objectives (MBO) Organizational Changes

Human Behavior Approach 1950-1970 Systems Approach 1960rsquos Contingency Approach 1970rsquosScientific Management-Frederick Taylor

Features of Scientific Management Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution

Administrative Management-Henri Fayol

Principles1Division of work-- Dividing the work into small convenient components and giving each component to one employee It encourages employees for continuous improvement in skills and the development of improvements in methods2 Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility3 Discipline-- Self imposed and command discipline No bending of rules4 Unity of command-- Each employee has one and only one boss5 Unity of direction-- A single mind generates a single plan and all play their part in that plan6 Subordination of individual interests-- When at work only work things should be pursued or thought about There should be constant vigilance and supervision7 Remuneration-- Employees receive fair payment for services not what the company can get away withAdministrative Management-Henri Fayolcontdhellip8 Centralization-- Consolidation of management functions Decisions are made from the top9 Scalar chain (line of authority)-- Formal chain of command running from top to bottom of the organization like military10 Order-- All materials and personnel have a prescribed place and they must remain there11 Equity-- Equality of treatment Justice and kindness12 Personnel tenure-- Limited turnover of personnel Lifetime employment for good workers13 Initiative-- Thinking out a plan and do what it takes to make it happen14 Esprit de corpsndash Union is strength Harmony cohesion among personnel Manager should encourage espirit de corps among workers

Bureaucracy- WeberFeatures of Bureaucracy Administrative Class Hierarchy Division of Work Official Rules Impersonal Relationships Official Records

Human Relations Approach- George Elton Mayo

The study continued for anextended period of time and had gone through various phases which is brieflydescribed here Hawthorne Experimentsbull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test RoomPhase-I Illumination Experiments

Phase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed this

phenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing Program

From the Relay Assembly Test Room the researchers for the first time became awareabout the existence of informal groups and the importance of social context of theorganizational life To probe deeper into this area in order to identify the factorsresponsible for human behavior they interviewed more than 20000 employees Thedirect questioning was later replaced by non-directive type of interviewing The studyrevealed that the workersrsquo social relationship inside the organizations has a significantinfluence on their attitude and behavior It was also found that merely giving a personan opportunity to talk and air his grievances has a beneficial effect on his moralePhase IV Bank Wiring Test Room

It had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the groupThus the Hawthorne study pointed out the following

The business organization is essentially a socio-technical entity where the processof social interactions among its members is also extremely important1048707 There is not necessarily a direct correspondence between working conditions andhigh production1048707 Economic motives are not the only motive for an employee Onersquos social needscan also significantly affect their behavior Employee-centered leaders alwaystend to be more effective than the task-oriented leaders1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization

Formal and Informal Organizations Elements of Organization Authority Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose Motivation Executive Effectiveness Organizational Equilibrium

Decision Theory Approach- Simon Concept of organization Decision making Bounded Rationality Administrative Man Organization Communication

Peter Drucker- Contemporary Approach Nature of Management Management Functions Organization Structure Federalism Management by Objectives (MBO) Organizational Changes

Bureaucracy- WeberFeatures of Bureaucracy Administrative Class Hierarchy Division of Work Official Rules Impersonal Relationships Official Records

Human Relations Approach- George Elton Mayo

The study continued for anextended period of time and had gone through various phases which is brieflydescribed here Hawthorne Experimentsbull Phase I Illumination Experimentsbull Phase II Relay Assembly Test Roombull Phase III Interviewing Programbull Phase IV Bank Wiring Test RoomPhase-I Illumination Experiments

Phase-I Illumination ExperimentsIn order to test the traditional belief that better illumination will lead to higher level ofproductivity two groups of employees were selected In one the control group theillumination remained unchanged throughout the experiment while in the other theillumination was increased As had been expected the productivity went up in thelatter or what was known as the experimental group But what baffled theexperimenters was the fact that the output of the control group also went up As thelighting in the formal group was not altered the result was naturally puzzling anddifficult to explain The investigators then started to reduce the illumination for thetest group But in this case as well the output shoot up again Thus the researchers hadto conclude that illumination affected production only marginally and there must besome factor which produced this result

Phase-II Relay Assembly Test Room

In this phase apart from illumination possible effects of other factors such as lengthof the working day rest pauses and their duration and frequency and other physicalconditions were probed The researcher who was continuously present with the groupto observe the functioning of the group acted as their friend and guide Surprisinglyhere also the researchers found that the production of the group had no relation withthe working conditions The outcome of the group went increasing at an all-time higheven when all the improvements in the working conditions were withdrawn Nobodyin the group could suggest why this was so Researchers then attributed this

phenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing Program

From the Relay Assembly Test Room the researchers for the first time became awareabout the existence of informal groups and the importance of social context of theorganizational life To probe deeper into this area in order to identify the factorsresponsible for human behavior they interviewed more than 20000 employees Thedirect questioning was later replaced by non-directive type of interviewing The studyrevealed that the workersrsquo social relationship inside the organizations has a significantinfluence on their attitude and behavior It was also found that merely giving a personan opportunity to talk and air his grievances has a beneficial effect on his moralePhase IV Bank Wiring Test Room

It had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the groupThus the Hawthorne study pointed out the following

The business organization is essentially a socio-technical entity where the processof social interactions among its members is also extremely important1048707 There is not necessarily a direct correspondence between working conditions andhigh production1048707 Economic motives are not the only motive for an employee Onersquos social needscan also significantly affect their behavior Employee-centered leaders alwaystend to be more effective than the task-oriented leaders1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization

Formal and Informal Organizations Elements of Organization Authority Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose Motivation Executive Effectiveness Organizational Equilibrium

Decision Theory Approach- Simon Concept of organization Decision making Bounded Rationality Administrative Man Organization Communication

Peter Drucker- Contemporary Approach Nature of Management Management Functions Organization Structure Federalism Management by Objectives (MBO) Organizational Changes

phenomenon to the followingbull Feeling of perceived importance among the group members as they werechosen to participate in the experimentbull Good relationship among the groupbull High group cohesion

Phase III Interviewing Program

From the Relay Assembly Test Room the researchers for the first time became awareabout the existence of informal groups and the importance of social context of theorganizational life To probe deeper into this area in order to identify the factorsresponsible for human behavior they interviewed more than 20000 employees Thedirect questioning was later replaced by non-directive type of interviewing The studyrevealed that the workersrsquo social relationship inside the organizations has a significantinfluence on their attitude and behavior It was also found that merely giving a personan opportunity to talk and air his grievances has a beneficial effect on his moralePhase IV Bank Wiring Test Room

It had been discovered that social groups in an organization have considerableinfluence on the functioning of the individual members Observers noted that incertain departments output had been restricted by the workers in complete disregardto the financial incentives offered by the organization Mayo decided to investigateone such department which was known as the bank wiring room where there werefourteen men working on an assembly lineIt was found that the group evolved its own production norms which were definitelymuch lower than that set by the authority This was done deliberately by the group toprotect the slow workers and because of the apprehension that if the pace ofproduction were increased a sizeable number of the workforce would eventually beredundant The group norm was so strictly adhered to by most of the group membersthat nobody dared to violate it for the fear of being ostracized by the group Anindividual who had emerged as the informal leader controlled the groupThus the Hawthorne study pointed out the following

The business organization is essentially a socio-technical entity where the processof social interactions among its members is also extremely important1048707 There is not necessarily a direct correspondence between working conditions andhigh production1048707 Economic motives are not the only motive for an employee Onersquos social needscan also significantly affect their behavior Employee-centered leaders alwaystend to be more effective than the task-oriented leaders1048707 The informal groups and not the individuals are the units of analysis in a group

Social Systems Approach- Chester BarnardAccording to this Approach Concept of organization

Formal and Informal Organizations Elements of Organization Authority Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose Motivation Executive Effectiveness Organizational Equilibrium

Decision Theory Approach- Simon Concept of organization Decision making Bounded Rationality Administrative Man Organization Communication

Peter Drucker- Contemporary Approach Nature of Management Management Functions Organization Structure Federalism Management by Objectives (MBO) Organizational Changes

Formal and Informal Organizations Elements of Organization Authority Functions of the Executive- Maintenance of org communication securing of essential services for achieving organizational purpose the formulation and definition of organizational purpose Motivation Executive Effectiveness Organizational Equilibrium

Decision Theory Approach- Simon Concept of organization Decision making Bounded Rationality Administrative Man Organization Communication

Peter Drucker- Contemporary Approach Nature of Management Management Functions Organization Structure Federalism Management by Objectives (MBO) Organizational Changes