Classical neoclassical and situational Theories of Management.ppt
ShilaSharma3
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Aug 26, 2024
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About This Presentation
Theories of Management for Nursing students
Slide Content
Theories of
Management
Management
Classical management theory
•scientific theory of management
•administrative management theory
•bureaucratic management theory
Neo-classical theory of management
•behavioral science approach
•human relation movement
Contemporary theory of management
•contingency approach
•systems theory
•chaos theory
Classical management theory
•scientific theory of management
•administrative management theory
•bureaucratic management theory
Neo-classical theory of management
•behavioral science approach
•human relation movement
Contemporary theory of management
•contingency approach
•systems theory
•chaos theory
The Evolution of Management Theory
What is classical management
theory ?
•Early management is popularly known as
classical management. In the late 19
th
century, the classical theories first
significant concentrated effort resulted in
the development of classical theory of
management and organization.
theory ?
•Early management is popularly known as
classical management. In the late 19
th
century, the classical theories first
significant concentrated effort resulted in
the development of classical theory of
management and organization.
•The classical theory developed in three
streams: scientific management,
administrative and bureaucracy,. They
were develop during almost same time
(1900-1915)
streams: scientific management,
administrative and bureaucracy,. They
were develop during almost same time
(1900-1915)
Scientific Management
•Defined by Frederick Taylor, late 1800’s.
•The systematic study of the relationships
between people and tasks to redesign the
work for higher efficiency.
–Taylor sought to reduce the time a worker
spent on each task by optimizing the way the
task was done.
•Defined by Frederick Taylor, late 1800’s.
•The systematic study of the relationships
between people and tasks to redesign the
work for higher efficiency.
–Taylor sought to reduce the time a worker
spent on each task by optimizing the way the
task was done.
Taylor’s Theory of Scientific Taylor’s Theory of Scientific
ManagementManagement
•Frederick Taylor (1856-1915)
– “The Father of Scientific
Management”
–Maximize worker capacity and profits
–PROBLEM: Get employees to work
at their maximum capacity
–PRIMARY FOCUS: TASKS
ManagementManagement
•Frederick Taylor (1856-1915)
– “The Father of Scientific
Management”
–Maximize worker capacity and profits
–PROBLEM: Get employees to work
at their maximum capacity
–PRIMARY FOCUS: TASKS
Frederick Taylor
•Efficiency Expert in U.S.
Steel Industry
•Invented New Tool Designs
and Handling Methods
•Designed Stop-Watch Task
Timing
•Created Piece-Rate
Payment Scheme
•Developed Industrial
Departments
•Efficiency Expert in U.S.
Steel Industry
•Invented New Tool Designs
and Handling Methods
•Designed Stop-Watch Task
Timing
•Created Piece-Rate
Payment Scheme
•Developed Industrial
Departments
Time Studies and the Piece-Rate System
•Studied most efficient
worker
•Used stop-watch timing
to measure each
production step
•Eliminated any
unnecessary movements
•Designed standardized
instruction cards for
employees
•Employees paid for
meeting the established
rate of production
•Studied most efficient
worker
•Used stop-watch timing
to measure each
production step
•Eliminated any
unnecessary movements
•Designed standardized
instruction cards for
employees
•Employees paid for
meeting the established
rate of production
Henry Gannt
•Worked with Taylor at Midvale Steel
Company
•Specialized in incentive wage plans
•Introduced a differential piece rate system –
Task work with a bonus
•Permitted workers to improve the production
system
•Introduced a bonus for foremen based on the
number of their workers who earned bonus
•Worked with Taylor at Midvale Steel
Company
•Specialized in incentive wage plans
•Introduced a differential piece rate system –
Task work with a bonus
•Permitted workers to improve the production
system
•Introduced a bonus for foremen based on the
number of their workers who earned bonus
Gannt Chart Information
•Developed to help
industrial age managers
plan for mass
production
•Visual display used to
schedule based on time
•Developed to help
industrial age managers
plan for mass
production
•Visual display used to
schedule based on time
Frank and Lillian Gilbreth
- Associates of Fredrick
Winslow Taylor, their work
was intertwined with his
and their motion studies
predated Taylor’s system
first published in 1903.
- Developed the laws of
human motion from which
evolved the principles of
motion economy
- Associates of Fredrick
Winslow Taylor, their work
was intertwined with his
and their motion studies
predated Taylor’s system
first published in 1903.
- Developed the laws of
human motion from which
evolved the principles of
motion economy
Frank and Lillian Gilbreth
• Pioneers in the field of motion studies and provided the
foundation for job simplification, meaningful work, and
incentive wage plans.
•Analyzed each motion of work for wasted efforts in an
attempt to reduce each task to the smallest amount of
expended time and energy.
•Professed: effective training, effective work methods,
improved work environment, positive psychological
perspective.
•Made the connection between standardization and
efficiency
•Believed that time could not be separated from motion; the
two were intertwined.
• Pioneers in the field of motion studies and provided the
foundation for job simplification, meaningful work, and
incentive wage plans.
•Analyzed each motion of work for wasted efforts in an
attempt to reduce each task to the smallest amount of
expended time and energy.
•Professed: effective training, effective work methods,
improved work environment, positive psychological
perspective.
•Made the connection between standardization and
efficiency
•Believed that time could not be separated from motion; the
two were intertwined.
Frank and Lillian Gilbreth
•Systematically examined how repetitive tasks were
performed
•These repetitive tasks were broken down into Therbligs,
which are systems for analyzing the motions involved in
performing a task. This consisted of identification of
individual motions, as well as moments of delay in the
process, designed to find unnecessary or inefficient
motions and to utilize or eliminate even split seconds of
wasted time.
• Invented and refined Therbligs roughly between 1908 and
1924. Each Therblig had a mnemonic symbol and
standard color for charting
•Systematically examined how repetitive tasks were
performed
•These repetitive tasks were broken down into Therbligs,
which are systems for analyzing the motions involved in
performing a task. This consisted of identification of
individual motions, as well as moments of delay in the
process, designed to find unnecessary or inefficient
motions and to utilize or eliminate even split seconds of
wasted time.
• Invented and refined Therbligs roughly between 1908 and
1924. Each Therblig had a mnemonic symbol and
standard color for charting
Luther Hasley Gulick
•Believed that public administration could have
made more effective if it were practiced according
to a set of guidelines.
•All organizations are characterized by a tension
between the need for division and the need for
coordination.
•Work division is the foundation of organization.
•Gulick believed that, labor divided makes for
efficiency, but only if the labor and its outputs are
harmonized with the organization’s goals
•Believed that public administration could have
made more effective if it were practiced according
to a set of guidelines.
•All organizations are characterized by a tension
between the need for division and the need for
coordination.
•Work division is the foundation of organization.
•Gulick believed that, labor divided makes for
efficiency, but only if the labor and its outputs are
harmonized with the organization’s goals
Organization of Work Units -
Gulick
•By Purpose – the aims of the work unit
•By Process – what the unit actually does
•By Clientele – work with similar materials
or clients
•By Location – organized together due to
geographic location, regardless of function
Gulick
•By Purpose – the aims of the work unit
•By Process – what the unit actually does
•By Clientele – work with similar materials
or clients
•By Location – organized together due to
geographic location, regardless of function
Seven Administrative
Procedures - Gulick
• Planning
• Organizing
• Staffing
•
Directing
•
Coordinating
•
Reporting
• Budgeting
Procedures - Gulick
• Planning
• Organizing
• Staffing
•
Directing
•
Coordinating
•
Reporting
• Budgeting
Four principle of scientific
management
•Develop a science for each element of a
man’s work, which replaces the old rule of
thumb method.
•Scientifically select and then train, teach and
develop the workman.
•Management should heartily cooperate with
men.
•Equal division of the work and responsibility
between the management and workmen.
management
•Develop a science for each element of a
man’s work, which replaces the old rule of
thumb method.
•Scientifically select and then train, teach and
develop the workman.
•Management should heartily cooperate with
men.
•Equal division of the work and responsibility
between the management and workmen.
Administrative
Management Theory
Management Theory
Administrative Management Theory
•Administrative Management
–The study of how to create
an organizational structure
that leads to high
efficiency and
effectiveness.
•Administrative Management
–The study of how to create
an organizational structure
that leads to high
efficiency and
effectiveness.
•While Taylor’s Scientific management was
primarily concerned with increasing the
productivity of the shop and the individual
worker, Administrative Management
Theory of Fayol focused on the
development of broad administrative
principles applicable to general and higher
managerial levels.
•Henri Fayol is considered as father of
Administrative Management Theory.
primarily concerned with increasing the
productivity of the shop and the individual
worker, Administrative Management
Theory of Fayol focused on the
development of broad administrative
principles applicable to general and higher
managerial levels.
•Henri Fayol is considered as father of
Administrative Management Theory.
•Other contributors to this school of thought include
Mary Parker Follette (1868-1933) and Chester Irving
Barnard (1886-1961).
Mary Parker Follette (1868-1933) and Chester Irving
Barnard (1886-1961).
HENRI FAYOL (1841-1925)
"To manage is to forecast
and to plan, to organise, to
command, to coordinate and
to control".
- Henri Fayol
"To manage is to forecast
and to plan, to organise, to
command, to coordinate and
to control".
- Henri Fayol
First management thinker who provided the
conceptual framework of the functions of
management in his book.
Due to his contribution to management theory and
principles, Henry Fayol is rightly treated as the
Father of Modern Management Thought.
conceptual framework of the functions of
management in his book.
Due to his contribution to management theory and
principles, Henry Fayol is rightly treated as the
Father of Modern Management Thought.
Administrative Management Theory
The functions of management according to Fayol
are:
1. Planning
2.Organising
3.Commanding
4.Coordinating
5.Controlling
The functions of management according to Fayol
are:
1. Planning
2.Organising
3.Commanding
4.Coordinating
5.Controlling
Henri Fayol’s 14 Principles of Management
1.Division of Labor
•Job Specialization and well divided labor should
increase efficiency.
1.Division of Labor
•Job Specialization and well divided labor should
increase efficiency.
Henri Fayol’s 14 Principles of Management
2. Authority and Responsibility
•Managers have the right to give orders and demand
obedience (formal).
•Managers gain authority derived from expertise,
technical knowledge, moral worth, and ability to
lead and generate commitments from subordinates
(informal).
2. Authority and Responsibility
•Managers have the right to give orders and demand
obedience (formal).
•Managers gain authority derived from expertise,
technical knowledge, moral worth, and ability to
lead and generate commitments from subordinates
(informal).
Henri Fayol’s 14 Principles of Management
3. Unity of Command
•An employee should receive orders from only one
superior.
3. Unity of Command
•An employee should receive orders from only one
superior.
Henri Fayol’s 14 Principles of Management
4. Line of Authority
•Clearly defined and limited chain of command from
the top to the bottom levels.
•Allows for cross departmental interaction of middle
managers to speed decision making.
4. Line of Authority
•Clearly defined and limited chain of command from
the top to the bottom levels.
•Allows for cross departmental interaction of middle
managers to speed decision making.
Henri Fayol’s 14 Principles of Management
5. Centralization/Decentralization
•Authority should not be concentrated at the top of the
chain of command because it slows down decision
making.
•Centralization at the top may be necessary when it is
vital that the organization’s strategy be firmly adhere
to.
5. Centralization/Decentralization
•Authority should not be concentrated at the top of the
chain of command because it slows down decision
making.
•Centralization at the top may be necessary when it is
vital that the organization’s strategy be firmly adhere
to.
Henri Fayol’s 14 Principles of Management
6. Unity of Direction
•An organization should have a single plan of action to
guide managers and workers.
6. Unity of Direction
•An organization should have a single plan of action to
guide managers and workers.
Henri Fayol’s 14 Principles of Management
7. Equity
•All members of an organization are entitled to be
treated with justice and respect.
7. Equity
•All members of an organization are entitled to be
treated with justice and respect.
Henri Fayol’s 14 Principles of Management
8. Order
•Both employees and material need to be at the right
place and at the right time.
8. Order
•Both employees and material need to be at the right
place and at the right time.
Henri Fayol’s 14 Principles of Management
9. Initiative
•Managers should allow employees to be innovative
and creative.
9. Initiative
•Managers should allow employees to be innovative
and creative.
Henri Fayol’s 14 Principles of Management
10. Discipline
•Managers need to create a workforce that strive to
achieve organizational goals.
10. Discipline
•Managers need to create a workforce that strive to
achieve organizational goals.
Henri Fayol’s 14 Principles of Management
11. Remuneration of Personnel
•System that managers use to reward employees
should be equitable for both employees and the
organization.
11. Remuneration of Personnel
•System that managers use to reward employees
should be equitable for both employees and the
organization.
Henri Fayol’s 14 Principles of Management
12. Stability of Tenure of Personnel
•Recognition that long-term employees develop skills
that can improve organizational efficiency.
12. Stability of Tenure of Personnel
•Recognition that long-term employees develop skills
that can improve organizational efficiency.
Henri Fayol’s 14 Principles of Management
13. Subordination of Individual Interests to the
Common Interest
•Employees should understand how their performance
affects the performance of the whole organization.
13. Subordination of Individual Interests to the
Common Interest
•Employees should understand how their performance
affects the performance of the whole organization.
Henri Fayol’s 14 Principles of Management
14. Esprit de Corps
•Managers should encourage the development of
shared feelings of comradeship, enthusiasm, or
devotion to a common cause.
- Comes about by encouraging
communication between managers and workers
to solve problems and implement solutions.
14. Esprit de Corps
•Managers should encourage the development of
shared feelings of comradeship, enthusiasm, or
devotion to a common cause.
- Comes about by encouraging
communication between managers and workers
to solve problems and implement solutions.
•Fayol proposed that all operations in business
organization can be classified under six headings
(Fayol’s six):-
1.Technical (production)
2.Commercial (buying and selling)
3.Financial (use of capital)
4.Security (protection of property and persons)
5.Accounting (including statistics)
6.Administrative (POCCC)
organization can be classified under six headings
(Fayol’s six):-
1.Technical (production)
2.Commercial (buying and selling)
3.Financial (use of capital)
4.Security (protection of property and persons)
5.Accounting (including statistics)
6.Administrative (POCCC)
Mary Parker Follett(1868-1933)
•One of the two great management gurus (another was
Lillian Gilbreth).
•Main concern of modern management was better
human relations in industry.
•Encouraged managers to allow employees to
participate in decision making .
•One of the two great management gurus (another was
Lillian Gilbreth).
•Main concern of modern management was better
human relations in industry.
•Encouraged managers to allow employees to
participate in decision making .
•Four principles of coordination and cooperation
emerged from this stress on the interaction of
management and workers
i.Early start
ii.Direct contact
iii.Continuity
iv.Integration of efforts of people
emerged from this stress on the interaction of
management and workers
i.Early start
ii.Direct contact
iii.Continuity
iv.Integration of efforts of people
Chester Irving Barnard (1886-1961)
•Former president of New Jersey Bell telephone
company, landmark book “The functions of the
executive in 1938”.
•Viewed organization as a social system that requires
human cooperation.
•Argued that people join organizations to satisfy some
of their personal objectives.
•Organization should satisfy personal goals while
pursuing organizational goals.
•Former president of New Jersey Bell telephone
company, landmark book “The functions of the
executive in 1938”.
•Viewed organization as a social system that requires
human cooperation.
•Argued that people join organizations to satisfy some
of their personal objectives.
•Organization should satisfy personal goals while
pursuing organizational goals.
•Introduced the idea of informal organization.
•Informal organizations provide a balance to the
power of formal organizations over its workforce.
•Developed the acceptance theory of management.
•Informal organizations provide a balance to the
power of formal organizations over its workforce.
•Developed the acceptance theory of management.
CONTRIBUTIONS
•Fayol's major contribution was to identify
management as a separate set of skill or functions
performed by managers in the organizations.
•Fayol was the first thinker who emphasized, for the
first time the necessity of formal education and
training in management.
•He provided conceptual framework for analyzing the
management process and emphasized that
management was a separate, distinct activity.
•Fayol's major contribution was to identify
management as a separate set of skill or functions
performed by managers in the organizations.
•Fayol was the first thinker who emphasized, for the
first time the necessity of formal education and
training in management.
•He provided conceptual framework for analyzing the
management process and emphasized that
management was a separate, distinct activity.
LIMITATIONS
Theory based on intuition and observation rather than
on empirical investigation.
Management Oriented
Lack of Importance to Informal Organization
Superficial, oversimplified and lack of realism
Mechanical Approach
Theory based on intuition and observation rather than
on empirical investigation.
Management Oriented
Lack of Importance to Informal Organization
Superficial, oversimplified and lack of realism
Mechanical Approach
Criticism of Administrative Management
Theory
•Management Oriented Theory
•Lack of Importance to Informal Organization
•Concepts Borrowed From Military Science
•Mechanical Approach
•Untested assumptions
Theory
•Management Oriented Theory
•Lack of Importance to Informal Organization
•Concepts Borrowed From Military Science
•Mechanical Approach
•Untested assumptions
Bureaucratic Management
Introduction
•Bureaucracies are all around us - this form
of organization, which is comprised of non-
elected officials who implement rules, is
not only common in the public sector but in
the business world as well.
•Bureaucracies are all around us - this form
of organization, which is comprised of non-
elected officials who implement rules, is
not only common in the public sector but in
the business world as well.
Bureaucracy
•Dalton McFarland has defined bureaucracy as a
system of organization and management in
which roles, tasks and relationship among
people and position are clearly defined, carefully
prescribed and controlled in accordance with
formal authority.
•Dalton McFarland has defined bureaucracy as a
system of organization and management in
which roles, tasks and relationship among
people and position are clearly defined, carefully
prescribed and controlled in accordance with
formal authority.
Bureaucratic management
•The term Bureaucratic management may
be described as “a formal system of
organization based on clearly defined
hierarchical levels and roles in order to
maintain efficiency and effectiveness.”
•It is merely a type of structure
conceptualized to organize large groups of
people.
•The term Bureaucratic management may
be described as “a formal system of
organization based on clearly defined
hierarchical levels and roles in order to
maintain efficiency and effectiveness.”
•It is merely a type of structure
conceptualized to organize large groups of
people.
Contributor
•Max Weber (1864-1920)
was a German
sociologist and political
economist
•Early 20
th
century
• Father of the
bureaucratic
management theory.
•Max Weber (1864-1920)
was a German
sociologist and political
economist
•Early 20
th
century
• Father of the
bureaucratic
management theory.
Features of Bureaucracy
•Division of work and specialization:
This process goes on till the job of an
individual becomes highly specific.
•Rules and procedure
well defined rules and procedures that
regulate the conduct of work
•Hierarchy of position
The bureaucratic structure is hierarchical in
nature. It is like a pyramid . Every position is
controlled by a higher one.
•Division of work and specialization:
This process goes on till the job of an
individual becomes highly specific.
•Rules and procedure
well defined rules and procedures that
regulate the conduct of work
•Hierarchy of position
The bureaucratic structure is hierarchical in
nature. It is like a pyramid . Every position is
controlled by a higher one.
Contd…
•Impersonal Relation
There is no room for emotions and
sentiments.
•Staffing
The personnel are employed by a
contractual relationship between the
employee and employer based on
their qualifications.
•Impersonal Relation
There is no room for emotions and
sentiments.
•Staffing
The personnel are employed by a
contractual relationship between the
employee and employer based on
their qualifications.
Contd…
•Technical competence
The bureaucrats are neither elected nor
inherited but they are appointed through
selection based on technical competence.
•Extensive filing system of official records
The decisions and activities of the organizations
are formally recorded and preserved safely for
future references.
Note: Any organizations characterized by above
features are considered as ideal bureaucracy.
•Technical competence
The bureaucrats are neither elected nor
inherited but they are appointed through
selection based on technical competence.
•Extensive filing system of official records
The decisions and activities of the organizations
are formally recorded and preserved safely for
future references.
Note: Any organizations characterized by above
features are considered as ideal bureaucracy.
Types
•According to Mintzberg bureaucracy is of 2
types
1.Machine Bureaucracy: Weber’s ideal
bureaucracy
2.Professional Bureaucracy
•According to Mintzberg bureaucracy is of 2
types
1.Machine Bureaucracy: Weber’s ideal
bureaucracy
2.Professional Bureaucracy
Professional Bureaucracy
•When the organizational environments are rapidly
changing and when the operations are highly
complex, there is a tendency on the part of the
organization to become professionally bureaucratic.
• E.g. hospitals
•When the organizational environments are rapidly
changing and when the operations are highly
complex, there is a tendency on the part of the
organization to become professionally bureaucratic.
• E.g. hospitals
Contd…
•Here the external environments are subject to
change and satisfaction of the client is of utmost
importance.
•It is decentralized as professionals are free to
make decisions at their level regarding the
services to be provided to the client.
•Here the external environments are subject to
change and satisfaction of the client is of utmost
importance.
•It is decentralized as professionals are free to
make decisions at their level regarding the
services to be provided to the client.
Principles
1.In a bureaucracy, a manager’s formal authority
derives from the position he or she holds in the
organization.
2.In a bureaucracy, people should occupy positions
because of their performance, not because of their
social standing.
3.The extent of each position’s formal authority and
task responsibilities, and its relationship to other
positions in the organization should be clearly
specified.
1.In a bureaucracy, a manager’s formal authority
derives from the position he or she holds in the
organization.
2.In a bureaucracy, people should occupy positions
because of their performance, not because of their
social standing.
3.The extent of each position’s formal authority and
task responsibilities, and its relationship to other
positions in the organization should be clearly
specified.
Contd…….
4.Authority can be exercised effectively in an
organization when positions are arranged
hierarchically, so employees know whom to
report to and who reports to them.
5.Managers must create a well defined
system of rules, standard operating
procedures, and norms so that they can
effectively control behavior within an
organization.
4.Authority can be exercised effectively in an
organization when positions are arranged
hierarchically, so employees know whom to
report to and who reports to them.
5.Managers must create a well defined
system of rules, standard operating
procedures, and norms so that they can
effectively control behavior within an
organization.
Advantages
•Continuity
Its viability does not depend upon a single
executive or a group of executives.
Executives and employees are replaceable.
•Consistency of action
Being relatively permanent and stable, the
large bureaucracy tends to build a
reputation for consistency of action.
•Continuity
Its viability does not depend upon a single
executive or a group of executives.
Executives and employees are replaceable.
•Consistency of action
Being relatively permanent and stable, the
large bureaucracy tends to build a
reputation for consistency of action.
•Narrow span of control
Managers have a narrow span of control
and can maintain close supervision of
their employees
•Rationality
Official hierarchy is clearly defined,
communication is simple,
understandable and efficient and
departments are effectively linked
Managers have a narrow span of control
and can maintain close supervision of
their employees
•Rationality
Official hierarchy is clearly defined,
communication is simple,
understandable and efficient and
departments are effectively linked
•Predictability of behavior
Since a particular department is carrying out
the particular assigned function for long
period of time, the top level management
can predict the capacity of the department.
•Efficiency/Effectiveness
Rationality, predictability and rightful division
of labor leading to specialization leads to
efficiency
Since a particular department is carrying out
the particular assigned function for long
period of time, the top level management
can predict the capacity of the department.
•Efficiency/Effectiveness
Rationality, predictability and rightful division
of labor leading to specialization leads to
efficiency
•Reduces favoritism
Bureaucracy sought to bring about
objectivity to employee selection by means
of qualifications
•Employee Commitment.
Employees working in bureaucracies have
job security because of life time
employment. This nurture more loyalty and
commitment to the organization.
Bureaucracy sought to bring about
objectivity to employee selection by means
of qualifications
•Employee Commitment.
Employees working in bureaucracies have
job security because of life time
employment. This nurture more loyalty and
commitment to the organization.
Disadvantages
•Trained incapacity
It rules out the possibility of introducing new
technologies and new methods of solving
problem and eventually the organization has
to beat the opportunity cost.
•Rigid Behavior
Standard operating procedures are instituted
and control consists largely in ensuring that
these procedures are in fact followed.
•Trained incapacity
It rules out the possibility of introducing new
technologies and new methods of solving
problem and eventually the organization has
to beat the opportunity cost.
•Rigid Behavior
Standard operating procedures are instituted
and control consists largely in ensuring that
these procedures are in fact followed.
•Slow communication
Due to its tall organizational structure, flow of
communication is very slow.
•Delay in decision
Slow communication process leads to delay in
decision making.
•Client’s dissatisfaction
Delay decision making hinders provision of
effective service which leads to client
dissatisfaction.
Due to its tall organizational structure, flow of
communication is very slow.
•Delay in decision
Slow communication process leads to delay in
decision making.
•Client’s dissatisfaction
Delay decision making hinders provision of
effective service which leads to client
dissatisfaction.
•Goal displacement
Goal displacement occurs when the
organizational goals are displaced by
subunit or personal goals.
•Hoarding Authority/ Concentration of
power
The bureaucrats holds authority, attempts to
gather as much authority as possible
though he is not capable of performing the
related activities.
Goal displacement occurs when the
organizational goals are displaced by
subunit or personal goals.
•Hoarding Authority/ Concentration of
power
The bureaucrats holds authority, attempts to
gather as much authority as possible
though he is not capable of performing the
related activities.
•Bureaucratic sabotage
Working staff may sometime try to fail the superior
/manager by hiding the information or failing to feel
accountable for the task assigned.
•Conflict between professional and bureaucrats
Professionals: Qualified personnel
Bureaucrats: Line managers
•Bureaucrats avoid responsibility.
In time of taking some major decisions , bureaucrats
may hide behind the rules and regulations of the
organization.
Working staff may sometime try to fail the superior
/manager by hiding the information or failing to feel
accountable for the task assigned.
•Conflict between professional and bureaucrats
Professionals: Qualified personnel
Bureaucrats: Line managers
•Bureaucrats avoid responsibility.
In time of taking some major decisions , bureaucrats
may hide behind the rules and regulations of the
organization.
Neoclassical theory of
ma
nagement
ma
nagement
B
EHAVIOURAL AND HUMAN RELATION
M
OVEMENT THEORY
The classical theory ignored employee
motivation and behaviour.
As management research continued in the
begining of 20th century, questions began to
come up in regard to the interactions and
motivation of the individual within the
organization.
EHAVIOURAL AND HUMAN RELATION
M
OVEMENT THEORY
The classical theory ignored employee
motivation and behaviour.
As management research continued in the
begining of 20th century, questions began to
come up in regard to the interactions and
motivation of the individual within the
organization.
Backgro
und (cont……)
The dehumanizing effect of the classical
management theory led to the emergence of
Neoclassical theory .
It focuses on behavioural and human relation
movement.
Behavioural theory is also called the Human
relation movement because it addresses the
human dimension of work.
und (cont……)
The dehumanizing effect of the classical
management theory led to the emergence of
Neoclassical theory .
It focuses on behavioural and human relation
movement.
Behavioural theory is also called the Human
relation movement because it addresses the
human dimension of work.
b
ehavioural theory cont..
The theory focuses on people.
Are concerned with the understanding of human
attitude, behaviour and group process in
organization settings.
Focus on employee satisfaction and human
capabilities
ehavioural theory cont..
The theory focuses on people.
Are concerned with the understanding of human
attitude, behaviour and group process in
organization settings.
Focus on employee satisfaction and human
capabilities
B
EHAVIOURAL tHEORY (cont…)
Stress people part of management and concentrate on
social and psychological factor.
Emphasis “it is not qualities posses by the leader but the
way he behaves with his followers”
Manager needs a better understanding of human
behaviour at work.
It is not what leaders are but what they do that counts.
EHAVIOURAL tHEORY (cont…)
Stress people part of management and concentrate on
social and psychological factor.
Emphasis “it is not qualities posses by the leader but the
way he behaves with his followers”
Manager needs a better understanding of human
behaviour at work.
It is not what leaders are but what they do that counts.
B
EHAVIOURAL THEORY cont……..
Is based on the assumption that people can
trained to become leader/manager.
Also called the Human relation movement
because it addresses the human dimension of
work.
EHAVIOURAL THEORY cont……..
Is based on the assumption that people can
trained to become leader/manager.
Also called the Human relation movement
because it addresses the human dimension of
work.
H
uman relation movement THEORY
Human relation movement emerged around the
middle of 20th century.
Grew out of the Hawthorne studies.
Proposed that workers respond primarily to the social
context of work, including social conditioning, group
norms, and interpersonal dynamics.
Human relation theory stresses the social
environment
Focuses on human side of an organization,
considering human resources as the key element for
the organizational productivity
uman relation movement THEORY
Human relation movement emerged around the
middle of 20th century.
Grew out of the Hawthorne studies.
Proposed that workers respond primarily to the social
context of work, including social conditioning, group
norms, and interpersonal dynamics.
Human relation theory stresses the social
environment
Focuses on human side of an organization,
considering human resources as the key element for
the organizational productivity
H
uman relation movement THEORY
co
nt….
Assumed that the manager’s concern for workers
would lead to increased worker satisfaction and
improved worker performance
chief concern of human relation movements are:
individual, group process, interpersonal
relationship, leadership and communication.
The main goal of was to create an efficient
workplace without sacrificing the motivation of
employee.
uman relation movement THEORY
co
nt….
Assumed that the manager’s concern for workers
would lead to increased worker satisfaction and
improved worker performance
chief concern of human relation movements are:
individual, group process, interpersonal
relationship, leadership and communication.
The main goal of was to create an efficient
workplace without sacrificing the motivation of
employee.
H
awthrone studies
conducted at the Hawthrone plant of the
western electric company during the late 1920
and early 1930 under the guidance of Elton
Myo.
mark the beginning of human relation theory
awthrone studies
conducted at the Hawthrone plant of the
western electric company during the late 1920
and early 1930 under the guidance of Elton
Myo.
mark the beginning of human relation theory
H
awthrone studies
consisted a series of experiments that focused
on behaviour in the work place.
Illumination experiments:
Relay assembly test room experiment
Interviewing programme:
Bank wiring observation room
awthrone studies
consisted a series of experiments that focused
on behaviour in the work place.
Illumination experiments:
Relay assembly test room experiment
Interviewing programme:
Bank wiring observation room
H
awthrone studies
Finding of the study:
Social acceptance influenced work performance.
Recognition and appreciation are important for
productivity.
Social setting and group cohesion are important for
productivity.
Team work improves efficiency.
awthrone studies
Finding of the study:
Social acceptance influenced work performance.
Recognition and appreciation are important for
productivity.
Social setting and group cohesion are important for
productivity.
Team work improves efficiency.
H
awthrone effect
“Is the phenomenon in which subjects in
behavioral studies change their performance in
response to being observed” --- Roethlisberger
Fellowship and self respect influence worker
behaviour.
people who are singled out for special attention
tend to improve their performance.
awthrone effect
“Is the phenomenon in which subjects in
behavioral studies change their performance in
response to being observed” --- Roethlisberger
Fellowship and self respect influence worker
behaviour.
people who are singled out for special attention
tend to improve their performance.
H
AWTHRONE STUDIES CONCLUSION
Productivity is not just affected by physical
environment, incentives (rest period, length of day
working, method of payment etc)
Factors such as support from fellow, norms
established by the work group, opportunity to
participate in decision making and recognition from
administration all influence productivity.
Effective supervision plays an important role in
maintaining employee morale and productivity
AWTHRONE STUDIES CONCLUSION
Productivity is not just affected by physical
environment, incentives (rest period, length of day
working, method of payment etc)
Factors such as support from fellow, norms
established by the work group, opportunity to
participate in decision making and recognition from
administration all influence productivity.
Effective supervision plays an important role in
maintaining employee morale and productivity
C
ONTRIBUTORS TO THE theories:
George Elton Mayo: - conducted hawthrone studies
Marry parker Follett
Chester I barnard
MUNSTERBERG
Kurt Lewin
George McGragger
Abhram Maslow
ONTRIBUTORS TO THE theories:
George Elton Mayo: - conducted hawthrone studies
Marry parker Follett
Chester I barnard
MUNSTERBERG
Kurt Lewin
George McGragger
Abhram Maslow
GEORGE ELTON MAYO:
George Elton Mayo (December 26, 1880 - September
7, 1949) was an Australian psychologist, sociologist
founder of the Human Relations movement.
His research includes the Hawthorne Studies
George Elton Mayo (December 26, 1880 - September
7, 1949) was an Australian psychologist, sociologist
founder of the Human Relations movement.
His research includes the Hawthorne Studies
•He concluded that people's work performance is
dependent on both social issues and job content.
•Mayo's studies contributed to the behaviorism
movement in management as managers became
more aware of the "soft" skills that are
important to successful management.
dependent on both social issues and job content.
•Mayo's studies contributed to the behaviorism
movement in management as managers became
more aware of the "soft" skills that are
important to successful management.
Major contribution:
•Stressed importance of human and social
factor in industrial relationships
•Question on over emphasis on technical
skills
•Extensive studies at the hawthorne
•Stressed importance of human and social
factor in industrial relationships
•Question on over emphasis on technical
skills
•Extensive studies at the hawthorne
MARY PARKER FOLLETT (SEPTEMBER
3, 1868 – DECEMBER 18, 1933)
•American social worker, management
consultant, and pioneer in the fields of
organizational theory and organizational
behavior
•presenting the worker as more than just a
machine.
3, 1868 – DECEMBER 18, 1933)
•American social worker, management
consultant, and pioneer in the fields of
organizational theory and organizational
behavior
•presenting the worker as more than just a
machine.
•Human element in the work place was
important.
•Manager should motivate performance rather
than demand it.
• Management should achieve integrative
unity through co ordination, co-operation,
unity and self control serves as key to
productivity.
important.
•Manager should motivate performance rather
than demand it.
• Management should achieve integrative
unity through co ordination, co-operation,
unity and self control serves as key to
productivity.
Contribution
•Led in practical observations about the
value of human relation to the basic
principles of organization
•Led in practical observations about the
value of human relation to the basic
principles of organization
Chester I barnard(1986-1961)
•Young chief executive in big company
•Young chief executive in big company
Chief contribution
•Social factor in organization
•Non financial motive
•Informal organization
•Acceptance theory of authority
•System approach in organization
•Strategic position of the executive
•Principles of communication
•Social factor in organization
•Non financial motive
•Informal organization
•Acceptance theory of authority
•System approach in organization
•Strategic position of the executive
•Principles of communication
MUNSTERBERG
•Hugo Munsterberg (June 1, 1863 – December 19,
1916) was a German-American psychologist. He
was one of the pioneers in applied psychology
•focuses on topics such as hiring workers who had
personalities and mental abilities best suited to
certain types of vocations, as well as ways to
increase motivation,
performance, and retention.
•Hugo Munsterberg (June 1, 1863 – December 19,
1916) was a German-American psychologist. He
was one of the pioneers in applied psychology
•focuses on topics such as hiring workers who had
personalities and mental abilities best suited to
certain types of vocations, as well as ways to
increase motivation,
performance, and retention.
LEWIN THEORY (1890-1947)
• Lewin focus on the group dynamics.
• Lewin advocate democratic
supervision
• Lewin focus on the group dynamics.
• Lewin advocate democratic
supervision
Contribution
• Develop theory of group dynamic
• Develop theory of group dynamic
Theory of human need (Abraham
Maslow’s)
•He was a practicing psychologist, developed one of the
most widely recognized need theories, a theory of
motivation based upon a consideration of human needs.
His theory of human needs had three assumptions:
•Human needs are never completely satisfied.
•Human behavior is purposeful and is motivated by the
need for satisfaction.
•Need can be classified according to a hierarchical
structure of importance, from the lowest to highest.
Maslow’s)
•He was a practicing psychologist, developed one of the
most widely recognized need theories, a theory of
motivation based upon a consideration of human needs.
His theory of human needs had three assumptions:
•Human needs are never completely satisfied.
•Human behavior is purposeful and is motivated by the
need for satisfaction.
•Need can be classified according to a hierarchical
structure of importance, from the lowest to highest.
Maslow’s hierarchy of needs:
•Physiological needs. Maslow grouped all
physical needs necessary for maintaining
basic human wellbeing, such as food and
‐
drink, into this category. After the need is
satisfied, however, it is no longer is a
motivator.
•Physiological needs. Maslow grouped all
physical needs necessary for maintaining
basic human wellbeing, such as food and
‐
drink, into this category. After the need is
satisfied, however, it is no longer is a
motivator.
•Safety needs. These needs include the
need for basic security, stability,
protection, and freedom from fear. A
normal state exists for an individual to
have all these needs generally satisfied.
Otherwise, they become primary
motivators.
need for basic security, stability,
protection, and freedom from fear. A
normal state exists for an individual to
have all these needs generally satisfied.
Otherwise, they become primary
motivators.
•Belonging and love needs. After the
physical and safety needs are satisfied
and are no longer motivators, the need for
belonging and love emerges as a primary
motivator. The individual strives to
establish meaningful relationships with
significant others.
physical and safety needs are satisfied
and are no longer motivators, the need for
belonging and love emerges as a primary
motivator. The individual strives to
establish meaningful relationships with
significant others.
•Esteem needs. An individual must
develop selfconfidence and wants to
‐
achieve status, reputation, fame, and
glory.
•Self‐actualization needs. Assuming that
all the previous needs in the hierarchy are
satisfied, an individual feels a need to find
himself.
develop selfconfidence and wants to
‐
achieve status, reputation, fame, and
glory.
•Self‐actualization needs. Assuming that
all the previous needs in the hierarchy are
satisfied, an individual feels a need to find
himself.
Douglas McGregor
•He developed the most influential approach.
He contributed to management thinking
through his work on attitudes.
•He observed that some people have
sympathy, kindness and love for others.
Others have tendencies toward cruelty, hate
and destruction.
•McGregor introduced such a dual nature of
people into management theory.
•He developed the most influential approach.
He contributed to management thinking
through his work on attitudes.
•He observed that some people have
sympathy, kindness and love for others.
Others have tendencies toward cruelty, hate
and destruction.
•McGregor introduced such a dual nature of
people into management theory.
•He proposed that two different sets of
assumptions dominate the way managers
think about the people.
•He named these contrasting sets of
assumptions Theory X and Theory Y as
mentioned in following table:
assumptions dominate the way managers
think about the people.
•He named these contrasting sets of
assumptions Theory X and Theory Y as
mentioned in following table:
•Theory X represents the traditional view of
managing workers and of working.
•It rests on an essentially negative view of
people. It assumes that the subordinates
have little ambition, dislike work and wants
to avoid responsibility.
•In other words, the subordinates are
characterized as irresponsible, selfish and
apathetic.
managing workers and of working.
•It rests on an essentially negative view of
people. It assumes that the subordinates
have little ambition, dislike work and wants
to avoid responsibility.
•In other words, the subordinates are
characterized as irresponsible, selfish and
apathetic.
•Thus managers who evaluate worker
behavior from this point of view adopt
restrictive controls and close supervision.
•They adopt a work-centered organization
that relies on the concept of authority and
command.
•Such organizations are often called
authoritarian organizations.
behavior from this point of view adopt
restrictive controls and close supervision.
•They adopt a work-centered organization
that relies on the concept of authority and
command.
•Such organizations are often called
authoritarian organizations.
•Theory Y, on the other hand, rests on a
positive view of people. It assumes that
people can exercise self-direction and self-
control.
•They accept responsibility.
•Those who adhere to theory Y emphasize
democratic style of management in their
organizations, which are often called
participative organizations.
positive view of people. It assumes that
people can exercise self-direction and self-
control.
•They accept responsibility.
•Those who adhere to theory Y emphasize
democratic style of management in their
organizations, which are often called
participative organizations.
•The implication of this theory is that the
managers must recognize the need
pattern of each worker. It should, however,
be noted that the needs of the worker are
different. Therefore, a single approach
cannot be used to motivate all workers
towards the accomplishment of the
organizational objectives.
managers must recognize the need
pattern of each worker. It should, however,
be noted that the needs of the worker are
different. Therefore, a single approach
cannot be used to motivate all workers
towards the accomplishment of the
organizational objectives.
•Further, the managers should also be
aware of the fact that the well satisfied
needs do not motivate.
•After obtaining a reasonable fulfillment of
lower level needs, workers will be
stimulated to direct their actions toward
satisfying higher level needs.
aware of the fact that the well satisfied
needs do not motivate.
•After obtaining a reasonable fulfillment of
lower level needs, workers will be
stimulated to direct their actions toward
satisfying higher level needs.
Frederick Herzberg
•Herzberg proposed a theory of job
motivation. According to him, people work
in an environment wherein two kinds of
factors are present.
•The first factor is hygiene factor i.e., pay,
working condition, supervision,
organizational policies etc. When hygiene
factors are felt to be inadequate by workers,
the factors function as dissatisfies.
•Herzberg proposed a theory of job
motivation. According to him, people work
in an environment wherein two kinds of
factors are present.
•The first factor is hygiene factor i.e., pay,
working condition, supervision,
organizational policies etc. When hygiene
factors are felt to be inadequate by workers,
the factors function as dissatisfies.
•When these factors are present, they do
not necessarily motivate employees to
greater productivity.
not necessarily motivate employees to
greater productivity.
•The other factor is called motivators i.e.,
recognition, achievement, desire to take
more responsibility etc. When these
factors are present, they create the
conditions for motivation and higher
productivity. Therefore, the task of
managers is to increase the presence of
such motivator factors.
recognition, achievement, desire to take
more responsibility etc. When these
factors are present, they create the
conditions for motivation and higher
productivity. Therefore, the task of
managers is to increase the presence of
such motivator factors.
•According to Herzberg, if organizations
want to motivate their people, they should
redesign jobs to allow workers to perform
more and varied tasks.
•Much of the current interest in enriching
jobs, empowerment and improving the
quality of work life can be traced to
Herzberg’s research.
want to motivate their people, they should
redesign jobs to allow workers to perform
more and varied tasks.
•Much of the current interest in enriching
jobs, empowerment and improving the
quality of work life can be traced to
Herzberg’s research.
BLAKE AND MOUTON’S
MANAGERIAL GRID
•The managerial grid model (1964) is a behavioral
leadership model developed by Robert R. Blake
and Jane Mouton.
•This model originally identified five different
leadership styles based on the concern for people
and the concern for production.
•The grid depicts two dimensions of leader
behavior, concern for people on y-axis and
concern for production on x-axis,
•The optimal leadership style in this model is based
on Theory Y.
MANAGERIAL GRID
•The managerial grid model (1964) is a behavioral
leadership model developed by Robert R. Blake
and Jane Mouton.
•This model originally identified five different
leadership styles based on the concern for people
and the concern for production.
•The grid depicts two dimensions of leader
behavior, concern for people on y-axis and
concern for production on x-axis,
•The optimal leadership style in this model is based
on Theory Y.
Contd…….
•Each axis ranges from 1 (Low) to 9 (High), and
recognizes that leaders can have some of both
types of behavior, and that they do not necessarily
conflict with each other. i.e
–Both concern for people and concern for production
are necessary for effective leadership
–Best managers are high on both dimensions (9,9)
•A 9,9 leader is best kind of leader, irrespective of
who the followers are or what kinds of situations
confront the leader
•Each axis ranges from 1 (Low) to 9 (High), and
recognizes that leaders can have some of both
types of behavior, and that they do not necessarily
conflict with each other. i.e
–Both concern for people and concern for production
are necessary for effective leadership
–Best managers are high on both dimensions (9,9)
•A 9,9 leader is best kind of leader, irrespective of
who the followers are or what kinds of situations
confront the leader
Contd……
•Concern for Production:
–The leader cares little about people and operates in
fear of something going wrong.
–This person's focus is on achieving results and
productivity.
•Concern for People:
–This leader cares little about productivity and
operates wholly from a desire to be loved and
approved.
•Concern for Production:
–The leader cares little about people and operates in
fear of something going wrong.
–This person's focus is on achieving results and
productivity.
•Concern for People:
–This leader cares little about productivity and
operates wholly from a desire to be loved and
approved.
THE FIVE STYLES
1. (1,1) ‘Impoverished’ (low production/ low people)
Description
–A delegate and disappear management style. A basically
lazy approach.
Characteristic
–The manager shows a low concern for both people and
production.
–He or she avoids to get into trouble.
–His main concerns are not to be held responsible for any
mistakes
Results
Disorganization, dissatisfaction and disharmony due to lack
of effective leadership style.
1. (1,1) ‘Impoverished’ (low production/ low people)
Description
–A delegate and disappear management style. A basically
lazy approach.
Characteristic
–The manager shows a low concern for both people and
production.
–He or she avoids to get into trouble.
–His main concerns are not to be held responsible for any
mistakes
Results
Disorganization, dissatisfaction and disharmony due to lack
of effective leadership style.
Contd…
2. (1,9) 'Country Club' (Low production/ High
people)
Description:
–one sided, thoughtful attention to needs of employees.
Characteristics:
–the relationship-oriented manager has a high concern for
people, but a low concern for production.
–He pays much attention to the security, and comfort of
the employees.
–He hopes that this will increase performance.
2. (1,9) 'Country Club' (Low production/ High
people)
Description:
–one sided, thoughtful attention to needs of employees.
Characteristics:
–the relationship-oriented manager has a high concern for
people, but a low concern for production.
–He pays much attention to the security, and comfort of
the employees.
–He hopes that this will increase performance.
–He is almost incapable of employing the more
punitive, coercive and legitimate powers.
–This inability results from fear that using such
powers could jeopardize relationships with the
other team members.
Results:
–A usually friendly atmosphere, but not necessarily
very productive.
punitive, coercive and legitimate powers.
–This inability results from fear that using such
powers could jeopardize relationships with the
other team members.
Results:
–A usually friendly atmosphere, but not necessarily
very productive.
Contd……
3. (9,1) Produce or Perish style (High production/
low people)
Description:
–Authoritarian or compliance leader
Characteristics:
–the task oriented manager is autocratic, has a high
concern for production and low concern for people.
–He finds employee needs unimportant and simply a
means to an end.
–He provides his employees with money and expects
performance back.
–There is little or no allowance for cooperation or
collaboration.
3. (9,1) Produce or Perish style (High production/
low people)
Description:
–Authoritarian or compliance leader
Characteristics:
–the task oriented manager is autocratic, has a high
concern for production and low concern for people.
–He finds employee needs unimportant and simply a
means to an end.
–He provides his employees with money and expects
performance back.
–There is little or no allowance for cooperation or
collaboration.
–He pressures his employees through rules and
punishments to achieve the company goals.
–Heavily task oriented people are very strong on
schedules.
–They are intolerant of what they see as dissent (it may
just be some one’s creativity).
– This hard style is based on theory X of Douglas Mc
Gregor. It is often applied by companies on the edge of
real or perceived failure, such as crisis management.
•Results:
–whist high output is achievable in the short term; much
will be lost through an inevitable high labor turnover.
punishments to achieve the company goals.
–Heavily task oriented people are very strong on
schedules.
–They are intolerant of what they see as dissent (it may
just be some one’s creativity).
– This hard style is based on theory X of Douglas Mc
Gregor. It is often applied by companies on the edge of
real or perceived failure, such as crisis management.
•Results:
–whist high output is achievable in the short term; much
will be lost through an inevitable high labor turnover.
Contd……
4. (5,5) 'Middle-of-the-Road' (Politician) (Medium
production/Medium people)
Description
•The manager tries to balance between the completing the goals of
the organization and the needs of the workers.
Characteristics
•The manager gives some concern to both people and production
hoping to achieve acceptable performance.
•He believes this is the most any one can do.
4. (5,5) 'Middle-of-the-Road' (Politician) (Medium
production/Medium people)
Description
•The manager tries to balance between the completing the goals of
the organization and the needs of the workers.
Characteristics
•The manager gives some concern to both people and production
hoping to achieve acceptable performance.
•He believes this is the most any one can do.
Contd……
5. (9,9) Team style(High production /High people)
Description
•The ultimate type of leadership. The manager pays a high
concern to both the people and production.
•Motivation is high.
Characteristics
•This soft style based on the propositions of theory Y of
DOUGALS Mc GREGOR.
5. (9,9) Team style(High production /High people)
Description
•The ultimate type of leadership. The manager pays a high
concern to both the people and production.
•Motivation is high.
Characteristics
•This soft style based on the propositions of theory Y of
DOUGALS Mc GREGOR.
Contd…
•The manager encourages team work and
commitment among the employees making
employees led part of the company-family and
involving them in understanding organizational
purpose and determining production needs.
Results
•team environment based on trust and respect which
leads to high satisfaction and motivation and as
result high production.
•The manager encourages team work and
commitment among the employees making
employees led part of the company-family and
involving them in understanding organizational
purpose and determining production needs.
Results
•team environment based on trust and respect which
leads to high satisfaction and motivation and as
result high production.
Contemporary Theory of
Management
Management
Fiedler's Contingency Theory of
Leadership
•The first and perhaps most popular, situational theory
was the Contingency Theory of Leadership
Effectiveness' developed by Fred E. Fiedler. This
theory explains that group performance is a result of
interaction of two factors.
•These factors are known as leadership style and
situational favorableness. In Fiedler's model,
leadership effectiveness is the result of interaction
between the style of the leader and the
characteristics of the environment in which the leader
works.
Leadership
•The first and perhaps most popular, situational theory
was the Contingency Theory of Leadership
Effectiveness' developed by Fred E. Fiedler. This
theory explains that group performance is a result of
interaction of two factors.
•These factors are known as leadership style and
situational favorableness. In Fiedler's model,
leadership effectiveness is the result of interaction
between the style of the leader and the
characteristics of the environment in which the leader
works.
Leadership Style
•The first major factor in Fiedler's theory is known as the
leadership style. This is the consistent system of
interaction that takes place between a leader and work
group.
•According to Fiedler, an individual's leadership style
depends upon his or her personality and is, thus, fixed.
•Fiedler does not hold that leaders can adapt their styles to
different situations.
•Since personality is relatively stable, Fiedler’s contingency
model suggests that improving effectiveness requires
changing the situation to fit the leader.
•This is called “job engineering” .
•The first major factor in Fiedler's theory is known as the
leadership style. This is the consistent system of
interaction that takes place between a leader and work
group.
•According to Fiedler, an individual's leadership style
depends upon his or her personality and is, thus, fixed.
•Fiedler does not hold that leaders can adapt their styles to
different situations.
•Since personality is relatively stable, Fiedler’s contingency
model suggests that improving effectiveness requires
changing the situation to fit the leader.
•This is called “job engineering” .
Least Preferred Coworker (LPC)
scale :
•The LPC scale asks a leader to think of all the
persons with whom he or she has ever worked,
and then to describe the one person with whom
he or she worked the least well with.
•This person can be someone from the past or
someone he or she is currently working with.
•The scale is a questionnaire consisting of 16
items used to reflect a leader’s underlying
disposition toward others.
scale :
•The LPC scale asks a leader to think of all the
persons with whom he or she has ever worked,
and then to describe the one person with whom
he or she worked the least well with.
•This person can be someone from the past or
someone he or she is currently working with.
•The scale is a questionnaire consisting of 16
items used to reflect a leader’s underlying
disposition toward others.
The items in the LPC scale:
•pleasant / unpleasant,
•friendly / unfriendly,
•rejecting / accepting,
•unenthusiastic /
enthusiastic,
•tense / relaxed,
•cold / warm,
•helpful / frustrating,
•cooperative /
uncooperative,
•supportive / hostile,
•quarrelsome /
harmonious,
•efficient / inefficient,
•gloomy / cheerful,
•distant / close,
•boring / interesting,
•self-assured / hesitant,
•open / guarded.
•pleasant / unpleasant,
•friendly / unfriendly,
•rejecting / accepting,
•unenthusiastic /
enthusiastic,
•tense / relaxed,
•cold / warm,
•helpful / frustrating,
•cooperative /
uncooperative,
•supportive / hostile,
•quarrelsome /
harmonious,
•efficient / inefficient,
•gloomy / cheerful,
•distant / close,
•boring / interesting,
•self-assured / hesitant,
•open / guarded.
•Each item in the scale is given a single
ranking of between one and eight points,
with eight points indicating the most
favorable rating.From a scale of 1 through
8, leader are asked to describe this person
on a series of bipolar scales such as those
shown below:
ranking of between one and eight points,
with eight points indicating the most
favorable rating.From a scale of 1 through
8, leader are asked to describe this person
on a series of bipolar scales such as those
shown below:
Uncooperat
ive
123456 78 Cooperative
Unfriendly123456 78 Friendly
Hostile 123456 78 Supportive
Guarded123456 78 Open
........123456 78 ........
ive
123456 78 Cooperative
Unfriendly123456 78 Friendly
Hostile 123456 78 Supportive
Guarded123456 78 Open
........123456 78 ........
•The responses to these scales are summed and
averaged: a high LPC score suggests that the
leader has a human relations orientation, while a
low LPC score indicates a task orientation.
•The high LPC score leaders derived most
satisfaction from interpersonal relationships and
therefore evaluate their least preferred co-workers
in fairly favorable terms.
•These leaders think about the task accomplishment
only after the relationship need is well satisfied.
averaged: a high LPC score suggests that the
leader has a human relations orientation, while a
low LPC score indicates a task orientation.
•The high LPC score leaders derived most
satisfaction from interpersonal relationships and
therefore evaluate their least preferred co-workers
in fairly favorable terms.
•These leaders think about the task accomplishment
only after the relationship need is well satisfied.
•On the other hand, the low LPC score leaders
derived satisfaction from performance of the task
and attainment of objectives and only after tasks
have been accomplished, these leaders work on
establishing good social and interpersonal
relationships.
•This method reveals an individual's emotional
reaction to people with whom he or she cannot work.
•It is also stressed that is not always an accurate
measurement.
derived satisfaction from performance of the task
and attainment of objectives and only after tasks
have been accomplished, these leaders work on
establishing good social and interpersonal
relationships.
•This method reveals an individual's emotional
reaction to people with whom he or she cannot work.
•It is also stressed that is not always an accurate
measurement.
Situational favorableness or
environmental variable:
•The second major factor in Fiedler's theory is
known as situational favorableness or
environmental variable.
•This basically is defined as the degree a situation
enables a leader to exert influence over a group.
•Fiedler then extends his analysis by focusing on
three key situational factors, which are leader-
member relations, task structure and position
power.
environmental variable:
•The second major factor in Fiedler's theory is
known as situational favorableness or
environmental variable.
•This basically is defined as the degree a situation
enables a leader to exert influence over a group.
•Fiedler then extends his analysis by focusing on
three key situational factors, which are leader-
member relations, task structure and position
power.
Each factor is defined in the following:
1. Leader-member relations: the degree to which
the employees accept and support the leader.
2. Task structure: the degree to which the
subordinate’s jobs/tasks are structured and defined
with clear goals and procedures.
3. Position power: the amount of formal authority
the leader possesses by virtue of his or her position
in the organization. The ability of a leader to control
subordinates through reward and punishment.
1. Leader-member relations: the degree to which
the employees accept and support the leader.
2. Task structure: the degree to which the
subordinate’s jobs/tasks are structured and defined
with clear goals and procedures.
3. Position power: the amount of formal authority
the leader possesses by virtue of his or her position
in the organization. The ability of a leader to control
subordinates through reward and punishment.
•For leader-member relations, Fiedler maintains
that the leader will have more influence if they
maintain good relationships with group members
who like, respect, and trust them, than if they do
not.
•Fiedler explains that task structure is the second
most important factor in determining structural
favorableness. He contends that highly structured
tasks, which specify how a job is to be done in
detail provide a leader with more influences over
group actions than do unstructured tasks.
that the leader will have more influence if they
maintain good relationships with group members
who like, respect, and trust them, than if they do
not.
•Fiedler explains that task structure is the second
most important factor in determining structural
favorableness. He contends that highly structured
tasks, which specify how a job is to be done in
detail provide a leader with more influences over
group actions than do unstructured tasks.
•Finally, as for position power, leads who
have the power to hire and fire, discipline
and reward, have more power than those
who do not. For example, the head of a
department has more power than a file clerk.
•With the help of these three variables, eight
combinations of group-task situations were
constructed by Fiedler. These combinations
were used to identify the style of the leader.
have the power to hire and fire, discipline
and reward, have more power than those
who do not. For example, the head of a
department has more power than a file clerk.
•With the help of these three variables, eight
combinations of group-task situations were
constructed by Fiedler. These combinations
were used to identify the style of the leader.
Leadership Effectiveness
•The leader’s effectiveness is determined
by the interaction of the leader’s style of
behavior and the favorableness of the
situational characteristics.
•The most favorable situation is when
leader-member relations are good, the
task is highly structured, and the leader
has a strong position power.
•The leader’s effectiveness is determined
by the interaction of the leader’s style of
behavior and the favorableness of the
situational characteristics.
•The most favorable situation is when
leader-member relations are good, the
task is highly structured, and the leader
has a strong position power.
•Research on the contingency model has
shown that task-oriented leaders are more
effective in highly favorable (1, 2, 3) and
highly unfavorable situation (7, 8),
whereas relationship-oriented leaders are
more effective in situations of intermediate
favorableness (4, 5, 6).
shown that task-oriented leaders are more
effective in highly favorable (1, 2, 3) and
highly unfavorable situation (7, 8),
whereas relationship-oriented leaders are
more effective in situations of intermediate
favorableness (4, 5, 6).
In the following diagram, it shows that task-orientated
leadership was successful in five situations, and
relationship-orientated in three.
Leader-Member
Relations
Task Structure Position Power Successful
Leadership Style
Good Structured Strong Task Orientation
Good Structured Weak Task Orientation
Good Unstructured Strong Task Orientation
Good Unstructured Weak Consideration(relat
ionship-oriented)
Poor Structured Strong Consideration
Poor Structured Weak Consideration
Poor Unstructured Strong Task Orientation
Poor Unstructured Weak Task Orientation
leadership was successful in five situations, and
relationship-orientated in three.
Leader-Member
Relations
Task Structure Position Power Successful
Leadership Style
Good Structured Strong Task Orientation
Good Structured Weak Task Orientation
Good Unstructured Strong Task Orientation
Good Unstructured Weak Consideration(relat
ionship-oriented)
Poor Structured Strong Consideration
Poor Structured Weak Consideration
Poor Unstructured Strong Task Orientation
Poor Unstructured Weak Task Orientation
Task-oriented style of
leadership:
•According to Fiedler, a task-oriented style of
leadership is more effective than a considerate
(relationship-oriented) style under extreme
situations, that is, when the situations, is either very
favorable (certain) or very unfavorable (uncertain).
•Task-oriented leadership would be advisable in
natural disaster, like a flood or fire. In uncertain
situation the leader-member relations are usually
poor, the task is unstructured, and the position
power is weak.
leadership:
•According to Fiedler, a task-oriented style of
leadership is more effective than a considerate
(relationship-oriented) style under extreme
situations, that is, when the situations, is either very
favorable (certain) or very unfavorable (uncertain).
•Task-oriented leadership would be advisable in
natural disaster, like a flood or fire. In uncertain
situation the leader-member relations are usually
poor, the task is unstructured, and the position
power is weak.
Task-oriented style of leadership: cont…….
•The one who emerges as a leader to direct the
group's activity usually does not know any of
his or her subordinates personally. The task-
oriented leader who gets things accomplished
proves to be the most successful. If the leader
is considerate (relationship-oriented), he or
she may waste so much time in the disaster,
which may lead things to get out of control and
lives might get lost.
•The one who emerges as a leader to direct the
group's activity usually does not know any of
his or her subordinates personally. The task-
oriented leader who gets things accomplished
proves to be the most successful. If the leader
is considerate (relationship-oriented), he or
she may waste so much time in the disaster,
which may lead things to get out of control and
lives might get lost.
•Blue-collar workers generally want to know
exactly what they are supposed to do. Therefore
it is usually highly structured. The leader's
position power is strong if management backs
his or her decision.
•Finally, even though the leader may not be
relationship-oriented, leader-member relations
may be extremely strong if he or she is able to
gain promotions and salary increases for
subordinates.
•Under these situations is the task-oriented style
of leadership is preferred over the (considerate)
relationship-oriented style.
exactly what they are supposed to do. Therefore
it is usually highly structured. The leader's
position power is strong if management backs
his or her decision.
•Finally, even though the leader may not be
relationship-oriented, leader-member relations
may be extremely strong if he or she is able to
gain promotions and salary increases for
subordinates.
•Under these situations is the task-oriented style
of leadership is preferred over the (considerate)
relationship-oriented style.
Considerate style of
leadership:
•The considerate style of leadership seems
to be appropriate when the environmental
or certain situation is moderately favorable
or certain, for example, when
•leader-member relations are good,
•the task is unstructured, and
•position power is weak.
leadership:
•The considerate style of leadership seems
to be appropriate when the environmental
or certain situation is moderately favorable
or certain, for example, when
•leader-member relations are good,
•the task is unstructured, and
•position power is weak.
•For example, research scientists do not
like superiors to structure the task for
them. They prefer to follow their own
creative leads in order to solve problems.
Now under a situation like this is when a
considerate style of leadership is preferred
over the task-orientated style.
like superiors to structure the task for
them. They prefer to follow their own
creative leads in order to solve problems.
Now under a situation like this is when a
considerate style of leadership is preferred
over the task-orientated style.
Implications of Fiedler’s
Theory:
•The favorableness of leadership situations should be
assessed using the instruments developed by Fiedler
(or, at the very least, by a subjective evaluation).
•Candidates for leadership positions should be
evaluated using the LPC scale.
•If a leader is being sought for a particular leadership
position, a leader with the appropriate LPC profile
should be chosen (task-orientated for very favorable
or very unfavorable situations and relationship-
orientated for intermediate favorableness).
Theory:
•The favorableness of leadership situations should be
assessed using the instruments developed by Fiedler
(or, at the very least, by a subjective evaluation).
•Candidates for leadership positions should be
evaluated using the LPC scale.
•If a leader is being sought for a particular leadership
position, a leader with the appropriate LPC profile
should be chosen (task-orientated for very favorable
or very unfavorable situations and relationship-
orientated for intermediate favorableness).
•If a leadership situation is being chosen for
a particular candidate, a situation (work
team, department, etc.) should be chosen
which matches his/her LPC profile (very
favorable or unfavorable for task-orientated
leaders and intermediate favorableness for
relationship-orientated leader).
•Several other implications can be derived
from Fiedler's findings:
a particular candidate, a situation (work
team, department, etc.) should be chosen
which matches his/her LPC profile (very
favorable or unfavorable for task-orientated
leaders and intermediate favorableness for
relationship-orientated leader).
•Several other implications can be derived
from Fiedler's findings:
•First, it is not accurate to speak of effective
and ineffective leaders. Fiedler goes on by
suggesting that there are only leader who
perform better in some situations, but not
all situations.
•Second, almost anyone can be a leader by
carefully selecting those situations that
match his or her leadership style.
and ineffective leaders. Fiedler goes on by
suggesting that there are only leader who
perform better in some situations, but not
all situations.
•Second, almost anyone can be a leader by
carefully selecting those situations that
match his or her leadership style.
•Lastly, the effectiveness of a leader can be
improved by designing the job to fit the
manager.
•For instance, by increasing or decreasing a
leader's position power, changing the
structure of a task, or influencing leader-
member relations, an organization can alter
a situation to better fit a leader's style.
improved by designing the job to fit the
manager.
•For instance, by increasing or decreasing a
leader's position power, changing the
structure of a task, or influencing leader-
member relations, an organization can alter
a situation to better fit a leader's style.
System theory
History and Orientation
In the 19
th
century,
Hegel developed a theory to
explain historical development as a dynamic process.
Marx and Darwin used this theory in their work.
System theory (as we know it) was used by L. von
Bertalanffy, a biologist, as the basis for the field of
study known as ‘general system theory’, in 1968.
History and Orientation
In the 19
th
century,
Hegel developed a theory to
explain historical development as a dynamic process.
Marx and Darwin used this theory in their work.
System theory (as we know it) was used by L. von
Bertalanffy, a biologist, as the basis for the field of
study known as ‘general system theory’, in 1968.
It was published In
book titled
"General
System theory: Foundations, Development,
Applications" in 1968
Bertalanffy's systems theory outlines into three
major domains:
Philosophy,
Science, and
Technology.
book titled
"General
System theory: Foundations, Development,
Applications" in 1968
Bertalanffy's systems theory outlines into three
major domains:
Philosophy,
Science, and
Technology.
Introduction: What is "System" ?
1.systems are whole & that organization
should be viewed as a whole , considering
the relationship within the structure of the
organization.
2.system is a complex mix of intertwined
elements, including inputs, throughputs &
outputs.
1.systems are whole & that organization
should be viewed as a whole , considering
the relationship within the structure of the
organization.
2.system is a complex mix of intertwined
elements, including inputs, throughputs &
outputs.
3.It is a number of interdependent parts
functioning as a whole for some purpose.
System is a set of social , biological,
technological or material partners co-
operating on a common purpose.
4. The system approach to management
views organization as unified purposeful
system composed of integral parts.
functioning as a whole for some purpose.
System is a set of social , biological,
technological or material partners co-
operating on a common purpose.
4. The system approach to management
views organization as unified purposeful
system composed of integral parts.
Model of System
Types of system
1. Closed systems
2. Open system
Closed systems are not influenced by & do
not interact with their environment.
Open systems interact with their
environment dynamically.
1. Closed systems
2. Open system
Closed systems are not influenced by & do
not interact with their environment.
Open systems interact with their
environment dynamically.
The assumption on which a system
theory is based are as follows:
•A system is a collection of parts (subsystems,
parts of a system dependent on one another)
unified as a whole to accomplish an overall goal
•A system is looked at as having inputs, processes,
output or outcomes and environment
•If one part of system is removed, it is going to
affect the whole system—the nature of the system
is going to be changed as well.
theory is based are as follows:
•A system is a collection of parts (subsystems,
parts of a system dependent on one another)
unified as a whole to accomplish an overall goal
•A system is looked at as having inputs, processes,
output or outcomes and environment
•If one part of system is removed, it is going to
affect the whole system—the nature of the system
is going to be changed as well.
•Effective organization must not only
properly “fit” with the environment but also
have a proper “fit” between the
subsystems.
•The synergism makes the whole is greater
than the sum of its parts.
•Entropy is certain unless management
grows in order for the organization to grow.
properly “fit” with the environment but also
have a proper “fit” between the
subsystems.
•The synergism makes the whole is greater
than the sum of its parts.
•Entropy is certain unless management
grows in order for the organization to grow.
•All organizations are open systems, although the
degree of interaction may vary. The main
independent factors are input, throughput,
feedback, control, environment, goals and
dependent factor is output. This system
framework applies to any system in overall
organization.
degree of interaction may vary. The main
independent factors are input, throughput,
feedback, control, environment, goals and
dependent factor is output. This system
framework applies to any system in overall
organization.
•The effects of systems theory in
management is that it has helped
managers to look at the organization from
a broader perspective and to view how
major functions affect each other and how
to address the effects of one action on
their entire organization.
management is that it has helped
managers to look at the organization from
a broader perspective and to view how
major functions affect each other and how
to address the effects of one action on
their entire organization.
Chaos Theory
•Chaos refers to apparent lack of order in a
system but it still obeys particular laws or
rules; which means chaos is synonymous to
dynamic instability.
The two main components of this theory are:
•The systems, no matter how complex they
may be, rely upon an underlying order.
•Very simple or small systems and events can
cause very complex events.
•Chaos refers to apparent lack of order in a
system but it still obeys particular laws or
rules; which means chaos is synonymous to
dynamic instability.
The two main components of this theory are:
•The systems, no matter how complex they
may be, rely upon an underlying order.
•Very simple or small systems and events can
cause very complex events.
•Chaos theory studies the behavior of dynamical
systems that are highly sensitive to initial
conditions.
•This theory suggests that systems naturally go
to more complexity, and as they do so, these
systems become more volatile or susceptible to
devastating events; therefore they must spend
more energy to maintain that complexity.
• As they spend more energy, they seek more
arrangements to maintain stability. Chaos theory
studies the behavior of dynamical systems that
are highly sensitive to initial conditions.
systems that are highly sensitive to initial
conditions.
•This theory suggests that systems naturally go
to more complexity, and as they do so, these
systems become more volatile or susceptible to
devastating events; therefore they must spend
more energy to maintain that complexity.
• As they spend more energy, they seek more
arrangements to maintain stability. Chaos theory
studies the behavior of dynamical systems that
are highly sensitive to initial conditions.
•This theory suggests that systems naturally go to more
complexity, and as they do so, these systems become
more volatile or susceptible to devastating events;
therefore they must spend more energy to maintain
that complexity.
•As they spend more energy, they seek more
arrangements to maintain stability. This trend
continues until the system splits, combines with
another complex system or falls apart entirely.
•This theory suggests the impossibility of making
predictions for complex systems.
complexity, and as they do so, these systems become
more volatile or susceptible to devastating events;
therefore they must spend more energy to maintain
that complexity.
•As they spend more energy, they seek more
arrangements to maintain stability. This trend
continues until the system splits, combines with
another complex system or falls apart entirely.
•This theory suggests the impossibility of making
predictions for complex systems.
•The implication of chaos theory in
management is that it stresses the
importance of change within organizations.
•Hence, managers must constantly assess
the organizational environment and
determine whether there is consistency
within the structure and seek more
arrangements to maintain stability of the
organization.
management is that it stresses the
importance of change within organizations.
•Hence, managers must constantly assess
the organizational environment and
determine whether there is consistency
within the structure and seek more
arrangements to maintain stability of the
organization.
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