UGC NET Paper 2(Code55) _Principles And Practices_Unit1(Part 1).pdf

HUMAN RESOURCE MANAGEMENT,LABOUR WELFARE ,INDUSTRIAL RELATIONS,LABOUR & SOCIAL WELFARE,PERSONNEL MANAGEMENT
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PRINCIPLES AND PRACTICES OF MANAGEMENT
DEVELOPMENT OF MANAGEMENT THOUGHT:
Looking back to the past period, the stories of different people can be traced working together in formal
organizations like the Armies of Romans and Greeks, the Roman Catholic Church, the Hudson Bay, the East
India Company etc. People have been writing about making organizations’ effective and efficient ever since the
term “management” came into existence. Since then people have been reshaping the organizations with the
changing times.
In 1799, Robert Owen, the “Father of personnel management”, widely known for his model textile factory at
New Lanark in Scotland, purchased the New Lanark Mill from his father-in-law David Dale. Even though Dale
was well-known as a progressive employer, the factory was going through destitute conditions. Employing
children from 5-6 years old and working for 15 hours per day was prevalent in those days. Owen disengaged
himself from obtaining poor children and lifted the minimum age of employment to 10 years. He also banned
the beating of children on the work.
In 1865, Andrew Carnegie, an industrialist and expert at reducing cost and up surging profits was well-known
for utilizing resources efficiently. He invested in cost-saving and time-saving technologies and practices and
dominated his market in Steel industry. He also made great profits at the expense of his employees by paying
them minimal wages and increasing working hours.
THEORIES OF MANAGEMENT SCHOOLS:
The primary organizational theories are namely:
1) Classical theory (1880s- 1920s)
2) Neo-classical theory (1930s - 1950s)
3) Modern theory (1960s - present)
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CLASSICAL THEORIES:
The writers of classical theories had explored organisation as a machine and workers as an integral part of that
machine. They had considered that the efficiency of an organisation can be raised by making the workers
efficient. The major attention was given to specialization and co-ordination of activities. The four pedestals of
this theory are: Division of Labour, Scalar and Functional process, Structure and Span of Control. This theory
had given the three main schools:
a) Scientific Management School
b) Bureaucracy Management School
c) Management Process School
Theories of Management
Schools
Classical
Theory
Neo- classical
Theory
Modern
Theory
System
Approach
School
Decision
Theory
School
Quantitative
Approach
School
Contingency
Approach
School
Human
Behavioural
School
Human
Relations
School
Management
Process
School
Scientific
Management
School
Bureaucracy
Manag

2. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
• Principles and Practices of Management: Development of management
Thought,
• Contributions of Mangement Thinkers: Taylor, Fayol, Mayo, Mary Parker
Follett and C.I. Barnard.
• Behavioural Approach,
• Systems Approach,
• Quantitative Approach and
• Contingency Approach.
• Function of Management: Planning and Decision Making, Organising,
Staffing, Directing, Controlling, Coordinating

3. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•In 1799, Robert Owen, the “Father of personnel management”, widely known for his model textile
factory at New Lanark in Scotland, purchased the New Lanark Mill from his father-in-law David Dale.
Even though Dale was well-known as a progressive employer, the factory was going through destitute
conditions. Employing children from 5-6 years old and working for 15 hours per day was prevalent
in those days. Owen disengaged himself from obtaining poor children and lifted the minimum age of
employment to 10 years. He also banned the beating of children on the work.
•In 1865, Andrew Carnegie, an industrialist and expert at reducing cost and up surging profits was well-
knownfor utilizing resources efficiently. He invested in cost-saving and time-saving technologies and
practices and dominated his market in Steel industry. He also made great profits at the expense of his
employees by paying them minimal wages and increasing working hours

4. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•The primary organizational theories are namely:
1) Classical theory (1880s- 1920s)
2) Neo-classical theory (1930s - 1950s)
3) Modern theory (1960s - present)

5. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)

6. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
The writers of classical theories had explored organisation as a machine and workers as an
integral part of that machine. They had considered that the efficiency of an organisation
can be raised by making the workers efficient. The major attention was given to specialization
and co-ordination of activities. The four pedestals of this theory are: Division of Labour,
Scalar and Functional process, Structure and Span of Control. This theory had given the
three main schools:
a) Scientific Management School
b) Bureaucracy Management School
c) Management Process School

7. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•This school includes the Scientific Management Theory that analyzes work flows to improve
economic efficiency, especially the labor productivity. This management theory, developed by
Frederick Winslow Taylor, was popular in the 1880s and 1890s in U.S. manufacturing industries.
• He believed a worker should get “a fair day’s pay for a fair day’s work”—no more, no less”.
•Taylor also believed that management and labour should cooperate and work together to meet goal
•He was the first to suggest that the primary functions of managers should be planning and training
•A significant part of Taylor’s theory was Time studies. Taylor was concerned with reducing process
time and worked with factory managers on scientific time studies.
•Taylor first developed the idea of breaking down each job into component parts and timing each part
to determine the most efficient method of working

8. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
• Taylor proposed a “neat, understandable world in the factory, an organization of men whose
acts would be planned, coordinated, and controlled under continuous expert direction.”
•In 1909, Taylor published The Principles of Scientific Management. In this book, he suggested that
productivity would increase if jobs were optimized and simplified. He also proposed matching a
worker to a particular job that suited the person’s skill level and then training the worker to do that job
in a specific way.
•Scientific management has 4 core principles that also apply to today’s organizations. They are:
i. Looking at each job or task scientifically to determine the “one best way” to perform the job. This is a
change from the previous “rule of thumb” method where workers devised their own ways to do the job.
ii. Hiring the right workers for each job and training them to work for maximum efficiency.
iii. Monitoring the worker’s performance and providing the necessary instructions and trainings as and
when required.
iv. Dividing the work between management and labour so that management can make planning and
providetraining, so that the workers can execute the task efficiently

9. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)

10. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•This school was propounded by Max Weber, who was a sociologist and contemporary of
Taylor and Fayol. He emphasized on the recognition and exercise of authority.
• He has classified authority structures into three categories: charismatic, traditional and
bureaucratic.
(a) Charismatic Authority: A charismatic leader’s authority is expected by virtue of some
exceptional innate
(b) Traditional Authority: The authority which flows from generation to generation or hereditary
is called traditional authority.
(c) Bureaucratic Authority: The authority which comes from the position in the organization is
called Bureaucratic authority. This authority contains a clearly defined set of rules, procedures
and roles.

11. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•This model includes the following:
i. Clearly separation between superior and subordinate.
ii. Division of labour based upon competence and functional specialization.
iii. Clear differentiation between personal and official matters.
iv. System of rules, regulations and procedures.
v. Hierarchy in positions based on legal authority and power.

12. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•This school considers management as a process of getting things done by people who work in the
organization. Management can best be understood in terms of the process involved in it. The
management process can be classified in 5 broad functions such as: planning, organizing, staffing,
directing and controlling. It helps in analyzing the nature, purpose, structure and the fundamental
process of each of these functions that are involved in an organization. The management process
approach recognizes management as a separate discipline. It integrates the knowledge of other
disciplines to improve management.
•This school has provided a conceptual frame work which can be used for further research and
development of management thought.
•The main features of the Management Process School are:
i) Management is the study of functions of managers.
ii) The functions of managers are the same irrespective of the type of organisation.
iii) The conceptual framework of management can be built through an analysis of the processes of management and
identification of principles.
iv) The functions of management, viz., planning, organizing, staffing, directing and controlling are the core of
management.

13. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)

14. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•The neoclassical theory was embodied to the behavioral sciences into the management thought in
order to resolve the issues produced in classical theory. The argument of this admittance was
established on the belief that the role of management is to utilize the employees in order to get things
done in an organization instead of focusing on production, structures or technology, the
neoclassical theory was concerned with the employee.
•Neo-classical theorists focused on providing solutions to the queries related to the preferred way to
motivate, structure, and support employees of an organization.
•This theory encloses approaches and schools that focus on the human side of an organization. There
are two main schools of Neo-classical theory:
a) Human Relations School
b) Human Behavioral School

15. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•It originated from the work of several sociologists and social physiologists who were
involved in investigating how people relate and interact within a group or a team. It focuses
attention onsocial factors at work, groups, leadership, the informal organisation and the
behavior of people.
•In the 1920s, Elton Mayo, an Australian-born psychologist and organizational theorist,
began his research on the behavior of people in groups and how it affects individuals in the
workplace, known as the Hawthorne studies.
•Mayo, in contrast, popularized the idea of the "social person," meaning organizations
should treat people as individuals – not machines – with individual needs.
•The Human Relations School grew up from Hawthorne Experiment. The classical
management theory in particular assumed a simple stimulus-response relationship in the
workplace.

16. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
principles:
i) Rewards and social sanctions:
ii) Informal Groups:
iii) Emotions:
iv) Supervision:
v) Motivation
vi) Leadership:
vii)Communication:

17. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•It relates to the application of the methods and findings of psychology and sociology to
the organizational behaviour. This school emphasizes the actions and reactions of the
human beings in a group activity.
•Mental reactions like emotions, feelings, aims, instincts, hopes and desires regulate a
man’s behaviour or conduct. It believes that, unless these mental reactions of the workers
are considered, their problems are either solved or some attempts are made to fulfill their
needs and demands by the managers, without which an effective and meaningful
management is not possible.
•According to this school, performance of managerial activities in consideration of the
conduct or behaviour of working personnel is an effective and decent management.

18. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•The main features of this school are:
i. The school draws its concept from psychology, sociology, human relations, inter-personal
relationships, satisfaction of worker’s needs etc.
ii. Since management is getting things done through people, the managers must have a basic
under-standing of human behaviour and human relations in all its aspects, particularly in the
context of work groups and organizations.
iii. Management must study inter-personnel relations among people.
iv. Greater production and higher motivation can be achieved only through good human
relations.
v. Motivation, leadership, communication, participative management and group dynamics
are the core of this school of thought.

19. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•After, 1960 management thought has been turning somewhat away from the extreme
human relations ideas particularly regarding the direct relation between morale and
productivity. Present management thinking wishes equal emphasis on man and machine.
•The ideologists of modern business have recognized the social responsibilities of
business activities. During this period, the principles of management reached a stage of
refinement and perfection. The formation of big companies resulted in the separation of
ownership and management
•This change in ownership pattern inevitably brought in ‘salaried and professional
managers’ in place of ‘owner managers. The giving of control to the hired management
resulted in the wider use of scientific methods of management. But at the same time the
professional management has become socially responsible for differentsections of society
such as customers, shareholders, suppliers, employees, trade unions and other
Government agencies

20. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•The four main schools of Modern Theory are:
a) System Approach School
b) Decision Theory School
c) Mathematical/Quantitative Approach School
d) Contingency Approach School

21. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•According to this school, management is a ‘system’ of co-ordination of some different
factors forming the parts of an overall management process which are inter-related or inter-
dependent.
•They viewed organization as an organic and open system that includes the interaction
and interdependency of parts, called subsystems. The system approach is to view
management as a system or as an “organized whole” that is made up of sub-systems
integrated into wholeness.
•Taking an example, the world can be considered to be a system in which various national
economies are its sub-systems. Where, each national economy is composed of its various
industries, each industry is composed of firms; and of course, a firm can be considered a
system composed of sub-systems such as production, marketing, finance, accounting and so
on.

22. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•The key features of Systems approach are as under:
i) A system is set of inter-related and inter-dependent parts that are arranged in a manner that produces a
united whole.
ii) Rather than studying the different sub-systems in separately, they should be studied together.
iii) There is an outer limit in an organizational system that decides the internal and external factors of a part
iv) System does not exist in a vacuum. It receives information, material and energy from other systems as
inputs. These inputs undergo a transformation process within the system and leave the system as output to
other systems.
v) It is a dynamic system as it is responsive to its environment of an organisation. It is exposed to change in its
environment..

23. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•The systems approach is considered both general and specialized systems.
•The general systems approach to management is mainly concerned with formal
organizations and the concepts are relating to technique of sociology, psychology and
philosophy.
• The specific management system includes the analysis of organisational structure,
information, planning and control mechanism and job design etc.
• This theory is useful for management because it aims at achieving the objectives and it
views an organization as an open system.

24. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•The ‘Decision Theory School’ of management thought focuses its attention on decision-
making and treats the various factors of decision-making as constituting the scope of the
study of management.
•Herbert Simon has made a notable contribution in decision-making. His renowned work—
Administrative Behaviour: A Study of Decision-Making Process in Administrative
Organisation was published in 1948.
• He divided the concept into two main parts: (a) decision being arrived at and (b) process of
action.
• He said, “A theory of administration should be concerned with the processes of
•decision as well as the processes of action”.

25. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•The main features of Decision-making Approach are:
Øi) Rational thinking:
Øii) Process:
Øiii) Selective:
Øiv) Purposive:
Øv) Positive:
Øvi) Commitment:
Øvi) Commitment:

26. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•This approach was developed during the World War II to find solutions to warfare issues; the
quantitative approach uses mathematical models to solve the problems and analyzes a
mix of feasibilities, constraints and cost to enable management to make decisions. It
combines rational thought with intuitive insight to solve management concerns such as cost,
production and service levels etc. The core function of the quantitative approach is to
compare the possible outcomes.
•It uses mathematical models such as linear programming, Queuing theory, Model
Building PERT, CPM, games theory, probability, sampling theory, capital budgeting,
financial structure theories and symbols to solve organizational problems.

27. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•The features of quantitative/mathematical management school were:
•i. Main Focus on Decision-Making: The final result of analyzing the problem
will include direct implications for managerial action.
•ii. Built on Economic Decision Theory: Costs, revenue and rates of return on
investment are chosen for final actions.
•iii. Using the Mathematical Models: Solutions to the problems are specified
as mathematical equations and then analyzed according to mathematical
rules and formulas.
•iv. Using the Computers: Frequent usage of computers and their advanced
processing capabilities.

28. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•The contingency school originated in the 1960s. This approach indicates that there is ‘no
one best way to manage’ and that it depends on various situational factors like the external
environment, technology, organizational characteristics, features of the manager and
the subordinates. This approach was developed by . This
approach is also known as ‘Situational Approach’. Management action is contingent on
certain outside system or subsystem.
•It focuses on applying principles and processes of management as given by the unique
•characteristics of each situation.

29. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•Following are some features of Contingency/Situational Approach:
i. It tries to fill the gap by suggesting what should be done in response to an
event in the environment.
ii. It provides an active interrelationship between the variables in a situation
and the managerial actions devised.
iii. It develops skills in managers by analyzing the situation.
iv. Combination of mechanistic and humanistic approaches in order to fit into
a particular situation.

30. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•1. F.W. TAYLOR:
•2. HENRY FAYOL:
•3. ELTON MAYO:
•4. MARY P. FOLLET:
•5. CHESTER I. BARNARD:
•6. HENRY MINTZBERG:

31. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•Techniques of Scientific
Management:
•i. Functional Foremanship:
üThis technique was formed to improve the
quality of work as single supervisor may
not be an expert in all the facets of the
work.
üTaylor appointed 8 foremen, 4 at the
planning level & other 4 at production level.

32. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•ii. Work Study:
•iii. Time Study:
•iv. Motion Study:
•v. Differential-Piece Wage Plan:
•vi. Standardization:

33. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
2. HENRY FAYOL:
•He introduced it in his concept of Scalar Chain.
•Gang plank refers to an arrangement in which
two managers working at the same level can
communicate with each other directly for quick
communication
•GANG-PLANK is the term used in concern with
the scalar chain.
•Scalar chain refers to the chain of superiors
ranging from the ultimate authority to the lowest
level in the organisation. It should be short-
circuited and not carried to the extent it
provesdetrimental to the organization, this
concept is known as Gang-Plank

34. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•Fayol divided the activities of an industrial undertaking into six parts:
•1. Technical activities.
•2. Commercial activities.
•3. Financial activities.
•4. Security activities.
•5. Accounting activities.
•6. Managerial activities

35. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
ØHawthorne Experiment:
üFour phases of Hawthorne Experiment:
a) Illumination experiment (1924-27):
b) Relay assembly test room experiment (1927-29):
c) Mass interviewing programme (1929- 30):
d) Bank wiring observation group (1931-32):

36. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
• “Mother of modern management”.
•She has defined management as “the art of getting
things done through others”.
•Principles of Coordination:
a) Direct Contact:
b) Early Stages:
c) Reciprocal relationships:
d) Continuous Process:

37. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)
•Concept of Organisation:
Øa. The persons are able to communicate with each other.
Øb. There are people willing to contribute collectively to the action.
Øc. There is an attempt to accomplish a common goal.
•Formal and Informal Organisations:
üthe executives should encourage the development of informal organisation in order to serve as a means of
communication so that they can bring cohesiveness among the employees of an organisation.
üThe formal as well as the informal organisation have a continuous interaction between them and also depend on
each other.
•Acceptance Theory of Authority:
ü the classical view that authority surpass from the top to bottom. In fact, he came out with a new concept of authority
named as “acceptance theory of authority” or “bottom – up authority”.
•Functions of the executivethree types of functions
üa. Maintaining an organizational communication through formal interactions.
üb. Securing the essential services from individuals in order to achieve an organizational purpose.
üc. Formulating and defining the organizational purpose.

38. MASY ACHIEVER’S ACADEMY
NTA UGC NET/JRF/SET Paper-2(Code:55)