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MANAGEMENT THOUGHTS
Dr.RAVI V
Management: Science or art
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Science has following features
1. Systematized Body of Knowledge
2. Principles Based on Experimentation
3. Verifiable Principles
4. Universal Application
Art has following features
1. Practical Knowledge
2. Personalized Application of Knowledge
3. Improvements through Continuous
Practice
4. Situational application
5. Emphasis on Creativity
Management- Science or art
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The above discussion shows that management is
an art, but not a true science. Therefore,
management is called an inexact science or
pseudo-science.
Thus, Management has both Art & Science
component. And to be a successful manager, a
person requires the knowledge of management
principles and also the skills of how the knowledge
can be used.
Applied Knowledge is Power
Universality of management
Argument for universality
1. Management as a Process
2. Distinction between
Management
Fundamentals &
Techniques
3. Distinction between
Management
Fundamentals &
Practices
Arguments against
universality
1. Cultural Characteristics
2. Management Philosophy
3. Organizational
Objectives
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Universality of management
Culture of a country is measured on five dimensions:
1. Individualism vs. collectivism the extent to which people place value on themselves
2. Power distance the extent to which people submit to authority
3. Uncertainty avoidance the extent to which people have preference for stability
4. Masculinity vs. femininity the extent to which people attach value to materialism
5. Time Orientation the extent to which people have short or long term orientation
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Dimensions USA JAPAN
Individualism Vs.
Collectivism
High Individualism High Collectivism
Power distance Low High
Uncertainty avoidance High Low
Masculinity Vs. Femininity High Low
Time Orientation Short term Long term
Hawthorne experiments and Human relations
Studies undertaken at Western Electric Companys Hawthorne
Works between 1927 and 1932.
Western Electric Company employed about 30,000 employees at
the time of study.
Progressive company.
Workers were dissatisfied and productivity was not up to the
mark.
In order to investigate the real cause of the problem, a team led
by Elton Mayo (psychologist) and Roethlisberger (sociologist)
and company representative, William Dickson set out to study
the relationship between productivity and physical working
conditions.
Four phases of experiments were conducted with each phase
attempting to answer the questions raised at the previous phase.
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1. Illumination experiments
These experiments were undertaken to determine the effect
of changes in illumination on productivity.
Researchers created two work groups fromthe employees,
experimental group that was subjected to varying
intensity of illumination and
controlled group that worked under constant
illumination intensity.
The hypothesis formulated before these set of experiments
was that with higher illumination, productivity would
increase.
When the intensity of light level was increased in
experimental group, output rose for both the work groups.
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1. Illumination experiments
Surprise finding when light intensity was dropped in
experimental group, productivity continued to increase in
both the work groups.
Productivity had only decreased in experimental group
when light intensity was reduced to that of moonlight.
It was concluded that illumination intensity was not
directly related to productivity but something else was
interfering with the productivity. But they could not
explain the behavior which led to the second series of
experiments.
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2.Relay assembly test room experiments
These set of experiments were conducted to determine the changes
in various working conditions that had on group productivity.
Researchers set up a relay assembly test room and chose two girls.
These girls were asked to choose four more girls as co-workers.
The work in relay assembly room was related to assembly of
telephone relays where each relay consisted of a number of parts
which girls assembled into finished products. Following were the
observations made:
The incentive system was changed. Each girls extra pay was based
on the other five rather than output of a larger group. It was seen
that productivity increased as compared to before.
Productivity increased when two five minute rests, one in morning
session and other in evening sessions were introduced.
Subsequently, ten minute rests were also introduced. Productivity
increased.
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2.Relay assembly test room experiments
The researchers reduced the rest period to 5 minutes
but the frequency of rests were increased. Productivity
decreased slightly in this case as frequent rest intervals
affected their rhythm of work.
The number of rest was reduced to two of ten minutes
each. In the morning along with coffee or soup
sandwich was served. In the evenings, snack was
provided. It was observed that productivity increased.
Changes in workers and workday were introduced.
The girls were allowed to leave at 4:30 pm instead of
5:00 pm and later at 4:00 pm. Productivity increased.
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2.Relay assembly test room experiments
Researchers noticed that as each change was introduced
absenteeism decreased; morale increased and less
supervision was necessary.
Now researchers decided to revert back to original
position, i.e., no rest and other benefits.
Researchers believed that productivity would go down in
this case.
But to their surprise, they found that productivity
increased further rather than going down.
Thus, the researchers came to the conclusion that
productivity increase was not due to positive changes in
physical factors but because of a change in girls attitudes
towards work and their work group.
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3. Mass interviewing programme
Researchers conducted around 20,000
interviews to determine employees attitudes
towards company, supervision, insurance
plans, promotion and wages.
It was discovered during the course of
interviews that workers behavior was being
influenced by group behavior.
Researchers decided to conduct another
series of experiments as this conclusion was
not very satisfactory.
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4. Bank wiring observation room experiments
In these set of experiments researchers selected a group of
fourteen people in bank wiring room comprising of nine
wiremen, three solder men and two inspectors.
Hourly wage rate for the persons was based on average
output of each worker.
Bonus was determined on the basis of average group
output. Researchers thought that in order to earn more,
workers would produce more and to take advantage of
group bonus, they would help each other to produce more.
But this did not hold true. Workers decided the target for
themselves that was lower than the companys target.
For example, group target for a day was connecting 6600
terminals against 7300 terminals set by the company.
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The following reasons were given by workers
for restricted output.
Fear of unemployment: One of the primary reasons workers
gave for restricted output was that if there would be more
production per head, some of the workers lose employment.
Fear of raising standards: Workers feared that once they
reached the standard rate of production, management would
raise the standard of production, reasoning that it must be
easy to attain.
Protection of slower workers: The workers were friendly both
on the job as well as off the job. Thus, since slower workers
were likely to be retrenched, faster workers protected them by
not overproducing.
Satisfaction on part of management: as per workers
management seemed to accept the lower production rate as
no one was being fired or even reprimanded for restricted
output.
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Implications of Hawthorne experiments
Social factors in output: an organization is influenced by social factors.
Group influence: informal relationships are an important factor in
determining the human relations. Workers being social beings create
groups that may be different from their official groups. The group
determines the norm of behavior of members.
Leadership: leadership is important for directing group behavior.
Leadership cannot come only from a formally appointed superior as was
thought before. Bank wiring experiments showed that there may be
informal leaders. In some cases, informal leader is more important in
directing group behavior because of his identity with the group
objective.
Supervision: supervisory climate is an important factor affecting
productivity. Friendly to workers and genuinely concerned supervision
has a favourable effect on productivity.
Communication: communication is an important part of organization.
A better understanding between management and workers can be
developed by identifying their attitudes, opinions, and methods of
working and taking suitable action.
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Bureaucratic type of organization
Bureaucracy style of management was propounded
by Max Weber, a German sociologist
three types of power in organization: traditional,
charismatic and bureaucratic.
He was of the view that bureaucratic type of power
was the ideal one.
Characteristic of bureaucratic organizations is that
here the authority is based on position rather than
the people who occupy them.
A bureaucratic organization has high complexity,
high formalization and high centralization.
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Bureaucratic type of organization
By complexity we mean how much
differentiation like division of labour,
departmentation, number of levels in
organization hierarchy, etc, exists in the
organization.
Formalization refers the degree to which
organization relies on rules and procedures
to direct the behavior of its employees.
Centralization considers where the focus of
decision-making authority lies.
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Bureaucratic type of organization
Division of labour: Each persons job is broken
down into simple, routine and well-defined tasks.
Well-defined authority hierarchy: A multilevel
hierarchical formal organization structure with well
defined authority exists in a bureaucratic
organization with each of lower offices under the
control and supervision of a higher one.
Formal guides to behavior: Formal policies, rules
and procedures are followed to ensure uniformity
and to regulate the behavior of people in the
organization.
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Bureaucratic type of organization
Impersonal nature: one of the important
characteristic of this organizations structure
is its impersonal nature where decisions are
governed by rational factors than personal
factors.
Employee decisions based on merit:
selection and promotion of employees are
based on education, experience and other
qualifications of the candidates.
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Social systems approach
This approach of management extended the
implication of human relations approach
further.
Chester Bernard synthesized this concept
and according to him an organization is
essentially a cultural system composed of
people working in co-operation.
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Social systems approach
Concept of organization: Barnard defined formal organization as a
system of consciously coordinated activities of two or more persons.
Formal and informal organizations: Both formal and informal
organizations co-exist in an enterprise. Informal organization
exists to overcome the problems of formal organization.
Continuous interaction exists between formal and informal
organizations and both of them depend on each other.
Functions of an executive: Barnard identified three types of
functions an executive performs in a formal organization. These
are: (i) organization communication through formal interactions (ii)
formulation and definition of organization purpose (iii) securing
services from individuals in organization so as to achieve
organizational purpose.
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Social systems approach
Motivation: In addition to financial incentives, Barnard suggested a
number of non-financial incentives for motivating people like
opportunity of power and distinction, pride of workmanship,
pleasant organization, participation, etc.
Executive effectiveness: Barnard was of the view that leadership is
the most strategic factor in securing co-operation from people.
Leadership demands high caliber, technological competence, and
technical and social skills.
Organizational equilibrium: Organizational equilibrium refers to
the matching of individual efforts and organizational efforts to
satisfy individuals. Equilibrium of organization depends on the
individuals working in it, other organizations and society as a
whole.
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