Chapter1 Administration Laysdowntheobject Organization Combinationofhumanand materialresources Management Leads,guidesanddirectsthe organizationtoaccomplishthe object OrganizationandManagement trytoachievethatobject Systematiccorrelationbetween theresourcestoachievean objective

Laysdownthebroadpolicies foroperation Administrationdefinesthe organization Specialisation Specialization Compromising Organisation Approaches to Pub Ad Analysis InstitutionalApproach ManagerialApproach PoliticalApproach Managementusesthe organization

Major themes of different schools

Classicals Fayol,Taylor,GulickUrwick, Weber, 1. 2. 3. 4. 5. 1. Socialneedsofman Efficiency DivisionofWork Hierarchy Authority EconomicMan

Humanrelationsschool

Follett<bridgebetween classicalandbehaviouralists

withinanorganisation 2. Differentconceptof motivation 3. Relationshipbetween supervision,morale andproductivity

Major Ideas
Taylor Fayol Authority Responsibilityand Authorityshould becommensurate 3typesof authority: charismatic, traditiona,legal rational Authorityas vestedpower; cannotbe delegated; derivedfromthe lawofthe situation Authorityshould bebasedon socialskillsin securing cooperation ratherthan expertise

GulickUrwick Weber

Follett

Mayo

Local Self Government

TwotiersPanchayatiRajsystemisinexistenceintheStates/UTsofDadra&NagarHaveli,Daman andDiu,Goa,Lakshadweep,Manipur,PuducherryandSikkim.

Woodrow Wilson
Essay:TheStudyofAdministration.<theessaymarkedthebeginningofpublic administrationasasubjectofenquiry> Thestudyofadministrationdevelopedduetotheincreasingcomplexitiesofsociety,growing functionsofstateandgrowthofgovernmentsondemocraticlines. Objectiveofadministrativestudy o o Thefindoutwhatthegovernmentcandoandhowcanitdoitefficiently Tolayexecutivemethodsonstableprinciples

Administrationisthemostobviouspartofgovernment.Itisgovernmentinaction.

Taylor and Scientific Management

Taylor:FatherofScientificManagement o Books:Apieceratesystem,ShopManagement,ArtofCuttingMetals,Principlesof ScientificManagement Basictheme:Managementisatruescienceandhasitsownlawsandrulesthathave universalapplicabilitytoalltypesoforganizations Itwasconcernedwiththeapplicationofscientificmethodstomanagerialpracticesand productionprocesses.Focussedonshopfloororganization. Soldiering:Naturalandsystematic o o Tendencyonthepartoftheworkerstorestricttheoutput Reducesoldieringtoenhanceefficiency

Threeassumptions o o o Applicationofscientificmethodscanimproveorganizationalfunctioning Agoodworkeracceptstheordersofthemanagement;hedoesnotinitiateaction Everyworkerisaneconomicman

Objectofmanagement:Securemaximumprosperityfortheemployer,coupledwith maximumprosperityforeachemployee FourPrinciples o o o o Developscienceofworkthatreplacesruleofthumb Scientificselectionandtrainingoftheworkers Cooperationbetweenthemanagementandworkers Equaldivisionofworkandresponsibilitybetweenthemanagementandworkers

Hence:science,notruleofthumb;harmony,notdiscord;cooperation,notindividualism; maximumoutput,notrestrictedoutput;developmentofeachmantohisgreatestefficiency andprosperity

SMinvolvescompletementalrevolution.<ThisistheessenceofSM> o Onthepartoftheworkersandthemanagementastotheirduties,towardstheir workandothers. o Realizethatmutualinterestsarenotantagonistic.Bothpartiesaimatincreasingthe surplus

TechniquesofSM o FunctionalForemanship:Workerissupervisedandguidedbyeightfunctional foreman o o o MotionStudy:Techniqueofstandardizationofworkmethods. TimeStudy:Todeterminethestandardtimeforcompletionofwork. DifferentialPieceRatePlan:Workersarepaidalowpiecerateuptoastandard,a largebonusatthestandardandahigherpiecerateabovethestandard. o ExceptionPrinciple:Setdailytasks.Rewardforachievingtargetsandpenaltyfornot meetingit. o Routingsystem,moderncostsystemetc.

Criticism o o o Partialtheoryduetoitsconcentrationontheshopfloor Mechanistictheory:neglectedthehumanside. Underestimatedandoversimplifiedhumanmotivationtoexplainitintermsof economicfactors(monistictheoryofmotivation).Hawthorneexperimentsdepicted thisflaw o Physiologicalorganizationtheory:sacrificetheinitiativeofworker,individual freedom. o Oppositionfromthelabourunions(threattounionism)aswellasmanagers(lossin discretionandincreaseinwork). o o Increasedmonotonyandresultedintheabsenceofskillvariety Divisionofworkleadstoa)depersonalizationb)mayleadtoautomationofworkers

Evaluation o o Pioneerofhumanbeingsatwork Firsttoapplyquantitativetechniquestostudyindustrialmanagement

SMspreadasamovementandhadmajorimpactonthegrowingreformand economymovementsinPA.

Classical Theorists
Fayol,Urwick,Gulick,Folletandothers Akatraditionaltheory,formalorganizationtheory,mechanistictheory,structuraltheory, administrativemanagementtheoryandthemanagementprocessschool WhileSMhadfocusedonlyontheshopfloorlevel,Classicalsfocusedontheformal organizationstructureaswellastheprocessofadministration(management).However,like SMitadvocatestheconceptofeconomicman Characteristicfeatures:Specialization,hierarchy,rationality,impersonality,order,structure, economyandefficiency. Divisionoflabourisitscentraltenet.

Fayol (Functionalism)
Fatherofclassicaltheory Majortheory:Functionalism Book:GeneralandIndustrialManagement.Essay:TheTheoryofAdministrationoftheState Fayoldoesnotdistinguishbetweenbusinessmanagementandpublicadministration Notes Elementsofadministration:POCCC Planning o o o Foreseeandanticipate Itenablesseparationofshortruneventsfromlongrangeconsiderations Endowsforethoughttotheoperations

Organization o o o Toprovideitwitheverythingrequiredforitsfunctioning Twocategories:Materialorganizationandhumanorganization Everyorganizationhastoperformcertainmanagerialfunctions

Command o Itrestsoncertainpersonalqualitiesandknowledgeofthegeneralprincipleof management

Forcommand,themanagershouldhaveathoroughknowledgeofhispersonnel, eliminatetheincompetent,setagoodexample,conductperiodicaudit,notbecome engrossedindetail.

Coordination o o Harmonizingallactivitiesandefforts Itsaimistokeeptheeffortsofeachdepartmentcoincidentwiththeoverallaimof theorganization.

Control o Objectiveistoobtainconformitywiththeplanadopted,theinstructionissuedand principlesestablished.

Sixattributesofamanager:Physical,Mental,Moral,generaleducation,specialknowledge, experience

Hegives14principlesofadministration Emphasisedtheneedforsystematictraininginadministration Gangplank:theneedforleveljumpinginahierarchicalorganization.Breaksthescalar chain.ThoughFayolstressingonformalorganization,heisawaretothedangersof conformitytohierarchyandformalism.

TaylorFayolcomparison:TMH111 Criticisms o Neglectedthestructuralaspectwhiledevotingconsiderableattentiontofunctional classification o o Narrowempiricalbaseindevelopinghistheory Unityofcommandmayleadtostrengtheningofhierarchyandsuppressthereal differencesofoutlookwhicharerequiredforadynamicandinnovativeorganization o BernardandSimon:Amanagerialorganizationcannotbeexplainedpurelyinterms ofasetofprinciplesaboutformalorganizationstructure. o Humanrelationsschool:Fayolmostlyignoredthesocialpsychologicaloremotional needsoftheemployees

Evaluation o o o Triedtobuildauniversalscienceofmanagement Wroteextensivelyontheproblemsofpublicadministration Hemadeasystematicanalysisoftheprocessofmanagementandadministration andadvocatedthatmanagementcanandshouldbetaught.

Hewasapioneeroftheconceptofviewingmanagementasbeingmadeupof functions<functionalism>

Animportantpartofhistheoryisthatatthehigherlevelstheproportionof technicalknowledgediminishes,butadministrativeskillandknowledgeareofgreat importance

Fayolsprinciplesarewidelyusedtodayinplanninganddevelopingcompany organizationstructure.<especiallyunityofdirectionandunityofcommand>

o o

Fayolsfunctionalorganizationisstillthebestwaytostructureasmallbusiness Hewasnotunawareofthehumanfactor.Hesaysthathisrulesarenotrigidandcan beaddedandsubtractedto.

Gulick and Urwick

PapersonScienceofAdministration(1937)byGandUwasalandmarkintheclassical theoryofadministration. Theybelievedthatitispossibletodevelopascienceofadministrationbasedonprinciples Theysynthesisedtheclassicaltheoryoforganizationwhichisalsoknownasthe AdministrativeManagementTheory Importanceofstructureoforganization o Theystressedontheimportanceofstructureoforganizationindeterminingits functioning<differedfromFayol> o Urwickitisimpossibleforhumanitytoadvanceitsknowledgeoforganization unlessthefactoronstructureisisolatedfromotherconsiderations,however artificialsuchisolationmayappear. o Conceivedoforganizationmainlyasadesigningprocess.

Principlesoforganization o Gulick:Tenprinciplesoforganization: Divisionofworkorspecialization(mostimportant) Basesofdepartmentalorganization Coordinationthroughhierarchy Deliberatecoordination Coordinationthroughcommittees Decentralisation Unityofcommand Staffandline

 o o o

Delegation Spanofcontrol

Hesaidthatdivisionofworkisthebasisfororganization Urwick:Eightprinciplesoforganization<notes> LaterUrwickdeveloped29principles

Executivefunctions/Functionsofanadministrator o o Gulick:POSDCORB Planning:Identificationofactivitiesandtheirprioritisationtoreachthegoalsofthe organization o o o o o o Organization:lookingatthestructureofadministration Staffing:Concernedwithallaspectsofpersonneladministration Directing:Ordersissuedbythemanagerstothesubordinates Coordination:tosecurecooperationandteamwork Reporting:Symbolizesupwardflowofinformationtotheexecutive Budgeting:Coverstheentirefieldoffinancialadministration

TheoryofDepartmentalisaton o Itaddressestheissuesofbasesonwhichworkmaybedividedanddepartments created o Gulick:4P Purpose(function):Identifymajorfunctionsandgoalsoforganizationand createdepartmentsforeachoneofsuchfunctions Process:Allworkbasedonsimilarprocessorskillshouldbegrouped together Person(clientele):Membersservingsimilarclienteleshouldbegroupedto formadepartment Place:Allfunctionsperformedinagivenareaareclubbedtogether

Otherfeatures o Theydidnotfavourorganizationsheadedbypluralbodieslikecommitteesbut consistingofasingletopexecutive.Committeeislikeacorporationwithoutasoul tobedamnedorabodytobekicked. o Staffprinciple:Bornoutofunityofleadership.Thestaffrendersspecialandgeneral assistancetotheleader. o Delegation:Administratorsshouldkeeptherequisiteauthoritywiththemand delegatetheresttotheirsubordinates.

o o

Authorityandresponsibilityshouldbecoterminous,coequalanddefined. Spanofcontrol:Anofficialcannoteffectivelycontrolsimultaneouslymorethana certainnumberofsubordinates.

Inhislaterwritings,Gulickemphasisedtheneedtotakehumanfactorintoaccount, greaterdecentralisationinplaceofthepresentcentralisedandhierarchical structure.

Gulickalsoidentifiedtimeasacrucialfactorinorganisations.Fiveaspectsoftime: timeasinput,asoutput,astheflowofevents,asatimegapbetweentwoormore significantevents,timingasamanagementpolicy.

CriticalEstimate o o Nouniversalvalidityofprinciplesofadministration Simoncalledtheprinciplesashomelyproverbs,myths,slogans,inanities.Forevery principleonecanfindanequallyplausibleandacceptablecontradictoryprinciple o Thebasesofdepartmentalorganizationarecriticisedonthebasisthattheyare incompatiblewitheachother.Thereisanoverlapbetweenthemandtheyaresaid tobevague. o o Neglectofthehumanelementinanorganization Theyhaveshownconcernonlyfortheformalorganizationandtotallyneglectedthe informalorganizationalprocess o Dynamicnatureofadministrationandtheeverchangingsettinginwhichitfunctions isnotgivenadequateattentionbytheclassicaltheorists. o However,theycapturedthedevelopmentofthefieldofpublicadministrationand pointedtotheimportanceofPubAdasamanagerial,political,moralandethical concern.Therecannotbeanyseriousstudyofthescienceofadministrationwithout referencetotheprinciplesoforganization.

MooneyandReileyinnotes

Max Weber
Webersnamesynonymouswithbureaucracy Histheoryofdomination,leadershipandlegitimacyareimportant Theoryofauthority o o Differentiatesbetweenauthority,powerandcontrol<notes> Comparedtopower,authorityischaracterizedbylegitimacy

Alladministrationmeansdomination(i.e.administrationmeansexerciseof authority)

Fiveessentialcomponentsofauthority:therulers,theruled,willoftherulerto influencetheconductofruled,evidenceoftheinfluenceoftherulersintermsof objectivedegreeofcommand,evidenceoftheinfluenceintermsofthesubjective acceptance

Anauthorityexistsaslongasitisacceptedaslegitimatebytheruled

Threepuretypesoflegitimateauthority<notes> o Traditional:conformitywithcustomsandpersonalarbitrarinessaretwo characteristicsoftraditionalauthority.Underthistypeofauthority,the administrationbecomesirrationalasdevelopmentofrationalregulationsisimpeded astherewouldbenostaffwithformalandtechnicaltraining. o Charismatic:Charismaanditsacceptanceformsthebasisforlegitimacy.Thepersons whoreceivethecommandsobeytheleaderbecausetheybelieveinhis extraordinaryabilitiesratherthanthestipulatedruleorthedignityofaposition. o LegalRational

Webermaintainsthatlegaltypeofauthorityordominationaloneissuitableforthemodern governmentsandhedesignedhismodelofbureaucracykeepingthelegalrationalityin mind.

Bureaucracyformsthekerneloftheadministrativesystemunderthelegalrationalauthority system Characteristicsoflegalrationalbureaucracy<notes> Weberthoughtthatthislegalrationalbureaucracyistechnicallysuperiortoallother administrativesystems.Purelybureaucratictypeofadministrativeorganizationiscapableof attainingthehighestdegreeofefficiency o Makespossibleahighdegreeofcalculabilityofresultsfortheheadsofthe organization. o o Itiscapableofapplicationtoallkindsofadministrativetasks Peopleonceruledbymonocraticbureaucracycanneverthinkofanyother alternativeformoforganisation.

Someimportantaspectsofbureaucracy o ImpersonalOrder:Oneofthemostimportantideasofthemodelisthatimpersonal order(depersonalisation)shouldorienttheactionsofthebureaucracybothinthe issuanceofthecommandstosubordinatesandtheirobediencetothem.

Rules:Continuousorganisationofofficialfunctionsboundbyrules.Theirrational application,however,requiresspecialisedtraining.

Sphereofcompetence,Hierarchy,Personalandpublicfunds,writtendocuments

Criticisms o Basedonthreepoints:therationalityinhismodel,suitabilityofthemodeltothe administrativerequirementsofdifferentplacesandchangingtimes,andwhether themodelcanattainmaximumefficiencyasvisualised. o Notes

Why is bureaucracy hard to destroy? Nopersoninsideoroutsidetheorganisationcaninfluencethesystemofbureaucracyforhis personalorvestedinterests Withfeatureslikehierarchy,ruleboundednessandimpersonalorder,thebureaucracy becomeslikeanorderlymachinewithitsroutinemarchwhichisunshakableandunalterable Thusnosingleinfluenceisentertainedfrominsideoroutside Hencehardesttodestroy

Detailed criticism of Weber Groundsofcriticism 1. Dysfunctionalaspects 2. Illeffectsonhumanresource 3. Unsuitabilitytocomplexenvironment 4. Conceptualflawsinverymentalmapofbureaucracy 5. Usurpativetendencies Dysfunctional aspects VictorThomson o Bureaupathologies:becauseofexaggeratedfocusonhierarchyandrule boundedness o Endsmeansreversal:rulesbecomemoreimportantthangoals

RobertMerton o Dysfunctionalconsequences:detrimentalduetooveremphasisonstructural features o Goaldisplacement:instrumentalvaluesbecometerminalvalues

Trainedincapacity:trainedtobecomeincapablebytheoveremphasisonrulesand norms

PhilipSelznick o Goaldisplacement:fixationoninternalproblemscausesgd

AlvinGouldner o o Goaldistortion Bureaucraticapathy:anattitudeofapathyandindifferencewherebythe functionariesstopexercisingtheirdiscretionandstartworkingtorule o Alsobecausewanttoavoidmistakes.Hencedonttakeinitiative

ThorsteinVeblen o o Trainedincapacityduetothetypeofsocialisation Fromcreativeandinnovativetoruleboundandrigid

MichaelCrozier o Officialsrefusetolearnfromtheirmistakes:Bureaucraticphenomenon

Parkinson o Parkinsonslaw

Peterprinciple

Behavioral ill effects Bureaucracyneglectsthehumansideoftheenterprise Bernard Argyris o Maturityimmaturity;incongruence

MarchSimon o o Excessiveconcernforformalism Impersonalitydetrimentaltoteamspirit

Coercionfromsuperiorssideandapathyfromthesubordinatesside Filepushingbehaviour

Unsuitable to Complex environment RobertPresthus o Modelmightnotbeapplicabletodevelopingcountries

Nonecologicalmodel Riggs ClauseOffe

o o o

SystematicRationalityandOrganisationalrationality Organisationalrationalitymustgivewaytosystematicrationality SRisamodifiedformofpurelegalrationality

Usurpative tendencies Ministerknowsless AlfredDiamant o Weberhadnotedthatpowerinterestsofbureaucracycanharmpoliticalleadership

DavidBeethem o Inherenttendencyinbureaucracytoexceedtheroleofaninstrumentandtousurp thegoalsettingrolewhichactuallybelongstothepoliticalleadership

Problems with the model itself PeterBlau o Aprioritheory/model

Fredrich o Idealtypeisanoxymoron

Suggested reforms 1. Collegiality 2. Separationofpowers 3. AmateurAdministration 4. Representation 5. Directdemocracy Threepointofviewsofbureaucracy

Behavioural Achievement ofpurpose

Perspectives of bureaucracy
Typesofbureaucracy FMMarx GuardianBureaucracy CasteB PatronageB MeritB Post Weberian Development VariousdefectswithWebersmodel Ledtofurtherresearch Importantdevelopments o o o o o PublicChoiceApproach CriticalPerspective NPM CPA DA MerleFainsod Representative StatePartyDominated MilitaryDominated RulerDominated RulingBureaucracy

Structural

 Mary Parker Follett (Dynamic Administration)

Regardedasabridgebetweentheclassicalapproachandthebehaviouralhumanrelations approachtoorganisation. Viewedorganisationasasocialsystemandadministrationasasocialprocess Broughtoutthehumandimensionoforganisation Books:TheSpeakeroftheHouseofRepresentatives,TheNewState,CreativeExperience, DynamicAdministration Accordshighimportancetotheproblemsofconflictinorganisations o o ConstructiveConflict Conflictsshouldberegardedasanormalprocessinanyactivityofanorganisation bywhichsociallyvaluabledifferencesregisterthemselvesfortheenrichmentofall concerned. o o Becauseofindividualdifferencesconflictisunavoidableinhumanorganisations Oneshouldmakeuseofitforconstructivepurposes

Waysofresolvingaconflict o Domination:victoryofonesideoveranother.Theeasiestway.Butdoesnotaddress thecauseofconflict;itmayresurface o o Compromise:Eachsidegivesupalittle.Widelyacceptedmethod Integration:Twodesiresareintegratedandneithersideneedstosacrificeits desires.

Integrationpreferredovercompromise o Integrationcreatessomethingnew,leadstoinventionandtotheemergenceofnew values o Goestotherootoftheproblemandputsanendtotheconflictpermanently

BasesofIntegration:ThreeSteps o Firststeptowardsintegrationistobringthedifferencesintotheopen;Identifyand understandtherealissuesinvolvedinaconflict o o Breakupthedemandsintoconstituentparts;involvesexaminationofsymbols Anticipationofconflict;andprepareforresponse.Twotypesofresponses:circular andlinear.Circularbehaviourasthebasisofintegrationisthekeytoconstructive conflict

Obstaclestointegration

Notes

GivingOrders o 4steps:Consciousattitude,Responsibleattitude,Experimentalattitude,Result attitude o o Issuingordersisverydifficult Theemployershouldconsiderthewaysandmeansofformingthehabitsamong theemployeestoensureacceptanceoftheorders o Responsetotheordersdependsupontheplaceandcircumstancesunderwhich ordersaregiven.Strengthoffavourableresponseisinverselyproportionaltothe distancethattheordertravels o Themannerofgivingordersisequallyimportant.Tyrannicalandoverbearing conductofofficialsisanimportantreasonformanyacontroversy. o Thesolutionistodepersonalisetheorders

DepersonalisingOrders o Involvesastudyoftheproblemstodiscoverthelawofthesituationandobeying orders. o Oneshouldnotgiveorderstoanother,butbothshouldagreetotakeordersfrom thesituation o Depersonalisingorders,however,doesnotmeanthatoneshouldnotexercise authority.Itonlymeansexercisingtheauthorityofthesituation. o Ordersmustalwaysbeintegraltothesituation

Power,authorityandcontrol o Powerastheabilitytomakethingshappen,tobeacausalagent,toinitiate change Poweroverandpowerwith Reducepoweroverwithfunctionalutility.InFUeachhasfunctionsandone shouldalsohavetheauthorityandresponsibilitywhichgoesonwiththat function Powercanneverbedelegatedorhandedoutasitisaresultofknowledge andability.Butwecancreateconditionsforthedevelopmentofpower o Authority Isvestedpowertherighttodevelopandexercisepower Functionalauthority Responsibilityalsoflowsfromfunctionandsituation

Control Shebelievesinfactcontrolratherthanmancontrolandincorrelated controlthansuperimposedcontrol

Planningandcoordination[Fourprinciplesoforganisation] o o o o Coordinationasthereciprocalrelatingofallfactorsinasituation Coordinationbydirectcontrol Coordinationintheearlystages Coordinationasacontinuingprocess

Leadership:notes Criticism o Ignoredthesocialnatureortheprocessesinvolvedinthemanagementof organisation o o o Didnotinterpretsocialcontentoforganisationscientifically Notasystematicthinker;hardtofindathreadofconsistency Shedidnotgainstatureasanadministrativethinkerbecause Didnothavetheinstitutionalbasetofacilitateasecureposition Ideologyofcooperation,negotiation,conflictresolutionandconsensuswere notinsyncwiththeworldduringherprofessionallife

Evaluation o Herideasconvinceeveryoneaboutthevalidityandjustificationofmultidimensional focusofheruniversalisticapproach o o Urwickherconceptionswereaheadofhertime DruckerTheProphetofManagement

Elton Mayo (Human Relations)

FatherofHumanRelationstheory MostfamousforhisHawthornestudies Basedonextensivestudiesheconcludedthattheworkersproductivityisnottheresultof workingconditionsbuttheresultofemotionalresponseoftheworkerstothework performed. Hawthorneeffect Emphasisedgroupbehaviouranddynamicsinindustrialorganisationgreatlyinfluencethe productivityoftheworker Importanceofinformalgroupsinorganisation

Evaluation o Hewasapioneerinunderstandingtheproblemsoftheindustriallabourfroman angledifferentfromthetraditionalapproachofscientificmanagementera o Examinedhumanrelationsinorganisations,employeeemployerrelations,stability ofthelabour,supervisionetcofindustrialworkers o o Hawthornestudieshavebecomehistoricandlandmark Hisworkpavedthewayforadequatecommunicationsystembetweenthelower rungsoftheorganisationandthehigherlevels o Innutshell,thesignificanceofHawthorneinvestigationsbyMayowasindiscovering theinformalorganisation,whichitisnowrealised,existsinallorganisations.

ClassicalsvsHumanRelation:Tableonpage132TMH

Chester Bernard (Functions of executive)

Fatherofthesocialsystemschool Books:Thefunctionsoftheexecutive FormalOrganisationasasystemofhumancooperation o o o o Individualsconstrainedbyfactorsofthetotalsituationforcooperation Limitingfactors:Biological(mostimp),physicalandsocial Toovercomelimitations:Cooperativesocialaction Buildshistheoryoforganisationwiththebasicpremisethatindividualsmust cooperate Whyshouldanindividualcontributehisactivitiestotheoperationsofanyorganisation? o o o Bernardstronglydisapprovestheconceptofeconomicman Theoryofcontributionsatisfactionequilibrium Contributionsarepossibleonlywhenitisadvantageoustoindividualsintermsof personalsatisfaction.Sotheremustbesomeincentives/inducements. Identifies4specificinducements o o o o Materialinducements:money,thingsorphysicalconditions Personalnonmaterialopportunities:distinction,prestigeandpersonalpower Desirablephysicalconditionsofwork Idealbenefactions:respect,prideetc

Maintainsthateconomicrewardsareineffectivebeyondthesubsistencelevel Hefeelsthattheprimaryfunctionoftheexecutiveistohandletheeconomyofincentives withinanorganisation

Organisationscanbeformalorinformal Formalorganisation:systemofconsciouslycoordinatedactivitiesorforcesoftwoormore persons o o Threeelements:communications,willingnesstoserveandcommonpurpose Willingnessimpliessurrenderofpersonalconductanddepersonalisationofpersonal action o Purposeisnecessaryforcooperation.Therearecooperativeandsubjectiveaspects ofpurpose o Apurposeshallsecurecooperationaslongasthereisnoseriousdivergence betweenthecontributorssubjectiveunderstandingofthatpurposeanditsobject o o Distinctionbetweenorganisationpurposeandindividualmotive Theaccomplishmentofacommonpurposethroughthepersonscontributing towardsitcanbeachievedonlythroughcommunication o Fourcharacteristicsofformalorganisations:systems,depersonalisation, specialisationandinformalorganisations.

InformalOrganisations o Individualsintheorganisationcontinuouslyinteractbasedontheirpersonal relationshipsratherthanorganisationalpurpose.Becauseofthecontinuousnature ofinteractions,relationsbecomesystematisedandtheyresultintowhatarecalled informalorganisations. o InformalOrganisation:Theaggregateofpersonalcontactsandinteractionsandthe associatedgroupingofpeople. o Functions:Communication,maintenanceofcohesivenessthroughregulatingthe willingnesstolearnandtheabilityoftheobjectiveauthority,andmaintenanceof thefeelingofpersonalintegrity,selfrespectandindependentchoice o Bothformalandinformalorganisationarenecessaryforeachothersproper functioning

TheoryofAuthority o o Introducesacceptanceasthebasisofauthority Fourconditionstobesatisfiedforauthoritytobeaccepted Whenthecommunicationisunderstood Consistencywiththeorganisationalpurpose Compatibilitywithpersonalinterests Physicalandmentalabilitytocomply

Orderswillbeacceptedwhen: Abovefourconditionsaresatisfied Ordersfallwithinthezoneofindifference Whenthegroupinfluencestheindividualresultinginthestabilityofthe zoneofindifference

Theprincipleofgoodexecutiveconductisthattheordersthatcannotbeobeyed shouldnotbeissued. Ifsuchissueisnecessary,thenthegroupmustbepersuadedoroffered inducements

Zoneofindifference:Theordersinthiszoneareunquestionablyacceptable.The zonewillvarydependingupontheinducementsofferedandtheburdensand sacrificesmadebytheindividualsintheorganisation.

Thefictionofsuperiorauthorityisneededbecause Itenablestheindividualtodelegateupwardortotheorganisation, responsibilityforwhatisanorganisationdecision Thefictiondriveshomethepointthatwhatisatstakeisforthegoodofthe organisation.

o o

Asuperiorisnotanauthority.Authorityisoftheorganisation. Authorityisimputedtocommunicationsfromsuperiorsiftheyareconsistentand arecreditedtothepositions:Authorityofpositionandauthorityofleadership

Authoritydependsonthecooperationofsubordinatesandthesystemof communicationintheorganisation.Principlesofcommunication<innotes>

Responsibility<minorpoint> o o Itisthemostimportantfunctionoftheexecutive Definition:thepowerofaparticularprivatecodeofmoralstocontroltheconductof theindividualsinthepresenceofstrongcontrarydesiresorimpulses o o Executiveactionsarealwaysconditionedbytheconceptsofmorality Largeorganisationscannotbeoperatedunlessresponsibilityisdelegated.

Decisionmaking o Decisionsasactsofindividualswhicharetheresultofdeliberation,calculationand thoughtinvolvingtheorderingofmeanstoends o o Decisionmakinginorganisationsisaspecialisedprocess Twotypesofdecisions

Personal:takenoutsidetheorganisationbasedonincentivesorganisations offer.Neednotbelogical

Organisational:relatetoorganisationalpurpose,informationbased,logical andcanbedelegated

Executivefunctions o Definepurposeandobjectivesatalllevels Thepurposeoftheorganisationmustbeacceptedbyallthecontributorsto thesystem Assumptionofresponsibilityanddelegationofauthorityarecrucialaspects ofthefunctionsoftheexecutive o Purpose,objectiveanddirectiongetredefinedateverylevel

Establishandmaintainasystemofcommunicationintheorganisation Definingschemeoforganisation Maintainingapersonnelsystem Securinganinformalorganisation

Obtaineffortsandservicesfromsubordinatestoachievepurpose Twomainaspects:bringingofpersonsintocooperativerelationshipwiththe organisation,andelicitingservicesaftertheyhavebeenbroughtintothat relationship Donebyprovidingincentives,deterrents,supervision,control,education andtraining Leadershipiscriticaltoachievecooperation

Criticism o o Abstractnessofthepresentation Notgivenfulldescriptiveorprescriptiveattentiontotheprocessofformulationof purpose o Histheoryofauthorityunderstatestheroleofobjectiveauthorityandgivesan impressionthatindividualswillhaveanoptiontoacceptorrejectauthorityinan organisation.

Evaluation o Elucidatedcooperationasabasicnecessityofhumanlifeandthecauseofhuman development o o Presentedthecomplexityoforganisationprocesses Decisiontheoryandzoneofindifferenceimportant

o o o

Roleofinformalorganisations Dismantlestheconceptofeconomicman Combinesthescienceoforganisationwiththeartoforganising

Herbert Simon
Researchedonawidevarietyoffieldsinsocialsciencesandcomputerscience Books:AdministrativeBehaviour,Organisation,PublicAdministration,HumanProblem Solving AdministrativeScience o Soughttodevelopascienceofadministrationandmadehumandecisionmakingas thecentralthemeofhisstudies o o o Decisionmakingasaprocessofdrawingconclusionsfrompremises Equatedadministrationwithdecisionmaking Recommendedempiricalapproachtothestudyofadministrationasopposedto principlesapproach o o o Efficiencyandeconomyascriteriaforadministrativeeffectiveness Methodologyoflogicalpositivism Disapprovedpolicyadministrationdichotomy o Proposedfactvaluedichotomy

Twotypesofadministrativesciences:PureandPractical

Critiqueofclassicaltheory o o o o Narrownessandsterilityoftraditionalapproach Principlesofadministrationasproverbsandmyths Foreveryprinciple,anoppositeprincipleexists Descriptionoftheadministrativesituationisfirstrequiredtocomeoutwithanykind ofprinciples o Thereasonfortheambiguityclassicalprinciplesistheinadequatediagnosisof situationsanddefinitionsoftermsandlackofdetailedresearchintorealsituations. o Themissingfactor,hesays,iscorrectdecisionmaking

Decisionmaking o o Organisationasastructureofdecisionmakers Decisionsaremadeatalllevelsoftheorganisation

EachdecisionisbasedonanumberofpremisesandSimonfocuseshisattentionon howthesepremisesaredetermined Thesepremisespertaintothedecisionmakerspreferences,social conditioning,andcommunicationshereceivesfromcomponentunitsofthe organisation

Decisionmakinginvolvedthreephases o o o Intelligenceactivity:findingoccasionsfordecisionmaking Designactivity:findingpossiblecoursesofaction Choiceactivity:choosingamongcoursesofaction

FactandValueindecisionmaking o Onemustexcludevaluejudgmentsandconcentrateonfacts,adoptprecise definitionofterms,applyrigorousanalysis,andtestfactualstatementsorpostulates aboutadministration o o Everydecisionconsistsofalogicalcombinationoffactandvaluepropositions Mixedissueoffactandvalueimpingeonadministrationcomplicatingthedecision process o Tobringoutthedifferencebetweenfactandvalue,themeansendsdistinctionis used Insofarasdecisionsleadtotheselectionoffinalgoals,theymaybetreated asvaluejudgmentsandinsofarasthedecisionsrelatetoimplementation ofsuchgoals,theymaybetreatedasfactualjudgments o Behaviourinanorganisationisintendedlyrationalincharacter,adjustedtothe goalsthathavebeenerected

RationalityinDecisionMaking o Rationalityrequiresatotalknowledgeandanticipationoftheconsequencesthatwill followeachchoice.Italsorequiresachoicefromamongallpossiblealternative behaviours o Rationalityintermsofmeansendsconstruct.Ifappropriatemeansarechosento reachdesiredends,thedecisionisrational o Simonsumsuptheinherentproblemsofmeansendsanalysis Endsthroughaparticularbehaviouralternativeareincompletelyor incorrectlystatedthroughthefailuretoconsideralternativeendsthrough alternativebehaviour

Inactualsituationsacompleteseparationofmeansfromendsisusually impossible

Themeansendterminologytendstoobscuretheroleoftimeelementin decisionmaking

Differenttypesofrationality:objective,subjective,conscious,deliberate, organisational,personal

Disputestheconceptoftotalrationalityinadministrativebehaviour.Human behaviourisneithertotallyrationalnortotallynonrational.Itinvolvesbounded rationality

Fromoptimisingdecisionstosatisficingdecisions

Modelofdecisionmaking o o Fromeconomicmantoadministrativeman Asadministrativemancannotperceiveallpossiblealternativesandconsequences, heinsteadofarrivingatoptimalsolutions,issatisfiedwithsatisficingsolutions. o Makeshischoicesusingasimplepictureofthesituationandtakesintoaccountjust afewofthefactorsheregardsasmorerelevant

Typesofdecisions o o o o ProgrammedandNonprogrammed Programmed:repetitiveandroutine.Decisionsbasedonestablishedpractices Nonprogrammed:novelandunstructuredandhavetobetackledindependently. Themaindifferencebetweenthesetwotypesisthatinthecaseofprogrammedthe organisationprovidesthealternativesthroughroutinesandinthecaseofnon programmedtheorganisationonlyprovidestheparametersforthesearch procedures o Itispossibletoconstructmathematicalmodelstomakedecisions.

OrganisationalInfluences:internalandExternal o Internalinfluencethroughestablishingintheemployeesattitudesandhabitswhich leadhimtodesireddecisions.Achievedthroughorganisationloyalty,concernwith efficiencyandtraining o Externalinfluenceinvolvesimposingontheemployeedecisionsreachedelsewhere intheorganisation.Achievedthroughauthorityandadvisoryandinformational services.Thesearelistedbelow o Authority:acceptedinthezoneofacceptance

Organisationalloyalties:fulfilsthefunctionofmakingindividualsintheorganisation confinethemselvestotheirtasksinsteadofprobingintothebasicsoftheproblems

Adviceandinformation:Collectingdependableinformationandproperutilisationof itensuresgreatereffectivenessindecisionmaking

Training:Anefficienttrainingprogrammewouldfacilitategreaterdiscretiontothe individualindecisionmaking.

Administrativeefficiency o o Anadministratorshouldbeguidedbythecriterionofefficiency Efficiencydictatesthechoiceofalternative,whichproducesthelargestresultsfor thegivenapplicationofresources o Whenresources,costsandobjectivesarevariable,decisionscannotbetakenpurely onthebasisofefficiencycriteria.However,whenthesearegiven,efficiency becomesthecontrollingfactorofadministrativechoice. o Inhislaterwritings,Simondownplaysefficiency.Heappliesitonlytothelowerlevel decisions,ashigherleveldecisionsdonotlendthemselvestomeasurementand comparability. o Refernotesaswell

Criticism o o Relegatedsocial,political,economicandculturalfactorsintothebackground Exclusionofvaluepremiseswouldsteerthestudyofpublicadministrationto mechanical,routineandlessimportantaspects o Simonsideaoffactbasedadministrativetheoryismorerelevanttobusiness administrationthanpublicadministration o BernardcriticismofSimon:didnottakeintoaccounttheenormousamountof uncertaintyinvolvedinmostdecisions;didnotpaysufficientattentiontothe processesofcommunicationwithinorganisations o o Simonsanalysisassumesthatadministrationplaysasimilarroleinallsocieties Efficiencyneednotbetheonlygoalofadministrationbecausethereisawhole rangeofothermajorcategoriesoforganisationalpurposes o Histheoryofdecisionmakingisextremelygeneral.Itdoesnotprovidedetailsto guidetheorganisationplanners.

ArgyriscritiqueofSimon o Excludesvariableslikeinterpersonalrelations,needforselfactualisation,etcthat arecentraltoorganisationbehaviour

o o

Simonstheorywouldhavenoplaceforselfactualisingindividuals Simonemphasisestheimportanceofauthoritystrcutures

Evaluation o Providedinsightsintotheinteractionbetweendecisionmakingprocessand administrativebehaviour o Majorcontribution.Stimulatedfurtherresearch.

Behavioural Approach or New Management School: McGregor, Argyris, Likert Douglas McGregor
Demonstratedtheunrealisticandlimitingassumptionsoftraditionaltheoriesof managementconcerninghumannatureandthecontrolofhumanbehaviourinan organisationalsetting Provedthatrelianceonauthorityastheprimarymeansofcontrolinindustryleadsto resistance,restrictionofoutputandindifferencetoorganisationobjectives. Book:TheHumanSideoftheEnterprise,TheProfessionalManager ThemainquestionheaddressedinTheHumanSide..waswhethersuccessfulmanagersare bornormade Hesaysthetheoreticalassumptionswhichthemanagementholdsaboutcontrollinghuman resourcesdeterminethewholecharacteroftheenterprise Everymanagerialactrestsonatheory Allcontrolisselectiveadaption.Managerialcontrolshouldnotbeviolativeofhumannature ifithastobeeffective. Wecanimproveourcontrolonlyifwerecognizethatcontrolconsistsinselective adaptationtohumannatureratherthaninattemptingtomakehumannatureconformto ourwishes Controlinhumanaffairscanbeviewedasanintegrationofhumanbehavioureither throughcoercivecompulsionorthroughmotivationalselfcontrol TheoryX:Thecoercivecompulsions o o o Traditionalviewofdirectionandcontrol.Carrotandsticktheory. Averagehumanbeinghasaninherentdislikeforworkandwilltrytoavoidit Hence,mostpeoplemustbecorrected,controlledandthreatenedwithpunishment togetthemtoachieveorganisationalobjective o Averagehumanbeingpreferstobedirected,wishestoavoidresponsibility,haslittle ambitionandwantssecurityaboveall SolongastheassumptionsofTheoryXcontinuetoinfluencemanagerialstrategy,wewill failtodiscover,letaloneutilisethepotentialitiesoftheaveragehumanbeing. Commandandcontrolenvironmentreliesonlowerneedsformotivation TheoryY:Assumptionsofintegrationandselfcontrol o Engaginginphysicalormentaleffortisasnaturalasplayorrest

Massexercises,selfdirectionandselfcontrolcanbeshownbypeopletoachieve objectives

Commitmenttoobjectivesisafunctionoftheawardsassociatedwiththeir achievement

o o o

Avghumanbeingcanlearnnotonlytoacceptbutalsotoseekresponsibility Creativityandingenuityiswidely,notnarrowly,distributedintheproblem Conditionsofmodernindustriallifeleadtoonlypartialutilisationoftheintellectual potentialitiesofahumanbeing

TheoryYpointstothefactthatthelimitsonhumancollaborationintheorganisational settingarenotlimitsonhumanbehaviourbutofmanagementingenuityindiscoveringhow torealisethepotentialofhumanresources

ThecentralprincipleimplicitinTheoryYisthatintegrationofbehaviouristhekeyprocessin management

Theconceptofintegrationandselfcontroldemandsthattheneedsoftheindividualand thatoftheorganisationshouldberecognised. McGregorcallsTheoryYanopeninvitationtoinnovation Managementbyintegrationandselfcontroldoesnottackanynewsetofdutiesontopof theexistingmanagerialload.Ratheritisjustadifferentwayoffulfillingresponsibilities ScanlonPlan o Wasaphilosophyofmanagement,byLesiaur,basedontheoreticalassumptions entirelyconsistentwithTheoryY o WasfoundthatScanloncompaniesperformedbetter

Participation,whichgrowsoutoftheassumptionsofTheoryY,offerssubstantial opportunitiesforegosatisfactionoftheworkersorsubordinatesandhenceeffects motivationtowardsorganisationalobjectives

RelevanceofTheoryYtolinestaffrelationship o o o o Allmanagershavebothlineandstaffresponsibilities TheoryYstressesontheteamworkateachlevel Helpsinimprovinglinestaffcollaboration TheoryYcancontributetothefullestdevelopmentofthepotentialitiesofthe employeesintheirrespectiveroles,whichtheycanfillthebest

Theconceptoftransactionalinfluence o Themanagementofdifferencesorbuildingamanagerialteamisnotasimplematter ofmanagerialpowersorcontrols

Whencertainsocialelementsastrustandmutualsupportarepresent,thereisno needforconcernaboutpowerequalisationorthelossofresponsibilityandstatusin managerialhierarchy

Educationofmanagers.Organisationrealityisamatterofperceptionandworldviewofthe individual. Workingthroughdifferences o Threewaystodealwithdifferences o Divideandrule Suppressionofdifferences Workingthroughdifferences

Thethirdoneshouldbeusedsothattheinterplaybetweenmembersmayyieldto innovation,commitmentanddecisionsandstrengtheningofrelationshipswithinthe group

Evaluation o HewasinterpretedasadvocatingTheoryYasanewandsuperiorethic.Heonly wantedmanagerstoinvestigatethesetwosetsofbeliefsanddevelopmanagement strategiesthatmadesenseinacontext o o Impracticalityandovergeneralisation Somecriticisedhisideasasbeingtoughontheweakermembersofsociety,those whoneedguidanceandwhoarenotnecessarilyselfstarters o Madedecisionmakersrealizethepotentialforcollaboration,inherentinhuman natureandhumanresources o TheoryX&Yareanalyticaltoolsofreferencethroughwhichmanagerialbehaviour canbeanalysed,studied,predictedandcorrected o Hiswritingsrepresentamineofideasfromwhichthetheoristsofmanagementand managerscanlearnstrategies o Participativemanagement

Chris Argyris
Argyrisresearchesrelatetofourareas: o Impactofformalorganisationalstructures,controlsystemsandmanagementon individuals o o Organisationalchange,particularlyexecutivebehaviour Roleofsocialscientistasaresearcherandactor

Individualandorganisationallearning

Manybooks:PersonalityandOrganisation,OrganisationandInnovation Hefocusesontheindividualsrelationshiptotheorganisationandtheconflictbetweenthe individualssocialandpsychologicalneedsandtheexigenciesoftheorganisation PioneerintheapplicationoftheTgrouptechnique Theformalorganisation o Thereisanincongruencebetweentheneedsofamaturepersonalityandthe requirementsofaformalorganisation o Thisleadstosituationsinwhich:employeeshaveminimalcontrolovertheirwork, theyareexpectedtopassiveanddependent,theyhaveshorttimeperspectiveand areinducedtoperfectsomeshallowtasksrepeatedly o Incongruenceincreasesas: o Employeesbecomemoremature Formalstructureismademoreclearcut Onegoesdownthelineofcommand

Createsinanindividualfeelingsoffailureandfrustration,shorttermperspective andconflict

Itfailstosatisfythehigherorderneedsoftheemployees

Theindividualadaptsbyeitherleavingtheorganisation,climbinguptheorganisational ladder,orbecomingapathetic.Healsoseeksgroupsanctionforthis.Informalgroupsare organisedtoperpetuatetheseadaptations

Pressureorienteddirectiveleadershipcompoundsthesefaultsoftheformalorganisation Strategiesfororganisationaldevelopment o Organisationshouldprovideanenvironmentforthedevelopmentofthepersonal andpsychologicalmaturityoftheindividual o o o Aimatimprovingtheinterpersonalcompetenceoftheemployees Transformthetraditionalpyramidalstructureoftheorganisation Techniquesforprogrammedlearningaimedatindividualchangeshouldbe introduced

Thesestrategiescanbeappliedthroughtheproceduresmentionedbelow MaturityImmaturitytheory.Theprocessofmaturityfromtheimmaturestageconsistsof sevencomponents o o Infantpassivitytoadultactivity Dependencetorelativeindependence

o o o o o

Fromlimitedbehaviourtomuchdifferentbehaviour Fromerratic,shallow,briefintereststomorestable,deeperinterests Shorttermtolongtermperspective Fromasubordinatesocialpositiontoanequalorsuperordinatesocialposition Fromlackofselfawarenesstoselfawarenessandselfcontrol

Iftheorganisationinhibitsanyoftheaboveitcausesfrustrationanddemoralisationofthe employees

Sincetheemployeesoforganisationsareadults,theyshouldbetreatedasmature individualswhoarecapableofacceptingresponsibility,pursuinglongterminterestsand concernedaboutthefulfilmentofhigherorderneeds

Theaccentinorganisationalchangestrategiesshouldbeuponmeetingtheneedsofmature individualsandprovidingopportunitiestoarouseandutilisetheirfullpsychologicalenergy.

Improvinginterpersonalcompetence o Interpersonalcompetencereferstotheabilitytodealeffectivelywithan environmentpopulatedbyotherhumanbeings o Threerequirementsforthedevelopmentofinterpersonalcompetence: Selfacceptance<degreetowhichapersonvalueshimselfpositively> Confirmation<realitytestingofonesownselfimage> Essentiality<opportunitytoutilisethecentralabilitiesandexpresshis centralneeds>

OrganisationalStructuresofthenewsystem o ThePyramidalStructure o Shouldbeusedintheperformanceofroutineoperations

Modifiedformalstructure SimilartoLikertslinkpinconcept.Enablesasubordinatetobeamemberof thesuperiorsdecisionalunit

Poweraccordingtofunctionalcontribution Eachemployeehasequalopportunitytobeprovidedinformation,power andcontrols,dependingonhispotentialcontributiontotheproblem

TheMatrixorganisation Eachindividualhasequalpowerandresponsibility.Hehasunlimited opportunitiestoinfluencethenatureofthecoreactivities. Removessuperiorsubordinaterelationshipandsubstitutesforthem individualselfdiscipline

Projectteamsarecreatedtosolvespecificproblems

Executiveeducationinthematrixorganisationwouldfocusonsystemeffectiveness. Thematrixstructureenablesjobstobeenlarged.Enlargementalsomeansto expandtheuseoftheindividualsintellectualandinterpersonalabilities

Techniquesofprogrammedlearning o o Tgrouporsensitivitytrainingtoimprovethepersonaleffectivenessofemployees Tgrouptechniqueconsistsofalaboratoryprogrammedesignedtoprovide opportunitiesforindividualemployeestoexposetheirbehaviour,giveandreceive feedback,experimentwithnewbehaviouranddevelopawarenessandacceptance ofselfandsensitivitytothepersonalitiesofothers o Suchsessionsenableparticipantstoforgethierarchicalidentitiesanddevelop distributiveleadershipandconsensualdecisionmaking

OrganisationalLearning o o Organisationsalsolearnthroughtheexperienceandactionsofindividuals Organisationallearningoccurswhenmembersactaslearningagentsforthe organisation,respondingtothechangesintheinternalandexternalenvironments o o Singleanddoublelooplearning Singleloop:individualsrespondtoerrorsbymodifyingstrategiesandassumptions withintheorganisationalnorms o Doubleloop:learningresponsetodetectederrortakestheformofjointinquiryinto organisationalnormsperseandresolvestheinconsistencyandmakesnewnorms whichcanberealisedeffectively.

Criticism:3categories o Benignviewofmaninrelationtotheorganisation;conceptofselfactualisation seemsutopian o o Antipathytoauthority Somekeypropositionsofhismethodology Noempiricalsupporttotheassertionthatpeopleareopposedtoauthority Goalofselfactualizationasauniversalgoalhasbeenquestioned

Conclusion o Hisobjectiveistobuildhealthierorganisationsandtoraisethequalityoflifein them o o Someofthepropositionsarenormativeandlackempiricalvalidity Importancecontributionintherealmofinterpersonalcompetence

Rensis Likert
Knownforhisstudiesonorganisationandanalysisofmanagementstyles DevelopedtheLikertsScaleandtheLinkingPinModel Books:NewPatternsofManagement,TheHumanOrganisation,NewWaysofManaging Conflict Triestoanswerthequestionwhydosomemanagersgetbetterresultsthanothersby comparingthesupervisorystyles Classifiessupervisorsintotwocategories:jobcenteredandemployeecentered JobCentered o Theirprimaryconcernistoensureperformanceofassignedtasksandmaintenance ofprescribedstandards EmployeeCentered o Primarilyconcernedwiththehumanaspectsoftheirsubordinatesandeffective teambuildingforhightaskperformance Effectivesupervisionisanadaptiveandrelativeprocess o Itneedsconstantadaptationtothebackgroundvalues,expectationsand interpersonalskillsbetweensubordinates,peersandsuperiors SupportiveRelationships o Basedonhisassessmentofmanagersofhighperformance,heproposedthe principleofsupportiverelationshipsasanorganisingprinciple o Leadershipandotherprocessesshouldbesuchthatanindividualshouldhavea maximumprobabilityinallinteractionsandallrelationshipswiththeorganisation. Eachmemberwillviewtheexperienceassupportiveandonewhichbuildsand maintainshissenseofpersonalworthandimportance o Heconceivesofaninteractioninfluencesystemtomaximiseskills,resourcesand motivationofindividualsatdifferentlevelsoftheorganisation o Theinteractioninfluencesystemwouldfacilitateintegrationoforganisationaland managerialprocessessuchascoordination,communication,decisionmaking, directionetc Anidealinteractioninfluencesystemwouldhavethefollowingcharacteristics o o o o Memberswillfindpersonalvalues,goalsreflectedintheorganisation Everymemberwouldbeidentifiedwiththeobjectivesoftheorganisation Spontaneousandaccurateinformationflows Everymembercanexerthisinfluenceondecisionsandactionsoftheorganisation

LinkingPinModel o Thismodelcanremovethehurdlesfoundintraditionalhierarchiesandfacilitatethe growthofinteractioninfluencesystem o o o o Eachmemberofanorganisationhasatwinroleintwooverlappinggroups Heisamemberofahigherlevelgroupandleaderofalowerlevelgroup Likertreinforcesupwardorientationwithhorizontallinkages Multiplelinkagesprovideadditionalchannelstoshareinformationandinfluence. Theybecomethelinkpinstoholdtheorganisationtogether. o Nooverlappingworkgroupsshouldexistthanareabsolutelynecessarytoperform thelinkingprocess

Managementsystems14 o o o Exploitativeauthoritative,benevolentauthoritative,consultative,andparticipative Theyarenotisolatedcategoriesbutblendintooneanother Twodimensionsofthesesystems Typeofauthorityorcontrol Operatingcharacteristicsoftheorganisationandthemotivationalforces used o Hisfoursystemsdescribetherelationship,involvementandrolesbetween managementandsubordinatesinindustrialsettings

Exploitativeauthoritativesystem1 o Goalsettinganddecisionmakingbythetopmanagementandcommunicationsflow downwards o Nosubordinateparticipationnottrustedabidebydecisionsorganisationfocus oncompletingtheworkuseoffear,threatsnoteamwork

BenevolentauthoritativeSystem2 o Decisionsmadebytopmanagement.Butemployeesaremotivatedthroughrewards ratherthanfearandthreats o flowofinformationfromsubordinatestomanagersbutrestrictedmorerewards thansystem1marginalautonomyofemployees

ConsultativeSystem3 o Involvementindecisionprocessofemployeesconsultedbymanagementeven thoughmanagementtakesmajordecisionsgreaterflowofinformationfromSub toMgmt

Partlytrustsubsusebothrewardsandinvolvementofemployeesfostermore responsibilitymoderateteamwork

ParticipativeSystem4 o Completeconfidenceandtrustintheemployees,opencommunicationflowsand theemployeesparticipationinthedecisionprocess. o Subordinatesfreelyexpresstheirviewsteamworkcollectiveresponsibilityfor organisationalgoalsrewards o Threebasicconcepts:supportiverelationships,groupdecisionmakingandmethods ofsupervision,highperformancegoalsfortheorganisation. o o Consideredtobethemostproductiveandideal Expectedtoresultinbetterproduction,highermotivationandmoreprofitthanthe othersystems

Theoperationalcharacteristicsofonesystemcannotbegraftedabruptlytoanother o Ineachsystemcommunicationandmotivationprocesseswillbetailormadetofit theiruniquedecisionmakingstyle

System1:lowperformanceunits;System4:Highperformanceunits Emphasisestheneedtorecognizethemonetaryvalueofhumanresourcesinorganisations Sciencebasedmanagement o Needtomonitorthestateoftheorganisationanditsinternalmanagementsystem atperiodicintervalsorstagesofgrowth o Useofmathematicsandstatisticscanhelpinthismeasurement

ApplicationsofSystem4 o o Validityofsystem4forrealizinghighperformancegoals Uncoordinatedandpiecemealeffortssuchasteambuilding,jobenrichment, sensitivitytraining,participativedecisionmakingandmanagementbyobjectiveswill notpayhighdividendsunlesstheyareintegratedintoanoverallstrategyof changingthemanagementsystem. o Hementionsfourcharacteristicsthatamanagementsystemshouldpossesstoguide theeffortsforhumanresourcedevelopment.System4,hesays,fulfilsallfour specifications. o Usingsurveyfeedbackmethod,Likertproposesanorganisationalimprovement cyclecomprisingoffivesteps<inbook> o Improvethecausalvariables.Interveningvariablesandendresultswillthen improve

However,heisawareoftheproblemsinvolvedinadaptingSystem4toall organisations.Actualrealisationofsystem4conditionsofmanagementdependson thecomplexinterplayoffactorsandforcesatworkinrealorganisationlife.

Managingconflicts o Conflictastheactivestrivingforonesownpreferredoutcome,whichifattained, precludestheattainmentbyotheroftheirownpreferredoutcome,thereby producinghostility o o o Twokindsofconflicts;substantiveandaffective. Substantive:rootedinthesubstanceofthetask. Affective:derivedfromtheemotional,affectiveaspectsofinterpersonalrelations.

Evaluation o o o Criticisedforlackofcontextualsensitivity Linkingpinmodel:slowsdowntheprocessofdecisionmaking AdvantageofLPM:fosterstheupwardandhorizontallinkageincontrasttotheonly downwardorientationofclassicalstructureandstrengthensthecrossfunctional linkagesincomplexorganisations. o o Buthowdowepushmanagementsystems1and2towards3to4? System4structuresandprocesseshelptoresolveconflictconstructivelyinsteadof suppressingthem o System4holdsoutprospectsofdevelopmentofadvancedformofhuman organisation. o Likertsmostimportantcontributiontomanagementthoughtandpracticeishis systematicanalysisofgoodmanagementpracticesandextendingtheirfrontiersof knowledgeandapplication.

Differencesbetweensystem1and4 System1 SteepHierarchicalStructure CentralisedDecisionmaking Topdowncommunication System4 Overlappingstructures Groupdecisionprocesses Openandauthenticthreewaycommunication (up,downandlateral) Tightsupervision Adaptivesupervision Mantomanratherthangrouptogrouprelations Crossfunctionallinkages Performanceunderpressure Individualsandworkgroupswithahighdegreeof achievementandmotivation Lowdegreeofemployeemotivation

Theories of Motivation Abraham Maslow (Hierarchy of needs)

Psychologist.Triedtounderstandhumanbehaviourthroughpsychoanalysis Fatherofhumanisticpsychology Books:MotivationandPersonality,ATheoryofHumanMotivation,ThePsychologyof Science Humanbehaviourisareflectionoftheirconsciousandunconsciousgoals <Maslowstheoryisnotsynonymouswithbehaviourtheory,themotivationsareonlyone classofdeterminantsofbehaviour.> Hetookhumanneedsasthebasisofhumanbehaviour NeedHierarchy o o o Allhumanactionsareoutcomesofseveralunfulfilledneedsandmotives. Maslowstheoryisbasedontheideaofprepotencyofneeds Developedascaleinwhichatoneendarelowerorderneedslikephysiological needsandattheotherendhigherorderneedslikeselfactualisation.Inbetween therearemiddleorderneeds o Eachlowerorderneedoncesatisfiedgiveswayforanunfulfilledhigherorderneed. Asatisfiedneednolongermotivatesaperson o Fulfilmentoflowerorderneedisapreconditionforahigherorderneedtosurface.

Physiologicalneeds o o Biologicalneedslikehunger,thirst,sexetc Oncephysiologicalneedsaresatisfied,humanslookforsocialneeds

Securityneeds o o o Nextgoal(afterphysiologicalneeds)issafety,security,stability,andprotection. Preferenceforarhythmandroutineindailylife <expressedinpeoplespreferenceforajobwithtenureandprotection,desirefor savingbankaccount,insuranceetc>

BelongingnessandLoveneeds o Cravingforaffectionaterelationshipsandaplaceofbelongingnesswithhis/her people o Thisneedforloveisnotsynonymouswithsexwhichmaybestudiedata physiologicallevel

Esteemneeds

o o o o

Desireforrespectandrecognitionfromsociety,workplace,familyandfriendship. Canbedividedinto:achievementneedsandrecognitionneeds. Achievementneeds:selfconfidence,strengthandindependence Recognitionneeds:respect,recognitioninsociety,attention,desiretobean importantperson

TheabovefourneedsaredeficitneedsorDneeds.Deficiencymotivationoccurswhenwe lacksomethingandattempttomeetthatdeficiency.Healsocallstheseneedsassurvival needs

Selfactualisationneeds o o o Highestneedinthehierarchyofneeds Directedtowardssearchingthemeaningandpurposeoflife. Thedesireforselffulfillment,actualisationandlivingameaningfullifeisreflectedin thisneed. o o Thespecificformofthisneeddiffersfrompersontoperson ThesearealsocalledBneedsorbeingneedsincontrasttotheDneeds.

Somefurthercharacteristicsofbasicneeds o o Hierarchyisnotasrigidasimplied.Thereisscopefordeviations Apersonmaysacrificealowerorderneedforacertainperiodoftimetosatisfyhis higherneedandviceversa. o Emergenceofaparticularneed,aftersatisfactionofalowerorderneedisnot suddenbutagradualphenomenon o o Needareasaremoreoftenunconsciousthanconscious Basicneedsanddesiresarethesameirrespectiveofthesocietiesandculturesthey livein. o Humanbehaviourismultimotivatedneedsassuchcannotexplainallhuman behaviour.

Otherthoughtsinhiswritings o Peakexperiences Excitingmomentsinlifeinvolvingfeelingsofhappiness,wellbeingandan awarenessoftranscendentalknowledgeofhighertruth. o Allhumanbeingsarecapableofpeakexperiences

EupsychianManagement Organisationsshouldbedesignedinsuchawaythatemployeescansatisfy theirsafety,loveandselfactualisationneeds.

Criticism o Criticisedmainlyongroundsofmethodology.Drawinginferencesfromlivesoffew individuals o Sophisticationandvalidityofhisresearchdataandtheorderofhierarchyofneeds arealsoquestioned o o Selfactualisationconceptisvague,impreciseandtoogeneral OverallattemptstoestablishevidenceofMaslowshierarchyhavefailed<studyby WabhaandBirdwell> o o MichaelNash:TheoriesofHerzbergandMaslowareMajorWrongTheories Histheorycannotbeturnedintoapracticalguideformanagerswhoaretryingto makepeopleproductive. o Ignoredenvironmentalfactorslikeschoolingandpersonalsupportthatcanfacilitate orimpedeselfactualisation.

Significance o o o Oneofthepioneersinpersonalitytheory Hashadtremendousimpactonmodernmanagementapproachtomotivation Ledtofurtherresearchintheareaofmotivation

Frederick Herzberg
Renownedpsychologistandpioneerofjobenrichmentconcept Books:TheMotivationtoWork,TheManagerialChoice,WorkandtheNatureofMan StudiesonMotivation o o Allindividualshavetwosetsofneedsviz.Toavoidpainandtogrowpsychologically Themotivationhygienetheorygrewoutofthestudiesheconductedonabout203 accountantsandengineers o Hesoughttoidentify:theeventswhichresultedinmarkedimprovementin individualsjobsatisfaction;andeventsthathaveledtomarkedreductioninjob satisfaction o Studybasedoncriticalincidents MotivationFactors Achievement Recognition Workitself Responsibility Advancement

HygieneFactors Companypolicyandadministration Supervision Salary Interpersonalrelations Workingconditions

Twofactortheory o o o o Satisfiersperformtheroleofmotivatorsinhob Hygienefactors,suchasworkingconditions,companyadministration,salary, supervisoryrelations,andbenefitsandservicesareenvisionedasenvironmental elementsthathavelittleornorelationshipstothemotivationofspecificjobrelated behaviour Themotivationfactorsdeterminehowaworkerfeelsabouthisjob,whereashygiene factorsonlydeterminehowaworkerfeelsabouthiscompanyororganisationingeneral. o Anemployeeiseitherdissatisfiedornotdissatisfied(neutral)withhygienefactors (maintenancefactors),andheiseithersatisfiedornotsatisfied(neutral)with motivationalfactors(growthfactors). o Hygienefactorsmustbeadequate,oremployeeswillnotbeattractedtoan organisation.Butwhenemployed,manipulatinghygienefactorscannotmotivatea workertodoabetterjob. o Dissatisfiersonlyproduceshorttermchangesinhumanattitudesandsatisfiersproduce longtermattitudes. o Themotivationandhygienefactorsareseparateanddistinctandtheyarenotopposite orobverseofeachother. Satisfiers:thefactorsassociatedwiththegrowthandthetaskcontentofthejob

Dissatisfiers:factorsassociatedwithpainavoidanceandcontext/surroundingsofthe job

Threekeyprinciplesofthetheory o Factorsinvolvedinproducingjobsatisfactionareseparateanddistinctfromthefactors thatleadtojobdissatisfaction o Satisfactionanddissatisfactionarediscretefeelings.Theoppositeofsatisfactiononthe jobisnotdissatisfaction;itisnojobsatisfaction o Themotivatorshaveamuchlonglastingeffectonsustainingnosatisfactionthan hygienefactorshaveonpreventingdissatisfaction.

HygieneandMotivationSeekers o o Chartonpage177,P&P Toanorganisation,itiseasytomotivatethroughfearofhygienedeprivationthanto motivateintermsofachievementandactualisingthegoals o Suchapolicywouldbeinjurioustothelongterminterestsoftheorganisation.Henceit isdesirabletofocusemphasisonmotivatingthepeople o Forthis,Herzbergsuggestsjobenrichmentandverticaloverloadingasimportantmeans

Jobenrichment

o o

theartofreshapingjobs Thetermdesignatesatechniqueusedbymanagerstomaximizeinindividualworkers theinternalmotivationtowork,whichisthetruesourceofjobsatisfaction.

Jobshouldhavesufficientchallengetoutilizefullabilityoftheemployee;employees showingincreasinglevelofabilityshouldbegivenincreasinglevelsofresponsibility

Changingjobcontent

Jobloading o Horizontalloading(merejobenlargement)cannotmotivate.Onlyverticalloading(job enrichmentcan.

Herzbergdescribesatenstepprocessforjobenrichment.<pg179P&P) Pg180.Theprocessofjobenrichment Criticisms o Criticisedforadoptinganindustrialengineeringapproach

Classic cal Theory y

Cl lassicalTheo ory

Scientific S Management

Genera al Administra ative Theory y

Howto oimrpoveth he prod ductivityof operativepersonne el?

Concerned dwith o overall organ nisation a howtomake and m it moreeffec ctive

Scientif fic Manag gement M Movement

ApartfromTay ylor,FrankGi ilbreth,Lillian nGilberthand dHeneryGan nttwereotherimportant proponentsof fSM heGilbrethsstudied s workarrangementstoeliminat tewastefulha andandbody ymotions. Th Th heyusedmot tionpicturefilmstostudyhandandbo odymotions.Theycontributedtoan ef fficientwayof o bricklayingforbuildings. Gnattcreatedagraphicbar rchartthatco ouldbeusedbymanagers sasaschedulingdevicefor planningandcontrolling c wo ork.Healsodevised d aninc centivesystem mthatgaveworkers w a onusforcom mpletingtheirjobsinlessti imethantheallowedstandard. bo Im mportanceof fthemoveme ent:productiv vitywasprett tylowatthet timewhenSM Mwas in ntroduced.Ithelpedthein ndustrialunits sinachieving ggreatereffic ciency.Taylorsmethodwa as ad doptedinthe ecurriculumof o HBS.Histe echniquesspr readtoothercountriesaswell.

TheapplicationofSMprinciplescontributedtoraisingthestandardoflivingofentire countries.

Promotion/Performance Appraisal
Seniorityormeritasthebasisforpromotion? Demeritsoftheseniorityprinciple o Theprincipleofseniorityassumesthatallmembersofaparticulargradeareequally fitforpromotion.Suchanassumptionmaydonotmuchharminthelowergradesof theservice;butitcannotbegenerallyacceptedwhendealingwithpromotioninor tothetopgrades. Meritsoftheseniorityprinciple o Itsoperationisverynearlyautomaticanditavoidstheneedformakinginvidious distinctionsbetweenonepersonandanother Inthehighergradesoftheserviceconsiderationsoffitnessmusthaveprecedenceoverthe claimofseniority.