Unit III mechanic
Unit III mechanic
Unit III mechanic
Course Instructor:
Ms. Sonal Mehrotra
Humanities Department, SoHSS,
HBTU, Kanpur.
Unit III: Fundamentals of Management B.Tech 2nd: 2023-24
Initially management theories were developed out of the practical experience of the
managers in the industrial organization. Later on, managers borrowed ideas from several
other fields of study like science, sociology, anthropology, etc.
This approach is viewed as the oldest thought of management, and signifies the beginning
of systematic study of management. It is often called traditional theory. It was linked with
the processes to manage work plus organizations more efficiently. The classical approach
can be classed into three groups, such as scientific management, bureaucratic
management, and administrative management. Several theorists such as F. W. Taylor, Max
Webber, Henri Fayol contributed to this approach.
Course Instructor: Ms. Sonal Mehrotra 2
Unit III: Fundamentals of Management B.Tech 2nd: 2023-24
Salient Features of Classical Theory:
1. It was closely associated with the industrial revolution and the rise of large-scale
enterprise.
2. Classical theorists concentrated on formal organization structure for the
achievement of organization goals and also developed certain principles of
management.
3. Management thought focus on job content, structure, division of labour,
standardization, specialization and scientific approach towards managing the
organization.
4. The efficiency of organization can be increased by making individuals efficient.
5. It treated organizations like closed systems and ignored effect of external
environment.
6. The people at work can be motivated by economic/ financial awards.
7. It is based on centralization of authority-entire decision making and control lies
with one person at the top.
8. There is no conflict between individuals and the organizations. In case of conflict,
the interests of organization should prevail.
2. Neoclassical Theory
The Neoclassical approach was developed many years ago because it was believed that the
classical theory did not achieve complete production efficiency and workplace harmony.
Managers still observe the frustrations and difficulties because people always do not prefer
to follow estimated or rational patterns of behaviour.
Neoclassical theorists like Elton Mayo recognized the importance of individual or group
behaviour and emphasized human relations. In this theory, the organization is the social
system, and its performance is affected by human efforts. This approach is often referred to
as human relations or behavioural theory of organization.
Salient Features of Neo-Classical Theory
1. Business Organizations are identified as a social system.
2. Human factors are regarded as the most important elements in the organization.
3. This approach stressed on the informal organization structure.
4. Many socio-psychological factors work together to motivate people at work.
5. The management aims to develop social and leadership skills along with technical
skills. It must be done for the welfare of the workers and the organization.
6. Morale and productivity work together in an organization. (More is employee
morale, more is his productivity.)
7. Organizational goals can conflict with the individual’s goals. Hence, these goals need
to be reconciled.
8. Teamwork is essential for the growth of an organization. However, it needs to be
developed.
Course Instructor: Ms. Sonal Mehrotra 3
Unit III: Fundamentals of Management B.Tech 2nd: 2023-24
Modern management theory recognizes that today's organizations face rapid change,
numerous complexities and unpredictable fluctuations. With the help of technology and
mathematical techniques, managers can understand potential causes and find solutions for
these factors. This improves decision-making and successfully lead people in the
organization. Management theories provide management strategies, frameworks, and
guidelines that employers can implement in the office.
Management theories explain what motivates employees and how leaders can use these
motivators to control and guide them. The modern management theory believes that
employees work for numerous reasons - to achieve satisfaction, happiness and desired
lifestyles. With this theory, managers understand employees' behaviours and needs and
can implement strategies to meet those needs and support their skill development over
time.
Salient Features of Modern Management Theory
1) Management is responsive to environmental changes. Successful organizations adopt
environmental changes in the principles and practices of management.
2) Business organizations are dynamic institutions composed of inter-related divisions and
sub divisions.
3) Business firms have multiple objectives. Managers balance economic (profits) and non-
economic objectives (social objectives like productivity, satisfaction etc.) and maximize the
interests of diverse groups of stakeholders (shareholders, employees, customers,
community and society).
4) Management is multi-disciplinary in nature. It draws knowledge from various disciplines
like psychology, social psychology sociology, ecology, economics, mathematics, operations
research, systems analysis, etc. and synthesises it for solving managerial problems.
5) Management is future oriented. It forecasts environment through scientific technique of
forecasting and discounts it to make decisions in the present.
Scientific Management
Fredrick Winslow Taylor (1856-1915) commonly known as ‟Father of Scientific
Management‟, widely known as F. W. Taylor, was an American mechanical engineer who
sought to improve industrial efficiency.
History
The Midvale Steel Company, "one of America's great armor plate making plants," was the
birthplace of scientific management. In 1877, Frederick W. Taylor started as a clerk in
Midvale Steel Company, but advanced to foreman in 1880. As foreman, Taylor was
occupied with thoughts as to why his team fail to produce more than one-third of a good
day's work. Taylor observed several production problems and in 1882 that he conducted
various experiments which forms the basis of scientific management and applied these
principles to study & identify management problems.
This rule focuses on increasing the efficiency of an organisation through scientific analysis
of work and not with the ‘Rule of Thumb’ method. Taylor believed that even a small
activity like loading paper sheets into boxcars can be planned scientifically. This will save
time and also human energy. This decision should be based on scientific analysis by using
enquiry, investigation, data collection, analysis and framing of rules rather than ‘Rule of
Thumb’ where the decision is taken according to the manager’s personal judgement.
The effectiveness of a company relies on the abilities and skills of its employees. Employees
should be trained to reach their most excellent efficiency in order to boost productivity.
Thus, implementing training, learning best practices and technology, is the scientific
approach to brush up the employee skill. To assure that the training is given to the right
employee, the candidates should be recruited and selected based on scientific selection.
Taylor indicated and believed that the relationship between the workers and management
should be cordial and completely harmonious. Difference between the two will never be
beneficial to either side. Management and workers should acknowledge and understand
each other’s importance.
5. Mental Revolution
Mental Revolution demands a complete change in the outlook of both the workers and
management; both should have a sense of togetherness and cooperation. The aim of both
should be to improve and boost the profits of the organisation.
Management should create suitable working condition and solve all problems
scientifically. Handsome remuneration should be provided to workers to boost up their
moral. Similarly workers should work with utmost attention, devotion and carefulness.
They should not waste the resources of enterprise.
The aim of scientific management is to see maximum prosperity for employer and
employees. Maximum output & optimum utilization of resources will bring higher profits
for the employer & better wages for the workers.
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