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UNIT 1 INTRODUCTION TO MANAGEMENT CHAPTER 1- MEANING AND NATURE OF MANAGEMENT

Define Management
Management is the process of planning, organizing, leading, and controlling the work of organization members and of using all available organizational resources to reach stated organizational goals. It emphasize that all managers, regardless of their particular aptitudes or skills, engage in certain interrelated activities in order to achieve their desired goals. Acc. to Harold Koontz and Weirich Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals. Acc. to F.W. Taylor Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way. Acc. to Henry Fayol To manage is to forecast and to plan, to organize to command, to coordinate and to control. Acc. to Ralph C. Davis Management is the function of executive leadership anywhere. Acc. to E.F.L Breach Management is concerned with seeing that the job gets done; its tasks all centre on planning and guiding the operations that are going on in the enterprise. Acc to George R. Terry Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources. Acc to American Management Association Management is guiding human and physical resources into dynamic organizational units which attain their objectives to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering service. Acc. to Peter Drucker Management is a multipurpose organ that manage a business and manages Managers and manages Workers and work.

Nature/ Scope/ Characteristics/ Features of Management


It is an essential part of any goal oriented activity. Every organization requires planning of activities, organization of resources, establishment of communication system, leading and motivational of people, and control of operations for the realization of its goals or objectives. (1) Management is goal-oriented: Management is not an end in itself. It is a means to achieve certain goals. Management has no justification to exist without goals. Management goals are called group goals or organizational goals. The basic goal of management is to ensure efficiency and economy in the utilization of human, physical and financial resources. The success of management is measured by the extent to which the established goals one achieved. Thus, management is purposeful. (2) Management is a continuous Process: Management is a dynamic and an on-going process. The cycle of management continues to operate so long as there is organized action for the achievement of group goals. (3) Management is Intangible: Management is an unseen or invisible force. It cannot be seen but its presence can be felt everywhere in the form of results. However, the managers who perform the functions of management are very much tangible and visible. (4) Management as a Coordinative Force : The essence of management lies in the coordination of individual efforts in to a team. Management reconciles the individual goals with organizational goals. As unifying force, management creates a whole that is more than the sum of individual parts. It integrates human and other resources. (5) Management is a part of Group effort : Management is an integral part of any group activity. It is essential to undertake any organized activity. It involves the use ofgroup efforts in the pursuit of well defined goals or objectives. It cannot exist independent of the group or organization it manages. (6) Management Accomplishes Results through the cooperation of others : The managers cannot do everything themselves. They must have the necessary ability and skills to get work accomplished through the efforts of others. They must motivate the subordinates for the accomplishment of their subordinates. (7) Management is Pervasive or Universal : Management is essential element of every organized activity irrespective of the size or type of activity. Wherever two or more persons are engaged in working for a common goal, management is necessary. All types of organizations, e.g., family, club, university, government, army, cricket team or business, require management. Thus, management is a pervasive activity. The

fundamental principles of management are applicable in all areas of organized effort. Managers at all levels perform the same basic functions. (8) Management is a Science as well as an Art : It contains a systematic body of theoretical knowledge and it also involves the practical application of such knowledge. Management is also a discipline involving specialized training and an ethical code arising out of its social obligations. (9) Management is a Dynamic Discipline : Management is a field of study which is taught in universities and management institutes. Infact, management is multidisciplinary in nature. It contains principles drawn from social sciences like anthropology, psychology, sociology, etc. Much of management literature is the result of the association of these disciplines. (10) Management Balances effectiveness and Efficiency : Sound management requires that all organizational activities are performed effectively and efficiently. An organization is said to be effective if it is able to accomplish its objectives. It is the process of getting things done with the aim of achieving organizational objectives effectively and efficiently.

Effectiveness vs. Efficiency


These are interrelated terms. These are two sides of same coin. These two terms needs to be balanced but at times efficiency has to be compromised by the management. (a) Effectiveness - means the degree to which objectives are achieved and the extent to which targeted problems are solved. In contrast to efficiency, effectiveness is determined without reference to costs. Effectiveness is a relatively vague, non-quantitative concept,
mainly concerned with achieving objectives.

(b) Efficiency It describes the extent to which time or effort is well used for the intended task or purpose. It concerns the minimization of cost using less resources and getting maximum output. Efficiency is a measurable concept, quantitatively determined by the ratio of output to input. Efficiency means "doing the things rightly," Effectiveness means "doing the right things."

Productivity : The first test of Managements Competence


A Productivity measurement is the best yardstick for comparing managements of different units within an enterprise and for comparing managements of different enterprises. It includes all the efforts the enterprise contributes, and excludes everything it does not control. Thats why it is called as the first test of managements competence. Productivity is doing the right things in the right way. Once you ensure employees are being effective and efficient, you will see a rise in productivity. You should start measuring this productivity on a daily, weekly and monthly basis. You can use metrics such as number of units produced, sales or customer-satisfaction surveys. With effectiveness and efficiency in place, you will be able to establish some baseline measures of the productivity of your company.

Therefore : Productivity = Efficiency + Effectiveness

Importance of Management (1) Accomplishment of Goals : A human group consists of several persons, each
specializing in doing a part of the total task. Each person may be working efficiently, but the group as a whole cannot realize its objectives unless there is mutual cooperation and coordination among the members of the group. Management creates team - work and coordination in the group. He reconciles the objectives of the group with those of its members so that each one of them is motivated to make his best contribution towards the accomplishment of group goals. Managers provide inspiring leadership to keep the members of the group working hard. (2) Effective utilization of resources: Managers forecast the need for materials, machinery, money and manpower. They ensure that the organization has adequate resources and at the same time does not have idle resources. They create and maintain an environment conducive to highest productivity. Managers make sure that workers know their jobs well and use the most efficient methods of work. They provide training and guidance to employees so that they can make the best use of the available resources. (3) Development of society and nation: Efficient management is equally important at the national level. Management is the most crucial factor in economic and social development. The development of a country largely depends on the quality of the management of its resources. Capital investment and technical know-how cannot lead to economic growth unless wealth producing resources are managed efficiently. By producing wealth management increases the national income and the living standards of

people. That is why management is regarded as a key to the economic growth of a country. (4) Sound organization Management provides sound environment in the organization for the accomplishment of your desired goals. It explain authority-responsibility relationships in the organization. It fills various positions with right qualifications at right time. It also initiates a spirit of cooperation among the workers and provide them with good environment. (5) Providing vision and foresight It predicts the happenings of future which will influence the workings of the organization. It ensures that the enterprise is able to meet the demands of changing environment. (6) Harmony in work Managers bring uniformity and harmony in the action of employees as employees come from different backgrounds, they have different attitudes and styles of performing work. (7) Helping the Employees in achieving Personal Objectives Manager needs to motivate their team in such regard that they should contribute equally towards their personal and organizational objectives. For this manager needs to indulge motivation and leadership practices to develop team spirit, cooperation and commitment to group success.

Disciplines of Management Management is Science or Art (A) Management as a science - Science is a systematized body of knowledge pertaining to
a particular field of enquiry. It contains concepts, hypotheses, theories and principles to explain cause and effect relationship between two or more factors. Any subject which is scientifically developed and consists of universally accepted principles is a science. Management Discipline should have the following characteristics in order to be called as science : Systematic body of knowledge Management has a systematic body of knowledge consisting of general principles and techniques. These help to explain events and serve as guidelines for managers in different types of organisations. Scientific observations and Experiments Scientific principles are derived through scientific investigation and reasoning. It means that there is an objective or unbiased assessment of the problem situation and the action chosen to solve it can be explained logically. Scientific principles do not reflect the opinion of an individual or of a religious

guru. Rather these can be scientifically proved at any time. They are critically tested. For example, the principle that the earth revolves around the sun has been scientifically proved. Management principles are also based on scientific enquiry and investigation. These have been developed through experiments and practical experience of a large no. of managers. For example, it has been observed that wherever one employee has two or more bosses simultaneously, confusion and indiscipline are likely to arise, with regard to following the instructions.
Verifiable Principles Scientific principles are verifiable as they undergo long

experimentation procedures. Such experimental results are verified by repeatition proceedings of experiments. Therefore they produce predictable and ensured results. Universal application Scientific principles represent basic facts about a particular field enquiry. These are objective and represent best thinking on the subject. These principles may be applied in all situations and at all times. Exceptions, if any, can be logically explained. For example, the Law of Gravitation states that if you throw an object in the air it will fall on the ground due to the gravitational force of the earth. This law can be applied in all countries and at all points of time. It is as applicable to a football as it is to an apple falling from tree. Management contains sound fundamental principles which can be universally applied. For instance, the principle of unity of command states that at a time one employee should be answerable to only one boss. This principle can be applied in all types of organisation-business or non business. However, principles of management are not exactly like those of physics or chemistry. They are flexible and need to be modified in different situations.

Though management has all these characteristics, still it is not considered as exact science like biology, physics etc. because :- many of the principles of management are not supported by research. It is difficult to establish cause and effect relationship in management. Application of its principles doesn't depend upon situations and factors. It deals with people but it is difficult to predict their behavior accurately, so it is a social process that is why it is called as social science.

Management as an Art or Practice


Art signifies the application of knowledge and personal skills to bring about desired results. It is based on scientific knowledge and principles. If science is learnt, an art is practiced. Stated differently, science is to seek knowledge and art is to apply knowledge. It has the following features :

Body of knowledge Discipline of art requires a systematized body of knowledge that requires learning of theory and know how. Personalized application of knowledge and skills Art is basically the application of knowledge and skills with the use of know-how. Practice Every art signifies practical knowledge. An artist not only learn the theory but also its application in practice. Art can be developed through continuous practice. Creativity Art is basically creative and an artist aims at producing something that had not existed before. Therefore, every piece of art requires imagination and intelligence to create. Like any other art, management is creative. A manager effectively combines and coordinates the factors of production to create goods and services. Moulding the attitudes and behaviour of people at work, towards the achievement of the desired goals is an art of the highest order.

Management is considered an art because of the following reasons : Management practice involves the use of knowledge of management concepts, principles and practices. Personal judgments are used by managers to deal with various problems and management decision making. The art of management can be learnt and mastered through continuous practice. This process is directed towards the accomplishment of concrete goals. It is situational there by there is no best management role and contribution of managers are considered for various situations. all

Thus, mangement is both a science as well an art. It is a science because it has an organized body of knowledge consisting of certain universal facts. It is known as an art because it involves creating results through practical application of knowledge and skills. However, art and science are complementary to each other. They are not mutually exclusive. Science teaches one to know and art to do. Art without science has no guide and science without art is knowledge wasted. For example, a person cannot be a good surgeon unless he has scientific knowledge of human anatomy and the practical skill of applying that knowledge in conducting an operation. Similarly a successful manger must know the principles of management and also aquire the skill of applying those principles for solving managerial problems in different situations. Knowledge of principles and theory is essential, but practical application is required to make this knowledge fruitful. One cannot become an effective manager simply by learning management principles by heart. Science ( theory ), art ( practice ) are both essential for the success of the management.

Management as a profession
Profession may be defined as an occupation backed by specialized body of knowledge and training and to which entry is regulated by a representative body. The essential requirements of a profession are as follows : Specialized field of knowledge - Every profession has a well defined body of knowledge relevant to the area of specialisation. In order to practice a profession, a person requires specialised knowledge of its principles and techniques. Restricted entry based on education and training There exists institutions and universities to impart education and training for a profession. No one can enter a profession without going through the prescribed course of learning. Representative or professional association - In every profession there is a statutory association or institution which regulates that profession. For example, the Institute of the Chartered Accountants of India establishes and administers standards of competence for the auditors. In management also associations have been established both in India and abroad. Managers have formed associations for the regular exchange of knowledge and experience. In India, there is the All India Management Association. However, this association does not have the statutory power to regulate the activities of managers. No university accepted criteria or standard exists for their evaluation. Membership of this association is not compulsory in order to become a manager. Ethical code of conduct for self-regulation - Members of one profession have to abide by a code of conduct which contains rules and regulations providing the norms of honesty, integrity and professional ethics. For example a chartered accountant is not expected to commercially advertise his firm. The code of conduct is by the representative association to ensure self-discipline among its members. Any member violating the code can be punished and his membership can be cancelled. The All India Management Association has framed code of conduct for managers. The code requires the managers to fulfil their social and moral obligations. Members the organisation. But this code does not have legal sanctions. However, observing business ethics is always helpful in becoming a more effective manager. Service Motive - A profession is a source of livelihood but professionals are primarily motivated by the desire to serve the community. For example, a doctor earns his living from his medical practice. But he does not treat his patients only for the sake of money. He has a concern for the suffering of others and a desire to help the community. Therefore, a profession enjoys high community sanction or respect. Similar is the case with managers. A manager of a factory is responsible not only to its owners, but he is

also expected to produce quality goods at a reasonable cost and to contribute to the wellbeing of the community.

Management can be considered as profession because : It is supported by a well defined body of knowledge that can be taught and learnt. It requires competent application of management principles, techniques and skills.

Management cannot be fully regarded as profession because Entry to management profession is not restricted. No specific qualifications is required. Management doesnt have an all-India representative association like medical council of India There is no ethical code of conduct for the managers.

The above discussion reveals that management fulfils several essentials of profession. But like other professions, management does not restrict the entry into managerial jobs to people

Basis 1) Meaning

Management Means getting things done with and through others by leading and motivating them. It refers to execution of decisions. It is concerned with implementation of policies laid down by administration. It is actively concerned with direction of human efforts at the operative level. It has operational authority to execute administrative decisions. It is relevant at lower level of management.

Administration It is concerned with the formulation of objectives, plans and policies of the organization. It relates to decision making. It is concerned with determination of major objectives and policies. It is concerned with determination of major objectives and policies. It has authority to take strategic and policy decisions. It refers to higher level of management.

2) Nature 3) Stage of performance 4) Leading of Human efforts 5) Type of Authority 6) Level in the organization

Basis
6) Decision making 7) Usage

Management
It decides who will implement the administrative decisions. This term is widely used in business organizations in the private sector.

Administration
It determines what is to be done and when it si to be done. This term is associated with nonbusiness organizations such as government departments, public enterprises, military organizations, socio-cultural organizations, etc. Minister, Secretary, Commissioner, Director, Vice, Chancellor, Registrar, etc. Administrative decisions are influenced by economic environment, social forces, government policies, etc.

8) Designations in organizations

10) Influencing Factors

General Managers, Managing directors, Plant Superintendent, Branch Manager, Controller, etc. Managerial decisions are influenced mainly by organizational mission, objectives, policies values and beliefs of managers.

Functions or Elements of Management Process 1. Planning Planning is the continuous process of making present entrepreneurial decisions systematically andt possible knowledge of their futurity, organising systematically the efforts needed to carryout these decisions and measuring the results of these decisions against the expectations through organized and systematic feedback.

2. Organising The process of organising consists of dividing activities, assigning duties and delegating authority for effective operation and achievement of goals. Bigger the organisation, more complex will be the job of organising people and their work as face to face communication becomes difficult. The organising process in general involves the following steps : 1. 2. 3. 4. 5. Identification of activities keeping in view the objectives to be achieved. Dividing activities into convenient groups. Allocating activities of different departments and assigning duties. Delegation of authority and fixing of responsibility. Coordination of these activities throughout the organization.

3. Staffing Staffing is the function of hiring and retaining a suitable work-force for the enterprise both at managerial as well as non-managerial levels. It involves the process of recruiting, training, developing, compensating, and evaluating employees, and maintaining this work-force with proper incentives and motivations.

4. Directing Directing process in business was identified by henry Fayol, with command. It includes motivating employees, directing the activities of others, selecting the most effective communication channel, and resolving conflicts.

5. Controlling The function of control consists of those activities that are undertaken to ensure that the events do deviate from the pre-arranged plans. The activities consist of establishing standards for work-performance and comparing it to these set standards and taking corrective actions as and when needed, to correct any deviations. Other functions are : 1. Coordinating Management thinkers of today, however, feel that coordination is all-pervasive and permeates every function of the management process. Thus planning, organising, staffing, direction and controlling, all help managers to achieve proper coordination. It is also secured through proper direction of the human efforts by the exercise of effective leardership, guidance, motivation, supervision communication, etc. The control process also requires coordination. 2. Motivation It is an act of providing personnels an inspiration to get to their jobs with zeal and entusiasm and perform efficiently the work assigned to them. Management has a responsibility to utilise the capacity of its task force to the maximum. This could only be possible with the help of motivated personnel, who, if satisfactorily and effectively motivated, would pull their respective weight in the right direction and give their loyalty to the enterprise wholeheartedly. They would then carry out the activities allocated to them with purposeful sincerity.

Chapter 2 Evolution of Management


The history of modern management can be traced to the industrial revolution in England and other European countries during the 18th and 19th centuries. The inventions during the industrial revolution, rise of factory system, growth of trade unionism, expansion of industrial trade, rise of consumerism etc. have led to the development of different schools of management thought. The divergent directions of management thoughts have caused, Harold Koontz to call the resulting array management theory jungle Schools of Management The various schools of Management can be put into three broad categorised. These are : (a) The Classical or Traditional approach (b) The behavioural or Neo-classical approach (c) The Modern approach (A) The Classical approach It is based upon the ideas similarly generated in the late 1800s and early 1900s and is primarily based upon the economics rationality of all employees. This evolved around the classical assumption of Adam Smith, that people are motivated by economic incentives and that they will rationally consider opportunities that provide for them the greatest economic gain. Its view is that : 1. People are motivated by economic gains. 2. Because organizations control economy incentives, an individual is primarily a passive resource to be manipulated, controlled, and motivated by the organization. 3. Irrational emotions must be kept from interfering with economic rationality. 4. Organizations can be designed in ways to control irrational emotions and thus unpredictable, dysfunctional behaviours of employees. Types of Classical Theories (I) Scientific Management

Frederick Winslow Taylor (1856-1915) is considered to be the father of scientific management. He exerted a great influence on the development of management thought his experiments and writings.Taylor analysed and timed steel workers movements on a series of jobs. These studies called time and motion studies marked the true beginning of scientific management. He established how much workers should be able to do with the equipment and materials at hand. He further stressed that it was entirely the managements prepogative to plan the ways and

means of doing a task in a systematic way and the role of workers was limited only to do jobs as determined by management. He also recognised the need of economic incentives and rewards to increase productivity.He introduced the system differential wage payment which tied a workers earnings to scientifically set performance standards for his job. If the worker met the standard, he earned his base rate but if he surpassed the standard, his pay would go up. Basic Principles of Scientific Management (1) Science, not rule of thumb For solving problems and making decisions, the manager should adopt scientific attitude and use scientific thinking and methods. The rule of thumb or hit or miss approach should be replaced and problems studied in all respects, required data should be collected and analysed for finding a solution. Intuitive decisions should be substituted by decisions based on facts. (2) Harmony not discord All the departments and workers are a part of an organization. There should be complete harmony or coordination in their functioning and any kind of disagreement, clash or conflict should not be allowed to crop in and, if it arises, should be reduced to a minimum. (3) Cooperation, not individualism Instead of fostering individualsim, importance of cooperative group efforts should be recognised because if the objectives of the organization are to be accomplished, it would be possible not only on account of dynamic and effective leadership of the individual manager but the whole hearted cooperation and commitment of all employees. Credit should be given to all employees. (4) Maximum, not restricted output Production should be carried out up to the maximum capacity available in a unit. As production increases, economies of scale set in and the cost per unit of output will decrease. The policy of restricted output should be treated as an outdated one. (5) Development of each employee to his greatest efficiency and prosperity For the prosperity of individual workers as well as the organization, the efficiency level of workers should be increased by providing scientific training and developing their potential abilities to the maximum. Criticisms of the approach of Scientific Management This approach is mainly criticized on the following counts : (a) Taylor and the early scientific management proponents have been criticised for their unrealistic assumption believing that workers being economic man are having only economic needs and therefore are interested only in more money. Infact economic needs of workers may be more pressing and influencing their working behavior but the possibility of their other needs such as social and psychological , etc. affecting their behavior cannot be ruled out completely.

(b) Other critics fear that scientific management techniques have dehumanized the workers by considering them only as factor of production which are lifeless and unconscious. The workers are basically human beings and their behavior is influenced by their needs, beliefs, values and perception therefore they cannot be treated at par with other factors of production. (c) The approach of scientific management is also criticized on the ground that it advocates close supervision and control as to get maximum contribution and higher level of productivity on the part of workers. But this practice has limited use and to get whole hearted cooperation from workers self-regulating control and supportive supervision have proved more effective.

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Administrative Management / Classical Organization Theory

While Taylor is considered the Father of scientific management, Henry Fayol (1841-1925) is considered the father of administrative management theory with focus on the development of broad administrative principles applicable to general and higher managerial levels. Fayol provided a broad analytical framework of the process of administration. His perspective, unlike that of Taylor extended beyond the shop level and the physical production processes and was of a macro nature, covering the general administrative and managerial functions and processes at the organizational level. Fayols principles of Management 1. Division of Work To divide work among various departments and employees according to required abilities and skills as to get benefit of specialization. 2. Authority and Responsibility Authority should commensurate with responsibility. More authority may be result in misutilization or under utilization of it. 3. Discipline It implies compliance with organizational directives and rules, orders and instructions of superior and to co-operation with fellow workers. 4. Unity of command According to this principle one subordinate should get orders and instructions regarding his work only from one superior. It helps in maintaining discipline among employees, controlling their activities, fixing responsibility and not allowing them to side track responsibility. 5. Unity of Direction All activities related towards common goals should be included in single plan to be implemented by particular manager. 6. Subordination of individuals interest to interest of organization Acc. to this in every work setting each employee should sacrifice and subordinate his personal interest and goal for accomplishing common goals of organization. 7. Remuneration Employees should be paid fairly and reasonably in accordance with their contribution.

8. Centralisation The relationship between centralisation and decentralisation of authority is a matter of proportion and optimum balance which should be maintained according to the needs of organization. 9. Scalar chain As a result of delegation of authority in organization line of authority from top to the lowest level is established. It is known as scalar chain because all employees are attached to it in the relationship of superior and subordinate. 10. Order In order to facilitate smooth flow of work and efficient use of resource material, machine tools equipment, etc. as well as employees (human factor) should be in their prescribed proper place and order. 11. Equity The principle of equity suggests that similar treatment based on the principles of equity fairness and impartiality should be assuredc to all employees working in organization. 12. Stability of tenure of personnel Since, people need time to learn their jobs, therefore they should not be allowed to move frequently from one position to another. 13. Initiative Acc. to this principle, employees should be provided an opportunity as to develop and use initiative for solving work related problems. Due care should be taken specially for developing policies so as to regulate decision making behaviour of managers on the one hand and on the other to provide them enough liberty for using their personal skills and judgement. 14. Espirit de crops It implies to build team spirit among the employees so that they work in harmonious manner with proper mutual understanding as to make their respective contribution for achieving goals.

(B) The Behavioural or Neo Classical Approach This approach was developed as a reaction to the classical approach which attracted so many behaviourist to make further researches into the human behaviour at work. This movement has started by Mayo and his associates at Hawthrone Plant of the eastrn Electric Company, Chicago in the late twenties, gained momentum and continued to dominate till the sixties. An impressive account of thinking of human relations has been given by Douglas M. Mc Gregor in his book entitled The Human Side of Enterprise. This theory is based on the two main points : (1) Organisational situation should be viewed in social as well as in economic and technical terms, and (2) The social process of group behaviour can be understood in terms of clinical method analogous to the doctors diagnosis of human organism.

Its main prepositions are : (1) The organization in general is a social system composed of numerous interacting parts. (2) The social environment on the job affects the workers and is also affected by them. Management is not the only variable. (3) The informal organization also exists within the framework of Formal organisational and it affects and is affected by the formal organization. (4) There is always a conflict between organization and individual goals that always increases the importance of integration between these two. (5) People are interdependent and their behaviour can be predicted in terms of social factors. (6) Money is one of the motivators but not the sole motivator of the human behaviour. Man is diversely motivated and socio-psychological factors are more important. (7) Mans approach is not always rational. He behaves irrationally as far as rewards from the job are concerned. (8) Both-way communication is necessary because it carries necessary information downward for the proper functioning of the organization and transmits the feelings and sentiments of people who work in the organization upwards. Phases of Neo Classical Approach (I) Human Relations School By stressing social needs, the human relations movement improved on the classical approach which treated productivity merely as an engineering program. This movement revealed the following fact: A business organization is not merely a techno-economic system but is also a social system. The latter defines individual roles and establishes norms which may be at variance with those of the formal organization. An individual employees is motivated not merely by economic incentives but also by non-economic, psychological and social interets, needs and aspirations. The informal group and not the individual is the dominant unit of analysis in organizations. Employee centered, humanistic, democratic and participative style of supervisor leardership is more effective than task-centred leadership. Also employees are capable of self-direction and control. Employee satisfaction and happiness brought about by a warm and friendly atmosphere and by meeting their social and psychological needs will lead to higher productivity and performance. Management requires both social skills as well as technical skills. Social skills should be used to inject a feeling among employees that they are a part of the organization.

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(2) (3) (4)

(5)

(6)

(7)

(8)

People need to be liked and respected, they seek affiliation with groups. This can be done by enthusing people to participate and communicate freely in the concerned areas of decision-making. The basic mission of management is to secure the willing and cooperative effort of its employees by providing them need fulfilment and satisfaction.

(II)

Behavioural Science Approach In view of certain inadequacies and drawbacks associated with human relation approach, concerted efforts were made by many other social and behavioural scientists for undertaking and analysing human behaviour methodically. The term behavioural science approach may be defined as systematic as well as scientific analysis of human behaviour with a view to determine causes of working behaviour of an individual.