change in the lighting and the researchers were requested to work under

constant lighting system upto

the end of the experiment. It was observed that the output of both groups
increased steadily. The
production decreased in two groups whenever the lighting falls below the
normal level. This experiment
23
revealed that there is no relationship between lighting and productivity. It
means that the improved
working conditions do not result in the increased productivity. As per this
experiment, it is known that
informal social relations among the group members are the reason for
increased productivity.
2. Relay assembly test room experiments
Relay assembly test room experiments were conducted to determine the
effect of changes in
working conditions, length of working days, rest pauses, frequency of rest
and duration and physical
conditions on productivity. A group of six women workers, who were friendly
to each other selected for
this experiment. These women workers were told about the experiment and
were made to work in a very
informal atmosphere with a supervisor researcher in a separate room. The
supervisor researcher
acted as their friend, philosopher and guide. During the study several
variations were made in the
working conditions to find which combinations was most ideal for production.
Surprisingly, the
researchers found that the production of the group had no relation with
working conditions. It went on
increasing and stabilized at a high level even when all the improvements
were taken away and the poor
pre test conditions were reintroduced. How this phenomenon came about
nobody knew. The workers
were also not able to explain this phenomenon. They were neither closely
supervised, nor motivated by
extra reward. Obviously, something else was happening in the test room,
which was responsible for this.
Researchers then attributed this phenomenon to the following factors:
Feeling of importance among the women as a result of their
participation in
the research and the attention they got.
Warm informality in the small group and tension free
interpersonal and
social relations as a result of the relative freedom from strict
supervision and rules.

 High group cohesion among the women.

Elton mayo concluded that the work satisfaction depends to a large
extent on the informal
social pattern of the work group.
3. Mass Interviewing Programme
The knowledge about the informal group processes, which was accidentally
acquired in the
second phase made researchers design the third phase. This interview
programme was conducted to
determine employees attitudes towards company, supervision, insurance
plans, promotion and wages.
For this purpose they interviewed more than 20,000 workers. At first, direct
questions were asked
relating to the type of supervision, working conditions living conditions and
so on. But since the replies
were guarded, the technique was changed to non directive type of
interviewing, in which workers were
free to talk about their favourite topics related to their work environment.
This study revealed that the
24
workers social relations inside the organization had an unmistakable
influence on their attitudes and
behaviours. The study brought to light the all pervasive nature of informal
groups which had their own
culture and production norms which their members were forced to obey.
Mayo concluded that the workers were activated by logic of sentiment but
the management is
concerned with logic of cost and efficiency. Thus, a conflict between the
workers and the management
becomes inevitable.
4. Bank wiring Observation room Experiment
This experiment was conducted between 1931 and 1932. A group has been
formed to conduct
this experiment. This group consisted of fourteen male workers. Out of these
fourteen workers, nine
were wiremen, three were soldier men and two were inspectors.
The main aim of this experiment was to analyze how a group could influence
a worker to restrict
his output even in the face of attractive incentive schemes for larger output.
Hourly rate of wages was
fixed on the basis of average output of each worker and a group bonus
scheme was announced. Group
bonus was to be determined on the basis of average group output. It was
assumed that workers would
produce more and more in order to get maximum group bonus. Besides, the
workers could help each

other to produce more. The company had not improved the working
conditions for this experiment and
the company was not ready to analyse cause effect relationships. But, a
general observation was made
to know about an individual behaviour and the impact of group behaviour on
the individual behaviour.
Under this experiment, workers have decided their target by themselves. The
company target
was more than the target fixed by the workers. However, the workers have
failed to achieve the target
due to the following reasons.
Unemployment problem
Unduly high standard
Protection of slow workers
Satisfaction of management
This experiments helped to arrive at the following conclusion:
An informal relationship is responsible for deciding the human behaviour.
The counseling was helpful in resolving management employee
conflicts.
The existence of informal organization is quite common in all
organization.
The group had fixed standard output of their own only because of social
pressure.
1.10. 3. Modern approach to management
25
Modern approach represents latest developments, which took place after
1950. This
approach can be studied in the following four phases namely,
Quantitative approach, System
approach, Contingent approach and Attributes of excellence.
1.10.3.1. Quantitative Approach
This approach also known as management science approach, has been
developed during 1950.
It is based on the approach of scientific management. It offers systematic
and scientific analysis and
solution to the problems faced by managers. The quantitative approach aims
at achieving high degree of
precision, perfection and objectivity by encouraging the use of mathematical
and statistical tools for
solving complex problems. These quantitative decision making tools are
known as Operations
Research like LPP, Simulation, queuing theory and game theory etc It also
implies use of computeraided
technology in various fields like production, finance, costing, transporting
and storage etc In

simple terms, operations research may be regarded as application of

scientific methods for solving
problems and scientific methods for solving problems and scientific methods
consist of the following
stages.
Dividing problems into small and simple components
Gathering required information on each component
Analysis of data so collected
Finding out solution to problem in hand.
The quantitative approach which involves use of knowledge and skills of
several other disciplines such
as statistics, engineering and accounting etc has contributed significantly
to management theory and
behaviour. This approach has very limited application that too only in respect
of problem solving and
decision-making.
1.10.3.2. Systems Approach
Systems approach of management represents new thinking and latest
developments related to
organization and management. It was developed after 1950 emphasing
interdependence and
interrelationship among various activities of organization. Basically this
approach aims at identifying the
nature of relationship among various components of the organization, which
is considered as larger
system. The term system may be defined as a set of interrelated and
interacting components assembled
in a particular sequence as to produce some results. These components may
also viewed as sub-systems
of larger system. It is only through this subsystems the larger system
operates, thus larger system can
be viewed as a whole entity or totality. The various sub-systems which are
involved in the functioning of
26
larger one are closely related to each other and to a system as a whole.
Similarly, these sub-systems
interact with each other by getting influenced and influencing others. Every
system has sub-system and
every sub-system may be considered as a system because, it may have a
sub-systems.
The system approach defines an organization as a complex whole consisting
of mutually interdependent
and interacting parts, which are viewed as sub-system. Therefore the
approach is said to be holistic in
nature assuming that whole is greater than the sum of its parts.

The system may be broadly classified into four categories. They are as
follows
Physical system
Mechanical system
Biological system
Social systems.
Physical systems are the part and parcel of the nature or sub-system, of it
totally governed and
regulated by the nature. For example, solar system, seasons and rivers, etc
Mechanical systems refer to those devices, which are based on technology.
These systems have
been innovated by human beings for their betterment but are totally closed
systems in nature, as they do
not interact with external environment such as machines, motorcars,
electronic appliances and consumer
durables etc
Biological systems are those systems, which regulate and control existence
and survival of all
living species, human and plants are good examples of biological systems.
Social systems may be defined as systems, which have been developed by
human being to
facilitate co-operative working to overcome the problem of isolation and
desolation. All kinds of small
and big formal and informal and economic and non economic organizations
are examples of social
systems.
1.10.3.3. Contingency Approach
Contingency approach, though related to system approach, represents
comparatively new line of
thinking among management scientists. This approach basically aims at
attempting to take a step away
from universal application of managerial principles a recommending that the
application of these
principles is subject to appropriateness of the situation. It is a systematic
attempt to determine package
of management technique, approaches and practices which are appropriate
in specific situation.
The contingency approach offers following guidelines for the managers.
27
Contingency approach is situation oriented urging upon the managers to
study, analyse
and diagnose the situation. It is to be done in terms of components variables
of the situation and
external factors affecting the situation.
Subsequently, after the analysis of the situation, the managers are
expected to prepare

inventories of management theory, principle, techniques and concepts.

In order to tackle the situation efficiently the validity and applicability of
management
tools and techniques is to be examined and finally package of these tools
and techniques is
prepared which is appropriate for that specific situation. The different
situation requires different
managerial response.
1.10.3.4. Attributes of Excellence
This approach has been developed by Thomas J.Peter and Robert
H.Waterman, management
consultants of USA in 1982. They published a book popularly known as In
Search of Excellence
which was considered as remedy for solving productivity-related problems
faced by American
companies. In view of its wide acceptance this approach deserves mention in
the historical development
of management thoughts. After having surveyed and interviewed thirty six
excellent companies out of
sixty two best managed companies USA in terms of innovation and
profitability they isolated eight
attributes of excellence described below.
S.No. Attribute of
excellence
Key indicators
1 A base for action Small scale, easily managed experiments to build
knowledge,
interest, and commitment. Management stay visible and
personally involved in all areas through active informal
communication and spontaneous management by wondering
around (MBWA).
2 Close to the customer Customer satisfaction is practically an obsession.
Input from
customers is sought throughout the design, production
marketing cycles.
3 Autonomy and
entrepreneurship
Risk taking is encouraged; failure is tolerated in projects to see
them through competition. Flexible structure permits the
formation of Skunk works (small team of zealous innovators
working on special projects) Lot of creative swings are
encouraged to ensure some home runs (Successful products)
4 Productivity through Individuals are treated with respect and dignity.
Enthusiasm,
28
people trust and family feeling are fostered. People are encouraged to

have fun while getting something meaningful accomplished.

Work units are kept small and humane.
5 Hands-on value driven A clear, companys philosophy is disseminated and
followed.
Personal values are discussed openly not buried. The
organizations belief system is reinforced through frequently
shares stories, myths, and legends. Leaders are positive rolemodel
not do as I say not-as-I-do, authority figure.
6 Stick to the knitting Management sticks to the business it knows best
emphasis is on
internal growth not merger.
7 Simple form lean staff Authority is decentralized as much as possible.
Headquarters
staffs are kept small; talent is pushed out of field.
8 Simultaneous loosetight
properties
Tight overall strategic and financial control is counter-balanced
by decentralized authority, autonomy and opportunities for
creativity.
(Source: Peter and Watermains eight attributes of excellence from In Search of Excellence.)

1.11. Difference between Management and Administration

Sl.No Point of Distinction Administration Management
1
Definition
Administration means overall
determination of policies, settings
of major objectives, the laying out
of broad programmes, major
projects and so forth.
(ie., Administration means
determination of goals,
formulation of plans and policies
of the organization.)
Management means
essentially an executive
function, the active direction
of human efforts getting
things done.
(i.e., Management is
considered as an operative
function of carrying out
plans and policies for
achieving objectives.)
2
Nature Deterministic or thinking function Executive or doing
function

3 Scope
It is concerned with the
determination of major objectives
and policies
It is concerned with the
implementation of policies
29
4 Level It is a mainly a top-level function It is largely a middle and
lower- level function
5
Influence Administrative decisions are
influenced mainly by public
opinion and other outside forces.
Managerial decisions are
influenced mainly by
objectives and policies of
the organization
6 Direction of human
efforts
It is not directly concerned with
the direction of human efforts
It is actively concerned
with the direction of human
efforts in the execution of
plans
7 Main function Planning and control are the main
functions involved in it
Directing and organizing
are the main functions
involved in it.
8 Skills required Conceptual & human skills Technical and human skills
9 Usage Used largely in government and
public sector
Used mainly in business
organizations
10 Examples
Minister, Commander,
Commissioner, Registrar, viceChancellor, Governor etc
Managing Director,
General Manager, Sales
Manager, Branch Manager
etc
1.12. Management as a Science or an art
1.12.1. Management as a Science

Science is not only using the test tube or the lab coat, but also they are
implicit in the method of
inquiry used by a discipline for gathering data. We can call it as a discipline,
as it is a scientific on the
following grounds:
1. Methods of inquiry are systematic and empirical;
2. Information can be gathered, recorded and analysed; and
3. Results are cumulative and communicable.
Systematic means the recorded and analyzed data or being ordered and
unbiased. All scientific
information collected as raw data and finally ordered and analysed with the
help of statistical tools. It
thus becomes communicable and intellectual. Communication of results also
permits repetition of the