BASICS: ** Henry Fayol considers management to consist of six functions: forecasting, planning, organizing, commanding, coordinating and controlling.

He was one of the most influential contributors to modern concepts of management. ** Mary Parker Follett (18681933), defined management as "the art of getting things done through people". She described management as philosophy **In 20th century ,basically many mangmnt writers eveolved lyk...taylor,adam smith,etc....and they gave their books also.. 20th century ..... 1)Henry R. Towne's Science of management in the 1890s, Frederick Winslow Taylor's The Principles of Scientific Management 2)The Harvard Business School offered the first Master of Business Administration degree (MBA) in 1921. People like Henri Fayol (18411925) and Alexander Church described the various branches of management and their inter-relationships. In the early 20th century, people like Ordway Tead (18911973), Walter Scott and J. Mooney applied the principles of psychology to management, while other writers, such as Elton Mayo (18801949), Mary Parker Follett (18681933), Chester Barnard (18861961), Max Weber (18641920), Rensis Likert (19031981), and Chris Argyris (1923 - ) approached the phenomenon of management from a sociological perspective. Peter Drucker (19092005) wrote one of the earliest books on applied management: Concept of the Corporation (published in 1946). H. Dodge, Ronald Fisher (18901962), and Thornton C. Fry introduced statistical techniques into management-studies. In the 1940s, Patrick Blackett combined these statistical theories with microeconomic theory and gave birth to the science of operations research. Operations research, sometimes known as "management science" (but distinct from Taylor's scientific management), attempts to take a scientific approach to solving management problems, particularly in the areas of logistics and operations. Some of the more recent developments include the Theory of Constraints, management by objectives, reengineering, Six Sigma and various information-technology-driven theories Towards the end of the 20th century, business management came to consist of six separate branches, namely: Human resource management Operations management or production management Strategic management Marketing management Financial management Information technology management responsible for management information systems Basic functions of Management:

Planning Organizing Staffing. Leading/directing Controlling/monitoring. Motivation Basic roles of Management:

Interpersonal: roles that involve coordination and interaction with employees. Informational: roles that involve handling, sharing, and analyzing information. Decisional: roles that require decision-making. Management skills

Political: used to build a power base and establish connections. Conceptual: used to analyze complex situations. Interpersonal: used to communicate, motivate, mentor and delegate. Diagnostic: the ability to visualise most appropriate response to a situation .

**Levels of management 1)top level ---jaise CEO,etc 2)middle level ---jaise aaka managers 3)low level-----jaise team leads Spiritual capital Theory is a new emerging approach to business purpose, and becomes more and more influenctial due to the recent financial crisis. Contract theory Advocates of business contract theory believe that a business is a community of participants organized around a common purpose. These participants have legitimate interests in how the business is conducted and, therefore, they have legitimate rights over its affairs. Most contract theorists see the enterprise being run by employees and managers as a kind of representative democracy. Stakeholder theory Stakeholder theorists believe that people who have legitimate interests in a business also ought to have voice in how. The obvious non-owner, stakeholders are the employees. However, stakeholder theorists take contract theory a step further, maintaining that people outside of the business enterprise ought to have a say in how the business operates. Thus, for example, consumers, even community members who could be affected by what the business does, for example, by the pollutants of a factory, ought to have some control over the business. SCIENTIFIC MANAGEMENT

F.W. Taylor - Principles of Scientific Management Use of scientific methods to define the one best way for a job to be done Perspective of improving the productivity and efficiency of manual workers Applied the scientific method to shop floor jobs Frank and Lillian Gilbreth Use of motion pictures to study hand-and-body movements Therbligs - classification system for 17 basic hand motions TAYLORS FOUR PRINCIPLES OF MANAGEMENT

Develop a science for each element of an individuals work, which will replace the old rule-of-thumb method. Scientifically select and train, teach, and develop the worker. (Previously, workers chose their own work and trained themselves as best they could.) Heartily cooperate with the worker so as to ensure that all work is done in accordance with the principles of the science that has been developed. Divide all work and responsibility equally between management and workers. General Principles of Management by Henry Fayol Division of Labor by Adam Smith (FATHER OF ECONOMICS) Scientific Management by Frederick Winslow Taylor Bureaucracy by Max Weber Motivation Theories by Maslow, Alderfer, Herzberg, McCelland, Vroom, Adams and Locke HENRY FAYOL'S :

Concerned with making the overall organization more effective Developed theories of what constituted good management practice .proposed a universal set of management functions.published principles of management .fundamental, teachable rules of management

14 principles as the general principles management: 1. Division of work: 2. Authority and Responsibility:

3. Discipline: 4. Unity of command: 5. Unity of direction: One head and one plan for a group of activities having the same objective. (Note: Organizations write and announce vision and mission statements, objectives and strategies so that the organizations align and go in the same direction). 6. Subordination of individual interest to the general interest: This principle calls to mind the fact that in a business the interest of one employee or group of employees should not prevail over that of the concern, that the interest of the home should come before that of its members and that interest of the state should have pride of place over that of one citizen or group of citizens. (Note: What about the invisible hand concept of Adam Smith?) 7. Remuneration (payment/compensation) of personnel: . 8. Centralization: Everything which goes to increase the importance of the subordinates role is decentralization, everything which goes to reduce it is centralization. The question of centralization or decentralization is a simple question of proportion, it is a matter of finding the optimum degree for the particular concern. The degree of centralization must vary according to different cases:

If the moral worth of the manager, his strength, intelligence, experience and swiftness of thought allow him to have a wide span of activities he will be able to carry centralization. If conversely, he prefers to have greater recourse to the experience of his colleagues whilst reserving himself the privilige of giving central directives, he can effect considerable decentralization. 9. Scalar Chain (line of authority): 10. Order: Fayol defines the formula for order as a place for everyone and everyone in his place. He classifies two types of order as material order, which means everthing must be in its appointed place and social order, which presupposes the most succesful execution of the two most difficult managerial activities: good organization and good selection. Social order demands precise knowledge of the human requirements and resources of the concern and a constant balance between these requirements and resources. 11. Equity: Desire for equity and equality of treatment are aspirations to be taken into account in dealing with employees. (Note: In motivation theories of organizational behaviour equity is important. John Stacey Adams, (behavioral psychologist) asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others in 1963. 12. Stability of tenure of personnel: Time is required for an employee to get used to new work and succeed in doing it well, always assuming that he possesses the requisite abilities. If when he has got used to it, or before then, he is removed, he will not have had time to render worthwhile service. If this be repeated indefinetly the work will never by properly done. 13. Initiative: Much tact and some integrity are required to inspire and maintain everyones initiative, within the limits imposed, by respect for authority and for discipline. The manager must be able to sacrifice some personal vanity in order to grant this sort of satisfaction to subordinates. 14. Esprit de corps: Means Union is strength. Harmony, union among the personnel of a concern, is great strenght in that concern. . (a) Personnel must not be split up. Dividing enemy forces to weaken them is clever, but dividing ones own team is a grave sin against the business. (b) Abuse of written communications. Wherever possible, contacts should be verbal; there is gain in speed, clarity and harmony. ADAM SMITH'S :

division of labour ( breakdown of jobs into narrow and repetitive tasks increased productivity) Industrial Revolution (substitution of machine power for human power) Books Authored1) The theory of Model sentiments 2) An Inquiry into the Nature and Causes of the Wealth of Nations , Popularly known as The Wealth of Nations. Of the Division of Labor

In the first chapter of The Wealth of Nations, Adam Smith, explains the optimum organization of a pin factory. Traditional pin makesrs could produce only a few dozen pins a day. However, when organized in a factory with each worker performing a limited operation, they could produce tens of thousands a day. This was the reason why Smith favored division of labor. Adam Smiths famous invisible hand statement can be read from his original words: As every individual, therefore, endeavours as much as he can both to employ his capital in the support of domestick

industry, and so to direct that industry that its produce may be of the greatest value; every individual necessarily labours to render the annual revenue of the society as great as he can. He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it . By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this , as in many other eases, led by an invisible hand to promote an end which was no part of his intention . Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it . I have never known much good done by those who affected to trade for the public good .
TYLOR'S----Scientific Management : Workmen thought that it is for their best interests to go slow instead of to go fast because they believed that if they were to double their output in the coming year, half of them would be out of a job before the year was out. Taylor asserted that this is a fallacious view. According to him the truth is: even though that labor-saving device may turn out ten, twenty, thirty

times that output that was originally turned out by men in that trade, the result has universally been to make work for more men in that trade, not work for less men. He justified his view with the efficiency increase in cotton industry. In Manchester, in 1840, there were 5,000 weavers and at the time of Taylor it was 265.000. He asked the question: has the introduction of labor-saving machinery (in cotton industry in Manchester), which has multiplied the output per man by tenfold, thrown men out of work?.
Mental Revolution First a change required is in the thinking of the workers...that even if the machines are promoted ,the men labour would be necessary in industries...!!! Four Principles of Scientific Management: Taylor explained the Principles of Scientific Management in his book which was published in 1911: Replace rule of thumb work methods with methods based on a scientific study of the tasks. Scientifically select and then train, teach, and develop the workman, whereas in the past the employee (or workmen) chose his own work and trained himself as best he could. Provide Detailed instruction and supervision of each worker in the performance of that workers discrete task Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks. MAX WEBER'S:---Characteristics of Bureaucracy Bureaucracy refers to the management of large organizations characterized by hierarchy, fixed rules, impersonal relationships, rigid adherence to procedures, and a highly specialized division of labor. Weber suggests the characteristics of bureaucracy as following : 1. There is the principle of fixed official jurisdictional areas, which are generally ordered by rules, that is, by laws or administrative regulations. 2. The principles of office hieararchy and of levels of grade authority mean a firmly ordered system of super and subordination in which there is a supervision of the lower offices by the higher ones. 3. The management of modern offices is based upon written documents (the files), which are preserved in their original or draught form. 4. Office management, at least all specialized office management and such management is distinctly modern usually presupposes thorough and expert training. 5. When the office is fully developed, official activity demands the full working capacity of the official, irrespective of the fact that his obligatory time in the bureau may be firmly delimited. 6- The management of the office follows general rules which are more or less stable, more or less exhaustive, and which can be learned. Position of the official Weber asserts that office holding is a vocation. The position of the official is in the nature of a duty. Major characteristic of Weberian Bureaucracy is devoted to impersonal and functional purposes. Entrance into an office is considered an

acceptance of a specific obligation of faithful management in return for a secure existence. This means tenureship and job security. Weber suggested that the personal position of the official is patterned in the following way: 1. Whether official is in a private office or a public bureau, the modern official always strives and usually enjoys a distinct social esteem as compared with the governed. His social position is guaranteed by the prescriptive rules of rank order and, for the political official, by special definitions of the criminal code against insults of the officials and contempt of state and church authorities. 2. The pure type of bureaucratic official is appointed by a superior authority. An official elected by the governed is not a purely bureaucratic figure. In principle, an official who is so elected has an autonomous position opposite the superordinate official. The elected official does not derive his position from above but from below. The official who is not elected but appointed by a chief normally functions more exactly, from a technical point of view, because, all other circumstances being equal, it is more likely that purely functional points of consideration and qualities will determine his selection and career. 3. Normally, the position of the official is held for life, at least in public bureaucracies; As a factual rule,tenure for life is presupposed, even where the giving of notice or periodic reappointment occurs. 4. The official receives the regular pecuniary compensation of a normally fixed salary and the old age security provided by a pension. The salary is not measured like a wage in terms of work done, but according to status, that is, according to the kind of function (the rank) and, in addition, possibly, according to the length of service. 5. The official is set for a career within the hierarchical order of the public service. He moves from the lower, less important, and lower paid to the higher positions. A Classification of Motivation Theories (Content vs. Process) Motivation theories can be classified broadly into two different perspectives: Content and Process theories. Content Theories deal with what motivates people and it is concerned with individual needs and goals. Maslow, Alderfer, Herzberg and McCelland studied motivation from a content perspective. Process Theories deal with the process of motivation and is concerned with how motivation occurs. Vroom, Porter & Lawler, Adams and Locke studied motivation from a process perspective. 1. Content Theories about Motivation

Abraham Maslows Hierarchy of Needs

. Psychologist Abraham Maslow first introduced his concept of a hierarchy of needs

In his 1943 paper "A Theory of Human Motivation"1. his subsequent book, Motivation and Personality.2 hierarchy suggests that people are motivated to fulfil basic needs before moving on to other needs.

Maslows hierarchy of needs is most often displayed as a pyramid. o Lowest levels of the pyramid -the most basic needs, o The more complex needs are located at the top of the pyramid. o Needs at the bottom of the pyramid -basic physical requirements(need for food, water, sleep and warmth). o Once these lower-level needs have been met, people can move on to the next level of needs, which are for safety and security. o As people progress up the pyramid, needs become increasingly psychological and social. o Soon, the need for love, friendship and intimacy become important. o Further up the pyramid, the need for personal esteem and feelings of accomplishment take priority. o Like Carl Rogers, Maslow emphasized the importance of self-actualization, which is a process of growing and developing as a person to achieve individual potential. Types of Needs

1.

Maslow believed that these needs are similar to instincts and play a major role in motivating behaviour. Physiological, security, social, and esteem needs are deficiency needs (also known as D-needs), meaning that these needs arise due to deprivation. Satisfying these lower-level needs is important in order to avoid unpleasant feelings or consequences. Maslow termed the highest-level of the pyramid as growth needs (also known as being needs or B-needs). Growth needs do not stem from a lack of something, but rather from a desire to grow as a person. Five Levels of the Hierarchy of Needs There are five different levels in Maslows hierarchy of needs: Physiological Needs These include the most basic needs that are vital to survival, such as the need for water, air, food and sleep. Maslow believed that these needs are the most basic and instinctive needs in the hierarchy because all needs become secondary until these physiological needs are met.

1.

Security Needs These include needs for safety and security. Security needs are important for survival, but they are not as demanding as the physiological needs. Examples of security needs include a desire for steady employment, health insurance, safe neighborhoods and shelter from the environment.

1.

Social Needs These include needs for belonging, love and affection. Maslow considered these needs to be less basic than physiological and security needs. Relationships such as friendships, romantic attachments and families help fulfill this need for companionship and acceptance, as does involvement in social, community or religious groups.

1.

Esteem Needs After the first three needs have been satisfied, esteem needs becomes increasingly important. These include the need for things that reflect on self-esteem, personal worth, social recognition and accomplishment.

1.

Self-actualizing Needs This is the highest level of Maslows hierarchy of needs. Self-actualizing people are self-aware, concerned with personal growth, less concerned with the opinions of others and interested fulfilling their potential.

Alderfers ERG Theory http://ozgurzan.files.wordpress.com/2011/02/alderger-erg-theory.jpgIn 1969, Clayton P. Alderfer, simplified Maslows theory by categorizing hierarchy of needs into three categories:

Physiological and Safety needs are merged in Existence Needs, Belonging needs is named as Relatedness Needs, Self-esteem and Self-actualization needs are merged in Growth Needs Herzbergs Two Factor Theory http://ozgurzan.files.wordpress.com/2011/02/herzberg.jpgFrederick Herzberg, introduced his Two Factor Theory in 1959. He suggested that there are two kinds of factors affect motivation, and they do it in different ways:

1) Hygiene factors: A series of hygiene factors create dissatisfaction if individuals perceive them as inadequate or inequitable, yet individuals will not be significantly motivated if these factors are viewed as adequate or good. Hygiene factors are extrinsic and include factors such as salary or remuneration, job security and working conditions. 2) Motivators: They are intrinsic factors such as sense of achievement, recognition, responsibility, and personal growth. The hygiene factors determine dissatisfaction, and motivators determine satisfaction. Herzberg theory conforms with satisfaction theories which assert that a satisfied employee tends to work in the same organization but this satisfaction does not always result in better performance. In other words,satisfaction does not correlate with productivity. McClellands Achievement Need Theory in his 1961 book named as The Achieving Society, David McClelland identified three basic needs that people develop and acquire from their life experiences .

Needs for achievement: The person who have a high need for achievement seeks achievement and tries to attain challenging goals. There is a strong need for feedback as to achievement and progress, and a need for a sense of accomplishment. The person who have a high achievement need likes to take personal responsibility. Needs for affiliation: The person who have a high need for affiliation needs harmonious relationships with people and needs to be accepted by other people. (People-oriented rather than task-oriented). Needs for power: The person who have a need for power wants to direct and command other people. Most managers have a high need for power. Although these categories of needs are not exlusive, generally individuals develop a dominant bias or emphasis towards one of the three needs. Entrepreneurs usually have high degree of achivement needs. Incentive Theory Incentive theory suggests that employee will increase her/his effort to obtain a desired reward. This is based on the general principle of reinforcement. The desired outcome is usually money. This theory is coherent with the early economic theories where man is supposed to be rational and forecasts are based on the principle of economic man. 2. Process Theories about Motivation Expectancy Theory Expectancy Theory argues that humans act according to their conscious expectations that a particular behavior will lead to specific desirable goals. Victor H. Vroom, developed the expectancy theory in 1964, producing a systematic explanatory theory of workplace motivation. Theory asserts that the motivation to behave in a particular way is determined by an individuals expectation that behaviour will lead to a particular outcome, multiplied by the preference or valence that person has for that outcome. Three components of Expectancy theory are: Expectancy: E -> P. The belief of the person that her/his effort (E) will result in attainment of desired performance (P) goals. Instrumentality: P -> R. The belief of the person that she/he will receive a reward (R) if the performance (P) expectation is met. Valence: The value of the reward according to the person. (e.g. Is the reward attractive to the person?) The equation suggests that human behaviour is directed by subjective probability. Goal Theory Edwin Locke proposed Goal Theory in 1968, which proposes that motivation and performance will be high if individuals are set specific goals which are challenging, but accepted, and where feedback is given on performance. The two most important findings of this theory are: Setting specific goals (e.g. I want to earn a million before I am 30) generates higher levels of performance than setting general goals (e.g. I want to earn a lot of money). The goals that are hard to achieve are linearly and positively connected to performance. The harder the goal, the more a person will work to reach it. John Stacey Adams Equity Theory Developed by John Stacey Adams in 1963, Equity Theory suggests that if the individual perceives that the rewards received are equitable, that is, fair or just in comparison with those received by others in similar positions in or outside the organization, then the individual feels satisfied. Adams asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others.

CHESTER BERNARD---Chester Barnard looked at organizations as systems of cooperation of human activity, and was worried about the fact that they are typically rather short-lived. Firms that last more than a century are rather few, and the only organization that can claim a substantial age is the Catholic Church. According to Chester Barnard, this happens because organizations do not meet the two criteria necessary for survival: effectiveness and efficiency. He defines efficiency of an organization as the degree to which that organization is able to satisfy the motives of the individuals. If an organization satisfies the motives of its participants, and attains its explicit goals, cooperation among them will last. Two of his theories are particularly interesting: the theory of authority and the theory of incentives. Both are seen in the context of a communication system that should be based in seven essential rules:

The Channels of communication should be definite Everyone should know of the channels of communication Everyone should have access to the formal channels of communication Lines of communication should be as short and as direct as possible Competence of persons serving as communication centers should be adequate The line of communication should not be interrupted when organization is functioning Every communication should be authenticated Theory of authority:One might say that managers should treat workers respectfully and competently to obtain authority. In the theory of incentives, he sees two ways of convincing subordinates to cooperate: tangible incentives and persuasion. He gives great importance to persuasion, much more than to economic incentives. He described four general and four specific incentive. McGregor's XY Theory remains central to organizational development, and to improving organizational culture. Theory x ('authoritarian management' style)

The average person dislikes work and will avoid it he/she can. Therefore most people must be forced with the threat of punishment to work towards organisational objectives. The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else. Theory y ('participative management' style)

Effort in work is as natural as work and play. People will apply self-control and self-direction in the pursuit of organisational objectives, without external control or the threat of punishment. Commitment to objectives is a function of rewards associated with their achievement. People usually accept and often seek responsibility. The capacity to use a high degree of imagination, ingenuity and creativity in solving organisational problems is widely, not narrowly, distributed in the population. In industry the intellectual potential of the average person is only partly utilised. Characteristics of The x Theory Manager

What are the characteristics of a Theory X manager? Typically some, most or all of these: results-driven and deadline-driven, to the exclusion of everything else intolerant issues deadlines and ultimatums distant and detached aloof and arrogant

elitist short temper shouts issues instructions, directions, edicts etc..........................all negative !!!!!!!!!!!!!!!!!!!!!! Theory z - William Ouchi is often referred to as the 'Japanese' management style, which is essentially what it is. It's interesting that Ouchi chose to name his model 'Theory Z', which apart from anything else tends to give the impression that it's a Mcgregor idea. One wonders if the idea was not considered strong enough to stand alone with a completely new name... Nevertheless, Theory Z essentially advocates a combination of all that's best about theory Y and modern Japanese management, which places a large amount of freedom and trust with workers, and assumes that workers have a strong loyalty and interest in teamworking and the organisation. Theory Z also places more reliance on the attitude and responsibilities of the workers, whereas Mcgregor's XY theory is mainly focused on management and motivation from the manager's and organisation's perspective. Mary Parker Follett Mary Parker Follett (18681933) was an American social worker, consultant, and author of books on democracy, human relations, and management. She worked as a management and political theorist, introducing such phrases as "conflict resolution," "authority and power," and "the task of leadership." HENRY FORD:-Henry Ford was an American industrialist, the founder of the Ford Motor Company, Mayo Elton Mayo (1880 1949) believed that workers are not just concerned with money but could be better motivated by having their social needs met whilst at work (something that Taylor ignored). He introduced the Human Relation School of thought, which focused on managers taking more of an interest in the workers, treating them as people who have worthwhile opinions and realising that workers enjoy interacting together. Mayo conducted a series of experiments at the Hawthorne factory of the Western Electric Company in Chicago He isolated two groups of women workers and studied the effect on their productivity levels of changing factors such as lighting and working conditions. He expected to see productivity levels decline as lighting or other conditions became progressively worse What he actually discovered surprised him: whatever the change in lighting or working conditions, the productivity levels of the workers improved or remained the same. Herzberg Frederick Herzberg (1923-) had close links with Maslow and believed in a two-factor theory of motivation. He argued that there were certain factors that a business could introduce that would directly motivate employees to work harder (Motivators). However there were also factors that would de-motivate an employee if not present but would not in themselves actually motivate employees to work harder (Hygienefactors) Motivators are more concerned with the actual job itself. For instance how interesting the work is and how much opportunity it gives for extra responsibility, recognition and promotion. Hygiene factors are factors which surround the job rather than the job itself. For example a worker will only turn up to work if a business has provided a reasonable level of pay and safe working conditions but these factors will not make him work harder at his job once he is there. Importantly Herzberg viewed pay as a hygiene factor which is in direct contrast to Taylor who viewed pay, and piece-rate in particular Herzberg believed that businesses should motivate employees by adopting a democratic approach to management and by improving the nature and content of the actual job through certain methods. Some of the methods managers could use to achieve this are: Job enlargement workers being given a greater variety of tasks to perform (not necessarily more challenging) which should make the work more interesting. Job enrichment - involves workers being given a wider range of more complex, interesting and challenging tasks surrounding a complete unit of work. This should give a greater sense of achievement. Empowerment means delegating more power to employees to make their own decisions over areas of their working life. From this Mayo concluded that workers are best motivated by:

Better communication between managers and workers ( Hawthorne workers were consulted over the experiments and also had the opportunity to give feedback) Greater manager involvement in employees working lives ( Hawthorne workers responded to the increased level of attention they were receiving) Working in groups or teams. ( Hawthorne workers did not previously regularly work in teams) In practice therefore businesses should re-organise production to encourage greater use of team working and introduce personnel departments to encourage greater manager involvement in looking after employees interests. His theory most closely fits in with a paternalistic style of management. Taylor Frederick Winslow Taylor (1856 1917) put forward the idea that workers are motivated mainly by pay. His Theory of Scientific Management argued the following: Workers do not naturally enjoy work and so need close supervision and control Therefore managers should break down production into a series of small tasks Workers should then be given appropriate training and tools so they can work as efficiently as possible on one set task. Workers are then paid according to the number of items they produce in a set period of time- piece-rate pay. As a result workers are encouraged to work hard and maximise their productivity. Taylors methods were widely adopted as businesses saw the benefits of increased productivity levels and lower unit costs. The most notably advocate was Henry Ford who used them to design the first ever production line, making Ford cars. This was the start of the era of mass production. Taylors approach has close links with the concept of an autocratic management style (managers take all the decisions and simply give orders to those below them) and Macgregors Theory X approach to workers (workers are viewed as lazy and wish to avoid responsibility). However workers soon came to dislike Taylors approach as they were only given boring, repetitive tasks to carry out and were being treated little better than human machines. Firms could also afford to lay off workers as productivity levels increased. This led to an increase in strikes and other forms of industrial action by dis-satisfied workers. **************************************************************************************************** ******* 1) Douglas McGregor-Theory-x & y 2) Abraham Maslow- Hierarchy of needs 3) Max Weber-The Protestant Ethic and the Spirit of Capitalism 4) Karl Marx-Marxism 5) Georg Simmel -Sociological theory 6) Henri Fayol- Theory of Business administration 7) Henry Ford- Fordism & Ford model-T ******************************************************************* Some Pointers on Labour Law - Under the Industrial Disputes Act, 1947 a trade union can appear for the workman before the labour tribunals, i.e. the workman is not required to hire lawyers. In fact the Act specifically says that lawyers are not allowed unless agreed by the party. - Not all workers are covered by the Industrial Disputes Act, 1947. Only those who are doing manual, skilled or unskilled job which is not managerial, administrative or supervisory in nature. However, if you are a supervisor and if your salary is less than 10,000/- even then you are covered under the Act (as per latest 2010 Amendment). -Right to strike is "not" a fundamental right i.e. it is not recognized by the Constitution. -As per the new 2010 Amendment to Industrial Dispute Act,1947, any workman whose services are terminated can directly approach the Labour Court instead of waiting for the Government to make a reference to the court.

******************************************************************** http://www.citehr.com/125908-busines-knowledge-hr-question-answer.html ---imp site

************************************************************************* TRADE UNION: A trade union (British English) or labor union (American English) is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts (collective bargaining) with employers. This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies. The agreements negotiated by the union leaders are binding on the rank and file members and the employer and in some cases on other non-member workers. Originating in Europe, trade unions became popular in many countries during the Industrial Revolution, when the lack of skill necessary to perform most jobs shifted employment bargaining power almost completely to the employers' side, causing many workers to be mistreated and underpaid. Trade union organizations may be composed of individual workers, professionals, past workers, or the unemployed. The most common, but by no means only, purpose of these organizations is "maintaining or improving the conditions of their employment". Over the last three hundred years, many trade unions have developed into a number of forms, influenced by differing political objectives. Activities of trade unions vary, but may include:

Provision of benefits to members: Early trade unions, like Friendly Societies, often provided a range of benefits to insure members against unemployment, ill health, old age and funeral expenses. In many developed countries, these functions have been assumed by the state; however, the provision of professional training, legal advice and representation for members is still an important benefit of trade union membership. Collective bargaining: Where trade unions are able to operate openly and are recognized by employers, they may negotiate with employers over wages and working conditions. Industrial action: Trade unions may enforce strikes or resistance to lockouts in furtherance of particular goals. Political activity: Trade unions may promote legislation favourable to the interests of their members or workers as a whole. To this end they may pursue campaigns, undertake lobbying, or financially support individual candidates or parties (such as the Labour Party in Britain) for public office.