Human

Relation
Aaproach

Scientific management remained concerned

with the the efficiency and productivity of
workmen at the shop floor.

Fayols functional approach to management

aimed as improving the managerial activities
and performance at top level in the
organization.

The classical school did not give importance

to the human aspects of the workers.

Therefore, they did not achieve a high level

of production efficiency and co-operation
between the management and workers

New experts drew their attention from work

emphasis to worker emphasis.

earlier approaches to management were

incomplete and insufficient.

little recognition of the importance of workers as

human beings, their attitudes, feelings,
needs and requirements.

Behavioral theorists viewed it from the

individuals point of view.
i.e. attitudes behaviour group processes etc.

standardization of work or monetary rewards

offered for efficiency.

Elton Mayo is the founder of this theory.

The human relations experts tried to integrate

Psychology and
Sociology with Management.
(combine)

According to them, organisation is a social system of

interpersonal and inter group relationships.

They gave importance to the management of people.

They assumes that happy workers are
productive workers.

They felt that management can get the work done

from the workers by satisfying their social and
psychological needs.

PRINCIPLES OF HUMAN RELATIONS

APPROACH

Human beings are not interested only in financial gains.

They also need recognition and appreciation.

Workers must be treated like human beings and not like

machines.

Managers should try to understand the feelings and

emotions of the workers.

An organisation works not only through formal relations,

but also through informal relations.

Therefore, managers should encourage informal relations

in the organisation along with formal relations.

Workers need a high degree of job security and job

satisfaction. Therefore, management should give job
security and job satisfaction to the workers.

Workers want good communication from

the managers. Therefore, managers should
communicate effectively without feelings of
ego and superiority complex.

In any organisation, members do not like

conflicts and misunderstandings.

Therefore, managers should try to

stop
conflicts and misunderstandings
among the members of the organisation.
Trade union

 Workers

want freedom. They do not want strict

supervision. Therefore, managers should avoid strict

supervision and control over the workers.

Employees would like to participate in

decision making, in those matters affecting
their interests.
Therefore, management must encourage

workers' participation in management.

This will increase productivity and job satisfaction.

HAWTHORNE EXPERIMENTS

human relations approach to

management developed as a result of a
series of experiences conducted by Elton Mayo
The

and his associates at the Hawthrone plant of the

Western Electric Company at Chicago in United States.

The Hawthrone studies were aimed at

finding out what factors really influenced the
productivity and work performance of workers.

These experiments were made with respect to

different levels of illumination in the work place

changing in working conditions like hours of work,

lunches, rest periods and how group norms affect
group effort and output.

Mayo (human relations approach)

Elton Mayo founded the Human Relations Movement.

Experiments undertaken by Mayo took place at the Hawthorne

plant in the USA during the 1930s.

His work illustrated that if the company or managers took an

interest in employees and cared for them, it had a positive
effect on their motivation.

When managers took a greater interest in employees they felt

more valued and empowered.

His work also showed that employees often work best in

teams.

He also showed that they were more motivated if they were

managed and consulted more.

Human Relations Concepts: Findings of Hawthorne

Studies

1. Physical environment at work place (i.e., working

conditions) do not have any material effect on the
efficiency of work.

2. Social or human relationship influenced productivity

more directly than changes in working conditions.

3. Favourable attitudes of workers and work-teams

towards their work were more important factors
determining efficiency.

4. Fulfillment of workers social and psychological

needs have a beneficial effect on the morale and
efficiency of workers.

5. Employee groups formed on the basis of social

interactions and common interest exercised a
strong influence on workers, performance.

In other words, informal organization controlled

the norms established by the groups in respect
of each members output.

6. Workers cannot be motivated solely by

economic reward. More important motivators
are job security, recognition by superiors and
freedom to take initiative and to express their
individual opinions as matters of their own
concern

Modern Approach
to Management

APPROACHES TO MANAGEMENT

1. Classical Approach to mgt.

Scientific
Administrative
Bureaucratic
Human relation Approach

2. Modern Approach to mgt.

Behavioral
Quantitative
Systems
Contingency approach

Behavioural
Aaproach

 Goal

and efficiency oriented.

explain the behavior of individual
employees.
Considers the understanding of human
behaviour to be the major means to
that end.
Emphases on human resource in an
org.
Divided into 2 groups inter-personal
behavioual approach and group
behaviour approach.
Study Individual psychology and social
psychology.

The behaviour of the members of an organization

clearly affect both its structure and its
functioning, as well as the principles on which it
can be managed.

Several individual differences in perceptions,

aspirations, needs, feelings, abilities and values of
people excite in the organization, such difference along
with their changing nature over periods of time have
to be recognized.
Behavioral theorists believed that a better
understanding of human behavior at work, such
as motivation, conflict, expectations, and group
dynamics, improved productivity.
Stress management seminars, personality
development.

MASLOW (HIERARCHY OF NEEDS)

In the early 1950s Abraham Maslow developed a
theory of motivation.
This was arranged in the form of a hierarchy of needs.
1. basic needs:
At the bottom of the hierarchy are the basic needs.
For example, these reflect that people work primarily
to provide basic things that enable them to live, such
as food and accommodation.

2. safety needs: This is followed by safety needs that

enable individuals to protect themselves and their
families. Job security, sickness
3. Social needs: These are followed by social needs as
individuals develop a sense of belonging. Recognition,
exchange feelings and grievances,

4. Esteem - higher order needs such as those of

esteem and status needs self confidence,
independence, competence, success .
These needs are concern with prestige and
respect for the individuals.
Employees take responsibility for their own jobs
and are constantly involved in improvement and
change. An individual must develop selfconfidence
and wants to achieve status, reputation, fame, and
glory.
5. Self-actualisation - through challenging and
interesting work. It is the desire to become what
one is capable of becoming.

Maslows
Hierarchy of
Needs

SelfActualisation

Maximum use
of potential,
achieving goal.

Esteem Needs

status, prestige
belongingness

Social needs

Family, friends,

Security/safety
needs

Safety about
job, old age,
insurance

Psychological
needs

Food, clothing,
shelter

DOUGLAS MC GREGOR

He developed two assumptions abt. Human

behaviour.
Theory X and theory Y
Theory X
presents negative view of ppl.
managers assume that workers are lazy, have
little ambition, dislike work.
Want to avoid responsibility and need to be
closely directed.
Not very intelligent
Lacks creativity in problem solving.

Theory Y
Positive and presumes that workers are creative
and innovative,
willing to take responsibility, exercise self control
and enjoy they work. If properly.

HERZBERG AND 2-FACTOR

THEORY

His theory is sometimes called the two-factor theory.

He looked at motivators and hygiene factors.

Hygiene factors, often referred to as

dissatisfiers, are
elements in the work environment that could make
employees unhappy.
creates favourable environment for motivation and
prevents job disatisfaction.
Co. policies, administration, supervision, salary, job
security, employee benefits.
They relate to the conditions under which a job is
performed.

Motivators, often referred to as satisfiers,

work environment that provide employees with
job satisfaction.
For example, recognition for effort and
performance. Satisfied employees then become
more productive. challenging work, chance for
advancement.
This is a satisfier as employees develop a genuine
attachment to the teams in which they work.
employees receiving shares in the company as
well as bonuses based on how well the business
as a whole is doing.
The aim is for employees to act and feel like
owners of the business.
These also help them to be recognised for their
contribution.

CONCLUSION

People donot dislike work. If the objectives are set

they would like to achieve them.

Job is a source of motivation and satisfaction.

Use the untrapped human potential.

Operating efficiency be improved subordinate

influence, self-direction and self control.
Managers should create healthy environment so that
subordinate can contribute to the best of their
capacity.

Informal leadership rather than the formal

authority of supervisors is more important for
increase in employee performance.
Democratic leadership style and participative
managerial style encourage positive attitude of
employee towards work and fasters high moral
and initiative among them.
A wide range of factors influences work and
interpersonal behaviour of people in the
organization.

Quantitative
Aaproach

The quantitative approach to management involves

the use of quantitative techniques, such as statistics,
information models, and computer simulations, to
improve decision making.

Management science school

Operations Management
Management information systems

THE MANAGEMENT SCIENCE

SCHOOL
Actions which can be expressed in terms of mathematical symbols,
relationships, and measurements of data,
Also known as Operational reserarch
Managers can use computer models to figure out the best way to do
something saving both money and time.

Mathematical forecasting helps make projections that are useful in the

planning process.
Techniques used are :
capital budgeting cash flow management
production scheduling
development of pdt. strategies
human resource planning
maintain optimal inventory levels

Mathematical Tools :
Inventory modeling helps control inventories by
mathematically establishing how and when to
order a product.
linear programming
PERT program evolution review technique
CPM Critical path method.
Probability theory
Queuing theory helps allocate service personnel
or workstations to minimize customer waiting
and service cost.

OPERATIONS MANAGEMENT
It deals with the effective management of the production process
and timely delivery of pdts or services.
It focuses on managing the process of transforming materials,
labor, and capital into useful goods and/or services.
Operation mgt. is concerned with:
(i) inventory mgt.
(ii) work scheduling
(iii) production planning photocopier
(iv) quality assurence
Tools used by operation managers are:
(i) Forecasting
(ii) Inventory analysis
(iii) Materials reqirenment plannning system
(iv) Network models
(v) Statistical quality control
(vi) Projective planning.

The transformation process is set of operations through

which various resources are utilized to produce finished
goods or services of value to customers or clients.
Operations management today pays close attention to the
demands of quality, customer service, and competition.

The process begins with attention to the needs of

customers:
What do they want?
Where do they want it?
When do they want it?
Based on the answers to these questions, managers line
up resources and take any action necessary to meet
customer expectations

MANAGEMENT INFORMATION
SYSTEMS

A management information system organizes past,

present, and projected data from both internal and
external sources and processes it into usable information,
which it then makes available to managers at all
organizational levels.

The information systems are also able to organize data

into usable and accessible formats.
managers can identify alternatives quickly, evaluate
alternatives by using a spreadsheet program, pose a
series of whatif questions, and finally, select the best
alternatives based on the answers to these questions.

2.SYSTEMS MANAGEMENT
THEORY
Large and external environment.
An organization as a system is composed of four elements:
Inputs material or human resources - such as raw
materials, money, technologies, and people

Transformation processes technological and

managerial processes- planned, organized, motivated, and
controlled to ultimately meet the organization's goals.

Outputs products or services

Feedback reactions from the environment- outcome
and position of the org. - comments from customers or
clients using the products

there are two types of systems:

An organization that interacts little with its external
environment (outside environment) and therefore
receives little feedback from it is called a closed
system.

An open system, interacts continually with its

environment. Therefore, it is well informed about
changes within its surroundings and its position
relative to these changes.

Synergy is the ability of the whole system to equal

more than the sum of its parts.

CONTINGENCY
Also known as the situational theory.
The contingency school of management can be
summarized as an it all depends approach.

The appropriate management actions and approaches

depend on the situation.
there is no one best way to manage all situations.
Managers with a contingency view use a flexible
approach, draw on a variety of theories and
experiences, and evaluate many options as they solve
problems.

Contingency management recognizes that there

is no one best way to manage.
managers are faced with the task of determining
which managerial approach is likely to be most
effective in a given situation.
For example, the approach used to manage a
group of teenagers working in a fastfood
restaurant would be very different from the
approach used to manage a medical research
team trying to find a cure for a disease.

Contingency thinking avoids the classical one

best way.

The contingency approach is highly dependent on

the experience and judgment of the manager in a
given organizational environment.