Approaches to Management or Management theory

Classical approach

Classical theorists formulated principles for setting up and managing organizations. These views are labeled “classical” because they form the foundation for the field of management thought. It includes:

• Scientific management
• Administrative management
• Bureaucratic management

Neo-classical approach

It is also called Behavioral Approach. The behavioral approach to management began with the ‘Hawthorne experiment’. It includes:-

• Human Relations Approach

Modern approach

Based on the various concepts & writings of various author, the modern theory of management can be classified as:

• Quantitative approach
• Systems approach
• Contingency approach

Marry Parker Follett

Another thinker associated with human relations movement is Follett. She studied political science and economics at Harvard and Cambridge. She was a social worker associated with educational, recreational and vocational guidance centers. She found that managers were also facing same problems as faced by public administrators.

Follett interpreted classical management principles in terms of human factor. She wrote several papers which were collected in ‘Dynamic Administration’ edited by Metcalf and Urwick. Follett favored participation of the workers in the decision making process by establishing clear cut channels of communication. She argued that authority and order in an organization should be de-personalized. Facts of a situation determine the basis of authority and responsibility. She favored professionalization of management. Follett advocated that integration not domination should be followed for removing conflicts among parties.

Follett’s main concern was the efficient use of people. She used the tool of psychology to answer various questions. Even though her approach was different than those of other thinkers on human relations but she has a reputation as a pioneer of human relations approach.

She was the person who introduced the concepts of social Work Political Science. She identified:

1. Working in groups is more important than working individually in any organization.
2. That “power with” should be the principle of management-employee relation in the organization rather than “Power over”.
3. Use of integration to resolve conflicts like providing a solution that offers mutual benefit to both of the parties involved in conflict.
4. Integrative unity is the secret of success in an organization where different departments are present and working to achieve the same goal.

Hawthorne Experiments

Elton Mayo (1880-1949), the “Father of the Human Relations Approach,” led the team which conducted a study at Western Electric’s Hawthorne Plant between 1927 and 1933 to evaluate the attitudes and psychological reactions of workers in on-the-job situations. The researchers and scholars associated with the Hawthorne experiments were Elton Mayo, Fritz Roethlisberger, T.N. Whitehead and William Dickson. The National Research Council sponsored this research in cooperation with the Western Electric Company. The study was started in 1924 by Western Electric’s industrial engineers to examine the impact of illumination levels on worker productivity. Eventually the study was extended through the early 1930s. The ground-breaking Hawthorne studies carried out in the Hawthorne plant of the Western Electric Company (USA) 1927 - 32.

Experiments

Stage 1 (1924 -27) – ‘Illumination experiments’

Study of the physical surroundings (lighting level) on productivity of workers. Control group and experimental group previously had similar productivity before study began

Control Group = constant lighting level

Experimental Group = varied lighting level

Result

Both groups productivity increased - even when experimental group was working in dim light. Product leader called Mayo and colleagues to explain

Stage 2 (1927 - 29) - 'Relay assembly room stage'

Still analyzing effect of physical surroundings (rest, pauses, lunch break duration, length of working week) on output

Result

Output increased even when worsening conditions. Hypothesis was now that it was the attitudes of subjects at work and not the physical conditions. This gave rise to the 'Hawthorne Effect' - employees were responding not so much to changes in the environment as to the fact they were the centre of attention - a special group.

Stage 3 (1928 - 30) – ‘Mass interviewing program’

A Total of 20,000 interviews were collected with the workers on employee attitudes to working conditions, their supervision and their jobs.

Stage 4 (1932) - 'Bank wiring observation room'

This time the new subjects (14 men) put in separate room for six months

Result

Productivity restricted due to pressure from peers to adopt a slower rate to circumvent company wages incentive scheme to generally adopt own group rules and behavior

Pre-judgment	Findings
Job performance depends on the individual worker.	The group is the key factor in job performance.
Fatigue is the main factor affecting output.	Perceived meaning and importance of the work determine output.
Management sets production standards.	Workplace culture sets its own production standards.

Summary of the Hawthorne Experiments

       Motivation: Employees are not motivated by only money (bonus scheme and incentive).

       Communication: By proper communication, management can easily identified the problem faced by its employees and can easily solve out.

       Social factors: Social factors are responsible for deciding the level of output.

       Behavior of workers: workers are not as individual identity but as members of a group in an organization and they have their own norms and beliefs.

       Relationship: Employees do not like order and command. They want co-operative attitude from their superiors.

       Production level:  Teamwork and Group psychology increases productivity.