1. Organization Theories

2. Organization theories
Classical Theory
- Scientific Management theory
- Administrative Management Theory
- Theory of Bureaucracy
Human Relation approach ( Hawthorne experiments)
System theory
Contingency Theory
Organization theories

3. Scientific Management theory
Given by Frederick W. Taylor
Principles of scientific management :
Substituting research science rules for
rules of thumb
Harmony in Group action
Cooperation
Maximum output in place of restricted output
Scientifically select, train, teach and develop employees
Scientific Management theory

4. Scientific Management theory
Main features:
Separation of planning from doing function
Functional foremanship
Standardize fair day’s work
Work study
-Method study
- Motion study
-Time study
- Fatigue study
Scientific Management theory

5. Scientific Management theory
Rate setting
Standardization
Scientific selection & training
Financial incentives
Mental Revolution
Scientific Management theory

6. Administrative theory
Given By Henry Fayol
Division of work
Authority & Responsibility
Discipline
Unity of Command
Unity Of direction
Subordination of individual interest to Group interest
Administrative theory

7. Administrative theory contd…
Remuneration of personnel
Centralization
Scalar Chain
Order
Equity
Stability of tenure
Initiative
Esprit de Corps
Administrative theory contd…

8. Bureaucracy theory Given by Max Weber
Division of Labor with highly skilled employees in each position
Consistent organization rules and procedures
Hierarchy of authority/chain of command
Impersonality of interpersonal relationships
Employment/Advancement based on
competence
Bureaucracy theory

10. Human relation approach
Hawthorne experiments conducted by Elton Mayo
Illumination experiment
Relay assembly test room experience
Mass interviewing programme
Bank wiring observation room experiment
Human relation approach

11. Findings of Hawthorne experiments
Organizations are social organizations
Informal group exists with formal groups
Production norms decided by social norms not by physical capacity
Money not a sole motivator
Informal leader exists
Friendly supervision
Workers prefer cordial relationships
Findings of Hawthorne experiments

12. The Systems Approach System Defined Basic Types of Systems
A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.
Basic Types of Systems
Closed systems
Are not influenced by and do not interact with their environment (all system input and output is internal).
Open systems
Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments. 12

13. The Organization as an Open System

14. Characteristics of open system:
Composed of subsystems
Components are interrelated
Environment awareness
Feedback
Cyclical character
Balance of maintenance & adaptation activities
Self regulatory mechanism
Characteristics of open system:

15. Implications of the Systems Approach
Coordination of the organization’s parts is essential for proper functioning of the entire organization.
Decisions and actions taken in one area of the organization will have an effect in other areas of the organization.
Organizations are not self-contained and, therefore, must adapt to changes in their external environment. 15

16. The Contingency Approach
Contingency Approach Defined
Also sometimes called the situational approach.
There is no one universally applicable set of management principles (rules) by which to manage organizations.
Organizations are individually different, face different situations (contingency variables), and require different ways of managing. 16