1.

Classical approach
a)Scientific management
3.Modern approaches:
 taylor - SYSTEM THEORY
 gantt - MANAGEMENT
 gilbreth
b) administrative management SCIENCE/QUANTITATIV
 (HENRY fayol) E/OPERATIONS
c)bureaucratic managemnt
2. Neo- classical approach:
REASEARCH/
a.human relations approach MATHEMATICAL
b. Behavioural approach APPROACH
 Maslow
 Mcgregor
 Herzberg
 likert
 The concept of scientific management was
introduced by Frederick Winslow Taylor

 According to him, scientific management is

concerned with knowing exactly what you
want men to do and then see in that they do
it in the best and cheapest way.
 Separation of planning and doing:
emphasized that planning should be left to
the supervisor and the worker should
emphasize only operational work

 Functional foremanship: in this concept,

8 persons are involved to direct the activities
of workers. Out of these, 4 persons are
concerned with planning and remaining 4
with doing
 Job analysis: job analysis is undertaken to
find out the one best way of doing the thing
which involves least movements ,
consequently less time and cost. It involves
time study, motion study and fatigue study

 Standardization: it should be maintained

in respect of instruments, tools, period of
work , amount of work, working conditions
and cost of production etc.
 Scientific selection and training of
workers: a worker should be given work for
which he is physically and technically most
suitable.

 Financial incentives: It can motivate

workers to put in their maximum efforts. He
applied the concept of differential piece rate
system
 Economy: the economy and profit can be
achieved by making the resources more
productive as well as by eliminating the
wastages.

 Mental revolution: scientific management

depends upon the mutual co-operation
between the management and workers. To
achieve this, there should be mental change
in both parties from conflict to co-operation.
 Replacing rule of thumb with science: the use of
scientific method denotes precision in
determining any aspect of work and rule of
thumb emphasizes estimation.
 Harmony in group action: group harmony
suggests that there should be mutual give and
take situation and proper understanding so that
group as a whole contributes to the maximum.
 Co-operation: co-operation between
management and workers can be developed
through mutual understanding and a change in
thinking.
 Maximum output: he advised the
management and workers to turn their
attention towards increasing the size of the
surplus until the size of the surplus becomes
so large that it is necessary to quarrel over
how it shall be divided.
 Development of workers: development
of workers requires their scientific selection
and providing them training at the workplace.
 1. Exploitation of Workers


Taylor's Scientific Management put unnecessary pressures on

the employees to perform the work faster. Importance was
given to productivity and profitability. This resulted in
exploitation of the employees. Therefore, many employees
joined trade unions. This also resulted in mistrust between
management and employees.


2 . Problem of Unity of Command



Taylor used functional foremanship. So, the workers have to

report to eight bosses. This breaks the principle of unity of
command, where the workers have to report to only one boss.
Lack of unity of command can create confusion and chaos in
the organisation.

3. Mechanical Approach
Taylor's approach was a mechanical approach. He gave too
much importance to efficiency. He did not consider the human
element. Taylor considered workers as robots, which could
speed up the work at any cost.

4. Problem of Separation of Planning from Doing

Taylor said to separate planning from doing. In reality, we
cannot separate planning from doing. The planners should also
be engaged in doing, then only they will be able to make
realistic plans for the organisation.
 5. Individualistic Approach
Taylor's scientific management gives too much
importance to individual performance and not to
group performance. However, the success of an
organisation depends not only on individual
performance of workers, but also on group
performance of workers.

6. Wrong Assumptions
Taylor assumed that workers are motivated only
by financial gains. However, in reality, workers are
motivated not financial incentives but also by
social needs and personal egos.
 7. Narrow Application
Taylor's scientific management has narrow
application. It can be applied only when the
performance of the workers can be measured
quantitatively. It can be applied only for
factories where the performance can be
measured quantitatively. It cannot be used in
the service sector because in this sector the
performance of a person cannot be measured
quantitative.
 Gantt developed graphic methods of
depicting plans and making possible better
managerial control.
 He emphasized the importance of time as
well as cost in planning and controlling work.
This eventually led to the development of
famous Gantt Chart which is in wide use
today and was the forerunner of such modern
techniques as PERT( programme evaluation
and review technique)
 Gantt charts, and their modern equivalent, program evaluation
and review technique (PERT) charts are graphic management
tools, providing visual methods of scheduling both time and
resources for work projects. Henry Gantt management theory
incorporates the record of the work that has been done,
balanced with the work that still needs to be completed.
According to Gantt theory, a Gantt chart is a bar chart showing
the progression of time through the phases of a project. The
charts can be simple or complex, depending on the needs of the
project manager and the team. As you are deciding on how to
manage a project, consider the following:
1. The management theory of Henry Gantt dictates the use of
both resources and time when evaluating projects. Considering
this, how many people will be needed to complete the project?
2. Henry Gantt scientific management is a theory that
incorporates benchmarks in a project as a way to complete the
project efficiently. What are the milestones and their deadlines in
your project?
3. How much time is needed to meet each of the milestone
deadlines?
 He tried to find out ‘one best way of doing’
under given set of realities
 He also tried to look at the problems of
workers from social as well as psychological
point of view
 He contributed towards time and motion
study (therbligs).
 Developed the laws of human motion from
which evolved the principles of motion
economy
 Pioneers in the field of motion studies and
provided the foundation for job simplification,
meaningful work, and incentive wage plans.
 Analyzed each motion of work for wasted
efforts in an attempt to reduce each task to the
smallest amount of expended time and energy.
 Professed: effective training, effective work
methods, improved work environment, positive
psychological perspective.
 Made the connection between standardization
and efficiency
 Believed that time could not be separated from
motion; the two were intertwined.
 Systematically examined how repetitive tasks were
performed
 These repetitive tasks were broken down into
Therbligs, which are systems for analyzing the
motions involved in performing a task. This
consisted of identification of individual motions, as
well as moments of delay in the process, designed
to find unnecessary or inefficient motions and to
utilize or eliminate even split seconds of wasted
time.
 Invented and refined Therbligs roughly between
1908 and 1924. Each Therblig had a mnemonic
symbol and standard color for charting
 A principle refers to a fundamental truth. It
establishes cause and effect relationship between
two or more variables under given situation. They
serve as a guide to thought & actions. Therefore,
management principles are the statements of
fundamental truth based on logic which provides
guidelines for managerial decision making and
actions. These principles are derived: -
 On the basis of observation and analysis i.e.
practical experience of managers.
 By conducting experimental studies.
 Work of all kinds must be divided &
subdivided and allotted to various persons
according to their expertise in a particular
area.
 specialization of jobs.
 Subdivision of work makes it simpler and
results in efficiency.
 It also helps the individual in acquiring speed,
accuracy in his performance.

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 Authority & responsibility are co-existing.
 Authority refers to the right of superiors to get
exactness from their sub-ordinates.
 Responsibility means obligation for the
performance of the job assigned.
 If authority is given to a person, he should also be
made responsible.
 In a same way, if anyone is made responsible for
any job, he should also have concerned authority.
 Authority without responsibility leads to
irresponsible behaviour whereas responsibility
without authority makes the person ineffective.
 There should be a balance between the two.

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 A sub-ordinate should receive orders and be
accountable to one and only one boss at a time.
 A sub-ordinate should not receive instructions from
more than one person because-
# Weakens discipline
# Divides loyalty
# Creates confusion
# Escaping responsibilities
# Duplication of work
 Unity of command provides the enterprise a
disciplined, stable & orderly existence.
 It creates harmonious relationship between superiors
and sub-ordinates.

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 It means one head, one plan for a group of
activities having similar objectives.
 Efforts of all the members of the organization
should be directed towards common goal.
 Without unity of direction, unity of action
cannot be achieved.
 In fact unity of command is not possible
without unity of direction.
 Unity of command: It implies that a sub-
ordinate should receive orders & instructions
from only one boss.

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 The employees should be treated with
kindness & equity if devotion is expected of
them.
 It implies that managers should be fair and
impartial while dealing with the subordinates.
 They should not discriminate with respect to
age, caste, sex, religion, relation etc.
 Equity does not mean total absence of
harshness.

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 This principle is concerned with proper &
systematic arrangement of things and people.
 Arrangement of things is called material order &
placement of people is called social order.
 Material order- There should be safe, appropriate
and specific place for every article and every place
to be effectively used for specific activity and
commodity.
 Social order- Selection and appointment of most
suitable person on the suitable job. There should
be a specific place for every one and everyone
should have a specific place so that they can
easily be contacted whenever need arises.

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 Discipline means sincerity, obedience, respect
of authority & observance of rules and
regulations of the enterprise.
 This principle applies that subordinate should
respect their superiors and obey their order.
 It is an important requisite for smooth
running of the enterprise.
 Discipline is not only required on path of
subordinates but also on the part of
management.

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 Workers should be encouraged to take initiative in
the work assigned to them.
 Fayol advised that management should provide
opportunity to its employees to suggest ideas,
experiences & new method of work.
 It helps in developing an atmosphere of trust and
understanding.
 People then enjoy working in the organization
because it adds to their zeal and energy.
 To suggest improvement in formulation &
implementation of place.

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 Method of remuneration to be paid to the
workers should be fair, reasonable,
satisfactory & rewarding of the efforts.
 Logical & appropriate wage rates and
methods of their payment reduce tension &
differences between workers & management
creates harmonious relationship and pleasing
atmosphere of work.

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 Employees should not be moved frequently
from one job position to another i.e. the
period of service in a job should be fixed.
 Therefore employees should be appointed
after keeping in view principles of
recruitment & selection but once they are
appointed their services should be served.
 Stability of job creates team spirit and a sense
of belongingness among workers which
ultimately increase the quality as well as
quantity of work.

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 The chain of superiors ranging from the
ultimate authority to the lowest.
 Every orders, instructions, messages,
requests, explanation etc. has to pass
through Scalar chain.
 But, for the sake of convenience & urgency,
this path can be cut shirt and this short cut is
known as Gang Plank.
 A Gang Plank is a temporary arrangement
between two different points to facilitate
quick & easy communication

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33
 An organization is much bigger than the
individual it constitutes therefore interest of the
undertaking should prevail in all circumstances.
 In case of conflict, individual must sacrifice for
bigger interests.
 In order to achieve this attitude, it is essential
that - - Employees should be honest & sincere.
# Proper & regular supervision of work.
# Reconciliation of mutual differences and
clashes by mutual agreement.

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 It refers to team spirit i.e. harmony in the work
groups and mutual understanding among the
members.
 To inculcate Espirit De’ Corps following steps
should be undertaken :
# There should be proper co-ordination of work at all levels
# Subordinates should be encouraged to develop informal
relations among themselves.
# Efficient employees should be rewarded and those who are not
up to the mark should be given a chance to improve their
performance.
# Subordinates should be made conscious of that whatever they
are doing is of great importance to the business & society.

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 Centralization means concentration of authority at the top level.
In other words, centralization is a situation in which top
management retains most of the decision making authority.
 Decentralization means disposal of decision making authority to
all the levels of the organization. In other words, sharing
authority downwards is decentralization.
 Degree of centralization or decentralization depends on no. of
factors like size of business, experience of superiors,
dependability & ability of subordinates etc.
 Anything which increases the role of subordinate is
decentralization & anything which decreases it is centralization.
 Fayol suggested that absolute centralization or decentralization is
not feasible. An organization should strike to achieve a lot
between the two.

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 Bureaucracy is an administrative system
designed to accomplish large scale
administrative tasks by systematically co-
ordinating the work of many individuals.
 He has observed three types of power in
organizations: traditional, charismatic and
rational-legal or bureaucratic
 Administrative class: features
- People receive salaries and perquisites based
upon their positions
- Their tenure is determined by the rules and
regulations of the organization
- They do not have any proprietor interest in
the organization
- They are selected for the purpose of
employment based upon their competence.
 Hierarchy: hierarchy is a system of ranking
various positions in descending scale from top to
bottom of the organization. A subordinate will
get authority from his immediate superior.
 Division of work: work of the organization is
divided on the basis of specialization. Division of
labor tries to ensure that no work is left
uncovered.
 Official rules: rules provide the benefits of
stability, continuity, and predictability and each
official knows precisely the outcome of his
behavior in a particular matter.
 Impersonal relationships: official positions
are free from personal involvement, emotions
and sentiments. Thus , decisions are
governed by rational factors rather than
personal factors.

 Official records: the decisions and activities

of the organization are formally recorded and
preserved for future reference.
 Invalidity of bureaucratic assumptions: too much
emphasis upon rules, rigid hierarchy works
against efficiency, total impersonal approach
 Goal displacement: it occurs when resources are
used for the purpose other than for which
organization exists
 Unintended consequences: consequences which
have not been visualised:trained incapacity,
conflicts between professionals and bureaucrats
and between organization and individuals
 Inhuman organization: it’s structure is inhuman
and works like a machine in which there is no
importance for human beings.
1. HUMAN RELATIONS APPROACH
2. BEHAVIOURAL APPROACH
 ELTON MAYO presented human relations approach
 The Hawthrone plant of General Electric company,
Chicago was manufacturing telphone system bell. It
employed about 30,000 employees. Instead of
providing all the facilities in a company people were
dissatisfied and productivity was not up to the mark.
So to investigate the real causes behind this
phenomenon, a team was led by Elton Mayo and tried
to study the relationship between productivity and
physical working conditions. They conducted various
researches in four phases with each phase attempting
to answer the question raised at the previous phase
1. Illumination experiments: illumination
experiments were undertaken to find out varying
levels of illumination( amount of light at the
workplace, a physical factor) affected the
productivity. The hypothesis was that with higher
illumination, productivity would increase. In the
first series of experiments, a group of workers
was chosen and placed in two separate groups.
One group was exposed to varying intensities of
illumination. Since this group was subjected to
experimental changes, it was termed as
experimental group and another group called as
control group continued to work under constant
intensities of illumination.
The reserchers found that as they increased
the illumination in the experimental group ,
both the groups increased production. When
the intensity was decreased, the production
still continued to increase in both the groups.
- When productivity was decreased in
experimental group that decrease was below
normal
- In this illumination experiments it was
analyzed that increase or decrease in
intensity of illumination had no effect on
productivity
2. Relay assembly test room experiments
- They were designed to determine the effect of
changes in various job conditions on group
productivity. For this purpose, researchers set up
a relay assembly test room and two girls were
chosen
- These girls were asked to choose 4 more girls as
their co-workers. The work related to the
assembly of telephone relays. Each relay
consisted of a number of parts which girls
assembled into finished products. The
experiments started with introducing numerous
changes in sequence with duration of each
change ranging from 4-12 weeks. Before
introducing each change, girls were consulted.
 Following were the changes:
- The incentive system was changed so that each girl’s extra
pay was based on the other five rather than output of
larger group
- Two five minutes rest intervals – one in morning and other
in evening were introduced and later on increased to ten
minutes
- The rest period was reduced to 5 minutes but its
frequency was increased. The productivity decreased
slightly and girls complained that frequent rest intervals
affected the rhythm of work
- The number of rest intervals was reduced to two each of
ten minutes but snacks used to be provided which
increased productivity
- Changes in working hours from 5p.m to 4.30p.m and
eliminated Saturday as a working day, productivity again
increased
the girls’ attitude towards work and their work group
changed. They developed a feeling of stability and a sense
of belongingness and relations between superiors and
workers become friendly.
3. Mass interviewing programme:
- During the course of experiments, about 20,000
interviews were conducted to determine the
employees’ attitudes towards company,
supervision, insurance plans, promotion and
wages. Some of the findings were
a) A complaint is not necessarily an objective
recital of facts
b) Objects, persons and events are the carriers of
social meanings. They become related to
employee satisfaction or dissatisfaction only as
the employee comes to view them from
personal situation
c) The personal situation of the worker is
configuration, composed of a personal
preference involving sentiments, desires and
interests of the person and social reference
constituting the person’s social past and his
present interpersonal relations
d) The position or status of a worker in the
company is a reference from which the worker
assigns meaning and value to the events, objects
and features of his environment such as hours of
work etc.
e) The social organization of the company
represents a system of values from which the
worker derives satisfaction and dissatisfaction
f) The social demands of the workers are
influenced by social experience in groups both
inside and outside the work plant
 4. bank wiring observation room
experiments:
- A group of 14 male workers was employed in
the bank wiring room. Hourly wage rate for
the personnel was based upon the average
output and bonus was to be determined on
the basis of average group output. but
productivity did not increase and reasons
were:
A) fear of unemployment
B) fear of raising the standards
C) Protection of slower workers
D) Satisfaction on the part of management
 Social factors in output
 Group influence
 Conflicts
 Leadership
 Supervision
 communication
 Hawthrone researchers did not give sufficient
attention that people bring with them to the
workplace. They did not recognize such
forces as class consciousness, the role of
unions and other forces on attitude of
workers
 Hawthrone was not a typical plant and the
results could not be valid for others
 Hawthrone studies assume the acceptance of
management goals and look on the worker as
someone to be manipulated by management
1.Abraham Maslow
2.Herzberg
3.Mcgregor
4.Likert
 The need hierarchy model of motivation
propounded by Abraham Harold Maslow is
undoubtedly the simplest and most widely
discussed theory of motivation.
 Motivation is one of the most important
factors affecting human behavior . Motivation
not only affects other cognitive factors like
perception and learning but affects the total
performance of an individual IN
organizational setting.
 The behaviour of an individual at a particular
moment is usually determined by his
strongest need .
 Psychologist claim that needs have a certain
priority .
 As the more basic needs are satisfied , an
individual seeks to satisfy the higher needs .
 Self
actualization

Self esteem

social

Security

Physiological
1. Physio logical needs :
 The physiological needs are the top of the
hierarchy because they tend to have the
highest strength until they are reasonably
satisfied .
 Until these needs are satisfied to the degree
needed for the efficient operation of the
body.
 Once the physiological needs are satisfied to a
reasonable level –it is not necessary that they are
fully satisfied and degree of reasonableness is
subjective-other levels of needs become important
.
 Security needs in the organizational context
correlate to such factors like job security, salary
increases, safe working conditions
 After the first two needs are satisfied, social
needs become important in the need
hierarchy .
 Since man is a social being , he has a need to
belong and to be accepted by various groups
.
 In this type of environment workers depend
on informal groups of support of unfulfilled
social needs such as affiliation .
 E.g mutual respect, admiration and trust
 The esteem needs are concerned with self –
respect , self-confidence , a feeling of
personal worth, feeling of being unique and
recognition .
 Satisfaction of these needs produces feelings
of self-confidence , prestige , power and
control .
 Self- actualization is the needs to maximize
one’s potential , whatever it may be .
 This is related with the development of
intrinsic capabilities which lead people to
make efforts.
 Some people may be deprived of their lower level
needs but may strive for self actualisation needs
 There is a lack of direct cause and effect
relationship between need and behaviour. One
particular need may cause different type of
behaviour in different persons
 Needs and satisfaction of needs is a
psychological feeling. Sometimes even a person
may not be aware about his own needs
 Some people say that hierarchy of needs simply
does not exist. all levels needs are present at
given time. An individual motivated by self
actualization needs can not afford to forget his
food
 Fredrick Herzberg developed the “motivation Hygiene
Theory” known as two factor theory
 He and his associates conducted a research based on
the interview of 200 engineers and accountants. The
purpose of research was to find out as to what
variable are perceived to be desirable goals to
achieve and what are the undesirable conditions to
avoid
 During the interview they were asked about
- Job experiences in which they were exceptionally
good and exceptionally bad
- To rate the degree of which their feelings were
influenced- for better or worse by each experience
which they described
 Based upon the answers from these 200 people, he
concluded that there are two factors 1) related to job
satisfaction 2) related to job dissatisfaction
 HYGIENE FACTORS: They don’t motivate people but
prevent dissatisfaction. They don’t produce positive
results but prevent negative results. They don’t
provide satisfaction but eliminate dissatisfaction.
There are 10 maintenance / hygiene factors:
a) Company policy and administration
b) Technical supervision
c) Interpersonal relations with supervisors
d) Interpersonal relations with peers
e) Interpersonal relations with subordinates
f) Salary
g) Job security
h) Personal life
i) Working conditions
j) Status
These are called the dissatisfiers
 MOTIVATIONAL FACTORS: intrinsic in nature and
are related to the job. They have a positive effect
on job satisfaction and result in an increase in
total output. These factors have a positive
influence upon morale, satisfaction, effeciency,
productivity. Herzberg concluded that six factors
motivate the employees:
a) Achievement
b) Advancement
c) Possibility of growth
d) Recognition
e) Work
f) Responsibility
They increase the level of satisfaction and that is
why they are called as satisfiers.
 Theory X and theory Y
 Assumptions of theory X
- Employees have no ambition or desire for
responsibility, instead they prefer to be
directed and controlled
- Employees have no motivation to achieve
organizational objectives
- Employees are only motivated by
physiological and safety needs.
- Employees are lazy and will avoid work unless
forced to do it,
 Assumptions of theory Y
- Employees find work as natural as play if
organizational conditions are appropriate.
People appear averse to work only because
their past experiences have been
unsatisfactory
- Employees can be motivated by high order
needs such as ego, autonomy, self-
actualisation
- Employees seek responsibility since it allows
them to satisfy the high order needs.
 This method of standardized survey was developed by
Likert in 1932 and is widely used even today. In this , an
individual is asked to indicate agreement or disagreement
with job factors. The individual is also required to state
how strongly he or she agrees or disagrees with a
statement. This is normally done on a 5-point scale,
though it is possible to use a 7-point scale also. The
normal practice is to incorporate the various statements in
a questionnaire. The individual is asked to respond to
these statements, indicating the extent of his or her
agreement or disagreement. A value may be given to each
response category in order to produce a numerical score,
and the different scores in each category may be added
together to arrive at a total score. A high overall score can
be viewed as positive, where a low score indicates
negative.
1. Management science: it is also known as
mathematical or quantitative measurement
approach, visualizes management as a logical
entity, the action of which can be expressed in
terms of mathematical symbols, relationships
and measurement data.
- The primary focus is mathematical model.
Through this device managerial and other
problems can be expressed in basic
relationships and where a given goal is sought,
the model can be expressed in terms which
optimize that goal.
 Management is regarded as the problem
solving mechanism with the help of
mathematical tools and techniques
 Management problems can be described in
terms of mathematical symbols and data.
Thus every managerial activity can be
quantified.
 This approach covers decision making ,
system analysis and some aspects of human
behaviour.
 Various mathematical tools like sampling,
linear programming, game theory, time series
analysis have provided more exactness in
solving various managerial problems
 One drawback of this approach is that many
managerial activities are not capable of being
quantified because of involvement of human
beings who are governed by many irrational
factors
 Decision theory approach: this approach looks at the
basic problem of management around decision
making – the selection of a suitable course of action
out of the given alternatives . The major contribution
towards decision making approach is by Herbert
Simon
 Features
- Management is essentially a decision making body
- The members of the organization are decision
makers and problem solvers
- Organization can be treated as a combination of
decision centres
- Quality of decision affects the organizational
effectiveness
- All factors affecting decision making are the subject
matter of study of management
 A decision tree is a decision support tool that
uses a tree-like graph or model of decisions
and their possible consequences, including
chance event outcomes, resource costs, and
utility. It is one way to display an algorithm.
Decision trees are commonly used in
operations research, specifically in decision
analysis, to help identify a strategy most
likely to reach a goal. Another use of decision
trees is as a descriptive means for calculating
conditional probabilities
 Social systems approach was given by Chester Barnard.
 A system is a set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
 According to this approach, an organization is a cultural
system composed of people who work in cooperation. The
major features are:
- Organization is a social system, a system of cultural
relationships
- Relationships exist among the external as well as internal
environment of the organization
- Cooperation among the group members is necessary for
the achievement of organizational objectives
- For effective management, efforts should be made for
establishing harmony between the goals of the
organization and the various groups therein
 Concept of organization: he has defined
formal organization as a system of
consciously coordinated activities of two or
more persons. Three conditions are fulfilled:
- There are persons able to communicate with
each other
- They are willing to contribute to the action
- They attempt to accomplish a common
purpose
 Formal and informal organization:Barnard has
suggested that executives should encourage the
development of informal organization to serve as
a means of communication, to bring cohesion in
the organization and to protect the individual
from dominance.
 Elements of organization: four elements:
- Departmentation
- A system of effective and efficient incentives to
encourage people to contribute to group action.
- A system of power which will lead group
members to accept the decisions of the
executives
- A system of logical decision making
 Authority : he has given “ acceptance theory
of authority” and bottom-up authority. A
subordinate will accept the authority when
four conditions are met: a) he can understand
the communication b) he believes that it is
not inconsistent with the organizational
purpose c) he believes it to be compatible
with his personal interest as a whole d) he is
mentally and physically able to comply with
it.
 Functions of the executive: Barnard has
identified three types of functions which an
executive performs in a formal organization.
These are: 1) maintenance of organizational
communication through the formal
interactions 2) the securing of essential
services from individuals in the organization
so as to achieve organizational purpose. 3)
the formulation and definition of
organizational purpose
 Motivation: he has suggested a number of
non financial techniques for motivating
people- opportunity of power and distinction,
pride of workmanship, participation, mutual
supporting personal attitudes and feeling of
belongingness
 Executive effectiveness: to make executive
effective, requires a high order of responsible
leadership. The executive leadership
demands high calibre, technological
competence, technical and social skills
 Organizational equilibrium: it refers to the
matching of individual efforts and
organizational efforts to satisfy individuals. It
depends on the individuals working in it,
other organizations and society as a whole
the contributions of Barnard show how
he was concerned for the development of the
organization through social systems.
 this means choosing which entities are inside
the system and which are outside - part of
the environment. A system boundary is a
boundary that separates the internal
components of a system from external
entities. These entities can also be thought
and be called as actors. In a use case
diagram, a system boundary is represented
by a rectangle that is drawn to enclosed the
internal components of a system. Any entities
outside the rectangle (i.e. the system
boundary) are hence the actors
1.Open systems refer to systems that interact
with other systems or the outside
environment, whereas closed systems refer to
systems having relatively little interaction
with other systems or the outside
environment.
2. The boundaries of open systems, because
they interact with other systems or
environments, are more flexible than those of
closed systems, which are rigid and largely
impenetrable.
3. Open system assumes environment to be
changing and closed system views
environment to be static
4.Open system assumes more complexity.
Closed-systems assume relatively little
complexity
5. Open system is dependent upon the view
that how organizations are reciprocally
dependent on external environments but
closed system’s main focus is on internal
environment