2024 Educational Admin and Management Notes PDF

KIRINYAGA UNIVERSITY SCHOOL OF BUSINESS AND EDUCATION EDUCATIONAL ADMINISTRATION AND MANAGEMENT NOTES DR NENE NDERITU 2024 1  INTRODUCTION: DEFINATION OF KEY TERMS. (Administration, Leadership and Management) Educationa...

KIRINYAGA UNIVERSITY SCHOOL OF BUSINESS AND EDUCATION EDUCATIONAL ADMINISTRATION AND MANAGEMENT NOTES DR NENE NDERITU 2024 1  INTRODUCTION: DEFINATION OF KEY TERMS. (Administration, Leadership and Management) Educational Administration Meaning: Meaning of Administration Administration is one of the oldest of all human endeavors. Consider the ancient Egyptian civilization. More than 2000 years ago, the Egyptians organized vast and complex enterprises that required planning, detailed coordination and skilled leadership. The construction of the famous pyramids, which are still a wonder to behold many centuries later, required skillful administration. Visualize the enormous amount of resources brought together for the purpose of constructing the pyramids; without proper administration the task would never have been completed. Around this same time, the Chinese had highly systematic, large-scale systems that used many of the management concepts used today. In the late 16th Century an elite corps of scholars, who were chosen through competitive examination, rationally administered the Chinese Civil Service. The Catholic Church, at one time hundreds of years ago, had a far flung network of thousands of clergy who were centrally administered. The Sumerian priests, who lived during the Sumerian civilization around 3,000 BC, were in charge of the formal tax system. In order to better control the society's resources, the priests developed one of the first reporting and auditing procedures. Therefore, even before administration became established as a discipline in the 20th century, it had already been practiced as an art for hundreds of years. Administration as an art is much older than administration as a science. The earliest forms of administration accompanied man's first attempts at organized cooperation, but the rudiments of modern organizational management seem to have evolved from early military structures. Before we discuss educational administration, let us first define administration in the more general sense. Administration is the organizing and 2 carrying out of a programme of activities and functions to achieve desired and specified objectives. Owens (1998) defines administration simply as the art of getting things done through others in an organization. Administration involves getting things done to accomplish defined objectives. The science of administration is therefore the system of knowledge whereby man may understand relationships, predict results and influence outcomes, in any situation where men are organized at work together for a common purpose. The administrative process is accomplished through the behaviour of administrators in interaction with others. Administration is an important activity because it maintains an organization and directs the activities of staff in their relations towards the accomplishment of the organization's purposes. No group movement endures without administration to guide its operations. NOTE In administration there must be common tasks/mutual problems which require administration in the enterprise e.g. in a school, it would be the provision of services to students (teaching, accounting, cooking for boarders, etc.). There also must exist some specified objectives/desired goals. In schools, it would be to mould the students into responsible, self-reliant citizens 1.3 Educational Administration Having defined administration in general, we can now apply it to our area of concern-education. The question we are seeking to answer therefore, is, how administration applies to the education setting. Educational administration is an eclectic field. It sources its ideas from a wide range of disciplines and fields. Business administration, church administration, military administration etc. and educational administration have many elements in common. Studies in one type of administration can be used to improve administrative behaviour in other areas. There is always much to be learned by a transfer of knowledge from one field of administration to another. Whatever the setting, administration deals with or is concerned with mobilizing the efforts of people towards the achievement of a common goal. However, the wholesale incorporation of administrative practice from one field to another could be misleading. To illustrate this point, in the manufacturing sector, the main concern is 3  the production of goods and this is driven purely by the profit motive. Education on the other hand, promotes the enrichment of living. To accomplish the objectives in these two environments will definitely call for different strategies. Education administration has as its central purpose, the enhancement of teaching and learning. All the activities of administrators, be they involving the public, the ministry of education or the staff at school, should ultimately contribute to this end. Kochhar (1993) defines educational administration as a comprehensive effort to direct, guide and integrate associated human strivings which are focused towards achievement of specific educational objectives. It deals with the do-how of educational principles and objectives. Educational administration deals with educational institutions - right from the schools and colleges to the ministry. It is concerned with both human and material resources. The integration of human elements (students, teachers, parents, and other staff) and the material resources (money, buildings, equipment) into a whole constitutes educational administration. As an educational administrator you must bear in mind that, fundamentally, the purpose of educational administration is to create such conditions that will promote the goal of education. An efficient and sound system of educational administration is required to manage the students, thousands of teaching and other staff, as well as the huge sums of money spent on education. School administration must facilitate education; it exists for the pupil and its efficiency must be measured by the extent to which it contributes to teaching and learning. The school is the basic unit in the educational administration hierarchy. Educational Administration is regarded as the process of integrating the appropriate human and material resources that are made available and made effective for achieving the purposes of a programme of an educational institution. The term “Administration” doesn’t refer to any single process or act. It is like a broad umbrella encompassing a number of processes such as: planning, organizing, directing, coordinating, controlling and evaluating the performance. The same situation occurs in 4 the field of educational administration. The concept of educational administration is applicable in case of an educational organisation which has certain purposes or goals to fulfill. In order to achieve these purposes or goals, the head of the educational organisation plans carefully various programmes and activities. Here the educational organisation may be a school, college or university. The head of the school/college/university organizes these programmes and activities with co-operation from other teachers, parents and students. He/She motivates them and co- ordinates the efforts of teachers as well as directs and exercises control over them. He/She evaluates their performance and progress in achieving the purposes of the programme. He provides feedback to them and brings modification, if required in the plans and programmes of the school or college or university. So the totality of these processes which are directed towards realizing or achieving the purposes or goals of the school/college/university is called educational administration. Nature of Educational Administration: The Educational Administration has the following nature: 1. Educational administration doesn’t refer to any single process rather different processes or aspects constitute administration. These are planning, organizing, directing, Coordinating and evaluation. 2. Educational administration is a non-profit making task. 3. Educational administration is primarily a social enterprise as it is more concerned with human resources than with material resources. 4. Educational administration is more an art than a science. The reason is that human relationship prevailed here can’t be maintained by any set of formulae. 5. Educational administration is similar to general administration in many ways, but it is also dissimilar to general administration in many more ways. 6. Educational administration is a complex affair. 5 Objectives of Educational Administration: As we know the very fact that educational administration needs integration and co- ordination of all the physical and human resources and educational elements. Besides this it requires a great efficiency with it based on human sympathy, understanding, knowledge and skill. The physical resources mainly contribute building equipment’s and instructional materials. The human resources include pupils, teachers, supervisors, administrators and parents. The additional elements comprise the various aspects of educational theory and practice including philosophy of education, objectives of education, curriculum, method of teaching, discipline, role of the teacher, rules and regulations etc. These elements are “parts, made into whole” and are components brought into harmonious relationship. So the purpose of doing such vital task is to fulfill different purposes which are known as the objectives of educational administration. These are: 1. To provide proper education to students: This objective seeks to mention the fact that good education doesn’t mean education at a very high cost as is practiced in modern public schools. Rather it means the right type of education from the right type of teachers within reasonable cost. This objective also implies quantitative expansion and qualitative improvement of education. 2. To Ensure Adequate Utilization Of All Resources: For adequate realization of the various purposes of educational programme there is the need of ensuring adequate utilization of all available resources-human, material and financial. 3. To Ensure Professional Ethics And Professional Development Among Teachers: As teachers are the senior and mature human elements to accelerate the programme in time their role is highly felt in this regard. They are to be encouraged and given the facility to devise and try out innovative ideas on instruction and to participate in service 6 education programmes. In this context, it can be visualized that educational administration should aim at developing a desire for hard work, dedication and commitment for their job among teachers. 4. To organize educational programmes for acquainting students with the art of democratic living and giving them excellent training in democratic citizenship. 5. To mobilize the community: Like general administration, educational administration seeks to maintain and improve the relations with the community. For this it should seek community support and co- operation for quantitative expansion, qualitative improvements, smooth and fair examination in the educational system. 6. To organize co-curricular activities effectively for developing talents of students and work efficiency of educational teachers. 7. To get the work done: The most important objective of administration is to get the work done effectively, efficiently and with satisfaction to the individuals and benefits to the society. 8. To prepare students for taking their places in various vocations and avenues of life. 9. To train the students in developing scientific attitude and objective outlook among them towards all aspects and activities of life. 10. To ensure qualitative improvement of education: Good education can be provided to students by bringing qualitative improvement in instruction. Regular supervision of teaching and guidance of teachers help to ensure quality teaching in schools. Scope of Educational Administration: 7 1. The educational administration encompasses all the levels of education in its jurisdiction. These are: a. Pre-primary or pre-school Education. b. Elementary or primary Education. c. Secondary Education. d. Higher Secondary or Post-secondary Education and, e. Higher or tertiary Education. It is educational administration that determines what should be the nature and system of administration for all the above levels of education. 2. It covers all forms of education such as: a. Formal Education b. Non-formal Education and Adult Education c. General Education d. Vocational Education Special Education f. Teacher Education g. Integrated Education and h. Technical and professional Education including Engineering, Medical, MBA, and Computer Education. Here the educational administration sets the systems of administration in accordance to the objectives and nature of all the levels of education. 3. It includes all types and strategies of management that encompasses the following: Democratic Administration 8 b. Autocratic Administration c. Nominal Administration d. Real Administration 4. Educational administration covers the following aspects relating to management in its jurisdiction: a. Planning Organizing c. Directing d. Coordinating e. Supervising f. Controlling and g. Evaluating 5. Educational Administration takes place at various levels such as: a. Central level b. State level c. District level d. Block level and e. Institutional level Out of these above levels, educational administration has its ground reality and importance at the institutional level. Because it is the practical ground to test the significance of educational administration in practice. For this, the following activities and programmes come under the scope of educational administration at the institutional level: 9 a. Deciding the purposes of the institution or school. b. Planning for academic or curricular and co-curricular activities. c. Preparing the time table and the time schedules for various activities. d. Assigning duties and responsibilities to the staff members. e. Organizing curricular and co-curricular programmes. f. Directing and motivating the staff of the institution. g. Coordinating by efforts of people to achieve the purpose. h. Exercising control over the staff. i. Conducting periodical reviews about the progress, achievements and failures of the institution. j. Taking measures for staff development. k. Maintaining order and discipline. l. Management of materials. m. Management of finance. n. Maintaining records and registers up to date. o. Maintaining human relationships. p. Supervision of the work of teachers and other employees. q. Giving feedback to the teachers performing well and taking remedial measures for teachers not performing well. Basic Functions of Educational Administration: The prime concern of administration of any programme is proper accomplishment of the pre-fixed purposes and goals. This becomes possible through adequate utilization of both 10 human and material resources with the purpose of bringing qualitative improvement of the programme. For this there is the necessity of different aspects of management which are accepted as the functions of administration. In order to simplify it we can be said here that proper management of a programme needs various aspects that are regarded as the functions of administration. These are: a. Planning b. Organizing c. Directing d. Coordinating e. Supervising f. Controlling and g. Evaluating In educational administration, the educational authority as the administrative authority exercises its functions in relation to the aspects mentioned above. However, it is essential to say that the functions of educational administration can be studied under two major perspectives. One is in general perspective and the other is in contextual perspective. Let us discuss these functions one by one. Features of Management Management is an activity concerned with guiding human and physical resources such that organizational goals can be achieved. Nature of management can be highlighted as: 1. Management is Goal-Oriented: The success of any management activity is assessed by its achievement of the predetermined goals or objective. Management is a purposeful activity. It is a tool which helps use of human & physical resources to fulfill the pre- determined goals. For example, the goal of an enterprise is maximum consumer 11 satisfaction by producing quality goods and at reasonable prices. This can be achieved by employing efficient persons and making better use of scarce resources. 2. Management integrates Human, Physical and Financial Resources: In an organization, human beings work with non-human resources like machines. Materials, financial assets, buildings etc. Management integrates human efforts to those resources. It brings harmony among the human, physical and financial resources. 3. Management is Continuous: Management is an ongoing process. It involves continuous handling of problems and issues. It is concerned with identifying the problem and taking appropriate steps to solve it. E.g. the target of a company is maximum production. For achieving this target various policies have to be framed but this is not the end. Marketing and Advertising is also to be done. For this policies have to be again framed. Hence this is an ongoing process. 4. Management is all Pervasive: Management is required in all types of organizations whether it is political, social, cultural or business because it helps and directs various efforts towards a definite purpose. Thus clubs, hospitals, political parties, colleges, hospitals, business firms all require management. Whenever more than one person is engaged in working for a common goal, management is necessary. Whether it is a small business firm which may be engaged in trading or a large firm like Tata Iron & Steel, management is required everywhere irrespective of size or type of activity. 5. Management is a Group Activity: Management is very much less concerned with individual’s efforts. It is more concerned with groups. It involves the use of group effort to achieve predetermined goal of management of ABC & Co. is good refers to a group of persons managing the enterprise. Levels of Management The term “Levels of Management’ refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and work force increases and vice versa. The level of 12 management determines a chain of command, the amount of authority & status enjoyed by any managerial position. The levels of management can be classified in three broad categories: 1. Top level / Administrative level 2. Middle level / Executory 3. Low level / Supervisory / Operative / First-line managers Managers at all these levels perform different functions. The role of managers at all the three levels is discussed below: 1. Top Level of Management It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions. The role of the top management can be summarized as follows - a. Top management lays down the objectives and broad policies of the enterprise. b. It issues necessary instructions for preparation of department budgets, procedures, schedules etc. c. It prepares strategic plans & policies for the enterprise. d. It appoints the executive for middle level i.e. departmental managers. e. It controls & coordinates the activities of all the departments. f. It is also responsible for maintaining a contact with the outside world. g. It provides guidance and direction. h. The top management is also responsible towards the shareholders for the performance of the enterprise. 13 2. Middle Level of Management The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as - a. They execute the plans of the organization in accordance with the policies and directives of the top management. b. They make plans for the sub-units of the organization. c. They participate in employment & training of lower level management. d. They interpret and explain policies from top level management to lower level. e. They are responsible for coordinating the activities within the division or department. f. It also sends important reports and other important data to top level management. g. They evaluate performance of junior managers. h. They are also responsible for inspiring lower level managers towards better performance. 3. Lower Level of Management Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”. In other words, they are concerned with direction and controlling function of management. Their activities include - 14 a. Assigning of jobs and tasks to various workers. b. They guide and instruct workers for day to day activities. c. They are responsible for the quality as well as quantity of production. d. They are also entrusted with the responsibility of maintaining good relation in the organization. e. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers. f. They help to solve the grievances of the workers. g. They supervise & guide the sub-ordinates. h. They are responsible for providing training to the workers. i. They arrange necessary materials, machines, tools etc for getting the things done. j. They prepare periodical reports about the performance of the workers. k. They ensure discipline in the enterprise. l. They motivate workers. m. They are the image builders of the enterprise because they are in direct contact with the workers. Learn management concepts & skills rapidly with easy to understand, richly illustrated self-paced learning modules & downloadable power point presentations. Importance of Management It helps in Achieving Group Goals - It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of organization clearly there would be no wastage of time, money and effort. 15 Management converts disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals. Optimum Utilization of Resources - Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional and these services leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing its maximum there is no under employment of any resources. Reduces Costs - It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction. Establishes Sound Organization - No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Management fills up various positions with right persons, having right skills, training and qualification. All jobs should be cleared to everyone. Establishes Equilibrium - It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and survival of organization. 16  Essentials for Prosperity of Society - Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products and researches beneficial for society. DIFFERENCES BETWEEN EDUCATIONAL ADMINISTRATION AND EDUCATIONAL MANAGEMENT Educational Administration Educational Management Educational administration is an agency Educational management of an which lays down the aims, policies and institution or an organization is guidelines organizations or institutions. concerned with the objectives, targets and goals laid down by the Board of Directors or the Board of Governors Educational administration is concerned Educational management is concerned with rules and regulations. with the achievement of results. Educational administration, because of its Educational management is emphasis on rules is generally rigid and progressive, imaginative and innovative traditional. because of its emphasis on results. In educational administration, results are In educational management, results are not easily measurable. easily measurable. Educational administration is concerned Educational management is concerned with policy making. It determines the goals with implementation of the policy. Itis or targets to be achieved. not directly concerned with goals or target fixation. 17 Educational administration is not directly Implementation of policies framed by concerned with the implementation of administration is the main task of policies. management. Educational administrations functions are Educational management’s functions legislative and largely determinative. are executive and largely governing. Educational administration is not actively Educational management is mainly concerned with the direction of human concerned with direction of human efforts in the execution of the plan or policy efforts. Educational administrations main function Educational management’s main is planning and organizing. function is motivation and controlling. Educational administration relates to Educational management relates to aspects or top level management. Personal middle or lower level management of top level like the owners or the board of below the top level like general manager directors. or managing director. Educational administration coordinates Educational management uses production and distribution. It frames the organizations for the achievement of the organizational structural and exercises targets fixed by administrators. control over enterprise. Development of Management and Administration Management has developed or evolved as a result of man’s desire to have ‘things’ done in the best of ways. These ‘things’ form work which is the essence of man’s existence. Although work has been central to man since time immemorial, its organized study did not begin until towards the end of the nineteenth century. The study started in an industrial setting. Classical Scientific Management Movement (Classical theory) what is a theory? A theory is a rational explanation of how something is put together, of how it works, and why it works that way. A Theory is a set of assumptions or generalizations supported by related 18  philosophical and scientific principles. Theory provides a mode of analysis of practical events. Theory guides practical decision-making. The Industrial Revolution gave rise to the need for a more sophisticated approach to administration. Due to the development of new manufacturing technologies, great quantities of raw materials and large numbers of workers were concentrated in the emerging factories. It became increasingly difficult to coordinate all these resources into a smoothly running process; hence people began to pay more attention to the problems of management. Although several people made considerable contribution to the early development of management thought, three prominent personalities are taken to represent the classical movement. These are Fredrick W. Taylor (scientific management), Henry Fayol (administrative management), and Max Weber (Bureaucracy). Others who contributed to management theory include: Elton Mayo and Mary Parker Follet (Human relations) and Chester Barnard, Abraham Maslow, Fredrick Herzberg and MacGregor (Behavioural Science movement).NB: There are three major Management theories1. Classical Scientific Theories (a) Scientific management theory:-Frederick Taylor (1856-1917) (b) Administrative Management Theory:- Henri Fayol (1841-1925) (c) Bureaucracy:- Max Weber (1868- 1920)2. Human Relations Theory by Elton Mayo ((1880-1949) was an Australian born psychologist and industrial researcher) and Mary Parker Follet (September 3, 1868 – December 18, 1933) was an American Social worker and Management consultant)3. Behavioural Science Movement-Chester Barnard (1886-1961)-American business executive, public administrator-pioneer of organizational behavior) MANAGEMENT AND LEADERSHIP THEORIES People have been managing work for hundreds of years, and we can trace formal management ideas to the 1700s. However, the most significant developments in management theory emerged in the 20th century. We owe much of our understanding of managerial practices to the many theorists of this period, who tried to understand how best to conduct business. 19 One of the earliest of these theorists was Frederick Winslow Taylor. He started the Scientific Management movement, and he and his associates were the first people to study the work process scientifically. They studied how work was performed, and they looked at how this affected worker productivity. Others include Mary Parker Follet, Lilian Eveline Moller Gilbreth, Henri Fayol, Max Weber, Douglas McGregor, Abraham Maslow among others. Frederick Taylor and Scientific Management Understanding Taylorism and Early Management Theory Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was an American mechanical engineer. He was widely known for his methods to improve industrial efficiency. He is widely known as the father of Scientific Management. Frederick W. Taylor, in full Frederick Winslow Taylor, (born March 20, 1856, in Philadelphia, Pennsylvania, U.S.A—died on March 21, 1915, Philadelphia) at 59 years, American inventor and engineer who is known as the father of scientific management. His system of industrial management, known as Taylorism, greatly influenced the development of industrial engineering and production management throughout the world. Taylor was the son of a lawyer. He entered Phillips Exeter Academy in New Hampshire in 1872, where he led his class scholastically. After passing the entrance examination for Harvard University, he was forced to abandon plans for matriculation, as his eyesight had deteriorated from night study. With sight restored in 1875, he was apprenticed to learn the trades of patternmaker and machinist at the Enterprise Hydraulic Works in Philadelphia. Three years later he went to the Midvale Steel Company, where, starting as a machine shop laborer, he became successively shop clerk, machinist, gang boss, foreman, maintenance foreman, head of the drawing office, and chief engineer Taylor's philosophy focused on the belief that making people work as hard as they could was not as efficient as optimizing the way the work was done. In 1909, Taylor published "The Principles of Scientific Management." In this, he proposed that by optimizing and simplifying jobs, productivity would increase. He also advanced the idea that workers and managers needed to cooperate. This was very different from the way work was 20 typically done in businesses beforehand. A factory manager at that time had very little contact with the workers, and he left them on their own to produce the necessary product. There was no standardization, and a worker's main motivation was often continued employment, so there was no incentive to work as quickly or as efficiently as possible. Taylor believed that all workers were motivated by money, so he promoted the idea of "a fair day's pay for a fair day's work." In other words, if a worker didn't achieve enough in a day, he didn't deserve to be paid as much as another highly productive worker. With a background in mechanical engineering, Taylor was very interested in efficiency. While advancing his career at a U.S. steel manufacturer, he designed workplace experiments to determine optimal performance levels. In one, he experimented with shovel design until he had a design that would allow workers to shovel for several hours straight. With bricklayers, he experimented with the various motions required and developed an efficient way to lay bricks. And he applied the scientific method to study the optimal way to do any type of workplace task. As such, he found that by calculating the time needed for the various elements of a task, he could develop the "best" way to complete that task. These "time and motion" studies also led Taylor to conclude that certain people could work more efficiently than others. These were the people whom managers should seek to hire where possible. Therefore, selecting the right people for the job is another important part of workplace efficiency. Taking what he learned from these workplace experiments, Taylor developed four principles of scientific management. These principles are also known simply as "Taylorism". Four Principles of Scientific Management Taylor's four principles are as follows: 1. Replace working by "rule of thumb," or simple habit and common sense, and instead use the scientific method to study work and determine the most efficient way to perform specific tasks. 2. Rather than simply assign workers to just any job, match workers to their jobs based on capability and motivation, and train them to work at maximum efficiency. 21 3. Monitor worker performance, and provide instructions and supervision to ensure that they're using the most efficient ways of working. 4. Allocate the work between managers and workers so that the managers spend their time planning and training, allowing the workers to perform their tasks efficiently. In 1881, at age 25, he introduced time study at the Midvale plant. The profession of time study was founded on the success of this project, which also formed the basis of Taylor’s subsequent theories of management science. Essentially, Taylor suggested that production efficiency in a shop or factory could be greatly enhanced by close observation of individual workers and elimination of wasted time and motion in their operation. Though the Taylor system provoked resentment and opposition from labor when carried to extremes, its value in rationalizing production was indisputable and its impact on the development of mass production techniques was immense. Studying at night, Taylor earned a degree in mechanical engineering from Stevens Institute of Technology in 1883. The following year he became chief engineer at Midvale and completed the design and construction of a novel machine shop. Taylor might have enjoyed a brilliant full-time career as an inventor—he had more than 40 patents to his credit—but his interest in what was soon called scientific management led him to resign from his post at Midvale and to become general manager of the Manufacturing Investment Company (1890–93), which in turn led him to become a consulting engineer in management,” a profession that Taylor himself developed. He served a long list of prominent firms ending with the Bethlehem Steel Corporation; while at Bethlehem he developed high-speed steel and performed notable experiments in shoveling and pig-iron handling. Taylor retired at age 45 but continued to devote time and money to promoting the principles of scientific management through lectures at universities and professional societies. From 1904 to 1914, with his wife and three adopted children, Taylor lived in Philadelphia. The American Society of Mechanical Engineers elected him president in 1906, the same year that he was awarded an honorary doctor of science degree by the University of Pennsylvania. Many of his influential publications first appeared in the Transactions of that society—namely, “Notes on Belting” (1894), 22 “A Piece-Rate System” (1895), “Shop Management” (1903), and “On the Art of Cutting Metals” (1906). The Principles of Scientific Management was published commercially in 1911. Taylor’s fame increased after his testimony in 1912 before a special committee of the U.S. House of Representatives to investigate his own and other systems of shop management. Considering himself a reformer, he continued expounding the ideals and principles of his system of management until his death. According to Drucker, “The cost of scientific management is the organized study of work, the analysis of work into simplest element & systematic management of worker’s performance of each element”. 1. Development of Science for each part of men’s job (replacement of rule of thumb) a. This principle suggests that work assigned to any employee should be observed, analyzed with respect to each and every element and part and time involved in it. b. This means replacement of odd rule of thumb by the use of method of enquiry, investigation, data collection, analysis and framing of rules. c. Under scientific management, decisions are made on the basis of facts and by the application of scientific decisions. 2. Scientific Selection, Training & Development of Workers a. There should be scientifically designed procedure for the selection of workers. b. Physical, mental & other requirement should be specified for each and every job. c. Workers should be selected & trained to make them fit for the job. d. The management has to provide opportunities for development of workers having better capabilities. e. According to Taylor efforts should be made to develop each employee to his greatest level and efficiency & prosperity. 23 3. Co-operation between Management & workers or Harmony not discord a. Taylor believed in co-operation and not individualism. b. It is only through co-operation that the goals of the enterprise can be achieved efficiently. c. There should be no conflict between managers & workers. d. Taylor believed that interest of employer & employees should be fully harmonized so as to secure mutually understanding relations between them. 4. Division of Responsibility a. This principle determines the concrete nature of roles to be played by different level of managers & workers. b. The management should assume the responsibility of planning the work whereas workers should be concerned with execution of task. c. Thus planning is to be separated from execution. 5. Mental Revolution a. The workers and managers should have a complete change of outlook towards their mutual relation and work effort. b. It requires that management should create suitable working condition and solve all problems scientifically. c. Similarly workers should attend their jobs with utmost attention, devotion and carefulness. They should not waste the resources of enterprise. d. Handsome remuneration should be provided to workers to boost up their moral. e. It will create a sense of belongingness among worker. f. They will be disciplined, loyal and sincere in fulfilling the task assigned to them. 24 g. There will be more production and economic growth at a faster rate. 6. Maximum Prosperity for Employer & Employees a. The aim of scientific management is to see maximum prosperity for employer and employees. b. It is important only when there is opportunity for each worker to attain his highest efficiency. c. Maximum output & optimum utilization of resources will bring higher profits for the employer & better wages for the workers. d. There should be maximum output in place of restricted output. e. Both managers & workers should be paid handsomely. Techniques of Scientific Management Time Study a. It is a technique which enables the manager to ascertain standard time taken for performing a specified job. b. Every job or every part of it is studied in detail. c. This technique is based on the study of an average worker having reasonable skill and ability. d. Average worker is selected and assigned the job and then with the help of a stop watch, time is ascertained for performing that particular job. e. Taylor maintained that Fair day’s work should be determined through observations, experiment and analysis by keeping in view an average worker. Standard Time × Working Hours = Fair Day’s Work f. Motion Study 25 a. In this study, movement of body and limbs required to perform a job are closely observed. b. In other words, it refers to the study of movement of an operator on machine involved in a particular task. c. The purpose of motion study is to eliminate useless motions and determine the bet way of doing the job. d. By undertaking motion study an attempt is made to know whether some elements of a job can be eliminated combined or their sequence can be changed to achieve necessary rhythm. e. Motion study increases the efficiency and productivity of workers by cutting down all wasteful motions. g. Functional Foremanship a. Taylor advocated functional foremanship for achieving ultimate specification. b. This technique was developed to improve the quality of work as single supervisor may not be an expert in all the aspects of the work. c. Therefore workers are to be supervised by specialist foreman. d. The scheme of functional foremanship is an extension of principle pf specialization at the supervisory level. e. Taylor advocated appointment of 8 foramen, 4 at the planning level & other 4 at implementation level. f. The names & function of these specialist foremen are: - Instruction card clerk concerned with tagging down of instructions according to which workers are required to perform their job 26  Time & cost clerk is concerned with setting a time table for doing a job & specifying the material and labor cost involved in it. Route clerk determines the route through which raw materials has to be passed. Shop Disciplinarians are concerned with making rules and regulations to ensure discipline in the organization. Gang boss makes the arrangement of workers, machines, tools, workers etc. Speed boss concerned with maintaining the speed and to remove delays in the production process. Repair boss concerned with maintenance of machine, tools and equipments. Inspector is concerned with maintaining the quality of product. h. Standardization a. It implies the physical attitude of products should be such that it meets the requirements & needs of customers. b. Taylor advocated that tools & equipment as well as working conditions should be standardized to achieve standard output from workers. c. Standardization is a means of achieving economics of production. d. It seems to ensure - The line of product is restricted to predetermined type, form, design, size, weight, quality. Etc There is manufacture of identical parts and components. Quality & standards have been maintained. Standard of performance are established for workers at all levels. i. Differential Piece Wage Plan 27 a. This tech of wage payment is based on efficiency of worker. b. The efficient workers are paid more wages than inefficient one. c. On the other hand, those workers who produce less than standard no. of pieces are paid wages at lower rate than prevailing rate i.e. worker is penalized for his inefficiency. d. This system is a source of incentive to workers who improving their efficiency in order to get more wages. e. It also encourages inefficient workers to improve their performance and achieve their standards. f. It leads to mass production which minimizes cost and maximizes profits. j. Other Techniques a. Various other techniques have been developed to create ordeal relationship between management and workers and also to create better understanding on part of works. b. Those includes use of instruction cards, strict rules & regulations, graphs, slides, charts etc, so as to increase efficiency of workers. Criticism of Scientific Management Although it is accepted that the scientific management enables the management to put resources to its best possible use and manner, yet it has not been spared of severe criticism. Workers Viewpoint 1. Unemployment - Workers feel that management reduces employment opportunities from them through replacement of men by machines and by increasing human productivity less workers are needed to do work leading to chucking out from their jobs. 2. Exploitation - Workers feel they are exploited as they are not given due share in increasing profits which is due to their increased productivity. Wages do not rise in 28 proportion as rise in production. Wage payment creates uncertainty & insecurity (beyond a standard output, there is no increase in wage rate). 3. Monotony - Due to excessive specialization the workers are not able to take initiative on their own. Their status is reduced to being mere cogs in wheel. Jobs become dull. Workers loose interest in jobs and derive little pleasure from work. 4. Weakening of Trade Union - To everything is fixed & predetermined by management. So it leaves no room for trade unions to bargain as everything is standardized, standard output, standard working conditions, standard time etc. This further weakens trade unions, creates a rift between efficient & in efficient workers according to their wages. 5. Over speeding - the scientific management lays standard output, time so they have to rush up and finish the work in time. These have adverse effect on health of workers. The workers speed up to that standard output, so scientific management drives the workers to rush towards output and finish work in standard time. Employer’s Viewpoint 1. Expensive - Scientific management is a costly system and a huge investment is required in establishment of planning dept., standardization, work study, training of workers. It may be beyond reach of small firms. Heavy food investment leads to increase in overhead costs. 2. Time Consuming - Scientific management requires mental revision and complete reorganizing of organization. A lot of time is required for work, study, standardization & specialization. During this overhauling of organization, the work suffers. 3. Deterioration of Quality Frederick Taylor and Scientific Management Frederick Winslow Taylor (1856-1915) was an American inventor and engineer that applied his engineering and scientific knowledge to management and developed a theory 29 called scientific management theory. His two most important books on his theory are Shop Management (1903) and The Principles of Scientific Management (1911). Frederick Taylor's scientific management theory can be seen in nearly all modern manufacturing firms and many other types of businesses. His imprint can be found in production planning, production control, process design, quality control, cost accounting, and even ergonomics. If you understand the principles of scientific management, you will be able to understand how manufacturers produce their goods and manage their employees. You will also understand the importance of quantitative analysis, or the analysis of data and numbers to improve production effectiveness and efficiency. ADMINISTRATIVE MANAGEMENT THEORY Henri Fayol (29 July 1841 – 19 November 1925) was a French mining engineer, mining executive, author and director of mines who developed a general theory of business administration that is often called Fayolism. He and his colleagues developed this theory independently of scientific management but roughly contemporaneously. Like his contemporary Frederick Winslow Taylor, he is widely acknowledged as a founder of modern management methods. Fayol was born in 1841 in a suburb of Constantinople (now Istanbul) in Turkey. His father, a military engineer, was appointed superintendent of works to build Galata Bridge, across the Golden Horn. The family returned to France in 1847, where Fayol graduated from the mining academy "École Nationale Supérieure des Mines" in Saint-Étienne in 1860. That same year, aged 19, Fayol started working at the mining company named "Compagnie de Commentry-Fourchambault-Decazeville" in Commentry, in the Auvergne region. He was hired by Stéphane Mony, who had decided to hire the best engineers from the Saint-Étienne Mining School, and Fayol joined the firm as an engineer and trainee manager. Mony made Fayol his protégé, and Fayol succeeded him as manager of the Commentary mine and eventually as managing director of Commentry-Fourchambault and Decazeville. 30 During his time at the mine, he studied the causes of underground fires, how to prevent them, how to fight them, how to reclaim mining areas that had been burned, and developed a knowledge of the structure of the basin. In 1888 he was promoted to managing director. During his time as director, he made changes to improve the working situations in the mines, such as allowing employees to work in teams and changing the division of labor. Later, more mines were added to his duties. In 1900 Fayol became a member of the Comité Central des Houillères de France, a member of the board of the Comité des forges, and administrator of the Société de Commentry, Fourchambault et Decazeville. Eventually, the board decided to abandon its iron and steel business and the coal mines. They chose Henri Fayol to oversee this as the new managing director. Upon receiving the position, Fayol presented the board with a plan to restore the firm. The board accepted the proposal. At that time, the company was at the verge of bankruptcy. With rich and broad administrative experience, Fayol contributed a lot in turning around the company's fortunes. When he retired in 1918, the company was financially strong and one of the largest industrial combines in Europe. Based largely on his own management experience, he developed his concept of administration. In 1916 he promoted his ideas in Administration Industrielle et Générale, at about the same time as Frederick Winslow Taylor published his Principles of Scientific Management. After his retirement, he became the Director of the Centre of Administrative Studies in Paris. Fayol's work became more generally known with the 1949 publication of "General and Industrial Administration", the English translation of the 1916 work "Administration Industrielle et générale". In this work, Fayol presented his theory of management, known as Fayolism. Before that Fayol had written several articles on mining engineering, starting in the 1870s, and some preliminary papers on administration Fayol's work became more generally known with the 1949 publication of "General and Industrial Administration", the English translation of the 1916 work "Administration Industrielle et générale". In this work, Fayol presented his theory of management, known as Fayolism. Before that 31 Fayol had written several articles on mining engineering, starting in the 1870s, and some preliminary papers on administration Functions of management In his original work, Administration industrielle et générale; prévoyance, organization, directing, coordination, control, five primary functions were identified: 1. Planning 2. Organizing 3. Commanding 4. Co-ordinating 5. Controlling 6. Forecasting The control function, from the French contrôler, is used in the sense that a manager must receive feedback about a process to make necessary adjustments and must analyze the deviations. Lately, scholars of management combined the directing and coordinating functions into one leading function. Planning It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre- determined goals. According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre- determined goals. Planning is necessary to ensure proper utilization of human & non- 32 human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc. Organizing It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”. To organize a business involves determining & providing human and non-human resources to the organizational structure. Organizing as a process involves: Identification of activities. Classification of grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. Coordinating authority and responsibility relationships. Staffing It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in recent years due to the advancement of technology, the increase in the size of business, the complexity of human behavior, etc. The main purpose of staffing is to put the right man on the right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz & O’Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure”. Staffing involves: Manpower Planning (estimating manpower in terms of searching, choosing the person, and giving the right place). 33  Recruitment, Selection & Placement. Training & Development. Remuneration. Performance Appraisal. Promotions & Transfer. Directing It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has the following elements: Supervision Motivation Leadership Communication Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers. Motivation- means inspiring, stimulating, or encouraging the subordinates with zeal to work. Positive, negative, monetary, and non-monetary incentives may be used for this purpose. Leadership- may be defined as a process by which a manager guides and influences the work of subordinates in the desired direction. 34 Communication- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding. Controlling It implies measurement of accomplishment against the standards and correction of deviation if any to ensure the achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they occur. According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. According to Koontz & O’Donell, “Controlling is the measurement & correction of performance activities of subordinates to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”. Therefore controlling has the following steps: a. Establishment of standard performance. b. Measurement of actual performance. c. Comparison of actual performance with the standards and finding out deviation if any. d. Corrective action. Learn management concepts & skills rapidly with easy-to-understand, richly illustrated self-paced learning modules & downloadable PowerPoint presentations. Definition of Coordination Coordination is the unification, integration, and synchronization of the efforts of group members to provide unity of action in the pursuit of common goals. It is a hidden force that binds all the other functions of management. According to Mooney and Reelay, “Co- ordination is the orderly arrangement of group efforts to provide unity of action in the pursuit of common goals”. According to Charles Worth, “Co-ordination is the integration of several parts into an orderly hole to achieve the purpose of understanding”. 35 Management seeks to achieve coordination through its basic functions of planning, organizing, staffing, directing, and controlling. That is why, coordination is not a separate function of management because achieving harmony between individuals' efforts towards the achievement of group goals is key to the success of management. Coordination is the essence of management and is implicit and inherent in all functions of management. A manager can be compared to an orchestra conductor since both of them have to create rhythm and unity in the activities of group members. Co-ordination is an integral element or ingredient of all the managerial functions as discussed below: - a. Co-ordination through Planning - Planning facilitates co-ordination by integrating the various plans through mutual discussion, and exchange of ideas. e.g. - coordination between the finance budget and purchases budget. b. Coordination through Organizing - Mooney considers coordination as the very essence of organizing. In fact when a manager groups and assigns various activities to subordinates, and when he creates department’s co-ordination uppermost in his mind. c. Co-ordination through Staffing - A manager should bear in mind that the right no. of personnel in various positions with right type of education and skills are taken which will ensure right men on the right job. d. Co-ordination through Directing - The purpose of giving orders, instructions & guidance to the subordinates is served only when there is a harmony between superiors & subordinates. e. Coordination through Controlling - The manager ensures that there is coordination between actual performance & standard performance to achieve organizational goals. From above discussion, we can very much affirm that co-ordination is the very much essence of management. It is required in each & every function and at each & every stage & therefore it cannot be separated. 36 Coordination and Cooperation Co-ordination is an orderly arrangement of efforts to provide unity of action in the fulfillment of a common objective whereas co-operation denotes collective efforts of persons working in an enterprise voluntarily for the achievement of a particular purpose. It is the willingness of individuals to help each other. Co-ordination is an effort to integrate effectively energies of different groups whereas co- operation is sort to achieve general objectives of business. Though these two are synonymous they are different as below: Differences between Co-ordination and Co-operation Basis Co-ordination Co-operation Meaning; it is an orderly arrangement of group efforts in pursuit of common goals. It means mutual help willingly. Scope It is broader than co-operation which includes as well because it harmonizes the group efforts. It is termed as a part of co-ordination. Process: The function of coordination is performed by top management. The functions of cooperation are prepared by persons at any level. Requirements: Co-ordination is required by employees and departments at work irrespective of their work. Co-operation is emotional in nature because it depends on the willingness of people working together. Relationship It establishes formal and informal relationships. It establishes informal relationships. Freedom: It is planned and entrusted by the central authority & it is essential. It depends upon the sweet will of the individuals and therefore it is not necessary. 37 Support: It seeks wholehearted support from various people working at various levels. Co-operation without co-ordination is fruitless & therefore it may lead to unbalanced developments. Therefore, the existence of cooperation may prove to be an effective condition or requisite for co-ordination. But it does not mean that coordination originates automatically from the voluntary efforts of the group of members. It has to be achieved through conscious & deliberate efforts of managers, therefore to conclude we can say that co-operation without co-ordination has no fruit and co-ordination without co-operation has no root. Principles of management 1. Division of work - In practice, employees are specialized in different areas and they have different skills. Different levels of expertise can be distinguished within the knowledge areas (from generalist to specialist). Personal and professional developments support this. According to Henri Fayol specialization promotes efficiency of the workforce and increases productivity. In addition, the specialization of the workforce increases their accuracy and speed. This management principle of the 14 principles of management is applicable to both technical and managerial activities. 2. Authority and Responsibility - According to Henri Fayol, the accompanying power or authority gives the management the right to give orders to the subordinates. 3. Discipline - This principle is about obedience. It is often a part of the core values of a mission and vision in the form of good conduct and respectful interactions. 4. Unity of command - Every employee should receive orders from only one superior or on behalf of the superior. 5. Unity of direction - Each group of organisational activities that have the same objective should be directed by one manager using one plan for achievement of one common goal. 6. Subordination of Individual Interest to General Interest - The interests of any one employee or group of employees should not take precedence over the interests of the organisation as a whole. 38 7. Remuneration - All Workers must be paid a fair wage for their services. The wages paid must be as per a certain standard of living to the employee at the same time it is within the paying capacity of the company. 8. Centralization and Decentralization - This refers to the degree to which subordinates are involved in decision-making. 9. Scalar chain - The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. However, if someone needs to communicate with another person in an emergency he/she might use "Gang Plank". ≤Fayol suggested the concept of ‘Gang Plank’ to avoid delays and allow direct communication between two subordinates at the same level.≥ 10. Order - this principle is concerned with the systematic arrangement of men, machines, materials, etc. There should be a specific place for every employee in an organization. That is 'a place for everything (people) and everything has a place. 11. Equity - All the employees in the organization must be treated equally for justice and kindliness. 12. Stability of tenure of personnel - High employee turnover is inefficient. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies. 13. Initiative - Employees who are allowed to originate and carry out plans will exert high levels of effort. 14. Esprit de corps - Promoting team spirit will build harmony and unity within the organization. Some Fayolian principles still influence some contemporary management theories to a certain degree. CHESTER BARNARD 39 Chester Barnard was one of the Harvard Circle of American management theorists, of which Elton Mayo was another prominent member. At a time when communism seemed a real threat, Barnard came to believe that social science could be the key to establishing a stable society. His work centred on a description of the organisation as a co-operative system, and described an optimal organisation structure, focusing on the role of executives in creating the conditions for effectiveness and efficiency. Life and career Born the son of a mechanic in 1886 in New England, Chester Barnard left school early to work as a piano tuner for two years, then enrolled at a Massachusetts prep school to prepare for Harvard entry. He did not quite finish his Harvard course due to lack of funds, and instead became a businessman, working for ATT for 40 years and rising to become President of the New Jersey Bell Telephone company in 1927. He undertook government service during World War Two, then in 1948 was elected President of the Rockefeller Foundation. Although he was not an academic but a practicing business leader, Barnard wrote a book called The functions of the executive in 1938, which Andrea Gabor has described as the century's seminal book on corporate leadership (in Capitalist philosophers, Wiley, 2000). Barnard also authored several papers, a selection of which were published in Organization and management: selected papers (1948). Barnard died in 1961, just two months after he had given an interview to management professor, William Wolf. The resulting book, Conversations with Chester I. Barnard, covered many aspects of Barnard's thinking. Key theories Organisation and communication Chester Barnard's key ideas centre on the importance of individuals and communication to organisation structure. His writing, while conveying the practical experience upon 40 which it is based, is often quite theoretical, and the difficult terminology can make it hard to follow. The ideas presented are part of a holistic managerialist philosophy proposing that managers in large organisations should be as dedicated to social reform and modernisation as their governmental counterparts, with the moral authority to harness technology and markets for the public good. In The functions of the executive he defines an organisation as a system of consciously co-ordinated activities or forces of two or more persons. Two key words used in this definition are system and co-ordinated. Barnard saw a successful organisation as a co- operative system in which effective communication enables individuals to achieve much more collectively than they could in isolation. With this view, Barnard was the first to utilise the systems approach to management. He believed that organisational survival and success depended on the creation of co-operation by managers, and their navigation of the tension between individuals' personal motives (which he called efficiency) in order to satisfy the objectives of the organisation (which he called effectiveness) to achieve a balance between the two. The functions of the executive In simple terms, Barnard saw the three main functions of an executive to be: Implementation and development of an effective system of communication Appointment and retention of effective workers Motivation of workers. Viewing the communication system in an organisation as the key to organisational achievement, Barnard set out three principles for effective communication: Everyone in the organisation must know what the channels of communication are Everyone must have access to a formal communication channel Lines of communication should be kept short and direct. 41 As part of his communications theory, Barnard's acceptance theory of authority proposes that a manager exerts authority from above, and success depends on its acceptance by the employees managed. In this way, employees determine how authoritative their manager is and, for this reason, the main focus of an executive needs to be on creating the right conditions to increase acceptance levels. Barnard suggested that this could be done if: Managers are clear in what they ask employees to do, Employees understand what their manager wants them to do, and Employees are capable of complying. Employees must also understand how their work helps to achieve organisational objectives. Barnard also saw a need for executives to focus on strategy, and in the functions of the executive he outlined the process of strategic planning, which he saw as vital to putting the organisation on the road to achieving its overall objectives. Authority and the informal organisation One of the most important ways in which Barnard proposed that executives can increase employees' acceptance of their authority and orders is through their recognition and use of three zones, setting boundaries within which people evaluate orders, defined as zones of indifference, neutrality and unacceptability. The Zone of Indifference for orders is the highest acceptable range within which orders will be obeyed, and Barnard believed that managerial work involved widening this zone through the use of inducements and incentives. With seemingly modern insight, he suggested that material incentives were insufficient, and that personal incentives, such as increased power or prestige, would be more effective. Gabor claims that Barnard was the first theorist to elaborate on the importance of the informal organisation, and recognise the influence of what is now understood as 42 corporate culture and its associated values and rituals. Barnard emphasised the executive's important role in maintaining the informal organisation through using intangible influence to shape values and promote conformity and self-discipline. He believed that values should be in-built and coherent with all the other aspects of the organisation to promote organisational success. This is closely related to his acceptance theory of authority, since acceptance will be greater where employees believe that actions will contribute to the common organisational goal. In perspective Chester Barnard's ideas were people-focused, stressing the attention that must be paid to informal aspects of the organisation. His work fits within, and was probably influenced by, the human relations school of management thinking that emerged from the 1920s with the Hawthorne Studies. The human relations school adopted a behavioural approach to management, which is prominent in Barnard's ideas. Barnard was very influential in his time, and can be seen as one of the founders of organisation theory. At a time when classical management predominated, focusing largely on principles, he placed a new emphasis on the social aspects of the organisation. His ideas contrasted with those of Taylor and Max Weber in that, rather than seeing management as a scientific process, Barnard saw its informal, human side as well. Peters and Waterman, in their classic book In search of excellence (1982), suggested that Barnard's work probably gave the management process its first balanced treatment. A 1968 introduction to Barnard's key work by Kenneth Andrews claimed that the functions of the executive remained the most thought-provoking book on organisation and management ever written by a practising executive. Barnard's ideas were built upon by writers from the human relations school, such as Douglas McGregor and Abraham Maslow, and also by authors advocating the systems approach to organisations and management that was prominent in the 1960s. 43 The human relations approach became supplanted by the human resources approach during the 1980s and, although Barnard's ideas remained prominent for many years, they fell from favour in America and Europe. Jay Chandran, the author of a 1999 paper the relevance of Chester Barnard for today's manager, suggests that his obscurity is partly due to his laboured writing style. However, Barnard's work is still popular in Japan, where his ideas are considered influential. Other management researchers have since validated many aspects of his theory. According to Henry Mintzberg, for example, Barnard was right to stress that the main function of an executive is to develop an effective communication system. In The nature of managerial work, Mintzberg showed that managers spend more than three-quarters of their work time engaged in communication. Barnard's ideas on values, and the way that executives must manage them to ensure organisational success, did not find popularity at the time. But in the 1970s the ideas resurfaced, and have now become an important part of management theory in the form of topics such as corporate social responsibility, business ethics, and organisational culture. Today, some aspects of Barnard's ideas have become outdated. What was ground breaking in the 1930s and in a post-war environment has lost some of its applicability in the twenty-first century, but Barnard played a very important role in management history. While his work is not read as widely as it used to be, his books retain immense importance for the study of management. MODERN HUMAN RELATIONS MANAGEMENT THEORY Mary Parker Follett, or the "Mother of Modern Management," believed that management was "the art of getting things done through people.”... Direct contact between employees and managers helps organizations avoid conflict and misunderstandings. Mary Parker Follett was an American social worker, management consultant, philosopher, and pioneer in the fields of organizational theory and organizational behavior. Along with Lillian 44 Gilbreth, she was one of two great women management experts in the early days of classical management theory. Mary Parker Follett (September 3, 1868–December 18, 1933) was an American social theorist known for introducing ideas about human psychology and human relations into industrial management. Her articles and essays had a profound influence on the field of organizational behavior. Modern management theory owes much to her original ideas. Mary Parker Follett having been born in Quincy, Massachusetts, on September 3, 1868, studied at the Thayer Academy in Braintree, Massachusetts, where she credited one of her teachers with inspiring many of her later ideas. In 1894, she used her inheritance to study at the Society for Collegiate Instruction of Women, sponsored by Harvard University, and later completed a year of study at Newnham College in Cambridge, England, in 1890. She studied on and off at Radcliffe College as well, starting in the early 1890s. In 1898, Follett graduated summa cum laude from Radcliffe. Her research at Radcliffe was published in 1896 and again in 1909 as "The Speaker of the House of Representatives." Follett began working in Roxbury as a voluntary social worker in 1900 at the Roxbury Neighborhood House of Boston. Here, she helped organize recreation, education, and social activities for poor families and for working boys and girls. In 1908, Follett became chair of the Women's Municipal League Committee on Extended Use of School Buildings, part of a movement to open schools after hours so that the community could use the buildings for activities. In 1911, she and others opened the East Boston High School Social Center. She also helped found other social centers in Boston. In 1917, Follett took on the vice presidency of the National Community Center Association, and in 1918 she published her book on community, democracy, and government, "The New State." Follett published another book, "Creative Experience," in 1924, with more of her ideas about the creative interactions that take place between people in group processes. She credited her work in the settlement house movement with many of her insights. 45 She shared a home in Boston for 30 years with Isobel L. Briggs. In 1926, after Briggs' death, Follett moved to England to live and work and to study at Oxford. In 1928, Follett consulted with the League of Nations and with the International Labor Organization in Geneva. She lived in London for a time with Dame Katharine Furse of the Red Cross. In her later years, Follett became a popular writer and lecturer in the business world. She was a lecturer at the London School of Economics in 1933, and she also provided personal advice to President Theodore Roosevelt on organizational management. Follett advocated for a human relations emphasis equal to a mechanical or operational emphasis in management. Her work contrasted with the "scientific management" of Frederick W. Taylor and promoted by Frank and Lillian Gilbreth, which stressed time and motion studies. These approaches did not account for human psychology and the ways in which work demands might be in conflict with personal needs; rather, they treated human activities as machine processes that could be optimized to produce better results. Unlike her contemporaries, Follett stressed the importance of the personal interactions between management and workers. She looked at management and leadership holistically, presaging modern systems approaches; she identified a leader as "someone who sees the whole rather than the particular." Follett was one of the first (and for a long time, one of the few) to integrate the idea of organizational conflict into management theory, and is sometimes referred to as the "mother of conflict resolution." Follett believed that conflict, rather than presenting a need to compromise, could actually be an opportunity for people to develop innovative solutions that they would not have been able to devise on their own. In this way, she promoted the idea of reciprocity within organizational structures. In a 1924 essay, "Power," Follett coined the terms "power-over" and "power-with" to differentiate coercive power from participative decision-making, showing how "power-with" can be greater than "power-over." "Do we not see now," she observed, "that while there are many ways of gaining an external, an arbitrary power—through brute strength, through manipulation, through diplomacy—genuine power is always that which inheres in the situation?" 46 Follett began working in Roxbury as a voluntary social worker in 1900 at the Roxbury Neighborhood House of Boston. Here, she helped organize recreation, education, and social activities for poor families and for working boys and girls. In 1908, Follett became chair of the Women's Municipal League Committee on Extended Use of School Buildings, part of a movement to open schools after hours so that the community could use the buildings for activities. In 1911, she and others opened the East Boston High School Social Center. She also helped found other social centers in Boston. In 1917, Follett took on the vice presidency of the National Community Center Association, and in 1918 she published her book on community, democracy, and government, "The New State." Follett published another book, "Creative Experience," in 1924, with more of her ideas about the creative interactions that take place between people in group processes. She credited her work in the settlement house movement with many of her insights. She shared a home in Boston for 30 years with Isobel L. Briggs. In 1926, after Briggs' death, Follett moved to England to live and work and to study at Oxford. In 1928, Follett consulted with the League of Nations and with the International Labor Organization in Geneva. She lived in London for a time with Dame Katharine Furse of the Red Cross. In her later years, Follett became a popular writer and lecturer in the business world. She was a lecturer at the London School of Economics in 1933, and she also provided personal advice to President Theodore Roosevelt on organizational management. Follett advocated for a human relations emphasis equal to a mechanical or operational emphasis in management. Her work contrasted with the "scientific management" of Frederick W. Taylor and promoted by Frank and Lillian Gilbreth, which stressed time and motion studies. These approaches did not account for human psychology and the ways in which work demands might be in conflict with personal needs; rather, they treated human activities as machine processes that could be optimized to produce better results. Unlike her contemporaries, Follett stressed the importance of the personal interactions between management and workers. She looked at management and leadership holistically, presaging 47 modern systems approaches; she identified a leader as "someone who sees the whole rather than the particular." Follett was one of the first (and for a long time, one of the few) to integrate the idea of organizational conflict into management theory, and is sometimes referred to as the "mother of conflict resolution." Follett believed that conflict, rather than presenting a need to compromise, could actually be an opportunity for people to develop innovative solutions that they would not have been able to devise on their own. In this way, she promoted the idea of reciprocity within organizational structures. In a 1924 essay, "Power," Follett coined the terms "power-over" and "power-with" to differentiate coercive power from participative decision-making, showing how "power-with" can be greater than "power-over." "Do we not see now," she observed, "that while there are many ways of gaining an external, an arbitrary power—through brute strength, through manipulation, through diplomacy—genuine power is always that which inheres in the situation?" The Human Relations Management Theory of Mary Parker Follett Mary Parker Follett's management theory exists to increase coordination among workers Mary Parker Follett, or the "Mother of Modern Management," believed that management was "the art of getting things done through people." Though she never managed a for-profit enterprise, she offered valuable insight on the importance of "powering with" rather than "powering over," and integrating with employees to solve conflicts. "Leadership is not defined by the exercise of power but by the capacity to increase the sense of power among those led," Follett once said. "The most essential work of the leader is to create more leaders." Follett practiced these principles of coordination that helped develop her theory of management: Direct contact. Direct contact between employees and managers helps organizations avoid conflict and misunderstandings. Holding regular meetings or discussing assignments in person is a simple way to practice this principle. 48  Early stages. Coordination should be learned and mastered straight away. No employee should feel less important than the next; each has a significant role that compliments the roles of others. Reciprocal relationship. Every worker, regardless of their level in hierarchy, is responsible for pulling their weight and integrating with the rest of the organization. No one person should be trying less or more than another – it's a team effort. Continuous process. Coordination must be maintained. Don't just learn it and forget about it; channel it in everything you do. Known well for her mediating tendencies and managing tactics, Follett created a management theory that is still in favor today. Its main principals include: Integration Follett thought that workers of all levels should integrate to reach the organization's goals. If conflict arises, there should be a conscious effort to pull instead of push, and to work together as a team. Because each member is doing their part, overall, they will be more likely to be content with the result. 4 Principles of the Organization Another emphasis of Follett is coordination. She believes that the main task of every organization is to coordinate the labors of all employees to come up with one functional unit. She explains this by using a machine as an example. If all its parts are not assembled properly there is no way to make it work. But overall, an organization must have the following 4 principles: 1. Coordination by direct contact among the people involved in fulfilling policies of the organization. 2. Coordination in the early stages of setting policies so they may be influenced and designed by those who will be fulfilling them. 49 3. Coordination as the reciprocal relating of all the factors in a situation and that means the organization should consider all the things of its environment. 4. Coordination is a continuing process, hinting that all the above should always be part of an organization. Authority Her coordination principles are very much connected to her concept called law of the situation. Through it, she explains that authority is situational and not based on individual and job position. In other words, employees do their work to meet the demand of the situation and not to fulfill the instruction of their managers. This way it is the situation that creates the instruction. Both the managers and their employees should surrender to that. Secondly, there is nothing called ultimate obligation and authority. They are merely a phantasm. The truth is that obligation is the total obligations of all working towards a specific goal in the organization. Meanwhile, since authority is situational, it should never be taken as personal. Third, authority must be matched with the knowledge and experience required to perform a specific job. This must be true for both top officials and lower level employees. Group Process Above we have seen how Follett is always using the group to be her main focus. But why that is so? Follett has always been highly optimistic about its potential. In fact, she explains that the main reason why a group forms is because its members wish to create something. Also a group in theory is so logical and consistent that running it properly can make its members share each other’s thoughts and efforts which eventually help them become like-minded and cooperative. How is that possible? According to her, the individuals and a society within which all of us are one group are not independent entities. Both affect each other. An individual learns 50 and changes himself according to what he experiences within a society. Similarly, the society is dependent on what he gives to it from his new learned materials and changes. Thus, it’s a relationship of give and take which when shaped properly creates social evolution. PEOPLE ORIENTATION AND GROUP NETWORK MANAGEMENT When Mary Parker Follett, a social worker and management consultant, talked about issues like the importance of people-oriented, group network management through group interaction and shared power between managers and employees in business, she was actually pioneering the notion of participative leadership. Participative leadership involves managers and employees working together towards common goals like decision-making and problem-solving. Managers participate in decisions and support employees with resources needed to accomplish goals. When Smitty broke his leg and needed surgery, he knew he would have to visit many different treatment facilities. Getting appointments with a general doctor, a surgeon, a physical therapist, a social worker and maybe even a plastic surgeon could be a lengthy and tedious process. Smitty made hundreds of phone calls to individual practitioners only to find the process difficult to manage. He decided to use One-Stop Medical Associates for all of his treatment and care because of the team approach they take to caring for patients. One-Stop uses people-oriented management. People-oriented management is a participative leadership style that involves including employees in making important company decisions by equally balancing leader and employee power. This orientation toward shared power and ownership of responsibility makes resolving conflict much easier. On his first visit, the team examined Smitty's leg and documented his file. Then, they met in a conference room to discuss the steps they will take to treat the patient. The doctor and surgeon talk about their responsibilities. The nurse coordinates with the doctors on 51 her responsibilities, and the social worker writes her treatment plan. Once the plans are finished, group decisions are made. Surgeon performs the surgery General Doctor prescribes medicines and monitors patient progress Nurse changes bandages and takes blood pressure Social worker eases patient's anxieties As treatment is provided, the group shares information on the patient's current state and his progress towards recovery. Each detail is discussed and used to make decisions about future treatments. Although each practitioner has their own area of specialization, as a team, they are able to make contributions about the whole treatment plan rather than just their own individual specialties. One-Stop also uses a group network management approach to achieve their goals. A group network management approach involves groups of people within the organization with equal power over outcomes. These groups work on separate parts of an organization, and each group contributes pieces together to achieve one organizational goal. One-Stop Medical balances the power between management and the practitioners. Top management rarely deals with patients, but they are responsible for the achievement of overall objectives, like being profitable and providing premium healthcare. Top brass at One-Stop involve the employees in decisions about patient care, records management and staffing. They also hold employees accountable for their decisions. Both people-oriented management and group network management involve small groups working together to meet overall objectives. It is done through group interactions. Group Interactions 52 When decisions are made as a group, each employee feels a stronger commitment to the outcomes. One-Stop Medical uses group decision-making for total patient care. Each patient is assigned to a team of different employees. Smitty's general doctor, surgeon, nurse, social worker and physical therapist discuss his treatment outcomes with each other. These conversations are known as group interactions. Group interactions occur when there is positive collaboration between employees who are socially attracted to one another, have shared goals and have a unique identity that sets them apart from others in the organization. They lead to: FOLLETT THE SOCIAL WORKER Follett was expected to become an academic, but instead she went into voluntary social work in Boston, where her energy and practicality (as well as her financial support on occasions) achieved much in terms of community-building initiatives. For over 30 years, she was immersed in this work, and proved to be an innovative, hands-on manager whose practical achievements included the original use of schools as out-of-hours centres for community education and recreation. This was Follett's own idea, and the resulting community centres became models for other cities throughout America. Follett set up vocational placement centres in Boston school centres, and represented the public on the Massachusetts Minimum Wage Board. From 1924, she began to give regular papers relating to industrial organisation, especially for conferences of the Bureau of Personnel Administration in New York. She became, in effect, an early management consultant, as businessmen began to seek her advice about their organisational and human relations problems. In 1926 and 1928, Follett gave papers for the Rowntree Lecture Conference and to the National Institute of Industrial Psychology. In 1933, she gave an inaugural series of lectures for the new-founded Department of Business Administration (now the Department of Industrial Relations) at the London School of Economics (LSE). 53 Later in 1933, Follett returned to America, where she died on the 18th December of that year, aged 65. Key texts The New State was written during 1918, and argues for group-based democracy as a process of government. Through this book, Follett became widely recognised as a political philosopher. It was based on her social work experience rather than on business organisation, but the ideas it contains were later applied in the business context. The New State presented an often visionary interpretation of what Follett viewed as a progress of social evolution, and the tone is occasionally infused with religious poesy. The text argues that democracy 'by numbers' should give way to a more valid process of group-based democracy. This form of democracy is described as a dynamic process through which individual conflicts and differences become integrated within the search for overall group agreement. Through it, people will grow and learn as they adapt to one another's views while seeking a common, long-term good. The group process works through the relating of individuals' different ideas to each other and to the common interests of the group as a whole. Appropriate action would, Follett held, become self-evident during the consultation process. This would eventually reveal a 'law of the situation', representing an objective which all could see would be the best course for the group as a whole to pursue. Conflict or disagreement were viewed as positive forces, and Follett considered social evolution to progress through the ever- continuous integration of diverse viewpoints and opinions in pursuit of the common good. The New State envisages the basic group democratic process following right through to the international level, feeding up from neighbourhoods via municipal and state government levels into the League of Nations. Sometimes, Follett refers to an almost autonomous group spirit, which develops from the community between people, as the group process begins to work. 54 The Creative Experience was also written during 1918, and again focused on democratic governance, using examples from business to illustrate ideas. Dynamic Management - The Collected Papers of Mary Parker Follett and Freedom and Co-ordination were both published posthumously and edited by L Urwick. Freedom and Co-ordination collects together six papers given by Follett at the LSE in 1933, and these represent the most developed and concise distillation of her thoughts on business organisation. Follett's business writings extended her social ideas into the industrial sphere. Industrial managers, she saw, confronted the