SOCIAL SYSTEM APPROACH / Contributions of Chester Barnard

 

SOCIAL SYSTEM APPROACH:-

 

    INTRODUCTION-

                  This approach of mgt has extended the implication of human relation approach further. This approach was introduced by Vilfredo Pareto and his idea were later develop by CHESTER BARNARD.

 

MAIN FEATURES-

1.      An organisation is a social system, a system of cultural relationship.

2.      Co-operation among group member is necessary for achievement for organisational objective.

3.      For effective mgt, efforts should be made for establishing harmony b/w the goals of organisation and goals various group therein.

4.      Relationship exists among the external and internal environment of the organisation.

 

Contributions of Chester Barnard

 

1.      Concept of organisation-  He defines organisations as “a system of consciously co-ordinate activities of two or more persons to achieve the objectives of the organization”.

 

2.      Formal and informal organisation.-            The formal organisation has consciously co-ordinated intraction which have a deliberate and common purpose.

The informal organisation refers to those social interactions which do not have consciously co-ordinated  joint purpose. These organisation exist to overcome the problems of formal organisation .

Both the organisation depends on each other. Therefore, in managing organization, both should be take into account.

3.      Elements of organisation:-   According to chester barnard there are 4 elements of an organisation.

a.       A system of departmentalization.

b.      A system of efficient & effective incentives.

c.       A system of power

d.      A system logical of decision making.       

                                                                                                                                                                                                                    

4.      Acceptance theory of authority:-   He does not agree with the classical view that authority transcends from top to bottom .He has given a new concept of authority which is termed as “acceptance theory of authority” or “bottom to up theory”. In his opinion a person will accept the orders as being authoritative only when- 

1.      He can understand the orders.

2.      He believe that it is not inconsistent with the organizational purpose

3.      He believes it to be compatible with his personal interest as a whole.

4.      He is mentally & physically able to comply with it.

 

5.      functions of execution:-      

Barnard has identified three types of function which an executive perform in an formal organisation:-

1.      Formulation & defining organisational purpose.

2.      Maintaining organisational communication through formal interaction.

3.      Securing essential services from individual to achieve the purpose of organisation.

 

6.      Motivating:-  Apart from financial incentives which have their own limitation in motivating people. Barnard has suggested a no. of non-financial incentives for motivating peoples like-

1.      Opportunity of power.

2.      Pride of workmanship .

3.      Pleasent organisation.

4.      Participation

5.       Mutual supportive personal attitude.

6.      Feeling of belongingness.

 

7.      organisational equilibrium:-  Equilibrium of an  organisation  depends on individuals working in it, other organization, and the society as a whole. It is achieved when there is simultaneous fulfillment of requirements of the above three elements i.e individuals, organization and society. This equilibrium is not static but dynamic because demands & aspiration of individuals , other organisations & society changes & the organisation has to cope up with dynamic situation.

 

8.      Executive Effectiveness:-  it requires a high order of responsible leadership which is the most strategic factor in securing co-operation from the people.

HAWTHORNE EXPERIMENT [human relation approach] Neo classical theory- ILLUMINATION TEST EXPERIMENT, RELAY ASSEMBLY TEST, MASS INTERVIEWING PROGRAMME, BANK WIRING OBSERVATION ROOM EXPERIMENT, IMPLICATION/FINDINGS OF HAWTHORNE EXPERIMENT

 HAWTHORNE EXPERIMENT [human relation approach]

Neo classical theory:-


The hawthorne plant of General Electric Company Chicago was manufacturing telephone system bill it employee about 30,000 employee at the time of experiment. In respect of material benefits to the workers, this was the most progressive company with pension and sickness benefits and many recreational facilities. There was great deal of dissatisfaction among the workers and productivity was not upto the mark. After the alter failure of an investigation conducted by efficiency experts, in 1924 the company asked for assistance from the National Academy of Science to investigate the problem of low productivity .

In order to investigate the real cause behind the phenomenon, a team was constituted by -

1)      Elton mayo                             [psychologist]

2)      William Dickson                     [ company representative ]

3)      Whitehead                              [ sociologist ]

4)      Roethlesberger                       [ sociologist ]

They conducted experiments and researches in 4 phrases:-

1.      Illumination Experiment,                                      [1924-27]

2.      Relay assembly test room experiment,                  [1927-28]

3.      Mass interviewing programme,                             [1928-30]

4.      Bank wiring observation room experiment,          [1931-32]

 

1.ILLUMINATION  TEST EXPERIMENT:-

Illumination test were under taken to find out how varying level of illumination effects the productivity.

 The hypothesis was that - by increasing illumination, productivity cab be increased.

 

EXPERIMENTAL                                                                  CONTROLLED

[varying environment]                                                           [constant environment

 

1. As light increased, Productivity Increased                        production increased

2.Illumination decreased, no effect on productivity            production increased                                         3. at moon light, production was decreased                       production increased                  

CONCLUSION:-  Illumination has no effect on productivity, but there is something else which is impacting.

2.RELAY ASSEMBLY TEST :-  

Relay assembly test were designed to determined the effect of changes in various job condition on group productivity. For this purpose the researchers set up a relay assembly test room and two girls were choosen.

Two girls were asked to choose other 4 girls as co-workers.

 following changes were applied on them:-

1)      INCENTIVES SYSTEM- The incentives system was changed so that each girl & extra pay based on the other 5 rather than output of a large group. As a result productivity increased as compared to before.

 

2)      TWO, 5-MINS REST- One in the morning and other in the evening session were introduced which was than increased to 10 mins. As a results the productivity increased.

 

3)      Rest periods was reduced to 5 mins but frequency was increased- As a results the productivity decreased slightly and the girls complained that frequency of rest intervals  affects the rhythm of their work.

 

4)      The no. of rest period was reduced to two of 10 mins each. But the morning coffee or soup was serve alone with sandwiches and in the evening, snacks was provided. As a results the productivity increased.

 

5)      change in working hour & working day were introduced such as cutting on hour off at the end of day and eliminating Saturday of work. As a result productivity increased.

As each change was introduced absenteeism reduced, moral increased, less supervision was required. It was assume day these +ve factor were there because of various factor being adjusted and making them more +ve.

At this point of view, researchers decide to revert back to original position that is no rest and other benefits. Surprisingly Productivity increased further instead of going down.

CONCLUSION:-   This development caused a considerable amount of re-direction in thinking & the result implied that productivity increased not because of +ve changes in physical factor but because of change in the girls attitude toward work and their work group. They develop the feeling of stability and sense of belongingness since there was more freedom of work. They develop a sense of responsibility and self discipline. The relationship b/w supervisor & worker become close & friendly.

3.MASS INTERVIEWING PROGRAMME:- 

About 20,000 employees were selected and the interview was conducted b/w 1928-1930  to determine the aptitude toward company, supervision, insurances plan, promotion & wages and other benefits. The interview program gave valuable inside about the human behaviour in the company.

CONCLUSION:- worker behaviour was being influenced by the group behavior. However,  The conclusion was not satisfied and therefore the researchers decide to conduct another series of experiment.

4.BANK WIRING OBSERVATION ROOM EXPERIMENT:- 

These experiment were carried on b/w November 1931 to may 1932 with a view to analysis the functioning of small group & its impact on individual behaviour.

 A group of 14 male workers was employed in which 9 were solder man & 2 were inspector.

Hourly wage rate for the personnel was based on average output of each worker.

While the bonus was to be determine on the basis of group output.

The hypothesis was that in order to earn more, worker would produce more and in order to take advantage of group bonus, they would help each other to produce more. 

 

However this hypothesis did not hold valid. The workers decided the target for themselves which was lower than the companies target.

1.      Fear of unemployment.

2.      Fear of raising the standard.

3.      Protection of slower workers.

4.      Satisfaction on the parts of mgt.

 

CONCLUSION-  This study suggested that  informal relationship are an important factor in determining the human behaviour. During the course of work experiment, worker was concerned for good human relation in the companies plant.

 

IMPLICATION/FINDINGS OF HAWTHORNE  EXPERIMENT  :-

 

1.      SOCIAL FACTOR IN OUTPUT-

Elton mayo has described organisation as “a social system”. Thus, an organisation is not merely a formal structure of functions in which production is determined by official prescription but the production norms is set by social norms. Since people are social beings, their social characteristics determines the output & efficiency in the organization. Economic Rewards & productivity do not necessarily go together.

 

2.      GROUP INFLUENCE-

Workers, being social being, create informal groups which are different from other official groups. The groups are formed to overcome the short coming of formal relationship.

Thus mgt cannot deal with workers as individuals but as a member of one group. Subject to influence of the group.

 

3.      CONFLICTS-

There may be conflict b/w organisation & informal group however, informal group may help to achieve organizational objective by overcoming the conflict which produce hindrance in productivity.

 

4.      LEADERSHIP-

It is important to direct group behaviour in an organization. However, leadership cannot come only from formally appointed superior but there may be informal leaders. In some areas, informal leaders are more important in directing group behaviour because of his identity with groups objectives.

 

5.      SUPERVISION-

friendly to the workers, attentive, genuinely concern, supportive supervision affects the productivity in its favorably.

 

 

6.      COMMUNICATION- 

Through communication, workers can be explained the rationality of a particular action, participation of workers in decision making concerning the matter of their importance, solving problems and development of better understanding b/w mgt & workers. This type of communication increases workers productivity.










 


Theory of BUREAUCRACY by Max weber and features of bureaucracy theory

 

BUREAUCRACY

Bureaucracy can be defined as the organizational structure with highly routine operating task performing under formalized rules and regulation with task assigned for various departments.

 It is an administrative system designed to accomplish large scale administrative task by systematically coordinating the work of many individuals working in organization.

Weber has observed 3 types of power in organization-

1)      Traditional power

2)      Charismatic power

3)      Rational-legal (bureaucratic)

He has emphasized that Bureaucratic type of power is the ideal one.

Features

1.      Administrative class

                                        There is special class of officer called as bureaucrats who are selected on the basis of their compliances and skills. They are trained and posted on senior positions. They get salaries and perquisites normally on the basis of their position. They are selected for the purpose of employment based on their competence.

 

2.      Hierarchy

                     In bureaucratic structure, each lower officers in under the supervision of higher level. it means hierarchy of position in organization. It is a system of ranking various position in decreasing scale that is from top to bottom of an organization. It serves as lines of communication and delegation of authority.

 

 

3.      Division of work-

                            work of organization is divided on the basis of specialization .Each person job is divided into simple, routine and will defined job/task. The work of organization is divided on the basis of specialization to take advantage of decision of labours.

 

4.      Official rules and regulations-

                                                    organization frames certain rules and regulation which all employees have to confirm while conducting task .They have to be applied in an impersonal manner.

 

5.      Departmentalization

                                           similar tasks are grouped into functional departments.

 

6.      Narrow span of control-

                                           It states that no single executive should have more people under his guidance. This is due to the fact that he can supervise employees of his department only.

 

7.      Record

                  Proper paper records have to be kept for everything by maintaining files on a day-to-day basis. This helps in future reforms of past work.

 

8.      Impersonal relationships-

                                            There is no place of personal emotion and favors.  Rules and regulations are for everyone, be it the manager or a clerk.

 

9.      Rationality

                    Judgments are made in a rational manner according to an objective and prescribed rules and regulations.

Factors controlling to efficiency :-

ü  There are extensive rules and regulations which clarify ‘what employees are expected to do” therefore, Thay focus their attention on this aspect.

ü  Decision making is rational as it is governed by rational factors and not by personal factors of decision makers , it is regulated within rules and regulations.

ü  There is proper maintainance  of official records i.e, employees may refrain from doing anything wrong.

 

 

 

 

NOTE: Classical Theory:

1)      Scientific Management Theory           -           F.W.Taylor

2)      Administration Theory                        -           Henry Fayol

3)      Bureaucratic Theory                            -           Max Weber

CONTRIBUTION OF TAYLOR AND FAYOL and SIMILARITIES OF TAYLOR AND FAYOL

 

CONTRIBUTION OF TAYLOR AND FAYOL (COMPARISON CHART)

 

BASIS

F.W. TAYLOR

HENRY FAYOL

PERSPECTIVE

Shop floor level or lower level.

higher management level or top management.

FOCUS

Efficiency through work simplification and standardization.

Overall efficiency by observing certain principles.

ORIENTATION

Production and engineering.

Managerial function

RESULTS

Scientific observations and measurements.

Personal experience translated into universal truth

OVERALL CONTRIBUTION

Basis for accomplishment on the product line.

Systematic theory of management.

FATHER OF

Scientific management.

Administrative management.

 

 

SIMILARITIES OF TAYLOR AND FAYOL

 

ü  Both have developed some principles which can be applied in solving managerial problems.

ü  Both have attempted to overcome managerial problems in a systematic way.

ü  Both of them have emphasized that managerial qualities are acquirable and can be acquired through training.

ü  Both have emphasized that management action can be effective if these are based on sound principles.

ü  Both have emphasized harmonious relationship between management and workers for the achievement of organizational objectives.

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