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3. Behavioural Management Theory

This theory was put forward by Elton Mayo. He was of the view that production depends on the way people are treated. He focused on five concepts as under:

  • Morale
  • Group dynamics
  • Democratic supervision
  • Personal relations
  • Behavioural concept of Motivation

4. Bureaucratic Management Theory

This theory was advocated by Max Weber. He focused on the structure of organization. He considered that highest degree of efficiency can be attained through this approach. By using this approach it is possible to take control over human beings. Its characteristics are:

  • There is the rigidity of official behaviour
  • There is resistance to the adoption of innovations and change
  • There is rigidity of rules and regulations
  • The decision is taken by a hierarchy of officers and officials
  • There is the leveling of talent. This system tends to reduce the performance of bright workers to the level of mediocrity
  • The consequence is the ‘red tape’ which is never in the straight line. All feel entrapped and helpless.

5. Theory of Management by McGregor

Its basic assumptions are given below:

  • The average human being has an inherent dislike of work
  • The average human being avoids work if he can
  • Because of the human characteristics of dislike of work, there arises the need for control and direction of individuals. The individuals are threatened with punishment to get them to put forth adequate effort for the achievement of objectives of an organization.
  • The average human being wants security.

6. ‘Y’ Theory of Management by Douglas

  • The average human being does not inherently dislike work.
  • Self-control and self-direction are perhaps more powerful means than external control and the threat of punishment for bringing about better results.
  • Self-actualization is the highest level need of the worker.
  • The average human being works under proper conditions not only to accept but also to seek responsibility.
  • The capacity to exercise a relatively high degree of imagination and creativity in the solution of organizational problems is wisely distributed in the management personnel.
  • Under the modern industrial life, the intellectual potentialities of the average human being are only partially utilised.

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