--- title: "Vol 2 1" book: "PG MPUB 102 (1st Sem) Administrative Thinkers" category: "PG MPUB" publisher: "Ratan Prakashan Mandir Pvt. Ltd." type: "Educational Material" ---  According to Latest Syllabus Read For Sure Success In University Examination RATAN TEXT BOOK ADMINISTRATIVE THINKERS Vol-2 M.A.Pub.Ad. (Sem-I) Ravi Shankar Agrawal Published by Ratan Prakashan Mandir Pvt. Ltd. 2nd Floor, Centre Plaza, Parinay Kunj, Lajpat Kunj Marg, Agra-282002 Copyright Authors & Publishers Published by Ratan Prakashan Mandir Pvt. Ltd. 2nd Floor, Centre Plaza, Parinay Kunj, Lajpat Kunj Marg, Agra-282002 ISBN :978-81-69604-33-8 Price 190.00 only Printed at : KIDS INTERNATIONAL PVT. LTD. C-60, 61, 62, 63, EPIP, Shastripuram, Agra - 282007 Ph. : +91 9719004921 UNIT-11 DOUGLAS MCGREGOR Structure 11.1    Introduction 11.2    Learning Objectives 11.3    Mc. Gregor’s Views about Management Self-check Exercise-1 11.4    The TheoreticalAssumptions of Management Self-check Exercise-2 11.5    Theory ‘X’: The Coercive Compulsions Self-check Exercise-3 11.6    Theory ‘Y’ : The Alternate Assumptions Self-check Exercise-4 11.7    The Scanlon plan Self-check Exercise-5 11.8    Relevance of Theory ‘y’ is line-staffrelationship. Self-check Exercise-6 11.9    The Professional Managers Self-check Exercise-7 11.10    Summary 11.11    Glossary 11.12    Answer to the Self-Check Exercises 11.13    References/Suggested Readings 11.14    Terminal Questions 11.1    Introduction Douglas M. McGregor, a prominent professor of management, played a key role in the behavioral movement within management theory. As a psychiatrist and academic, he scientifically challenged the outdated assumptions about human nature and behavior control within traditional management models. McGregor was a respected professor at the Massachusetts Institute of Technology (MIT) and a board member of the Foundation for Research on Human Behavior. He demonstrated that relying on authority as the primary form of control in organizations often leads to resistance, restricted output, and a lack of commitment to organizational goals. His influential book, The Human Side of the Enterprise, marked a turning point in management thinking, moving away from traditional models to focus on the human aspects of organizations. His work addressed a broad spectrum of management skills and advocated for a new social framework and value system that managers could adopt to achieve their professional objectives. In his later work, The Professional Manager, McGregor took a major leap forward in linking behavioral concepts with organizational behavior. He showed how the human side of organizations could be fostered through appropriate managerial interventions and deeper understanding. 11.2    Learning Objectives After studying this lesson, the learner will be able: -    To know about the life sketch of Douglas Mc. Gregor and his contributions. -  To Compretand about the Theory ‘x’ & theory ‘y’ propounded by Mc. Gregor. -    To elaborate the Scanlon plan. -   To alalyze the relevance of theory ‘y’ is line staff relationship. 11.3    Mc Gregor Views about Management Douglas was of the View that enhance on authority is the man method of control in industry leads toassistance. It restries output and also the worriers become quite indifference to the objective of the organization.Not only was but they begin to clime the authority, which is not conducive to the growth of the organisationand d of workers. He therefore, favours altogether new social architecture and also a new value system. It is a system in which all in the organization at different levels sill commit themselves to professional and organization goals. He has linked behavioral concepts to organisation 134 behaviour and suggest development of human side of development with the help of appropriate, manageable understanding. He has laid stress on theneed of motivation which in his views can attract the people to work Motivation is linked with human begins. Mc. Gregor on Managers Douglas McGregor’s influential book The Human Side of the Enterprise, published in 1960, is considered a cornerstone of industrial psychology. It challenged long-held assumptions about scientific management, particularly the ongoing debate about whether successful managers are born or made. McGregor directly tackled this issue, stating, "It seems clear to me that the making of managers, insofar as they are made, is only to a small degree the result of formal management development efforts. Much more significantly, it is shaped by management's conception of human nature and the policies and practices constructed to implement that view." McGregor argued that the way an organization is managed has a profound impact on how people are perceived and how they grow in their roles. He cautioned against focusing solely on formal management training, suggesting that the real key to effective management lies in understanding the assumptions management holds about human nature and how to manage people. The central premise of his work, which introduced the well-known Theory X and Theory Y, was that these assumptions directly shape an organization’s culture and effectiveness. McGregor believed that many of the challenges faced by managers are not about improving technical skills, but about understanding the fundamental beliefs about managing people. For him, the key question was, “What are your assumptions—both implicit and explicit—about the most effective way to manage people?” He believed that the answers to this question would shape the development of managers, influence organizational productivity, and ultimately determine the success of the organization’s broader objectives. Self-check Exercise-1 Q.1 Write a short note on the McGregor’s views on Management. 11.4    The theoretical Assumptions of Management Douglas McGregor's most significant and lasting contribution lies in his work on the development of managerial talent and teamwork within industrial enterprises. He proposed that every managerial action is rooted in a theory, emphasizing that management is not merely a science, as it doesn't fully align with the objectives science seeks to achieve. Instead, McGregor believed that while management can utilize scientific knowledge to meet practical objectives, it doesn't strictly conform to the definition of a science. His core hypothesis revolves around the idea that control in management is an act of selective adaptation. He argued that much of our attempts to control human behavior often conflict with the natural tendencies of human nature. Managers, McGregor pointed out, often try to force workers to behave in ways that contradict their natural inclinations. When this happens, it’s unrealistic to expect the desired outcomes, just as it would be unreasonable to expect results when a manager's behavior is out of alignment with the natural laws governing human nature. McGregor also questioned traditional methods of coercive control in the workplace, challenging the underlying assumptions that these approaches are effective. He emphasized that human behavior can be predicted and managed, but only if we recognize that control is about adapting to human nature, not forcing it to fit our expectations. In his view, if people don’t behave as we predict, the fault lies not with them, but with our attempts to make human nature conform to our wishes, rather than understanding and working with it. Self-check Exercise-2 Q.1 Write a short note on the theoretical assumption on Management according to McGregor. 11.5    Theory ‘X’ The Coercive Compulsions Douglas McGregor was a keen observer of human psychology and social behavior, with his empirical research into organizational conflicts and interpersonal adjustments leading him to develop a unique perspective on control in human affairs. He believed that control could be achieved not through coercion and compulsion, but by integrating human behavior and fostering self-motivation. McGregor explored these ideas through various hypotheses, scientifically testing their validity to create his well-known theories of managerial control, referred to as Theory X and Theory Y. McGregor’s framework does not neatly fit into the traditional dichotomy between conventional and modern management thought. Theory X, which he described as the traditional view of management, is based on assumptions that have long been embedded in organizational literature and the practices of many managers. According to McGregor, the key assumptions of Theory X include: 1.    The average person inherently dislikes work and will try to avoid it whenever possible. 2.    Because of this, most people must be coerced, controlled, directed, and threatened with punishment in order to motivate them to contribute effectively to organizational goals. 3.    The average person prefers to be directed, avoids responsibility, has limited ambition, and seeks security above all else. Often referred to as the "carrot and stick" approach, Theory X outlines the consequences of this managerial strategy, which, while purporting to explain human nature, actually operates from a very limited view. It relies on the assumption that people are inherently insecure and motivated solely by fear. This view treats individuals as workers who avoid all forms of labor, as seen in outdated models of factory work. These assumptions, McGregor noted, have long been in practice without being rigorously tested or verified. McGregor criticized these assumptions for being overly restrictive and for preventing the development of more effective management strategies. He argued that many contemporary management approaches—such as decentralization, management by objectives, consultative supervision, and democratic leadership—are ultimately just old ideas dressed in new terminology. The procedures used to implement these strategies, he believed, often stemmed from the same outdated assumptions of Theory X. As a result of his research, McGregor grew increasingly disillusioned with the popular, trendy management practices of his time. He observed that, in essence, these practices merely rehashed the same tactics and tools within the confines of the Theory X mindset. His conclusion was that as long as the assumptions of Theory X continue to shape management strategies, organizations will fail to tap into the true potential of their employees. Self-check Exercise-3 Q.1 What are the features of Theory X given by McGregor? 11.6    Theory Y: The Alternate Assumptions of Integration and Self Control Looking positively in the of man needs and man’s psychological quest for satisfaction of them as wantinganimal Me. Gregor consulates this theory Y which offers a number of alternate assumptions for the integrationof the individual and organizational goals. According to him creation of conditions is not control in the usual sense. Rather, it does not seem to be a particularly good advice for directive behavior. He has arranged hiswhole new set of assumptions about motivation and morals in a theory, which he prefers to call theory Y perhaps to dramatize the contrast with the major assumptions of theory X. The assumptions of theory Y as : i)    The expenditure of physical and mental effort in work is play or rest. ii)    Mass exercises, self direction and self control in the services of the objective to which he is committed. iii)    Commitment to objectives is a function of the rewards associate with their achievement. iv)    The average human being learns under proper conditions not only to accept but to seek responsibility. v)    The -capacity to exercise d relatively high degree of creativity, imagination and ingenuity in the solutionof organisation problems is wide not narrowly dispirited in the population. vi)    Under the conditions modem industrial life, the intellectual potentiate of the average human being areonlypartiallyutilized. Douglas Me. Gregor calls his theory Y an open invitation to Innovation. He does not deny the appropriatenessof authority under certain circumstances, ‘but the he does deny its appropriateness foe all purposes and underall circumstances. Self-check Exercise-4 Q.1 What are the features of Theory Y given by McGregor? Theory Y in Practice In his book The Human Side of the Enterprise, McGregor discusses the application of Theory Y, offering a critique of traditional managerial strategies and personnel techniques. His research in industry revealed a strong connection between the acceptance of responsibility and alignment with organizational objectives. He found that allowing employees to learn from their experiences brought greater long-term benefits than simply pointing out where their plans had been unrealistic or inadequate. McGregor also noted that the administrative, informal, and motivational aspects of performance appraisals are more effectively achieved when employees are treated as intelligent adults. These individuals thrive on growth, learning, and improved performance, which can best be fostered through self-control and cooperative behavior. When testing Theory Y in real-world management practices, McGregor discovered that unilateral control over things like salary administration and promotions could be reduced by giving employees more opportunities to actively participate in decisions that affect their careers. 11.7    The Scanlon Plan The research on Union-Management cooperation, widely known as the Scanlon Plan, was based on a philosophy of management that aligned closely with the assumptions of Theory Y. The two key elements of the Scanlon Plan were (1) profit-sharing based on cost reduction and (2) effective participation. This kind of participation, rooted in Theory Y assumptions, provides workers or subordinates with significant opportunities for ego satisfaction, which in turn boosts motivation toward achieving organizational goals. The Scanlon Plan serves as strong evidence that, when applied thoughtfully and with understanding, participatory management fosters natural commitment through integration and self-control. Self-check Exercise-5 Q.1 What is Scanlon Plan? 11.8    Relevance of Theory Y in Line-staff Relationship Modern industrial organizations are largely driven by their staff, who possess the expertise to design and manage the procedures within the company. McGregor believed that, in the long term, authoritative commands are not effective in resolving the complex staff-line conflicts of today's organizations. He argued that line managers who work cooperatively with their employees, within the framework of Theory Y, are able to foster healthy relationships with both their subordinates and superiors, as well as with their colleagues. These conflicts, if left unaddressed, can lead to wasted human resources and a decrease in commitment to the organization's objectives. McGregor emphasized that Theory Y promotes teamwork at all levels of an organization, which in turn helps to improve staff-line collaboration. Self-check Exercise-6 Q.1 What is the relevance of Theory Y in Line-staff Relationship? 11.9    The professional Managers if the Human side of the enterprise represents Douglas Me. Gregors concern to educate future managers his last book. The Professional Manager, posthumously published, reflects his profession of management through bridging its goals with the methodology of behavioral science. Four major themes recur throughout the volume, which Mc. Gregor left unfinished before his death in the year 1967. He had a great fascination for theory building and cosmology Me. Gregor believe that the managers view of organization acts. In his view the managerial should meaningfully address- itself to the understanding of the managers behaviour, his identity and his role perceptions of the industrial organization. Working Through of Difference Discussion team work and tension in the management of differences he discusses three strategies namely: i)    divide andrule ii)    the suppression of differences iii)    working through the differences. The first two strategies, grounded in the assumptions of Theory X, have often turned managerial roles into perpetual liabilities. Professional managers, McGregor believed, should not only protect themselves from mutual antagonism, office politics, or currying favor with superiors, but also navigate these differences in ways that allow for innovation, commitment to decisions, and the strengthening of relationships within their teams. While current research in management behavior has evolved beyond Theory Y, McGregor’s ideas remain highly relevant. Although many of his theories originated during the early days of industrial society in the United States, they are still influenced by post-war research in industrial sociology and management psychology. As a dedicated researcher, McGregor may not have all the final answers to the enduring challenges of management, but his work offers a wealth of ideas. His writings serve as a valuable resource for management theorists and practitioners, helping them refine their strategies and adapt their approaches to the evolving demands of tomorrow's business world. Self-check Exercise-7 Q.1 Write a short note on the concept of professional managers. 11.10    Summary Douglas McGregor, a renowned social psychologist and management consultant, is best known for his Theory X and Theory Y. He made invaluable contributions to understanding human nature and behavior within organizations. McGregor challenged the prevailing theoretical assumptions in management, firmly believing that every managerial action is rooted in a theory. For him, the crucial question in top management is: "What are your assumptions—both implicit and explicit—about the most effective way to manage people?" His influential work, The Human Side of the Enterprise, is widely regarded as one of the most significant contributions to industrial psychology. 11.11    Glossary Enterprise- a project or undertaking, especially a bold or complex one.Professional- relating to or belonging to a profession. 11.12    Answers of the Self Check Exercise Self-check Exercise-1 Ans 1. Refer to section 11.3 Self-check Exercise-2 Ans 1. Refer to section 11.4 Self-Check Exercise-3 Ans 1. Refer to section 11.5 Self-Check Exercise-4 Ans 1. Refer to section 11.6 Self-Check Exercise-5 Ans 1. Refer to section 11.7 Self-Check Exercise-6 Ans 1. Refer to section 11.8 Self-Check Exercise-7 Ans 1. Refer to section 11.9 11.13    References/Suggested Readings •    Prasad, D. Ravindra, Prasad, V.S. and Satyanaryana, P.‘Administrative Thinkers’, Sterling PublishingHouse, New Delhi, 2009. •    Laxmikant,M. ‘PublicAdministration’Fifth Edition, Tata McGraw-Hill Publishing Company Limited,New Delhi,2016. •    Avasthi, Dr. A., And S. R. Maheshwari, ‘PublicAdministration’30th Edition, Laxmi NarayanAgarwal, Agra, 2009. •    Arora, K. Ramesh and Batra, K. Satish., ‘Governance and Development,Aalekh Publications, Jaipur,2011. •    Bhattacharya., M. ‘New Horizons of Public Administration’, 7th Edition, Jawahar Publishers and Distribution, New Delhi, 2008. •    Fadia., Prof. B.L. & Fadia., Dr. K. ‘Public Administration: theories and concepts’ Sahitya BhavanPublications,Agra, 2009. •    Sharma, M.P. ‘Public Administration Theory and Practice’ Kitab Mahal, Allahabad, 1960. 11.14    Terminal Questions a.    What do you mean by the Scanlon Plan? b.    Write a note on Professional Managers to keep in view point ofMc Gregor. UNIT-12 FREDRICK HERZBERG Structure 12.1      Introduction 12.2      Learning Objectives 12.3     Two Factor Theory of Motivation or Motivation Hygiene Theory Self-check Exercise-1 12.4    Job Enrichment Self-check Exercise-2 12.5    Principles of Vertical Job Loading Self-check Exercise-3 12.6      Criticism Self-check Exercise-4 12.7     Summary 12.8      Glossary 12.9    Answers to Self- Check Exercises 12.10    References/Suggested Readings 12.11     Terminal Questions 12.1    Introduction Fredrick Herzberg (b-1923) was a distinguished Professor of Management in the University of Utah. Initially he was trained as a psychologist in Industrial mental Health. He conducted a programme of researchfor many years, of which the famous Hygiene theory - is attributed only to Dr. Herzberg. He conducted extensive studies on human motivation at work and its effects on the individuals job satisfaction and mental health. He related man’s happiness and satisfaction to the current method of organizing work in any businessestablishment. 12.2    Learning Objectives After studying this lesson, the learner will be able. -    To know about the Fredrick Herzberg and his work. -    To understand two factor theory of motivation assessed by Fredrick Herzberg. -  To differentiate between job enrichment and job enlargement in the organization. 12.3    Two Factor Theory of Motivation or Motivation Hygiene theory Fredrick Herzberg and his colleagues conducted research on two hundred engineers and account representing a cross section of eleven industries in Herzberg. These research studies and surveys led to thetheory of motivation which was later called motivation - Hygiene theory. In the interviews, they were asked about what kinds of things on their job made them unhappy or unsatisfied and what things mad them happy or satisfied in analysing the data from these interviews. Herzberg concluded that people have two distinct categories of needs that influence their behavior in different ways. He found that when individuals felt dissatisfied with their jobs, their concerns were often related to the environment they were working in. On the other hand, when they felt satisfied, it was typically because of the work itself. He labeled the first category of needs as "hygiene" or "maintenance factors." These factors are related to the work environment and serve to prevent job dissatisfaction; however, they are never fully satisfying and must be continually maintained. The second category, which Herzberg referred to as "motivators," are the factors that drive individuals to achieve superior performance and job satisfaction. Herzberg’s research revealed that the factors responsible for job satisfaction are completely different from those that lead to job dissatisfaction. . The following figure lists on the. Left side the items that were mentioned in the interviews when dissatisfaction occurred when the respondents experienced satisfaction factors such as those on the eight were usually present. Figure 1. Dissatisfies and satisfiers on the job Dissatisfies (Hygiene) 1.    Company Policy and 2.    Supervision -Technical 3.    Salary 4.    Interpersonal relations 5.    Working Conditions Satisfiers (Motivators) 1.    Administration 2.    Recognition 3.    Workitself 4.    Responsibility 5.    Advancement (Source: Adopted from Fredrick Herzberg. et. al. all. The Motivation to Work, Ne Your : Gohn Wiley &Sons, 1959). Some of important concepts developed by Herzberg studies are summarized below : 1.    There are two distinctive dimension to motivational problem. On the one end of the continue are thosefactors which can either cause on prevent dissatisfaction. But positive attitude are not produced if motivationalfactors are absent. 2.    When hygiene factors are adequately taken care of dissatisfaction will disappear, but no positive attitudesand motivation results. Thus, hygiene factors are preventive. They can prevent the satisfaction but do not actas personal incentives which motivates people to high levels of productivity. 3.    The motivational factors those which lead to the development of positive attitudes and motivation andact as individual incentives. As Herzberg notes there are things which surround the job while the hygiene factors satisfy and physiological a security need the motivational factors are concerned with psychologicaland self-fulfillment needs Self-check Exercise-1 Q.1 Explain two factor theory of motivation given by Herzberg. 12.4    Job Enrichment. Herzberg concludes that job enrichment aims to enhance job satisfaction by incorporating both task efficiency and, more importantly, greater opportunities for personal achievement and recognition. It focuses on providing employees with more challenging and responsible work, as well as offering greater chances for individual growth and advancement. While job enrichment acknowledges the importance of factors like pay, working conditions, organizational structure, communication, and 146 training, these elements are seen as secondary, though still necessary, to fostering a more fulfilling work experience. . The concept of job enrichment that encompasses job loading holds the’ key to creating meaningfulwork which can satisfy the workers full range of needs on the job. The experiment under discus was conducted by Frednck Herzberg among a group of stockholders,correspondents employed by a very large corporation. Herzberg says that horizontal job loading is when an employee’s job is increased or the amount of work to be done by him is enriched, the management only reduces the personal contribution of the person, rather thancreating his interest in his present work Horizontal Job loading is when employee is given more of the samekinds of activities to perform with a resulting increase in the scope of the job. Whereas the vertical job loadings Is just the reverse, it provides motivating factors. These factors give greater responsibility, autonomy, healthy interaction and immediate response to the individual or the group. In summary, vertical job enrichment tends to increase the overall level of responsibility in the job horizontaljob enlargement merely Increases the member of activities included. The concept of vertical job enrichment is the one that seems to possess man of the factors that correlate most highly with worker motivation. If we examine the idea of job enrichment in conjunction with the motivating factors defined b Herzberg there begins to emerge a series of guidelines for management to follow if job redesign is to maximize higher-level need satisfaction. It allows greater degree of control over his or her ownwork situation. The control can take many forms, but it generally includes increasing the workers power to influence theplanning and organization of the work cycle. The worker comes to understand not only how the job is to bedone in a certain manner and how it fits into the overall work situation. Self-check Exercise-2 Q.1 Explain the concept of Job Enrichment given by Herzberg. 12.5    Principle of Vertical Job Loading Principle                  Motivators Involved | 1. Eradicating some controls while retaining | 1. Responsibility, and personal accountability | |---|---| | 2. Enhancing the account ability of individuals | 2. Responsibility and Recognition for their own | | 3. Giving a person a complete natural unit of Work | 3. Responsibility achievement and recognition.+ | | - (module, division, area and so on. | | | 4. Granting additional authority to an employee in | 4. Responsibility achievement and recognition. | | 5. Making periodic reports directly available to the | 5. Internal recognition. | | worker himself rather than to the supervisor | | | 6. Encouraging New and more difficult task | 6. Growth andlearning. | | notpreviously handled. | | | 7. Assigning individuals specific or specialized | 7. Responsibility, growth and advancement, | | tasks enabling them to become experts. | | Job enrichment, as Herzberg concludes seeks to improve both task efficiency and human satisfaction by means of building into people’s jobs, quite specifically, greater scope for personal achievement and recognition, more challenging and responsible work,’ and more opportunity for individual advancement and growth. It is concerned more incidentally with matters such as pay and working conditions, organisational structure, communication, and training, important and necessary though these may be in their own right. Self-check Exercise-3 Q.1 Explain the principles of vertical job loading given by Herzberg. 12.6    Criticism Herzberg’s motivation -hygiene theory has received a great deal of attention both in management literature in management development training. Due to it prominence it has also been critically discussed by many management thinkers: 1.    One limitation of Herzberg’s original study and conclusions is that the subjects consisted of engineers and accountants. Their response may not hold true for non professional worker’s In fact, some testing of Herzberg’s model on blue collar worker showed that some of Herzberg’s maintenance factors (pay, jobsecurity) are regarded as motivational factors by blue collar workers. 2.    A method bias led to the result Herzberg obtained. The research technique Herzberg and his associates used was a semi-structured “incident call” method. A subject was asked to remember either a ‘good’ or‘Bad’ experience at work, which is usually influenced b the employees memory. The criticism ofsuch research method is that a person attributes successful event to oneself and unsuccessful ones to others. 3.    Hunt and Hill doubted whether are factors leading to satisfaction and dissatisfaction are really differentfrom each other. It has been seen through various studies that achievement, recognition and responsibilityseem important for both satisfaction an dissatisfaction while such dimensions as security, salary and workingconditions are loss important. Locke says, that the individual characteristics and personality differences would lead different reactions to the factors classified as motivators and hygiene factors. 4.    Another group reviewed several studied which showed that on factor can job satisfaction for one person and job dissatisfaction for another. They concluded that further research is needed to be able to predict in what situations worker satisfaction will produce greater performance, Herzberg assumes that there is as relationship between satisfaction and productivity. But the research methodology be used looked only at satisfaction not at productivity. To make such research relevant, one must assume a high relationship betweensatisfaction andproductivity. 5.    Herberg has based his studies which were based on one or the other types of ‘employees in an organisation. The conclusions which were derived cannot have universal application. Some studies wereconducted another cultural his theories are not the answer for all motivations problems in organisation, but may provide a air idea to make an attempt to understand a work situation in a particular environment. 6.    In addition to criticism of the two factor theory that underlies job enrichment, some important theory that underlies job enrichment, some important issues are raised against the later. The job enrichment cannot makes no allowance for difference among people in their reactions of enriched work. Job enrichment isprobably appropriate for some individuals and in appropriate for others. 7.    Herzbergs job enrichment has to do with the measurement of the presence of absence of motivating factors but does not provide with systematic method or technique through which their extent can be seen. Consequently, no accurate empirical tests can be carried out to see the level of motivation and satisfaction. 8.    Job enrichment is successful only when it increases responsibility, increases the employees freedom and independence, organizes task so as to allow workers to do a complete activity, and provides feedback to allow individuals to correct their own performance. Furthermore, job enhancement efforts will only be successfulif the individuals in the enriched job find their means enrichment’. 9.    The contribution of Fredrick Herzberg in the field of motivation at work cannot be ignored, while even considering the strong criticism sighted above... Maslow’s ideas have been further extended by him and made more applicable to the rock situation. In adaptation, he has drawn attention to the critical importance of job centered factor in work motivation which not beer given much attention by behavioral scientists. Self-check Exercise-4 Q.1 Critically evaluate the concepts given by Herzberg. 12.7    Summary Herzberg conducted studies using ‘critical incidents’ method and developed theories of motivation-hygieneand job enrichment. Herzberg found in his studies duality of attitudes and called them dissatisfies and satisfiers. The dissatisfies are called as ‘hygiene factors’ and satisfiers ‘motivational factors’. Herzberg divides peopleworking in organizations into two groups and calls them ‘hygiene seekers’ and ‘motivation seekers’ and also explain their characteristics. Herzberg two factor theories are criticized based on methodology and conclusion.Many consider the existence of separate scale of satisfaction and dissatisfaction as not valid. It is argued thatsome factors may be satisfiers and dissatisfies depending on the levels of works and context of work. 12.8 Glossary Satisfiers — Satisfiers are motivation givers. Dissatisfies — Dissatisfies are hygiene givers. 12.9 Answers to Self - Check Exercises Self-check Exercise-1 Ans 1. Refer to section 12.3 Self-check Exercise-2 Ans 1. Refer to section 12.4 Self-Check Exercise-3 Ans 1. Refer to section 12.5 Self-Check Exercise-4 Ans 1. Refer to section 12.6 12.10    References/Suggested Readings •    Prasad, D. Ravindra, Prasad, V.S. and Satyanaryana, P.‘Administrative Thinkers’, Sterling PublishingHouse, New Delhi, 2009. •    Laxmikant,M. ‘PublicAdministration’Fifth Edition, Tata McGraw-Hill Publishing Company Limited,New Delhi,2016. •    Avasthi, Dr. A., And S. R. Maheshwari, ‘PublicAdministration’30th Edition, Laxmi NarayanAgarwal, Agra, 2009. •    Arora, K. Ramesh and Batra, K. Satish., ‘Governance and Development, Aalekh Publications,Jaipur, 2011. •    Bhattacharya., M. ‘New Horizons of Public Administration’, 7th Edition, Jawahar Publishers and Distribution, New Delhi, 2008. •    Fadia., Prof. B.L. & Fadia., Dr. K. ‘Public Administration: theories and concepts’ Sahitya BhavanPublications,Agra, 2009. •    Sharma, M.P. ‘Public Administration Theory and Practice’ Kitab Mahal, Allahabad, 1960. 12.11    Terminal Questions a.    What are the process of enriching job? b.    Make a chart of satisfiers factors and dissatisfiers factors? c.    Describe about the characteristics of hygiene and motivation seekers? ***** UNIT-13MARRY PARKER FOLLETT (1868-1933) Part-1 Structure 13.1    Introduction 13.2    Learning Objectives 13.3    Constructive Conflict Self-check Exercise-1 13.4    Resolution of conflict Self-check Exercise-2 13.5    Bases of Integration Self-check Exercise-3 13.6    Obstacles to Integration Self-check Exercise-4 13.7    Summary 13.8    Glossary 13.9    Answer to Self-Check Exercises 13.10    References/Suggested Readings 13.11    Terminal Questions 13.1    Introduction Mary Parker, Follett, a versatile genius having keen and deep insights into the issues of management and industry was born in 1868, in Boston, USA. She got education in Political economy. Political Science, Philosophy, and Law from Cambridge College. Her approach to management was psychological and social. It is surprising that she had no contact with those who were concerned with the Hawthorne Experiments. “But the findings of those in when they appeared in their full form in 1930s the conclusions drawn from the Hawthrone Studiescan be recognized as reflecting principles of a fundamental tenet that Follett had advanced from her ownobservations of the industrial situation.” She was a great writer. She took care to present her original ideas in simple and lucid style. Her main concern was human philosophy and character. She believed in togetherness and group thinking in management.She felt the need of harmony between owners and labourers which she thought is possible through integration. Follett firmly believed that individuals could only become whole persons through their relationships with others within organizations. She saw management as “the art of getting things done through people,” and felt that the distinction between managers (order-givers) and subordinates (order-takers) was artificial, overshadowing the natural partnership that existed between labor and management. Follett believed strongly in the power of groups, where individuals could combine their unique talents to achieve something greater. Her "holistic" model of control didn’t just focus on individuals and groups, but also considered the broader influences of factors like politics, economics, and biology. Follett's approach was ahead of its time, recognizing that management wasn’t just about what happened within an organization but also about its relationship with the external environment. By incorporating the wider organizational environment into her theory, she laid the foundation for management theories that recognized the importance of both internal and external relationships. Many modern management theories now draw from Follett’s ideas in acknowledging the broader context of management. (Henry C.-Metcalf); Chicago A.W. Shah & Co. ‘The collected Papers of Mary Parker Follet (Edited by M. Metcalf and L. Urwick) London, Pritman-iN.Y., Harper & Sons. Lectures in Business Follet (Edited by L U Pitman. Follett is regarded as ‘prophet’in management philosophy. Harold Pollard whole; “In the field of managementthought there can be no one more deserving of this title than Follett. Almost everything she said and wrote in the 1920s has been ‘rediscovered’ and amplified he the psychosociologists of the 1950s and 1960s. But in herday and age, she was almost a lone voice crying in the wilderness. 13.2    Learning Objectives After studying this lesson, the learner will be able: -        To Know about the life sketch of M.F. Follett -    To fell about the constructive conflict in the organization. -    To comprehend about the bases of Integration. -   To discuss about the Follett’s Theory of Administration and law of the situation. 13.3    Constructive Conflict Conflict is inevitable in life and at work. Marry Parker Follett advances the idea of “constructive conflict recognizing thereby that conflicts shouldbe regarded as a normal .process in any activity ofan organization by which socially valuable differences register themselves for the enrichment of all concerned.” It can be used constructively or destructively. For Follett, conflict is neither inherently good nor bad and should be approached without emotion or moral judgment. She viewed conflict not as a form of warfare, but as a manifestation of differences—whether in opinions, interests, or perspectives—not only between employers and employees but also among managers, directors, or any individuals where differences arise. Integrationists not only accept conflict, but also encourage it in a regulated way. This approach that aminimum level of conflict needs to be maintained to shake the group out of its complacency and to make theminnovative and creative. A large number of social scientists like Robins (1973. ), Boulding (1971), Dalton (1950), Katz (1974), Mcgor (1367), Schimidt (1974), Pareek (1982), and other opine that ‘conflict genrates aclimate, wherein stagnant organizations are rejuvenated.’ While the behavioural approach accepted conflict, the integrationist view encourages conflict on the ground that a harmonious, peaceful, tranquil and cooperative group is prone to becoming static, apathetic andnon responsive to need for change and innovation.” Thus, groups require disharmony as web as harmony, dissociation as well as association and conflicts within them are by no means altogether disruptive factors.” Self-check Exercise-1 Q.1 Explain the concept of constructing conflict given by MP Follet. 13.4    Resolution of Conflict Follett feels that conflicts can be solved by the following three methods, i.e. Domination, Compromise andintegration. (a)    Domination Dominance is identical with “power over” that is “the power of some person or groups over some other person of group.” Dominance leaves habits and beliefs unchanged Domination is based ‘on the huge power available with one party as compared to the other. It makes use of this power to manipulate and exploit individual. In this way, the less powerful party cannot dictate and hence accept domination even without likingit. (b)    Compromise In this method both parties part with something and compromise is reached at some point which they are supposed to agree. This is traditional method of resolving conflicts. There is no distinct winner or loser or because each party is expected to give up something of value for a concession. It is based on a simple give and take process and typically involves negotiation and a series of sacrifices. The amount given up by eachparty in conflict, however, will be in direct relation to its strength. Bargaining can help resolve a conflict, but it often lacks transparency and real problem-solving. Typically, each side starts by demanding more than what they actually expect to receive. For bargaining to be effective as a conflict resolution strategy, both parties must have relatively equal power. Otherwise, the stronger group may simply impose its will, leaving the weaker group without any leverage for concessions. Bargaining is also more likely to succeed when there are multiple acceptable alternatives that both groups are willing to explore. Without such options, bargaining may lead to a deadlock. (c)    Integration In Follett’s words, “the first rule for obtaining integration is to put your cards on the table, face the realissue, uncover the conflict, bring the whole thing into the open. Self-check Exercise-2 Q.1 What are the various methods of resolving conflicts in an organization? 13.5    BASES OF INTEGRATION Follett describes three steps for integration. 1st Step In the first step, there is a need to bring the differences in the open rather than suffering with them. We cannot hope to integrate, she asserts, “sour differences unless we know what they are.” Care must be taken to bring the vital points in the open rather than unimportant points. It means to analysereal issues affecting conflict. 2nd Step The second step is the breaking up the whole into their constituent parts. It means analyzing the concreteissues inquestion. To Follett, all language used is symbolic, and therefore, one should be on one’s guard to ‘know as to whatis being symbolized. Integration not only involves breaking up of the whole but sometimes one has to do the opposite. It is necessary to articulate the whole demand, the real demand which is being obscured by miscellaneous minor claims or by ineffective presentation. 3rd Step Anticipation of conflict is the third step. Anticipation of conflict does not mean the avoidance of conflictbut responding to it differently. The responses and reactions of the two parties to each other and the way that those responses and reactions affect the evolving situation must be fully realized. According to Follett, the major objective of management should be the attainment of integrative unity. A business should function smoothly and noiselessly like a well-designed, well-, constructed, well-lubricated machine. There should beperfect coordination between its various parts. There will be some amount of friction, for no movement is possible without friction. There are conflicting interests in every business but these should be so reconciled asto achieve maximum efficiency. By dominance only one side gets what it wants by compromise neither side gets what it wants: by integrationwe find a way in which both side may get what they wish. In this way one is domination, which means a victory for one side or the other. The second is compromise which means each side gives up something in order to have peace. The third is integration which means neither side sacrifices anything and both sides gain. Integration occurs when difference are brought into the open when facts are presented. The first rule then for obtaining integration, is to put your cards on the table, face the real issue, uncover the conflict and bring the whole thing into the open. In this way this involves breaking the demands and interests of the both sides and finding the whole demand, which is being obscured by miscellaneous minor claims or by ineffective presentation. Thus integration means the creation of a novel solution that penalizes no one and that becomesthe only sure base for progress. Mary Parker Follett says it is realized that greater participation in the affairs of the organizations is not a simple matter and for it to be effective, not only will it be necessary to create appropriate machinery andprocedures but changes will also have to be brought about in the management attitudes and skills of staff in upper echelons of administration. The polarization of differences of views of the management and the employeescan only be avoided by using the medium of staff organizations for the better ventilation of their grievancesand the expression of their needs and problems. We must encourage the process of integration of management as it would lay the solid foundations for harmonious relationships and lesser staff problems. Self-check Exercise-3 Q.1 What are the various steps for integration as suggested by MP Follet? 13.6    Obstacles to Integration Integration is difficult to achieve as it requires, interference, and an art and science to solve the obstaclesin the way of integration. Only deep insight and mature judgment can help to reach integration. The difficulty to integration arises from the fact that people enjoy and like domination rather than integration. Another difficulty in achieving integration is the emphasis laid on theory rather than practical solution. “Fourth problem is the use of language. Language used, Follett says, must be suitable to reconciliation and should not arouse antagonism and perpetuate the conflict. Sometimes language used even results in newdisputes which were not there earlier and making situation more complicated. Other obstacles are the undue influence exerted by leaders and lack of training to those who are engagedin the process of integration. Training is needed in the art and science ofco operative thinking, to understandthe technique of integration. Follett says that there are four important steps in giving orders: (1) a conscious attitude— realize the principles through which it is possible to act on in any matter; (2) a responsible attitude to decide which of the principles we should act on; (3) an experimental attitude—try experiments and watch results; (4) pooling theresults. In order that the orders are accepted. Follett suggests three things viz., (1) building up of certain attitudes; (2) providing for their release; and (3)augmenting the released response as it is being carried out. To Follett, both giving and receiving orders is a matter of integration through circular behaviour. There aretwo dissociated paths in the individual Therefore, before integration can be made between order giver and order receiver, there is need for integration to be made within the individual. An order should seek to unite, tointegrate the dissociated paths. Follett creative experience discusses about circular response..She says: “The concept of circular response developed in creative experience in later essays and lecturers, is her principal contribution to the analysis of failures of integration. Circular response rests upon the theory that the unit of social analysis is the pattern of relations between actor conceived as a single situation produced by a union of their interests. No response by an actor is .wholly predictable for he must continually modify his behaviour to adjust to expect responses of others, who constitute his environment. This modulation to both theactivity and the sentiments of the actors in an environment, constitutes circular response. As Follett puts it “The most fundamental thought about all this is that reaction is always reaction to relating. I never react toyou but you plus me; or to be more accurate, it is plus—you reaction to a you—plus—me.” Yet the actualresponse is still more circular. I can never fight you. I am always fighting you plus me. Employees do notrespond only to their employers, but to the relation between themselves and their employer circular behaviouron the basis of integration gives us the key to constructive conflict. Self-check Exercise-4 Q.1 Explain the concept of constructing conflict given by MP Follet. 13.7    Summary Mary Parker Follett's concept of constructive conflict highlights the potential for conflicts to drive positive change and innovation within organizations. By advocating for integrative solutions where parties collaborate to find mutually beneficial outcomes, Follett emphasized the importance of viewing conflicts not as disruptions, but as opportunities for growth and improvement. Her ideas encourage a shift from adversarial approaches to conflict resolution towards more cooperative and inclusive strategies, which can lead to enhanced creativity, better decision-making, and stronger organizational cohesion. Follett's pioneering thoughts on constructive conflict remain highly relevant, offering valuable insights for modern management practices and the fostering of healthy, dynamic workplaces. 13.8    Glossary •    Obstacles- a thing that blocks one’s way or prevents or hinders progress. •    Integration- The action or process of integrating. 13.9    Answer to Self-Check Exercises Self-check Exercise-1 Ans 1. Refer to section 13.3 Self-check Exercise-2 Ans 1. Refer to section 13.4 Self-Check Exercise-3 Ans 1. Refer to section 13.5 Self-Check Exercise-4 Ans 1. Refer to section 13.6 13.10    References/Suggested Readings •    Prasad, D. Ravindra, Prasad, V.S. and Satyanaryana, P.‘Administrative Thinkers’, Sterling PublishingHouse, New Delhi, 2009. •    Laxmikant,M. ‘PublicAdministration’Fifth Edition, Tata McGraw-Hill Publishing Company Limited,New Delhi,2016. •    Avasthi, Dr. A., And S. R. Maheshwari, ‘PublicAdministration’30th Edition, Laxmi NarayanAgarwal, Agra, 2009. •    Arora, K. Ramesh and Batra, K. Satish., ‘Governance and Development,Aalekh Publications, Jaipur,2011. •    Bhattacharya., M. ‘New Horizons of Public Administration’, 7th Edition, Jawahar Publishers and Distribution, New Delhi, 2008. •    Fadia., Prof. B.L. & Fadia., Dr. K. ‘Public Administration: theories and concepts’ Sahitya BhavanPublications,Agra, 2009. •    Sharma, M.P. ‘Public Administration Theory and Practice’ Kitab Mahal, Allahabad, 1960. 13.11    Terminal Questions a.    What are the resolution of conflict as per the view point of M.F. Follett? b.    Discuss about the obstacles of integrations. c.    Critically examine the differences between fact control and then control. UNIT-14MARRY PARKER FOLLETT (1868-1933) Part-2 Structure 14.1        Introduction 14.2       Learning Objectives 14.3       The Law of Situation Self-check Exercise-1 14.4       Follet on Principles of Organization Self-check Exercise-2 14.5      Summary 14.6       Glossary 14.7       Answer to Self-Check Exercises 14.8       References/Suggested Readings 14.9       Terminal Questions 14.1    Introduction Mary Parker Follett, a versatile genius with profound insights into management and industry issues, was born in 1868 in Boston, USA. She was educated in political economy, political science, philosophy, and law at Cambridge College. Her approach to management was both psychological and social. Remarkably, she had no contact with those involved in the Hawthorne Experiments. However, when the findings from the Hawthorne Studies were fully published in the 1930s, it became evident that their conclusions reflected principles that Follett had already identified through her own observations of the industrial landscape. 14.2    Learning Objectives After studying this lesson, the learner will be able: •    To Know about the life sketch of M.P. Follett •    To fell about the constructive conflict in the organization. •    To comprehend about the bases of Integration. •    To discuss about the Follett’s Theory of Administration and law of the situation. 14.3    LAW OF THE SITUATION: (Depersonalizing Order) Mary Parker Follett, a pioneering figure in the field of administration, introduced the concept of the "law of situation." According to this idea, true authority comes from the situation itself, rather than being tied to any inherent authority of the administrator. Follett expressed that, "One person should not give orders to another; instead, both should agree to take their orders from the situation." She suggested that the challenge lies in avoiding two extremes: excessive bossiness in giving orders, or the complete absence of orders. Her solution was to depersonalize the process of giving orders and to involve everyone in understanding the situation at hand. By focusing on the situation, everyone could agree to follow the orders that emerge naturally from it, eliminating the need for one person to give commands to another. Self-check Exercise-1 Q.1 Write a short note on law of situation given by MP Follet? 14.4    MP Follet on Principles of Organization Power She defines power as “the ability to make things happen, to be a causal agent, to initiate change. Power isthe capacity to produce intended effects. It is an instinctive urge inherent in allhuman beings. She makes a distinction between power over and power with.’ The former may tend to be ‘coercive-power’ while the latter is a jointly developed coactive power’. Management Writers and political scientists talk about “the delegation of power” or the separation, transfer, or conferringpower. Follett maintains and they are wrong and they fail to distinguish between power and 163 authority. Poweris defined by Follett, “simply the ability to make things happen, to be a casual agent, to initiate change.” Its sources and uses should be carefully studied. In any case, whether it is good or bad depends on the purposesfor which it is used. Follett believed that "power with" is superior to "power over," as it fosters self-development, enhances understanding, reduces friction and conflict, and encourages collaboration. While she acknowledged that it may not be possible to completely eliminate "power over," she advocated for minimizing its presence. According to Follett, this could be achieved by integrating desires, following the law of situations, and through functional unity. In a system of functional unity, each individual has their own specific role and should be granted the authority and responsibility that aligns with their function. She also argued that power cannot simply be delegated, handed out, or taken from someone, as it arises from knowledge and competence. However, she believed that we can create conditions that facilitate the growth of power. Authority Mary Parker Follett analyses the underlying forces which find their expression in what is popularly referred to as authority. It is her conclusion that the influence exerted by an individual is derived ultimately from the nature of the task itself and from the situation in which the task is to be performed. Furthermore what appears as authority and is displaced in a specific decision is in reality but the final outward expression of anentire series of tasks, action, and decision which have preceded this is so called decision or act of authority. Although she discusses delegation and acknowledge expertise as a base for authority. Miss Follett makes the point that authority is a far more complex concept than had previously been believed and its roots lie deep inthe task and the situation in which it occurs. This belief in function as source of authority and responsibility, and the conclusion that final authority as evidenced by the decision itself is but one step inan entire processof particular importance to anyone studying organization behaviour and structure. Follett believed that authority arises from the task being carried out and the situation at hand, suggesting that authority is derived from function. She argued that central authority, which comes from the Chief Executive, should be replaced by authority based on function, where each individual holds final authority within their assigned responsibilities. In her view, authority can be entrusted to others, but this process should not be confused with delegation. She clearly stated that the term "delegation of authority" should become an outdated concept. Control Control is an important method to achieve organizational goals. Unlike classical thinkers, Follett believes infact-control rather than man-control and in correlated- control than super imposed control. Her concept of control was based on unity and cooperation among all elements, material Wind people, in a given situation. She said that ‘the aim of organization engineering is control though effective unity.’ Shearguedthat control cannot be established without bringing the integrative unities, which are self-regulating,self-directing organism. The managers must not pay attention to single elements, but complex interrelationships;not persons, but situation. In business, social control must develop from the process of integration. Co-ordination Perhaps the most original and constructive thought on the concept of coordination has been that of Mary Parker Follett, who has shifted principles from techniques and clarified the conditions for creating synchronizedeffort. Follett favours “collective planning on a national or even international level,” but at the same time she feels that central government planning imposed the top down is doomed to failure. She said, “The opposition oflaissez faire is not coercion but coordination,” and “coordination is by its very nature a process of auto governed activity the reciprocal relating of all the factors in situation.” She pointed out three principles forachieving coordination as follows? 1.    Direct Contact The principle of direct contact states that coordination must be achieved through interpersorial vertical,and horizontal relationships of the people in an enterprise: “Cross relations between heads of departments instead of up and down the line through the chief executive.” People exchange ideas, ideals; prejudices, andpurposes, through direct personal communication much more efficiently than by any other method, and with the understanding gained in this way, they find means to achieve both common and personal goals. 2.    Co-ordination in the Early Stages The second principle stresses the importance of achieving coordination in the early stages of planning and policy-making, so that policy may be created by responsible people, rather than later meetings and then can only try to resolve differences between policies already evolved by isolated groups. Follett said that, “The process of the interpretation of policies must begin before they are completed, while they are still in theformative stage.” 3.    Reciprocal Relationship The third principle states that all factors in the situation are reciprocally related. This means equal attentionto all variables in the social system. “Coordination in these various forms is a continuing process since in any complex social environmentthere exists many points of creativity and established policies can never be executed as designed but mustconstantly be reformed in consonance with basic goals.” Finally, all those principles must be underpinned byinformation based on continuous research. Follett said that “the information itself would not be a form of control, for there would be a tendency to act in accordance with information given if it were accepted asaccurate.” Planning According to Follett, national planning need not be in opposition to individual. If national planning is basedon the principle of “the interpenetration of authority instead of super-authority it could give scope to individualinitiative by showing in the way to combine effectively with other individual initiative by a process not ofcompromises butintegration.” Leadership The leaders’ main function is to evoke, that is to draw out from each of his people, their fullest potentialities.Everybody has some capacity, some ability and some potential for development. The leader sees to it that hedevelops and uses it for organizational work. The leader is like a good teacher. He guides and inspires hissubordinates. His men therefore work with him enthusiastically. The Annual Report of Larsen and TubrdLtd., 2006-07 follows the ideas of Follett. To quote the report: The quality of leadership more than any othersingle factor determines the success or failure of an organization. People whose talent are not exploited become disenchanted and disruptive. The important thing is that managers must involve employees; employees’lead employees. Follett has very perceptively observed that the skills of the executive are not painted on the outside. A good executive is like an iceberg. His skills and abilities are not immediately visible. He needs to possess many intangible qualities, such as good judgment, foresight, understanding of men, courage and coolness.These qualities are not immediately evident. Follett believed that traditional views of leadership were evolving due to shifts in human relations and advancements in management practices. For her, a leader wasn't simply the president of an organization or the head of a department, but rather someone who could see the broader context of a situation. A true leader understands how different elements are interconnected and how to transition smoothly from one situation to another. Leadership, according to Follett, involves inspiring others to willingly work towards shared goals. She described a leader as someone who can energize the group, encourage initiative, and bring out the best in each individual. Follett emphasized that a leader must have a clear understanding of the bigger picture and recognize the interrelations of all factors involved. She believed leaders could be found throughout an organization, not just at the top. For Follett, coordination, defining purpose, and anticipation were the key functions of a leader. Leaders also need to organize the group's experiences and transform them into collective power. Follett argued that leadership is not just a trait people are born with; it can be cultivated through education and training in organizational management. She asserted that the true role of a leader is to enhance individuality, draw out the potential of others, and create group power, rather than focusing on personal power. She was an advocate for multiple leadership, rooted in integrative thinking and the ability to adapt to changing situations. Her biographer, Pauline Graham, captures Follett's contribution by saying that her achievement lay in creating a management philosophy that deeply understood human nature. Follett aimed to integrate and unify all aspects of management to form a more effective and cohesive whole. Self-check Exercise-2 Q.1 Write a short note on co-ordination as given by MP Follet. Q.2 Write a short note on Leadership as given by MP Follet. 14.5    Summary Professor Wills comments, “Much of what Follett said in her writings has become accepted and may now seem commonplace. But the interested managers in problems which writers such as Taylor were not dealingwith, and indeed, considered unimportant. She took large questions and tried through examples and - suggestions to make the problems susceptible to science. Her writings are a rich reward for anyone who takes them up. The simplicity of the analysis must not be allowed to conceal their true value and relevance. The ideas of Mary Parker, Follett were accepted by eminent thinkers later on as highly relevant. Mary Parker Follett, in Creative Experience and Dynamic Administration, writes that it is possible to conceive conflict as not necessarily as wasteful outbreak of incompatibilities, but a normal process by which sociallyvaluable differences register themselves for the enrichment of all concerned. Rensis Likert in his book, “New Patterns of Management”, has rightly said that conflict and differences of opinion always exist in a Healthy, virile organization, for it is usually from such differences that new and better objectives and methods emerge. Differences are essential for progress, but better, unresolved differences can immobilize an organization. The central problem, consequently, becomes, not how to reduce or eliminate conflict, but how to deal constructively with it. Effective Organizations have extra-ordinary capacity tohandle moreconflict. Mary Parkert Follett ideas are relevant in 21st Century. She advocated ideas far ahead of her times. The dynamics of the confect plays a vital role in the modern analysis of organizational behaviour. Conflict can lead to innovation and change; it can energize people to activity, develop protection for something else in the organization (in the divide and conquer sense), and be an important element in systems analysis of theorganization. Traditionally the Management of Organisational conflict was based on simplistic assumptions. Formal authority and classical restricting were used in an attempt to eliminate it. The more modem approach is to assume the inevitability of conflict, recognize that it is 168 not always bad for the organization, and try to manage it effectively rather than merely try to eliminate it. Even we may promote conflict for temporary purpose to ensure organizational efficiency. 14.6    Glossary • Reciprocal- bearing on or binding each of two parties equally. 14.7    Leader: The leader is like a good teacher. He guides and inspires hissubordinates. His men therefore work with him enthusiastically. 14.8    Answer to Self-Check Exercises Self-check Exercise-1 Ans 1. Refer to section 14.3 Self-check Exercise-2 Ans 1. Refer to section 14.4 14.9    References/Suggested Readings •    Prasad, D. Ravindra, Prasad, V.S. and Satyanaryana, P.‘Administrative Thinkers’, Sterling PublishingHouse, New Delhi, 2009. •    Laxmikant,M. ‘PublicAdministration’Fifth Edition, Tata McGraw-Hill Publishing Company Limited,New Delhi,2016. •    Avasthi, Dr. A., And S. R. Maheshwari, ‘PublicAdministration’30th Edition, Laxmi NarayanAgarwal, Agra, 2009. •    Arora, K. Ramesh and Batra, K. Satish., ‘Governance and Development,Aalekh Publications, Jaipur,2011. •    Bhattacharya., M. ‘New Horizons of Public Administration’, 7th Edition, Jawahar Publishers and Distribution, New Delhi, 2008. •    Fadia., Prof. B.L. & Fadia., Dr. K. ‘Public Administration: theories and concepts’ Sahitya BhavanPublications,Agra, 2009. •    Sharma, M.P. ‘Public Administration Theory and Practice’ Kitab Mahal, Allahabad, 1960. 14.10    Terminal Questions 1.Wha t is the law of situation as per the view point of M.F. Follett? 2.    Critically examine the differences between fact control and then control. UNIT-15PETER DRUCKER Part-1 Structure 15.1    Introduction 15.2    Learning Objectives 15.3 Contribution to Management Thought Self-check Exercise-1 15.4    Top Management-Need of Team Structure Self-check Exercise-2 15.5 Need ofAttending on Priority Top Managerial Challenges and Opportunity. Self-check Exercise-3 15.6    Planning Self-check Exercise-4 15.7    Summary 15.8    Glossary 15.9    Answer to Self-Check Exercises 15.10      References/Suggested Readings 15.11      Terminal Questions 15.1    Introduction His major contribution is in providing excellent literature in management and administration serving as areputed journalist, consultant and an eminent scholar and teacher. He has been awarded with national andinternational awards. 15.2    Learning Objectives After studying this lesson, the learners will be able: -  To understand the role and significance of Management. -    To analyze top Managerial Challenges and Opportunities. -    To Know about decentralized Model of Peter Drucker -  To state that whether Management by objectives can Promote efficiency? 15.3    Contribution to Management Thought His contributions is immense and everlasting. His ideas have inspired large number of “students, Manager,Business Organizations and teachers. He is a prolific writer Role and Significance of Management (Drucker) Management is work, and as such it has its own skills, its own tools, its own techniques. For Managementis the organ, the life-giving, acting, dynamic organ of the institution it manages. Without management, a business cannot function effectively, and without an enterprise, there would be no need for management. However, in the absence of structured management, what remains is not an organized institution but merely a disorganized crowd. An institution, by its very nature, serves as an integral part of society and exists solely in relation to individuals. The role of any institution or organization is not determined by its mere existence or activities but by the value it contributes to society and the economy. Management, the Drucker maintains throughout, is a discipline, or at least is capable of becoming one. it is not just common sense. It is not just codified experience, it is at least potentially an organized body ofknowledge. The emergence of management in this century may have been a pivotal event of history. It signaled amajor transformation of society into a pluralist society of institutions of which management is the effective organ. Management, after more than a century of development as a practice and as a discipline, burst intopublic consciousness in the management boom that began after World War II and lasted through the 1960s.What has the boom accomplished? What have we learned? and what are the new knowledge we need, the new challenges we face, the new tasks ahead, now that the management boom is over? “The manager is the dynamic, life-giving element in every business. Without his leadership the ‘resourcesof production’ remain resources and never become production.” Peter F. Drucker has rightly pointed out that “Management is the crucial factor in economic and socialdevelopment. It was obvious that the economists’ traditional view of development as a function of savings and capital investment do not produce management and economic development. On the contrary, management produces economic and social development and with its savings and capital investment. It becomes apparentthat the developing countries are not underdeveloped, they are under managed. Self-check Exercise-1 Q.1 What is the role of management according to Drucker? 15.4    Top Management-Need of Team Structure Top management is inherently a team effort rather than the responsibility of a single individual. It is rare for one person to possess all the diverse qualities required for such a role. Additionally, when the responsibilities of top management are carefully examined, it becomes clear that the workload is far too extensive for a single person to handle alone. In all but the smallest organizations, at least one dedicated individual is needed to focus entirely on these tasks. Moreover, one or two others must also contribute significantly, taking on specific responsibilities where they act as leaders and hold primary accountability. There are additional reasons why the one-man top management tends to malfunction. Every top- management succession in a one-man top management is a “crisis” and a desperate gamble. No one in the business except the former top man has really done the top-management work and proven himself in it. To recognize the team nature of the top-management job is particularly important in the small business theone- man top management is a major reason why business fail to grow. But the job itself is a team job to begin with. Whatever the titles on the organization chart, the top-management job in a healthy company is almost always actually done by a team. We can now summarize the basic specifications for a functioning top-management structure: The startingpoint is an analysis of the top-management tasks. Each top-management task must be clearly assigned to someone who has direct and full Responsibility for it.This requires a top-management team, with responsibility assigned to fit the personalities, qualifications, and temperaments of the members. Whoever has assigned responsibility for a top- management activity is “top management” whatever his title.Except in the small and simple business no one who has top management responsibilities does any but top management work. The complex business requires more than one top- management team, each structured according to theserules. No business can do better than its top management will permit; the “bottleneck” is, after all, always 173 “at the head of the bottle.” Of all the jobs in the enterprise the top- management job is the most difficult one toorganize. But it is also the most important one to organize. Self-check Exercise-2 Q.1 Write a short note on top management given by Peter Drucker. 15.5    Need of Attending on Priority Top Managerial Challenges and Opportunities The job, task, and responsibilities of worker and foreman in the plant, key-punch operator, and secretary in the office, metallurgist in the engineering lab, field salesman arid branch manager of a bank or insurance company are little affected by size, complexity, growth, or diversity. Even innovation has an effect on most people in an organization only after it has become an accomplished fact. But the structure, the behaviour, the tasks, and the strategies of top management are profoundly molded by changes in size and complexity, by diversification, growth, and innovation. And, in turn, top management-and only top management-can make the strategic decisions that lead to growth, diversification, or innovation. The managerial strategies that relateto a company’s basic structure have received almost no attention. They may, however, be of greater importancethan strategies with respect to finances, product-development, or marketing on which the discussion has focused. Size, diversity, complexity, growth, and innovation are, above all, managerial challenges and opportunities to top management and make managerial demands on it. Specifically, there are five major areas to be considered: 1.    Managing smallness and bigness-that is, the management requirements of size by itself. “How big is big?” “What are ‘right’ sizes and what are ‘wrong’ sizes?” What are the limits beyond which further growthis degenerative?” And, “What are the implications of size for business strategy?” 2.    The second major area is the management of complexity and diversity. “How complex is complex?”“How complex is too complex?” And, “What requirements does complexity make?” A separate problem in complexity that deserves some discussion is that of the limits on the family-ownedbusiness. “Can it perpetuate itself, “Can it grow beyond small size?” And, “What are its limits in time andsize?” 3.    A special case of complexity, so important as to deserve a separate UNIT, is the most complex of business organizations, the multinational corporation. For here is added to complexities of size, markets,products, and technologies, the complexities of cultures and the complexities of multiple political andgovernmental relationships and restraints. 4    Managing change and growth is the next major topic. “At what point in change and growth does management have to change its characteristics, its structure, its behaviour?” And, “How can it prepare itselfso that it is ready for change and for growth without, at the same time, overloading the company with functions and complexities which, at the present state of the business, it does so require and can ill afford?” 5 . Managing innovation is a topic in itself. “Man is the only animal capable of purposeful evolution; he makes tools.” This insight of Alfred RusselWallace, co-discoverer with Darwin of the principle of evolution, means that man and his social organizationscan innovate. They can create, so to speak, a different animal. Indeed, in a changing environment their survival depends on their capacity to innovate. What does an innovative organization have to be and how does it have to be structured and managed? Self-check Exercise-3 Q.1 What are the major challenges to management as per Drucker? Not in Favour of Bureaucratic Management Peter F. Drucker is against bureaucratic management. He emphasizes creative management, i.e., the manager should be an innovator In his book, ‘ Practice of Management he wrote, “ a business cannot be a bureaucratic a administrative, or even a policy-making job...(it)must be a creative rather an adaptive task. In his words, “in the last analysis, management is practice, its essence is r but doing test is not logic butresults, its only authority is performance. 15.6    Planning There has been a tremendous upsurge in long-range planning these last twenty years. The very idea waspractically unknown a few decades ago. Now it is the rare large company (at least in the U.S. and in Japan)that does not have a long-range planning staff and elaborate long-range plans. It is true that practically every basic management decision is a long-range decision—ten years is a rather short time span these days. Whether concerned with research or with building a new plant, designing a new marketing organization or a new product, every major management decision takes years before it is really effective. And it has to be productive for years thereafter to pay-off the investment of men and money. Managers, therefore, need to be skilled in making decisions with long 175 futurity on a systematic basis. Management has no choice but to anticipate the future, to attempt to mold it, and to balance short-rangeand long- range goals, it is not given to mortals to do well any of these things. But lacking divine guidance, management must make sure that these difficult responsibilities are not overlooked or neglected but taken care of as well as is humanly possible. “To plan is to produce a scheme for future action, to bring about specified results, at specified cost, in a specified period of time. It is a deliberate attempt to influence, exploit, bring about, and control the nature, direction, extent, speed and effects of change. It may even attempt deliberately to create change. It is acarefully controlled and co- activity.” Strategic planning does not substitute facts for judgement, does not substitute science for the manager. It does not even lessen the. importance and role of managerial ability, courage, experience, intuition, or even hunch-just as scientific biology and systematic medicine have not lessened the importance of these qualitiesin the individual physician. On the contrary, the systematic organization of the planning job and the supply ofknowledge to it strengthen the manager’s judgement, leadership, and vision. Decisions Need be Based on Developing Alternatives Making decisions without considering alternatives can lead to undesirable consequences. Peter Drucker emphasizes this point clearly, stating that sound judgment requires having multiple options to choose from. If a decision only allows for a simple "yes" or "no," it is not truly a judgment but rather a risky gamble. Having alternatives provides deeper insight into what is truly at stake. Even when a decision is well thought out, having explored different possibilities ensures that there is a backup plan in case the original choice proves ineffective. Without such alternatives, one risks being unprepared and struggling to adapt when faced with unforeseen challenges. Self-check Exercise-4 Q.1 Write a short note on Planning in the management. 15.7    Summary Drucker states, "In the course of human history, few institutions have emerged as swiftly as management or had such a profound impact in such a short period. In under 150 years, management has radically reshaped the social and economic landscape of developed nations, creating a global economy. The core objective of management remains unchanged: to enable people to work together effectively by fostering common goals, shared values, the appropriate structure, and the necessary training and development to perform and adapt to change. However, the very nature of this task has evolved, largely because management has transformed the workforce from one dominated by unskilled labor to one primarily composed of highly educated knowledge workers. After World War II, it became clear that management is not limited to business management; it applies to all human endeavors that bring together people with diverse knowledge and skills into a single organization." He is rightly called the man who invented the corporate society. He is recognized management thinkereven in the USSR. D. Gvishiani, the Soviet author in his book, “Organisation and Management:A Sociological Analysis of Western Theories”, has mentioned the contributions of Peter brucker very prominently. 15.8    Glossary • Efficiency- an action designed to achieve efficiency or the state or quality of being efficient. 15.9    Answer to Self Check Exercises Self-check Exercise-1 Ans 1. Refer to section 15.3 Self-check Exercise-2 Ans 1. Refer to section 15.4 Self-Check Exercise-3 Ans 1. Refer to section 15.5 Self-Check Exercise-4 Ans 1. Refer to section 15.6 15.10    References/Suggested Readings •    Prasad, D. Ravindra, Prasad, V.S. and Satyanaryana, P.‘Administrative Thinkers’, Sterling PublishingHouse, New Delhi, 2009. •    Laxmikant,M. ‘PublicAdministration’Fifth Edition, Tata McGraw-Hill Publishing Company Limited,New Delhi,2016. •    Avasthi, Dr. A., And S. R. Maheshwari, ‘PublicAdministration’30th Edition, Laxmi NarayanAgarwal, Agra, 2009. •    Arora, K. Ramesh and Batra, K. Satish., ‘Governance and Development,Aalekh Publications, Jaipur,2011. •    Bhattacharya., M. ‘New Horizons of Public Administration’, 7th Edition, Jawahar Publishers and Distribution, New Delhi, 2008. •    Fadia., Prof. B.L. & Fadia., Dr. K. ‘Public Administration: theories and concepts’ Sahitya BhavanPublications,Agra, 2009. •    Sharma, M.P. ‘Public Administration Theory and Practice’ Kitab Mahal, Allahabad, 1960. 15.11    Terminal Questions 1.    Write a short note on Management by Objectives (MBO). 2.    “The Manager is the dynamic, life giving element in every business” Discuss. UNIT-16 PETER DRUCKER Part-2 Structure 16.1    Introduction 16.2    Learning Objectives 16.3    Decentralized Model Self-check Exercise-1 16.4    Need of Good Organization Self-check Exercise-2 16.5    Management by Objectives can Promote Efficiency Self-check Exercise-3 16.6    Business Mission-Customer Satisfaction Self-check Exercise-4 16.7    Poor Performance of Services Institution: Need of Research and Consultancy Self-check Exercise-5 16.8    Summary 16.9    Glossary 16.10    Answer to Self-Check Exercises 16.11      References/Suggested Readings 16.12      Terminal Questions 16.1 Introduction Peter Drucker, often regarded as the father of modern management, was a visionary thinker whose ideas have profoundly shaped contemporary business practices and management theory. Born in 1909 in Vienna, Austria, Drucker pursued a diverse academic background in law, economics, and political science, which laid the foundation for his groundbreaking work. His extensive writings, including seminal books like "The Practice of Management" and "Management: Tasks, Responsibilities, Practices," introduced key concepts such as management by objectives, decentralization, and the knowledge worker. Drucker's insightful analysis and innovative perspectives on management continue to influence and inspire leaders, managers, and organizations worldwide, underscoring his enduring legacy in the field of management. 16.2    Learning Objectives After studying this lesson, the learners will be able: -  To understand the role and significance of Management. -    To analyze top Managerial Challenges and Opportunities. -    To Know about decentralized Model of Peter Drucker -  To state that whether Management by objectives can Promote efficiency? 16.3    Decentralized Model In simple words, an organization is said to be centralised, if most of the powers of decisions are vested inthe top level. A decentralized organization, on the other hand, is ‘the one, in which the lower level managers are allowed to decide. Simply stated, loan’s General Motors Model utilizes centralized control of decentralizedoperations. Many large industrial organizations have designed themselves, after the Sloan Model. One important way, these complex organizations in USAhave overcome breakdowns in communication, control and managerial effectiveness is through centralized control of decentralized operations. Peter Drucker interviewed several GM executives who had worked under the Sloan type of structure. He found that some practical and day-to-day benefits have resulted from this model. These advantages aresummarized by Peter Drucker: 1.    The speed and lack of confusion with which a decision can be made. 2.    The absence of conflict of interest between corporate management and the divisions. 3.    The-sense of fairness, appreciation, confidence, and security that comes when organizationa politicsare kept under control. 4.    The democracy and informality in management where everyone is free to criticize but no one tries tosabotage. 5.    The absence of gap between “the privileged few” top managers and the “great many” subordinatemanagers in the organization. 6.    The availability of large supply of goods, experienced leaders capable to take top responsibility. Self-check Exercise-1 Q.1 What is the decentralized model given by Drucker? 16 .4 Need of Good Organisation Organizational analysis is a technique to ensure the achievement of maximum results with minimum costs, in terms of human and material resources of the organizations. The objective of organizational analysis is to improve pattern of relationships between persons in an organization and to create harmonious arrangement of work with reference to its main objectives. The need for the design of sound organizational structures for an enterprise and their continual evaluation in terms of suitability through organizational analysis has been recognized as an effective means to promote improvement in corporate performance. Peter F. Drucker has rightly observed: “Good organization structure does not by itself produce good performance-just as good constitution does not guarantee great Presidents, or good laws and a moral society. But a poor organization structure makes good performance impossible, no matter how good the individuals may be. He states, “the alternative to autonomous institutions that function and perform is not freedom. It is totalitarian tyranny. The large organisation makes a living possible through knowledge. Knowledge is the veryfoundation of the modern organisation. Self-check Exercise-2 Q.1 Why there is a need for good organization? 16 .5 Management by Objectives can Promote Efficiency For organizational success work activities should be so designed and directed as to support each othertowards the achievement of objectives. It also implies that working relations should contribute to the success of each activity and thus to general effectiveness. The working relations between people are usually described as functional, and structural. Functional relations are derived from the technical nature of the work and where, when and in which sequence it takes place. Structural relations pertain to administrative rules and standards and in particular to the authority and responsibility assigned to individuals. This is known asconvergence of work. Management by objectives is one of the techniques by which executives can improve organizationalperformance and effectiveness. According to George Odiorne, “MBO (Management By Objectives) is a system wherein the superior andthe subordinate managers of an organization jointly define its common goals, define each individual’s majorareas of responsibility in terms of the results expected of him and use these measures as guides for operatingthe unit and assessing the contribution of each of its members. Drucker’s MBO, in his opinion, is a philosophy. “It rests on a concept of human action, human behaviourand human motivation. Finally, it applies to every manager, whatever his level of function, and to anybusinessenterprisewhetherlarge or small. It ensures performance by converting objective needs into personal goals.” Self-check Exercise-3 Q.1 How can MBO promote efficiency? 16 .6 Business Mission-Customer Satisfaction A crucial step in defining what our business is, what it will become, and what it should be is conducting a thorough analysis of our existing products, services, processes, markets, end users, and distribution channels. Are they still relevant? Will they continue to be viable in the future? Do they still provide value to customers, and will they do so moving forward? Do they align with the evolving realities of population trends, market demands, technological advancements, and economic conditions? If not, how can we phase them out or at least stop investing resources in them? If these questions are not asked seriously and systematically, and if management is unwilling to act on the answers, then even the best definition of our business will remain nothing more than an empty statement. Energy will be wasted on defending outdated practices, leaving no time, resources, or strategic vision to capitalize on present opportunities—let alone prepare for the future. ‘Planned abandonment was first discussed and advocated in Peter’s book “Managing for Results.” It first was adopted as a systematic policy a few years later by the General Electric Company. Most long- range planning in large companies, like’ Unilever, focuses on the question “What will our business be?” GE’s strategic business planning developed in the late sixties is an. exception. Its aim is to answer “What should our business be?” Yet GE’s planning does not start out with “What existing product lines and business should we abandon?” and “Which ones should we cut back and deemphasize?” Defining a business's purpose and mission is a challenging, demanding, and uncertain process. However, it is the foundation that allows a business to establish clear objectives, formulate effective strategies, focus its resources, and take meaningful action. Only with a well-defined mission can a business be managed with a focus on performance and long-term success. Self-check Exercise-4 Q.1 Write a short note on Business Mission-Customer Satisfaction? 16. 7 Poor Performance of Services Institution: Need of Research and Consultancy Yet the evidence for performance in the service institutions is not impressive, let alone overwhelming. Schools, hospitals, and universities are all big today beyond the imagination of an earlier generation. Theirbudgets have grown even faster. Yet everywhere they are in crisis. A generation or two ago their performancewas taken for granted. Today they are being attacked on all sides for lack of performance. Services which the nineteenth century managed with aplomb and apparently with little effort-the postal service, for instance, or the railroads-are deeply in the red, require enormous and growing subsidies and give poorer service everywhere. Government agencies, both in national and in local governments, are constantly being reorganizedso as to be “more efficient. Yet in every country the citizen complains ever more loudly of bureaucracy in government. What he means by this complaint is that the government agency is being run for the convenience of its employees rather than for contribution and performance. This is mismanagement. The most persistent critics of bureaucracy in government and in the public service institutions tend to bebusiness executives. But it is by no means certain that business’s own service institutions are any moreeffective than the public-service bureaucracies. The service institutions themselves have become “management conscious.” Service institutions increasinglyturn to business to learn management. In all service institutions, manager development, management byobjectives, and many other c and tools of business management are now common. This is a healthy sign but it does not mean that the service institutions understand the problems of managing themselves It only means that they begin to realize that at present they are not being managed. But the service institution is different fundamentally from business in its “business.” it is different in itspurpose. It has different values. It needs differ objectives, and it makes a different contribution to society. Performance and results are quite different a service institution from what they are in a business. Managing for performance is the one area in which the service institution differs significantly from a business. We have no coherent theory of institutions and their management that would encompass the service institution. Compared to the work done in business management over the last seventy years, little has been done on the management of the service institution. All we can attempt so far is a first sketch. We do understand why the service institution has difficulty in performing. And we can define what isneeded to offset the built-in obstacles in the service institution to performance and results. There are three popular explanations for the common failure of service institutions to perform: •    their managers aren’t businesslike; •    they need better men; and •    their objectives and results are intangible. All service institutions are threatened by the tendencies to cling to yesterday rather than to slough it off,and to put their best and ablest people on defending what no longer makes sense or serves a purpose. Government is particularly prone to this disease. Underlying traditional political theory is the axiom that the functions of government are eternal. There isan implicit belief, held almost with the strength of dogma, that whatever government does is for all times. Yetgovernment is a human activity. Everything human beings do, except ‘their biological and spiritual functions, obsoletes sooner or later. The proper rule for governed today, as for all other institutions, is not, “Whateverwe do we’ll do forever”; the proper rule is, “Whatever we do today will in all likelihood be a candidate forabandonment within a fairly short period of years.” Self-check Exercise-5 Q.1 What are the reasons of poor performance of service institutions? 16.8    Summary Moved by the desire to strengthen the position of capitalism he endeavours at the same time to give due consideration also to some objective trends in production management. Drucker, therefore, tells the industrialists not to fear a limited participation of the workers in the management of production processes. He warns them that if they do not abandon that fear, the consequences may be fatal to them. Drucker realizes that the progress of industrial production demands that the sphere of management be extended and that it should enlist the help of more people at present engaged in the process of production, since isolated individuals areunable to carry out the complex state of operations linked with the management of modern industry. Druckerfails to see, however, that the capitalist mode of production is organically hostile to this objectively developing tendency. On the contrary, he endeavours to prove that the capitalist system of management promotes a democratization ofmanagement. - “He is certainly the greatest management philosopher of any time. He has had extraordinarily perceptive insights ‘management -by objectives’, ‘control by self-control’, ‘federal decentralization’ and many others.These insights have had great impact on practice and on management thinking.” 16.9 Glossary • Priority- The fact or conditions of being regarded or treated as more important than other. 16.10    Answer to Self Check Exercises Self-check Exercise-1 Ans 1. Refer to section 16.3 Self-check Exercise-2 Ans 1. Refer to section 16.4 Self-Check Exercise-3 Ans 1. Refer to section 16.5 Self-Check Exercise-4 Ans 1. Refer to section 16.6 Self-Check Exercise-5 Ans 1. Refer to section 16.7 16.11    References/Suggested Readings •    Prasad, D. Ravindra, Prasad, V.S. and Satyanaryana, P.‘Administrative Thinkers’, Sterling PublishingHouse, New Delhi, 2009. •    Laxmikant,M. ‘PublicAdministration’Fifth Edition, Tata McGraw-Hill Publishing Company Limited,New Delhi,2016. •    Avasthi, Dr. A., And S. R. Maheshwari, ‘PublicAdministration’30th Edition, Laxmi NarayanAgarwal, Agra, 2009. •    Arora, K. Ramesh and Batra, K. Satish., ‘Governance and Development,Aalekh Publications, Jaipur,2011. •    Bhattacharya., M. ‘New Horizons of Public Administration’, 7th Edition, Jawahar Publishers and Distribution, New Delhi, 2008. •    Fadia., Prof. B.L. & Fadia., Dr. K. ‘Public Administration: theories and concepts’ Sahitya BhavanPublications,Agra, 2009. •    Sharma, M.P. ‘Public Administration Theory and Practice’ Kitab Mahal, Allahabad, 1960. 16.12    Terminal Questions 3.    Explain the Decentralized model given by Peter Drucker. 4.    Discuss ‘Poor Performance of Services Institution’. ***** UNIT -17 CHESTER I.BARNARD Part-1 Structure 17.1    Introduction 17.2    Learning Objectives 17.3    Organization as a cooperative system Self-check Exercise-1 17.4    Formal and Informal Organization Self-check Exercise-2 17.5    Important elements for a good formal organization Self-check Exercise-3 17.6    Summary 17.7    Glossary 17.8    Answer to Self-Check Exercises 17.9    Terminal Questions 17.10    References/Suggested Readings 17.1    Introduction Chester Irvising Barnard is a well known theorists and considered spiritual father of social system school. He has built up theory of organisation and rejected its only definition which held stress on membership. He is one of the very few administrative thinker who propounded organizational principles and theories based on person experience. A Bertram Gross co put it, is one of the few theorist in modern administrative thought thatwas highly successful as aman of affairs and also as a theoretician. Chester Barnard was born in 1866 in Malden, Massachusetts, U.S.A., into a financially struggling family. Due to his circumstances, he faced numerous hardships, even as a student. After completing his early education at Mount Hermon Academy, he enrolled at Harvard University in 1906. However, he left in 1909 without earning a degree and began working as a clerk in the Statistical Department of the American Telephone and Telegraph Company in Boston. From that point onward, he held various positions within the Bell Company until his retirement in 1948. Following his retirement, Barnard served as the President of the Rockefeller Foundation from 1948 to 1952. Despite not having a formal degree, he received seven honorary doctorates and secured a distinguished place in the history of administrative thought. His ideas were significantly influenced by the works of Oliver Sheldon, Elton Mayo, and Mary Parker Follett. Alongside his managerial roles, Barnard also taught at various universities across the United States and authored several influential books on management. His most renowned work, The Functions of the Executive (1938), remains a key reference in management studies today. In 1948, he published Organization and Management, followed by Elementary Conditions of Business Morals. Although he did not write extensively, his contributions had a profound impact on both management theory and practice, inspiring numerous scholars and thinkers. His approach to problem-solving was interdisciplinary, making his studies comprehensive and widely respected. 17.2    Learning Objectives After Studying this lesson the learner will be able: -    To know about the life sketch of charter I. Barnard and their contributions. -    To understand about the organization as a cooperative system. -    To differential formal and informal organization. -    To Comprehend about the important elements for a good formal organization. 17.3    Organization as a Co-operative System According to Barnard an organization comes into existence till such time when the people willing to work in close cooperation with each other, because individuals functions in it. Why and under what motivationsthe people work in an organisation that cannot be understood simply by understanding the functioning of theorganisation? No study of understanding will be complete unless human behaviour is studied or analysed. Hehas therefore laid stress on the study of organisational pattern and human behaviour. While exploring human behavior, Chester Barnard emphasized the importance of studying organizations. He defined an organization as a system of consciously coordinated activities involving two or more individuals. In this definition, he highlighted the system of interactions, viewing an organization as a network of human activities where the whole is greater than the sum of its parts. Each element within this system is interconnected, contributing to the overall structure in a meaningful way. According to Barnard, an organization functions effectively when three key elements are present: a shared purpose, the willingness of individuals to contribute, and effective communication among members. He also questioned why individuals choose to remain engaged in an organization’s operations. Rejecting the traditional concept of the "economic man," he proposed the contributionsatisfaction equilibrium theory. This theory suggests that people contribute to an organization only when they find personal satisfaction in doing so. The benefits they receive in return may not always be in the same form as their contributions but must ultimately provide them with a sense of fulfillment. From an organization's perspective, these benefits are seen as incentives or inducements that encourage continued participation and commitment. Barnard’s main emphasis was on the multiplicity of satisfactions and identifies four specific inducements: a)    material inducements such as money thin physical conditions; b)    personal non-material opportunities for distinction prestige and personal power; c)    desirable physical conditions of work and; d)    ideal benefactions, such as the pride of workmanship, sense of adequacy, altruistic service for family or others, toy to organisation and patriotism and aesthetic or religious feelings and the satisfaction of the motives of faith or revenge. Since Barnard rejected the economic man, he also mentions four types of “general incentives”. They are; a)    associated attractiveness based on compatibility with associates b)    the adoption of working conditions to habitual methods and attitudes. c)    the opportunity for the feeling of enlarged participation in the course of events; and d)    the condition of communing with others, a condition teased upon personal comfort in social relationsand mutual support in person attitudes. Chester Barnard, in analyzing the relationship between specific incentives, argued that financial rewards become ineffective once individuals' basic needs are met. He also emphasized that incentives cannot be applied in a rigid or one-size-fits-all manner. Their effectiveness depends on various factors, including the specific situation, timing, and the individuals involved. According to Barnard, one of the key responsibilities of executives is to manage and balance these incentives within an organization. Their role is to ensure that the right mix of inducements is offered to motivate employees effectively and sustain their commitment to the organization’s goals. Self-check Exercise-1 Q.1 Write a short note on organization as a cooperative system. 17.4    Formal and Informal Organisation According to Chester Barnard, a formal organization is a system of consciously coordinated activities or forces involving two or more individuals. It takes shape when people within the organization can communicate effectively, are willing to collaborate, and work towards a shared goal. A formal organization operates within a structured framework, where rules and regulations are systematically planned and documented. These rules derive their authority from the positions and roles individuals hold within the organization. It follows an organizational hierarchy, often represented through an organizational chart, which helps define its structure and objectives. Additionally, there is a clear division of labor, ensuring that responsibilities are assigned based on functions, creating a structured relationship between tasks and the individuals responsible for them. An informal organization believes that on organization is very much influenced b the personality of thepeople who work in it and what is their behaviour in the atomization. The relationship is based on external factors, environment and human relationship. He has said that informal organization is an absolute necessity. Self-check Exercise-2 Q.1 Write a short note on Formal and Informal organizations. 17.5    Important elements for a good formal organisation. a)    Communication : According to Barnard a common purpose can be achieved through communications. The method of communication can be verbal or written or obscivational. Communication is important for the oiganisation because it is through it that activities of the organisation can be expanded. The problem ofcommunication is always much more serious in big as compared with small organisations. b)    Willingness to Serve : Willing to serve is an important element of format organisation. This can beexpressed in terms of loyalty, solidarity and strength of the organisation. According to Barnard it also meanssurrender of personal conduct and depersonahsation of personal action. But commitment or willingness goes on fluctuating which creates instable conditions in an’ organization. It can be both positive as well as negativewhich can be because of satisfaction dissatisfaction of the people working in the organisation. c)    Common Purpose: The objective to be achieved may be called ‘Purpose’. It may not always bespecific and can be inferred in some cases as wdl. Unless the purpose for which the people are to work is notaccepted by all there can be no cooperative efforts. The purpose can be cooperative or subjective. Accordingto barnard a co-operative purpose remains cooperative as long as the participants note that there is no serious divergence of their understanding of that purpose, remaining the basis of their cooperative action as regardssubjective purpose, it determines the purpose of the organization. A distinction has to be made between organizational purpose, and individual motive. Individual notice isinternal, personal and subjective. Common purpose is impersonal, external and objective. The one exceptionto the general rule is that the accomplishment of an organisation purpose becomes itself a source of personalsatisfaction and a movie for man individual in many organisation. Informal organizations:According to Barnard along with formal organization, there is informal organizations which primarily comes to the fore when formal set up becomes somewhat less effective. But it does not mean that both do not work in close cooperation with each other. In an informal organization there is definitegood will for each other and respect for customs and traditions. In it people always interact with each otherbecause of their being social on the one hand and fulfillment of some personal desire o the part of each on the other Barnard describes informal organisation as the aggregate of personal contacts and interactions and the associated groupings of the people. Such organisations are indefinite, structure less and are a shapeless massof varieddensities. Informal organizations have a significant influence on members of formal organizations, creating a continuous interaction between the two. For an informal organization to be effective, it must integrate structured communication channels within the formal organization. This helps protect individuals from being overly controlled by formal structures while fostering a more dynamic and cooperative environment. According to Chester Barnard, informal organizations serve several key functions. They facilitate communication, promote cohesiveness by influencing individuals' willingness to learn and accept authority, and help maintain a sense of personal integrity. Additionally, they contribute to self-respect and independent decision-making, ensuring that individuals feel valued and empowered within the organization. Self-check Exercise-3 Q.1 What are the differences between formal and informal organizations? 17.6    Summary Chester Barnard, an American business executive, is considered as the spiritual father of ‘Social system’ school. His Classic “The functions of the executives” is the most influential work in Administrative and management Theory. To conclude Barnard has rejected traditional concept of include Barnard has rejected traditional concept of economic man. His sides are a bountiful combination of interties and expertise’s. His approach to every problem is social and human. It has rightly been said that he was human relations school and a bridge between formal and informal system of organizations. 17.7    Glossary •    Consistency- Consistence behavior or treatment. •    Informal organizations: According to Barnard along with formal organization, there is informal organizations which primarily comes to the fore when formal set up becomes somewhat less effective 17.8    Answer to Self-Check Exercises Self-check Exercise-1 Ans 1. 17.3 Self-check Exercise-2 Ans 1. 17.4 Self-Check Exercise-3 Ans 1. 17.5 17.9    References/Suggested Readings •    Prasad, D. Ravindra, Prasad, V.S. and Satyanaryana, P.‘Administrative Thinkers’, Sterling PublishingHouse, New Delhi, 2009. •    Laxmikant,M. ‘PublicAdministration’Fifth Edition, Tata McGraw-Hill Publishing Company Limited,New Delhi,2016. •    Avasthi, Dr. A., And S. R. Maheshwari, ‘PublicAdministration’30th Edition, Laxmi NarayanAgarwal, Agra, 2009. •    Arora, K. Ramesh and Batra, K. Satish., ‘Governance and Development,Aalekh Publications, Jaipur,2011. •    Bhattacharya., M. ‘New Horizons of Public Administration’, 7th Edition, Jawahar Publishers and Distribution, New Delhi, 2008. •    Fadia., Prof. B.L. & Fadia., Dr. K. ‘Public Administration: theories and concepts’ Sahitya BhavanPublications,Agra, 2009. •    Sharma, M.P. ‘Public Administration Theory and Practice’ Kitab Mahal, Allahabad, 1960. 17.10    Terminal Questions 1.    Elaborat the ‘Theory of Authority’ according to Charter I. Barnard. 2.    Write a note on the zone of indifference. UNIT -18 CHESTER I. BARNARD Part-2 Structure 18.1         Introduction 18.2        Learning Objectives 18.3    The Theory of Authority Self-check Exercise-1 18.4    The zone of Indifference Self-check Exercise-2 18.5    The system of Coordination Self-check Exercise-3 18.6    Criticism Self-check Exercise-4 18.7    Summary 18.8    Glossary 18.9    Answer to Self-Check Exercises 18.10    References/Suggested Readings 18.11    Terminal Questions 18.1    Introduction Chester Barnard was born in 1866 in Malden, Massachusetts, into a poor family, which made his early life quite challenging. Despite these difficulties, he persevered through his education, initially attending Mount Hermon Academy. In 1906, Barnard enrolled at Harvard University but left in 1909 without completing his degree. That same year, he began working as a clerk in the Statistical Department of the American Telephone and Telegraph Company in Boston. Barnard continued to work for the Bell Company in various roles until 1948. After retiring, he served as the President of the Rockefeller Foundation from 1948 to 1952. Over the years, he held numerous important positions and earned seven honorary doctorates, despite never having a bachelor's degree. His contributions earned him a prominent place in the history of administrative thought. 18.2    Learning Objectives After Studying this lesson the learner will be able: -    To know about the life sketch of charter I. Barnard and their contributions. -  To understand about the organization as a cooperative system. -    To differential formal and informal organization. -  To Comprehend about the important elements for a good formal organization. 18.3    The Theory of Authority According to Barnard authority is the “Character of a communication (order) in a formal organization byvirtue of which it is accepted by a contributor or run of the organisation -as- governing or determining what he does or is not to do in so far as organisation is concerned.” It implies acceptance of communicating as authority and why the communication is at all accepted by the members of the organization. Individualismthe organizations accept authority only when the following four, conditions obtains simultaneously: i)    When the communication is understood: Communication must be clear and understandable to be effective; otherwise, it lacks authority. Barnard suggests that a significant amount of time is spent interpreting and reinterpreting instructions to fit specific situations. ii)    Consistency with the organisational purpose: Any communication, not compatible with the purpose of the organisation, is unlikely to be accepted. Because of the cross purposes, it may result in frustrated action. An intelligent person will deny authority if heunderstands that it is a contradiction with the purposes of the organisation. iii)    Compatibility with Personal Interests: If the communications are detrimental to the personal interests of the individuals, they have little chance ofacceptability. Similarly, the orders should also provide positive inducements to the individual to motivate them. iv)    Physical and mental ability to comply: In cases where a person is unable to comply with an order, it will generally be disobeyed or disregarded. Therefore, orders should not be beyond the mental and physical capacity of individuals. From the foregoing, it is evident that the determination of authority lies with the subordinate individual thenthe quest on that arisen is how to ensure enduing cooperation of an individual in an According to Barnard, itis possible under three conditions; (a)    When the orders issued in organisations are in accordance with the four conditions discus above; (b)    When the orders fall within the zone of indifference and; (c)    When the group influences the individual resulting in the stability of the zone of indifference. Self-check Exercise-1 Q.1 Write a short note on Theory of Authority given by Chester Barnard. 18.4    The Zone of Indifference: According to Barnard, the acceptance of authority in organizations is influenced by the "zone of indifference." He categorizes orders based on their level of acceptability to individuals affected by them into three groups: 1.    Orders that are clearly acceptable, 2.    Orders that are neutral, meaning they are either just acceptable or just unacceptable, and 3.    Orders that are unquestionably unacceptable. Orders that fall into the third category fall within the zone of indifference. As long as the orders remain within this zone, individuals will accept them regardless of the nature of the authority issuing them. The size of this zone will vary depending on the incentives provided and the personal sacrifices made by individuals within the organization. The Fiction of Authority : It is presumed that in an organisation for various reasons the individuals willaccept authority. One reason the individuals will accept authority. One reason being that they want to avoid making issue of such orders and also desire to avoid loss of personal status with their colleagues. The fiction of superior authority is nice because that enables the individual to delegate responsibility and also because itis understood that goodwill of the organisation is at stake. Self-check Exercise-2 Q.1 What is zone of indifference according to Barnard? 18.5    The system of Coordination Barnard believes that a superior does not automatically possess authority, and in some cases, they may not have any authority at all. A communication cannot be considered authoritative unless it is backed by the actions or efforts of the organization. Ultimately, the authority of a message is determined by the assent of those to whom it is directed. Official communications that carry authority are directly related to organizational actions. For example, the laws of one country do not hold authority over the citizens of another. This is particularly so with codes have substantiallyequal validity. Such conflicts may result in; 1.    the paralyses of action accompanied by emotional tension, and ending in a sense of frustration; 2.    there is conformance to one code and violation of the other, resulting in a sense of guilt, discomfort etc.; 3.    there is sound some substitute action which satisfies, immediate desire or impulse or interest: Barnard suggests that executive actions are always influenced by moral considerations. However, he notes that business, as a whole, is often disconnected from higher moral principles. As a result, he emphasizes the need for further research into the relationship between executive behavior and moral principles, highlighting this as an important area for exploration. Self-check Exercise-3 Q.1 Write a short note on system of coordination. 18.6    Criticism Barnard has been called as fore-runner of human relations school and also spiritual father of social systemschool of thought, get has not been spared by his critics. While Barnard views purpose as central to cooperative efforts, Kenneth Andrews believes that Barnard has not fully addressed the process of formulating that purpose, either descriptively or prescriptively. Andrews also argues that Barnard's definition of authority downplays the role of objective authority. Instead of focusing on how authority can actively integrate conflicting alternatives and interpretations, Barnard seems to give individuals the option to either accept or reject it. Additionally, Andrews feels that Barnard's examination of leadership, although effective in theory, lacks an analysis of the practical problems that arise within leadership roles. It is said by his critics that in his presentations he lacks practical examples from day to day experience and as such these are abstract thoughts devoid of practical outlook. His style of presentation is difficult and noteasily understandable. In fact, Barnard himself believes that abstractness is inevitable when so many problemsare to be discussed. He has also been criticized for not giving full attention to the process of formulation of purpose, though purpose is centre of his cooperative efforts. It is also said that in his concept of authority he has not paid full attention to the role of objective authority. Self-check Exercise-4 Q.1 Critically evaluate the works of Barnard. Summary Chester Barnard, an American business executive, is regarded as the founding figure of the 'Social System' school of thought. His seminal work, The Functions of the Executive, remains one of the most influential contributions to administrative and management theory. Barnard rejected the traditional concept of the "economic man," instead focusing on the complex interplay of interests and skills within organizations. His approach to problem-solving was deeply rooted in social and human considerations. It is often said that he represented the human relations school and acted as a bridge between the formal and informal structures of organizations. 18.7    Glossary • Compatibility- a state is which two things are able to exist or occur together without problems or conflict. 18.8    Answer to Self-Check Exercises Self-check Exercise-1 Ans 1. Refer to section 18.3 Self-check Exercise-2 Ans 1. Refer to section 18.4 Self-Check Exercise-3 Ans 1. Refer to section 18.5 Self-Check Exercise-4 Ans 1. Refer to section 18.6 18.9    References/Suggested Readings •    Prasad, D. Ravindra, Prasad, V.S. and Satyanaryana, P.‘Administrative Thinkers’, Sterling PublishingHouse, New Delhi, 2009. •    Laxmikant,M. ‘PublicAdministration’Fifth Edition, Tata McGraw-Hill Publishing Company Limited,New Delhi,2016. •    Avasthi, Dr. A., And S. R. Maheshwari, ‘PublicAdministration’30th Edition, Laxmi NarayanAgarwal, Agra, 2009. •    Arora, K. Ramesh and Batra, K. Satish., ‘Governance and Development,Aalekh Publications, Jaipur,2011. •    Bhattacharya., M. ‘New Horizons of Public Administration’, 7th Edition, Jawahar Publishers and Distribution, New Delhi, 2008. •    Fadia., Prof. B.L. & Fadia., Dr. K. ‘Public Administration: theories and concepts’ Sahitya BhavanPublications,Agra, 2009. •  Sharma, M.P. ‘Public Administration Theory and Practice’ Kitab Mahal, Allahabad, 1960. 18.10    Terminal Questions 1.    Discuss the ‘Theory of Authority’ according to Charter I. Barnard. 2.    Write a note on the systems of coordination in an organisation. UNIT-19 HERBERT SIMON Part-1 Structure: 19.1Introduction 19.2 Learning Objectives 19.3    Classical theory: An Indictment Self-check Exercise-1 19.4 Decision–Making Self-check Exercise-2 19.5 Rationality in Decision – Making Self-check Exercise-3 19.6 Hierarchy in Decision Self-check Exercise-4 19.7    Summary 19.8    Glossary 19.9    Answers to Self-Check Exercises 19.10      References/Suggested Readings 19.11      Terminal Questions 19.1    Introduction Administrative studies in the 1930s and 1940s marked a shift toward empiricism, leading to significant changes in how we understood people within organizations. These studies contributed to the development of theoretical frameworks for social systems and offered new insights into human behavior. Several efforts were made during this period to conceptualize and develop theories based on 203 emerging findings about people at work, which paved the way for the later growth of organizational theory. Known as "behavioral studies," these investigations used an interdisciplinary approach, drawing from anthropology, sociology, and psychology, and played a key role in what we now call Behavioral Science. In the field of administrative behavior, much of the focus was on areas such as bureaucracy, human relations, motivation, and decision-making. Herbert A. Simon made especially noteworthy contributions to the study of decision-making. Born in 1916 in Wisconsin, Simon was an influential American political and social scientist. He earned his Ph.D. in Political Science from the University of Chicago and began his career in municipal government, writing extensively on the subject. Throughout his career, Simon served in various academic and consulting roles, and his extensive body of work has been translated into multiple languages, including Turkish, Persian, and Chinese. His contributions to administrative thought are widely recognized and remain influential in the field today. 19.2    Learning Objectives After studying this lesson, the learner will be able: •    To know about the life sketch and works of Herbert A. Simon. •    To understand about classical theory, human relations theory and behavioral theory. •    To analyze about decision making process and the contributions of Herbert A. Simon. •    To comprehend about modes of organizational influence. 19.3 Classical Theory: An Indictment Simon criticizes traditional administrative concepts, calling them proverbs and myths. He argues that principles like the division of labor, unity of command, and span of control are vague and often contradict each other, making them more like folk wisdom than practical guidelines. He attributes this ambiguity to insufficient analysis of situations, unclear definitions of key terms, and a lack of in-depth research into real-world scenarios. According to Simon, these principles resemble abstract designs for organizational structures, created with a certain logical order but lacking human-centered consideration. He finds a disconnect between the idealized administrative processes outlined in the POSDCORB formula and their practical effectiveness in achieving organizational goals. Through his critique, Simon highlights the gap between theory and practice in administration. He believes the key missing element is effective decision-making, which he defines as the rational selection of the best course of action from various alternatives. This realization sparks his pursuit of rational decision-making models that can offer practical guidance for real-world decision-making in organizations. Key Criticisms by Herbert Simon 1.    Over-Simplification of Human Behavior •    Rationality Assumptions: Classical theory assumes that individuals within organizations are perfectly rational actors who always make decisions to maximize efficiency and effectiveness. Simon argued that this view is unrealistic, as humans operate with "bounded rationality"—their decision-making is limited by the information they have, their cognitive limitations, and the time available to make decisions. •    Ignoring Psychological and Social Factors: Classical theory largely ignores the psychological and social dimensions of human behavior. It fails to account for factors such as emotions, cultural influences, and interpersonal dynamics, which significantly impact decision-making and organizational performance. 2.    Inadequate Decision-Making Model •    Simplistic View of Decision Processes: Simon criticized the classical theory for its overly simplistic view of decision processes. He argued that decisions in organizations are not always clear-cut and straightforward but are often complex, involving multiple variables and uncertainties. •    Sequential Decision-Making: Classical theory tends to portray decision-making as a linear, sequential process. Simon contended that this does not reflect the reality where decisions are often iterative, requiring ongoing adjustments and revisions based on feedback and changing circumstances. 3.    Neglect of Informal Organization •    Emphasis on Formal Structure: Classical theory places heavy emphasis on formal organizational structures, rules, and procedures. Simon pointed out that this overlooks the importance of informal networks, relationships, and social norms that play a crucial role in organizational functioning. •    Influence of Informal Groups: Informal groups within organizations can significantly influence behavior and decision-making. By ignoring these groups, classical theory fails to provide a comprehensive understanding of organizational dynamics. 4.    Lack of Attention to Contextual Factors •    One-Size-Fits-All Approach: Classical theory often advocates for universal principles of management that can be applied across different types of organizations and environments. Simon criticized this approach for failing to consider the unique contextual factors that influence organizational behavior and effectiveness. •    Environmental Adaptation: Organizations must adapt to their specific environments and contexts. The rigid, prescriptive nature of classical theory does not adequately address the need for flexibility and adaptability in the face of changing external conditions. 5.    Inadequate Consideration of Organizational Goals •    Goal Ambiguity: Classical theory assumes that organizational goals are clear, unambiguous, and agreed upon by all members. Simon highlighted that, in reality, organizations often face goal ambiguity and conflict, with different stakeholders having different priorities and objectives. •    Complex Goal Setting: The process of setting and achieving goals is more complex than classical theory suggests. It involves negotiation, compromise, and alignment of diverse interests, which classical theory does not fully address. Self-check Exercise-1 Q.1 Write a short note on classical theory of organisation? 19.4    Decision-Making Simon perceives an organization as a network of decision-makers. He asserts that decisions are made at every level, with some having a broad impact on numerous members, while others involve minor details. Each decision is influenced by a set of underlying premises, and Simon emphasizes understanding how these premises are established. Simon explains that decision-making fundamentally involves selecting between alternative courses of action, a process influenced by both facts and values. Every decision, according to him, is a combination of factual and value-based considerations. Facts represent objective reality—statements that can be verified through observation and measurement. Values, on the other hand, reflect personal or collective preferences and cannot be objectively proven. While Simon acknowledges that most premises contain both factual and value components, he differentiates them to clarify their distinct roles in decision analysis. He highlights that scientific methods, especially empirical observation, cannot validate ethical judgments, though values and facts are often intertwined. To illustrate the distinction between facts and values, Simon refers to the means-ends framework. He argues that facts can be evaluated through rational analysis, while values often stem from non-rational sources such as beliefs or societal norms. This blend of factual and value considerations complicates administrative decision-making, as organizations exist to achieve collective goals that individuals cannot accomplish alone. Within this framework, Simon introduces the concept of a "hierarchy of decisions," where each decision serves as a step toward a broader objective. He asserts that decisionmaking within organizations is inherently rational, though it is continuously shaped by evolving goals. Simon further clarifies that each decision involves selecting a goal and determining the necessary actions to achieve it. These goals may be intermediate, leading toward a final objective. The distinction between means-ends and fact-value relationships is key to his analysis. He states that when decisions define ultimate goals, they predominantly reflect value judgments, while decisions that implement those goals are based on factual judgments. However, he avoids categorizing decisions strictly as "value decisions" or "factual decisions," instead emphasizing that all decisions contain varying degrees of both elements. Through his framework, Simon demonstrates that administrative decisions always involve a complex interplay of factual and value-based considerations. Self-check Exercise-2 Q.1 What is decision making according to Simon? 19.5    Rationality in Decision-Making After establishing the continuum of decision-making, Simon shifts his focus to another crucial aspect—the concept of rationality in decision-making. He emphasizes the importance of making rational choices and defines rationality as the selection of the most suitable course of action based on a system of values that allows for evaluating the consequences of a decision. According to him, true rationality requires complete knowledge and the ability to anticipate the outcomes of each possible choice. It also involves selecting the best option from all available alternatives. Simon explains rationality through the means-ends framework. In this construct, "means" refers to an action or situation that precedes another in a sequence, serving as a step toward a goal. "Ends," on the other hand, represent the ultimate objectives to be achieved. He highlights that the same action can function as a means in one context and as an end in another, depending on perspective. If the chosen means effectively lead to the desired ends, the decision is considered rational. However, Simon acknowledges that this test of rationality is not as straightforward as it seems. The distinction between means and ends is often blurred, as what appears to be an ultimate goal may, in fact, be a stepping stone toward another objective. This concept is known as the means-end hierarchy. Simon notes that this hierarchy is rarely a seamless, fully connected chain. In many cases, the link between an organization’s activities and its ultimate objectives is unclear. Additionally, organizations may struggle with poorly defined goals, conflicting priorities, or inconsistencies between chosen methods and desired outcomes. He also warns that decisions, even when seemingly rational, can lead to unintended or undesirable consequences if they are based on flawed assumptions or incomplete information. To summarize the challenges of means-ends analysis, Simon presents three key points: 1.    The goals associated with a particular decision are often inadequately defined, as decision-makers may fail to consider alternative objectives that could be achieved through a different course of action. 2.    In real-world scenarios, it is nearly impossible to draw a clear distinction between means and ends, as they are often interdependent. 3.    The means-end approach tends to overlook the role of time in decision-making, as the long-term consequences of a decision may not always be immediately apparent. Through this analysis, Simon underscores the complexity of rational decision-making, highlighting the challenges that arise when attempting to apply logical frameworks to real-world organizational processes. Simon differentiates between different types of rationality. A decision is: 19.4.1      objectively rational where it is correct behaviour for maximizing given values in a given situation; 19.4.2      subjectively rational if the decision maximises attainment relative to knowledge of the subject: 19.4.3   consciously rational where adjustment of means to ends is a conscious process; 19.4.4   deliberately rational to the degree that the adjustment of means of ends has been deliberately sought; 19.4.5   organizationally rational to the extent that it is aimed at the organisation’s goals; and 19.4.6      personally rational if the decision is directed to the individual’s goals. Simon challenges the idea of complete rationality in administrative behavior, arguing that human decision-making is neither entirely rational nor entirely irrational. Instead, he introduces the concept of bounded rationality, which acknowledges the limitations individuals face in processing information and making decisions. He also dismisses the idea of optimizing decisions, which stems from the assumption of total rationality. The concept of total rationality is based on three key assumptions: 1.    Decision-makers have complete knowledge of all possible alternatives. 2.    They fully understand the values and consequences associated with each alternative. 3.    They possess a clear, ranked preference order among all available options. Simon finds these assumptions fundamentally flawed and, therefore, rejects the theory of total rationality. Instead of optimizing decisions, which require selecting the absolute best option, he proposes the concept of "satisficing." The term, derived from "satisfaction" and "sufficing," refers to choosing an option that is satisfactory or good enough, rather than the best possible one. Following his discussion of the means-ends framework, Simon explores various decision-making models before ultimately developing his own model that integrates his key concepts, emphasizing realistic and practical approaches to decision-making. Self-check Exercise-3 Q.1 Write a short note on rationality in decision making. 19.6    The Hierarchy of Decisions Organizations naturally function within a hierarchical framework, consisting of multiple levels arranged in a structured order. This hierarchy ensures that tasks are systematically divided and assigned to different units, which are further broken down into smaller components as they move downward. The ultimate goal of this structured division is to efficiently achieve the organization's objectives. A key aspect of this hierarchy is the decision-making process, where each level is responsible for implementing the goals set by the level above it. In this way, decision-making follows a structured progression, ensuring that actions at the lower levels align with the broader objectives of the organization. Purposive behavior in an organization refers to actions that are guided by overarching goals, while rational behavior involves selecting the most effective alternatives to achieve these objectives. However, in reality, organizational goals are rarely perfectly aligned. A single agency or department often has to balance multiple objectives simultaneously. For example, a city's recreation department may aim to improve children's health, provide constructive leisure activities, reduce juvenile delinquency, and promote similar programs for adults. The presence of multiple, sometimes competing, objectives makes it challenging to achieve complete integration within the hierarchy. Nevertheless, a certain level of integration is necessary in practice for any purpose to be achieved. This discussion unveils two important dimensions of the behavioral approach: 1.    The distinction between policy-making and implementation. 2.    The involvement of facts and values in decision-making. It emphasizes that decisions at lower levels primarily involve factual judgments. In the decision-making process, the selection of goals requires the evaluation of alternatives based on value judgments, while the selection of means to achieve these goals relies on factual judgments. Self-check Exercise-4 Q.1 Write a short note on Hierarchy of Decisions. 19.7    Summary Despite its limitations, Simon’s work represents a significant breakthrough in the evolution of administrative theory. His insights into decision-making processes have had a lasting impact on the field. However, it is regrettable that after his seminal work, Administrative Behavior, Simon shifted his focus away from public administration and directed his attention toward economic and business systems. Equally unfortunate is the fact that subsequent administrative theories have not sufficiently expanded upon or addressed the depth of Simon’s contributions to decision-making in organizations. His work laid a strong foundation, but later developments in administrative thought have not fully built upon the critical aspects he explored. 19.8    Glossary •    Rationality- the quality of being based on or in accordance with reason or logic. •    Efficiency- the state or quality of being efficient. 19.9 Answers to Self-CheckExercises Self-check Exercise-1 Ans 1. Refer to section 19.3 Self-check Exercise-2 Ans 1. Refer to section 19.4 Self-Check Exercise-3 Ans 1. Refer to section 19.5 Self-Check Exercise-4 Ans 1. Refer to section 19.6 19.10    References/Suggested Readings •    Prasad, D. Ravindra, Prasad, V.S. and Satyanaryana, P.‘Administrative Thinkers’, Sterling PublishingHouse, New Delhi, 2009. •    Laxmikant,M. ‘PublicAdministration’Fifth Edition, Tata McGraw-Hill Publishing Company Limited,New Delhi,2016. •    Avasthi, Dr. A., And S. R. Maheshwari, ‘PublicAdministration’30th Edition, Laxmi NarayanAgarwal, Agra, 2009. •    Arora, K. Ramesh and Batra, K. Satish., ‘Governance and Development,Aalekh Publications, Jaipur,2011. •    Bhattacharya., M. ‘New Horizons of Public Administration’, 7th Edition, Jawahar Publishers and Distribution, New Delhi, 2008. •    Fadia., Prof. B.L. & Fadia., Dr. K. ‘Public Administration: theories and concepts’ Sahitya BhavanPublications,Agra, 2009. •    Sharma, M.P. ‘Public Administration Theory and Practice’ Kitab Mahal, Allahabad, 1960. 19.11    Terminal Questions (a)    Discuss Simon’s view on Decision-Making process in the organization? (b)    Describe about programmed and non-programmed decisions in the organization? UNIT-20 HERBERT SIMON Part-2 Structure: 20.1I ntroduction/Life Sketch 20.2 Learning Objectives 20.3    Models of Decision- Making Behavior Self-check Exercise-1 20.4 Models of Organizational Influence Self-check Exercise-2 20.5O rganizational Loyalties Self-check Exercise-3 20.6 The Criterion of Efficiency Self-check Exercise-4 20.7    Types of Decisions Self-check Exercise-5 20.8    Training Self-check Exercise-6 20.9    Administrative Efficiency Self-check Exercise-7 20.10      An Evaluation Self-check Exercise-8 20.11     Summary 20.12    Glossary 20.13 Answers to Self-Check Exercises 20.14 References/Suggested Readings 20.15 Terminal Questions 20.1    Introduction Herbert A. Simon was a renowned American political and social scientist, recognized for his groundbreaking contributions to administrative thought. Born in 1916 in Wisconsin, he earned his Ph.D. in Political Science from the University of Chicago. Simon began his career in municipal government, a field on which he authored several influential books. Throughout his career, he held various distinguished positions, serving as both an academic and a consultant. His work has had a profound impact on the study of administration, with numerous publications covering a wide range of subjects. Many of his works have been translated into multiple languages, including Turkish, Persian, and Chinese, further highlighting the global influence of his ideas. 20.2    Learning Objectives After studying this lesson, the learner will be able: a.    To know about the life sketch and works of Herbert A. Simon. b.    To understand about classical theory, human relations theory and behavioral theory. c.    To analyze about decision making process and the contributions of Herbert A. Simon. d.    To comprehend about modes of organizational influence. 20.3    Models of Decision-Making Behaviour There are various models of decision-making behavior, each attempting to assess the level of rationality exhibited by decision-makers. These models range from complete rationality, as seen in the concept of the "economic man," to complete irrationality, represented by the "social man." In contrast, Herbert Simon introduces the "administrative man" as a more realistic representation of decisionmakers within organizations. Unlike the economic man, who is assumed to have complete knowledge of all possible alternatives and their consequences, the administrative man operates with limited information. Instead of striving for an optimal solution, he settles for one that is "good enough" or simply feasible, a process Simon refers to as "satisficing." Since the administrative man recognizes that his perception of reality is only a simplified version of the complex world, he makes decisions based on a limited set of factors that he considers most relevant. His choices are guided by basic rules of thumb rather than an exhaustive evaluation of all possible alternatives. Simon also highlights the obstacles that prevent decision-makers from achieving maximization. Factors such as resistance to change, a desire for status, and conflicts arising from specialization can hinder optimal decision-making. To address these challenges, Simon differentiates between two types of decisions—programmed and non-programmed. Programmed decisions involve routine, repetitive tasks for which predefined procedures can be applied, reducing the need for individual judgment. In contrast, non-programmed decisions are novel, complex, and require unique solutions, necessitating higher levels of creativity and strategic thinking from executives. Simon suggests that advancements in technology, particularly in mathematical modeling, operations research, electronic data processing, and computer simulations, can significantly enhance decisionmaking processes. The increasing use of computers can help automate routine decisions, allowing for greater efficiency and rationality within organizations. However, he also acknowledges that this shift toward automation may lead to recentralization, altering traditional concepts of delegation and decentralization. Ultimately, Simon envisions a future where computerized decision-making enhances rationality, streamlining executive functions and improving overall organizational efficiency. By leveraging technology, organizations can make more informed and coordinated decisions, transforming the administrative landscape in fundamental ways. Self-check Exercise-1 Q.1 Write a short note on decision making behaviour. 20.4    Modes of Organizational Influence The behavior of individuals within an organization is shaped by both internal and external influences. Internal influences focus on cultivating attitudes and habits in employees that align with organizational goals. This is achieved through fostering loyalty, emphasizing efficiency, and providing proper training. On the other hand, external influences involve directives and decisions imposed from higher levels within the organization. These are enforced through mechanisms such as authority, advisory roles, and informational support. Employees generally accept these influences because the organization’s objectives often become intertwined with their own personal goals. Adapting to these influences also fulfills individual motivations, making compliance more natural. However, these influences are neither exhaustive nor strictly separate; they often overlap and interact in complex ways. One of the key mechanisms ensuring compliance is authority. Contrary to the common belief that authority flows solely from the top down, Simon argues that authority ultimately depends on the willingness of subordinates to accept it. Authority operates at multiple levels within an organization and is not strictly hierarchical. Organizations function through both formal and informal relationships, and authority often plays a crucial role in resolving disputes. Building on Chester Barnard’s concept of the "zone of indifference," Simon introduces the idea of the "zone of acceptance." According to him, employees comply with authority when directives fall within this acceptable range. However, when authority is exercised beyond this zone, subordinates are more likely to resist or disobey. The extent of an individual’s zone of acceptance is influenced by various factors, including the consequences of non-compliance and the legitimacy of the authority figure. Self-check Exercise-2 Q.1 What are the modes of decision-making influence? 20.5    Organizational Loyalties It is commonly observed that individuals within an organization develop a strong sense of identification with it. This sense of loyalty is essential for the smooth functioning of any organization. Organizational loyalty plays a crucial role in ensuring that members stay focused on their assigned tasks rather than questioning the foundational aspects of various issues. However, excessive or narrow loyalties can lead to internal conflicts and heightened competition for limited resources. Despite these challenges, organizational loyalty remains a key factor in fostering teamwork and collective effort. Alongside loyalty, internal influences within an organization also play a significant role in shaping employee behavior and maintaining organizational cohesion. Self-check Exercise-3 Q.1 What are decision making loyalities? 20.6    The Criterion of Efficiency While authority and organizational loyalty shape an individual’s value system, the criterion of efficiency affects their ability to manage facts. Efficiency refers to the use of the most direct and cost-effective methods to achieve desired outcomes. The principle of "being efficient" is a significant influence on the organizational member. This focus on efficiency leads to more rational behavior in decision-making and action. Herbert Simon's exploration of "The Criterion of Efficiency" represents a fundamental critique and rethinking of traditional notions of efficiency within organizational theory. Simon, a Nobel laureate in Economics and a pioneer in the fields of decision-making and management science, challenged the simplistic view that efficiency should be solely measured by how well organizations achieve their goals with minimal resources. Instead, he introduced a broader and more nuanced perspective on efficiency, which considers the complexities of human cognition and organizational dynamics. 1.    Bounded Rationality and Decision-Making •    Simon introduced the concept of "bounded rationality," which acknowledges that human decision-makers are limited by cognitive constraints such as incomplete information, cognitive biases, and time constraints. •    According to Simon, decisions made under bounded rationality are "satisficing"— aiming for satisfactory solutions that are good enough, rather than optimal solutions that may be unattainable due to these limitations. 2.    Adaptive Behavior and Organizational Efficiency •    Simon argued that organizational efficiency should not only focus on optimizing processes and outputs but also on the adaptive behavior of organizations in response to changing environments. •    Adaptive efficiency involves the ability of organizations to learn from experience, adjust strategies, and innovate in order to maintain effectiveness over time. 3.    Redefined Criteria for Organizational Success •    Traditional measures of efficiency often prioritize quantitative outcomes such as cost reduction or productivity gains. Simon expanded this view to include qualitative aspects such as the ability to innovate, respond to unexpected challenges, and maintain resilience. •    He advocated for a balanced approach that considers both short-term efficiency gains and long-term organizational sustainability and adaptability. 4.    Complexity and Organizational Design •    Simon's perspective on efficiency challenged simplistic views of organizational design that emphasize rigid hierarchies and standardized procedures. •    He suggested that effective organizational design should accommodate the inherent complexity of human behavior and decision-making processes, fostering environments where creativity and adaptive responses can flourish. 5.    Implications for Management Practice •    Simon's Criterion of Efficiency has profound implications for management practice, urging leaders to adopt more flexible and adaptive approaches to decision-making and organizational design. •    Effective management, according to Simon, involves creating environments that support continuous learning, experimentation, and the integration of diverse perspectives to enhance overall organizational effectiveness. Herbert Simon's Criterion of Efficiency represents a paradigm shift in organizational theory, moving beyond narrow definitions of efficiency to embrace a more holistic and dynamic understanding. By integrating principles of bounded rationality, adaptive behavior, and the importance of organizational learning, Simon's work continues to influence contemporary management practices, encouraging organizations to prioritize resilience, innovation, and longterm sustainability alongside traditional measures of efficiency. This broader perspective not only enhances organizational performance but also fosters environments where individuals and teams can thrive in the face of complexity and uncertainty. Self-check Exercise-4 Q.1 What is the criterion of efficiency? 20.7    TYPES OF DECISIONS Herbert Simon distinguishes between two types of decisions: programmed and non-programmed. These terms, which have their origins in computer science, offer a useful way to categorize the decision-making process. Programmed Decisions: Programmed decisions are routine and repetitive. In the context of computers, a program is essentially a predefined solution, and similarly, programmed decisions in organizations follow established procedures. These decisions are not novel, so there is no need for spontaneous or ad hoc approaches. Instead, a set procedure can be applied to resolve recurring issues. Programmed decisions help administrators address common tasks such as managing contracts, handling compensation policies, and administering salaries. Non-Programmed Decisions: On the other hand, non-programmed decisions occur in situations that are new, unstructured, and don't rely on established rules or past practices. These decisions require creativity, innovation, and judgment, as they are not repetitive and cannot be resolved with pre-existing procedures. Non-programmed decisions often involve a high degree of uncertainty and risk, as each situation is unique and requires a tailored solution. These decisions are critical for addressing special, onetime challenges that an organization might face. Simon suggests various approaches for handling both types of decisions. For programmed decisions, relying on habits, expertise, and informal communication channels can be effective. For non-programmed decisions, it is crucial to have skilled and innovative executives who are trained to tackle complex and novel problems. Furthermore, Simon believes that the use of advanced tools like mathematical models, computer simulations, and electronic data processing can greatly enhance rational decision-making, providing a more structured and informed approach to decision processes. Effective communication, both upward, downward, and across the organization, is vital to ensure decisions are well-informed. The type and reliability of information needed will vary depending on the situation. Therefore, gathering accurate data and using it wisely is crucial to effective decision-making and maintaining strong lines of communication within the organization. Self-check Exercise-5 Q.1 Write a short note on types of decisions. 20.8    Training Training is an essential tool that prepares individuals within an organization to tackle its challenges effectively. A well-designed training program empowers individuals to exercise greater discretion in their decision-making. Training is particularly beneficial in decision-making when similar elements recur across multiple decisions. Additionally, training provides valuable information, establishes a frame of reference, and instills desirable values, all of which contribute to enhancing the quality of decision-making. Herbert Simon emphasized the importance of training in enhancing the decision-making capabilities of individuals within organizations. He recognized that traditional training programs, which often focused on rigid procedures and technical skills, were insufficient for addressing the complexities of real-world problems. Simon advocated for training that would develop cognitive skills and foster an understanding of bounded rationality—the concept that decision-makers operate within the constraints of limited information, time, and cognitive resources. He suggested that effective training should include problem-solving techniques, critical thinking, and the use of decision-support tools to help individuals make better-informed and more adaptive decisions. By integrating these elements, Simon believed that organizations could cultivate a workforce better equipped to navigate the uncertainties and dynamic challenges of contemporary environments. Self-check Exercise-6 Q.1 Write a short note on training? 20.9    Administrative Efficiency According to Simon, administrators should always be guided by the principle of efficiency in their decision-making. However, he acknowledges the complexity of applying this principle, especially in government organizations, which are not profit-driven like commercial entities. Efficiency, as a guiding principle, calls for selecting the alternative that yields the highest output for a given amount of resources. It suggests that if two options have the same cost, the one that better achieves the organization's objectives should be chosen. Similarly, if two alternatives achieve the same level of goals, the one with the lower cost should be preferred. Thus, efficiency is closely tied to both maximizing the organization's output and conserving resources, ensuring that there is a positive balance between input and output. However, when resources, costs, and objectives are not fixed, decisions cannot solely rely on efficiency as a criterion. While efficiency plays a key role in decision-making when these factors are stable, Simon later revises his stance, suggesting that the efficiency criterion is more applicable to lower-level decisions, whereas higher-level decisions cannot always be measured or compared in the same way. Self-check Exercise-7 Q.1 What is administrative efficiency? 20.10    Evaluation Herbert Simon’s extensive study sheds light on the complexities of decision-making processes and their role in organizations. His work provides valuable insights into administrative behavior and how decision-making interacts with organizational dynamics. However, while focusing on these processes, Simon somewhat downplays the influence of social, political, economic, and cultural factors, which are also crucial in understanding administrative behavior. By excluding value premises, which are essential in policy-making, Simon's approach risks reducing the study of public administration to a mechanical and routine focus, similar to the one found in business administration. Critics of Simon argue that, while decision-making is undeniably important, it alone cannot explain the entirety of organizational behavior. They contend that decision-making should encompass both emotional and rational dimensions. Simon’s study incorporates the logical positivist distinction between facts and values, but this approach has faced criticism for potentially reviving the discredited politics-administration dichotomy. Some argue that this separation could harm decisionmakers and make Simon's primary thesis less relevant. Norton E. Long criticizes Simon's effort to create a value-free science of administration, suggesting it could inadvertently reinforce the politics-administration divide. Long also points out that bureaucracy cannot be purely neutral or instrumental, solely focused on presenting facts and executing political orders. Similarly, Philip Selznick argues that the rigid separation of fact and value, as it is often interpreted, leads to a harmful disconnection between means and ends. Another critique of Simon's work comes from the observation that administrative systems in developing countries do not function in the same way as those in developed nations. As such, developing a theory based solely on the American experience of administration may not be universally applicable. Simon’s concept of efficiency also draws frequent criticism. Some critics equate efficiency with economy, while others argue that focusing on efficiency leads to a mechanical view of administration and creates an inconsistent relationship between means and ends. Efficiency cannot be the sole goal of administration, as organizations often pursue a variety of objectives, such as satisfying different interests, producing goods and services, or adhering to established codes. Under certain circumstances, these objectives may take precedence over efficiency. Moreover, the importance of efficiency diminishes when resources are not scarce, and it can only be accurately measured when both inputs and outputs can be quantified. This led Simon to conclude that efficiency is more applicable to lower-level decisions, where measurable outcomes are more achievable. One of the challenges in studying decision-making is that executives often refrain from disclosing the reasons behind their decisions or the procedures they followed. By the time such details are shared, the decision is no longer relevant. Despite this, it remains valuable for future executives to understand the decision-making process. Simon’s decision-making theory is sometimes criticized for being too general. While it offers a broad framework, it does not provide enough practical guidance for organizational planners. His focus on rationality has also been questioned, with critics like Chris Argyris arguing that intuition, tradition, and faith also play significant roles in decision-making. Some see Simon’s focus on satisficing as an attempt to rationalize incompetence, as it allows decision-makers to settle for solutions that are "good enough" rather than striving for the best possible outcomes. Despite these criticisms, Simon’s contributions to the study of decision-making remain invaluable. His concepts of maximizing and satisficing, and his use of fact-value distinctions in decision-making analysis, continue to serve as useful tools for academics and professionals seeking to understand organizational decision-making processes. Self-check Exercise-8 Q.1 Critically evaluate the works of Herbert Simon. 20.11    Summary Despite the imperfections in Simon's work, his contributions represent a significant breakthrough in the development of administrative theory. However, it is unfortunate that, after his major work on administrative behavior, Simon shifted his focus primarily to economic and business systems, leaving public administration somewhat underexplored. Moreover, it is equally disappointing that later administrative theories have not adequately addressed the critical insights Simon provided regarding decision-making processes within organizations. 20.12    Glossary •    Influence- the capacity to have an effect on the character, development, or behavior of someone orsomething, or the effect itself. •    Programmed decisions: Programmed decisions are essentially standing decisions. In computer literature, a program is a plan for an automatic solution 20.13 Answers to Self-CheckExercises Self-check Exercise-1 Ans 1. Refer to section 20.3 Self-check Exercise-2 Ans 1. Refer to section 20.4 Self-Check Exercise-3 Ans 1. Refer to section 20.5 Self-Check Exercise-4 Ans 1. Refer to section 20.6 Self-Check Exercise-5 Ans 1. Refer to section 20.7 Self-Check Exercise-6 Ans 1. Refer to section 20.8 Self-Check Exercise-7 Ans 1. Refer to section 20.9 Self-Check Exercise-8 Ans 1. Refer to section 20.10 20.14    References/Suggested Readings •    Prasad, D. Ravindra, Prasad, V.S. and Satyanaryana, P.‘Administrative Thinkers’, Sterling PublishingHouse, New Delhi, 2009. •    Laxmikant,M. ‘PublicAdministration’Fifth Edition, Tata McGraw-Hill Publishing Company Limited,New Delhi,2016. •    Avasthi, Dr. A., And S. R. Maheshwari, ‘PublicAdministration’30th Edition, Laxmi NarayanAgarwal, Agra, 2009. •    Arora, K. Ramesh and Batra, K. Satish., ‘Governance and Development,Aalekh Publications, Jaipur,2011. •    Bhattacharya., M. ‘New Horizons of Public Administration’, 7th Edition, Jawahar Publishers and Distribution, New Delhi, 2008. •    Fadia., Prof. B.L. & Fadia., Dr. K. ‘Public Administration: theories and concepts’ Sahitya BhavanPublications,Agra, 2009. •  Sharma, M.P. ‘Public Administration Theory and Practice’ Kitab Mahal, Allahabad, 1960. 20.15    Terminal Questions (c)    What are the types of decisions given by Herbert Simon? (d)    Elaborate about different stages of Decision-Making suggested by Simon? ****