Classical Approaches
Mathematical models can never replace sound judgement. The industrial revolution in England gave an immense impetus for the scientific management approach. Management should encourage employees taking initiative i.e. Organization and management were recognized in the Buddhist order ‘Sangha’ as far back as 530 B. C. Roman Catholic Church and ‘Military Organizations’ also offer good examples of v, Henry Fayol /Administrative Theory of Management, Essays, Research Papers and Articles on Business Management, Management Thought: Evolution and Approach | Business Management, The Classical Approach to Management: Theory, Features, Limitations and Principles, Scientific, Administrative and Human Approach to Management, Scientific Management: Opposition and Approach | Management, International Human Resource Management: Meaning, Need, Challenges and Issues, Approaches to Management: Classical, Modern, Scientific, System and Behavioural Science Approach, Approaches to Management – Developed to Explain the Nature and Technique of Managerial Practices, Approaches to Management – Developed by Scholars and Practitioners on ManagementÂ. Henry Fayol /Administrative Theory of Management: Though administrative theory of management is based on the contributions of many scholars and practitioners like Henry Fayol, Max Weber, Sheldon, Mooney, Allen and Urwick, etc. The first four foremen worked inside the shop floor. Operational approach has taken from all possible disciplines, which have direct or indirect effect on human behaviour and organizational functioning and developed its concepts. (ii) There is orderly thinking in management leading to more exactness. The process school is also called the ‘traditional’ or ‘universalist’ school as it believes that management principles are applicable to all the group activities, Henry Fayol is regarded as the father of this school. Historical Background of Management
2. PP&E is impacted by Capex, Depreciation, and Acquisitions/Disposition… By contrast, if the power is delegated to the subordinates, it will be called as decentralisation. Hence, it is essential to produce a good organisation structure and organisation relatioship. Since management is concerned with problem solving, it has to make use of mathematical tools and techniques. This approach concentrates on the decision making function of management. Bringing groups of people together for the purpose of working in the factory posed problems for the factory owners. Before publishing your articles on this site, please read the following pages: 1. The features of an organization as a system are as under: (1) Common Objective – Organisation stands for the achievement of common objective whatever may be the efforts of system. (i) It has made little contribution in the areas of organising, staffing, motivation and leadership. The scholars belonging to this school believe that to understand management clearly one must study and make comparison of; successes and failures of managers in various situations and their ways to solve specific problems, and then the learning derived from such observation can be applied to a similar real situation would result in same outcome. Companies like Uber and Ola revolutionised the erstwhile overcrowded transport market through integration of customers, channel partners (Auto/cab drivers are called channel partners) and other regulatory agencies through Global Positioning System (GPS), one of the super formats of IT approach to Management. This is class-2 of Management. Fayol defined Centralization as lowering the importance (authority) of the subor­dinate role and Decentralization as increasing the importance. (vi) Subordination of individual interest to the common goal. These techniques help the managers in improving their decisions by analysing the various alternatives in a scientific manner. This school is developed during the scientific management era. All the employees should be paid fairly and based on the work done, skills, knowledge, experience, cost of living and other factors yielding satisfaction to both employee and the firm. He started his career as a trainee in a small machine shop and was promoted to the level of an engineer. This approach was supported and developed by Henry L. Gantt, Frank Gilbreth, Lillian Gilbreth, Harrington Emerson, etc. a. Different organizations with different objectives and different competitive environ­ments require different plans. The Quantitative Approach. However, all problems are not likely of the same nature and hence this approach also has limitations. The knowledge based on experiences of successful managers can be applied by other managers in solving problems in future and in making decisions. This considers management as a system of mathematical models and processes and involves interdisciplinary approach. (iv) The mathematical calculations are executed so as to find a course of action that will maximize the objective function or the goal utility. Each element is termed separately, and the total time for the job is found out. Another basic feature of the systems approach is that attention is paid towards the overall effectiveness of the system rather than the effectiveness of subsystems. The users of such models are known as operations researchers or management scientists. But major part of it relates to Fayol’s work. Not all management problems can be expressed in terms of mathematical models and these models cannot be considered to provide judicious decisions. If one employee receives commands from several superiors, it can lead to confusion and disorder. He evolved the functional organisation structure. Some of the biggest names in technology and finance are not just making headlines for innovative advancement in their industries. By Stephen Alfano. Since the remuneration and additional incentives inspires employees to provide their maximum effort to the organisation, the amount of payment and methods of payment should be chosen carefully and should be fairly paid. The Four Contemporary Approaches to Management According to Bateman and Snell (2013), sociotechnical systems theory implies that organizations are satisfactory when their employees (the social system) have the right tools, training, and knowledge (the technical system) to make goods and services that are valued by customers (Bateman & Snell, 2013, p. 20). The interests of one person should not take priority over the interests of the organization as a whole. Everything should be in its place and there should be a place for everything. The system works based on the information, material or energy from other subsystems as inputs. Thus, no new strategy is evolved and little effort is made to blaze new trails. It is not that only the chief executive ought to apply equity in his dealings with the subordinates. He said that the selection of workers should be done scientifically. It is the chain of superiors and subordinates from the highest level to the lowest level for the purpose of communication. (3) Interaction and Inter-Relation – The elements of system are interrelated to each other and works in co-ordination and cooperation to get the output. Frederick Winslow Taylor (1865-1915) was the first to recognise and emphasise the need for adopting a scientific approach to the task of management. b. Further, he developed fourteen management principles that have been widely circulated as guide for management thought. The waste efforts are eliminated. The Interpersonal Behaviour Approach (Behaviour School), 3. Every manager has to apply the various approaches of management according to the demands of the situation. The Operational Approach (Management Process School), 7. It was distinguished by its emphasis on finding way to get the work of each employee done faster. Operations Research, mathematical tools, simulation and model building are the basic methodologies developed by this school of thought. Content Guidelines 2. 8. Thus, the main focus of systems approach is on the interdependence and interrelatedness of the various subsystems. (i) The methods and techniques developed under it are being increasingly used for managerial decision-making. vi. A Division of Labour Based On Functional Specialisation: A maximum possible division of labour makes it possible to utilize all links of the organisation experts who are fully responsible for the effective fulfillment of their duties. The establishment of formal organisation structure, formal lines of authority, factory systems and procedures had to be undertaken for coordinated effort. Behavioural Science Approach. Fayol retired in 1918 officially, however his name continued to exist in the Board of Directors of the company till his death in 1925. Mental activities are carried out by the people in the office. In other words, decision making is contingent on situations. Academia.edu is a platform for academics to share research papers. This provides an overview of management approaches. Henry Fayol regarded as father of modern management theory, for creating theory of general management applicable equally to all kinds of administration and in all fields i.e. (ii) Assisting in faster decision-making based upon objective analysis of available information. Systems approach facilitates the study of each of these parts in detail to have a close understanding of the whole system. Order relates to arrangement of things and people. Management should retain employees who are skilled and efficient in their work and provide them clarity about their tenure so that both; the work and the employee are stable. This school is based on the evidence that management problems could be solved in a better way depending on the experiences of the managers. His primary concern was to increase productivity through greater efficiency in produc­tion and increased pay for workers, through the application of the scientific method. It shows that in the planning function (shown horizontally across or vertically down), there are other functions of management such as – organising, staffing, directing, and controlling. The human relations approach of management involves with the human behaviour and focused attention on the human beings in the organisation. Management affecting people, technology, values and human wants has attracted the attention of psychologists, anthropologists, sociologists, mathematicians, economists, politicians, scientists, physicists, biologists, business administration scholars and even practising managers. Coordinating the efforts of people so that objectives of individuals get translated into social accomplishments and social goals of the organization can be attained. This approach is explained further here. c. Maximum Output and Not Restricted Output: Taylor evolved methods of getting more production from the workers. Every organisation, irrespective of its size, today earmarks certain budget to embrace the new IT technologies so that they can delight their customers with quality service. Empirical means based on real experiences and observation rather than theory. The Socio Technical Systems Approach (E.L. Trist): This approach is based on the belief that personal attitudes and group behaviour are influenced by the technical system in which people work. He identified the activities in an industry into eight functions. They believe a theory can only be developed by the study and analysis of cases and comparative approach. (vii) Competitive problems and problems of Game Theory. This approach views management as a centre receiving information, processing it and disseminating it thus emphasizing the role of communication in management of business. Applying scientific approach, Taylor found out the minimum requirement of working condition. Right person should be employed for the right job. A study of the successes and failures of outstanding managers is made. At the same time, this approach recognises that the actual problems managers face and the environments in which they operate may vary between enterprises and levels”. Fayol believed work specialization is the best way to use the human resource in an organization. He defined management in terms of five functions: planning, organising, commanding, coordinating and controlling. Management Process or Administrative Management approach. Management is an art and a science. The contingency approach believes that it is impossible to select one way of managing that works best in all situations. Plagiarism Prevention 5. 4. Scientific Management: Nature and Scope of Scientific Management – Explained! iii. Operation researchers and analysts primarily belong to this group. Rather, it is the duty of the chief executive himself to ensure that managers at all levels apply equity in their dealings with their subordinates. It is better to have one manager of average ability than to have very efficient managers who merely come and go. The environment variables are independent and management variables (process, quantitative, behavioural and systems tools) are dependent. Fayol believed that while some authority should be given to the subordinates to make decisions, all major policy decisions should be made at the top management level. But with all these advantages, one must be conscious of the limitations of this school of thought. According to this school of thought, management no doubt makes use of other social and biological sciences; but they are made use of only to the extent they are relevant and that the fundamental functions of management as stated above constitute the core of management study. The computer can handle in minutes extremely complex problems with an immense volume of data and also calculate numerous variations in the solution. “The operational approach regards management as a universally applicable body of knowledge that can be brought to bear at all levels of managing and in all types of enterprises. But management, unlike law, is not a science based on precedent, and future situations exactly resembling those of the past are unlikely to occur. For example, to decide on expanding the productive capacity, data from other departments in charge of product planning, market research, finance etc., are collected because the action of one department influences the action of others. Although one of the ways to classify management approaches is from the analysis of John G. Hutchinson (1971), which considers the development of management from five different perspectives, the history of management can be broadly classified into three groups: (1) the classical approach, (2) the neo-classical approach, and (3) the modern approach. System works for a common objective. (iii) Replacement of old rule of thumb method of management by scientific method, i.e., scientific determination of each element of a man’s job. (4) Inter-Dependent – Each element is interdependent to each other and unless and until the previous one is not carried out, the second one can’t be started. Every subordinate is accountable to his superior for his own decisions and actions and the decisions and actions of his subordinates in turn. The scientific management concept was first developed by F.W. It put stress on interpersonal relations and the informal groups. Human factor in management is no less important. Organisations behave as situation demands. ii. The knowledge of management theory and techniques is important in order to: ii. Automation is the current buzzword everywhere whether the organisation is in the agriculture, manufacturing or service sector. No one can deny the value of analysing past experience to obtain a lesson for the future. It draws from other fields of knowledge and adapts within it those parts of these fields which are specially useful for managers. (vi) Determining time standard for each job through stopwatch study of all the essential elements of the job. For instance, the planning and control functions are inseparable. The human relations approach is concerned with the recognition of the importance of human element in organisations. A study of each of the parts of the body is necessary to understand the whole body. d. Specialization-Division of work between management and workers. Underlying idea of this approach is that the internal functioning of organisations must be consistent with the demands of technology and external environment and the needs of its members if the organisation is to be effective. Hence the Mayo’s study showed that the role played by social needs is more responsive to the social forces operating at work than the economic rewards. (ii) A well-defined hierarchy of authority. Prior to World War II Systems approach was considered applicable & meaningful only to physical sciences. The use of method of science for solving management problems was thought of. The Socio Technical Systems Approach (E.L. Trist), Approaches to Management – Quantitative Approach, IT Approach, Systems Approach and Contingency or Situational Approach, Approaches to Management – Top 9 Approaches, :                               Â, 2. Here, the organisation is viewed as a system. This approach is opposed to one size fits all formula approach. For this he invented time study techniques. (v) Impersonality of interpersonal relations. In the process of control, if there is any deviation from the plans or targets, it can be corrected by verifying each of the earlier functions and identifying where things could have gone wrong. Management is essentially a decision-making function. The application of mathematical techniques is particularly useful in solving the physical problems of management such as inventory and production control. doing things out of their regular scope of work with self-direction and motivation. Functional, behavioural, quantitative and systems tools of management should be applied situationally. The systems approach allows us to see the critical variables and constants (those elements which do not change) and their interaction with one another. A system is composed of related and interdependent elements forming a unitary whole. Leadership Homer Sarasohn stated that “A leader’s main obligation is to secure the faith and… Every part of the body such as – the eyes, brain, heart, and so forth, can also be viewed as a sub-system. As per Fayol, authority is the right to give orders and the power to get obedience, Responsibility is about being accountable, and hence both Authority and responsibility are co-extensive. People who have contributed include Psychologists like A. H. Maslow, McGregor, Leavitt, Chris Argyris, Herzberg and McClelland and Sociologists like Bakke, Dubin, Katz, Gouldner and Etzioni. The Decision theory school was developed during the management science era. MANAGEMENT AND APPROACHES TABLE 3-1 Functions of Governmental Units 51 Infrastructure Coastal Police Provider/ Land Use Landowner Power Funding Developer Planning Municipality x x x x x Special district o x x County o x* x* x o S rate x x x x Federal x x x o NOTE: x, major role in most states; o, minor role in most states; and - , not a role in most states. The basic characteristics of a bureaucratic organisation are as follows: (i) A division of labour based on functional specialization. In year 1916, he published his well-known work in French entitled “Administration Industrielle et Generate” (Industrial and General Administration) which was translated in English in the year 1929 with few hundred copies distributed in U.K. Fayol wanted to establish a separate philosophy for management applicable generally to all human organizations. Image Guidelines 5. Frederick Taylor known as the ‘father of scientific management’. Wait until you feel better. Though the theories developed by scholars and practitioners on management are aimed at finding the best way of doing things; the management theory and science does not advocate ‘one’ best way to do things in every situation. Streamlining Space Launch Range Safety.Washington, DC: … The importance of a good ‘management’ and ‘leadership’ has been widely acknowledged in the creation of a successful organisation. This article throws light upon the three approaches to the evolution of management. In the next two sections we will compare our Agile-style Change Management approach to two classic Change Management approaches. In other words, there is ‘planning in control’ and there is also ‘control in planning’. Management should strive to achieve team spirit and teamwork amongst the employees. The application of science by a perceptive practitioner must take this into account in finding solutions to management problems. It can adjust to the changes in the environment. He published papers on “piece rate system”, “the art of cutting metals” and “shop management”. Leaderhip is the capability of a person to impact the subordinates, leading them to reach the organizational objectives (Popovici 2012). Privacy Policy 9. “Twelve principles of Efficiency” published in 1912, the important ones being: (i) Proper job description based on an objective and fact based analysis. Frederick Winslow Taylor has defined, “Scientific management means knowing exactly what you want, men to do and seeing that they do it in the best and the cheapest way”. This unbiased approach predictably leads to optimum efficiency. It must emphasize on “people” as a part of management. Scientific Management approach 6. The Behavioral Approach 3. The employees should give importance first to the general interest/common goal than his individual interest. Report a Violation 11. 2. Mathematical approach believes that planning, decision-making, organizing, etc., can be done through logical processes and can easily and appropriately be represented using mathematical equations and models. who is superior to whom. Check out these elements explained in full, in the new Collaborative Project Management Handbook, Second Edition According to this school, management is the study of functions of managers and the functions of managers are the same irrespective of the type of organization. Management 3.0 workshops cover theoretical and practical agile management, with a strong focus on tools that you can use directly after attending the workshop. So, the employees should work as a team. With the result, the manager cannot say, ‘Yes, the planning function is over, now I can start the organising function’. They were also responsible or such management tools as the process chart, flow diagrams and merit rating system for employees. (iii) This approach has given effective tools to solve problems of planning and control. This would help produce staunch loyalty to the organisation. The evolution of management theory can be studied under the following three parts: Scientific Management approach is also known as the productivity or efficiency approach. Managers could not solve the problems by trail and error methods. ADKAR, Best Practices, Communications, Dale Carnegie, Kotter, Organizational Change Management (OCM), Prosci. His theory can be understood under the following headings: Fayol divided all activities of industrial enterprises into six groups. The system of promotion should correspond to seniority or merit or both. He published a book on “The Principles of Management” in 1911. (iv) Scientific selection and training of workers. They can understand and learn to apply effective techniques in comparable situations. From that position he progressed to become Chief Engineer in 1884. Figure 2.3 shows that each of the management functions can be f6und in the other functions also. An open system is one which is affected by its environment and a close system is one in which environment has no influence on the organization. There are several approaches to understand what management is. Similarly, a particular village can be viewed as a system and every household there in can be viewed as subsystem. When Fayol got the position of managing director at that time the company was almost bankrupt and when Fayol retired from his services, it became one of the leading organization in the coal business in France. The overall effectiveness of each system is determined by the effectiveness of the subsystems. It is primarily based upon the economic rationality of all employees. Everything you need to know about the approaches to management. Mere technology cannot make the organisations successful. i. iii. B. A model is a simplified representation of a real life situation. Thus, contingency approach with situational emphasis and integration of environment into management and practice seems more appropriate in the contemporary context. Establishing the Standard of Performance: Taylor said that production time for each job should be found out scientifically. Management is more art than science in that managers constantly have to use their judgment and expertise. This authority is given to execute responsibilities entrusted and the responsibility is the accountability of authority. Lawrence in 1970 who were critical of other approaches presupposing ‘one best way to manage’. In change management, we use engagement and communication planning to ensure we understand, track, and engage audiences at the right time. Behaviourists pay major emphasis on human relations, informal group communication, employee motivation and leadership styles Hawthorne Experiments (1928-32) conducted by Elton Mayo and his associates gave recognition to the contribution of behaviourists. Case study approach which is widely followed in today’s premier business schools across the world has emanated from this thinking. Providing good working condition will improve industrial efficiency. This evolved that people are motivated by economic incentives and that they will rationally consider opportunities that provide for them the greatest economic gain. To ensure obedience and respect for superiors, and rules, procedures and policies. Though, in the chart, it is shown that planning is the first function and control is the last function, in reality, there is no such starting and ending function. 3. 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