APPROACHES TO MANAGEMENT

I.   Early Classical Approach

F.W. Taylor’s scientific Management

Fredrick Winslow Taylor is called “father of scientific management.” He joined as a labour at Midvale steel company in U.S.A at 1878.He became chief engineer in the year 1884 in the same company. He published papers on “price rate system” and shop management. He published a book on “the principles of scientific management” in 1911.

Taylor attempted a more scientific approach to management as well as the problems and the approach was based upon four basics principles.

Ø  Observation and measurement should be used in the Organizations.

Ø  The employees should be scientifically selected and trained.

Ø  Due to scientific selection and training of employee has the opportunity of earning a high rate of pay.

A mental revolution in the form of constant cooperation between the employer and employees should be given the benefits of scientific management.

Principles of scientific management

Taylor conducted various experiments at the work place to find out how human beings could be made more efficient by standardization the work. The following are the features of scientific management.

1 .Separation of planning and doing:

v  Taylor suggests the separation of planning from actual doing.

v  Taylor says that supervisor should be done the planning.

v  The workers only concentrate on doing the work.

2.   Functional foremanship:

v  Taylor developed a theory called functional foremanship based on specialization of functions.

v  In this system eight foreman were involved to direct and control the activities of the workers.

3 .Job analysis:

Every job that requires minimum movements and less cost and least time is the best way of doing the job. This can be determined by motion, time and fatigue study.

(a)  Time study:

The movement, which takes minimum time, is the best one. This helps in firms the fair work for a period.

(b)    Motion study:

Taylor suggested that eliminating wasteful movements and performing only necessary movements.

(c)  Fatigue study:

Employees are both physical as well as mental fatigue easily. Fatigue study indicates the amount and frequency of rest required in completing the job. Taylor suggests a fair day‟s work requiring certain movements and periods to complete it.

4.   Standardization:

Standards must be maintained in respect a instruments and tools, period of work, amount of work, working conditions, cost of production etc. Normally these standards will be fixed in advance on the basis of various experiments

5.   Scientific selection and training:

   Taylor has suggested that workers should be selected on scientifically.   A worker should be physically and technically most suitable.

   After selection should be given on the training of workers which makes them more efficient and effective.

6.   Financial incentives:

   Financial incentives can motivate the workers to put in their maximum efforts.

   According to this scheme a worker who completes the normal work gets wages at higher rate.

   Who does not complete gets at a lower rate.

   Taylor has suggested that wages should be based on individual performance and not on the position which he occupies.

7.   Economy:

   Scientific management enhances profit and economy.

   The economy and profit can be achieved by making the resources more productive as well as by eliminating the wastages.

8.   Mental Revolution:

   Scientific management is based on co-operation between management and workers.   Co-operation enhances the effective managerial activities.

       Mutual conflict should be replaced by mutual co-operation which is beneficial  to both.

Henry Fayol’s Contribution

Henry Fayol, a French industrialist concentrated on that administrative aspect of scientific management. His contributions and concentrated in his famous book” The general and industrial administration”. Fayol‟s famous book into two parts. The first is concerned with the theory of administration in which Fayol divided the total industrial activities into six categories which are given below:

1.   Technical (Production, Manufacture)

2.   Commercial (Buying, Selling, Exchange)

3.   Financial (Search for and optimum use of capital)

4.   Security (Protection of property and person)

5.   Accounting (Balance sheets, Cost statistics)

6.   Management (Planning, Organizing, Coordinating, Directing, Controlling)

The second is concerned with the fourteen principles of management .They are

1.       Division of work.

2.       Authority and Responsibility.

3.       Discipline

4.       Unity of Command.

5.       Unity of Direction.

6.       Subordination of individual interest to general interest.

7.       Remuneration of personnel.

8.       Centralization.

9.       Scalar chain.

10.   Order.

11.   Equity.

12.   Stability of tenure of personnel.

13.   Initiative

14.   Esprit decorps.

1.  Division of work:

Work should be divided in a proper way with reference to the available time. In general worker on the same job and the managers on the same duty acquire ability sureness and accuracy which increase their output.

2.  Authority and Responsibility:

Authority: It is the power given to a person to get work from his subordinates.

Responsibility: It is the kind and amount of work expected of from a man by his superior. One of the essential elements of a good management is delegation of authority to the lower levels of management and fixing responsibility on town.

3.  Discipline:

Discipline is very essential for the smooth running of organizations. To Fayol, discipline will result from good leadership at all levels of the organization, fair agreements and judiciously enforced penalties for infractions.

4.  Unity of command:

An employee must receive orders and instructions from one supervisor only. Multiple commands will cause conflicts and confusions. A sound management should avoid dual commands.

5.       Unity of Direction

Unity of direction signifies each group of activities having the same objectives must have one head and one plan. All the groups should coordinate and work together to achieve the common goal.

6.  Subordination of individual interest to general interest:

Every employee is working in an organization and his interest is to earn money to meet his personal needs. The general interest of the organization is development and the progress of the organization.

The employees should give importance first to the general interest than his individual interest. It will lead to effective management of the organization.

7.  Remuneration of personnel:

    Remuneration should be fair for both the employees and employers. The wage Payment systems should satisfy the employees.

8.  Centralization:

The organization is centralized when the power is connected with one person. If the power is fully distributes to the subordinates of the organization is fully decentralized. For effectives management of people decentralization is necessary. Decentralization helps to take a quick decision on all important problems.

9.  Scalar chain:

Scalar chain principles states that instructions and orders should be sent from the top management to the lower management.

10.  Order:

Two types of order 1) Materials order 2) Social order.

In any organization materials and for men are correct places provided. So that materials can be easily taken out and men easily located and also save time.

Materials order:” A place for everything in its place”

Social order:” A place for everyone and everyone in place”.

11.  Equity:

Equity refers to the treatment of employees equally. Equal treatment of the employees helps to achieve organizational goals.

12.  Stability of staff:

A high employee turnover rate is not good for the efficient functioning of any organization.

13.                   Initiative: It is concerned with thinking and execution of a plan. When employees come forward with new ideas, they must be encouraged by the superiors. It will create the morale of the employees.

II.   NEO- CLASSICAL APPROACHES

These approaches      are called   neo-classical    because    they   do not   reject    the classical concepts but only try to refine and improve them.

     THE HUMAN RELATIONS MOVEMENT:

The real inspiration for the movement, however, came from the  Hawthorne experiments which were done by Prof. Elto Mayo” and his colleagues at the  Western  Electric Company‟s plant in Cicero. Illinois from 1927 to 1932. The  plant  employed 29,000 orkers to manufacture  telephone  parts  and  equipment.  We  briefly  describe  these experiments in the following four parts:

v  Illumination Experiments.

v  Relay Assembly Test Room.

v   Interviewing Programme.

v  Bank Wiring Test Room.

ILLUMINATION EXPERIMENTS

In this phase, the popular belief that productivity is correlated with illumination was tested.  Experiments were  done on a group  of  workers.  Their   productivity   was   measured at various levels  of  illumination.  But  the results  were  erratic.  Puzzled  with  this phenomenon, researchers, improved their methodology. 2 groups of  workers,  in different  buildings  are  take.  One  group  called  the  control  group  worked   under constant  level  of  illumination  and  the  other  group  called  the  test  group   worked   under under changing levels  of  illumination.  The  post-test  productivity  of  the  two  groups  was  then  compared  and  it  was  found  that  illumination  affected  production   only marginally.

RELAY ASSEMBLY TEST ROOM

In this phase, the  object  of the  study  was  broadened.  It  now  aimed  at  knowing  not  only the impact  of  illumiation  on  production  but also  of  such  other  factors  as length  of the working day, rest pauses , their frequency and duration  and  other  physical  conditions. A group of six women workers,  who  were  friendly  to each  other,  was  selected  for  this  experiment.   These   women   workers,   were   told   about   the experiment  and  were  made  to  work  in  a  very   informal   atmosphere   with   a supervisor- researcher in a  separate  room.  The  superviser-researcher  acted  as  their  friend,  philosopher   and  guide.   During  the  study ,   several  variations  were  made  in   the  working  conditions  to  find  which  combinations   of   conditions   was  most   ideal   for  production .  Surprisingly,  the  researchers  found  that  the  production  of  the  group had  no  relation  with  working  conditions.  It  went  on  increasing  and  stabilized  at   a high level even when all the improvements were taken away . The following factors are identified for the constant performance,

A.      Warm informality in the small group and tension-free inter personal and social relations as a result of the relative freedom from strict supervision and rules.

B.       High group cohesion among girls.

INTERVIEWING PROGRAMME

In  this  phase,  they   wanted  to   know  as   to  what   were  the  basic  factors  responsible for human behavior at work. For this  purpose  they  interviewed  more  than  20,000  workers. At first, direct questions were  asked  relating  to  the  type  of  supervision,  working  conditions,  living  conditions  and  so  on.  But   since   the   replies   were  guarded,  the  technique  was   changed   to  Non-directive   type   of   interviewing.   In which workers  were  free  to  talk.  This  study  revealed  that  the  workers‟  social  relations inside the organisation influence their attitudes and behaviors.

BANK WIRING OBSERVATION ROOM

This phase involved an in-depth observation of 14 men making  terminal  banks  of  telephone   wiring   assemblies,   to   determine   the  effect    of   informal    group  norms and  formal  economic  incentives  on  productivity.   It   was  found  that   the   group  evolved  its  own  production  norms  for  each  individual  worker,  which  were   much lower  than  those  set  by   the  management.   Workers  would   produce   that  much   and  no more, thereby defeating the incentive system.B. BEHAVIOURAL APPROACH

This approach is an improved and a  more  mature  version  of  the  human  relations approach  to  management.  Douglas   McGregor,   Abraham   Maslow,   kurt   Lewin, Chester  Barnard,   Mary  Parker   Follett,   George   Homans,   Rensis   Likert,   Argyris,   and  Warren  Bennis 18   are   some   of   the   foremost   behavioral   scientists   contributed to  the   development   of   the   behavioral   approach  to   management.   These  people prefer  more  flexible  organisation  structures   and   jobs  built   around   the   capabilities and aptitudes of average employees. to participative and group  decision-making. Encouraging the  process   of   self-direction   and  control .  It   organisations   as   groups   of individuals with certain goals. The democratic-participative  style  is  desirable,  motivation  is  complex  man.  This  model  suggests  that   different   people   react differently  to  the   same   situation   or  react   the   same   way   to  different   situations.   No two people are  exactly  alike,  and  the  manager  should  tailor  his  attempts  to  influence people according to  their  individual  needs.  Conflict  is  inevitable  and  sometimes is even desirable.

III.    MODERN APPROACH

A.     QUANTITATIVE APPROACH

This  approach  is  also  called  the   management   science   approach.   It   gained  momentum  during  the  Second  World  War .   The   interdisciplinary   groups   of   scientists  who  were   engaged   for   this   purpose   were   known   as   Operations   Research  (OR)  teams.  In  later  years,  when  the   war   ended,   people   made   use   of  this  technique  in  solving  problems  of  industry  also.  A  mixed  team  of   specialists   form   relevant   disciplines   is   called   in   to   analyses   the   problem   a   course    of action  to  the   management.   The   OR  team   presents   the   management   with   a   rational                         base                         for                 making     a                                decision.

B.      SYSTEM APPROACH

Like   a   human   organism an  organisation     is    a  system.    In    an    organisation also people, tasks and the management are interdependent.

SYSTEM CONCEPTS:

System theory was first applied in the fields of science and engineering.

“A system is essentially a set or assemblage of things  interconnected  or independent, so as to form a complex unity”.

SOME KEY CONCEPTS: SUBSYSTEM:

While  an  organisation  as  a  whole  is  a  system,  the  various  components  or   parts  within  it  are   called  the   subsystem.   Thus   a   department   is   a   subsystem   of  the organisation.

CLOSED SYSTEM;

A  system  that  does  not  interact  with  its  environment  A  closed   system   has fixed  boundaries,  its   operation   is   relatively   independent   of   the   environment   outside the system.

OPEN SYSTEM;

A    system    that    interacts    with   its    environment.    Thus    an  open    system is one which constantly comes into contact with the environment.

SYNERGY:

Synergy    means     that    departments    that interact cooperatively are more productive than they would be if they operated in isolation.

These   resources   are   called   as inputs.      These   inputsare converted into products using  technology, systems  and  methods.

Systems   approach   of   management   provides   an   integral   approach   to management. This approach is more useful in managerial decision.  It provides a framework  through  which   organisation.   Environment   interaction   can   be   analyzed and contribute for effective decision-making.

C.     CONTINGENCY APPROACH:

The contingency approach is also called as situational approach. It is developed b managers,consulant and researchers who tried to apply y for real life situation. Some management concepts are very effectively in one situation. The same management concept is failed in other situation .Results or solutions differ.

In   contingency  approach   theory  managers identify  which     is suitable technique for a particular person ,particular environment of the organisation at a specific time.

The contingency approach theory is more favor to the modern management theory.

External   environment

DIFFERENT  APPROACHES  TO THE ANALYSIS OF    MANAGEMENT

EMPIRICIAL OR CASE APPPROACH

Studies experience through cases. Identifies successes and failures.

INTERPERSONAL BEHAVIOR APPROACH

Focus on interpersonal behavior, human relations, leadership, and motivation. Based on individual  psychology.

GROUP BEHAVIOR APPROACH

Emphasison behavior of people in groups. Based on sociology and social psychology. Primarily study of group behavior patterns. The study of large groups is often called “Organization behavior.”

COOPERATIVE SOCIAL SYSTEMS APPROACH

Concerned  with both interpersonal   and group behavioral    aspects leading to a system of cooperation. Expanded concept includes any cooperative group with a clear purpose.

SOCIO- TECHNICAL SYSTEMS APPROACH

Technical system has great effect on social system (Personal attitudes, group behavior). Focus  on production, office operations, and other  areas with close  relationships  between the technical system and people.

DECISION THEORY APPROACH

Focus on the making of decisions, persons or groups making decisions, ad the decision making process .

SYSTEMS APPROACH

Systems concepts have broad  applicability.  System  have  boundaries,  but  they  also interact with the external environment; i.e., organizations are open system. Recognizes importance of studying interrelatedness of planning. Organizing , and controlling in an organization as well as the many subsystems.

MATHEMATICAL OR “ MANAGEMENT SCIENCE “ APPROACH

Managing is seen as mathematical processes, concepts, symbols, and models. Looks at management as a purely logical process, expressed in mathematical  sysbols and relationships.

CONTINGENCY   OR SITUATIONAL APPROACH

Managerial practice depends on circumstances (i.e., a contingency or a situation). Contingency theory recognizes  the influence  of given  solutions  on  organizational  behavior patterns.

MINTZBERG’S    MANAGERIAL    ROLES APPROACH

Original   study  consisted   of   observations of   five chief  executives.    On    the    basis of this  study.  Ten   managerial   roles   were  identified  and  grouped            into (1) interpersonal,

(2)      informational, and (3) decision roles.

McKINSEY’S  7-S FRAMEWORK     APPROACH

The seven S‟s are (1) strategy, (2) structure, (3) systems, (4)  style,  (5)  staff, and  (6) shared values, (7) skills.

OPERATIONAL    APPROACH

Draws together concepts, principles , techniques, and knowledge from other fields and managerial approaches. The attempt is to develop science and theory with practical application. Develops classification system built around the managerial functions  of planning, organizing, staffing, leading, and controlling

CONTINGENCY APPROACH:

The contingency approach is also called as situational approach. It is developed b manager consultant and researchers who tried to apply for real life situation. Some management concepts are very effectively in one situation. The same management concept is failed in other situation .Results or solutions differ.

In   contingency  approach   theory  managers identify  which     is suitable technique for a particular person ,particular enviroment of the organization at a specific time.

The contingency approach theory is more favors to the modern management theory.