my management thoughts

8/7/2019 My Management Thoughts

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Management Approaches/Schools

Classical School Scientific management (FW Taylor)

Administrative Management (Henry Fayol)

Bureaucratic /Organizational School (Max Weber)

Neo classical Human Relations approach (Elton Mayo, Roethisberger) Behavioral Science Approach (Maslows)

Modern school Mathematical/quantitative approach

Systems approach Contingency approach


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Classical Schools

Assumptions Laid emphasis on division of Labor, specialization, functional processes and span of

control

Viewed organization as machinery. The human factor and environmental factors are

dealt with in very rudimentary manner. Hence called machinery theory

Believed that the people at work can be motivated by economic regards and they

are rational economic beings Closely associated with industrial revolution

Criticism

Close system assumption

Unrealistic assumption of human behavior

Economic rewards are main motivators

Neglected the human factor No integration between workers and decision makers


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F.W. Taylor and Scientific

Management Taylor considered as Father of scientific Management Scientific Management is concerned with knowing what you want men to

do and then see that they do it in the best and cheapest way

Scientific Management is the systematic study of the relationships between

people and tasks for the purpose of redesigning the work process for higherefficiency.

Defined by Taylor in the late 1800s to replace informal rule of thumb

knowledge.

Taylor sought to reduce the time a worker spent on each task by optimizing

the way the task was done.


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Four Principles of Scientific Management

Study the ways jobs are performed now and determine new ways to do them.

Gather detailed time and motion information.

Try different methods to see which is best.

Codify the new methods into rules.

Teach to all workers the new method.

Select workers whose skills match the rules.

Establish fair levels of performance and pay a premium for higherperformance.

Workers should benefit from higher output


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Techniques of Scientific Management Scientific Task setting fair days work

Work study time, motion, fatigue and method study

Planning separate from doing action

Scientific selection and training of workers

Specialization for higher productivity

Standardization of machine, tools, output, process, methods

Incentive wage plan profit sharing

Congenial atmosphere of work

Functional foremanship Specialization at supervisory level

GM

Workshop Manager

Planning manager Production Manager

Time and cost clerk

Instruction Card Clerk

Route Clerk

deciplinarian

Gang Boss

Speed Boss

Repair Boss

Inspector

worker


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Scientific Management

Benefits

Promotes use of scientific methods

Better utilization of resources

Maximizing productivity and production

Encourages right people to right job and specialization, standardization

Owner and worker both are benefited

Criticism

Production centered ignores all other areas (finance, marketing,

accounting)

Neglect human aspect

Wrong assumptions

Workers are rational economic beings

Workers cannot plan purposely under perform

Restricted application not suitable for service industries and higher

level of managements. Only for production

Over specialization leaves little freedom on the job and to learn new

things, monotony of job


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Administrative approach

Identifies the process of management andtries to develop management principles

Regards that management is a function

and process

Universal nature but are flexible like

biological science

Also called process approach or

functional approach or universal

approach


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Henry Fayol and Administrative

Management Runs parallel to scientific management era classification of business activities (Technical, commercial, financial,

security, accounting, administrative)

management function (planning, organizing, commanding, coordinating,

controlling) 14 Principles of Mgmt

Flexible and adaptable principles

Universal principles

Qualities of Manager ( Physical, Mental, Moral, Educational, Technical,

experience)

Education and training


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Fayols Principals of Management Division of Labor

Authority Discipline

Unity of command

Unity of Direction

Subordination of individual interest to general interest

Remuneration

Centralization

Scalar chain

Order

Equity Stability of tenure of personnel

Initiative

Esprit de corps


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Bureaucratic school Main thinkers are Max Webber, Chester I

Bernard

Believed that the every part of organizationshould help in achieving goals

Stable and well defined hierarchy and line ofcommand

Development of clear set of rules, regulationsand procedures in writing guiding actions,decision making and ensuring consistency andcoordination and conflict resolution

Record keeping in separate files

Scientific selection of employees on the basis ofcompetency


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Webers

Principles of

Bureaucracy

Figure 2.2


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Webers Five Principles of

Bureaucracy Authority is the power to hold peopleaccountable for their actions.

Positions in the firm should be held based on

performance, not social contacts. Position duties are clearly identified so that

people know what is expected of them.

Lines of authority should be clearly identified

such that workers know who reports to who.

Rules, standard operating procedures (SOPs),

and norms guide the firms operations.


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Criticism to Bureaucratic school

Ignores the informal aspect of theorganization

Rigid rules may cause lower performance

Discourage the acceptance of responsibility Process of communication and decision

making is slow and inflexible

Do no speak about conflict resolutionmechanism

Inflexible organization


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Modern school

Post 1950 school of thought Combination of classical and neo classical

theories

Centered around the concept of system Main theories are

Systems approach

Mathematical or quantitative approach

Decision theory approach

Contingency theory

7S approach


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System

PlansObjectives

GoalsMethodsProcedures, policies

InputsMan

MoneyMachineMaterial, information

Process

Conversion of input intooutput

Output

ProductInformation

Feedback / Information


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Systems Approach More in line with the reality of broader environment and

recognizes that we do not operate in isolation Recognizes that the organization is a system made up of

various components or sub-systems having definitivegoals

These sub-systems are interrelated and interdependentand these relationship defines the effectiveness of theoverall system

Attention to be paid for effectiveness of the wholesystem and not of sub-systems

Basically a problem solving approach to scientificallysolve complex problems

System can be of 2 types Open system interacts with the outside environment (global,

political, economic, technological, social)

Closed system do not interact with environment


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Management as System

Social system unlike biological ormechanical system

Open system

Adaptive

Dynamic

Probabilistic

Multilevel at organization, business,subsystem level

Multivariable not a cause-effect model

Integrated approach


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Appraisal to Systems approach

More realistic and brings out the complexity of real lifemanagement problems in more focused way

Used to study the complex organizations

provides framework for analysis and control upon

diverse business operations in more coordinated manner Provide timely and accurate information for decisionmaking

Allows for coordinating and integrating various subsystems to achieve organizations goals

Viewing organization as a subsystem of broader externalenvironment makes it more sensitive and responsive tothe environment and stakeholders

Does not speak about what manager should do


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Decision Theory Approach

This school of thought concentrates around therational decision making selection of bestpossible alternative among the available options

Major contributor is Simon

Based on the assumption that the decision makingis basic job of every manager and therefore theeffective management is rational decision making.

Organization is a group of different decisioncenters and effectiveness of the organization

depends upon the quality of decision. Besides the techniques and process of decision

making, the information systems, social andphysiological aspects of decision makers affect thedecision making


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Decision Theory Approach

The decision making process is Intelligent activity searching for data

Design activity inventing, developing, applying

and analyzing best possible options Choice activity selecting a particular course of

action

Has a concept of bounded rationality

Managers do not search for maximum

satisfaction but good enough satisfaction

Because of the variable constraints


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Quantitative/Mathematical

Approach World war II stimulated the mathematical approach Mathematical and statistical aids solved complex military

problems and caught the eye of businessexecutives/managers

The basic assumption is that if the management (like

planning or decision making) is logical process, it can beexpressed in mathematical expressions.

These techniques improved the quality of decision andprofits increased by helping managers make andevaluate different alternatives more quickly and precisely

By late 1960s the use of quantitative techniques likeprobability theory, linear programming, queuing theory,games theory became indispensable part ofmanagement


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Criticism

Neglected the human factor. Experienceand human judgment cannot be replaced

by quantitative/scientific methods

Have less importance in organizing,staffing and directing

Focuses only on decision making

incomplete approach Cannot consider the factors that cannot be

represented in mathematical terms.


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Contingency/Situational Approach No thought answers all the management problems. Hence

came into existence To replace simplistic management thought and to integrateall the management theories

Very close to systems approach adaptable systemsapproach

Suggests that the manager must do what the situationdemands or managers actions must be contingent uponthe organizational situation or environment.

It says the success of management lies in identifying andunderstanding the variables of the situation and then

applying the tools, techniques and principles according tothe situation

There is no standard solution to the problem in everysituation. The correct technique would depend upon theprevailing situation


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AssumptionsAssumptions Each organization is unique

External environment of each organization is unique All subsystems of an organization are interrelated

creating huge no. of variable defining the complexsituation

There is no single best solution to problems

Criticism Limitation of time for managers to analyze all the

variables in a situation

Sometimes situation changes so rapidly Put much emphasis on managers ability to make

rational decision

Reactive and not proactive approach

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