What is Management ?
“The planning, organizing, leading, and
controlling of human and other
resources to achieve organizational
goals effectively and efficiently”
“Management is a set of activities
directed
at
an
organization’s
resources with the aim of achieving
organizational goals in an efficient
and effective manner”
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What is Management ?
Approaches to Management
•Process approach
•Quantitative approach
•System approach
•Contingency approach
•Human relation approach
•Behavioral approach
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What is Management ?
Approaches to Management
• Up to the 20th century (premodern era)
• Adam smith’s contribution to the field of
management
• Industrial
revolution’s
influence
on
management practices
• In the early 20th century
• Scientific management
• General administrative theory
• The human resources approach
• The quantitative approach
• From the later 20th century to the present
• The process approach
• The systems approach
• The contingency approach
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What is Management ?
Approaches to Management
Universal Approach / Process Approach / Administrative Approach
Universal Process Approach – Henry Fayol
• Fayol published Administration Industrielle et Générale
in 1916.
• Fayol divided the manager’s job into five functions
• Developed 14 universal principles of management.
• Assumes all organizations require the same rational
management process and core management process
remains the same regardless of the purpose of the
organization, therefore, the management process can
be reduce to a set of separate functions and related
principles.
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What is Management ?
Approaches to Management
Universal Approach / Process Approach / Administrative Approach
Henri Fayol’s Five Universal Functions (also
called processes ) of Management
• Planning
• Organizing
• Command
• Coordination
• Control
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What is Management ?
Approaches to Management
Universal Approach / Process Approach / Administrative Approach
Fayol’s 14 Principles of Management
1. Division of Work
8. Centralization
2. Authority
9. Scalar Chain
3. Discipline
10. Order
4. Unity of Command
11. Equity
5. Unity of Direction
12. Stability of Tenure of
Personnel
6. Subordination of
Individual Interests to the
General Interest
7. Remuneration
13. Initiative
14. Esprit de corps
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What is Management ?
Approaches to Management
Universal Approach / Process Approach / Administrative Approach
Division of work: Specialization allows the
individual to build up experience, and to
continuously improve his skills. Thereby he can be
more productive.
Authority: The right to issue commands, along with
which must go the balanced responsibility for its
function.
Discipline: Employees must obey, but this is twosided: employees will only obey orders if
management play their part by providing good
leadership.
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What is Management ?
Approaches to Management
Universal Approach / Process Approach / Administrative Approach
Unity of Command: Each worker should have only
one boss with no other conflicting lines of
command.
Unity of Direction: People engaged in the same
kind of activities must have the same objectives in a
single plan. This is essential to ensure unity and
coordination in the enterprise. Unity of command
does not exist without unity of direction but does
not necessarily flows from it.
Subordination of individual interest: Management
must see that the goals of the firms are always
paramount.
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What is Management ?
Approaches to Management
Universal Approach / Process Approach / Administrative Approach
Remuneration: Payment is an important motivator
although by analyzing a number of possibilities, Fayol
points out that there is no such thing as a perfect system
Centralisation: This is a matter of degree depending on
the condition of the business and the quality of its
personnel.
Scalar chain-Line of authority: A hierarchy is necessary for
unity of direction. But lateral communication is also
fundamental, as long as superiors know that such
communication is taking place. Scalar chain refers to the
number of levels in the hierarchy from the ultimate
authority to the lowest level in the organization. It should
not be over-stretched and consist of too-many levels
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What is Management ?
Approaches to Management
Universal Approach / Process Approach / Administrative Approach
Order : Both material order and social order are
necessary. The former minimizes lost time and
useless handling of materials. The latter is achieved
through
selection.
Equity: Inorganization
running a and
business
a ‘combination of
kindliness and justice’ is needed. Treating
employees well is important to achieve equity.
Stability of tenure of personnel: Employees work
better if job security and career progress are
assured to them. An insecure tenure and a high rate
of employee turnover will affect the organization
adversely.
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What is Management ?
Approaches to Management
Universal Approach / Process Approach / Administrative Approach
Initiative : Allowing all personnel to show their initiative in
some way is a source of strength for the organization.
Even though it may well involve a sacrifice of ‘personal
vanity’ on the part of many managers.
Esprit de corps: Management must foster the morale
of its employees. He further suggests that: “real
talent is needed to coordinate effort, encourage
keenness, use each person’s abilities, and reward
each one’s merit without arousing possible
jealousies and disturbing harmonious relations.”
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What is Management ?
Approaches to Management
Universal Approach / Process Approach / Administrative Approach
Universal Process Approach – Bureaucracy - Max Weber
• Weber developed a theory of authority structures and
described organizational activity on the basis of
authority relations.
• He described an ideal type of organization that he
called a bureaucracy, characterized by division of labor,
a clearly defined hierarchy, detailed rules and
regulations, and impersonal relationships.
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What is Management ?
Approaches to Management
Universal Approach / Process Approach / Administrative Approach
Universal Process Approach – Bureaucracy - Max Weber
Grounds of legitimate authority
Charismatic leadership: Leader has special power within
him which lead to centralized decision making and less
delegation of authority. such phenomena leads to
sometimes irrational
Traditional or patriarchal leadership: In this kind of
phenomena authority is due to inheritance as like family
business.
bureaucracy: under this phenomena organization is
divided into functional units then authority is given to carry
the functions which leads to bureaucracy under which
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leadership comes from a legal channel
What is Management ?
Approaches to Management
Universal Approach / Process Approach / Administrative Approach
Universal Process Approach – Bureaucracy - Max Weber
Principles of bureaucracy
• Hierarchy
• Division of Labor
• Impersonal nature
• Professional nature of employment
• Rationality
• Uniformity
• Technical competence
• Stability
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What is Management ?
Approaches to Management
Universal Approach / Process Approach / Administrative Approach
Universal Process Approach – Bureaucracy - Max Weber
Hierarchy: Under this concept each lower office is under the control
and supervision of the higher officer.
Division of labor: Bureaucracy requires high degree of
specialization of labor which requires employment on the basis of
ability not loyalty with someone.
Impersonal nature: Bureaucracy requires the organization to follow
a formal pattern and standing operating procedures to perform a job
keeping an impersonal environment in organization
Professional nature of employment: Bureaucracy requires the
organization engage skilled individuals and give them rewards,
authority and promotion according to their position
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What is Management ?
Approaches to Management
Universal Approach / Process Approach / Administrative Approach
Universal Process Approach – Bureaucracy - Max Weber
Rationality: Bureaucracy requires the organization to classify the
organizational areas according to functions rationally. Within each
function then authority and performance measures are defined
Uniformity: Bureaucracy requires uniform performance and reward
throughout all units
Technical competence: Bureaucracy requires engagement of
specialist
Stability: Bureaucracy requires individuals to remain for longer
periods based on performance
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What is Management ?
Approaches to Management
Quantitative /Scientific Approach
• Started in late 1800’s and early 1900’s. Frederic Taylor
was the founder of scientific management
• The
quantitative
approach
to
management,
sometimes referred to as operations research (OR) or
management science. It includes applications of
statistics, optimization models, information
models,
and
computer
simulations, linear programming,
and
so on,
which
can be used to solve
management problems.
• Scientific management: “that kind of management
which conducts a business or affairs by standards
established by facts or truths gained through systematic
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observation, experiment, or reasoning.”
What is Management ?
Approaches to Management
Quantitative /Scientific Approach
• Describes the production-oriented area of management
dedicated to improving efficiency, cutting waste, and
improving quality.
• Covers the technical and quantitative approaches to
management :
• Management science
• Operations research
• Production management
• Operations management
• Frederick W. Taylor’s Scientific Management found:
•
•
•
•
Standardization of work practices and methods reduce waste and increase
productivity
Time and task study of workers’ efforts to maximize productivity and output.
Systematic selection and training of workers to increase efficiency and
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productivity.
Differential pay incentives based on established work standards.
What is Management ?
Approaches to Management
Quantitative /Scientific Approach
• Frank and Lillian Gilbreth:
• Refined time and motion study methods for use in
work simplification.
• Henry L. Gant:
• Refined production control and cost control
techniques.
• Developed the Gantt chart for work-scheduling of
projects.
• Early advocate of the importance of the human
factor and the importance of customer service over
profits.
• Walter A. Shewhart
• Introduced the concept of statistical quality control.
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What is Management ?
Approaches to Management
Quantitative /Scientific Approach
Taylor’s four principles of scientific management
The development of true science of work: Develop a scientific way for
each element of an individual’s work.
The scientific selection and progressive development of workmen:
Scientifically select and then train, teach, and develop the worker in
order to get the best results.
The bringing together of the science and the scientifically selected and
trained men: This require the identification and application of
technique to use the trained manpower for generating the maximum
out put with minimum input to get maximum productivity
The constant and intimate cooperation between the workers: The
relation between the employer /manager and workers is the most
important part. This requires to divide work and responsibility almost
equally between managers and workers. Managers take over all work
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for which it is better fitted than the workers.
What is Management ?
Approaches to Management
System Approach
• Chester I. Barnard’s presented the Early Systems
Perspective (Book Fcts. Of Executive)
• A collection of parts that operate interdependently to
achieve a common purpose.
• The system approach defines a system as a set of
interrelated and interdependent parts arranged in a
manner that produces a unified whole. Societies are
systems and so, too, are computers, automobiles,
organizations, and animal and human bodies.
• Defined principle elements in an organization as
• willingness to serve.
• common purpose.
• communication.
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What is Management ?
Approaches to Management
System Approach
Levels of systems
• Each system is a subsystem of the system above it.
• Identification of systems at various levels helps
translate abstract systems theory into more concrete
terms.
• Closed system
• A self-sufficient entity.
• It the system which is isolated and no environmental
influence can effect it and it does not effect any thing in
environment
Shut off from its
environment
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What is Management ?
Approaches to Management
System Approach
Open system
• Something that depends on its surrounding environment for
survival.
• An organization is a system that interacts with and depends
upon its environment.
• Organization’s stakeholders: any group that is affected by
organizational decisions and policies. The manager’s job is to
coordinate all stakeholders to achieve the organization’s goals.
• Organizational survival often depends
interactions with the external environment.
Input
Transformation
Feedback - stakeholders
on
successful
Output
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What is Management ?
Approaches to Management
System Approach
Open system
Input
Transformation
Output
Feedback - stakeholders
Inputs
Stakeholders
Outputs
1.
Material
1.
suppliers
1.
2.
Labor
2.
Employees
Goods and
services
3.
Money
3.
Investor
2.
Money
7information
4.
Customers
3.
Information
Tangible assets
5.
Society
4.
Environmental
effects
6.
Lenders
5.
Social
4.
5.
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What is Management ?
Approaches to Management
System Approach
Open system
• Every system as subs systems which interact with each and
differentiated on the basis of:
• Boundary spanning: those systems which direct interact
with systems
• Other systems can indirectly deal
1.
Function
2.
Space
3.
Time
4.
People
5.
Formality
6.
Automation
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What is Management ?
Approaches to Management
Contingency approach
• Contingency approach is an effort to determine through
research which managerial practices and techniques are
appropriate in what situation.
• Contingency approach is similar to systems approach
except management scholars realized it is impossible to
understand everything in system so they propose to just
study major contingencies of system.
• A research effort to determine which managerial practices
and techniques are appropriate in specific situations.
• Different situations require different managerial
responses.
• Can deal with intercultural feelings in which custom
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and habits cannot be taken for granted.
What is Management ?
Approaches to Management
Contingency approach
Contingency Characteristics
• An open-system perspective
• How subsystems combine to interact with outside
systems.
• A practical research orientation
• Translating research findings into tools and situational
refinements for more effective management.
• A multivariate approach
• Many variables collectively account for variations in
performance.
• Requirements of contingency approach
• Identification and handling of particular situation
• Responsiveness to changing variables in environment
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What is Management ?
Approaches to Management
Human Relations approach
•
The approach focuses in on organized activity that is related to how people
behave as individuals and work groups. (soc, psch, soc-psy, mgmt)
•
Human Relations Movement - developed to make working better for
workers - less destructive, more motivating, and more satisfying
•
The Threat of Unionization : The Wagner Act of 1935 legalized unionmanagement collective bargaining, promoting the growth of unions and
union avoidance by firms.
•
The Hawthorne Studies (1924) :The study’s results that productivity was
strongly affected by workers’ attitudes turned management toward the
humanistic and realistic viewpoint of the “social man” model.
•
Elton Mayo: Believed emotional factors were more important determinants
of productive efficiency than were physical and logical factors.
•
Mary Parker Follett: Advocated that managers become aware of how
complex each employee is and how to motivate employees to cooperate
rather than to demand performance from them.
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What is Management ?
Approaches to Management
Human Relations approach
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What is Management ?
Approaches to Management
Behavioural approach to management
•Traditional approach – Human relations
•Economic security
•Working conditions
•Monetary rewards
•Contemporary
approach
Behavioral
approach
•Researching human behaviours
•Managing people in light of behaviours
•Increasing emphasis on use of human skills
in addition to conceptual and technical skills30
What is Management ?
Approaches to Management
Behavioural approach to management
•Attempts to provide specific necessary background
skills needed to make managers of today and
tomorrow as effective with the conceptual and
humans dimension of management as they been in
past with technical or functional dimensions
•Emphasis is on developing the ability to understand,
alter, lead, and control the behavior of other individuals
and groups.
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What is organizational behavior ?
Study of human behavior in organization setting
Organizational behaviour attempts to provide
background and skills to deal with human dimension
of management
Understanding, prediction and management of
human behaviour in organization setting (Luthans)
“The study of individual behavior and group
dynamics in organizations” (Luthans)
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What is organizational behavior ?
Theoretical frameworks and organizational behavior model
Cognitive framework
•Cognition is a logical thinking that creates
“expectancy” that a particular event will lead to a
particular consequence
•Based on expectancy an individual behaves in a
certain manner on happening of certain event
•Therefore behavior is explained through cognition
and this makes cognitive framework the part of
organizational behavior e.g. how managers makes
decision and behave
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What is organizational behavior ?
Theoretical frameworks and organizational behavior model
Behaviouristic framework
•Behaviouristic approach is environmental based and take input from
environment
•The approach is based on observation
•Stimulus response phenomena i.e. a stimulus generates a response is
the basics of this approach also called as classical school
•Skinner (father of operant conditioning school) explained that stimulus
response helps to explain the physical reflexes but there exits operant
conditioning
•Operant conditioning stands that consequences of response infect
explains the most behaviors as compared to stimuli. It means expected
results of some input directs an individual to behave in certain way instead
of expected reaction in response to an action
•Therefore is behavior is function of its consequences
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What is organizational behavior ?
Theoretical frameworks and organizational behavior model
Social learning framework
•Social learning approach is a behavioral approach but
combination of cognitive and Behavioural framework.
•According to Bandura, behavior can be best explained
in terms of continues reciprocal interaction among
cognitive, behavioral and environmental determinants
•According to Bandura, personality is shaped by an
interaction among cognitive factors, behaviors and
environmental factors. This interaction is termed
reciprocal determinism.
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What is organizational behavior ?
Theoretical frameworks and organizational behavior model
Social learning framework – Organizational
behaviour model
•Cognitive approach – understanding the human
behavior
•Behavioural approach – predicting and managing human
behavior
•Cognitive approach – internal factors
•Behavioral approach – external factor
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Questions ?
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Thank You
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