Principles of Management Intro

8/3/2019 Principles of Management Intro

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Principles of

Management


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Resources Objectives

ManagementTheory & Practice

La

borers

Land

CapitalMachines

Raw material

Technology

Profitability

Developmentsurvival

Growth


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Management is an art of knowing what is to be

done and seeing that is done in the best

possible manner

by F W Taylor, father of

scientific management.


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Management is to forecast, to plan, to

organise, to command, to coordinate and to

control.

by Henri Fayol, father of modern

management.


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Define Management

Management is the process of designing &

maintaining an environment in which

individuals, working together in groups,

efficiently accomplish selected aims.


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Contd>>>>>>>

As managers, people carry out the managerialfunctions of planning, organizing, staffing,directing & controlling.

Management applies to any kind of organization. It applies to managers at all organizational levels.

The aim of all managers is the same: to create asurplus.

Managing is concerned with productivity, thisimplies effectiveness & efficiency.


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Define Organizations :

Organizations which can be defined as group of

people working together to create a surplus.

In business organizations, this surplus is profit.

In nonprofit organizations, such as charitableorganizations, it may be the satisfaction of needs.


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Features of Management :

Management is a process

Management is a social process

Management is a system of authority

Management is goal-oriented process

Management is a dynamic process

Management involves effective and efficientutilisation of resources

It is a multi-disciplinary field.


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Contd>>>>>>>

It is a critical and vital sub-system of an

organisation.

It is a full-fledged academic discipline

Management is a combination of science

and art

It is all-pervasive

It is an influence process


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Management & Administration :

Administration is above management

Administration is part of management Management & administration are same


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ifference between administration & management :

Basis of difference Administration Management

1 Level in organization Top level Middle & lower

2 Major focus Policy

formulation &

objective

determination

Policy execution

for objective

achievement

3 Nature of functions Determinative Executive

4 Scope of functions Broad &

conceptual

Narrow &

operational

5 Factors affectingdecisions

Mostly external Mostly internal

6 Employer-employee

relation

Entrepreneurs &

owners

Employees

7 Qualities required Administrative Technical


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Administration is above management :

administration is that phase of businessenterprise that concerns itself with the overall

determination of institutional objectives & thepolicies necessary to be followed in achieving thoseobjectives.

Management on the other hand, is an executive

function which is primarily concerned withcarrying out broad policies laid down by theadministration.


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Administration is a part of management :

Management is a generic name for the total process ofexecutive control in industry or commerce.

It is a social process entailing responsibility for the

executive & economic planning & regulation of theoperation of an enterprise, in the fulfillment of a givenpurpose or task.

Administration is that part of management which isconcerned with the installation & carrying out theprocedures by which it is laid down & communicated, &the process of activities regulated & checked against plans.


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Management & Administration are same

Management & administration are synonymous; the

difference between the two terms lies mostly in their usage

in different countries or different fields of human

organizations.

The distinction between the two terms may be drawn by

analyzing the origin of the word administration.

The government often uses the word administrator,

instead of manager, to handle & manage its affairs


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What does a manager

do? Plans Organises

Motivates Communicates

Directs and co-ordinates

Controls


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The functions of management :

Management can be break down into 5

managerial functions : planning, organizing,

staffing, directing & controlling

Management as an essential for any

organization


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The Functions of

Management

7-2

Managers

Planning

activities toachieve the

organization's

objectives

Organizing

resources andactivities to

achieve the

organizationsobjectives

Staffing

theorganization

with qualified

people

Directing

employeesactivities

toward

achievement

of objectives

Controlling

the

organizations

activities

to keep it

on course


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Planning Defined

A systematic process of reaching a desired

state by establishing goals and formulating

strategies to achieve them


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Planning

Planning involves selecting missions and

objectives and the actions to achieve them.

Planning precedes any other managerialfunction

Plans need to be made utilizing the least of

the resources. Planning is required in each and every job


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Determining planning

premises

Establish objectivesDevelop Strategies

Establish policies

Develop program for

accomplishments

Establish schedulesand budgets

Establish proceduresIdentify potential

problems

Develop preventive&/or contingent

action

Coordinate

throughout the

planning

How does a manager Plan?


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Types of Plans

7-3 Operational

Plans

Tactical

Plans

Strategic

Plans

Specify actions to

achieve tactical plans

(very short-term)

Designed to implement

strategic objectives

(usually one year or less)

Establish long-range

objectives


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Advantages of

Planning Better coordination

More efficient control of operation

Easier delegation

More economical use

Better decision making


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Planning Decisions

Anticipates the future, sets goals and objectives and

identifies the actions necessary for the organization to

attain these goals and objectives

Determining where you want to go and how andwhen youre going to get there

It involves specifying a target, a path or route to be

followed and a time schedule for achieving that target


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What is organising and its

importance ?


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Organising Defined

The process of structuring and coordinating an

organizations resources to carry out the

strategies formulated in the planning phase

effectively and efficiently

Stated simply, determining what needs to be

done and who is to do it


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Organising Process

Step:1

Division

Step: 4

Flow of

information

Step: 2

Coordination

Step: 3

Control of tasks


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Within Organising we

have Division of work

Line and staff

Levels of authority Organisation charts

Decentralisation

Job description


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Staffing

Staffing is defined as filling and keeping filled positions inthe organisation structure through :

1.Identifying work force requirements

2.Recruiting, selecting, placing3.Induction and Orientation

4.Training/developing

5.Promoting,appraising,planning the

careers, compensating6.To accomplish their tasks efficientlyand effectively.


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Directing Defined

The process of directing and motivating all

involved parties to help achieve the

organizations goals effectively and efficiently


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Guidelines on Directing

Do not make it a struggle for power

Avoid an offhand manner Watch out for your words

Do not assume that the worker understands

Be sure to get feedback right away


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Guidelines on Directing

Do not give too many orders

Provide just enough detail

Watch out for conflicting instructions

Do not choose only the willing worker

Try not to pick on anyone

ABOVE all do not play the BIG

SHOT


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Controlling Defined

The process of monitoring activities to ensure

they are being accomplished as planned and of

correcting any significant deviations


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Controlling

Controlling is the measurement and

correction of performance in order to make

sure that enterprise objectives and the plansdevised to attain them are accomplished.

Planning and Controlling are closely related.


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Controlling Process

Establish Performance

standards

Monitor actualperformance

Measure performance

Correct deviations from

standards


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Controlling Techniques

Budget

Statistical Data

Reports and Analysis

Time Budgeting

Program ProceduralPlanning & Control.


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Controlling Decisions

Evaluates the performance of an organization

and its units to see whether the organization is

progressing in the desired direction, and taking

corrective action when and where necessary

Making sure what you want to happen does

indeed happen!


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Controlling Decisions (..contd.)

THE QUALITY AND QUANITY OF

CONTROLLING DECISIONS DEPENDS A

GREAT DEAL ON THE QUALITY OF

PREVIOUSLY MADE PLANNING,ORGANIZING AND DIRECTING

DECISIONS

The better the planning, organizing anddirecting, the better will be controlling!

Th W ll B l d


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The Well Balanced

Organisation


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In conclusionall else fails

then..


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Managerial functions as at different

organizational levels .

Top

level

Managers

Middle-level

Managers

First-level

Supervisors

staffing directing


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Functions of Top Management :

To analyze, evaluate & deal with the external

environmental forces

To establish overall long-term goals strategy & policies of

the company including the master budget to allocate

resources.

To create an organizational framework consisting of

authority responsibility relationships.

To appoint departmental & other key executives.

To provide overall leadership to the company.


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Contd >>>>>>>

To represent the company to the outside world, e.g. ; trade

associations, government, trade unions, etc.

To exercise overall review & control on the companys

operations &

To coordinate the activities & efforts of different

departments.


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Functions of Middle Management :

To interpret & explain the policies framed by top

management .

To compile & issue detailed instructions regarding

operations.

To maintain close contacts with operating results so as to

evaluate performance.

To participate in operating decisions

To cooperate among themselves so as to integrate or

coordinate various parts of a division or a department


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Functions of Supervisory Management :

To plan day-to-day production within the goals laid down

by higher authorities.

To assign jobs to workers to make arrangements for their

training & development.

To supervise & control workers & maintain personal

contact with charge hands.

To arrange materials & tools & to maintain machinery.

To advise & assist workers by explaining work procedures,

solving their problems, etc


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Importance of Management :

Effective Utilization of Resources

Development of Resources

To Incorporate Innovations

Integrating Various Interest Groups

Stability in the Society


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Nature of Management :

MANAGEMENT IS COMBINATION OF ART AND

SCIENCE.

MANAGEMENT AS A PROFESSION. UNIVERSALITY OF PRINCIPLES OF MANAGEMENT.


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Management science or Art :

Management science or art differ in the following ways :

Commonsense is vague as compared to scientific

knowledge

Flagrant inconsistency often appears in commonsensewhereas logical consistency is the basic of science

Science systematically seeks to explain the events with

which it deals, commonsense ignores the need for

explanation.

The scientific method deliberately exposes claims to the

critical evaluation of experimental analysis, commonsense

method fails to test conclusions in any scientific fashion.


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Management as an Art

It has practical applications in a given situation

The experience of a manager is not transferable

It involves the use of creativity and innovativeness

It implies the use of creativity and innovativeness.

It implies the use of personal judgment, perception

and intuition.


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Management as a Science

Systematic and organised body of knowledge

Developed through observations, research and

experiment.

Based on relationship of cause and effect.

Knowledge of it is transferable.

Has universal application.


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Management as profession :

Profession is an occupation for which specializedknowledge, skills & training are required & the use of

these skills is not meant for self-satisfaction but these areused for larger interests of the society & the success of the

use of these skills is measured not in terms of money

alone.


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Characteristics of profession :

Existence of knowledge

Acquisition of knowledge

Professional association

Ethical codes

Service motive


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Skills of Management : Conceptual Skills

Analytical Skills

Human skills or Behavioural skills

Administrative Skills

Technical skills


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Managerial skills

Conceptual skills

To form an image

To develop vision

To integrate and coordinate sub-systems

To formulate basic plans

To scan and reconcile withexternal environment

Analytical skills

To use a scientific attitude

To break a problem intocomponents

To study and solve problems To evaluate performance

To make decisions

Human skills

To deal with subordinates

To communicate

To lead, motivate and guide the

To look into their needs To develop inter-personal

relations

To build team spirit among them

Administrative Skills

To implement decisions and plans

To mobilise and use resources for them

To use a practical approach

To study and work upon ground realities.

Technical skills

To have knowledge of jobs and jobcontent

To have knowledge of using technologyfor them

To train subordinates

Ti supervise work performed by them

Significance of Management


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Significance of Management Management facilitates an efficient accomplishment of

predetermined goals.

Management integrates physical as well as human resourcesfor realising objectives.

Management remains a critical variable in an organisation

It helps to reduce the cost of various operations undertakenand performed in a an organisation.

It helps in building a proper congenial internal environment

by formulating and implementing a set of suitable

managerial policies and strategies.

It also integrates personal goals and the interest of

employees with that of the organisation.


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MANAGEMENT

HISTORICAL PERSPECTIVE


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Evolution of Management Thought :

Many different contributors of writers &

practitioners have resulted in different

approaches to management, & these make

up a management theory jungle


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CLASSICAL MANAGEMENT APPROACH

BEHAVIOURAL APPROACH

MODERN APPROACH

THREE MAIN CATEGORIES

CLASSICAL MANAGEMENT


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Also known as the universal approach or traditional

approach, is one of the oldest and most popular

approaches.

It is based on the assumption that the objective of anorganisation may vary from one another but the

management of all organisations requires the same

management process.

Has roots in the basic concept of division of labourand specialisation.

CLASSICAL MANAGEMENT

APPROACH

Cl i l t h i t


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Scientific management developed by F.W.

Taylor

Administrative theory of management

developed by Henri Fayol.

Bureaucratic organisation by Max Weber

Classical management approach consists

mainly of :

Scientific management


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The concept of scientific management was introducedby Frederick Taylor in USA in the beginning of 20th

century.

F.W.Taylor is known as the father of scientific

management. He committed himself to thedevelopment of the best way of doing things.

Scientific management was concerned essentially

with improving the operational efficiency at the shop

floor level

Scientific management

T l P i i l f i tifi


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Science, not a rule of thumb

Harmony, not discord

Cooperation and not individualism

Maximum output in place of restricted output.

Maximum development of each employee.

Taylors Principles of scientific

management


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According to this principle, for solving

problems and taking decision, the manger

should adopt a scientific attitude and usescientific thinking and methods. The approach

of rule of thumb or a hit-or miss approach

should be studied in all respects, the required

data should be collected and analysed for

solving it.

Science, not Rule of Thumb


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This indicated that all departments and

workers are apart and parcel of an organisation

working together to achieve common goals.

Therefore, their should be complete harmonyor coordination in their functioning and any

kind of disagreement, clash or conflict should

not be allowed to crop in or it should bereduced to minimum

Harmony, not Discord


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According to this principle, instead ofencouraging individualism, the importance ofcooperative group efforts should be

recognised. If the objectives of theorganisation are accomplished successfully itscredit should not be given to some individualsonly. Rather, the contributions and cooperation

of all the members should be equallyacknowledged.

Cooperation and not individualism

Maximum output and not Restricted


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This states that production of goods should be

done at the maximum capacity available in a

production unit. This is because as production

increase, the overall cost of production isbound to decrease. So a policy of restricted

output should be considered as an outdated

one.

Maximum output and not Restricted

output

Th d l f h hi


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According to this principle, the efficiency level

of the workers should be increased for the

prosperity of individual workers ant the

organisation. This should be done by providingscientific training to them and developing their

potential abilities to the maximum. It will

benefit both employees and the organisation.

The development of each man to his greatest

efficiency and prosperity


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Scientific study and planning of the work

Scientific selection, placement and training

Standardisation of raw material, machines and

working conditions Division of responsibility between mangers and

workers

Functional foremanship Mental revolution

Wage incentives

Techniques of Scientific Management


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Taylor suggest that the work to be assigned to and

performed by workers should be studied. Analysed

and planned so as to determine a days fair work for

each worker. He emphasised that several studies suchas time study, speed study, fatigue study, work study

and motion study should be conducted on various

aspects of the work. This would give a precise idea to

the worker as to what is to be done and how to do itefficiently.

Scientific study and planning of the work

Scientific selection placement and


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Taylor realised that to build up a team ofefficient workers, their selection should bemade by suing scientific methods instead of

intuition and the judgment of foremen. Itimplies the selection of workers for the job bytallying job requirements with their abilitiesand skills. Then they should be given

placement in an organisation on the basis ofrespective capability as well as aptitude.

Scientific selection, placement and

training


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The scheme of standardisation should be

adopted in respect of trade tools and

equipment, raw material sued by the workers

and physical working conditions provided tothem. It is because any difference in the

quality of raw material and tools and

equipment may directly affect the level ofefficiency of the workers.

Standardisation

Division of responsibility between


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The two aspects of planning-thinking anddoing-should be separated. Planning of workthat involves thing process should be the

responsibility of mangers. They shoulddevelop work standards by conducting variousstudies, devise incentive schemes for workers,discipline them and assign work to them while

the role of workers should be confined to theimplementation of these plans.

Division of responsibility between

management and workers


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According to his concept, instead of having oneforeman as an in-charge for the entire productiondepartment, he suggested that at the lowest level ofthe department, all activities should be divided intotwo groups namely planning forum and workshop.

Each forum should have four supervisors tocommand the activities of workers. In doing so , dualcommand emerges, because each worker will getorders and instructions from eight supervisors dealing

with different aspect of his job.

Functional foremanship

Mental Revolution


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Mental Revolution is a process of bringing about

drastic changes in the attitude, outlook and

behavioural pattern of workers in respect of their

duties towards work, toward their fellow worker and

employers. A similar kind of change in the outlook of

managers towards their problems should be made. He

suggested a scheme of worker participation in

management and sharing the surplus profit as bonusamong workers.

Mental Revolution


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According to Taylor, What the workmenwant from their employees beyond anythingelse in high wages. He suggested that

incentive should be directly linked withproductivity. The worker producing moreshould be given higher wages. For thispurpose, he devised a differential piece rate

plan which implies different rates of wagesfor different levels of efficiency of workers.

Wage incentives

Criticism


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Worker being a economic man has only economic

needs and therefore is interested only in more money.

Have dehumanized worker by considering them only as

a factor of production which is lifeless and unconscious.

It advocates close supervision and control so as to get

maximum contribution and a higher level of

productivity on the part of for workers. This practice

has limited use and to get the whole-hearted

cooperation m worker, self-regulating control andsupportive supervision have proved more effective.

Criticism


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ADMINISTRATIVE THEORY OF

MANAGEMENT

Administrative theory of management is based on

the contribution of scholars and practitioners likeHenri Fayol, Max Weber, Sheldon, Mooney, Allen,Urwick etc., the most part of it relates to Fayolswork.

Fayols Administrative management :


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Fayol s Administrative management :

Henry Fayol was a french mining engineer who turned aleading industrialist & a successful manager

Perhaps the real father of modern operationalmanagement theory is the French industrialist Henry

Fayol.

Fayols Principles of Management


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The 14 principles of general management which are asunder:

1. Division of work

To divide work among various department andemployees according to the required abilities and

skills so as to get the benefit of specialisation.

2.Authority and ResponsibilityAuthority should be commensurate with

responsibility. More authority may result in mis-

utilisation or under-utilisation


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3.Discipline

The implies compliance with organisational

directives and rules, orders and instructions ofsuperiors and co-operation with fellow workers.

4.Unity of Command

According to this principle, one subordinate shouldget all the orders and instructions regarding hiswork from only one superior. It helps inmaintaining discipline among employees,controlling their activities, fixing responsibilityand does not allow them to sidetrackresponsibility.

5 Unity of Direction


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5. Unity of Direction

All activities related towards common goals

should be included in a single plan to beimplemented by a particular manger.

6.Subordination of Individuals Interest to the

OrganisationAccording to his, in every work setting, each

employee should sacrifice and subordinate his

personal interests and goals to accomplish thecommon goals of the organisation.


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7.Remuneration

Employees should be paid fairly and reasonably inaccordance with their contribution.

8.Centralisation

The relationship between centralisation anddecentralisation of authority is a matter of basicphilosophy of the organisation.But an optimumbalance between these two should be maintained

according to the needs of an Organisation.

9.Scaler Chain


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As a result of delegation of authority in anorganisation, the line of authority and

communication from the top to the lowest level isestablished. This is known as the scaler chainbecause all employees are attached to it in therelationship of superior and subordinate.

10.Order

In order to facilitate the smooth flow of work,efficient use of resources such as material,

machine tools, equipment, as well as employees(human factor) should be placed and used in aprescribed manner


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11 Equity

The principle of equity suggest that similar treatment based

on the principles of equity, fairness and impartiality should

be assured to all employees working in an Organisation

particularly in respect of promotion, transfer, pay hike etc.

12. Stability of Tenure of PersonnelSince people need time to learn their job, therefore they

should not be allowed to move frequently from one position

to another. Efforts should be made to retain them in the

Organisation for longer periods of time.

13 Initiative


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According to this principle, employees should be providedan opportunity to develop and use their initiative to solve

work-related problems. Due care should be taken speciallyfor developing policies so as to regulate decision-makingbehaviour of mangers on the one hand and on the other toprovide them enough liberty to use their personal skills and

judgement.14. Esprit-de-corps

This implies the building of team spirit among theemployees so that they work in a harmonious manner with

proper mutual understanding to make their respectivecontributions more valuable to achieve goals.

M i l Q liti d Skill


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Managerial Qualities and Skills

Physical qualities (health, personality)

Mental ability (ability to learn, to take decisions,

creativity, etc. ) Moral education ( loyalty, dignity, ethical values,

etc)

General education Special knowledge

Experience ( knowledge arising out of practice)

B ti d l f i ti


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Bureaucratic model of organisation

It was developed by Max Weber, according to

him it is more efficient form of Organisation

because it aims at a high degree of precision,efficiency, objectivity and rationality.

Characteristics of Bureaucratic model


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Characteristics of Bureaucratic model

are:

1. Division of Labour

To get the benefits of specialization, the principle of

division of labour is followed in bureaucratic

organisations. It implies the division andassignment of activities to various employees on the

basis of their abilities, skills and aptitude. Repeated

performance of the same job would lead to a higher

degree of specialisation.

2 Hierarchy of Authority


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2.Hierarchy of Authority

All employees of bureaucratic organisations are attached

to each other in the relationship of authority which lieson the position and not on the person.

3. Rigidity in Compliance with Procedure and Framework of Rules

To regulate and control the working behaviour ofemployees they have to observe prescribed proceduresand rules strictly. No deviation, even on a minor scale, isallowed. But this kind of rigidity given rise to re-tape

and inordinate delay in decision making.

4. Impersonality


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4. Impersonality

In a bureaucratic Organisation there is no place for

emotions, sentiments and personal attachment. Theemployees have a very formal and functional

relationship among themselves

5. Technical Competence

In this type of organisation people are hired andpromoted on the basis of their technical competence,

that is, what they know about the job. It is on the basis

of job requirement that they are selected and placed in

the Organisation.

E l ti f Ad i i t ti Th


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Evaluation of Administrative Theory

The main emphasis is placed on those

principle and concepts of management that are

related to the structure of the organisation.

It also ignores the human aspect involved inthe management of the organisation.


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Evaluation of Classical Approach

with respect to work organisation


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1. Rational Economic Man Model

Taylor firmly believed that main is a rational animal

and is interested in maximising his economicgains.

2. Economic Needs

The above model assumes that money or economicincentives are the strongest to motivate theindividual. It is because the individual has onlyone set of needs, that is, economic needs.


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3. Organisation as Rational Legal System

Max Weber considered the organisation as arational legal system based on the norms of

impersonality and rationality. In this system

rules of law and prescribed procedures arefollowed by employees in performing jobs.

Bureaucratic organisations placed too much

emphasis on the chain of command from

higher to lower level.

4.Higher Order needs neglected.


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The classical approach of management to work

organisation has ignored the higher order needs andtheir satisfaction. Rather advocates of this approach

concentrated more on economic factors even to

motivate the employees at work.

Psychological needs that are equally important in

influencing the working behaviour of employees are

not satisfied.


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5.Organisation as a Closed System

Advocates of the classical theory strongly believethat an organisation is a closed system and does

not interact with external environment on regular

basis. The latest researches on organisations have

proved that factors of external environment also

affect employee response and behaviour along with

work environment.


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BEHAVIOURAL APPROACHTO MANAGEMENT


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It is based on managers ability to understand

work as well as people who have different

backgrounds, needs, values, perceptions and

personality.


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BEHAVIOURAL APPROACH TO

MANAGEMENT

1. HUMAN RELATIONS MOVEMENT

2. BEHAVIOURAL SCIENCE APPROACH

HUMAN RELATIONS MOVEMENT


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HUMAN RELATIONS MOVEMENT

The main features are:-

1. Human organization was considered as a

psycho-social system.

2. This movement took management theorists

away from the simple model of economic

man to a more humanistic view, the socialman model


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3. Optimistic assumptions were made such as they

want to work, assume responsibility, are willing tocooperate and contribute to achieve a common

goal provided they are given an opportunity.

4. Strongly believed that there should be no conflicts

or clashes in the organization.

5. To secure maximum contribution, managers

should get along with employees and workers.

6. In order to motivate individual employees, histi ti d i h ld b t i d i t


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motivating desire should be ascertained in termsof his emotions, beliefs, attitudes, habits and

needs.7. A sense of belonging should be created among

employees by giving them more importance and

involving them in decision making and otheraffairs of the organisation.

8. A human relations approach basically aims atproviding a high degree of satisfaction and

motivation through improved workingconditions, an effective style of supervision andby creating a sense of security among them.


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THE HAWTHORNE STUDIES

The Hawthorne Studies and its findingprovided a concrete base to the human relation

approach. It has a definitely significant impact

on management thought. The study was beganto envisage the relationship between light and

productivity as a part of scientific

management study.

The Hawthorne studies mainly


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consist of the following experiments:

1. Illumination Experiment

2. Relay Assembly Test Room Experiment.3. Massive Interviewing Programme

4. Bank Wiring Observation Room

Experiment.

Fi di f th H th St di


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Findings of the Hawthorne Studies

1. Multiple Needs

2. Interpersonal Relations and Work

Situation3. Informal Relations

4.

Historical Perspective

Evaluation of Contributions to


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Human Relations Movement

1. Productivity is Ignored

2. Incomplete Package

3. Missing Link Between Humanisationand Productivity

4. Keeping Employees Happy is not

Enough

BEHAVIOURAL SCIENCE


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APPROACH

This approach is based on the followingassumptions:

1. Socio-technical System

2. Integration of Individual and Organisational

Goals

3. Conflict and Cooperation

4. Individual Difference

5. People are the Key to Productivity


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JOB CHARACTERISTICS AND

MOTIVATION

Focusing on the importance of job content and

characteristics on the level of motivation,Tuner and Lawrence developed in 1965 a set

of characteristics which the job should posses.

The characteristics were:


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1.Variety in work

2. Level of employees autonomy in performingthe work

3. Amount of interaction required in carrying out

task activities.4. Number of opportunities for operational

interaction

5. Level of knowledge and skill required6. Amount of responsibility entrusted to the job

holder.

COMPARISON OF


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COMPARISON OF

HUMAN RELATIONSMOVEMENT AND

BEHAVIOURAL SCIENCEAPPROACH

Human Relation approach

Behavioural scienceapproach


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Humanisation and

socialisation of the

organisation by

recognising the humanside of it.

Organisation is a socio-

psychological system.

Aims at studying and

analysing human

behaviour

systematically. Organisation is social-

technical system.

Human Relation approach Behavioural science

approach


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Is mainly concerned with thehuman aspect involved in the

organisation and considers all

individuals as human beings.

Satisfaction provided toemployees by giving economic

incentives and improving their

working conditions.

Recognizes individualdifferences in terms of

background, personality, values,

goals and aspirations which helps

in developing different

motivational processes for them

Rejects this assumption and

believe that there are wide-

ranging variables which affect

the working behaviour ofemployees.

pp

Human Relation approach

Behavioural science approach


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Conflicts and clashes should

be totally removed as they

appear..

Seems to be more limited in

scope and areas because it

only deals with set of

economic, social andpsychological needs and

physical working conditions

for raising the efficiency of

employees.

Realises that conflicts are

bound to crop up and tosome extent they produce a

constructive effect,

especially on mangers

More concerned about thetechnological aspect of job

design, group dynamics,

leadership, communication

and motivation which

provide a broad base to thisapproach.

MODERN APPROACH


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MODERN APPROACH

OF MANGEMENTThe modern approach of management representsthe latest development that took place after 1950.

The approach can be studied and analysed in thefollowing four phases:

Quantitative approach

System approachContingency approach

Excellence approach

QUANTITATIVE APPROACH


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Known as the management science approach,developed in 1950.

It offers a systematic and scientific analysis andsolution to the problems faced by managers.

Approach aims the high degree of precision, perfectionand objectivity by encouraging the use of mathematicaland statistical tools to solve complex problems.

The quantitative decision-making tools (are known asoperation research) like linear programming,simulation, queuing theory, game theory, etc are usedand also use computer- aided technology in variousfields.

The scientific methods consist of the

f ll i t


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following stages:

a. Dividing a problem into small simple

components.

b. Gathering required information on eachcomponent.

c. Analysis of data so collected

d. Finding out the solutions to the problem inhand.

SYSTEM APPROACH


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SYSTEM APPROACH

It emphasis on interdependence and inter-relationship which exists among various

activities and components of an organisation.

The system approach defines an organisationas a complex whole consisting of mutually

interdependent and interacting parts which are

viewed as sub-systems.

System with sub-systems inside


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System with sub systems inside

Industry

Business

International Environment

Firm

Production Distribution

Types of System


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Types of System

Physical

Mechanical

Biological Social

ORGANISATION AS AN INPUT-

PROCESS OUTPUT SYSTEM


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PROCESS-OUTPUT SYSTEM

Society

Inputs:

Land, capital, machines,management, technology

Conversion process

Management process Output:Goods & services

An organisation is an open adaptivesystem and has the following


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system and has the following

features1.Interaction

An organisation is an open system and interacts withits external environment on a regular basis. Itsfunctioning is greatly influenced by the changes

taking place in the environment.2.Input-process-output model

The organisation is considered as an input-process-output system. It procures resources from society,

which are known as inputs and these are processedand converted into output. The output is in the form ofgoods and services that are given back to society.

3. Integration of Sub-Systems

Th i ti t th h b


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The organisation operates through many sub-systems like technical, social and power systems

or production, distribution, finance, purchase,personnel, etc. These subsystems are integratedand coordinated so as to facilitate the smoothfunction of the organisation.

4.Multiplicity of ObjectivesThe organisation is a collective system. It involves

the interest of many groups such as owner,customer, employers, financiers, government and

society. To serve the interests of these groups, theorganisation is bound to pursue two or moreobjectives at a time.

5 Sub-systems


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5. Sub-systems

The organisation is a sub-system of a larger

system and has many sub-system in it. Theyinteract with each other and supplement the

functioning of each other so as to contribute to

the overall functioning of the organisation.

Evaluation of System Approach

Encourages meaningful analysis of an organisation


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Encourages meaningful analysis of an organisation

and its various sub-systems or components and

facilitates their management.

It provides sound basis for understanding

organisation as and their problems.

The system approach facilitates the application ofboth the process of analysis and synthesis and

differentiation and integration by relating the sub-

systems of an organization from the lowest to the

highest level of the organisation It integrates various management approaches in a

meaningful way

Criticism


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Criticism

The system approach as being purelytheoretical, conceptual, vague and abstract.

It has only an intellectual appeal and cannot be

applied to practical situations. The system approach neither offers any tool or

technique for analysis and synthesis nor does it

recognise the differences that exist between the

various systems.

CONTINGENCY APPROACH

The contingency approach is related to system


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g y pp yapproach, and represents a comparatively new

line of thinking among management scientists. It is a systematic attempt to determine the

package of management techniques, approachesand practices that are appropriate to a specific

given situation. In this approach, instead of applying the

principles in practices of management in anuniform manner to every situation, should study,analyse and diagnose the situation, understandsituational requirements and then prepare apackage of management principles and techniquesto deal with it effectively.

The contingency approach offers the

f ll i id li f


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following guidelines for mangers:

The contingency approach is situation-oriented urgingmangers to study, analyze and diagnose the situation. It is tobe done in terms of component variables of situation andexternal factors affecting the situation.

After the analysis of the situation, managers are expected to

prepare inventories of management theory, principles,techniques and concepts.

In order to tackle the situation efficiently, the validity andapplicability of management tools and techniques is to beexamined. And finally, the package of the tools and

techniques is prepared which is appropriate for that specificsituation. This is because each situation differs and requiresa different managerial response.


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EXCELLENCE APPROACH

ATTRIBUTES OF EXCELLENCE:A MODERN UNCONVENTIONAL


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APPROACH Developed by Thomas J Peter and Robert H

Waterman, management consultant of the

U.S.A in1982.

PETER AND WAATERMANS EIGHT

ATTRIBUTES OF EXCELLENCE


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ATTRIBUTES OF EXCELLENCEAttribute excellence

1. A bias for action

2. Close to the customer

3.Autonomy and

entrepreneurship

4.Productivity through people

Key Indicator

Small scale, easily managed experimentto build knowledge interest and

commitment.

Customer satisfaction is practically an

obsession. Input form customers is

sough throughout the design, production

and marketing cycles.

Risk taking is encouraged; failure is

tolerated. Innovators are encouraged to

champion their pet projects to see themthrough competition.

Individuals are treated with respect

and dignity, enthusiasm, trust and family

feeling are fostered.

PETER AND WATERMANS EIGHTATTRIBUTES OF EXCELLENCE


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Attribute excellence

5.Hands-on value drive

6.Stick to the knitting

7.Simple lean staff

8.Simultaneous loose- tightproperties

Key Indicator

A clear companys philosophy isdisseminated and followed. Personalvalues are discussed openly, notburied.

Management sticks to the business it

knows best, emphasis is on internalgrowth, not merger

Authority is decentralized as much aspossible. Headquarters staff is keptsmall; talent is pushed out of field.

Tight overall strategic and financialcontrol is counterbalanced bydecentralized authority; autonomy

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