oncept foundation of managment

 May 30, 2018  deffination of managment,

Meaning of Management

According to Theo Heimann, management has three different meanings, viz.,

1. Management as a Noun : refers to a Group of Managers.
2. Management as a Process : refers to the Functions of Management i.e. Planning, Organising, Directing, Controlling, etc.
3. Management as a Discipline : refers to the Subject of Management.
Management is an individual or a group of individuals that accept responsibilities to run an organisation. They Plan, Organise, Direct and
Control all the essential activities of the organisation. Management does not do the work themselves. They motivate others to do the work
and co-ordinate (i.e. bring together) all the work for achieving the objectives of the organisation.

Management brings together all Six Ms i.e. Men and Women, Money, Machines, Materials, Methods and Markets. They use these resources
for achieving the objectives of the organisation such as high  sales, maximum profits, businessexpansion, etc

CHARACTORSTICS OF MANAGMENT

1. Continuous and never ending process.

2. Getting things done through people.
3. Result oriented science and art.
4. Multidisciplinary in nature.
5. A group and not an individual activity.
6. Follows established principles or rules.
7. Aided but not replaced by computers.
8. Situational in nature.
9. Need not be an ownership.
10. Both an art and science.
11. Management is all pervasive.
12. Management is intangible.
13. Uses a professional approach in work.

14.Functions of Managers
Managers just don't go out and haphazardly perform their responsibilities. Good managers discover
how to master five basic functions: planning, organizing, staffing, leading, and controlling.
 o Planning: This step involves mapping out exactly how to achieve a particular goal. Say, for example, that the
organization's goal is to improve company sales. The manager first needs to decide which steps are necessary to
accomplish that goal. These steps may include increasing advertising, inventory, and sales staff. These necessary
steps are developed into a plan. When the plan is in place, the manager can follow it to accomplish the goal of
improving company sales.
o Organizing: After a plan is in place, a manager needs to organize her team and materials according to her
plan. Assigning work and granting authority are two important elements of organizing.
o Staffing: After a manager discerns his area's needs, he may decide to beef up his staffing by recruiting,
selecting, training, and developing employees. A manager in a large organization often works with the company's
human resources department to accomplish this goal.
o Leading: A manager needs to do more than just plan, organize, and staff her team to achieve a goal. She
must also lead. Leading involves motivating, communicating, guiding, and encouraging. It requires the manager to
coach, assist, and problem solve with employees.
o Controlling: After the other elements are in place, a manager's job is not finished. He needs to continuously
check results against goals and take any corrective actions necessary to make sure that his area's plans remain on
track.
All managers at all levels of every organization perform these functions, but the amount of time a manager spends on each one
depends on both the level of management and the specific organization.
Roles performed by managers-
A manager wears many hats. Not only is a manager a team leader, but he or she is also a planner, organizer,
cheerleader, coach, problem solver, and decision maker — all rolled into one. And these are just a few of a
manager's roles.
In addition, managers' schedules are usually jam‐packed. Whether they're busy with employee meetings,
unexpected problems, or strategy sessions, managers often find little spare time on their calendars. (And that
doesn't even include responding to e‐mail!)
In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a set of ten roles that a manager
fills. These roles fall into three categories:
o Interpersonal: This role involves human interaction.
o Informational: This role involves the sharing and analyzing of information.
o Decisional: This role involves decision making.
Table 1 contains a more in‐depth look at each category of roles that help managers carry out all five functions
described in the preceding “Functions of Managers” section.
Not everyone can be a manager. Certain skills, or abilities to translate knowledge into action that results in desired
performance, are required to help other employees become more productive. These skills fall under the following
categories:
o Technical: This skill requires the ability to use a special proficiency or expertise to perform particular tasks.
Accountants, engineers, market researchers, and computer scientists, as examples, possess technical skills. Managers
acquire these skills initially through formal education and then further develop them through training and job
experience. Technical skills are most important at lower levels of management.
o Human: This skill demonstrates the ability to work well in cooperation with others. Human skills emerge in
the workplace as a spirit of trust, enthusiasm, and genuine involvement in interpersonal relationships. A manager
with good human skills has a high degree of self‐awareness and a capacity to understand or empathize with the
feelings of others. Some managers are naturally born with great human skills, while others improve their skills
through classes or experience. No matter how human skills are acquired, they're critical for all managers because of
the highly interpersonal nature of managerial work.
o Conceptual: This skill calls for the ability to think analytically. Analytical skills enable managers to break
down problems into smaller parts, to see the relations among the parts, and to recognize the implications of any one
problem for others. As managers assume ever‐higher responsibilities in organizations, they must deal with more
ambiguous problems that have long‐term consequences. Again, managers may acquire these skills initially through
formal education and then further develop them by training and job experience. The higher the management level,
the more important conceptual skills become.
Although all three categories contain skills essential for managers, their relative importance tends to vary by level
of managerial responsibility.
Business and management educators are increasingly interested in helping people acquire technical, human, and
conceptual skills, and develop specific competencies, or specialized skills, that contribute to high performance in a
management job. Following are some of the skills and personal characteristics that the American Assembly of
Collegiate Schools of Business (AACSB) is urging business schools to help their students develop.
o Leadership — ability to influence others to perform tasks
o Self‐objectivity — ability to evaluate yourself realistically
o Analytic thinking — ability to interpret and explain patterns in information
o Behavioral flexibility — ability to modify personal behavior to react objectively rather than subjectively to
accomplish organizational goals
o Oral communication — ability to express ideas clearly in words
o Written communication — ability to express ideas clearly in writing
o Personal impact — ability to create a good impression and instill confidence
o Resistance to stress — ability to perform under stressful conditions
o Tolerance for uncertainty — ability to perform in ambiguous situations

Management Thoughts (Managerial

Function)
Management is studied in business academics since earlier times and it is considered as an integral part
to understand business operations. People have been changing and redesigning organizations for
centuries. Though the 20th century is noticeable in history as an 'Era of scientific management', still it
does not indicate that management tactics were not used in yester years. Many studies indicated that
Management theory evolved with "scientific" and "bureaucratic" management that used measurement,
procedures and routines as the basis for operations. Firms developed hierarchies to apply standardized
rules to the place of work and penalized labour for violating rules. With the "human relations" movement,
companies emphasized individual workers. Modern management theories, including system theory,
contingency theory and chaos theory, focus on the whole organization, with employees as a key part of
the system.

o he evaluation of management can be categorized in to different parts:

 Pre-Scientific Management Era (before 1880),

 Classical management Era (1880-1930),
 Neo-classical Management Era (1930-1950),
 Modern Management era (1950-on word).
Classical Management includes Scientific Management School, Administration Management School, and
Bureaucracy Management. Neo- classical Management includes Human relation school and Behavioural
Management School. Modern Management includes Social system school, Decision theory school,
Quantitative Management School, System Management School, and Contingency Management School.

evaluation of management

Early Management Thought

The period of 1700 to 1800 emphasizes the industrial revolution and the factory system highlights the
industrial revolution and the importance of direction as a managerial purpose. Thus, the development of
management theory can be recognized as the way people have struggled with relationships at particular
times in olden periods. Many economic theorists during this period described the notion of management.
Adam Smith and James Watt have been recognized as two theorists who launched the world toward
industrialization. Adam Smith brought about the revolution in financial thought and James Watt's steam
engine provided cheaper power that revolutionized English commerce and industry. Both provided the
base for modern concepts of business management theory and practice. Adam Smith explicated the
concept of division of labour and Jacques Turgot described the importance of direction and control. Smith
stated that market and competition should be the controllers of economic activity and that tax policies
were destructive. The specialization of labour was the basis of Smith's market system. According to
Smith, division of labour provided managers with the maximum opportunity for improved output. In the
period of 1771–1858, Robert Owens studied for concern for the workers. He was repulsed by the working
conditions and poor treatment of the workers in the factories across Scotland. Owen became a reformer.
He reduced the use of child labour and used ethical influence rather than physical punishment in his
 factories. He reproached his fellow factory owners for treating their equipment better than they treated
their workers.

In quantitative approach of early management thought, Charles Babbage (1792–1871) is recognized as

the supporter of operations research and management science. Babbage's scientific innovations are
mechanical calculator, a versatile computer, and a punch-card machine. His projects never became a
commercial reality. However, Babbage is considered the creator of the concepts behind the present day
computer. The most popular book of Babbage, On the Economy of Machinery and Manufacturers,
described the tools and machinery used in English factories. It discussed the economic principles of
manufacturing, and analysed the operations and the skills used and suggested improved practices.
Babbage considered in the benefits of division of labour and was a supporter of profit sharing. He
developed a method of observing manufacturing that is the same approach utilized today by operations
analysts and consultants analysing manufacturing operations. Other theorists who contributed in
quantitative approach of early management thought were Robert Owen, Andrew Ure and Charles Dupin,
Henry Robinson Towne.

The Classical Approach

The classical approach is the earliest thought of management .The classical approach was associated
with the ways to manage work and organizations more efficiently. The classical approach are categorized
into three groups namely, scientific management, administrative management, and bureaucratic
management.

I. Scientific Management: Scientific management which is also referred to Taylorism or the Taylor system is a
theory of management that evaluates and synthesizes workflows, with the aim of improving labour productivity. In
other words, conventional rules of thumb are substituted by accurate procedures developed after careful study of an
individual at work. Universal approaches of Scientific management are developed for Efficiency of workers,
Standardization of job roles/activities and Discipline - the role of managers and the business hierarchy. The scientific
management theory had an enormous impact on the business industry at the beginning of the 20th century. Many big
and victorious organizations, such as McDonalds hamburger chain or call centres, utilised a modern version of
scientific management. Among famous theorist, Taylor's contribution in the area of scientific management is
invaluable. The components of scientific management are determination of the task, planning, proper selection and
training of workers improvement in methods, modification of organization and mental revolution such as 'job
specialization'. As a result, it became more concerned with physical things than towards the people even though
increased the output. Scientific Management focuses on worker and machine relationships. Organizational
productivity can be increased by enhancing the competence of production processes. The competence viewpoint is
concerned with creating job that economizes on time, human energy, and other productive resources. Jobs are
planned so that each worker has a specified, well controlled task that can be performed as instructed. Principle of
scientific management are replacement of old rule of thumb method, scientific selecting and training, labour
management co-operation, maximizes output, equal division of responsibility. There are four scientific management
systems such as develop a science for each element of the job to replace old rule of thumb method, Scientifically
select employees and then train them to do the job as described in step, supervise employees to make sure they
follow the prescribed method for performing their job and continue to plan the work but use worker to actually get the
work done.

Taylor's Scientific Management: Academic records indicated that F.W. Taylor and his colleagues developed the
first systematic study in management. He initiated an innovative movement in 1910 which is identified as scientific
 management. Frederick Taylor is known as the father of Scientific Management and he published
Principals of Scientific Management in which he proposed work methods designed to boost worker
productivity. Taylor asserted that to succeed in these principles, it is necessary to transform completely
the part of management and labour. His philosophy was based on some basic principles. The first
principle is separation of planning and doing. In the pre-Taylor era, an employee himself used to choose
or plan how he had to do his work and what machines and equipment would be necessary to perform the
work. But Taylor divided the two functions of planning and doing, he stressed that planning should be
delegated to specialists. Second principle of Taylor's management approach is functional foremanship.
Taylor launched functional foremanship for administration and direction. Under eight-boss-scheme of
functional foremanship, four persons like route clerk, instruction card clerk, time and cost clerk and
disciplinarian are associated with planning function, and the remaining four speed boss, inspector,
maintenance foreman, and gang boss are concerned with operating function. Third principle is elements
of scientific management. The main constituents of scientific management are work study involving work
important and work measurement using method and time study, standardization of tools and equipment
for workmen and improving working conditions, scientific Selection, placement and training of workers by
a centralized personal department. Fourth principle is bilateral mental revolution. Scientific management
involves a complete mental change of employees towards their work, toward their fellow-men and toward
their employers. Mental revolution is also necessary on the part of management's side, the foreman, the
superintendent, the owners and board of directions. Fifth principle is financial incentives. In order to
encourage workers to give better performance, Taylor introduced differential piece-rate system. According
to Taylor, the wage should be based on individual performance and on the position which a worker
occupies. Economy is other principle of management devised by Taylor. According to him, maximum
output is achieved through division of labour and specialization. Scientific Management concentrates on
technical aspects as well as on profit and economy. For this purpose, techniques of cost estimates and
control should be adopted. Taylor concluded that science, not rule of thumb, Harmony, not discord,
Cooperation and not individualism, Maximum output, in place of restricted output.

(ii) Administrative Management: Administrative Management emphasizes the manager and the

functions of management. The main objective of Administrative management is to describe the
management process and philosophy of management. In contradiction of scientific management, which
deals mainly with jobs and work at individual level of scrutiny, administrative management gives a more
universal theory of management.

Henry Fayol's Administrative Management (1841–1925): Henri fayol is known as the father of modern
Management. He was popular industrialist and victorious manager. Fayol considered that good management practice
falls into certain patterns that can be recognized and analysed. From this basic perspective, he devised a blueprint for
a consistent policy of managers one that retains much of its force to this day. Fayol provided a broad analytical
framework of the process of management. He used the word Administration for Management. Foyal categorized
activities of business enterprise into six groups such as Technical, Financial, Accounting, Security, and Administrative
or Managerial. He stressed constantly that these managerial functions are the same at every level of an
organization and is common to all firms. He wrote General and Industrial Management. His five function of
managers were plan, organize, command, co-ordinate, and control. Principal of administrative management:
1.Division of labour, 2.Authority & responsibility, 3.Discipline, 4.Unity of command, 5.Unity of direction,
6.Subordination of individual interests to general interest, 7.Remuneration of personnel, 8.Centralization, 9.Scalar
chain, 10.Order, 11.Equity, 12.Stability of tenure, 13.Initiative and14 .Esprit de corps (union of strength). These 14
principles of management serve as general guidelines to the management process and management practice. His
principles of management are described below.
 Division of work: This is the principle of specialization which is detailed by economists as
an important to efficiency in the utilization of labour. Fayol goes beyond shop labour to apply the principle to all kinds
of work, managerial as well as technical.
 Authority and responsibility: In this principle, Fayol discovers authority and responsibility to
be linked with the letter, the consequence of the former and arising from the latter.
 Discipline: This discipline denotes "respect for agreements which are directed at achieving
obedience, application, energy and the outward marks of respect". Fayol declares that discipline requires
good superiors at all levels, clear and fair agreement, and judicious application of penalties.
 Unity of command: This is the principle that an employee should receive orders from one
superior only.
 Unity of direction: Fayol asserted that unity of direction is the principle that each group of
activities having the same objective must have one head and one plan. As distinguished from the principle
of unity of command, Fayol observes unity of direction as related to the functioning of personnel.
 Subordination of individual interest to general interest: In any group the interest of the
group should supersede that of the individual. When these are found to differ, it is the function of
management to reconcile them.
 Remuneration of personnel: Fayol recognizes that salary and methods of payment should
be fair and give the utmost satisfaction to worker and boss.
 Centralization: Fayol principle of centralization refers to the extent to which authority is
concentrated or dispersed in an enterprise. Individual circumstances will determine the degree of
centralization that will give the best overall yield.
 Scalar chair: Fayol believe of the scalar chair as a line of authority, a 'Chain of Superiors"
from the highest to the lowest ranks and held that, while it is an error of subordinate to depart 'needlessly'
from lines of authority, the chain should be short-circuited when scrupulous following of it would be
detrimental.
 Order: Breaking this principle into 'Material order' and 'Social Order', Fayol thinks of it as
the simple edge of "a place for everything (everyone), and everything (everyone) in its (his) place". This is
basically a principle of organization in the arrangement of things and persons.
 Equity: Fayol perceives this principle as one of eliciting loyalty and devotion from
personnel by a combination of kindliness and justice in managers dealing with subordinates.
 Stability of tenure of personnel: Finding that such instability is both the cause and effect of
bad management, Fayol indicated the dangers and costs of unnecessary turnover.
 Initiative: Initiative is envisaged as the thinking out and execution of a plan. Since it is one
of the "Keenest satisfactions for an intelligent man to experience", Fayol exhorts managers to "Sacrifice
Personal Vanity" in order to permit subordinates to exercise it.
 Esprit de corps: This is the principle that 'union is strength' an extension of the principle of
unity of command. Fayol here emphasizes the need for teamwork and the importance of communication
in obtaining it.

(iii) Bureaucratic Management:.

Bureaucratic management denotes to the perfect type of organization. Principal of Bureaucracy include
clearly defined and specialized functions, use of legal authority, hierarchical form, written rules and
procedures, technically trained bureaucrats, appointment to positions based on technical expertise,
promotions based on competence and clearly defined career paths. The German sociologist, Max Weber
recognized as father of modern Sociology who appraised bureaucracy as the most logical and structure
for big organization. With his observation in business world, Weber summarized that earlier business firms
were unproductively managed, with decisions based on personal relationships and faithfulness. He
proposed that a form of organization, called a bureaucracy, characterized by division of labour, hierarchy,
formalized rules, impersonality, and the selection and promotion of employees based on ability, would
lead to more well-organized management. Weber also argued that authoritative position of managers in
an organization should be based not on tradition or personality but on the position held by managers in
the organizational hierarchy.

Max Weber (1864-1920) devised a theory of bureaucratic management that emphasized the need for a
firmly defined hierarchy governed by clearly defined regulations and lines of authority. He considered the
perfect organization to be a bureaucracy whose activities and objectives were reasonably thought out and
whose divisions of labour were clearly defined. Weber also believed that technical capability should be
emphasized and that performance evaluations should be made completely on the basis of merit.
Presently, it is considered that bureaucracies are huge, impersonal organizations that put impersonal
competence ahead of human needs. Like the scientific management theorists, Weber sought to advance
the performance of socially important organizations by making their operations predictable and productive.
Although we now value innovation and flexibility as much as efficiency and predictability, Weber's model
of bureaucratic management evidently advanced the development of vast corporations such as Ford.
Bureaucracy was a particular pattern of relationships for which Weber saw great promise. Although
bureaucracy has been successful for many companies, in the competitive global market of the 1990s
organizations such as General Electric and Xerox have adopted bureaucracy, throwing away the
organization chart and replacing it with ever-changing constellations of teams, projects, and alliances with
the goal of unleashing employee creativeness.

Chester I. Barnard: Chester Barnard (1886-1961) also devised components to classical theory such as
Follett that would be further developed in later schools. Barnard, who became president of New Jersey
Bell in 1927, used his work experience and his wide reading in sociology and philosophy to devise
theories about organizations. Barnard stated that people join in formal organizations to accomplish such
goals that cannot be fulfilled by working alone. But as they follow the organization's goals, they must also
gratify their individual needs. Barnard came to conclusion that an enterprise can operate efficiently and
survive only when the organization's goals are kept in balance with the aims and needs of the individuals
working for it. Barnard denotes a principle by which people can work in stable and mutually constructive
relationships over time. Barnard believed that individual and organizations purposes must be in balance if
managers understood an employee's zone of indifference that is, what the employee would do without
questioning the manager's authority. Apparently, the more activities that fell within an employee's zone of
indifference the smoother and more cooperative an organization would be. Barnard also believed that
managers had a duty to inspire a sense of moral purpose in their employees. To do this, they would have
to learn to think beyond their narrow self-interest and make an ethical promise to society. Although
Barnard emphasized the work of administrative managers, he also focused substantial attention on the
role of the individual employee as the basic strategic factor in organization.

Modern Management Approaches

Behavioural Approach: Numerous theorists developed the behavioural approach of management
thought as they observed weaknesses in the assumptions of the classical approach. The classical
approach emphasized efficiency, process, and principles. Some management scholars considered that
this thought ignored important aspects of organizational life, particularly as it related to human behaviour.
Therefore the behavioural approach concentrated on the understanding of the factors that affect human
behaviour at work. This is an improved and more matured description of human relations approach. The
various theorists who have great contribution in developing principles of management in this are Douglas
Mc Gregor, Abraham Maslow, Curt Levin, Mary Porker Follelt, Rensis Likert. Behavioural Scientists hold
the classical approach as highly mechanistic, which finds to degrade the human spirit. They choose more
flexible organization structures and jobs built around the capabilities and talent of average employees.
The behavioural approach has based the numerous principles.

 Decision-making is done in a sub-optimal manner, because of practical and situational

constraints on human rationality of decision-making. The behaviourists attach great weight age on
participative and group decision-making.
 Behavioural Scientists promote self-direction and control instead of imposed control.
 Behavioural Scientists believe the organization as a group of individuals with certain
goals.
 Behavioural scientists perceive that the democratic-participative styles of leadership are
enviable, the autocratic, task oriented styles may also be appropriate in certain situation.
 Behavioural scientists propose that different people react differently to the same situation.
No two people are exactly similar and manager should tailor his attempts to influence his people
according to their needs.
 Behavioural scientists identify that organizational variance and change are predictable.
Approach of Mary parker follett: Mary Parker Follett (1868-1933) developed classic structure of the
classical school. However, she initiated many new elements particularly in the area of human relations
and organizational structure. In this, she introduced trends that would be further developed by the talented
behavioural and management science schools. Follett was persuaded that no one could become a whole
person except as a member of a group. Human beings grew through their relationships with others in
organizations. In fact, she explained management as "the art of getting things done through people." She
took for granted Taylor's statement that labour and management shared a common purpose as members
of the same organization, but she considered that the artificial difference between managers and
subordinates is vague in this natural partnership. She believed in the power of the group, where
individuals could combine their diverse talents into something bigger. Moreover, Follett's "holistic" model
of control took into account not just individuals and groups, but the effects of such environmental factors
as politics, economics, and biology. Follett's model was significant precursor of the idea that management
meant more than just what was happening inside a particular organization.

Maslow's theory of self-actualisation: His theory is recognized as Hierarchy of Needs. It is illustrated in a

pyramid and elucidates the different levels and importance of human's psychological and physical needs.
It can be used in business by managers to better understand employee motivation. The general needs in
Maslow's hierarchy include physiological needs (food and clothing), safety needs (job security), social
needs (friendship), self-esteem, and self-fulfilment or actualisation. Maslow's Hierarchy of Needs relates
to organizational theory and behaviour because it explores a worker's motivation. Some people are
prepared to work just for money, because of friends, or the fact that they are respected by others and
recognized for their good work. The final level of psychological development that can be achieved when
all basic and mental needs are fulfilled and the "actualization" of the full personal potential takes place. In
the organizational situation, if an employee's lower need on the hierarchy is not met, then the higher ones
are ignored. For example, if employees are worried that they will be fired, and have no job security, they
will be concerned about friendship and respect.

Douglas McGregor theory of management suggested that there is need to motivate employees through
authoritative direction and employee self-control and he introduced the concept of Theory X and Y.
Theory X is a management theory focused more on classical management theory and assumes that
 workforce need a high amount of supervision because they are inherently lazy. It presupposes that
managers need to motivate through coercion and punishment. Theory Y is a management theory that
assumes employees are determined, self-motivated, exercise self-control, and generally enjoy mental and
physical work duties. Theory Y is in line with behavioural management theories. Theory X and Theory Y
relates to Maslow's hierarchy of needs in how human behaviour and motivation is the main priority in the
workplace in order to maximize output. Theory X: The theory that employees are inherently lazy and
irresponsible and will tend to avoid works unless closely supervised and given incentives, contrasted with
Theory Y. Theory Y: The theory that employees are capable of being ambitious and self-motivated under
suitable conditions, contrasted with Theory X.

An influential theorist in behaviour approach of management thought was Likert. His principles based on
four System such as supportive relationships between organizational members, multiple overlapping
structures, with groups consisting of superiors and their subordinates, group problem solving by
consensus within groups and overlapping memberships between groups by members who serve as
linking pins.

Human Relations Approach: The human rationalists which is also denotes to neo-classicists, focused as
human aspect of business. These theorists emphasize that organization is a social system and the human
factor is the most vital element within it.

There are numerous basic principles of the human relations approach that are mentioned below:

 Decentralization: The concept of hierarchy employed by classical management theorists is

replaced with the idea that individual workers and functional areas (i.e., departments) should be given
greater autonomy and decision-making power. This needs greater emphasis on lateral communication so
that coordination of efforts and resources can occur. This communication occurs via informal
communication channels rather than the formal, hierarchical ones.
 Participatory Decision-Making: Decision-making is participatory in the sense that those
making decisions on a day-to-day basis include line workers not normally considered to be
"management." The greater sovereignty afforded individual employees and the subsequent reduction in
"height" and increase in span of control of the organizational structure requires that they have the
knowledge and ability to make their own decisions and the communication skill to coordinate their efforts
with others without a nearby supervisor.
 Concern for Developing Self-Motivated Employees: The importance on a system of
decentralized and autonomous decision-making by members of the organization necessitates that those
members be extremely "self-motivated". Goal of managers in such an organization is to design and
implement organizational structures that reward such self-motivation and autonomy. Another is to
negotiate working relationships with subordinates that foster effective communication in both directions.
Therefore, the human relations approach implies modifications in the structure of the organization itself, in the nature
of work, and in the association between manager and assistant. Each of these changes depends upon assumptions
about the individual, the organization, and communication, just like any other theory of organizations. Elton Mayo and
others conducted experiments that was known as Hawthorne experiments and explored informal groupings,
informal relationships, patterns of communication, and patterns of internal leadership. Elton Mayo is usually popular
as father of Human Relations School. The human relationists, advocates the several factors after conducting
Hawthorne experiments which are mentioned below.

 Social system: The organization in general is a social system consists of numerous

interacting parts. The social system established individual roles and establishes norms that may differ from those of
formal organization.
 Social environment: The social climate of the job affects the workers and is also affected.
 Informal organization: The informal organization does also exist within the frame work of
formal organization and it affects and is affected by the formal organization.
 Group dynamics: At the place of work, the workers often do not act or react as individuals
but as members of group. The group plays an important role in determining the attitudes and performance
of individual workers.
 Informal leader: There is an appearance of informal leadership as against formal
leadership and the informal leader sets and enforces group norms.
 Non-economic reward: Money is an encouraging element but not the only motivator of
human behaviour. Man is diversely motivated and socio psychological factors act as important motivators.
Behavioural Science: Behavioural science and the study of organizational behaviour emanated during
1950s and1960s. The behavioural science approach was a natural development of the human relations
movement. It concentrated on applying conceptual and analytical tools to the problem of understanding
and foresees behaviour in the place of work. The behavioural science approach has contributed to the
study of management through its elements of personality, attitudes, values, motivation, group behaviour,
leadership, communication, and conflict, among other issues.

Contingency Approach: This approach of management thought focuses on management principles and

concepts that have no general and universal application under all conditions. Joan Woodward in the
1950s has contributed to develop this approach in management. Contingency school states that
management is situational and the study of management recognize the important variables in the
situation. It distinguishes that all the subsystem of the environment are interconnected and interrelated. By
studying their interrelationship, the management can find resolution to specific situation. Theorists stated
that there is not effective way of doing things under all business conditions. Methods and techniques
which are extremely effective in one situation may not give the same results in another situation. This
approach proposes that the role of managers is to recognize best technique in particular situation to
accomplish business goals. Managers have to develop situational understanding and practical selectivity.
Contingency visions are applicable in developing organizational structure, in deciding degree of
decentralization, in motivation and leadership approach, in establishing communication and control
systems, in managing conflicts and in employee development and training. The contingency approach is
associated with applying management principles and processes as dictated by the sole characteristics of
each situation. It depends on various situational factors, such as the external environment, technology,
organizational characteristics, characteristics of the manager, and characteristics of the subordinates.
Contingency theorists often implicitly or explicitly disapprove the classical approach as it focuses on the
universality of management principles.

The Quantitative Approach Of Management

Thought
The quantitative approach aimed at enhancing the process of decision making through the use of
quantitative techniques. It is evolved from the principles of scientific management.

 Management Science (Operations Research): Management science which is also

known as operations research utilized mathematical and statistical approaches to resolve management
issues. It was developed during World War II as strategists attempted to apply scientific knowledge and
methods to the intricate troubles of war. Industry started to apply management science after the war. The
introduction of the computer technology made many management science tools and concepts more
practical for industry
 Production and Operations Management: This approach emphasizes the operation and
control of the production process that changes resources into manufactures goods and services. This
approach is emerged from scientific management but became a specific area of management study after
World War II. It uses many of the devices of management science. Operations management underlines
productivity and quality of both manufacturing and service organizations. W. Edwards Deming exercised a
great influence in developing contemporary ideas to improve productivity and quality. Major areas of study
within operations management include capacity planning, facilities location, facilities layout, materials
requirement planning, scheduling, purchasing and inventory control, quality control, computer integrated
manufacturing, just-in-time inventory systems, and flexible manufacturing systems.

Systems Approach Of Management Thought

The systems approach deals with the thoroughly understanding the organization as an open system that
converts inputs into outputs. The systems approach has great impact on management thought in the
1960s. During this period, thinking about managing practices allowed managers to relate different
specialties and parts of the company to one another, as well as to external environmental factors. The
system approach focuses on the organization as a whole, its communication with the environment, and its
need to achieve equilibrium.

System approach

To summarize, there are important theories of Management and each theory has distinct role to
knowledge of what managers do. Management is an interdisciplinary and global field that has been
developed in parts over the years. Numerous approaches to management theory developed that include
the universal process approach, the operational approach, the behavioural approach, the systems
approach, the contingency approach and others. F W Taylor, Adam Smith, Henry Fayol, Elton Mayo and
others have contributed to the development of Management concept. The classical management
approach had three major categories that include scientific management, administrative theory and
bureaucratic management. Scientific management highlighted the scientific study of work methods to
improve worker efficiency. Bureaucratic management dealt with the characteristics of an perfect
organization which operates on a rational basis. Administrative theory explored principles that could be
used by managers to synchronise the internal activities of organizations. The behavioral approach
emerged mainly as an outcome of the Hawthorne studies. Mary Parker Follet, Elton Mayo and his
associates, Abraham Maslow, Douglas McGregor and Chris Argyris were main players of this school.