CONTENTS

PAGE

LIST OF TABLES LIST OF FIGURES 1.CLASSICAL PERIOD 1.1 Scientific Management 1.1.1 Fredrick W.Taylor 1.1.2 Henry L. Gantt 1.1.3 The Gilbreth 1.2 Administrative theory 1.3 Bureaucratic Model 2.NEO-CLASSICAL APPROACH 2.1 Hawthorne Experiment 2.2 Human Relations Movement 2.3 Organizational Behavior 2.4 Major contributors of Neo Classical theory 3. MODERN MANAGEMENT APPROACH 3.1 System Approach 3.2 Contingency or Situational Approach 3.3 Minzbergs Managerial Approach 3.4 Other Recent Approaches

2 2 4 4 4 6 6 7 11 12 12 14 14 16 18 18 20 22 24

SUMMARY KEY TERMS REFERRENCE

30 31 33

LIST OF TABLES
1

Table 1 2

Description Minzbergs Managerial Roles Different Types of Management Practices

Page No 23 25

LIST OF FIGURE Figure

1 2 3 4 Description Elements of Management according to Henri Fayol Organizational Behavior Contingency Approach McKinseys 7-S Model (Source:Mckinsey& Company) Page No 10 15 20 26

The term management encompasses an array of different functions undertaken to accomplish a task successfully. It is the process of designing and maintaining an environment in which individuals, working to gather in groups, efficiently accomplish selected aims. There are many approaches for the management varying from a problem to problem solving style to the change. Each approach has its own limitations and advantages. Management is all about getting things done. Management has been practiced in some from or the other since the dawn of civilization. Ever since human beings began to live and work together in groups, techniques of organization and management were evolved. The Sumerian civilization dating back to 300 B.C. had an efficient system of tax collection. The pyramids of Egypt, the Chinese Civil Service, the Roman Catholic Church and military organization offer good examples of the application of management in ancient times. The early contributions to management thought came from Roman Catholic Church, military organization and camera lists. The principles of hierarchy of authority, territorial organization, functional specifications, etc. developed in the Roman Catholic Church. Military organization contributed division of work, secular principle and staff concept. Thus the art of management has ancient origins. However, the science of management developed largely after the Industrial Revolution which established the factory system .Scientific management movement laid the foundations of management as a science. Prior to this movement several early pioneers like Robert Owen, Charles Babbage, Henry R, Towne, Henry V. Poor, James Watt jr.,MathewR.Boutton and Charles Dupin made significant contributions during the pre-scientific management era. Modern management thought has developed during several stages. These stages or approaches or theories to the study management may be classified as follows. 1. Classical period 2. Neo-classical period 3. Modern period

1. Classical period (1900-1930)

3

The classical approach offers a convenient framework for the education and training of future managers. It views management as a distinct discipline based on certain principles. It focuses attention on what managers actually do such as functions management and universal nature of management. It provides a foundation for further research in management. There are main branches of classical theory 1.1 Scientific management 1.2 Administrative theory 1.3 Bureaucracy

1.1 Scientific ManagementScientificManagementtheoryaroseinpartfromtheneedto

increaseproductivity.IntheUnitedStatesespecially,skilledlaborwasinsh ortsupplyatthebeginningofthetwentiethcentury.Theonlywaytoexpan dproductivitywastoraisetheefficiencyofworkers.Therefore,FrederickW. Taylor,HenryL.Gantt,andFrankandLillianGilbrethdevisedthebodyof principlesknownasscientificmanagementtheory. 1.1.1 FREDERICKW.TAYLOR He acknowledged as the father of scientific of management. His principles emphasized using science, creating group harmony and cooperation, achieving maximum output and developing workers. FrederickW.Taylor (18561915)restedhisphilosophyonfourbasicprinciples: Replace working by "rule of thumb," or simple habit and common sense, and instead use the scientific method to study work and determine the most efficient way to perform specific tasks. Rather than simply assign workers to just any job, match workers to their jobs based on capability and motivation, and train them to work at maximum efficiency. Monitor worker performance, and provide instructions and supervision to ensure that they're using the most efficient ways of working. Allocate the work between managers and workers so that the managers spend their time planning and training, allowing the workers to perform

their tasks .Friendlycooperationbetweenmanagementandlabor.

efficiently

Concluding his philosophy, Taylor observed, scientific management is not an efficiency device, nor time study, nor motion study, nor it is a new system of finding cost, nor a new system of paying workers. In its essence, it involves a complete mental revolution on the part of both workers and management and without this double mental revolution, scientific management does not exist. Evolution of Scientific Management: Taylors ideas led to a powerful scientific management movement. His theory resulted in scientific improvement in productivity .He was the first to assert that management was quite distinct from the technology of industry. His main contribution lies in the application of scientific methods to the problems of management. He highlighted the need for mutual co operation between employer and employees. However, scientific management has been criticized on the following grounds: Scientific management is production centred.It concentrates too much on technical aspects of work and undermines the human factor in industry. Trade unions and labor opposed scientific management .They allege that it results in over speeding, monotony, rate cutting, insecurity and industrial autocracy. AlthoughTaylor'smethodledtodramaticincreasesinproductivityandtohi gherpayinanumberofinstances,workersandunionsbegantoopposehis approachbecausetheyfearedthatworkingharderorfasterwouldexhaustw hateverworkwasavailable,causinglayoffs.Moreover,Taylor'ssystemclearly meantthattimewasoftheessence.Hiscriticsobjectedtothe"speedup" conditionsthatplacedunduepressuresonemployeestoperformatfastera ndfasterlevels.Theemphasisonproductivity and,byextension,profitability ledsomemanagerstoexploitbothworkersandcustomers.Asaresult,mor eworkersjoinedunionsandthusreinforcedapatternofsuspicionandmistr ustthatshadedlabormanagementrelationsfordecades. 1.1.2 HENRYL.GANTT HenryL.Gantt (18611919)workedwithTayloronseveralprojects. But when he went
5

out on his own as a consulting industrial engineer, Gantt began to r econsider Taylor's incentive system. Abandoning the differential rate system as having too little motivationa l impact, Gantt came up with a new idea. Every worker who finishe d a day's assigned work load would win a 50 cent bonus. Then he added a second motivation. The supervisor would earn a bonus for each worker who reached the daily standard, plus an extra bonus if all the workers reached it. This, Gantt reasoned, would spur supervi sors to train their workers to do a better job. Every worker's progress was rated publicly and recorded on individual bar charts, in black on days the worker made the standard, in re d when he or she fell below it. Going beyond this, Gantt originated a charting systemfor production scheduling; the "Gantt chart" is still in use today. In fact,the Gantt Chart was translated into eight langu ages and used throughout the world. Starting in the 1920s, it was in use in Japan, Spain, and the Soviet Union. It also formed the basis for two charting devices which were developed to assist in planning, managing, and controlling complex organizations: the Critical Path Method (CPM), originated by Du Pont, and Program Evaluation and Review Technique (PERT), developed by the Navy. Lotus 1 2 3 is a creativ e application of the Gantt Chart. 1.1.3 THE GILBRETHS Frank B. and Lillian M. Gilbreth (1868 1924 and 1878 1972) made their contribution to the scientific management movement as a husband and wife team. Lillian and Frank collaborated on fatigue and motion studi es and focused on ways of promoting the individual worker's welfare. To them, the ultimate aim of scientific management was to help w orkers reach their full potential as human beings.In their conception, motion and fatigue were intertwined every motion that was eliminated reduced fatigue. Using motion pictur e cameras, they tried to find the most economical motions for each task in order to upgrade performance and reduce fatigue. The Gilbreth s argued that motion study would raise workermorale because of its
6

obvious physical benefits and because itdemonstrated management's conc ern for the worker.

1.2

Administrative theory

Henri Fayol referred as the father modern management theory. He (1841-1925) was an engineer and chief executive of a mining company in France. He developed a functional approach to management which came to be known as administrative theory. He published his famous book Administrative industrielleetGenerale in 1976 which was translated in English under the General and industrial Management in 1948.Fayolss theory may be analyzed under the following heads: Classification of Business activities: According to Fayol, all business activities could be divided into six categories: i. Technical(production or manufacturing) ii. Commercial(Buying,selling and exchange) iii. Financial(searching for and optimum use of capital) iv. Security(protection of property and persons) v. Accounting(recordkeeping,costing,statistics) vi. Managerial function (planning,organizing,commanding,coordinating ,controlling) Fayols 14 Principles of management 1. Division of Labor: The more people specialize, the more efficientl they can perf ormtheir work. This principle is epitomized by the modern as sembly line. 2. Authority: Managers must give orders so that they can get thingsdone. While their formal authority gives them the right to command , managers will not always compel obedience unless theyhave p ersonal authority (such as relevant expertise) as well. 3. Discipline. Members in an organization need to respect the ru les and agreements that govern the organization. To Fayol, di scipline results from good leadership at all levels of the orga nization,
7

fair agreements (such as provisions for rewarding superior Performance) and judiciously enforced penalties for infractions. 4. Unity of Command: Each employee must receive instructions from only one person . Fayol believed that when an employee reported to more th an one manager, conflicts in instructions and confusion of authority would result. 5. Unity of Direction.Those operations within the organization that have the same objective should be directed by only one m anager using one plan. For example, the personnel department in a company should not have two directors, each with a differ ent hiring policy. 6. Subordination of Individual Interest to the Common Good. In any undertaking, the interests of employees should not take precedence over the interests of the organization as a whole 7. Remuneration. Compensation for work done should be fair to both employees and employers. 8. Centralization. Decreasing the role of subordinates in decision making is centralization; increasing their role in decentralization . Fayol believed that managers should retain final responsibilit y, but hould at the same time give their subordinates enough authori ty to do their jobs properly. The problem is to find the pro per degree of centralization in each case. 9. The Hierarchy. The line of authority in an organization often represented today by the neat boxes and lines of the o rganizationchart runs in order of rank from top management to the lowest level of the enterprise

10.Order. Materials and people should be in the right place at the right time. People, in particular, should be in the jobs o r positions they are most suited to. 11.Equity. Managers should be both friendly and fair to subordin ates. 12.Stability of Staff. A high employee turnover rate undermines the efficient functioning of an organization.. 13.Initiative. Subordinates should be given the freedom to concei ve and carry out their plans, even though some mistakes may result. 14.Espirit de Corps. Promoting team spirit will give the organiza tion a sense of unity. To Fayol, even small factors should help to develop the spirit. He suggested, for example, the use of ver bal communications instead of formal, written communication whenever possible. Source: Henri Rayol Industrial and General Administration, J.A.Caubrou gh, trans. (Geneva International Management Institute, 1930)

Elements of Management:
9

Fayol classified management functions as follows,

Fig 1: Elements of Management according to Henri Fayol.

Evaluation of Fayols work: Henri Fayol made outstanding contribution to management thought. He made a clear distinction between operative activities and managerial activities. He clearly specified the functions of management by a systematic analysis on management process. This isolation and analysis of management as a discipline was his original contribution to the body of management theory.He also highlighted the universal character of management principles. One of the greatest contributions of Fayol is that his idea paved the way for the development of theory of management. Fayols work has however been criticized on several counts. First, his theorys said to be too formal. Secondly, he did not pay adequate attention to workers.Thirdly,there is vagueness and superficially about some of his terms and definitions. Fourthly,he hinted at but did not elaborate that management can and should be taught.

1.3

Bureaucratic model
10

Reasoning that any goal oriented organization consisting of thousands of individuals would require the carefully controlled regulation of its activities,the German sociologist Max Weber (1864 1920) developed a theory of bureaucratic management that stressed the need for a strictly defined hierarchy governed by clearly defined regulations and lines o f authority. Heconsidered the idealorganization to be a bureaucracy wh ose activities andobjectives were rationally thought out and whose divi sions of labor were explicitly spelled out. Weber also believed that t echnical competence should be emphasized and that performance evaluations should be mad e entirely on the basis of merit.Today we often think of bureaucracie s as vast, impersonal organizations that put impersonal efficiency ahea d of human needs. We should be careful, though, not to apply our negative connotations of the word bureaucracy to the term as Weber use it. Like the scientific management theorists, Weber sought to impr ove the performance of socially important organizations by making the ir operations predictable and productive. Although we now value innov ation and flexibility as much as efficiency and predictability, webers model of bureaucratic management clearly advanced the formation of huge corporations such as Ford. Bureaucracy was a particular pattern of elationships for which Weber saw great promise.A lthough bureaucracy has been successful for many companies, in the c ompetitive global market of the 1990s organizations such as General Electric and Xerox have become bureaucracy busters," throwing away t he organization chart and replacing itwith ever changing constellations of teams, projects, and alliances with thegoal of unleashing employee creativity

2. Neo-classical Approach(1930-1960)

11

Neo- classicaltheory is referred to as behavioral scienceapproach to modifying and improving the classical theory. While classical theories focused more on structure and physical aspects of the worker and Neo-classical theory gives importance to human and social aspects of the worker and his relations in the organization. George Elton Mayo (1880-1949) is considered to be the founder of the neo classical theory. He was the leader of the team which conducted the famous Hawthorne Experiments at the western Electric Company (USA) during 19271932. Elements of Neo-Classical theory The main elements of the neo-classical theory are as follows: 2.1 Hawthorne Experiments 2.2 Human Relations Movement 2.3 Organizational Behavior 2.1 Hawthorne Experiments The neo-classical theory is based on the Hawthorne experiments. Elton Mayo conducted the Hawthorne experiments at Hawthorne plant of General Electronic Company (GEC) between 1927 and 1993 at Chicago with 30,000 workers. The Hawthorne plant was manufacturing telephone system bell. The objective of the experiment was to find out the behavior and attitude of workers at workplace under better working conditions. In the company, when management provide the benefits of medical allowance and pension with recreational facilities. Even though workers get all facilities but the productivity was not up to expectation. So, in 1924, the professor Elton Mayo and his research team investigate the reasons for dissatisfaction of employees and decrease in productivity. Four Phase of Hawthorne experiments: Prof. Elton Mayo and his team conducted researches in four phases.

Illumination experiments (1924 1927) Relay assembly room experiments (1927 1928) Mass interviewing programed (1928 -1930) Bank wiring room study (1931 1932)

Result of Hawthorne Experiments:

Motivation: Employees are not motivated by only money (bonus scheme and incentive).

12

Communication: communication helps the management and employees to have better mutual understanding. Through proper communication, management can easily identified the problem faced by its employees and can easily solve out. Social factors: Social factors are responsible for deciding the level of output. Behavior of workers: workers are not as individual identity but as members of a group in an organization and they have their own norms and beliefs. Workers behavior depends upon his mental level and emotions. Workers began to influence their group behavior towards management. Relationship: Employees do not like order and command. They preferred to maintain amicable relationship with their co-workers. They want cooperative attitude from their superiors. Production level: Teamwork and Group psychology increases productivity.

Criticism of Hawthorne Experiments:

Hawthorne experiment was not conducted scientifically. In the experiment, various format and structure are not feasible. Elton Mayo gives more importance to human aspect and ignoring other important aspects.

Group conflict is prevalent in an organization. Hawthorne experiment did not give any recognition to the forces which are responsible for productivity in the organization.

During experiment, Elton Mayo has assumed that a satisfied employee would be productive. But the finding was different. There is no link between working condition and productivity.

2.2 Human Relations Movement The human relations movement was founded by sociologist George Elton Mayo in the 1930s following a series of experiments known as the Hawthorne studies, which focused on exploring the link between employee satisfaction/wellbeing and workplace productivity.
13

Essentially the Hawthorne studies concluded that when employers take an interest in workers and make decisions based on their natural needs and psychological makeup, productivity increases. They also found that people work best when organized into groups, when they can have effective two-way communication with their leaders, and when leaders communicate and share information freely as part of an overall cohesive decision-making process. The human relations movement is seen as the precursor of the modern human resources function. Before the human relations movement, workers were typically seen as replaceable cogs in organizational systems that put the ultimate value on higher output. Human relations are frequently used as a general term to describe the ways in which managers interact with their employees. When "employee management" stimulates more and better work, the organization has effective human relations; when morale and efficiency deteriorate, its human relations are said to be ineffective. The human relations movement arose from early attempts to systematically discover the social and psychological factors that would create effective human relations.

2.3 Organizational Behavior: Organizational Behavior (OB) is the study and application of knowledge about how people, individuals, and groups act in organizations. It does this by taking a system approach. That is, it interprets people-organization relationships in terms of the whole person, whole group, whole organization, and whole social system. Its purpose is to build better relationships by achieving human objectives, organizational objectives, and social objectives.

14

Fig 2: Organizational Behavior Elements of Organizational Behavior The organization's base rests on management's philosophy, values, vision and goals. This in turn drives the organizational culture which is composed of the formal organization, informal organization, and the social environment. The culture determines the type of leadership, communication, and group dynamics within the organization. The workers perceive this as the quality of work life which directs their degree of motivation. The final outcome is performance, individual satisfaction, and personal growth and development. All these elements combine to build the model or framework that the organization operates from. Models of Organizational Behavior There are four major models or frameworks that organizations operate out of, Autocratic, Custodial, Supportive, and Collegial (Cunningham, Eberle, 1990; Davis ,1967): 1. Autocratic the basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and

15

dependence on the boss. The employee need that is met is subsistence. The performance result is minimal. 2. Custodial the basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented towards security and benefits and dependence on the organization. The employee need that is met is security. The performance result is passive cooperation. 3. Supportive the basis of this model is leadership with a managerial orientation of support. The employees in turn are oriented towards job performance and participation. The employee need that is met is status and recognition. The performance result is awakened drives. 4. Collegial the basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behavior and self-discipline. The employee need that is met is self-actualization. The performance result is moderate enthusiasm. The first model, autocratic, has its roots in the industrial revolution. The managers of this type of organization operate mostly out of McGregor's Theory X. The next three models begin to build on McGregor's Theory Y. They have each evolved over a period of time and there is no one best model. In addition, the collegial model should not be thought as the last or best model, but the beginning of a new model or paradigm.

2.4 Major contributors of Neo-classical theory are: Chris Argyris- He recommended that worker should be given freedom to make their own judgments. Mary Praker Follett: He referred group influence.

Dougals Me Gregor: he referred two views. X-theory- it is based on classical theory and
16

Y-theory- it is based on neo-classical theory. Abraham Maslow: He referred individual needs.

Appraisal of neo-classical theory: Neo Classical theory or behavioral approach has made significant contributions to an understanding of human behavior at work and in organization. It has generated awareness of the overwhelming role of human factor in industry. This idea has given new ideas and techniques for better understandings of human behavior. Group dynamics, leadership, motivation, participation, job environment etc. Constitute the core of the neo classical theory. Behavioral approach has contributed new ideas for more effective management. It is however, not free from limitations. Firstly, it lacks the precision of classical theory because human behavior is unpredictable. Secondly, its conclusions lack scientific validity and suffer from a clinical bias. Its findings are tentative. Thirdly, management varies wider than organizational behavior. Fourthly, its application in practice is very difficult because it requires fundamental changes in the thinking and attitudes of both management and workers. Fifthly, many of the assumptions of neoclassical theory on which it bases its recommendations for Organizational design and functioning are not true. The assumption that it is always possible to find out a solution that satisfies everybody is not true. Often there are sharp conflicts of interest among various groups in the organization that are structural in character and not merely psychological. This aspect has not been dealt adequately in neoclassical theory. Lastly, the linkage between an organization and the world outside it has been overlooked in the neo classical theory.

3. Modern Management Approach (1960-onwards)

Management is one or the other form has existed in every nook and corner of the world since the dawn of civilization. Modern Management has grown with the growth of social-economics and scientific institution. Modern view consists that a
17

worker does not work for only money. They work for their satisfaction and happiness with good living style. Here Non- financial award is most important factor. Modern management theories started after 1950s. Modern management theory focuses the development of each factor of workers and organization. Modern management theory refers to emphasizing the use of systematic mathematical techniques in the system with analyzing and understanding the inter-relationship of management and workers in all aspect. The classical and neo classical theories suffer from a common weakness. They stress one aspect of organization at the cost of others. The classical theory stresses the task and structure aspects while the neo classical theory emphasizes people aspect. Both these theories do not take into account the environment aspect. Modern theory involves an integrated view of all these aspects. It takes a multidimensional view of management whereas the earlier theories were based on undimensional approach. The various approaches to modern management are follows: 3.1 System approach: System approach was developed inlate1960s. Herbert A. Simon is the father of system theory. A System is defined as a set of regularly interacting or inter dependent components that create as a whole unit. The system concept enables us to see the critical variables and constraints and their interactions with one another. According to Cleland and King; A system is composed of related and dependent elements which when in interaction from a unity whole. A system is a set of inter-connected and inter-related elements directed to achievecertain goals. This theory views organization as an organic and open system composedofmanysub-systems.Asasystem organization is composed of a number of sub-systems viz.prouction, supportive, maintenance, adaptive managerial, individuals and informal groups. All these sub-systems operate in an interdependent and interactional relationship.Thevarioussubsystems or parts of an organization are linked with eachotherthrough communication, decisions,authority responsibility relationships, objectives, policies, procedures and other aspects of coordinating mechanism. Organizations as systems have a variety of goals. The important among them are survival, integration and adaptation with environment and growth. The major features of the approach to the study of management may be summed up as under: 1. A system consists of inter-related and interdependent parts. 2. The approach emphasizes the study of the various parts in their interrelationships rather than in isolation from each other.
18

3. The approach brings out the complexity of a real life management problem much more sharply than any of other approaches. 4. The approach may be utilized by any of the other approaches. 5. The approach has been utilized in studying the function of complex organizations and has been utilized as the base for new kinds of organization. 6. A system must have some specific components, units or sub units. 7. A Change in one system affects the other subsystems. 8. Every system is influenced by super system. 9. All systems along their subsystem must have some common objectives. 10. A system is a goal-oriented. 11. A system cannot survive in isolation. Systems approach is an approach that entails analysis of problems and come up with a blend of solutions. It is a generally approach that involves tackling problems in an advanced disciplined manner keeping priorities in mind. It is a branch of systems thinking process. System approach however suffers from some drawbacks. First, systems concepts are said to be abstract and vague. Secondly, too many subsystems and interdependence among them make the task of manager very difficult. It becomes complicated and it is not clear to do to effect the desired change in the system.

3.2 Contingency or Situational Approach Contingency Approach also knows as situational approach. In 1980s, it is recognized as a key to effective management. This approach accepts the dynamics and complexities of the organization structure. An organization is affected by its environment and environment is composed by physical resources, climate, persons, culture, economic and market conditions and their laws. The contingency approach is a method of business management derived from the Contingency theory. The Contingency theory assumes that there is no best way to manage a business because businesses and situations differ to a great extent. A management approach that works for one company may not work for another. Even within the same organization, management methods may vary depending on the situation.
19

Fig 3: Contingency Approach According to contingency theory effective management is contingent upon the situation. Joan Woodward, P.R.Lawrence, J.W.Lorsch, Burns, G.M.Stalker, J.D.Thompson, Charles perroow, R.M Stogdill are the main contributors to the contingency approach. Contingency approach advocates that managerial actions and organizational design must be appropriate to the given situation and a particular action is valid only under certain conditions. There is no one best approach to management and it all depends on the situation. In other words, managerial action is contingent upon external environment. There is no one best approach for all situations. What a manager does depends upon a given situation and there is an active interrelationship between the variables in a situation and the managerial action. Contingency theory attempts to analyses and understand these interrelationships with a view towards taking the specific managerial actions necessary to deal with the issue. This approach is both analytical and situational, with the purpose of developing a practical answer to the question at hand. There are three major elements of the overall conceptual framework for contingency management; the environment, management concepts and techniques and the contingent relationship between them. Features of contingency approach 1. Management is externally situational: the conditions of the situation will determine which techniques and control system should be designed to fit the particular situation.
20

2. 3. 4. 5. 6. 7. 8.

Management is entirely situational. There is no best way of doing anything. One needs to adapt himself to the circumstances. It is a kind of if then approach. It is a practically suited. Management policies and procedures should respond to environment. Managers should understand that there is no best way of managing. It dispels the universal validity of principles.

Superiority of contingency approach Clear-cut emergence of contingency approach was noticed after the popularization of systems approach. The contingency theorists accept open adaptive nature of the organization and the interdependency between various sub-systems of the organization. But they have pointed out that the systems approach does not adequately spell out the precise relationship between organization and its environment. It is too abstract and difficult to apply in practice. They have tried to modify and operationalize the system framework. Contingency approach is concerned mainly with the structural adaptation of organization to the task environment. But both these viewpoints are not mutually exclusive. They should be treated as complementary to each other. The manager should use systems and other approaches under the framework of contingency approach. Contingency theory has however been criticized on several grounds. First, it lacks a sound theoretical base. Secondly, it all depends upon situation confuse management. A manager has to think through all possible alternatives as he has no cut or dried principles to act upon. Thirdly, the logical extension of the contingency approach is that all situations are unique. If this is true then management can be practiced only by intuition and judgment thereby negating the value of prior knowledge and wisdom. 3.3 Mintzberg'sManagerialApproach One widely discussed approach to management theory is the managerial roles approach, popularized by Henry Mintzberg of McGill University essentially, his approach is to observe what managers actually do and from such observations come to conclusions as to what managerial activities (or roles) arc. Although many researchers have studied the actual work of managersfrom CEOs to line supervisorsMintzberg has given this approach higher visibility.
21

Management expert Professor Henry Mintzberg has argued that a managers work can be boiled down to ten common roles. According to Mintzberg, these roles, or expectations for a managers behavior, fall into three categories: informational (managing by information), interpersonal (managing through people), and decisional (managing through action). Mintzberg published his Ten Management Roles in his book, "Mintzberg on Management: Inside our Strange World of Organizations," in 1990. The ten roles are: 1. Figurehead. 2. Leader. 3. Liaison. 4. Monitor. 5. Disseminator. 6. Spokesperson. 7. Entrepreneur. 8. Disturbance Handler. 9. Resource Allocator. 10.Negotiator. The 10 roles are then divided up into three categories, as follows: Category Interpersonal Roles Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator

Informational

Decisional

Table 1: Minzbergs Managerial roles Let's look at each of the ten roles in greater detail.
22

Interpersonal Category The roles in this category involve providing information and ideas. 1. Figurehead As a manager, we have social, ceremonial and legal responsibilities. You're expected to be a source of inspiration. People look up to us as a person with authority, and as a figurehead. 2. Leader This is where we provide leadership for our team, our department or perhaps our entire organization; and it's where we manage the performance and responsibilities of everyone in the group. 3. Liaison Managers must communicate with internal and external contacts. we need to be able to network effectively on behalf of our organization. Informational Category The roles in this category involve processing information. 4. Monitor In this role, you regularly seek out information related to our organization and industry, looking for relevant changes in the environment. We also monitor our team, in terms of both their productivity, and their wellbeing. 5. Disseminator This is where we communicate potentially useful information to our colleagues and our team. 6. Spokesperson Managers represent and speak for their organization. In this role we're responsible for transmitting information about our organization and its goals to the people outside it. Decisional Category The roles in this category involve using information. 7. Entrepreneur As a manager, we create and control change within the organization. This means solving problems, generating new ideas, and implementing them. 8. Disturbance Handler When an organization or team hits an unexpected roadblock, it's the manager who must take charge. We also need to help mediate disputes within it. 9. Resource Allocator We'll also need to determine where organizational resources are best applied. This involves allocating funding, as well as assigning staff and other organizational resources.
23

10.Negotiator We may be needed to take part in, and direct, important negotiations within your team, department, or organization.

3.4 Other recent approaches Framework of management practices based on more recent trends like globalization, theory Z concepts, McKinsey's 7-S approach, excellence models, and productivity and quality issues. With the pervasiveness of the World Trade Organization (WTO) and the European Economic Community (EEC), everyone is now operating in a global economy. Managers are now required to think globally even to operate in domestic markets. Market shares are lost in domestic markets because of competing foreign companies. Hence, understanding management from a global perspective has now become important.

Theory Z concepts, pioneered by W. G. Ouchi and A. M. Jaeger (1978),

incorporate elements of Japanese and American management culture and emphasize the need to study and adopt appropriate management practices from other countries. The underlying concept can be better understood through a reading of the information provided in Table 2. Table 2Different Type of Management Practices Type A (American) Type J (Japanese) Type Z (Modified American) 1.Short-term Lifetime employment Long-term employment employment 2.Individual decision Consensual decision Consensual decision making making making 3.Individual Collective Individual responsibility responsibility responsibility 4.Rapid evaluation and Slow evaluation and Slow evaluation and promotion promotion promotion 5.Explicit, formalized Implicit, informal Implicit, informal control with control control explicit, formalized measures 6.Specialized career Non-specialized Moderately specialized career path path career path
24

7.Segmented concern

Holistic concern

Holistic concern, including family

McKinsey's 7-S frameworkdeveloped by T. J. Peters and R. H. Waterman

(1982) identified seven independent organizational factors that need to be managed by today's managers. 1. Strategy: To determine allocation of scarce resources and commit the organization to a specific course of action 2. Structure: To determine number of levels (in hierarchy) and authority centers 3. Systems: To determine organizational process, procedures, reports, and routines 4. Staff: To determine key human resource groups in the organization and describe them demographically 5. Style: To determine the manner in which managers should behave in achieving organizational goals 6. Superordinate goals (shared vision): To determine the guiding concepts that an organization has to instill in its members 7. Skill: To determine the abilities of people in the organization The 7-S framework suggests that any change in any S factor may lead to adjustment of other S factors. Meanwhile, the concept of 8S has been introduced with the addition of one more S, namely, streaming. Streaming includes those areas that either indirectly or directly influence or shape the other S factors. Peters and Waterman (1982) in their pioneering work, In Search of Excellence, identified some common characteristics of excellent organizations. Such characteristics have now become important management principles. Global competition has further accentuated the need for enhancing quality and productivity. These two attributes are the basic requirements for any organization to retain competitive advantage. Hence, management practices should focus on these by developing human resources to sustain their competitive advantage.

25

Fig 4: McKinsey's 7-S Model (Source:Mckinsey& Company)

Management Science Approach

It is known as Mathematical or Quantitative Measurement Approach. Features 1. Management is regarded as the problem-solving mechanism with the help of mathematical tools and techniques. 2. Management problems can be described in terms of mathematical symbols and data. Thus every managerial activity can be quantified. 3. This approach covers decision-making, systems analysis and some aspects of human behavior. Operations research, mathematical tools, simulation, models etc. are the basic methodologies to solve managerial problems. Uses
26

It has contributed significantly in developing orderly thinking in management which has provided exactness in management discipline. Various Mathematical tools like sampling, linear programming, games theory, time series analysis, simulation, waiting line theory etc. have provided more exactness in solving managerial problems. This approach is a fast developing area in analyzing and understanding management.
Limitations

It is very difficult to call a separate school of management because it does not provide the answer for total managerial problems. Managerial activities are not really capable of being quantified because of involvement of human beings who are governed by many irrational factors also. more expertise and technical skills are required to formulate mathematical models

Socio-Technical Systems Approach

Contributors The contributors are Trist,Saddam khan and Bamforth of Tavistock Institute of Human Relations, England and Emery and Rice.Really. Features

The socio-technical systems approach of management views an organization as a combination of 2 systems a social system and a technical system. The real pattern of behavior in the organization is determined by the interaction of two. Social systems of the organization are governed by social laws as well as by psychological forces. Technical systems consist of technological forces operating in the organization like physical setting of work, rules, procedures etc. Due to interaction of social and technical systems, technical aspects of the work are modified by social aspects. Thus organization of an organization situation within the framework of socio-technical system involves scrutinizing of the specific technology used, the way in which patterns are organized, the formal
27

structuring of interpersonal interactions and the informal patterns emerging in the work group. Uses

While analyzing management problems of getting things done by people, adequate consideration should be given to technology as well as informal interactions of people.

Decision Theory Approach

Features Management is essentially decision-making. Members of the organization are decision-makers and problems solvers. Organization can be treated as a combination of various decision centres. The level and importance of organization members are determined on the basis of importance of decisions, which they make. Quality of decision affects the organization effectiveness. All factors affecting decision-making are the subject matter of study of management. Besides processes and techniques in decision making factors affecting decisions are information systems, social and psychological aspects of decision-makers. Uses It demonstrates how managers can discharge their functions effectively and for this approach it provides various tools. Decision theorists have grappled with decisions pertaining to diagnosis and the resulting prescriptions for improving communication, incentives, reactions of the individuals to group and analysis of human values write stated objectives. Limitations

This approach does not take the total view of management. Decision-making is vital in every school of management. This vital aspect cannot be denied but management is more than mere decision-making.

28

Operational Approach
Also known as Management Process Approach Features Management is the study of what managers do. It emphasizes on management functions and various concepts and principles involved in performing these functions. Management functions are universal irrespective of the type of organizational or level of management in an organization, though there may be differences on emphasis on a particular function in a particular organization or at particular level. The conceptual framework of management can be constructed on the basis of the analysis of management process and identification of management principles. The central core of managing revolves around planning, organizing, staffing, directing and controlling. This central core of management is unique and is not found in other activities. Limitations Criticisms of Operational Approach are as follows.

The basic tenets of operational management that is various managerial functions are not universally accepted. Management functions differ from author to author. Various terms used in this approach are not commonly shared. Example, People substitute leading for directing. It claims universality or management principles while management differs from organization to organization and from level to level. Operational Approach emphasizes static conditions whereas the organizations have to function in dynamic conditions.

SUMMARY

Every organization applies management approaches that rest on a theoretical understanding of management principles. To understand the principles of management, it is important to understand the concept of an organization and its various sub-systems.
29

The history of management can be traced back to the mid-1700s, that is, the period when the Industrial Revolution took place in Europe. With the gradual expansion of industrial activities and cross-border business, management principles and practices have become more important to coordinate individual efforts and translate the same to group efforts. Management is a dynamic process to get things done through and with the efforts of people. In this competitive world, management as a process helps in optimizing scarce resources (all the inputs required to achieve the intended goals and objectives of the organization). Management functions can also be described as a process, that is, related activities like planning, organizing, staffing, leading, coordinating, and controlling. Management theories can be discussed from three perspectives: classical, neo-classical, and modern. Some important management practices that are a part of the contemporary school of management thought are McKinsey's 7-S framework and theory Z concepts. There are three main roles of managers, namely, the interpersonal, informational, and decisional role. Different managerial skills and competencies are required to perform such roles.

KEY TERMS Classical approach: The classical approach to management has conventionally implied traditionally accepted views. This approach emphasizes organizational efficiency to increase organizational success. It believes in functional interrelationships, following of certain principles based on experience, bureaucratic structure, and a rewardpunishment nexus. Control: The possibility of actions deviating from the plan necessitates constant observation of actual performance so that appropriate steps may be taken to ensure conformance. Thus, control involves compelling events to conform to plans. Coordination: Coordination deals with harmonizing work relations and efforts at all levels for some common purpose. It may be described as the process of unifying individual efforts for the purpose of accomplishing group goals. The whole idea of coordination is to adjust, reconcile, and synchronize individual efforts, so that group efforts become more effective and common objectives are met.
30

Human-relations orientation: This concept was pioneered by Lawrence A. Appley and Harold Koontz. Their definitions of management primarily emphasize people and the relationships among people as the focus of management. Management: Management is the optimization of constraining resources to achieve intended goals. Managerial competencies: Competencies are a set of behaviors that encompass skills, knowledge, abilities, and attributes. Competencies need to be assessed at the organizational level as well as the individual level. Individual competencies together reinforce organizational competencies. Managerial role: Managerial roles denote position-specific behavioral patterns of managers. Mintzberg identified ten roles of managers, classifying them into three broad roles: interpersonal, informational, and decisional. Modern management approach: The modern management approach combines concepts of the classical approach with the modern management social and natural sciences. It emerged from systems analysis. Neo-classical approach: The neo-classical approach emphasizes human relations, that is, the importance of the person behind the machine, individual as well as group relationships, social aspects, etc. Organizing: Organizing is the second function of management. It is the structuring of functions and duties to be performed by a group of people for the purpose of attaining enterprise objectives. The functions and activities of the enterprise depend upon the objectives to be accomplished and are also directed towards fulfillment of such objectives. This necessitates establishment of activityauthority relations throughout the enterprise. Planning: Planning is the first function of management. It is deciding in advance what is to be done, how it is to be done, and when it is to be done. It involves projecting the future course of action for the business as a whole and also for different sections within it. Process orientation: This concept views management as a process. Lundy, McFarland, Carlisle, Brech, Trewatha, Newport, and Terry are proponents of this concept.

31

Theory Z: Theory Z concepts, pioneered by Ouchi and Jaeger, incorporate elements of Japanese and American management culture, and emphasize the need to study and adopt appropriate management practices from other countries.

REFERENCES Fayol, Henri (1949). General and Industrial Management.Translated from the French edition by Constance Storrs. London: Pitman. Koontz, H. (1961). The Management Theory Jungle, Academy of Management Journal, 4(3): pp. 174188. Mayo, Elton (1933). The Human Problems of an Industrial Civilization. New York: Macmillan. McGregor, Douglas (1960). The Human Side of Enterprise, annotated ed. New York: McGraw-Hill. Mintzberg, H. (1979). The Structure of Organizations. Englewood Cliffs, NJ: Prentice Hall. Ouchi, W. G. and A. M. Jaeger (1978). Type Z Organization: Stability in the Midst of Mobility, Academy of Management Review, April, pp. 305314. Schein, E. (1968). Organizational Socialization and the Profession of Management. Industrial Management Review, 1968 vol. 9 pp. 1-15 in Newstrom, J. & Davis, K. (1993). Organization Behavior: Human Behavior at Work. New York: McGraw-Hill. Taylor, Frederick Winslow (1903). Shop Management. New York: American Society of Mechanical Engineers.(1911). The Principles of Scientific Management. New York: Harper & Brothers. http://www.mindtools.com/pages/article/management-roles.htm http://managementlearningcenter.blogspot.com/2012/09/modern-managementtheory-in-principle.html
32

http://managementlearningcenter.blogspot.com/2012/08/class-notes-on-neoclassical-theory.html http://www.business-management-courses.com/2012/01/contingency-approach-tobusiness.html

33