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46 views65 pagesMPOB Chapter 1-3
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© © All Rights Reserved
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Consens
PART—A: MANAGEMENT PROCESS,
1% ManagementasaProcess 4’ y)
1.2.1 Management as a Discipline y 7
12.2, Management asa Group 8
4.3) Nature and Characteristics of Management 8
1.3.1 Objectives of Management 10
1A Importance of Management u
15 Management and Administration 12
16 Management as A Science “4
L7 Management as an Art or Practice 16
18 Management asa Profession w
2
1.9 Emerging Challenges of Management
“21 The Process of Management 1
211,d> Interrelationship between Management Functions 2
2, Managerial Functions 38
Coordination—The Essence of Managing 6
es of Managers 0
els of Management “4
fanagerial Skills 16
‘Skill Requirement at Different Management Levels
Teen k is
‘81, Approaches to Management
, Classical Theory
33, Neo-classical or Human Relations Theory
ph Behavioural Science Approach
‘$5. Systems Approach
36 Contingency Approach
- (ix) (43 (48 Aypes of Planning
ea Levels of Planning
482 Focus of Planning
Range or Time Span of Planning
4 Formal and Informal Planning
Process of Planning
441 Essential Requirements
45 Derivative Plans
46 Barriers to Effective Planning i
Planning
48.1 Measures to Overcome Limitations of
Key Principles of Planning
[Management by Objectives (MBO)
sps in Management by Objectives
49 Business Forecasting
4.9.1 Stepsin Forecasting
49.2 Techniques of Forecasting
of an Effective Plan
RPBNEERHESSamane avr
ncept and Nature of Decision-Making
Significance of Decision-Making sate DIOL
Process of Decision-Making Yak 0
tionality in Decision-Making Qyp yd
Saaer
cchniques of Decision-Making
6.1 Organising : Process and Significance
62 Formal and Informal Organisation
63 Organisation Structure
63,1 Considerations in Designing an Organisation Structure
Principles of Organisation
/Span of Control
Scalar Chain
617 Traditional Types of organisation
$7.1 Line Organisation
BERR eooaL (xt)
672 Line and Staff Organisation
678 Functional Organisation
67 Nature and Patterns of Departmentation
67.1 Departmentation by Function
67.2 Product based Structure
678 Geographical or Territory based Structure
7.4 Customer based Structure
67.5 Project Organisation
6.7.6 Matrix Structure
67.7 Network Organisation
BBSSSRRERS
7.1 Authority and Power
72 Conceptand Elements of Delegation
73 Significance of Delegation
7A Problems or Obstacles in Delegation
75 Securing Effective Delegation of Authority
75, Principles of Delegation of Authority
7.6 Decentralisation of Authority
2
4
a
8
10
10
2
1 Concept and Nature of Staffing
82 Importance of Staffing
83 Steps or Elements in Staffing
84 Manpower/Human Resource Planning
85 Recruitment
86 Selection
91 Concept and Nature of Motivation
9.1.1. Need and Significance of Motivation
oo of Motivation
(63 Masiow’s Need Hierarchy Model
94_Herzberg’s Motivation-Hygiene Model
[eGregor’s ‘Theory X’ and ‘theory Y’
38 Ouchi’s Theory Z CHAPTER 1 —
is
jf Concept, Nature and Process
of Management
ewe
.
Management as 2 Process
1m Management as 2 Discipline
sw Management as a Group
a Nature and Characteristics of Management.
a Management and Administration
= Importance of Management
= Management as a Science
ia Management as an Art or Practice
a Management as a Profession
= Emerging Challenges of Management Se
Introduction
“An organisation is commonly viewed asa group of people contributing their efforts
towards certzin common objectives. The process by which organisational objectives
are achieved is called ‘management. Thus, management is an essential element of any
organisation which may be a busines firm, school, college, club, charitable trust or
cven a religious organisation. Managing requires planning of activities, organising of
resources, creating communication system, motivation of people and controlling of
various activities to attain the organisational objectives. This chaprer is a modest attempt
tocxplan the meaning, importance and nature of management and highlight the basic
functions of management. ee
4 “CONCEPT, NATURE AND PROCESS OF MANAGEMENT
ly
wae MEANING OF MANAGEMENT _
Traditional View of Management oe
Trai Traditionally, management is defined as an art of getting things done through,
ethers. The person who directs the efforts of others is known as ‘Manager’. He or she
accomplishes the goals of the organisation through and with the help of operative
employees,
Traditional Concept : Art of Getting Things Done
“Management is the art of getting things done through people." —
St —Mary Parker Foltett
“Management consists of getting things done through others... Amanager is one who
accomplishes organisational objectives by dtecing te etre of etter,
CS. George
The traditional viewpoint about management is considered inappropriate in
the present-day environment where workers are educated and have higher levels of
aspiration. It has been criticized on the following grounds:
(9 Tedoes not give the functions which a manager has to perform to get results
from others.
(9 It gives the impression of the manipulative character of the practice of
management.
Gi) The employees are merely treated as means for getting results. In other
words, theit position is like a cog in the wheel
(G2) The needs of the workers have been ignored, The workers ae supposed to
work like machines.
Modern Definition of Management
and eficiently. In other words, management involves planning, organising; staffing,
directing and controlling the activities ofthe enterprise for the efcient ucicnion ef
Fesources to achieve organisational goals,
Definitions of Management
enargment isthe Brocess of working with and through others to effectively achiove
GrGanisalional objectives by efficiently utilising the limited resources Tsk changing
environment.”
—Kreltner
{}danagement entails the utilisation of human efforts and ‘material resources towards
the achievement of organisational objectives.” —B.M. Richman
(Management is a distinct process consisting of planning, organising, actuatin,
(Girecting) and controlling, performed to determine and ‘accamplis the stated
objectives with the use of human beings and other resources *
—George R. Terry “GONGEPT, NATURE AND PROCESS OF MANAGEMENT 1.5
‘According to Koontz and Weihrich, “Management is the process of designing
and maintaining an environment in which individuals, working together in groups,
offend accomplish selected aims or goa.” Weak of management inthe context of
PUNNNG
ORGANISING
oe BBD coonowanion
DIRECTING
‘=~ CONTROLLING
Fi, 22, Coordination: The Essence of Managing
In order to achiev co-ordination among the subordinates and sub
Banegement pos it fnctions. Coordination is required in every
‘management 2s discussed below :
(9 Coordination though Planning, Plans of different departments ae
be properly coordinaed, otherwise the objectives ofthe organisation will not be
complied, Planning ado formulationofbudges, polices and procedures which
‘also tools of coordination,
(G) Coordination through Organising. Coordination i equally important in
‘organising, All acvities required to achieve the desired objectives must be properly
frouped and asigned to the right people,
(ii) Coordination through Staffing, In staffing, a balance must be attained
passa ob equens andthe quai ofthe pesona win ae paclo ce
jobs. Manpower planning san important tool of coordination,
(@) Coordination through Direction, The dtecon function of management
#8 an atempr in achieving coordination, Supervision, ‘motivation, leadership and
‘Communication are designed to secure unit of action ina £70up. Coordination is also
its, the
inction of "~~" i ~
gan GERIAL FUNCTIONS, ROLES AND SKILLS ae
Mee, coordination is the silken thread running trough the entre P orca
Thu rd
voment, That i why, iis called the essence of management.
mand aflade
passion vere” Coordination and Cooperation
e peed
apt of coordination is broader than that of cooperation. Coordination is
The cone
rent of gr0UP efforts to provide units of action in the pursuit of common
9 ranger bringing together th
ayective ic means bringing together the efforts of different components of the
object
organs
collect
a patti
s.
tio
ive ¢!
cular purP
nin order £0 give them a unity of purpose. But cooperation denotes the
forts by the people working in the organisation voluntarily to accomplish
ose
table 2.1 : Coordination vs. Cooperation
‘Coordination
rnisa deliberate effort by | Cooperation is voluntary attitude of
Goordinatio' ee
cee ager co csute pochtoniaton organisational members to contribute
of various grganisational activities. | co organisational objectives
Goordinarion is an ‘orderly | Cooperation denotes collective effort:
Coatement of 00D efforts t0 | ofthe group members who contributed
mr ipyofarioninthe pursuit | volun to acomplsh 4 paricular
Preommon objectives objective.
‘Cooperation is voluntary in nacure. Ie
Coordination is essential where 2
arises out of the desire of the people to
rk together for a
of people wo
on? on purpose: work together.
Trorinaion bated on both formal ‘Cooperation arises out of informal
Cont onal elton relations.
Cooperation without coordination is
fruitless, Cooperation alone may lead
to imbalanced operations.
Coordination seeks whole:
ned support of employees an
Feparements which wil definitely
Srprove the results of the business
among the members ofa group facilitates coordination.
jnate om the voluntary efforts of the group
“he conscious efforts of the management. For instant
penons engaged in pushing a eal out of mud have a strong attitude of coo
pehey may no be sucesful uales one of them provides leadership and
arenes of al In the same manner, the orchestra conductor coordinaes
ffahe members of his group to produce finite music, In short,
‘ordination bas no fruit and coordination without cooperation bas
‘nd coordination go hand-in-hand and one is the stepping stone
manager tries to achieve both because only through cooperat
can get things done through others.
But coordit
Ichas to be achieved by 210 -
niques of Effective Coordination '
ote following steps should be taken for achieving effective din.
(}) Clearly Defined Goals : The goals of the enterprise sho, cy
dea Every individ in the enterprise should Under
abjetives and the contbutin by hs job to these o jee the
purpose is a mus for achieving proper coordination, ss,
(i) Clea Line of Authority and Responsibly: Ther lin i
in every enterprise which indicates as to who is Accountable gg tt
line of authority and responstiliy shouldbe clery ne a
ceorinaton, Cleat authority elatonships hep dice Oe
among different positions (particulary lin and staff) Which ig mh og
sound coordination, ‘seni 4
(ii) Precise and Comprehensive Programmes and Policies ‘tat
well-defined programmes and police is another Measure for "8 dy,
effective coordination, Ths brings uniformity of action because ic
understand the programmes and polices in the same sense, Hh
{s) Cooperation : Coordination must be accompanied by coopers
individualsin the organisation mustbewilingto help cach other yah
Cooperation can be bough about by keeping hamonic cs
among the people inthe organisation by encouraging informal con
to supplement formal communication end ung commie for caches
ofideas and views a the top level %
(0) Effecive Communication ; ect
ve communication is the key tp 2
poo. The chanel ofcommunicaion edn heen ie
terclatlesthatheyar able create proper understanding a
of the receivers. Personal contacts should be encouraged as it is the Moy
ve means of communication for achieving coordination,
(ci) Effective Leadership and Supervision : Management can achieve
coordination through effective leadership and supervision Effectng
osu cordon both the plamingand the implems
sage. Hfectve supervision is necessary o guide the activities of individusk
in the proper direction,
2.4 __ROLES OF MANAGERS
al
Who is a Manager?
A manager isa person whe performs the functions af penning, organising, sang
directing sand cnirlling for he acmplishmen of he objective of en sndertaking, Since
4 managet performs the manag functions, he isa member ofthe management of
the ongaisation, Used in his ese, management includes al oe who manage the
affairs of an organisation, Every
and their implementation for the sat
Achievement of organisational objectives. He guides
the human resoureesin the efeive use of materials machines and technology. of the managers are asfol
recommon fo most
hrieving coordinatio
ff cheir time in acl
he characteristics that a
amajor portion o
-human resources.
2, Managers do much work 3¢ 2” unrelenting pace- ;
3, Managerial easks ar¢ characterised by brevity, varie ‘and fragmentation.
‘4, Managers prefer live action—brief, specific ‘well-defined activities that are
cursent, non-routine, and non-reflective.
5, Managers prefer oral 10 written communication.
6, Managers main!
mber of contacts, Spe”
subordinates, linl
Some oft!
1, Managers spend
human and fo"
tain a vast nul ding mose time with
ing them with superiors and thers in a complex network.
involves certain functions. While
It has already bee
performing these functions a merase has to pay multiple roles. role consists of the
Pehaviour pacers displayed by 2 manager ie a an organisation ora functional unit.
Henry Mintaberg conducted a “omprehensive survey on the subject ‘of managerial roles
$f five practising chief executives.
wae aegrated bis ndings withthe results of a study of
* all levels from foremen to chief
ai dented ren basic oles performed by manaBe
eccutives and classified them under three poise (1) interpersonal, (2) informational,
“These roles describe whas managers actually
nd (3) decisional as shown in Table 2.2.
id, whereas functions of managers had historically described what managers should
BCA brief description ofthe managerial roles i given below.
Table 2.2 : Roles of Managers
INTERPERSONAL ROLES
Figurehead Leader
Performs symbolic dties | Motivates, inspires, sels 2% Maintains relationship with
: bests Porous utes | example, legitmizes tne pow- | other organizations, ae
‘speeches, Serves 0° ers of subordinates. ern-ments, industry groups.
etc.
committees.
INFORMATIONAL ROLES
‘Types of Roles
n observed that managing, i
‘Monitor
ao
‘Observes, collects and ‘Transmits informatic izatior
7 tionand | Si zat
Griows data on the meeting | judgements about internal eee potas .
of standards. Notes compli- i
ofa mpi: | and external environments. | gages in public relations.
DECISIONAL ROLES:
Tnilates changes. [Handles confi
: ies conficts and
‘Authorizes
cote ome congas canis schedules and wivaaiisarel
aise ara actions of competitors. | promotions. Sets | to-m with cus
priorities. Baace ee
Source: Ada
pled from Mintaberg 1," 5
Gulyaug, 1973), pp. 8058. “The Managers Job : Folklore and Fact, Harvont Buses Rese 212
Interpersonal Roles
i rn
Thefirstsctof behaviour conce
Fgurehead,Ercuive manages perform a number of tenon a
() Fig thee firm at public affairs and overseeing official functions, x
as representing ial duties as well, pethaps ona lesser scale, including an ly
and hosting customers, ny
TIANAGERIAL FUNCTIONS, OE
Say
interpersonal roles, which include the bi
naages hae ceremonial dis
employe’ weg, rnting Vso
(i Lender This encompass a ange of dis Suggested eal jn
fai kt haviour, and encouraging acy.
sian workers, guiding work-related bel BING activity ‘e
halp achieve organisational objectives,
(i) non, Manages id themes acing 2 ison between roy
indus which ae par of or ome in conic with, an organisation, The
seinpanforsalsing cons wih appl, ordnating activites
workgroups and encouraging harmony needed toasure effective performance,
Informational Roles
As the rerm impli, informational oes ateconemed with communi
among india and groups, but managers must also be sll in gthering yg
using information to help mk efeie decisions, More important, they should,
abe communiatos who cn tansnitinfrmainandanalate decisions, Min
thee informational roles ae as follows:
() Monitor. Managers monitor activi, solicit information, gather data, ang
observe behaviour Wel-informed managers are prepared for decision-making and cay
redirect behavior to improve organisational performance.
( Disseminator, Here communications are reversed. Rather than receive
information, managers transmit information. Obviously, ths isa crucial aspect of
‘management. Subordinates, superiors and managers of similar work groups rely on
timely information disseminated with carry.
(iti) Spokesperson. Top executives find themselves more involved as
spokespersons than lower-level managers. A firm's policy on competition
its philosophy of customer care, and its commitment to safety are topics
‘Common in executive speeches. However, managers aall levels ate spokespersons who
say be called upon to represent their groups. For example, when department heads
‘meet to discuss operating budgets, they must be prepared to present information and
support budget requests ofcheir respective departments,
Decisional Roles
: or ‘identified four roles within the lsc of his behavioural sets. These art
as follows: INCTIONS, ROLES AN
MANAGERIAL
(p Bntrepreneut.
Tm recent years, entrepreneurs have bee &
commitment to innovation. Managers in complex organisations act in erect
way, by constantly eying £0 improve their operations. They seck new Ways of using
resources, new technologies for vaahanced performance, and new systems ‘organising
human resources.
(G9 Disturbance Handler. Historically this may be the best understood role of
ve always had the primary responsiblity for resolving problems.
fal role as managers seem o find themselves constantly faced
armony and effectiveness of their organisations.
role links planning and organising functions.
verives and distribure resources according):
or manpower to accomplish
managers because they ha
emay also be the most sre
swith disturbances that threaten the h
(iii) Resource Allocator. The third
Managers must plan to meet their oj
‘There will never be sufficient time, money, materials,
all chat is expected, 50 resource allocation often involves carefully assigning scarce
resources.
(jo) Negotiator. The allocation, process bears on the role of negotiator. When
uirees must be shared among many operating units, managers with superior
Is will have advantages over others. However, negotiating extends to
al activities both inside and outside the firm. Purchase manage for
‘example, negotiates material prices and cerms. Personnel manager negotiates union
contacts. Negotiation, of course, docs not mean conflict bur it does imply face to
d employees to resolve problems or formulate
scarce resol
negotiating skill
many manageri
face bargaining berween managers an
performance expectations
the managerial roles shows that managers must change hat
The above description of
frequently and must be alereo the particular role needed ata given time. The ability
to recognize the appropriate role to be played and to change oles readily is mark of
aa affeeive manager, However, it may be concluded that atthe lower level, some of
‘he decsional roles and informational roles are more important whereas at the top level
interpersonal roles and decisional roles are of greater significance. At the middle level
of management, informational roles are found to be more common.
Reconciliation of Managerial Roles and Functions
"—Minaber role approach descibes ‘wha manage and provides important
insights into the problems and issues involved in managing. The functional
approach, on the other hand, provides the general framework for analysing the job ofa
manage Ie prescribes what manages sou do, Theo nd fanetional proses
acco eof elt Thea different but related ways of analysing
the job of a manager ‘The relationship. b aan
ee emp bewern the wo apres as ben 212
Roles :
= : se "; dour concerns interpersonal roles, which include the fo
is set of beha .
5 erform a number oF ceremon;
Executive managers p number o aaa
Oem axpublicfrs and oveiceing ofc functions, +
ee herccermonial duties aswell, pethaps on lesser scale, including at
aren ssitors, and hosting customers Batten
sloyces weddings greeting vistors, and hosting ;
ga Landes Tie ese RT ERNS CANT A Sioa eile ng
: ae works ung worked betaviou and encouraging arg
os ; work ;
help achieve organisational objectives. t
(Utes. Managen Sod themes acting 3 lion between gay
indies which repr of or come in contact with, af organisation, Sy : ay
roeis importa: for establishing contacts with suppliers, coordinating act iy
vwock groups, and encouraging harmony needed to assure effective performance
Informational Roles
MANAGERIAL FUNCTIONS, ROLRS aS
SKj
Vities a
As the term implies, informational roles ate concerned with 6,
among individuals and groups, but managers must also be skilled in gathering at
Sing information to help make effective decisions. More important, they should ie
able communicators who can transmit information and articulate decisions, Miner
three informational roles are as follows :
( Monitor. Managers monitor activity, solicit information,
‘observe behaviour. Well-informed managers are prepared for decisi
redirect behaviour to improve organisational performance.
(G) Disseminator. Here communications are reversed. Rather than receive
information, managers transmit information, Obviously, this is a crucial aspect of
management. Subordinates, superiors and managers of similar work groups rely on
‘Umely information disseminated with clarity. = ~ :
(#9 Spokesperson. Top
spokesperson:
TAMUnictig
gather data, ang
ion-making and can
executives find themselves more involved as
# than lower-level managers. A firm's policy on competition,
its philosophy of customer care, and its commitment ts safety are topics
‘Common in executive speeches, However, managets at all levels a
may be called upon to represent their Sroups: For example, when department heads
meet to discuss operating budgets, they must be Prepared to present information and
‘support budget requests of thei respective departments,
Decisional Roles
Minczberg identified four roles within the list of his behavioural sets. These att
as follows:
re spokespersons who 213
{MANAGERIAL FUNCT! =
(A Entteprenew In recent years, entrepreneurs bas 4 wi if
mitment to innovation. Managers in complex organisations act in entrepreneur
ree their operations: They seek new #2) of using
and new syscems of organising
have been identified
com
way, by constantly trying to imp!
resources, new technologies FOF enhanced performance,
man fes0urces.
¥ (i Disturbance Handler Historically, this may be the best understood os of
managers because hey have lays had the primary responsibility for esolving probl “4
ey also be the mest tesla MANGES SS to find themselves constantly
a ‘ “ Paes
sith disturbances cat threaten the harmony and effectiveness oftheir organisations.
ganising functions.
(i) Resource Allocator. The third ole finks planning and 0 ‘
heir objectives and distribute resources accordingly.
vaaterals, or manpower co accomplish
ives carefully assigning scarce
Managers must plan to meet
‘There will never be suficent time, moneys
all cha is expected, so resource allocation often invol
resources.
(Go) Negotiator. The allocation process beats on the role of negotiator. When
searce resources must be shared among many operating units, managers with superior
pepodating skills will have advantages ove others. However, negotiating extends 10
vrany managerial activites both inside and ‘outside the firm. Purchase manager, for
‘example, negotiates material prices and terms: Personnel manager negotiates union
contracts. Negotiation, of course, does not mean conflice but it does imply face to
face bargaining becween managers and employees resolve problems or formulate
performance expectations.
“The above description ofthe managerial roles shows that manages mist ‘change hats
frequently and must be alert ro the particular role needed at a given time. The ability
to recognize the appropriate role be played and ro change roles readily is a mark of
an effective manager. However, it may be concluded that at the lower level, some of
“he decisional roles and informational roles are more important whereas at the top level:
interpersonal roles and decisional roles are of greater significance, At the middle level
of management, informational roles are found to be more common.
Reconciliation of Managerial Roles and Functions
-Mintaberg’ roles approach describes ‘what managers do and provides imporane
insights into the problems and issues involved in managing. The functional
approach, onthe other hand, provides the general framework for analysing the job ofa
manager. Ie prescribes what managers should do. The roles and functional approaches
are two sides of the same coin, They are two different but relared ways of analysing
the a of a manager. The relationship berween the two approaches has been shown.
in Fig. 2.3. a 214 MANAGERIAL FUNCTIONS, ROLES AND Skittg
Managerial Roles. Managerial Functions
Interpersonal O Planning
roles CO Organising
© Informational | :
a DEVELOPM AGEMENT Hobe
7 ui
{(vi) Systems Approach
\ Agystem is composed of elements or subsystems that are related and depen
‘oneach other. The system approach is based on the generalisation that an ibe dey
isa system and its components are inter related and a
emphasis on the strategic parts of the system, the nature of their tnterdependency
set by the system and communication network in the system. Another basic featun |
the stems approach is that attention is paid towards the overall effectiveness ee
e
system rather than the effectiveness of subsystems, Under system approach, the geet
objectives and performance of the organisation are taken into account and
Rot only the
objectives and performance of its different departments or subsystems. |
‘The spiritual father of this school of management was Chester I. B,
; arnard. The
systems theory ays emphasis on the interdependency and interrelationshipS berg, ci
atlous parts ofaeysterh. It stresses Conimtnication and decision, Processes throughout th i
organisation. it follows an apen.gstemapproach-The organisation asan open system hig
an interaction with the enyironment. It can adjust to the changes in t
(Gia Contingency Approach
The latest approach to management is known as ‘contin
agency’ or ‘situational’
approach. Underlying idea of this approach is that the internal fanctioning-pf
organisations must be consistent with the demands of technology. and externa
environment and the needs of its members if ae
approach suggests that shere is no one best way to handle. any management problem,
The application of management principles and practices should be con
tingent upon
the existing circumstances. Functional, behavioural, quantitative and systems tools ot
management applied situationally” ert
There are three major parts ofthe overall conceptual framework for contingency
management: (4) environment; (if) management concepts, principles and techniques; and
id contingent relationship between the two. The environment vatiables are independent
and management variables (process, quantitative, behavioural and systéms tools) are
dependent. Every manager has to ppl the various approachesof manggementaccording
to the demands of the situation——— ;
(vif) Operational Approach
Koontz and O'Donnel have advocated operational approach ro. management.
This approach recognises that cher is a central core of knowledge about managing
which exists in management such a line and staff, patterns of departmentation, spa
of management, managerial appraisal and various managerial control techniques. It
draws from other fields of knowledge and adapts within ic those parts of these fields
which ase specially useful for managers.
“The operational approach regards management as a universally applicable body
of knowledge that can be brought to beat at al levels of managing and in all (ype
of enterprises. At the same time, this approach recognises tha the actual problems
managers face and the environments in which they operate may vary between enterprises
he environment BEVELOPMENT OF MANAGEMEN
ce by a perceptive practitioner must take this into
“nd levels. The application of scien
acount in finding solutions fo man
(Gx) Empirical Approach
‘According to this approach,
agement problems.
study of the experiences of
rs aledge based on experiences of succesful manaBe™ be applied
fy other managers in solving problems in fucure and in making decisions. Thus, the
empirical school isbased on analysis ofpast experienceand usesthe case method of suudy
aint esearch, Managerscan getanidea of what 0 ido and how by studying management
‘tuations of the past. They can develop analytical and problem-solving skills. They can
sersand and lear co apply effecive rechniques in comparable situations.
No one can deny the value of analysing past experience 0 obrain a lesson for the
farure, But management, unlike Law, is nota science based on precedent, and furure
sesarions exactly resembling those of the past are unlikely to occur. Indeed, there is
4 postive danger in relying roo much on Past experience for the simple reason that 2
technique found “tight” in the past may be far from an exact fic fora somewhat similar
situation of the future.
3.2 _ CLASSICAL THEORY
cal approach is one of the oldest approaches 10 and is
sso Known by various names such as Management Process Approach ‘and Administrative
‘Management Approach, Ie concentrates on organisation structure and fancti
principles of management, The classical writers in Gallick,
“Uriel, Mooney and Reiley and others. Th laced emphasis on work planning; the
technical requirements, principles of man: a a Formal nracrare and theassumprion
dF rational and logi i
The classical theory in jewpoints : (i) Taylor's Sciensific
management is the
managers. The
Mansgemane, Fol Adminis hear ad i) Weber’ Breet REE ESS
concentrated ‘on structure and that is why their approach sometimes is ‘characterized as
‘Sructaral Famework of organisation,’ EW. Taylor insisted ron application of scientihic
methods to the problems of manageme
nethods tothe problems of management. Henri Fayol suggested fourteen principles of
called bureaucracy. Ic is characterized by divisi = feation eae
Suan an eens yy division of labour, specialization, rationality,
‘Scientific {one s
Management 9.
(FW. Taylor) tena!
Fig. 4.4. Approaches In Classlel Theory. ue:
‘management and their universal application. Max Weber introduced rational structure Bi
oe
; 3 DEVELOPMENT OF MANAGEMENT THOUS
Guatribatons of Gana Theory, . q@aonsise¥6 ncinolgue ap aay
Contributtons of Classical Theory
, The main features of I theory are as under :
f ry @ () The classical theory concentrated on the study of formal OtBANisation
laid emphasis on division of labour, specialization, structure, scala, chal
functional processes and span of control. i,
fi) Management is the study of managerial experiences. Ifthe ex
studied and certain generalizations are derived therefrom,
the practising managers. >
(2) The classical theorists emphasised organisation structure for
of various a
Petiencey
these with net
coordinaty
ies. They ignored the role of human element, "
(i) The relationship berween workers and managements established th,
formal communications, defined tasks and accountability and formal; sh
procedures and practices to minimise conflict between them, oa
i) ‘The worker is essentially an ‘economic man’ who can be motivated basi
by economic rewards. Money is considered the main motivator unde, thig
theory.
Ore efficiency of the organisation can be increased by making each
individual efficient. :
Or integration of the organisation is achieved through the authority ang
ontwol of the central mechanism. Thus, itis based on centralisation
authority.
oO There is no conflict between the individuals and the organisation, In ug
of any conflict, the interests of the organisation should prevail. :
(oil) The classical school is based on the study of past managerial experience
and cases of various organisations. It implies that formal education and
taining is required for developing managers.
‘Criticism of Classical Theory
‘The classical theory has been criticized on the following grounds : nag
() @ Theclassical approach ignored the human relations aspect and undetmined
the role of human factor. Its main emphasis was on formal structure,
fr] we of authority, unity of command and narrow span of control,
@ i
Teviewed organisation as a closed system, i-e., having no interaction with
the external environment
(ii
i) nomic rewards were assumed as the main motivator of workforce. The
role of non-monetary factors was ignosed. — ‘
The classical principles are based on managerial experiences and theit
ae ;
¢ classical approach is based on over-simplified assumptions.
Its prin-
—Aiples ate ambiguous and contradictory. —————__™O™”--—”———( ;; ea
DEVELOPMENT OF WANAGEMENT THOUGHT 3.7.
fi} Jrhis school emphasized on strict cdherenee to rules and sgulations. The
dividual initiative is chus fimited.
id emphasis on the universality of management
management principle cant be applied blindly,
it the situation.
scope for in
(oid) Classical writers lai
“principles. Butin practice,
they may need modifications to su
3, NEO-CLASSICAL OR HUMAN | RELATIONS THEORY
“he clasical theory concentrated on formal organisation and ignored the ‘human
«The neo-lassical or human relations approach was proposed asa reaction tothe
ch which ignored human relations. The neo-classicists focussed on the
human aspect ofindustty. They modified che ‘dassical theory by emphasizing the fact
wha organisatTon sa social system and the humae factoris the mostimportant clement
‘win it, They conducted some experiments (known as Hawthorne Experiments)
wd investigated informal groups, informal relationships, patterns of communication,
ent of human relations
factor
classical approa
patterns ofj ership, ete. Tis led to the developm ns
approach sense cocognized-a the father ofthe Homan Resor
ee ol, Other prominent contributors to this school include Roethlisberger, Dickson,
Dewey, Lewin, ete
Contributions of Human Relations or Neo-classical Theory
“The salient feaurés of neo-classical approach areas under:
(0 Séci | Organisation in general sa social system ‘composed of numerous
iateracting parts, The social system ‘defines indiyidual roles and establis
ini iffer from those ofthe formal organisation. The workers follow a social norm
“Fegermined by their co-workers, which defines the pro work rather than
‘uying co achieve the targets management thinks they can achieve, even though this
would have helped them to earn.as much as they. physicallyean. es
(i Social Environment. The social envirot je =
and is also affected by shem, Management not the only variable.
(df nformal Organisation, The informal organisation docs also exist within the
framework of formal organisation and itaffectsand is h isati
i Ke co Dynamics. At the workplace, the workers often do not act oF react
as individuals but as members of groups. A person who resists pressure to change his
behaviour as an individual often ae puis ae ifde gr Sener
member changes its behaviour. The group plays an i in determining
Situs and performance of indi Patras Me = i
af ‘ eee There is an emergence of informalleadership-as-against-formal
leadership and that sets and enforces group norms. He helps th fanctior
a.a sotial group and the formal leader is rendered inset ie Se ehes i
the norms of the group of which he is supposed to be incharge. = neces information downward is
Bahisati
transmits upwand the feelings and sentiments of people who work he or; Bag i
: ——
(ed Role of Money: Moneys oly one ofthe motiators, But ok the
motivator of human behaviour. Man is diversely motivated and S0ci0-Psychola, a
factors act as important motivators,
(eid Confit. Theres aways a confit berveen organisational and indy a
goals, For the smooth functioning of the organisation, iis neces) 10 achieye 4
itso even the ul ofthe onaisron and those of then, “SO
Criticism of Nco-classical Theory
The nco-