MAJOR APPROACHES TO MANAGEMENT

1) Scientific Management:
Definition:
Scientific Management is an approach to designing jobs and
supervising workers which emphasizes the division of labor, the removal of
worker discretion and the right of management to make what changes it thinks
are necessary for efficient working.
Introduction:
Scientific management main objective is improving economic
efficiency especially labor productivity. It was one of the earliest attempts to
apply science to the engineering of processes and to management. Scientific
management is sometimes known as Taylorism after its founder. The two most
important contributors to scientific management theory were Frederick
W.Taylor and the husband-wife team of Frank and Lillian Gilbreth.
Important key points:
There are four main points or principles of
scientific management:

First. They develop a science for each element of a man’s

work, which replaces the old rule-of” thumb method.
 Second. They scientifically select and then train, teach, and
develop the workman, whereas in the past he chose his own
work and trained himself as best he could.

Third. They heartily cooperate with the men so as to insure

all of the work being done in accordance with the principles of
the science which has been developed.

Fourth. There is an almost equal division of the work and

the responsibility between the management and the workmen.
The management take over all work for which they are better
fitted than the workmen, while in the past almost all of the
work and the greater part of the responsibility were thrown
upon the men.

Roles:
Though the scientific theory of management provided tools for
workers to enhance their output and efficiency, employees did only menial
work and hence the theory criticism of the classical theory of management
faced critics for developing an assembly-line atmosphere. With this as a reason,
the theory was fallen out of favor by various companies but is still considered
as a valuable tool in many companies for its principles.
Advantages of scientific management theory:
1) enhanced production
2) ability to control
3) decreased inaccuracy
4) decreased autocracy
5) cost of production is reduced
6) pay system
7) quick decision making
8) benefit to customers
9) best use of resources and development
10) less production time
11) efficiency increased
12) worker instructions
13) good working conditions
14) beneficial to nation
Theorems:
There are basic six theorems of scientific management:
1. The primary goal of labor and thought is efficiency.
2. Technical calculation in all respects is superior to human judgment.
3. Human judgment cannot be trusted because it is plagued by laxity, ambiguity,
and unnecessary complexity.
4. Subjectivity is an obstacle to clear thinking.
5. What cannot be measured either does not exist or is of no value.
6. The affairs of citizens are best guided and conducted by experts.

Scope of Scientific Management:

Initially, the techniques of scientific management were used in engineering
undertakings. This was owing to the fact the F.W. Taylor, its inventor, was
concerned with such industries. But later on this technique of management
attracted the attention of other business establishments as well.

Now- a-days, principles of scientific management can be applied to all types of

institutions, where men and materials are to be managed efficiently. The
techniques of scientific management can be usefully employed by all economic
and social organizations.

We can conclude that the scope of scientific management is very wide and that is
why Taylor himself emphasized that “the same principle can be applied with equal
force to all social activities to the management of our homes; the management of
the business of our tradesmen, large and small, of our churches, of our
philanthropic institutions, our Universities and our Governmental departments.”

2) General Administration Theory:

Definition:
General Administrative management theory attempts to find a rational
way to design an organization as a whole. The theory generally calls for a
formalized administrative structure, a clear division of labor, and delegation of
power and authority to administrators relevant to their areas of responsibilities.
Introduction:
Henri Fayol was the initiator of general administrative theory
developed fourteen principles of management that can be applied to all
organizational situations. Then max weber came and he developed a theory of
authority, structures and relations based on an ideal type of organization he
called bureaucracy. General administrative theory focused more on what,
managers do and what constituted good management practice.
Roles:
.The administrative theory consist of various theories put forth by
scholars with an aim to achieve efficiency and economy of the organization.
The purpose of administrative theory and its practice can be understood from
the ever increasing role of government in our day-to-day life. Today
governmental functions are on the rise leading to increased role of public
administration to achieve the societal goals such as health, education, social
security, law and order etc. In order to achieve societal goals we need to have a
proper body of knowledge that provides scholars, practitioners and students
with necessaryassistance to study the subject and make better policy decisions.
Principles of management:
 Division of Work – When employees are specialized, output can increase
because they become increasingly skilled and efficient.
 Authority – Managers must have the authority to give orders, but they must
also keep in mind that with authority comes responsibility.
 Discipline – Discipline must be upheld in organizations, but methods for
doing so can vary.
 Unity of Command – Employees should have only one direct supervisor.
 Unity of Direction – Teams with the same objective should be working
under the direction of one manager, using one plan. This will ensure that
action is properly coordinated.
 Subordination of Individual Interests to the General Interest – The
interests of one employee should not be allowed to become more important
than those of the group. This includes managers.
 Remuneration – Employee satisfaction depends on fair remuneration for
everyone. This includes financial and non-financial compensation.
 Centralization – This principle refers to how close employees are to the
decision-making process. It is important to aim for an appropriate balance.
 Scalar Chain – Employees should be aware of where they stand in the
organization's hierarchy, or chain of command.
 Order – The workplace facilities must be clean, tidy and safe for
employees. Everything should have its place.
 Equity – Managers should be fair to staff at all times, both maintaining
discipline as necessary and acting with kindness where appropriate.
 Stability of Tenure of Personnel – Managers should strive to minimize
employee turnover. Personnel planning should be a priority.
 Initiative – Employees should be given the necessary level of freedom to
create and carry out plans.
 Esprit de Corps – Organizations should strive to promote team spirit and
unity.

3) Quantitative management:
Definition:
The quantitative approach to management incorporates many
analytical and numeric techniques into management methods. The goal is to
have specific formulas that information can be plugged into to provide the best
answer to common management questions.
Introduction:
The quantitative approach evolved from mathematical and
statistical solutions developed for military problems during World War 2. After
the war was over, many of these techniques used for military problems were
applied to businesses. It involves applying statistics, optimization models,
information models, computer stimulations and other quantitative techniques to
management activities.
 Important key points:
Quantitative management focuses on:
1) Intense focus on the customer
2) Concern for continual improvement
3) Process focused
4) Improvement in the quality of everything the organization does
5) Accurate measurement
6) Empowerment of employees
Roles:
Quantitative management provides a tool for scientific analysis. It provides
solutions for various business problems. It enable proper deployment of resources.
It helps in minimizing waiting time and servicing costs, assists in choosing an
optimum strategy, render help in optimum resource allocation, facilitate the
process of decision making and it enables management to decide what to buy and
how much to buy.
Scope:
Quantitative management has a scope in fields like:
 Finance and Accounting: Cash flow analysis, Capital budgeting, Dividend and
Portfolio management, Financial planning.
 Marketing Management: Selection of product mix, Sales resources allocation
and Assignments.
 Production Management: Facilities planning, Manufacturing, Aggregate
planning, Inventory control, Quality control, Work scheduling, Job sequencing,
Maintenance and Project planning and scheduling.
 Personnel Management: Manpower planning, Resource allocation, Staffing,
Scheduling of training programs.
 General Management: Decision Support System and Management of
Information Systems, MIS, Organizational design and control, Software Process
Management and Knowledge Management.

4) Organizational behavior:
Definition:
 Actions and attitudes of individuals and groups toward one another
and toward the organization as a whole, and its effect on the organization's
functioning and performance.

Introduction:
Studying organizational behavior helps in recognizing the patterns of
human behavior and in turn throw light on how these patterns profoundly influence
the performance of an organization. Organizational behavior (OB) is the study of
the way people interact within groups. Normally this study is applied in an attempt
to create more efficient business organizations. The central idea of the study of
organizational behavior is that a scientific approach can be applied to the
management of workers. Organizational behavior theories are used for human
resource purposes to maximize the output from individual group members.

Importance and roles:

Following points show the importance and roles of organizational
behavior:
 It helps in explaining the interpersonal relationships employees share with
each other as well as with their higher and lower subordinates.
 The prediction of individual behavior can be explained.
 It balances the cordial relationship in an enterprise by maintaining effective
communication.
 It assists in marketing.
 It helps managers to encourage their sub-ordinates.
 Any change within the organization can be made easier.
 It helps in predicting human behavior & their application to achieve
organizational goals.
 It helps in making the organization more effective.
Assumptions:
There are majorly three assumptions for organizational
behavior
 1. The organization can be made productive also by increasing the
quality of work life of employees.
2. Organizations are always dynamics and are subjected to changes.
3. Here is no one single approach with which organizational behavior
can be studied.

Scope:
The scope of organizational scope is:
1) Ensure employees satisfaction
2) Developing human skills
3) Performance appraisal
4) Determining motivation system
5) Developing positive attitude
6) Helps in reducing conflicts
7) Improving organizational effectiveness

5) Systems approach:
Definition:
A line of thought in the management field which stresses the
interactive nature and interdependence of external and internal factors in an
organization. A systems approach is commonly used to evaluate market elements
which affect the profitability of a business.

Introduction:
Systems approach is based on the generalization that everything is
inter-related and interdependent. One its most important characteristic is that it
is composed of hierarchy of sub-systems. The systems approach is considered
both general and specialized systems. There are two types of systems i.e. open
system and close system. Open systems are influenced by and do interact with
their environment. Close systems are not influenced by and do not interact with
their environment. Systems theory is a basic theory in the physical sciences, but
had never been applied to organized human efforts.
Important key points:
System approach considers the organization as a dynamic
and inter-related set of parts. It considers the impact of both near and distant future
on organizational activities. System approach integrates goals of different parts of
the organization (sub-systems or departments) with the organization as a whole. It
synthesizes knowledge of different fields of study such as biology, sociology,
psychology, information systems, economics etc. System approach enables
organizations to frame policies that promote business objectives and social
objectives.
Assumptions:
(1) That high complexity and uncertainty are primary features of organizations
and their environments today.
(2) A naturalistic world view is effective for working in highly complex and
uncertain environments.
(3) The dynamics of how an organization functions ‘in actual practice’ are key to
its performance, these dynamics consist of how all elements within the
organization behave as well as the rich and deep net of interactions between
them.
(4) Individuals are the fundamental unit that give life to all forms of
organizational entity and cognition plays a key role in individual functioning.
(5) A useful structure for examining organizational situations consists of three
levels of simplicity (activity, process and whole system).
(6) Holistic thinking and systems methods are useful to simplify high complexity
as they enable an overall description of an entity, a balanced representation of all
factors influencing it, and a projection of its future viability.
(7) Considering an entity as a singular (resource limited) system enables it to be
optimized for a particular purpose within the constraints that exist.
(8) Your own practice is the starting point for creating a high performance
organization as it is all anyone has to influence any aspect of the outside world.
Scope:
A system approach consists of criteria of selecting problems and relevant
data. It provides standards governing the inclusion and exclusion of question and
data. It denotes epistemological assumptions on which the search for knowledge is
based. An approach determines the way of generalization, explanation, prediction
and prescription – all of which are among the main function of a theory.

6) Contingency approach:
Definition:
A contingency approach to management is based on the theory that
management effectiveness is contingent, or dependent, upon the interplay between
the application of management behaviors and specific situations. In other words,
the way you manage should change depending on the circumstances. One size does
not fit all.
Introduction:
The contingency approach or situational approach says that
organizations are different, face different situations and require different ways of
managing. The situational characteristics are called contingencies. This
contingency theory are also called situational theory regards the effectiveness of
organizations as dependent or contingent on particular situations. This theory
highlights the contextual perspective of management. The main message of
contingency theory is that there is no best way to manage and lead the
organization and that the desired outcome of the organization can be achieved in
several ways. The organizational structures and the control system that managers
choose are dependent on external environment in which organization operates. The
characteristics of environment affect an organization’s ability to obtain resources.
How managers design the organizational hierarchy, choose a control system, and
lead and motivate their employees is contingent on the characteristics of the
organizational environment.
Important key points:
 1) Management is entirely situational. The application and effectiveness of any
technique is contingent on the situation.
2) 2. Management should match its approach to the requirements of the
particular situation. To be effective, management policies and practices must
respond to environmental changes. The organization structure, the leadership
style, the control system—all should be designed to fit the particular
situation.
3) As management’s success depends on its ability to cope with its
environment, it should sharpen its diagnostic skills so as to anticipate and
comprehend environmental changes.
4) The managers should understand that there is no one best way to manage.
5) Because of the specific organization-environment relationship, no action
can be universal. It varies from situation to situation.

Assumptions of the Contingency Approach (Management):

1. There is no one best type of organization which suits all enterprises. That is,
different types of structures, processes and approaches are needed for different
kinds of environments as well as internal situations.
2. Even in the same organization different approaches may be necessary to deal
with different situations.
3. A large number of variables, including goals, attitudes and sense of values of
people, technology and conditions of the market determine the structure,
process and overall approach of an organization.
4. Management has to develop the requisite diagnostic skill so that they can hit
upon the right type of policy at the right time and in the right situation.
5. Adaptability to change, particularly to environmental change constitutes one
of the biggest challenges to modern organizations. The organization should be
so designed that it is flexible enough to change with the environment.
Scope:
 Contingency theory has survived over the decades as a valid and reliable
approach how to achieve effective leadership because it is grounded in
empirical research. Researchers who have followed Fiedler have validated
contingency theory with their own research.
 Contingency theory has broadened the scope of leadership understanding
from a focus on a single, best type of leadership (e.g., trait approach) to
emphasizing the importance of a leader's style and the demands of different
situations.
 Contingency theory has also been proved to have 'predictive powers' in
determining the type of leadership that is most likely to be effective in
particular contexts.
 Contingency theory suggests not to expect leaders to be equally effective in
all situations and therefore organizations should consider leaders in optimal
situations according to their leadership style.
 Contingency theory supplies data on leadership styles that could be useful to
organizations in developing leadership profiles for human resource planning.