What is Management?
The concept of direction has acquired special significance inward the nowadays competitive as well as complex business concern world. Efficient as well as purposeful direction is absolutely essential for the survival of a business concern unit. Management concept is comprehensive as well as covers all aspects of business. In uncomplicated words, direction agency utilising available resources inward the best possible trend as well as also for achieving good defined objectives. It is a distinct as well as dynamic physical care for involving exercise of dissimilar resources for achieving good defined objectives. The resources are: men, money, materials, machines, methods as well as markets. These are the half-dozen basic inputs inward direction physical care for (six M's of management) as well as the output is inward the cast of achievement of objectives. It is the goal outcome of inputs as well as is available through efficient direction process.
The term 'management' is used extensively inward business. It is the heart as well as soul or life giving chemical element inward business. We await that a business concern unit of measurement should live managed efficiently. This is exactly what is done inward management. Management is essential for the conduct of business concern activity inward an orderly manner. It is a vital business office concerned with all aspects of working of an enterprise.
Definitions of Management
- According to George R. Terry, "Management is a distinct physical care for consisting of planning, organising, actuating as well as controlling, performed to determine as well as accomplish stated objectives past times the exercise of human beings as well as other resources".
- According to Henry Fayol, "To handle is to forecast as well as to plan, to organise, to command, to coordinate as well as to control".
- According to Peter Drucker, "Management is a multi-purpose organ that manages business concern as well as manages managers as well as manages workers as well as work".
- According to Harold Koontz, "Management is the fine art of getting things done through as well as with people inward formally organized groups”.
- According to Mary Parker Fallett, "Management is the fine art of getting things done through people".
Characteristics of Management
- Management is a managerial process: Management is a physical care for as well as non just a trunk of individuals. Those who perform this physical care for are called managers. The managers exercise leadership past times assuming authorization as well as direct others to human activity within the organisation. Management physical care for involves planning, organising, directing as well as unifying human efforts for the accomplishment of given tasks.
- Management is a social process- Management takes house through people. The importance of human factor inward direction cannot live ignored. H5N1 manager's task is to instruct the things done with the back upwardly as well as cooperation of subordinates. It is this human chemical element which gives direction its special character.
- Management is action-based: Management is e'er for achieving sure objectives inward terms of sales, profit, etc. It is a result-oriented concept as well as non just an abstract philosophy. It gives importance to concrete performance through suitable actions. It is an activity based activity.
- Management involves achieving results through the efforts of others: Management is the fine art of getting the things done through others. Managers are expected to guide as well as motivate subordinates as well as instruct the expected performance from them. Management acts as an activating factor.
- Management is a grouping activity: Management is non an isolated private activity but it is a collective activity or an activity of a group. It aims at using grouping efforts for achieving objectives. Managers handle the groups as well as coordinate the activities of groups functioning inward an organisation.
- Management is intangible: Management is non straight visible but its presence is noticed inward the cast of concrete results. Management is intangible. It is similar invisible spirit, which guides as well as motivates people working inward a business concern unit. Management is similar government, which functions but is non visible inward physical form.
- Management is aided, non replaced past times computers: The calculator is an extremely powerful tool of management. It helps a managing director to widen his vision. The calculator supplies sea of information for of import decision-making. The calculator has unbelievable information processing as well as feedback facilities. This has enabled the managing director to conduct quick analysis towards making right decisions. H5N1 calculator supports managing director inward his managerial work. However, it cannot supersede managers inward business. They were required inward the past, at nowadays as well as also inward future. Their existence is absolutely essential inward the direction process.
- Management is all pervasive: Management is comprehensive as well as covers all departments, activities as well as employees. Managers operate at dissimilar levels but their functions are identical. This indicates that direction is a universal as well as all pervasive process.
- Management is an art, scientific discipline as good as a profession: Management is an fine art because sure skills, essential for goodness management, are unique to individuals. Management is a scientific discipline because it has an organised trunk of knowledge. Management is also a profession because it is based on advanced as well as cultivated knowledge.
- Management aims at coordination of activities: Coordination is the essence of management. It gives 1 clear direction to the whole organisation as well as brings unity as well as harmony inward the whole business concern unit. For such coordination, effective communication at all levels is essential.
- Management is innovative: Management techniques are dynamic as well as innovative. They demand to live adjusted as per the requirements of the situations. Another managing director demand non repeat the decisions of 1 manager. Similarly, a managing director has to alter his decisions nether dissimilar situations.
- Management has dissimilar operational levels: Every Organisation needs managers for managing business concern activities. The manager's task is basically the same at all levels. The managers at the higher levels have got to a greater extent than of import duties piece managers at the lower levels have got to perform routine functions i.e duties.
- Management is dissimilar from ownership: Management is concerned with the direction of business concern activities. Managers are non the owners but they handle the business concern on behalf of the owners. Separation of ownership as well as direction is a special characteristic of modem business concern organisation.
- Management has vast scope: The compass of direction is quite comprehensive. It covers all aspects of business. The principles of direction guide managers piece managing diverse business concern activities.
- Management is dynamic: Business is influenced past times changes inward economic, social, political technological as well as human resource. Management adjusts itself to the changing atmosphere making suitable forecasts as well as changes inward the policies. Hence, direction is treated as a dynamic activity.
- Management aims at achieving predetermined objectives: Management is a meaningful activity. All organisations are essentially groups of individuals formed for achieving mutual objectives. An Organisation exists for the attainment of specific objectives.
Need of Management
- Direction, coordination as well as command of grouping efforts: In business, many persons piece of work together. They demand proper direction as well as guidance for raising their efficiency. In the absence of guidance, people volition piece of work as per their wishing as well as the, orderly working of enterprise volition non live possible. Management is needed for planning business concern activities, for guiding employees inward the right direction as well as finally for coordinating their efforts for achieving best/most favorable results.
- Orderly achievement of business concern objectives: Efficient direction is needed inward monastic say to make the objectives of business concern activity inward an orderly as well as quick manner.
- Performance of basic managerial functions: Planning, Organising, Co-ordinating as well as Controlling are the basic functions of management. Management is needed as these functions are performed through the direction process.
- Effective communication at all levels: Management is needed for effective communication within as well as exterior the Organisation.
- Motivation of employees: Management is needed for motivating employees as well as also for coordinating their efforts so as to make business concern objectives quickly.
- Success as well as stability of business concern enterprise: Efficient direction is needed for success, stability as well as prosperity of a business concern enterprise.
Modem business concern is highly competitive as well as needs efficient as well as capable direction for survival as well as growth. Management is needed as it occupies a unique seat inward the polish functioning of a business concern unit. This suggests the demand of efficient direction of business concern enterprises. Profitable/successful business concern may non he possible without efficient management. In this sense, "No management, no business" is true. Survival of a business concern unit of measurement inward the nowadays competitive Earth is possible only through
efficient as well as competent management.
Meaning of Management Process
The term direction is explained inward dissimilar ways. For example, it is said that direction is what direction does. Here, direction is explained with reference to its basic functions which include planning, organising, coordinating as well as controlling. Similarly, direction is described as a physical care for which involves diverse elements. Management physical care for is a continuous 1 as well as is run past times the managers functioning at dissimilar levels. Management is at 1 time recognised as a distinct physical care for inward which managers plan, organise, lead, motivate as well as command human efforts inward monastic say to make good defined goals. In fact, physical care for agency a serial of activities/operations undertaken/conducted for achieving a specific objective. Process is a systematic way of doing things. For example, inward a manufacturing flora at that spot is a production process. Similarly, inward the direction process, resources as well as human efforts are used inward an orderly trend for achieving specific objectives. The direction physical care for suggests functions to live performed past times the managers.
Definition of Management Process
- According to D. E. McFarland, "Management is the distinct physical care for past times which the managers create, direct, maintain as well as operate purposive organisation through systematic, co-coordinated as well as cooperative human efforts”.
- According to Gemp R. Terry, "Management is a distinct physical care for consisting of planning, organisisng, actuating, as well as controlling, performed to determine as well as accomplish objectives past times the exercise of people as well as other resources".
Functions of Management
The essential elements/components of Management Process are four.
- Planning
- Organising
- Directing and
- Controlling.
We may add together some to a greater extent than elements inward the direction process. Such elements are:-
- Motivating
- Co-coordinating
- Staffing and
- Communicating.
The elements inward the direction physical care for are genuinely the basic functions of direction these functions constitute the direction physical care for inward practice. Management physical care for is inward fact, direction inward practice. This physical care for suggests what a managing director is supposed to, do or the basic functions that he has to perform piece managing the task assigned to him.
Luther Gullic gave a novel formula to suggest the elements of Management Process i.e. basic functions of management. According to him, direction physical care for may live indicated past times the give-and-take "PODSCORB”. Here, ‘P' states for 'planning'. "O" for 'organising', "D" for 'directing', "S" for 'Staffing', "CO" for 'Coordinating, "R" for 'Reporting' as well as "B" for 'Budgeting'. Gullic coined the give-and-take "PODSCORB" to suggest 7 functions of management.
The next figures demonstrate the direction physical care for as well as the elements involved:
Elements of Management Process
- Planning: Planning is the primary business office of management. It involves determination of a course of instruction of activity to make desired results/objectives. Planning is the starting dot of direction physical care for as well as all other functions of direction are related to as well as subject on planning function. Planning is the key to success, stability as well as prosperity inward business. It acts as a tool for solving the problems of a business concern unit. Planning plays a pivotal role inward business concern direction It helps to visualize the hereafter problems as well as keeps direction create with possible solutions.
- Organising: Organising is side past times side to planning. It agency to convey the resources (men, materials, machines, etc.) together as well as exercise them properly for achieving the objectives. Organisation is a physical care for as good as it is a structure. Organising agency arranging ways as well as agency for the execution of a business concern plan. It provides suitable administrative construction as well as facilitates execution of proposed plan. Organising involves dissimilar aspects such as departmentation, bridge of command delegation of authority, establishment of superior-subordinate human relationship as well as provision of mechanism for co-ordination of diverse business concern activities.
- Staffing: Staffing refers to manpower required for the execution of a business concern plan. Staffing, as managerial function, involves recruitment, selection, appraisal, remuneration as well as evolution of managerial personnel. The demand of staffing arises inward the initial menstruum as well as also from fourth dimension to fourth dimension for replacement as well as also along with the expansion as well as diversification of business concern activities. Every business concern unit of measurement needs efficient, stable as well as cooperative staff for the direction of business concern activities. Manpower is the most of import property of a business concern unit. In many organisations, manpower planning as well as evolution activities are entrusted to personnel managing director or HRD manager. 'Right human being for the right job' is the basic regulation inward staffing.
- Directing (Leading): Directing as a managerial function, deals with guiding as well as instructing people to do the piece of work inward the right manner. Directing/leading is the responsibleness of managers at all levels. They have got to piece of work as leaders of their subordinates. Clear plans as well as audio organisation prepare the phase but it requires a managing director to direct as well as atomic number 82 his men for achieving the objectives. Directing business office is quite comprehensive. It involves Directing as good as raising the morale of subordinates. It also involves communicating, leading as well as motivating. Leadership is essential on the component of managers for achieving organisational objectives.
- Coordinating: Effective coordination as well as also integration of activities of dissimilar departments are essential for orderly working of an Organisation. This suggests the importance of coordinating as direction function. H5N1 managing director must coordinate the piece of work for which he is accountable. Co-ordination is rightly treated as the essence of management. It may live treated as an independent business office or as a component of organisms function. Coordination is essential at all levels of management. It gives 1 clear-cut direction to the activities of individuals as well as departments. It also avoids misdirection as well as wastages as well as brings unity of activity inward the Organisation. Co-ordination volition non come upwardly automatically or on its ain Special efforts are necessary on the component of managers for achieving such coordination.
- Controlling: Controlling is an of import business office of management. It is necessary inward the instance of individuals as well as departments so as to avoid incorrect actions as well as activities. Controlling involves iii broad aspects: (a) establishing standards of performance, (b) measuring piece of work inward progress as well as interpreting results achieved, as well as (c) taking corrective actions, if required. Business plans do non give positive results automatically. Managers have got to exercise effective command inward monastic say to convey success to a business concern plan. Control is closely linked with other managerial functions. It is rightly treated as the soul of direction process. It is truthful that without planning at that spot volition live nada to command It is as truthful that without command planning volition live only an academic exercise Controlling is a continuous activity of a supervisory nature.
- Motivating: Motivating is 1 managerial business office inward which a managing director motivates his men to give their best to the Organisation. It agency to encourage people to take to a greater extent than involvement as well as first inward the piece of work assigned. Organisations prosper when the employees are motivated through special efforts including provision of facilities as well as incentives. Motivation is genuinely inspiring as well as encouraging people to piece of work to a greater extent than as well as contribute to a greater extent than to make organisational objectives. It is a psychological physical care for of corking significance.
- Communicating: Communication (written or oral) is necessary for the substitution of facts, opinions, ideas as well as information betwixt individual’s as well as departments. In an organisation, communication is useful for giving information, guidance as well as instructions. Managers should live goodness communicators. They have got to exercise major portion of their fourth dimension on communication inward monastic say to direct, motivate as well as co-ordinate activities of their subordinates. People scream back as well as human activity collectively through communication. According to Louis Allen, "Communication involves a systematic as well as continuing physical care for of telling, listening as well as understanding".
Importance of Management
- Optimum utilisation of resources: Management facilitates optimum utilisation of available human as well as physical resources, which leads to progress as well as prosperity of a business concern enterprise. Even wastages of all types are eliminated or minimized.
- Competitive strength: Management develops competitive strength inward an enterprise. This enables an enterprise to develop as well as expand its assets as well as profits.
- Cordial industrial relation: Management develops cordial industrial relations, ensures improve life as well as welfare to employees as well as raises their morale through suitable incentives.
- Motivation of employees: It motivates employees to take to a greater extent than involvement as well as initiatives inward the piece of work assigned as well as contribute for raising productivity as well as profitability of the enterprise.
- Introduction of novel techniques: Management facilitates the introduction of novel machines as well as novel methods inward the conduct of business concern activities. It also brings useful technological developments as well as innovations inward the direction of business concern activities.
- Effective management: Society gets the benefits of efficient direction inward terms of industrial development, judge to dissimilar social groups, consumer satisfaction as well as welfare as well as proper discharge of social responsibilities.
- Expansion of business: Expansion, growth as well as diversification of a business concern unit of measurement are possible through efficient management.
- Brings stability as well as prosperity: Efficient direction brings success, stability as well as prosperity to a business concern enterprise through cooperation with employees.
- Develops squad spirit: Management develops squad spirit as well as raises overall efficiency of a business concern enterprise.
- Ensures effective exercise of managers: Management ensures effective exercise of managers so that the benefits of their experience, skills as well as maturity are available to the enterprise.
- Ensures polish functioning: Management ensures smooth, orderly as well as continues functioning of an enterprise over a long period. It also raises the efficiency, productivity as well as profitability of an enterprise.
- Reduces turnover as well as absenteeism: Efficient direction reduces labour turnover as well as absenteeism as well as ensures continuity inward the business concern activities as well as operations.
- Creates audio organisation: H5N1 dynamic as well as progressive direction guarantees evolution of audio Organisation, which tin dismiss confront whatever province of affairs - favorable or unfavorable with ease as well as confidence.
The real survival of an enterprise depends on its management. Ineffective direction leads to disastrous consequences. According to George Terry, "Ineffective direction cuts at the real roots of economic scheme of an enterprise’s. This suggests the importance of efficient management. In brief, direction occupies a unique seat inward the functioning of business concern enterprises. Its importance as well as positive role is accepted inward all sector-private, public, articulation as well as co-operative. Management is similar a human brain. It is an integral aspect of business concern itself.
The importance of direction is non fully realised inward many developing countries. The economical progress of western countries is non just due to abundant cloth resources but because they are efficiently managed as well as utilised. In other countries, resources are non utilised fully as well as properly due to lack of managerial skills. This suggests that direction is a key factor inward the working of business concern enterprises. There is no substitute to efficient management. An inefficiently managed business concern enterprise has no house inward the nowadays complex as well as competitive business concern Earth groups.
Management inward the Future
In the side past times side dyad of decades, direction theory as well as exercise is jump to alter inward monastic say to catch the complex as well as ever changing environmental variables. The phenomenal growth inward multinational as well as transnational operations, fast changing technology, increasing complexity of determination making, dynamic social as well as economical environment, globalisation of business concern as well as elastic projection organisations as well as task groups volition significantly influence the hereafter managerial Earth as well as managerial tasks. There are successful business concern as well as direction leaders publishing their memories as well as offering their experience to the world. There is corking increment inward the number of business concern schools. Management instruction is depository fiscal establishment ably providing expertise to nonage the business concern as well as this tendency is probable to continue. Career paths are probable to live based on expertise alone. Managers volition live nether clitoris per unit of measurement area to develop this expertise as well as apply it inward an ever-widening make of situations rather than their mightiness to live the bureaucratic jungle. They volition have got to combine their personal, professional person as well as operational qualities as well as capacities to the satisfaction of employers as well as the society. The hereafter must live considered as an chance as well as non a problem.
The hereafter business concern surroundings volition he dominated past times information engineering (IT), globalisation, cloth as well as unloosen energy shortages, problems of pollution as well as ecological balance, consumerism, inflation as well as R & D. The costs of employing goodness managers are regarded as an investment for effective business concern performance. Management is a designated expertise, increasingly professionalized as well as is probable to progress to a highly organised status. It is assumed that immature people volition pick out direction as an job as well as volition progress from lower to middle as well as from middle to top direction positions. An ever-greater make of cognition is available to all aspects of business concern as well as management.
Some forces/factors that are probable to have got an impact upon direction inward hereafter are as mentioned below:-
- Emergence of cognition society.
- Development of socially concerned Humanistic society.
- Widespread application of information engineering (IT)
- Transition from industrial to service economy.
- Growing exercise of innovations as well as R & D.
- Social accountability of business.
- Satisfaction of human as well as social values inward man-machine system.
- Liberalization as well as Globalisation of the business.
Development of Management Thought
Management thought has a long history. It is as former as human civilisation itself. Management inward 1 cast or the other has been a important characteristic of economical life of mankind throughout ages. Management thought is an evolutionary concept It has develop along with as well as inward line with the growth of social, political, economical as well as scientific institutions. Management thought has its source inward the ancient times. It developed gradually along with other socioeconomic developments. The contributor’s to direction though are many. They include Management philosophers, direction practitioners as well as scholars. Modem direction is based on the solid foundations set downwards past times direction thinkers from the early on historical period.
Historical Background of Management
The recorded exercise of organised direction dates dorsum to 5000 B.C. when the agricultural revolution had taken place. These agricultural civilizations existed inward India, mainland People's Republic of China as well as Arab Republic of Egypt According to Peter Drucker these irrigation civilizations "were non only 1 of the corking ages of technology, but it represented also mankind’s most productive historic menstruum of social as well as political innovation". As the villages grew as well as civilizations evolved, the managers as good grew as well as evolved. They became the priests, the kings, the ministers holding mightiness as well as wealth inward the society. Written documents found inward the Sumerian civilisation which flourished some 5000 years ago, contains evidence of direction command practices.
As early on as 4000 B.C., the Egyptians were aware of the importance of planning, organising as well as controlling. The huge pyramids of Arab Republic of Egypt stand upwardly a mute testimony to the managerial as well as organizational abilities of the ancient Egyptian civilization. One pyramid required 1,00,000 men working for 20 years, roofing thirteen acres, using 2.3 1 one one thousand thousand blocks, each weighing an average of 2.5 tons. To make such a monument required proper planning, piece of work allocation, organising, directing, controlling as well as determination making.
In the Grecian civilisation nosotros let on the source of the Scientific Method inward the famous Socratic discourses. The Romans who built a vast empire extending from U.K. inward the due west to Syrian Arab Republic inward the eastward ruled it for many years only because of their superior as well as advanced managerial abilities.
In ancient Bharat Kautilya wrote his Arthashastra inward nigh 321 B.C. the major theme of which was political, social as well as economical direction of the State. The written report of direction of the cities of Mohenjodaro as well as Harappa of the ancient Aryans inward 2000 B. C., Buddha's monastic say as well as the Sangha inward 530 B. C., supply evidence nigh the exercise of the principles of management.
During the 13th as well as 14th centuries AD the large trading houses of Italia needed a agency of keeping records of their business concern transactions. To satisfy their needs Luca Pacioli published a treatise inward 1494 describing the Double Entry System of Book-keeping for the kickoff time.
Management thought is an evolutionary concept. New theories as well as principles were suggested along with novel developments inward the business concern field. The novel thoughts supplemented the existing thoughts as well as theories. This is how developments are taking house continuously inward regard to direction thoughts/theories. Management thinkers as well as thinkers from other fields such as economics, psychology, sociology as well as mathematics have got also made their contribution inward the evolution of direction thought.
Evolution of Management Thought
This evolution of direction thought tin dismiss live studied inward the next flum broad stages:
- The Classical Theory of Management (Classical Approach): It includes the next iii streams of thought: (i) Bureaucracy, (ii) Scientific Management; as well as (iii) Administrative Management
- The Neo-classical theory of Management: It includes the next ii streams: (i) Human Relations Approach as well as (ii) Behavioral Sciences Approach.
- The Modern Theory of Management: It includes the next iii streams of thought: (i) Quantitative Approach to Management (Operations Research); (ii) Systems Approach to Management as well as (iii) Contingency Approach to Management.
It is rather hard to dry ground the exact menstruum of each phase inward the evolution of direction thought. Experts, inward general, concur with the next menstruum for each thought/school.
- Classical School/thought: 1900 to 1930.
- Neo-classical School/thought: 1930 to 1960.
- Modern School/thought: 1960 onwards.
Contributors to Management Thought
The evolution of direction thought is the outcome of contributions made past times pioneering direction thinkers as well as experts from other social sciences such as economic science as well as psychology.
Contribution of F. W. Taylor to Management Thought
F.W. Taylor is 1 of the founders (the other ii are Max Weber as well as Henry Fayol) of classical thought/classical theory of management. He suggested scientific approach to direction also called scientific direction theory. F. W. Taylor (1856-1915) is rightly treated as the manful soul parent of scientific management. He suggested the principles of scientific management. His concept of scientific direction developed into a motion as well as dominated the industrial direction for several decades afterward him. His concepts as well as principles were refined as well as popularized past times several of his followers, notable with them existence Henry Gantt, The Gilberths as well as Emerson.
Principles of Scientific Management
According to Taylor, scientific direction inward its essence consists of a philosophy which results inward a combination of 4 of import underlying principles of management. First, the evolution of a truthful science, second, the scientific selection of the workers, third, their scientific instruction as well as development, Froth, intimate co-operation betwixt direction as well as their men. The basic principles of Taylor philosophy of scientific direction are as noted below. These principles of scientific direction are most crucial aspects of scientific management.
- The evolution of 'One best way" of doing a job. This suggests the task of finding out the best method for achieving the objectives of a given job. The standards are decided scientifically for Jobs as well as incentive reward were paid for all production inward a higher house this standard. Here, task analysis as well as standardization of tools, equipment, machinery, etc. are required.
- Scientific selection of workers as well as their evolution through proper training.
- Scientific approach past times management. The direction has to develop a truthful scientific discipline inward all fields of piece of work activity through scientific investigation as well as experiments.
- Close co-operation of managers as well as workers (labour direction relations) for improve results as well as understandings.
- Elimination of conflict betwixt methods as well as men. The workers are probable to resist to novel methods. This tin dismiss live avoided past times providing them an chance to earn to a greater extent than wages.
Features of Scientific Management
- Scientific task setting: F. W. Taylor suggested the introduction of measure task which every worker is expected to consummate within 1 twenty-four hr menstruum (working hours) the task is to live calculated through careful scientific investigation. For this, piece of work written report (i.e. method written report as well as piece of work mensuration study) is essential. Taylor suggested fourth dimension study, displace study, fatigue written report as well as rate-setting for the introduction of scientific task. Time written report is the fine art of observing as well as recording the fourth dimension required to do each detailed chemical element inward an industrial operation. Motion written report refers to the written report as well as analysis of the movements of an operator piece performing a task so that attempts tin dismiss live made to take useless/unwanted movements from the process. Both the studies together aid inward determining the best method of performing a task as well as the measure fourth dimension allowed for it. This replaces the former rule-of-thumb cognition of the workers. The workload, the best method of performing the same as well as the fourth dimension within which it must live performed are suggested inward this characteristic of scientific direction past times Taylor.
- Planning the task: For performing the task past times every worker, Taylor suggested the demand of planning the production activity accurately. This thought of planning is Taylor's gift to the scientific discipline of management. Planning of task gives answers to the next questions. What has to live done, how it is to live done, where the piece of work shall live done as well as when the piece of work shall live done.
- Scientific selection as well as grooming of workers: Taylor suggested the demand of scientific selection of workers for the plant/production activities. The physical care for of selection must live systematic so as to select the best as well as the most suitable persons for dissimilar types of jobs. Correct placement of workers is as of import He also suggested the demand of grooming of workers so as to lift their mightiness or efficiency. Training is to live integrated with the advertisement policy. He also suggested differential slice wage programme for compensation payment to workers. He also suggested the importance of cordial relations betwixt direction as well as workers.
- Standardization: Taylor suggested the importance of standardization of tools as well as equipment, materials, atmospheric condition of piece of work as well as speed of machines. This brings co-ordination inward dissimilar activities as well as all workers volition live able to perform the task assigned easily. The workers volition have got satisfactory working atmospheric condition for piece of work due to such standardization.
- Specialization: Taylor suggested specialization inward the administrative as well as organizational setup of the flora He suggested functional foremanship. Taylor recommended 8 functional foremen for dissimilar activities as well as functions. The foremen suggested past times him are similar route clerk, instruction bill of fare clerk, speed boss etc. Such specialization is useful for raising efficiency of the whole organisation.
- Mental revolution: The techniques suggested past times F. W. Taylor inward his scientific direction are dissimilar as compared to traditional techniques as well as methods. Naturally, these techniques tin dismiss live used only when workers supervisors as well as managers take them inward theory as well as also inward exercise For this, Mental revolution on their component is essential The success of scientific direction rests basically on the mental attitude of direction as well as workers. They must surrender their former ideas as well as methods as well as must take novel scientific methods. For this, mental revolution on the component of both is essential. Cooperation from workers as well as direction for the introduction of scientific direction depends on this mental revolution.
Benefits / Advantages of Scientific Management
- Application as well as exercise of scientific methods.
- Wide compass for specialization as well as accurate planning.
- Minimum wastages of materials, fourth dimension as well as money.
- Cordial relations betwixt workers as well as management.
- Benefits to workers (higher reward as well as less burden of work), direction (cost reduction, improve lineament productions) as well as consumers (superior goods at lower prices)
Scientific direction non only developed a rational approach to solving organisational problems but also contributed a corking bargain to the professionalisation of management. Time as well as displace studies, scientific selection of workers, piece of work blueprint as well as 1 best way to doing a task are some novel ideals suggested past times Taylor as well as are responsible for the introduction of Many positive changes inward the patch of industrial/ production management.
F. W. Taylor’s Contribution to the Development of Management Thought / Science
The contribution of F. W. Taylor to direction thought is as explained below:
- Emphasis on rational thinking: Taylor suggested rational thinking on the component of direction for raising efficiency as well as productivity. He wanted managements to supersede former methods as well as techniques past times Modern methods which volition lift productivity as well as offering benefits to all concerned parties. He was inward favour of progressive, scientific as well as rational thinking on the component of direction on all managerial problems. Such progressive outlook is essential for the introduction of novel techniques as well as methods inward the Management.
- Introduction of improve methods as well as techniques of production: F. W. Taylor suggested the importance of improved methods as well as techniques of production. Work-study techniques are his contribution to direction thought. He suggested novel methods afterward systematic written report as well as research. Taylor recommended the exercise of novel methods for raising overall efficiency as well as productivity.
- Emphasis on planning as well as command of production: Taylor suggested the importance of production planning as well as command for high production, superior lineament production as well as also for depression cost production. He introduced the concept of production direction inward a systematic way.
- Importance of personnel as well as personnel department: Taylor suggested the importance of manpower inward management. He was inward favour of progressive personnel policies for the creation of efficient as well as satisfied labour force. He suggested the demand of personnel subdivision as well as its importance. He favored incentive wage payment to workers.
- Industrial fatigue as well as repose pauses: Taylor noted the nature of industrial fatigue as well as suggested the introduction of suitable repose pauses for removing such fatigue of workers. He wanted to trim down the burden of piece of work on workers through the exercise of scientific methods.
- Time as well as displace study: Taylor introduced novel concepts similar fourth dimension study, displace written report as well as piece of work written report inward the patch of industrial direction such concepts are for the introduction of novel methods which volition live to a greater extent than quick, scientific as well as less troublesome to workers.
The positive catch of scientific direction was described past times Taylor as "Science, non dominion of thumb; Harmony, non discord; Co-operation, non individualism; maximum output inward house of restricted output. The evolution of each human being to his greatest efficiency as well as prosperity".
F.W. Taylor a rightly treated as manful soul parent of scientific management. In fact, through his concept of scientific management, Taylor genuinely developed a novel scientific discipline of direction which is applicable non only to direction of industrial units but also to the direction of all other business concern units. He suggested sure techniques which tin dismiss live applied purposefully to all aspects of direction of business concern activities. This is treated as Taylor’s unique contribution to direction thought.
The fundamental principles suggested past times F. W. Taylor inward his scientific direction tin dismiss live treated as his contribution to direction thought. In fact, Taylor suggested scientific mental attitude as well as a novel philosophy for discarding former as well as outdated ideas as well as techniques. He was instrumental for the introduction of novel ideas as well as techniques inward the scientific discipline of management. These ideas aid techniques are at 1 time accepted inward theory as good as inward practice.
Criticism of Scientific Management or Opposition to Scientific Management
Scientific direction has wider economical as well as social significance. It has succeeded inward revolutionalising the real concept of direction past times offering a novel approach to the managers inward managing men, materials as well as methods. In spite of several benefits, Taylor's scientific direction concept has widely been criticized past times employers, workers, merchandise unions as well as also past times theorists. They oppose Taylor's scientific direction on dissimilar grounds. The points of criticism nosotros as explained below:
Criticism from Employers
- Huge investment required: Heavy investment is necessary for reorganization of preliminary standardization of tools, machines as well as equipment as well as conduct of fourth dimension as well as displace studies as well as other enquiry activities for the introduction of scientific management. Such investment may non live possible inward small-scale as well as medium size enterprises.
- Sudden alter may disturb existing working arrangements: Sudden alter due to the introduction of scientific direction may paralyze the existing organisation of piece of work as well as volition convey the entire Organisation inward difficulties. There volition live loss due to reorganization, if scientific direction is to live introduced.
- Unsuitable to small-scale units: Small manufacturers debate that the concept of scientific direction is non suitable to their units due to fiscal as well as other difficulties.
- Benefits afterward a long period: The do goodness of scientific direction volition live available only afterward a long menstruum as well as the business concern unit of measurement may come upwardly inward fiscal as well as other difficulties during the physical care for of introduction of novel changes as suggested inward the scientific management.
- Huge overhead expenses required: Introduction of scientific direction involves huge overhead expenses which may erode profitability.
Criticism from Workers as well as Trade Unions. Why did Trade Unions Oppose Scientific Management?
- Heavy burden on workers: Workers experience that they volition have got to portion to a greater extent than burden of piece of work as a outcome of introduction of scientific management. They also fearfulness that the benefits volition he shared past times the employer solitary as well as that they volition live at a loss from all sides. Workers as well as their unions experience that it volition atomic number 82 to their exploitation as well as they oppose scientific direction on this ground.
- Reduces first with workers: Workers as well as merchandise unions debate that scientific direction volition destroy their first as well as they volition live converted into machines inward the production physical care for with no freedom, first as well as choice. Similarity, over-specialization (excessive specialization) volition atomic number 82 to monotony as well as mental fatigue. Hence, they oppose Taylor's scientific management.
- Possibility of unemployment: Workers as well as their unions also experience that scientific direction volition atomic number 82 to unemployment as well as that workers volition live removed due to the exercise of labour-saving devices. This volition atomic number 82 to loss of work as well as income to workers. This is probable to brand merchandise unions weak as well as therefore they oppose scientific management.
- Exploitation of workers: Workers debate that they volition live exploited nether scientific direction as they volition have got to portion to a greater extent than burden of piece of work without corresponding increment inward the wage rate. Trade unions also oppose to scientific direction as it is probable to position to a greater extent than burden of piece of work on the workers without corresponding monetary benefit.
- Possible adverse effects on workers unity: Trade unions also oppose scientific direction as they fearfulness that the unity with workers volition live adversely affected. Workers volition live divided into efficient as well as inefficient categories. In addition, dissimilar slice charge per unit of measurement plans volition live introduced inward house of uniform wage rate. As a result, workers volition live divided. Workers getting high salary volition non live interested inward the marriage ceremony activities as well as this volition brand their marriage ceremony calendar week as well as ineffective. Even to a greater extent than unions as well as challenger unions volition live formed. In brief, merchandise unions strongly criticize scientific direction as it breaks solidarity of workers
The criticism of scientific direction past times employers as well as workers/trade unions is non based on audio reasoning. Their arguments are non based on realities. It is possible to give counter-arguments to every dot of criticism noted past times them. For example, employers object scientific direction on the Earth of huge investment for its introduction. It is truthful that huge investment volition live necessary but it is probable to give greater render inward due course. In addition, scientific direction volition convey downwards the cost as well as thereby heighten the profits.
Contribution of Henry Fayol to Management Thought
Henry Fayol (1841-1925) is rightly treated as the manful soul parent of modern theory of full general as well as industrial management. The credit of suggesting the basic principles of direction inward an orderly trend goes to Henry Fayol. After obtaining an engineering degree, Henry Fayol, joined as primary executive inward a coal mining company. He developed his direction principles as well as full general direction theory as well as published them inward the cast of a mass (in French) "General as well as Industrial Administration" inward 1916. It was translated into English linguistic communication inward 1930. In due course of instruction of time, Henry Fayol came to live recognised as the founder of modern direction theory. His analysis of direction physical care for acts as the foundation of the whole direction theory as well as the nowadays super-structure of direction has been built on it.
Henry Fayol suggested of import qualities of managers as well as stressed the demand for raising such qualities. He developed 14 principles of direction out of his practical experience. These principles are universal inward grapheme as well as are applicable to all types of organisations. Each regulation suggested past times him has specific important as well as significance. According to him, managers inward all organisations demand to follow these principles/guidelines piece managing the affairs of their business concern units. The direction principles suggested past times him inward 1916 are universally accepted past times modern authorities on direction as well as are treated as valid fifty-fifty to this day. This is because these principles are practical inward nature as well as also result-oriented. In fact, these principles are the outcome of his long experience as a practicing manager. These basic principals are useful for effective direction of business concern activities. They are related to the basic components of direction physical care for such as planning, organizing, staffing, leading, coordinating as well as controlling. He incorporated these principles inward the direction theory suggested past times him.The principles of direction suggested past times him are useful non only inward business/industrial enterprises but also inward other organisations such as colleges, hospitals, charitable institutions as well as regime departments. Due to his contribution to direction theory as well as principles, Henry Fayol is rightly treated as the Father of Modern Management Thought. Fayol is the kickoff direction thinker who provided the conceptual framework of the functions of direction inward his mass “General as well as Industrial Management. The functions of direction according to Fayol are,
- Planning
- Organising
- Staffing
- Commanding
- Coordinating
- Controlling
The 14 principles of direction suggested past times him are related these basic functions of direction physical care for as well as are universally accepted. Fayol has given adequate details of every regulation suggested past times him. He also made them easily acceptable past times others. According to Henry Fayol, managers should live flexible inward the application of these principles.
The 14 principles of direction suggested past times him are related these basic functions of direction physical care for as well as are universally accepted. Fayol has given adequate details of every regulation suggested past times him. He also made them easily acceptable past times others. According to Henry Fayol, managers should live flexible inward the application of these principles.
Fayol divided full general as well as industrial direction into next half-dozen groups:-
- Technical activities (production, manufacture, adaptation).
- Commercial activities (buying, selling as well as exchange).
- Financial activities (search for as well as optimum exercise of capital).
- Security activities (protection of holding as well as persons).
- Accounting activities (stock taking, residue sheet, cost, as well as statistics).
- Managerial activities (planning, organising, command, coordination as well as control).
Henry Fayol also suggested 14 principles of management. These principles are:-
- Division of work,
- Authority as well as responsibility,
- Discipline,
- Unity of command,
- Unity of direction,
- Subordination of personal involvement to organizational interests,
- Remuneration,
- Centralization,
- Scalar chain,
- Order,
- Equity,
- Stability of tenure,
- Span of co-operation and
- Initiative
Henry Fayol’s contribution to direction theory is surely remarkable. He gave overall concepts of full general direction as well as suggested the basic functions of management. He recommended the selection as well as grooming of workers as well as managers. He also advocated the exercise of organisation charts. He suggested sure qualities of manager’s winch include physical, mental, moral, educational technical as well as experience. Fayol’s theory of direction was the kickoff consummate theory of direction as nosotros sympathize today. It incorporated proven principles, elements, procedures as well as techniques based on his practical experience.
Contribution of Elton Mayo to the Development of Management Thought
Elton Mayo (1880-1949) is recommended as the Father of Human Relations School. He introduced human relations approach to direction thought. His contribution to the evolution of direction thought is unique as well as is also treated as human relations approach to management. It was Mayo who led the squad for conducting the written report at Western Electric's Hawthorne Plant (1927-1932) to evaluate the attributes as well as psychological reactions of workers inward on-the-job situations. His associates included John Dewery, Kurt Lewin as well as others. Mayo as well as his associates came to the next conclusions from their famous Hawthorne experiments:
- The amount of piece of work to live done past times a worker is non determined past times his physical capacity but past times the social norms.
- Non-economic rewards play a important role inward influencing the deportment of the workers.
- Generally the workers de non reacts as individuals, but as members of group.
- Informal leaders play an of import component inward setting as well as enforcing the grouping norms.
Mayo discussed the factors that drive a alter inward human behavior. He concluded that the drive of increment inward the productivity of the workers is non a unmarried factor similar repose pauses or changing working hours but a combination thease as well as several other factors such as less restrictive supervision, giving autonomy to workers, allowing the formation of small-scale cohesive groups of workers as well as so on. Today, as a outcome of the efforts of Mayo as well as his associates, the managers inward dissimilar organisations recognize that workers' performance is related to psychological, sociological as well as physical factors. Thus, Hawthorne Study was an of import landmark to written report the deportment of worker as well as his human relationship to the job, his immature human being workers as well as the organisation. It proved that informal piece of work groups as well as the chance to live heard as well as participate inward decision-making have got an of import impact on the productivity of the workers.
Mayo is 1 leading direction thinker as well as also a leading advocate of neo-classical theory. The concept of participative direction trend was suggested inward the neo-classical theory. The human relations approach suggested past times Mayo has special importance inward the nowadays period. He rightly suggested the importance of democratic leadership as well as participative direction trend for running business concern activities efficiently. The role of people (workers) is clearly suggested past times Mayo. He rightly suggested that direction is non a mechanical physical care for but a written report of people involved inward the production activities. Management volition instruct positive response from its employees when their actions, sentiments as well as expectations are given due attention.
Mayo is best known for his piece of work on the projection normally referred to as the Hawthorne Studies. They were conducted inward the Hawthorne flora of Western Electric Company inward the USA betwixt 1927 as well as 1932. It is said that Mayo applied psychological approach to direction for the kickoff time. He used clinical as well as diagnostic methods. Mayo has drawn diverse conclusions from these studies. The Hawthorne Studies have got had a shattering impact on direction thinking. Mayo is regarded as revolutionary thinker because of his contribution to the direction thought inward the recent period. The credit of humanization of direction with a catch to make mutual involvement of direction as well as workers goes to Elton Mayo.
Some of the major findings of Hawthorne Studies nosotros as noted below:
- Employee's deportment is influenced past times mental attitudes as well as emotions including prejudices.
- The workers inward a grouping develop a mutual psychological bond uniting them as a grouping inward the cast of informal organisation.
- In managing as well as motivating employee groups, human as well as social motivation plays greater role so fiscal incentives.
- Management must sympathize that a typical grouping deportment tin dismiss dominate or fifty-fifty supersede private propensities as well as preferences.
- When workers are given special attending past times management, the productivity is probable to increment irrespective of actual changes inward the working conditions.
Hawthorne Studies are primarily responsible for consideration of non fiscal incentives inward improving productivity. Mayo pointed out that the organisation is a social scheme as well as informal organisation is a reality. The cognition of human nature tin dismiss solve many problems of management. He emphasized that successful human relations approach tin dismiss easily create harmony inward an organisation, higher employee satisfaction as well as corking operational efficiency. Central to this approach was an increased agreement of the private worker with emphasis on motivation, needs, interpersonal relationships as well as grouping dynamics Mayo believed that a manufacturing flora is non only a workplace but also a social surroundings inward which the employees interact with each other. This gave rising to the concept of the 'social man' whose interaction with others would determine the lineament as well as quantity of the piece of work produced.
Mayo developed his Human Relations Theory of Management on his Hawthorne experiments. He introduced human relations approach to direction as well as is rightly considered as 1 of the pioneers of the Human Relations Theory of Management.
Features of Human Relations Approach
- A business concern organisation is non just a techno-economic scheme but also a social scheme as well as involves human element.
- An private employee is motivated non just past times economical incentives but also past times non economical incentives, psychological as well as social interests, needs as well as aspirations.
- The informal groups inward the organisation are to a greater extent than of import than individuals as well as play an of import role inward raising productivity.
- In house of task-centered leadership, the employee-centered, humanistic, democratic as well as participative trend of leadership should live introduced as it is to a greater extent than effective / productive.
- Employees are non necessarily inefficient or negative inward their approach. They are capable of self-direction as well as control.
- Employees performance tin dismiss live raised past times coming together their social as well as psychological needs. Cordial atmosphere at piece of work house is also useful for raising productivity.
- Management needs social skills along with technical skills inward monastic say to create a feeling (among the employees) that they are a component as well as packet of the organisation as well as non outsiders.
- Employees demand observe as well as positive feeling from the management. For this, employees should live encouraged to participate as well as communicate freely their views as well as suggestions inward the concerned areas of decision-making.
- The direction has to secure willing cooperation of employees. The objective before the direction should live to secure cooperative exertion of its employees. For this, employees should live made happy as well as satisfied.
The features of human relations schoolhouse (noted above) are of import as they were introduced inward the direction theory for the kickoff time. At present, these features are good recognised but were unique when suggested past times 1930.
Human relations approach is a progressive evolution as compared to classical approach. Here, productivity is non treated just as an engineering problem. Cooperation of employees, squad spirit as well as their satisfaction are treated as factors useful for raising productivity. The human relations approach has position special stress on social needs as well as the role of direction inward coming together such needs.
Limitations of Human Relations Approach
- Too much importance to employees, as well as social needs: Human relations approach to direction has given as good much importance to employees, their needs as well as satisfaction. It has given undue stress on the social side of direction as compared to technical side. It is some other extreme as compared to classical theory where employees were neglected considerably. Human relations approach has also neglected many other aspects such as organizational issues, surroundings at the piece of work place, labour unions, construction of the organisation as well as so on.
- Employee-oriented approach to a express extent: It is argued that human relations approach is evidently employee-oriented but inward reality it is organisation-oriented. Many measures are suggested for the happiness as well as satisfaction of employees. Measures are suggested to satisfy employees inward monastic say to make organizational objectives as well as non for coming together the existent needs of workers. Their participation inward direction or upward communication with the management, etc. is outwardly employee-oriented as well as gives them a faux sense of happiness. In brief, the human relations approach is employee-oriented but only to a express extent.
- Faulty supposition inward the theory: The human relations approach is based on a incorrect supposition that satisfied workers are to a greater extent than productive. After 1950s, it was proved that productivity improvement, as a outcome of improve working atmospheric condition as well as the human relations skills of manager’s did non outcome inward productivity improvement as expected. Thus, workers satisfaction is 1 but non the only factor which raises industrial productivity.
- Limited importance to economical incentives: The human relations approach has given express importance to economical incentives inward motivating employees. They prefer informal groups as well as cordial relations with them. However, their involvement as well as loyalty to the organisation largely depends on monetary incentives. Low reward atomic number 82 to Labour turnover fifty-fifty when the goodness handling is given to employees.
The human relations motion is based on the experiments conducted inward the Hawthorne Plant inward Cicero (USA). The major conclusion (of Hawthorne Experiments) was that the workers respond to their piece of work province of affairs as a whole as well as their attitudes as well as social relations constitute an of import component of the total situation. In addition, the attitudes of workers as well as their relations with each other as well as with the direction would play a role inward forming their attitudes towards the total piece of work situation. Elton Mayo conducted a serial of pioneering studies at the Hawthorne flora they proved to live of much exercise inward associating employees with the direction for achieving organizational objectives.
It is rightly pointed out that F. W. Taylor inward his contribution to direction thought suggested rationalizing piece of work for greater labour productivity piece Elton Mayo recommended/ advocated humanism piece of work for enhanced efficiency as well as personal satisfaction. The basic purposes of both the approaches are identical. However; the approaches of Taylor as well as Mayo are different. Taylor's approach was purely engineering piece may referred to social needs of employees as well as their satisfaction. Taylor's approach to scientific direction lacks human elements inward the production process. He treated employee as a cog inward the bicycle emphasizing on efficiency at all costs as if at that spot is no divergence betwixt workers as well as machines. Mayo applied psychological approach to management. He recommended humanization of direction for improve results inward terms of production as well as productivity. He rightly suggested that workers are human beings as well as non machines. They should live treated with dignity as well as honor piece on job.
Both the approaches (of Taylor as well as Mayo) are supplementary inward the nowadays direction thought. At present, stress is on scientific direction principles as good as on human approach to management. Efforts are existence made to create favorable organisation climate for achieving organizational goals. Taylor's approach is comparatively former as well as was pop inward the early on decades of 19th century the human relations approach (suggested past times Elton Mayo) is comparatively novel as well as got popularity past times 1930s.
Systems Approach to Management Thought
Contributions to direction thought/theory afterward 1960s are covered past times modem direction theories. Modem theories are based on classical as well as neo-classical theories but consider the direction problems as they developed inward the recent years. There are iii streams nether modern direction theory. These are:-
- Quantitative / Mathematical Approach to Management,
- Systems Approach to Management, and
- Contingency Approach to Management.
Systems Management School
A scheme is an organised entity i.e. a fellowship or a business concern enterprise made upwardly of parts connected as well as directed to some purpose. Each scheme has an input, a physical care for as well as an output. It acts as a self sufficient unit. Every scheme is interlinked with its subsystems. Any organisation is looked upon as an artificial system, the internal parts of which piece of work together to make established goals as well as the external parts to make interplay with the surroundings including customers, the full general public, suppliers as well as government. The managing director integrates available facilities to make a goal past times agency of systems that relate activities required for the goal result. The scheme serves as the media through which the managing director operates. An integrated scheme tin dismiss live used purposefully for the conduct of production, marketing, distribution as well as other activities relating to business concern inward an orderly manner. H5N1 managing director tin dismiss conduct diverse activities inward an orderly trend with the aid of the systems established. H5N1 scheme is a prepare of interrelated as well as interdependent parts arranged inward a trend that produces a unified whole. Almost anything tin dismiss live viewed as a system.
As per systems direction school, an organisation is looked upon as an artificial system. Its internal parts piece of work together to make established goals as well as the external parts to make interplay with the surroundings including customers, the full general public, suppliers as well as government. The managing director integrates available facilities to make a goal past times agency of systems that relate activities required for the goal result. In this way, the systems direction schoolhouse helps inward achieving the established goals of the organisation.
It is possible to flora such systems direction organisation inward a business concern enterprise. For this authorities, departments, etc. volition live created. The piece of work volition live properly distributed as well as diverse departments (sub-systems) volition operate as per the piece of work assigned nether the project. The calculator tin dismiss live used extensively for the execution of systems direction Data processing piece of work volition locomote slow as well as quick. Systems direction enables a managing director to piece of work to a greater extent than efficiently because of slow availability of information inward dissimilar aspects of business.
Features Of Systems Approach to Management
- Open or Closed Systems: Systems may live either opened upwardly or dosed. An opened upwardly scheme is 1 that is subject on the exterior surroundings for survival e.g., human trunk as a scheme is composed of many subsystems. This is an opened upwardly scheme as well as it must depend on exterior input as well as unloosen energy for survival. H5N1 scheme is considered closed if it does non interact with the environment. Physical as well as mechanical Systems are closed scheme because they are insulted from their external environment. Traditional organisation theorists regarded organisations as closed systems piece according to the modern catch organizations are opened upwardly systems, e'er interacting with the environment.
- Interdependent parts: H5N1 scheme is a prepare of interdependent parts which together cast a unitary whole that perform some function. An organisation is also a scheme which consists of 4 interdependent parts viz., task, structure, people as well as technology.
- Consideration of whole system: No component of the scheme tin dismiss live exactly analyzed as well as under-stood apart from the whole system. Conversely, the whole scheme cannot live exactly evaluated without agreement all its parts. Each component is related to every other part. It agency rather than dealing separately with the diverse parts of 1 organisation, the systems approach attempts to give the managing director a way of looking at the organisation as a whole. For example, inward monastic say to sympathize the operations of the finance or production or marketing departments, he must sympathize the fellowship as a whole. It is because activity of whatever 1 component of the fellowship affects the activity of every other part.
- Information, unloosen energy as well as material: Generally, at that spot are iii basic inputs that instruct into the processor of the scheme viz., information (technology), unloosen energy (motive power) as well as materials to live transformed into goods. If the output is service, materials are non included inward the inputs. If nosotros have got manufacturing company, output is goods or materials. If nosotros have got a consultancy firm, output is information or advice. if nosotros have got a mightiness generating company, output is energy.
- Defined boundaries: Each scheme including an organisation has its ain boundaries which separate it from other scheme inward the environment. For opened upwardly systems the boundaries are penetrable whereas for closed systems, they are not. The boundaries for closed systems are rigid. In a business concern organisation, it has many boundary contacts or 'interfaces' with many external scheme similar creditors, suppliers, customers, regime agencies etc. The scheme is within the boundary, the surroundings is exterior the boundary'.
- Synergy: Output of a scheme is e'er to a greater extent than than the combined output of its parts. This is called 'synergy’. In organizational terms, synergy agency when separate departments within an organisation cooperate as well as interact, they locomote to a greater extent than productive than if they had acted inward isolation e.g., it is surely to a greater extent than efficient for each subdivision to bargain with 1 secretarial subdivision than for each subdivision to have got a separate secretarial subdivision of its own.
- Feedback mechanism: H5N1 scheme tin dismiss adopt as well as adjust itself to the changing surroundings through the feedback mechanism. As operations of the scheme proceed information inward feedback to the appropriate people. This helps to assess the piece of work as well as if demand be, to instruct it corrected.
- Multidisciplinary approach: Systems approach integrates as well as uses with turn a profit ideas emerging from dissimilar schools of thought. Management freely draws concepts as well as techniques from many fields of written report such as psychology, sociology, ecology, economics, mathematics, statistics, operations research, systems analysis etc.
Important contributors to systems schoolhouse of direction include Chester Barnard, Ludwig Von Bertalanffy, Russell Ackoff, Kenneth Boulding as well as William Scott.
From 1960s onwards, the direction theorists as well as practitioners are referring direction concepts inward a systems phraseology. H5N1 scheme agency to convey together or to combine. When viewed from the systems angle, the organisation is seen as operating inward an opened upwardly scheme constantly interacting with its environment. It receives external inputs inward a continuous trend as well as transforms them into outputs. Suitable adjustments as well as rectifications are also made as per the feedback available. An organisation which is non adaptive as well as responsive to its surroundings volition non live or grow. An organisation volition have got individuals, groups, formal structures, goals as well as resources. H5N1 managing director has to catch that all these parts piece of work inward co-ordination inward monastic say to make organizational goals. Absence of co-ordination volition hamper the performance of the organisation. The systems approach suggests that the total performance of the organisation volition live effective only when the dissimilar systems/units/activities are coordinated as well as integrated inward an efficient manner. For example, efficient manufacturing partitioning needs the back upwardly of efficient marketing partitioning for achieving organizational objectives. If not, the total performance of the organisation volition live jeopardized. The managers, as decision-making entities, have got to regulate the sub-systems of the Organisation. They should non piece of work inward isolation but operate inward co-ordination with others.
This volition avoid shortfalls inward dissimilar components as well as convey success to the organisation. The emphasis of systems approach is on interrelatedness of the parts of an organisation. The introduction of integrated approach is treated as major contribution of systems theory.
The systems approach developed only afterward 1950 as well as is the recent contribution to direction thought. It stresses the interrelatedness as well as interdependence of all activities within an organization. The systems theory considers organisation as an open, adaptive scheme which has to adjust changes inward its environment. It defines organisation as a structured physical care for inward which individuals interact for attaining objectives.
Merits Of Systems Approach
Systems approach to direction is comparatively novel to the direction thought. This approach represents a refreshingly novel thinking on organisation as well as management. It stresses that managers should avoid analyzing problems inward isolation but should develop the skills for integrated thinking on direction problems. The systems approach provides a unified focus to organizational efforts. It provides a potent conceptual framework for meaningful analysis as well as agreement of organisations. Systems approach provides clues to the complex deportment of organisation.
The systems theory suggests to practicing managing director to study/analyze a exceptional chemical element past times taking into consideration its interacting consequences with other elements. H5N1 diversity of systems concepts as well as perspectives have got been developed for managers.
The systems approach rightly points out the role of 'synergy' inward management. Each subsystem derives strength past times its association as well as interaction with other sub-systems. As a result, the overall outcome is to a greater extent than than the total total of private contributions. The other contribution of systems theory is its handling of organisation as an opened upwardly system. The Organisation exhibits a 'holistic' character.
Limitations Of Systems Approach
- The systems approach is criticized on the Earth that it is as good abstract as well as vague. It is hard to apply it to practical problems straight as well as easily.
- The systems theory/approach fails to supply specific tools as well as techniques for the practicing executives/managers.
- The systems approach does non recognize differences inward systems. It fails to clearly seat the nature of interactions as well as interdependencies betwixt an Organisation as well as its external surroundings it also fails to offering a unified trunk of knowledge.
Contingency Management School / Contingency Approach to Management / Situational Approach
A mutual deficiency of the classical, behavioral as well as quantitative schools is that they have got stress 1 aspect of the organisation at the cost of others. The classical approach emphasizes on 'task' piece behavioral approach emphasizes on 'people’. The stress of quantitative approach is on 'mathematical decision-making’. However, it is hard to sympathize exactly which aspect is most useful as well as appropriate inward a given practical situation.This brings the demand to develop me broad conceptual framework that tin dismiss aid a managing director diagnose a job as well as determine which tool or tools volition best do the job. The systems approach as good as contingency approach supply 1 integrated approach to direction problems. The contingency/situational approach is the minute approach (the kickoff existence the systems approach) whichattempts to integrate the diverse schools of direction thought inward an orderly manner. The contingency direction approach is similar to known leadership theory called situational leadership theory. The contingency approach is applicable to leadership as good as to business concern management. This situational direction approach is relatively a novel approach to direction as well as is an extension of systems approach. The basic theme of contingency approach is that organisations have got to bargain with dissimilar situations inward dissimilar ways. There is no unmarried best way of managing applicable to all situations. In monastic say to live effective, the internal functioning of the organisation must live consistent with the needs as well as demands of the external environment. In other words internal organisation should have got the capacity to confront whatever type of external province of affairs with confidence.
Features of the Contingency / Situational Approach
- Management is exclusively situational. The direction has to exercise the measures/techniques as per the province of affairs from fourth dimension to time.
- Management should correspond its approach as per the requirements of the situation. The policies as well as practices used should live suitable to environmental changes.
- The success of direction depends on its mightiness to create do upwardly with its environment. Naturally, it has to brand special efforts to anticipate as well as encompass the possible environmental changes. Managers should realize that at that spot is no 1 best way to manage. They have got to exercise direction techniques as per the province of affairs which they face.
According to contingency approach, direction principles as well as concepts of dissimilar schools have got no universal/general applicability nether all situations. This agency these schools have got non suggested 1 best method of doing things nether all situations as well as at all times. The contingency approach has provided a solution to this situation.
As per the contingency approach, the task of managers is to attempt to seat which technique or method volition live most suitable for achieving the direction objectives nether the available situation. Managers have got to develop a sort of situational sensitivity as well as practical selectivity inward monastic say to bargain with their managerial problems as they develop from fourth dimension to time.
Contingency approach views are applicable inward designing organizational construction as well as inward deciding the grade of decentralization inward establishing communication as well as command systems as well as also inward deciding motivational as well as leadership approaches. In brief, the contingency approach is applicable to dissimilar areas of organisation as well as direction it is an endeavour to integrate diverse viewpoints as well as to synthesize diverse fragmented approaches to management.
The contingency approach is the outcome of the enquiry studies conducted past times Tom Burns as well as G. W. Stalker, James Thompson as well as others.
Merits of Contingency Approach
- Contingency approach is pragmatic as well as opened upwardly minded It discounts preconceived notions, as well as universal validity of principles.
- Theory relieves managers from dogmas as well as prepare principles. It provides freedom/choice to handle to guess the external surroundings as well as exercise the most suitable direction techniques. Here, importance is given to the judgment of the province of affairs as well as non the exercise of specific principles.
- The contingency approach has a wide-ranging applicability as well as practical utility in, organisation as well as management. It advocates comparative analysis of organisations to convey suitable adjustment betwixt organisation construction as well as situational peculiarities.
- The contingency approach focuses attending on situational factors that deport upon the direction strategy. The theory combines the mechanistic as well as humanistic approaches to fit particular/specific situation. It is superior to systems theory as it non only examines the relationships betwixt sub-systems of an organisation but also the human relationship betwixt the organisation as well as its external environment.
Limitations of Contingency Approach
- It is argued that the contingency approach lacks a theoretical base.
- Under contingency approach, a managing director is supposed to scream back through all possible alternatives as he has no dried principles to human activity upon. This brings the demand of to a greater extent than qualities as well as skills on the component of managers. The responsibleness of a managing director increases as he has to analyze the situation, examine the validity of dissimilar principles as well as techniques to the province of affairs at hand, brand right selection past times matching the technique to the province of affairs as well as finally execute his choice. The areas of functioning of a managing director are quite extensive nether this theory.
Contingency approach/theory is the latest add-on to existing direction theories. It was observed that dissimilar theories developed before are non applicable to all existent Earth situations developed since 1970. An opened upwardly as well as adaptable systems approach (also called contingency approach) is to a greater extent than convenient to bargain with complex direction problems. Contingency/ situational approach appears to live improve suited to atomic number 82 direction out of the nowadays direction theory jungle.
Contingency theories do non give special importance to whatever specific theory. It suggests that at that spot is no 1 best way to management. In the Contingency approach, what is best for a exceptional business concern unit of measurement or organisation or nether the available province of affairs is given special attention. Each province of affairs (before the management) is dissimilar as well as calls for a Contingency / situational approach. H5N1 managing director has to written report the complexity nether each situation. He has to adjust his policies/decisions as per his awareness. He has to determine what is best nether the available total province of affairs as well as human activity accordingly. He (manager) has to seat the technique which volition live most effective for achieving organisation objectives nether exceptional situation/ circumstances as well as human activity accordingly. This is the practical aspect of contingency approach. What constitutes best/effective direction varies with the organisations internal as well as external surroundings as well as the make-up of the organizational sub-systems. The best direction pattern depends on a number of interrelated internal as well as external variable factors unopen to the specific organisation/business unit.
The contingency approach falls somewhere inward betwixt the classical theory as well as systems theory. It provides a synthesis that brings together the best of aft segments of what Koontz has termed "management theory jungle". Contingency approach is practical progressive as well as activity oriented. It considers each organisation as unique as well as gives special attending to province of affairs unopen to it. Finally, it integrates theory with exercise inward a systems framework. The other theories (classical or systems) are non rejected inward the, contingency approach. However, they are viewed as incomplete, vague as well as unsuitable to all organisations as well as situations.
Question Bank
- Discuss the functions as well as nature of management.
- Explain the nature of direction process. Why direction physical care for is called social as well as consequential process?
- What are the principles as well as features of scientific direction of Taylor? Why did merchandise unions oppose scientific management?
- Discuss contributions of Elton Mayo to the evolution of direction thought?
- Discuss features of systems approach to management.
- What is management? Explain the characteristics of management.
- Explain the importance of direction inward the nowadays twenty-four hr menstruum business concern world.
Article Source: Study Notes, Semester I, 2009-2010