PART B
1. EVOLUTION OF MANAGEMENT THOUGHT and classical approach
The practice of management is as old as human civilization. The ancient civilizations of Egypt (the
great pyramids), Greece (leadership and war tactics of Alexander the great) and Rome displayed the
marvelous results of good management practices. The origin of management as a discipline was
developed in the late 19th century. Over time, management thinkers have sought ways to organize and
classify the voluminous information about management that has been collected and disseminated. These
attempts at classification have resulted in the identification of management approaches.
The approaches of management are theoretical frameworks for the study of management. Each of the
approaches of management is based on somewhat different assumptions about human beings and the
organizations for which they work.
The different approaches of management are
a) Classical approach,
b) Behavioral approach,
c) Quantitative approach,
d) Systems approach,
e) Contingency approach.
The formal study of management is largely a twentieth-century phenomenon, and to some degree the
relatively large number of management approaches reflects a lack of consensus among management
scholars about basic questions of theory and practice
a) THE CLASSICAL APPROACH:
The classical approach is the oldest formal approach of management thought. Its roots pre-date the
twentieth century. The classical approach of thought generally concerns ways to manage work and
organizations more efficiently. Three areas of study that can be grouped under the classical approach
are scientific management, administrative management, and bureaucratic management.
i) Scientific Management.
Frederick Winslow Taylor is known as the father of scientific management. Scientific management
(also called Taylorism or the Taylor system) is a theory of management that analyzes and synthesizes
workflows, with the objective of improving labor productivity. In other words, Traditional rules of
thumb are replaced by precise procedures developed after careful study of an individual at work.
(ii) Administrative Management.
Administrative management focuses on the management process and principles of management. In
contrast to scientific management, which deals largely with jobs and work at the individual level of
analysis, administrative management provides a more general theory of management. Henri Fayol is
the major contributor to this approach of management thought.
(iii) Bureaucratic Management.
Bureaucratic management focuses on the ideal form of organization. Max Weber was the major
contributor to bureaucratic management. Based on observation, Weber concluded that many early
organizations were inefficiently managed, with decisions based on personal relationships and loyalty.
He proposed that a form of organization, called a bureaucracy, characterized by division of labor,
hierarchy, formalized rules, impersonality, and the selection and promotion of employees based on
ability, would lead to more efficient management. Weber also contended that managers' authority in an
organization should be based not on tradition or charisma but on the position held by managers in the
organizational hierarchy.
2. SYSTEMS APPROACH MANAGEMENT:
The simplified block diagram of the systems approach is given below. The systems approach
focuses on understanding the organization as an open system that transforms inputs into
outputs. The systems approach began to have a strong impact on management thought in the
1960s as a way of thinking about managing techniques that would allow managers to relate
different specialties and parts of the company to one another, as well as to external
environmental factors. The systems approach focuses on the organization as a whole, its
interaction with the environment, and its need to achieve equilibrium.
A system is any set of distinct parts that interact to form a complex whole. Think of the
universe. Its parts are as small as a subatomic particle and as large as galactic clusters. Each
part is distinct but interacts to form the universe. An organization is also a system with parts
such as employees, assets, products, resources, and information that form a complex system.
Systems can be open or closed. A closed system is not affected by its environment
Features of System Approach
These are the features of system approach which are explained below:
• Open or Closed Systems
• Subsystem
• Synergy
• Defined Boundaries
• Feedback Mechanism
• Multidisciplinary
• Consideration of Whole System
• Input-Output System
Systems may be either open or closed: An open system is one, which depends on the outside
environment for survival. A closed system does not interact with the environment.
Subsystem
The full system is made up of many parts. Each of these parts is called a subsystem
Synergy
Synergy means that the whole is greater than the sum of its parts
Defined Boundaries
Each system has a boundary that separates it from its environment. In the case of a closed system, the
system boundary is rigid.
Feedback Mechanism
A system can adjust itself to the changing environment through the feedback mechanism. Feedback
helps the system to find out and correct its mistakes.
Multidisciplinary
Management system uses information from many disciplines such as psychology, sociology, ecology,
economics, mathematics, statistics, operations research, systems analysis, etc. Therefore, it is
multidisciplinary in nature.
Consideration of Whole System
No part of the system can be fully studied and understood without properly understanding all of its
parts.
Input-Output System
A business organization is an input-output system. Inputs consist of human, physical and financial
resources obtained from the environment. These resources are converted into outputs of products and
services.
Use of System Approach
The following are the use of system approach:
The system approach provides a holistic view of the organizations and emphasizes on their adaptive
nature
Application in Modern Organizations
• Integrated Planning
• Cross-Functional Teamwork
• Environmental Scanning
• Performance Monitoring
• Strategic Management.
• Project Management