Management - Introduction
Management
is the coordination of all resources through the process of planning,
organizing, directing, staffing and controlling in order to attain stated
objectives effectively and efficiently.
Effectively means doing the right task, completing activities and
achieving goals and efficiently means to attain objectives with least amount of
resources at a minimum cost. This process starts at the top and continues in more or less degree at
every level of the organization.
According
to Harold Koontz, “Management is an art of getting things done through others
and with formally organised groups."
According
to F.W. Taylor, “Management is an art of knowing what do you want to do and
then seeing that is is done in the best and cheapest way.”
According
to Henry Fayol, “To manage is to forecast, to plan, to organize, to command to
co-ordinate and control.
George
R. Terry, “Management is a distinct process consisting of planning, organizing,
actuating and controlling performance t determine and accomplish the objectives
by the use of people and resources,”
Thus
management may be defined as a process including various activities like
planning, organizing , directing, controlling
co-ordination etc in order to make optimum use of men machinery,
materials and money by way of preparing plans, policies and purposes, for
achieving organizational goals under healthy internal environment.
Nature or characteristics of Management:
On
the basis of critical analysis of
various definitions of management, the main features of management may
be stated as follows :
a) Management
is a process: Management is a continuous activity which
aims at making optimum use of the available resources like men, machinery,
materials, and money, for achieving organizational goals.
b) Management
deals with several functions: Management includes several functions
such as planning, organizing, staffing, directing co-ordinating, controlling,
motivating or actuating, controlling, decision making, leadership and
communication.
c) Management
is goal oriented: Every management activity is directed towards
achieving predetermined objectives of the organiation.
d) Management
is a group of organized activities: Management plans, organizes,
co-ordinates, directs and controls the group efforts so as to achieve
organizational goals efficiently and effectively.
e) Management
is basically a factor of production: The factors of production include
land, labour, capital and entrepreneurs.
A manager or entrepreneur mobilizes resources like land, labour and
capital to produce’ output to satisfy needs of the society and earn profit.
f) Management
is a discipline: Management , although borrows several concept
for other social sciences, it has developed its own body of principles and
theories so as to become a special discipline or subject of study for potential
managers.
g) Management
is a science and also an art: Science
is defined as a systematized body of knowledge and it uses scientific methods
of observation measurement, experimentation etc. Its principles are exact and university
applicable. Management has systematized body of knowledge and its principles
are evolved on the basis of
observation. But management being a social science, it is not an exact
science. So management is a soft or inexact
science.
Art
refers to the way of doing specific things i.e. it indicates “ how an objective
is to be achieved. it is the know-how to
achieve the desired results. Art needs
continuous practice to reach the level of perfection. An art is application of science. Thus art
and science are interrelated in the sense that putting scientific principles
into practice requires art, which needs special knowledge and skills.
Management
is both a science as well as an art. The
science of management provides certain principles that can guide managers in
the professional efforts, while the art of management deals with tackling every
situation in an effective manner.
Planning and organizing emphasize the science of management while
direction, communication motivation coordination and control emphasize art of
management. Getting work done through
people is an art of management.
h) Management
is dynamic: Under dynamic environment management faces several challenges
hence efforts are made to develop and use new techniques for managing the
organizations effectively and efficiently.
as social change takes place, management also changes to overcome the
problems whenever they arise.
i)
Management is a Profession:
Profession is an occupation for which specialized skills and training are
required and these skills are used not for private profit but for the larger
interests of the society. There is a
professional body to control the behaviour of its members. At present management is not a full fledged
profession but it is heading towards becoming a profession.
SCOPE OF MANAGEMENT
The
scope of management is very wide. According to Herbison and Myers, it refers to
three distinct ideas. They are:
a) As an
Economic Resource: The effective use if the five M’s of management, i.e.,
money, material, manpower, machinery and method depends on the quality of
management. In other words, how effectively and economically the five M’s are
combined together to produce desired results.
b) As a
System of Authority: According to Herbison and Myers, management is the
rule-making and rule-enforcing body. It is bound together by a web of
relationships between superiors and subordinates, that is, people are bound by
the authority relationships.
c) As a Class
or Elite: The management class has become very important in modern organization
owing to its contribution to business success. As a separate group, the term
management refers to the group of individuals occupying managerial positions.
Functions/Elements of Management
According
to Henry Fayol, in every organization manager perform certain functions to
achieve results. These functions are broadly classified under five categories:-
a)
Planning: Planning is a process of making
decision about future. It provides direction to enterprise activities. Its work
is to decide in advance what is to be done, when and where it is to be done,
how it is to be done and by whom. The main functions of planning are Set up
goals, Forecasting, Search for alternatives source of action and Budgeting.
b)
Organizing: It is concerned with the
arrangement of an organization’s resources – people, material, technology and
finances in order to achieve enterprise objective. The main functions of
organizing are Job design, Job specification and Authority and responsibility.
c)
Staffing: Staffing is the function of
employing suitable personas for the enterprise. It may be defined as an
activity where people are recruited, selected, trained, developed, motivated
and compensated for manning various positions.
d)
Directing: According to Dale, direction is
telling people what to do and seeing that they do it to the best of their
ability. Directing is a function of guiding and supervising the activities of
sub ordinates. The four main elements of directing are:-
1. Leadership: It is a process of influencing the action of a
person or a group to attain desired objectives. The success of an organization
depends upon the quality of leadership shown by its managers.
2. Motivation: It is the process of stimulating people to take
desired courses of action. It is to inspire, encourage and impel people to take
required action.
3. Communication: It is a way of reaching other with ideas, facts,
and thoughts. Effective communication is important in organization because
managers Can achieve very little without it.
e)
Controlling: It is the management function
concerned with monitoring employee’s activities, keeping the organization on
track towards its goals, and making corrections as required. It include four
things:
Ø
setting standard of performance;
Ø
measuring actual performance;
Ø
comparing actual performance against the
standard ;
Ø
taking corrective actions to ensure goal
accomplishment.
IMPORTANCE/SIGNIFICANCE/OBJECTIVES OF MANAGEMENT
According
to Drucker, management is the dynamic life giving element in every
organization. In its absence, an organization is merely a collection of men,
machines, money and material. The importance of management is:-
a) Optimum
Use of Resources: Management ensures optimum utilization of resources by
attempting to avoid wastage of all kinds. It helps in putting the resources to
the best advantage.
b) Effective
leadership and Motivation: In the absence of management, the working of an
enterprise will become random and haphazard in nature. Management creates
teamwork and motivates employees to work harder and better by providing
guidance, counseling and effective leadership.
c) Establish
Sound Industrial Relations: Management minimizes industrial disputes and
contributes to sound industrial relations in an undertaking. Industrial peace
is an essential requirement for increasing productivity.
d) Achievement
of Goals: Objectives can be achieved only when the human and non human
resources are combined in a proper way. Managers plan carefully, organize the
resources properly, hire competent people, and provide necessary guidance. Thus
management is goal oriented.
e) Reduces Costs - It gets maximum results through minimum
input by proper planning and by using minimum input & getting maximum
output. Management uses physical, human and financial resources in such a
manner which results in best combination. This helps in cost reduction.
f) Establishes Equilibrium - It enables the organization to survive
in changing environment. It keeps in touch with the changing environment. With
the change is external environment, the initial co-ordination of organization
must be changed. So it adapts organization to changing demand of market /
changing needs of societies. It is responsible for growth and survival of
organization.
g) Essentials for Prosperity of Society - Efficient management leads to
better economical production which helps in turn to increase the welfare of
people. Good management makes a difficult task easier by avoiding wastage of
scarce resource. It improves standard of living.
Levels of Management
There are three levels of management which are
given below:
1. The Top Management: It
consists of board of directors, chief executive or managing director. The top management
is the ultimate source of authority and it manages goals and policies for an enterprise.
It devotes more time on planning and coordinating functions. The role of the
top management can be summarized as follows:
a)
Top management lays down the objectives and
broad policies of the enterprise.
b)
It issues necessary instructions for
preparation of department budgets, procedures, schedules etc.
c)
It prepares strategic plans & policies for
the enterprise.
d)
It appoints the executive for middle level
i.e. departmental managers.
e)
It controls & coordinates the activities
of all the departments.
f)
It is also responsible for maintaining a
contact with the outside world.
g)
It provides guidance and direction.
h)
The top management is also responsible towards
the shareholders for the performance of the enterprise.
2. Middle Level Management: The
branch managers and departmental managers constitute middle level. They are responsible
to the top management for the functioning of their department. They devote more
time to organizational and directional functions. In small organization, there
is only one layer of middle level of management but in big enterprises, there
may be senior and junior middle level management. Their role can be emphasized
as:
a)
They execute the plans of the organization in
accordance with the policies and directives of the top management.
b)
They make plans for the sub-units of the
organization.
c)
They participate in employment & training
of lower level management.
d)
They interpret and explain policies from top
level management to lower level.
e)
They are responsible for coordinating the
activities within the division or department.
f)
It also sends important reports and other
important data to top level management.
g)
They evaluate performance of junior managers.
h)
They are also responsible for inspiring lower
level managers towards better performance.
3. Lower Level Management: Lower
level is also known as supervisory / operative level of management. It consists
of supervisors, foreman, section officers, superintendent etc. According to
R.C. Davis, “Supervisory management refers to those executives whose work has
to be largely with personal oversight and direction of operative employees”. In
other words, they are concerned with direction and controlling function of
management. Their activities includes:
a) Assigning
of jobs and tasks to various workers.
b) They guide
and instruct workers for day to day activities.
c) They are
responsible for the quality as well as quantity of production.
d) They are
also entrusted with the responsibility of maintaining good relation in the organization.
e) They
communicate workers problems, suggestions, and recommendatory appeals etc to
the higher level and higher level goals and objectives to the workers.
f) They help
to solve the grievances of the workers.
g) They
supervise & guide the sub-ordinates.
h) They are
responsible for providing training to the workers.
i)
They arrange necessary materials, machines,
tools etc for getting the things done.
j)
They prepare periodical reports about the
performance of the workers.
k) They
ensure discipline in the enterprise.
l)
They motivate workers.
m) They are
the image builders of the enterprise because they are in direct contact with
the workers.
Difference between Various levels of Management
Points
of Difference
|
Top
Level Management
|
Middle
Level Management
|
Lower
Level Management
|
i. Time Range
|
It covers span of period
|
It covers intermediate range
|
It is concerned with short period
|
ii. Skills
|
It requires creative skills
|
It needs persuasive skills
|
It is concerned with operative skills
|
iii. Evaluation
|
It is difficult to evaluate its achievement
|
It is less difficult to evaluate its performance
|
It is easy to evaluate its performance
|
iv. Persons
|
It involves few persons
|
It concerns moderate number of persons
|
It is concerned with large number of persons
|
v. Policy formulation
|
It is concerned with the formulation of policies
to a greater extent
|
It is moderately concerned with policy formulation
|
It is least concerned with policy formulation
|
CONTRIBUTION OF FAYOL AND TAYLOR
F.W. Taylor and Henry Fayol are generally regarded as the founders
of scientific management and administrative management and both provided the
bases for science and art of management.
Taylor's Scientific Management
F.W.
Taylor is one of the founders (the other two are Max Weber and Henry Fayol) of
classical thought/classical theory of management. He suggested scientific
approach to management also called scientific management theory. Frederick Winslow Taylor well-known as the founder of
scientific management was the first to recognize and emphasis the need
for adopting a scientific approach to the task of managing an enterprise.
He tried to diagnose the causes of low efficiency in industry and came to the
conclusion that much of waste and inefficiency is due to the lack of order
and system in the methods of management. He found that the management
was usually ignorant of the amount of work that could be done by a
worker in a day as also the best method of doing the job. As a result,
it remained largely at the mercy of the workers who deliberately shirked work.
He therefore, suggested that those responsible for management should
adopt a scientific approach in their work, and make use of
"scientific method" for achieving higher efficiency. The scientific
method consists essentially of:
a) Observation
b) Measurement
c) Experimentation
and
d) Inference.
He advocated a thorough planning of the job by the management and
emphasized the necessity of perfect understanding and co-operation between the
management and the workers both for the enlargement of profits and the use of
scientific investigation and knowledge in industrial work. He summed up his
approach in these words:
a) Science,
not rule of thumb
b) Harmony,
not discord
c) Co-operation,
not individualism
d) Maximum
output, in place of restricted output
e) The
development of each man to his greatest efficiency and prosperity.
Elements of Scientific Management: The
techniques which Taylor regarded as its essential elements or features may be
classified as under:
1. Scientific Task and Rate-Setting (work study): Work
study may be defined as the systematic, objective and critical examination of
all the factors governing the operational efficiency of any specified activity in
order to effect improvement. Work study includes.
(a) Methods Study: The management should try to ensure that
the plant is laid out in the best manner and is equipped with the best tools
and machinery. The possibilities of eliminating or combining certain operations
may be studied.
(b) Motion Study: It is a study of the movement, of an
operator (or even of a machine) in performing an operation with the purpose of
eliminating useless motions.
(c) Time Study (work
measurement): The basic purpose of time study is to determine the proper
time for performing the operation. Such study may be conducted after the motion
study. Both time study and motion study help in determining the best method of
doing a job and the standard time allowed for it.
(d) Fatigue Study: If, a standard task is set without providing
for measures to eliminate fatigue, it may either be beyond the workers or the
workers may over strain themselves to attain it. It is necessary, therefore, to
regulate the working hours and provide for rest pauses at scientifically determined
intervals.
(e) Rate-setting: Taylor recommended the differential piece
wage system, under which workers performing the standard task within prescribed
time are paid a much higher rate per unit than inefficient workers who are not
able to come up to the standard set.
2. Planning the Task: Having set the task which an average
worker must strive to perform to get wages at the higher piece-rate, necessary
steps have to be taken to plan the production thoroughly so that there is no
bottlenecks and the work goes on systematically.
3. Selection and Training: Scientific Management requires a
radical change in the methods and procedures of selecting workers. It is
therefore necessary to entrust the task of selection to a central personnel
department. The procedure of selection will also have to be systematised. Proper
attention has also to be devoted to the training of the workers in the correct
methods of work.
4. Standardization: Standardization may be introduced in
respect of the following.
(a) Tools and equipment: By standardization is meant the
process of bringing about uniformity. The management must select and store
standard tools and implements which will be nearly the best or the best of
their kind.
(b) Speed: There is usually an optimum speed for every
machine. If it is exceeded, it is likely to result in damage to machinery.
(c) Conditions of Work: To attain standard performance, the
maintenance of standard conditions of ventilation, heating, cooling, humidity,
floor space, safety etc., is very essential.
(d) Materials: The efficiency of a worker depends on the
quality of materials and the method of handling materials.
5. Specialization: Scientific management will not be
complete without the introduction of specialization. Under this plan, the two
functions of 'planning' and 'doing' are separated in the organization of the
plant. The `functional foremen' are specialists who join their heads to give thought
to the planning of the performance of operations in the workshop. Taylor
suggested eight functional foremen under his scheme of functional foremanship.
(a) The Route Clerk: To lay down the sequence of operations
and instruct the workers concerned about it.
(b) The Instruction Card Clerk: To prepare detailed
instructions regarding different aspects of work.
(c) The Time and Cost Clerk: To send all information
relating to their pay to the workers and to secure proper returns of work from
them.
(d) The Shop Disciplinarian: To deal with cases of breach
of discipline and absenteeism.
(e) The Gang Boss: To assemble and set up tools and machines
and to teach the workers to make all their personal motions in the quickest and
best way.
(f) The Speed Boss: To ensure that machines are run at
their best speeds and proper tools are used by the workers.
(g) The Repair Boss: To ensure that each worker keeps his
machine in good order and maintains cleanliness around him and his machines.
(h) The Inspector: To show to the worker how to do the
work.
6. Mental Revolution: At present, industry is divided into
two groups – management and labour. The major problem between these two groups is
the division of surplus. The management wants the maximum possible share of the
surplus as profit; the workers want, as large share in the form of wages.
Taylor has in mind the enormous gain that arises from higher productivity. Such
gains can be shared both by the management and workers in the form of increased
profits and increased wages.
Henry Fayol's 14 Principles of
Management:
The principles of management are given below:
a. Division
of work: Division of work or specialization alone can give
maximum productivity and efficiency. Both technical and managerial activities
can be performed in the best manner only through division of labour and
specialization.
b. Authority
and Responsibility: The right to give order is called
authority. The obligation to accomplish is called responsibility. Authority and
Responsibility are the two sides of the management coin. They exist together.
They are complementary and mutually interdependent.
c. Discipline:
The objectives, rules and regulations, the policies and procedures
must be honoured by each member of an organization. There must be clear and
fair agreement on the rules and objectives, on the policies and procedures.
There must be penalties (punishment) for non-obedience or indiscipline. No
organization can work smoothly without discipline – preferably voluntary
discipline.
d. Unity
of Command: In order to avoid any possible confusion and conflict,
each member of an organization must received orders and instructions only from
one superior (boss).
e. Unity
of Direction: All members of an organization must work together to
accomplish common objectives.
f.
Emphasis on Subordination of
Personal Interest to General or Common Interest: This
is also called principle of co-operation. Each shall work for all and all for
each. General or common interest must be supreme in any joint enterprise.
g. Remuneration:
Fair pay with non-financial rewards can act as the best incentive
or motivator for good performance. Exploitation of employees in any manner must
be eliminated.
h. Centralization:
There must be a good balance between centralization and
decentralization of authority and power. Extreme centralization and
decentralization must be avoided.
i.
Scalar Chain: The
unity of command brings about a chain or hierarchy of command linking all
members of the organization from the top to the bottom. Scalar denotes steps.
j.
Order: Fayol
suggested that there is a place for everything. Order or system alone can create
a sound organization and efficient management.
k. Equity:
An organization consists of a group of people involved in joint
effort. Hence, equity (i.e., justice) must be there. Without equity, we cannot
have sustained and adequate joint collaboration.
l.
Stability of Tenure: A
person needs time to adjust himself with the new work and demonstrate
efficiency in due course. Hence, employees and managers must have job security.
Security of income and employment is a pre-requisite of sound organization and
management.
m. Esprit
of Co-operation: Esprit de corps is the foundation
of a sound organization. Union is strength. But unity demands co-operation.
Pride, loyalty and sense of belonging are responsible for good performance.
n. Initiative:
Creative thinking and capacity to take initiative can give us
sound managerial planning and execution of predetermined plans.
Difference
between contribution of Taylor and Fayol
Both
the persons have contributed to development of science of management. The
contribution of these two pioneers in the field of science of management has
been reviewed as “The work of Taylor & Fayol was, of course, especially
complementary. They both realized that problem of personnel & its
management at all levels is the key to individual success. Both applied
scientific method to this problem that Taylor worked primarily from operative
level, from bottom to upward, while Fayol concentrated on managing director and
work downwards, was merely a reflection of their very different careers”. They
both differ from each other in following aspects:
Basis
|
Taylor’s
Approach
|
Fayol’s
Approach
|
a) Human Aspect
|
Taylor disregards human elements and there is more stress on
improving men, materials and methods.
|
Fayol pays due regards on human element. E.g. Principle of
initiative, Espirit De’ Corps and Equity recognizes a need for human
relations.
|
b) Status
|
Father of scientific management.
|
Father of management principles
|
c) Efficiency and Administration
|
Stressed on efficiency.
|
Stressed on general administration.
|
d) Approach
|
It has micro-approach because it is restricted to factory only.
|
It has macro-approach and discuses general principles of
management which are applicable in every field of management.
|
e) Scope of Principles
|
These principles are restricted to production activities.
|
These are applicable in all kinds of organization regarding
their management affairs.
|
f) Achievement
|
Scientific management
|
Administrative management
|
Evolution of management thoughts
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 are based on somewhat different assumptions about human beings and
the organizations for which they work. The different approaches of management
are:
a) Early management approaches
represented by scientific management (Classical approach or Theories)
b) Modern management approaches
represented by behavioral science movement, quantitative approach, systems approach
and Contingency approach (Neo-classical approach or theories)
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.
b) Neo-classical approach: It can be
studied under the following headings:
a)
THE BEHAVIORAL Or SITUATIONAL APPROACH: The behavioral approach of management
thought developed, in part, because of perceived weaknesses in the assumptions
of the classical approach. The classical approach emphasized efficiency,
process, and principles. Some felt that this emphasis disregarded important
aspects of organizational life, particularly as it related to human behavior.
Thus, the behavioral approach focused on trying to understand the factors that
affect human behavior at work.
(i)
Human Relations: The Hawthorne Experiments began in 1924 and continued through
the early 1930s. A variety of researchers participated in the studies,
including Elton Mayo. One of the major conclusions of the Hawthorne studies was
that workers' attitudes are associated with productivity. Another was that the
workplace is a social system and informal group influence could exert a
powerful effect on individual behavior. A third was that the style of
supervision is an important factor in increasing workers' job satisfaction.
(ii)
Behavioral Science: Behavioral science and the study of organizational behavior
emerged in the 1950s and 1960s. The behavioral science approach was a natural
progression of the human relations movement. It focused on applying conceptual
and analytical tools to the problem of understanding and predicting behavior in
the workplace. The behavioral science approach has contributed to the study of
management through its focus on personality, attitudes, values, motivation,
group behavior, leadership, communication, and conflict, among other issues.
b)
THE QUANTITATIVE APPROACH: The quantitative approach focuses on improving
decision making via the application of quantitative techniques. Its roots can
be traced back to scientific management.
(i)
Management Science: Management science (also called operations research) uses
mathematical and statistical approaches to solve management problems. It
developed during World War II as strategists tried to apply scientific
knowledge and methods to the complex problems of war. Industry began to apply
management science after the war. The advent of the computer made many management
science tools and concepts more practical for industry
(ii) Production And Operations Management: This
approach focuses on the operation and control of the production process that transforms
resources into finished goods and services. It has its roots in scientific
management but became an identifiable area of management study after World War
II. It uses many of the tools of management science. Operations management
emphasizes productivity and quality of both manufacturing and service
organizations. W. Edwards Deming exerted a tremendous influence in shaping
modern ideas about improving productivity and quality. Major areas of study
within operations management include capacity planning, facilities location,
facilities layout, materials requirement planning, scheduling, purchasing and
inventory control, quality control, computer integrated manufacturing,
just-in-time inventory systems, and flexible manufacturing systems.
c)
SYSTEMS APPROACH: 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.
d)
CONTINGENCY APPROACH: The contingency approach focuses on applying management
principles and processes as dictated by the unique characteristics of each
situation. It emphasizes that there is no one best way to manage and that it
depends on various situational factors, such as the external environment, technology,
organizational characteristics, characteristics of the manager, and characteristics
of the subordinates. Contingency theorists often implicitly or explicitly
criticize the classical approach for its emphasis on the universality of
management principles; however, most classical writers recognized the need to
consider aspects of the situation when applying management principles.
Distinction
between classical neoclassical approaches:
Basis
|
Classical
Approach
|
Neo Classical
Approach
|
a) Focus
|
Funcitons and economic demand of worker
|
Emotion and human qualities of workers
|
b) Structure
|
Impersonal and mechanistic
|
Social system
|
c) Application
|
Autocratic amanagement and strict rule
|
Democratic process
|
d) Emphasize
|
Discipline and rationality
|
Personal security and social demand
|
e) Work Goal of worker
|
Maximum remuneration and reward
|
Attainment of organisation goal
|
f) Concept about men
|
Economic being
|
Social being
|
g) Content
|
Scientific management, administrative
management and bureaucratic management
|
Human relation movement and organisational
behaviour
|
h) Relation
|
Formal
|
Informal
|
i) Nature
|
Mechanistic
|
Organisitic
|