PGDRM&PGDBM SEMESTER I

APPROACHES TO MANAGEMENT
TOTAL NUMBER OF HOURS TOTAL NUMBER OF SESSIONS [2 HOURS] 50 25

APPROACHES TO MANAGEMENT
[ 2 HOURS / I SESSION ]

INTRODUCTION CONCEPTS UNDERLYING APPROACH : Elements of science Theory Role of management theory Management techniques APPROACHES TO ANALYSE MANAGEMENT STYLES Empirical approach : Inter personal behavior : Group behavior : Cooperative social system : Socio technical systems :

 Decision theory : Systems approach : Management science approach : Contingency or situational : Mckinseys 7-5 framework : Operational approach: OPERATIONAL OR MANAGEMENT PROCESS APPROACH : Systems approach to operational management Inputs and claimants Managerial transformation process Communication system External variables Out puts Reenergizing the system

 CONTINGENCY OR SITUATIONAL APPROACH Features of contingency approach Systems approach to management SUMMARY PEOPLE EXPRESS CASE STUDY QUESTIONS

APPROACHES TO MANAGEMENT
(Elements of science )Scientific approach Requires clear concepts mental images of anything formed by generalization from particulars. Word and terms should be exact relevant to the things being analyzed. From this base scientific method involves the determination of facts through observation. When these generations or hypothesis validated they are called principles. Have value in predicting what will happen in similar circumstances principles not always true but valid enough to be used for prediction. Theory - Systematic grouping of interdependent concepts and principles which give framework to significant area of knowledge.

 Role of management theory Role of theory in management is to provide a means of classifying significant and pertinent management knowledge. In designing an effective organisation structure number of inter related principles give guidance. Principles in management are fundamental truths explaining relationship between two or more set of variable. Principle may be descriptive or predictive not prescriptive. E g Parkinson's law ---work tends to expand to fill time available ( even if true manager cannot lengthen time for work to be completed

 Management techniques Techniques are essentially ways of doing things methods of accomplishing a given result. Even in management techniques as follows have been developed. PERT : Program evaluation and review technique budgeting, cost accounting. Techniques normally reflect theory and are a means of helping managers undertake activities most effectively.

APPROACHES TO ANALYSIS MANAGEMENT STYLE

Characteristics Empirical approach : Studies experience through cases. Identifies successes and failures. Inter personal behavior : Focus on inter personal behavior. Human relations leadership and motivation. Based on individual psychology. Limitations Situations are different no attempt to identify. Limited value for developing management theory. Ignores planning organizing and controlling. Psychological training not enough to become effective manager.

Characteristics Group behavior : Emphasis on behavior of people in group. Based on sociology and social psychology. Primarily study of group behavior patterns often called OB Cooperative social system : Concerned with both inter personal and group behavior. Leading to a system of cooperation. Expanded concept includes any cooperative with a clear purpose.

Limitations Often not integrated with management concepts principles theory and techniques. Need for closer integration with organisation structure design planning and staffing.

Two broad a filed for the study of management. At the same time overlooks many managerial concepts principles and techniques

Characteristics Limitations Socio technical systems : Technical system has a great Emphasis only on blue collar effect on social system and lower level office work. (attitudes group behavior) Ignores much of other Focus on production office managerial knowledge. operations other areas with close relationships between technical system and people. Decision theory : Focus on making of decisions. More to managing than Persons or groups make decisions making decisions. and decision making process. Focus at the same time too Some theories use decision narrow and too wide. making as a spring board to study all enterprise activities. Boundaries of study not clearly defined.

Characteristics Limitations Systems approach : Systems concepts have board Analysis of inter relatedness applicability. of systems and subsystems. Systems have boundaries but also interactions of organizations interact with external environment with external environment that is organisations are open hardly new approach to systems. management. Recognize importance of studying inter relatedness of planning organizing and controlling in an organisation as well as many sub systems.

Characteristics Management science approach : Management seen as mathematical processes, concept, symbols and models. Looks at management as a purely logical process expressed in mathematical symbols and relationship. Contingency or situational : Original study consisted of observations of five cases. Basis of this ten managerial roles identified and grouped into interpersonal informational decision roles.

Limitations Preoccupation with models. Many aspects in management cannot be modeled. Mathematics a use full tool but not a school or new approach to management. Original samples very small. Some activities not managerial. Activities are evidence of planning, organizing, leading and controlling. Some important activities like appraisal left out.

Characteristics Mckinseys 7-5 framework : Strategy structure systems style staff shared values skills.(

Limitations The framework conforms to practical application. Terms used are not precise.

Operational approach: Draws together concepts principles Dose not identify techniques and knowledge from Representing or other fields and managerial coordination as a separate approaches. function. Attempt to develop science and Coordination is essence of theory with practical application. manager ship and purpose of Distinguished between managerial managing. and non managerial knowledge. Develops classification system built around managerial functions.

Understanding various approaches makes it possible to relate to and view on management by different interpretations

OPERATIONAL OR MANAGEMENT PROCESS APPROACH

Operational approach draws on all others and integrates them systematically. This approach attempts to bring together pertinent knowledge of management by relating to managerial job - what managers do. Recognizes central core of knowledge about managing pertinent only to field of management. Matters like line and staff appraisal techniques involve concept and theory is situations involving managers only.

 Also this system draws on and absorbs knowledge from other fields, including systems theory decision motivation and leadership theories. Fayol first person who attempted to organize management knowledge around functions. Though fundamentals of management universal its application will vary depending on levels of managers and station.

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SYSTEMS APPROACH TO OPERATIONAL MANAGEMENT INPUT OUTPUT MODEL

Reenergizing The System Transformation Process External Environment

Inputs

Outputs

SYSTEMS APPROACH TO OPERATIONAL MANAGEMENT

Organized enterprise does not exist in vacuum dependant on external environment. Part of larger systems such as industry to which it belongs economic system and society. Thus enterprise receives inputs transforms them exports outputs to the environment (morel refers ). However simple model needs to be expanded to an operational model of management. Indicates how various inputs are trans formed through managerial functions of planning organizing staffing leading and controlling. Any organisation deeds to described by an opensystem model that includes interactions between enterprise and its external environment (model refers)

INPUTS AND CLAIMANTS

Inputs from external environment may include people capital managerial technical knowledge skills. Also internal and external customers wig make demands. Other claimants include financial institutes and unions even competitors. Managers job to interrelate legitimate objectives of claimants.

MANAGERIAL TRANSFORMATION PROCESS

Task of managers to transform inputs in an efficient and effective manner. Transformation process can be viewed from different perspectives. One follies on such diverse functions finance production personnel and marketing others as approaches to management. Another follies on inter personal relationships social systems. Most comprehensive approach is use of managerial functions (model).

COMMUNICATION SYSTEM
Communication essential to all phases of the managerial process for two reasons. Integrates managerial functions objectives set in planning are communicated so that appropriate organisation structure can be devised. Communication is essential in selection appraisal and training of managers to fill the role in stricture. Effective leadership and creation of conducive environment conducive to motivate depend on communication. Lastly communication enables conforming events to plans.

 Second purpose of the communication system is to like the enterprise with its external environment where many claimants are - customer for existence of company. Through communication system that needs of customer are identified; this knowledge enables firm to provide and service at profit. Also become aware of competition potential threats and constraining factors.

EXTERNAL VARIABLES
Effective managers scan external environment. No power to change no alternative to respond.

OUT PUTS
Task of managers to secure and utilize inputs to the enterprise to transform them through managerial functions - with due consideration for external variables - to out puts. Although outputs will vary with the enterprise usually include products, services, profits, satisfaction and integration of goals of various claimants to the enterprise. Organisations must provide satisfactions if it hopes to retain and elicit contributions from its members.

 Must contribute to the satisfaction not only of basic material needs but also needs for affixation acceptance esteem and perhaps self actualisation to use ones fill potential. Another output is goal integration different claimants to the enterprise have very divergent - often directly opposing objectives managers task to resolve conflicts and integrate aims.

REENERGIZING THE SYSTEM

Important to note that in the systems model some of the outputs become inputs again thus satisfaction becomes important human input. Similarly profits surplus of income over costs are reinvested in cash in capital goods,machinery, equipment, inventory.

CONTINGENCY OR SITUATIONAL APPROACH

Need to resolve issues based on prevailing situation. Managers to change any part of organisation must try to change situation influencing it. Basis of contingency theory is that no single best solution. Contingency approach is where behavior of one / more subunits is dependant on its environment relationships to other subunits having influence or control. Contingency seeks to understand the titer relationship within and amongst subunits as well between organisation and its environment and define patterns of relationships of variables. Ultimately directed towards suggesting organisation designs and managerial actions most appropriate for specific situations.

FEATURES OF CONTINGENCY APPROACH

No one best way managers should prepare strategies according to prevailing situation. Managerial action is situational to outside the system or sub systems. No action can be universal because of specific relationship between organisation and environment action varies as per situation. Contingency model is developing effective information and communication system.

SYSTEMS APPROACH TO MANAGEMENT

Goal inputs of claimants Employees : Stake Holders Consumers : Government Suppliers : Community : Other

External environment

Inputs Human, Capital Managerial Technological

Managerial Knowledge Goals of Claimants Use of Inputs (Basis of Management Theory)

Organizing Staffing Leading

To Produce Outputs

Controlling

External environment

Outputs : Profit, Service, Products, Goal Integration, Satisfaction

Facilitated by Communication that Also Links Organisation with External Environment Domestic International

Planning

External Variables and Info Opportunities, Constraints Other

Reenergizing The System

SUMMARY
Management is the process of designing and maintaining an environment for purpose of efficiently accomplishing selected aims. Hangers carry out the functions of planning, organizing, staffing, leading and controlling. Managing is an essential activity at all organizational levels. Goal of all managers is to create surplus and to be productive that is achieve favorable output input ratio with in a specific time period, pus consideration to quality. Productivity implies effectiveness (achieving objectives) and efficiency (least resources). Managing as a practice is an art organized knowledge about management is science.

 Development of management theory involves development of concepts, principles, and techniques. There are many approaches to management each with own characteristics, advantages and limitations. Operational management process draws on each school and systematically integrates them. Organisation is an open system that operates within and interacts with environment. Systems approach includes inputs from external environment and claimants the trans formation process communication system, external factors, outputs and a way to energize the system. Contingency theory asserts that there is no best one way managers actions depend on environmental and situational factors.

PEOPLE EXPRESS
Donald Burn the founder and chairperson on People Express has been hailed in his attempt to build a more humane organization. His leadership style was changing as organisation grew. Managers had a distinct managerial style; hard driving, but giving employees a great deal of freedom. All employees were expected to carry out a variety of tasks. Pilots assisted in handling baggage even top Executive rotate jobs to learn major aspects of business. After company expanded and had its first losses.

QUESTION
Is managing science or art could same explanation apply to engineering or accounting. Identify the various approaches to management discuss characteristics, limitations and advantages of each. Discuss the systems approach is it an open or closed system.