anagement affecting people, technology, values and human wants

has attracted the attention of psychologists, anthropologists,

sociologists, mathematicians, economists, politicians, scientists,
physicists, biologists, business administration scholars and even
practising managers.
As a result, various schools of management thought, each employing
certain beliefs, views and disciplines, have come into existence.

Approaches to
Management: Classical, Modern, Scientific,
System and Behavioural Science Approach
Approaches to Management – Developed to Explain
the Nature and Technique of Managerial Practices
A number of approaches have been developed to explain the nature
and technique of managerial practices.
They are briefly described below:
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1. The Empirical or Case Approach Management by Custom

School:
This is based on the belief that, experience is the best guide to
knowledge. This approach analyses management by studying the case
histories of successful managers. A study of the successes and failures
of outstanding managers is made. Whenever a problem arises, the
managers would seek guidance by referring to the experience of those
managers who would have solved similar problems. Thus, no new
strategy is evolved and little effort is made to blaze new trails. Further,
it is forgotten that what fits one enterprise may not fit another.
2. The Interpersonal Behaviour Approach (Behaviour
School):
Since management involves getting things done through people, this
approach concentrates on the human aspects of management. This
school believes that when people work together to accomplish
objectives, people should understand one another. This seeks to solve
problems by applying psychology to management. Thus, this approach
lays emphasis on the importance of leadership, motivation of people at
work and the influence of work environment.
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3. The Group Behaviour Approach (Social School):

This approach is concerned primarily with the behaviour among
individuals. Persons belonging to a particular social group have
common feelings and attitudes and they form an informal
organization. Problems created by them cannot be resolved by
authorities in the formal organization. This school of thought,
therefore, attaches importance to the need for cooperation and
positive interaction among such groups of people so that work flow
will be smooth.
4. The Operational Approach (Management Process School):
This approach views management as an activity based on certain
unique management functions. Management is regarded as a process
for getting things done through the functions of planning, organizing,
staffing, leading and controlling. It involves coordination of human
and material resources.
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These functions of management are universal regardless of the type of

enterprise. According to this school of thought, management no doubt
makes use of other social and biological sciences; but they are made
use of only to the extent they are relevant and that the fundamental
functions of management as stated above constitute the core of
management study.
5. The Decision Theory Approach:
This approach concentrates on the decision making function of
management. According to this, the central focus of management is on
decision making. The decision of what to achieve, and how to achieve
it are the real challenges before a manager. It is concerned not only
with making of decisions but also with everything that precedes a
decision and everything that follows it.
6. The Communication Centre Approach:
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This approach views management as a centre receiving information,

processing it and disseminating it thus emphasizing the role of
communication in management of business.
7. Systems Approach to Management (Systems Management
School):
This approach regards an enterprise as a system. A system is
composed of related and interdependent elements forming a unitary
whole. Every system is made up of several subsystems. Similarly an
organization is also viewed as a system made up of several parts in the
form of departments while each department is independent and
accomplishes specific predetermined goals; all are coordinated by the
top management.
For example, to decide on expanding the productive capacity, data
from other departments in charge of product planning, market
research, finance etc., are collected because the action of one
department influences the action of others. Thus, the main focus of
systems approach is on the interdependence and interrelatedness of
the various subsystems. Each aspect should not be studied in isolation
but must be examined in relation to the entire system as a whole.
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8. The Mathematical or ‘Management Science’ Approach:

This school believes that managing or planning or decision-making
can be expressed in mathematical symbols and relationship. Modern
managers face problems arising out of increase in the size and
complexity of organizational structures. In the United States of
America and other industrially advanced countries, executives are
turning increasingly to computer applications for finding solution to
their problems. The scientific and technological advance has thus
brought management and mathematics closer to each other.
The main features of this school of thought are:
i. Since management is concerned with problem solving, it has to
make use of mathematical tools and techniques.
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ii. The different problems are capable of being quantified and
expressed in the form of models (equations).
iii. Management problems can be described in mathematical symbols.
Operations Research, mathematical tools, simulation and model
building are the basic methodologies developed by this school of
thought. But with all these advantages, one must be conscious of the
limitations of this school of thought. Mathematical models can never
replace sound judgement. They can at best serve as tools helping the
process of judgement. There are other complicated areas of
management which involve people. They cannot be reduced to any
mathematical formula. Human factor in management is no less
important.
9. The Socio Technical Systems Approach (E.L. Trist):
This approach is based on the belief that personal attitudes and group
behaviour are influenced by the technical system in which people
work. This approach thus lays emphasis on production, office
operations, etc. Change in the technical system is called for, if the
social and technical systems do not go hand in hand.
10. Contingency Approach:
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This approach is the very latest approach of existing approaches.

According to this approach, there is no single way or best way to
address a given problem situation. This approach is opposed to one
size fits all formula approach. Managers should not labour under the
notion that managerial principles and techniques have universal
applicability.
They have to deal with different situations differently. The approach
one should adopt depends on characteristics or requirements of the
situation in which a problem crops up. For example, when there is low
productivity in a facility, classical theory prescribed higher wages for
workers while neo-classical theory favours enhancing the morale,
motivation and job satisfaction of workers.
But manager pursuing a contingency approach shall not apply either
theory for the entire manpower. He would increase the wage for low
skilled and unskilled workers while he would introduce alternative
work options, participative management and employee empowerment
for talented employees.
Similarly autocratic leadership is workable in the case of illiterate
workers whereas, participative leadership may work wonders in the
case of skilled and talented workers and lease faire leadership is
suitable to employees in R&D wing. Likewise financial incentive is
more appropriate for employees at the lower level of organizational
hierarchy while, non-financial incentives like ESOP, variable pay,
career advancements and so on may prove to be highly effective for
knowledge workers and employees at the higher echelons of
management.
Thus, contingency approach with situational emphasis and integration
of environment into management and practice seems more
appropriate in the contemporary context. However, critics point out
that there is no theoretical base for contingency approach. Further, it
is stated that efficacy of contingency approach depends on capability
of managers to understand a given situation and choose appropriate
technique instead of situation itself.

Approaches to Management – Quantitative Approach,

IT Approach, Systems Approach and Contingency or
Situational Approach
There are several approaches to understand what management is. We
can understand how managers take decisions through the decision-
making approach. Empirical or case study approach helps us to know
what management is through the experiences of various successful
managers. Even the failure stories unfold certain mystery and this
forms a part of management lessons.
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Contingency or situational approach explains the managerial practices

in the event of a contingency or situation. Socio-technical system
approach explains that every organisation has a social and a technical
dimension. It is important to design managerial roles considering the
technical and social dimensions in the organisation.
Mere technology cannot make the organisations successful. This
approach states that the aspirations of the individual employees and
also of the society at large need to be considered. Systems approach
considers that functions of management are sub-systems and the
organisation is a system where all these functions are interrelated.
This approach is explained further here.
Modern management theory can be traced from 1960s to today and it
can be viewed more closely through three contemporary approaches to
management, i.e., quantitative approach, simulation approach and
contingency or situational approach.
1. Quantitative Approach:
Morale and productivity though are closely related, there are other
factors as well that impact productivity. Quantitative approach
explores the linkage between man and machine with a focus on fine-
tuning the principles of management. The ownership and
management is separated. The hired management professionals are
given more control and this has resulted in the wider use of scientific
methods of management.
Quantitative approach is also called mathematical approach or
management science approach. This involves use of mathematical or
quantitative approach for decision making more often called
Operations Research.
This considers management as a system of mathematical models and
processes and involves interdisciplinary approach. Here, managerial
decisions are based more on the scientific techniques for providing
quantitative base. Here management is viewed as a system of logical
process.
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Techniques such as – linear programming, simulation, queuing,

project crashing, etc., extensively use mathematical symbols,
relationships and models in analysing the management problems such
as – cost minimisation, profit maximisation, resource optimization,
etc.
This approach has one serious limitation. Not all management
problems can be expressed in terms of mathematical models and these
models cannot be considered to provide judicious decisions. As Harold
Koontz observed, mathematics is just a tool and it cannot be viewed as
school or a separate approach to management theory.
2. IT Approach to Management:
The current trend is that every manager embraces Information
Technology (IT) solutions for delivering quality services with
improved administration. IT empowers everyone to perform
effectively and efficiently, for instance, retailers adopt new
technologies, such as – the self-scanners; Indian Railways adopt surge
pricing wherein the railway tickets cost more when there is heavy
demand – if the demand is less, the tickets cost less.
Increasing volumes and value of e-transactions these days, is an
indication of wide acceptance of IT in both government and non-
government circles including social sector. Automation is the current
buzzword everywhere whether the organisation is in the agriculture,
manufacturing or service sector.
In other words, IT has become an integral part of our lives. Virtually
there is no sector which is not revolutionized by IT. IT is extensively
deployed to develop IT applications, business solutions and devices.
The extent has been so widespread that one can switch on the air
conditioner even while sitting at the office.
Every organisation, irrespective of its size, today earmarks certain
budget to embrace the new IT technologies so that they can delight
their customers with quality service. IT approach to management has
directly triggered cost reduction and profit maximisation besides
increasing service efficiency.
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Social media, mobile technologies, analytics and cloud technologies

(SMAC) are the leading technologies in IT space besides artificial
intelligence, big data analytics, machine learning, robotics, etc.
IT approach to management has contributed to improvement in
quality of life, shortening of transaction time, large number of jobs in
both software and hardware. IT approach is also known for loss of
jobs, but, it is observed that new jobs and software are created. This
means that everyone must keep learning about new IT technologies on
a continuing basis.
Self-service kiosks in restaurants, airports, retail establishments, etc.,
facilitate the customer to complete the transactions faster. Companies
like Uber and Ola revolutionised the erstwhile overcrowded transport
market through integration of customers, channel partners (Auto/cab
drivers are called channel partners) and other regulatory agencies
through Global Positioning System (GPS), one of the super formats of
IT approach to Management.
The IT approach to management delivers a unique experience to every
stakeholder including customer, employee, team leaders,
management, owners, and general public and regulatory agencies.
3. Systems Approach:
One of the modern approaches to understand management is the
systems approach. Here, the organisation is viewed as a system. Every
department of the organisation is considered as a sub-system. It is also
possible that every department can be viewed as a system and every
section in the department can be viewed as a sub-system. Thus,
systems approach helps to study the basic features and functions of
the organisation to its minutest detail.
A system, by concept, is a collection of interrelated parts called sub-
systems, which constitute one whole unit. Systems approach facilitates
the study of each of these parts in detail to have a close understanding
of the whole system. Human body is often cited as the best example
for a system.
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In human body we have different sub-systems such as – digestive

system, central nervous system, and so on. Every part of the body such
as – the eyes, brain, heart, and so forth, can also be viewed as a sub-
system. A study of each of the parts of the body is necessary to
understand the whole body.
From the systems point of view, the functions of management are –
i. Interlinked.
ii. Interdependent.
iii. Complex and intertwined that each function of management can be
found in other functions.

Figure 2.3 explains the feature of interdependence among the

functions of management. Though, in the chart, it is shown that
planning is the first function and control is the last function, in reality,
there is no such starting and ending function.
The first task is the identification of managerial problem and the last
one is reaching the solution for a given problem. The dotted line
represents feedback line. In the process of control, if there is any
deviation from the plans or targets, it can be corrected by verifying
each of the earlier functions and identifying where things could have
gone wrong.
In Figure 2.4, the letters P (planning), O (organising), S (staffing), D
(directing), and C (controlling) represent the functions of the
manager. It shows that in the planning function (shown horizontally
across or vertically down), there are other functions of management
such as – organising, staffing, directing, and controlling. The letter X
shows the overlapping area, and hence, it is to be ignored. Figure 2.3
shows that each of the management functions can be f6und in the
other functions also.
For instance, the planning and control functions are inseparable. Any
attempt to control without plans is meaningless. It is because; plans
form the basis for control. In other words, there is ‘planning in control’
and there is also ‘control in planning’. Similarly, there is ‘organising in
planning’, and also, vice versa.
With the result, the manager cannot say, ‘Yes, the planning function is
over, now I can start the organising function’. The manager has to
carry out some of the functions simultaneously while keeping track of
other functions.

Chester Barnard and H. Simon are the pioneers who advocated for
systems approach to management. Here, organisations are viewed as
open and organic system and every department in the organisation is
viewed as a subsystem. All subsystems interact and are
interdependent. According to systems approach, management is
viewed as a system that is made of subsystems integrated into a unity
or orderly totality.
Systems approach is so flexible that it can be comfortably applied to
every context. For instance, the word economy can be viewed a system
and every nation can be viewed as a subsystem. Similarly, a particular
village can be viewed as a system and every household there in can be
viewed as subsystem. An industry is a system and every firm or a
company operating therein is a subsystem.
A firm or company can also be viewed as a system and the subsystems
there include HR, Finance, Marketing, R&D, Operations, IT, etc. The
system works based on the information, material or energy from other
subsystems as inputs. The input so received from each system gets
processed and moves to other systems as output.
The overall effectiveness of each system is determined by the
effectiveness of the subsystems. Systems approach facilitates a close
examination of problem in each sub-system and organization-wide
solutions can be designed and delivered better where the process
approach fails. However, this approach also is criticized for not
providing any tool or technique for problem solving and thus
considered to be abstract and vague.
4. Contingency or Situational Approach:
Organisations behave as situation demands. In other words, decision
making is contingent on situations. As situation changes, the solutions
also differ. This is the latest approach to problem solving. Case study
approach which is widely followed in today’s premier business schools
across the world has emanated from this thinking. Management
problems vary with situation and require to be handled differently as
situation demands. Where the problems are of repetitive nature, this
approach proves very useful.
However, all problems are not likely of the same nature and hence this
approach also has limitations. The functioning of organisations is not
a matter of the manager’s choice. It is contingent on external or
internal environment or both. Under this approach, managers identify
the variables that critically influence managerial behavior in particular
and organisational performance in general, and address the problems
associated with these variables. This way, it is an improvement over
the systems approach.

Approaches to Management – Top 9 Approaches

1. Scientific Management approach.
2. Management Process or Administrative Management approach.
3. Human Relations approach.
4. Behavioural Science approach.
5. Quantitative or Mathematical approach.
6. Systems approach.
7. Contingency approach.
8. Operational approach.
9. Empirical approach.
1. Scientific Management Approach:                                
The industrial revolution in England gave an immense impetus for the
scientific management approach. It brought about such an extra
ordinary mechanisation of industry that it necessitated the
development of new management principles and practices. Bringing
groups of people together for the purpose of working in the factory
posed problems for the factory owners.
The establishment of formal organisation structure, formal lines of
authority, factory systems and procedures had to be undertaken for
coordinated effort. In order to deal with these problems, a
management movement known as ‘Scientific Management’ was born.
Frederick Winslow Taylor (1865-1915) was the first to recognise and
emphasise the need for adopting a scientific approach to the task of
management. The introduction of the concept of standard time,
standard output, standard cost, standardisation of production process,
change in the attitude of management and workers to bring about the
mutuality of interests are the important landmarks of scientific
management. This approach was supported and developed by Henry
L. Gantt, Frank Gilbreth, Lillian Gilbreth, Harrington Emerson, etc.
2. Management Process or Administrative Management
Approach:
The advocates of this school perceive management as a process
consisting of planning, organising, commanding and controlling. In
the words of W.G. Scott, “It aims to analyse the process, to establish a
conceptual framework for it, to identify principles underlying it, and to
build a theory of management from them”.
It regards management as a universal process, regardless of the type of
the enterprise, or the level in a given enterprise. It looks upon
management theory as a way of organising experience so that practice
can be improved through research, empirical testing of principles and
teaching of fundamentals involved in the management process.
The process school is also called the ‘traditional’ or ‘universalist’
school as it believes that management principles are applicable to all
the group activities, Henry Fayol is regarded as the father of this
school. Oliver Shelden, J.D. Mooney and Chester I. Barnard are
among the other important contributors to this approach.
3. Human Relations Approach:
The human relations approach is concerned with the recognition of
the importance of human element in organisations. Elton Mayo and
his associates conducted the world famous Hawthorne Experiments
and investigated the myriad of informal relationships, social cliques,
patterns of communication and patterns of informal leadership. As a
result of these experiments, a trend began which can be phrased as
‘being nice to people’. This trend was eventually termed as ‘the human
relations movement’.
The human relations approach revealed the importance of social and
psychological factors in determining workers’ productivity and
satisfaction. It was instrumental in creating a new image of man and
the workplace. It put stress on interpersonal relations and the
informal groups. “It’s starting point was in individual psychology
rather than the analysis of worker and work. As a result, there was a
tendency for human rationalists to degenerate into mere slogans
which became an alibi for having no management policy in respect of
the human organisation.” Nevertheless, this school has done a unique
job in recognising the importance of human element in organisations.
4. Behavioural Science Approach:
The ‘behavioural science’ approach utilises methods and techniques of
social sciences such as psychology, sociology, social psychology and
anthropology for the study of human behaviour. Data is objectively
collected and analysed by the social scientists to study various aspects
of human behaviour.
The pioneers of this school such as Gantt and Munsterberg reasoned
that in as much as managing involves getting things done with and
through people, the study of management must be centred around the
people and their interpersonal relations.
The advocates of this school concentrated on motivation, individual
drives, group relations, leadership, group dynamics and so forth. The
noted contributors to this school include Abraham Maslow, Fredrick
Herzberg, Victor Vroom, McGregor, Lawler, Sayles, and Tannenbaum.
5. Quantitative or Mathematical Approach:
This approach stands for using all pertinent scientific tools for
providing a quantitative basis for managerial decisions. The abiding
belief of this approach is that management problems can be expressed
in terms of mathematical symbols and relationships. The basic
approach is the construction of a model because it is through this
device that the problem is expressed in its basic relationships and in
terms of selected objectives. The users of such models are known as
operations researchers or management scientists.
Linear programming, Critical Path Method, Programme Evaluation
Review Technique, Breakeven analysis, Games Theory and Queueing
Theory have gained popularity for solving managerial problems these
days. These techniques help the managers in improving their decisions
by analysing the various alternatives in a scientific manner.
The application of mathematical techniques is particularly useful in
solving the physical problems of management such as inventory and
production control. They can never be substitute for knowledge,
experience and training necessary for understanding the human
behaviour.
6. Systems Approach:
A system is composed of elements or subsystems that are related and
dependent on each other. The system approach is based on the
generalisation that an organisation is a system and its components are
inter-related and inter-dependent. This approach lays emphasis on the
strategic parts of the system, the nature of their interdependency,
goals set by the system and communication network in the system.
Another basic feature of the systems approach is that attention is paid
towards the overall effectiveness of the system rather than the
effectiveness of subsystems. Under system approach, the overall
objectives and performance of the organisation are taken into account
and not only the objectives and performance of its different
departments or subsystems.
The spiritual father of this school of management was Chester I.
Barnard. The systems theory lays emphasis on the interdependency
and interrelationships between the various parts of a system.
It stresses communication and decision processes throughout the
organisation. It follows an open system approach. The organisation as
an open system has an interaction with the environment. It can adjust
to the changes in the environment.
7. Contingency Approach:
The latest approach to management is known as ‘contingency’ or
‘situational’ approach. Underlying idea of this approach is that the
internal functioning of organisations must be consistent with the
demands of technology and external environment and the needs of its
members if the organisation is to be effective.
This approach suggests that there is no one best way to handle any
management problem. The application of management principles and
practices should be contingent upon the existing circumstances.
Functional, behavioural, quantitative and systems tools of
management should be applied situationally.
There are three major parts of the overall conceptual framework for
contingency management – (a) environment; (b) management
concepts, principles and techniques; and (c) contingent relationship
between the two. The environment variables are independent and
management variables (process, quantitative, behavioural and systems
tools) are dependent. Every manager has to apply the various
approaches of management according to the demands of the situation.
8. Operational Approach:
Koontz and O’Donnell have advocated operational approach to
management. This approach recognises that there is a central core of
knowledge about managing which exists in management such as line
and staff, patterns of departmentation, span of management,
managerial appraisal and various managerial control techniques. It
draws from other fields of knowledge and adapts within it those parts
of these fields which are specially useful for managers.
“The operational approach regards management as a universally
applicable body of knowledge that can be brought to bear at all levels
of managing and in all types of enterprises. At the same time, this
approach recognises that the actual problems managers face and the
environments in which they operate may vary between enterprises and
levels”. The application of science by a perceptive practitioner must
take this into account in finding solutions to management problems.
9. Empirical Approach:
According to this approach, management is the study of the
experiences of managers. The knowledge based on experiences of
successful managers can be applied by other managers in solving
problems in future and in making decisions. Thus, the empirical
school is based on analysis of past experience and uses the case
method of study and research.
Managers can get an idea of what to do and how by studying
management situations of the past. They can develop analytical and
problem-solving skills. They can understand and learn to apply
effective techniques in comparable situations.
No one can deny the value of analysing past experience to obtain a
lesson for the future. But management, unlike law, is not a science
based on precedent, and future situations exactly resembling those of
the past are unlikely to occur. Indeed, there is a positive danger in
relying too much on past experience…….. for the simple reason that a
technique found “right” in the past may be far from an exact fit for a
somewhat similar situation of the future.

Approaches to Management – Developed by Scholars

and Practitioners on Management 
Though the theories developed by scholars and practitioners on
management are aimed at finding the best way of doing things; the
management theory and science does not advocate ‘one’ best way to do
things in every situation. Hence effective management is always
situational management.
The literature on management post World War II, has grown at a
rapid pace which on one hand has greatly helped in improving
research, teaching and practice but also created differences of opinion
and controversies.
The management theory has identified various approaches:
(i) Empirical Approach
(ii) Interpersonal Behaviour Approach
(iii) Group Behaviour Approach
(iv) Decision Theory Approach
(v) Mathematical Approach
(vi) Operational Approach
(vii) System Approach
In the following paragraphs, a brief review of some
approaches to management analysis is discussed as under:
(i) Empirical Approach:
Earnest Dale was the founder of this school and it started around
1952. Empirical means based on real experiences and observation
rather than theory. The empirical school believed in experience and
research. This school is based on the evidence that management
problems could be solved in a better way depending on the
experiences of the managers.
The scholars belonging to this school believe that to understand
management clearly one must study and make comparison of;
successes and failures of managers in various situations and their ways
to solve specific problems, and then the learning derived from such
observation can be applied to a similar real situation would result in
same outcome.
They believe a theory can only be developed by the study and analysis
of cases and comparative approach. Through the case studies some
generalizations are made resulting in theories as useful guides for
other managers.
(ii) Interpersonal Behaviour Approach:
Elton Mayo was the founder of this school. It was started during 1930.
According to Mayo the study of management must be interpersonal
relationship oriented. It must emphasize on “people” as a part of
management.
According to this school, management is getting things done through
people; hence managers should understand human relations. So,
management must study interpersonal relations among people.
This approach is termed as ‘behavioral science’, ‘leadership’ or ‘human
relations’ approach by different group of scholars. The approach gives
significance to Interpersonal relations, Personality Dynamics and
Cultures of individuals and groups.
The Interpersonal Behaviour Approach puts emphasis on human
aspect of management, with the focus on individuals and their
motivations as socio-psychological being.
(iii) Group Behaviour Approach:
Chester Barnard was the founder of this school. It is closely related to
human relation school. Any organized enterprise where individual
come and work as a group can be seen as a social organism; hence the
group behaviour puts its emphasis on learning’s through group
dynamics.
Group Behaviour approach is closely related to interpersonal
behaviour approach, but is focused on studying the behavioural
patterns and dynamics of individuals as ‘members of small or large
groups’ in an organization.
Group Behaviour approach studies authority, influence of formal
organization and social factors. The understanding of these factors has
greatly helped management practitioners in real life situations. The
aim of this approach is to find ways of achieving relatively effective
organizational behaviour.
(iv) Decision Theory Approach:
The believers of this approach emphasize that decision-making is the
core of management. The Decision theory school was developed
during the management science era. The decision theory emphasized
on rational approach to decision i.e. it is a selection of a possible
alternative course of action Decision making approach studies the
persons / organizational groups making the decision, and the decision
making process. Management is essentially a decision-making
function.
The members of the organization are decision-makers and problem-
solvers. The motive behind development of decision theory is not only
to make better economic decisions but also to gain better
understanding of social and psychological aspects and environment of
the decisions and the decision-makers.
(v) Mathematical Approach:
Although any school of management can use Mathematical tools,
some management scholars and practitioners see management
exclusively as a system driven by mathematical models and processes.
Operation researchers and analysts primarily belong to this group.
This school emphasizes that the organization or decision making is a
logical process and it can be expressed in terms of mathematical
symbols and relationships. Since, management is concerned with
problem solving so it must make use of mathematical tools and
techniques for this purpose.
Mathematical approach believes that planning, decision-making,
organizing, etc., can be done through logical processes and can easily
and appropriately be represented using mathematical equations and
models. The approach is closely related to decision theory approach
but differs in a sense that it heavily depends on use of mathematics in
management.
(vi) Operational Approach:
This school is developed during the scientific management era.
According to this school, management is the study of functions of
managers and the functions of managers are the same irrespective of
the type of organization.
Operational approach has taken from all possible disciplines, which
have direct or indirect effect on human behaviour and organizational
functioning and developed its concepts.
The operational approach recognizes that “there is a central core of
knowledge about managing which exists only in managements” and
which can be applicable to all levels of management regardless of the
type and size of the organization. Thus, the management process
consisting of planning, organizing, staffing, directing and controlling
was considered to be universal irrespective of the type of enterprise.
Operational approach takes into account that with the nature, size and
level of enterprise the problems faced by the executives and managers
in their real life vary.
(vii) Systems Approach:
“System is a set of things interdependent or connected together to
form a complex unit. A whole composed of parts which are arranged in
an order as per a scheme or plan”. Prior to World War II Systems
approach was considered applicable & meaningful only to physical
sciences.
It defines organization as a complex whole consisting of mutually
interdependent parts or sub-systems, which interact with environment
(Markets, government regulations, competitors, technology etc.) of
which it is a part and as an open, adaptive system subject to all the
pressures and conflicts of the environment and which continuously
adjusts so as to keep efficiently working as per the changes in the
environment.
Systems approach views management as a system of inter-
relationships involving the processes of decision making,
communication and balancing.
Chester I Barnard viewed executive as a component of a formal
organization and latter as a part of entire cooperative system involving
physical, biological, social and psychological elements. The systems
approach allows us to see the critical variables and constants (those
elements which do not change) and their interaction with one another.
Development of Management Theory:
Organized cooperation has been concerned since beginning of
civilization. Organization and management were recognized in the
Buddhist order ‘Sangha’ as far back as 530 B. C. Roman Catholic
Church and ‘Military Organizations’ also offer good examples of
various functions of management.
Importance of Management Theory:
The knowledge of management theory and techniques is
important in order to:
i. Increase efficiency.
ii. Crystallize the nature of management.
iii. Improve research in management.
iv. Coordinating the efforts of people so that objectives of individuals
get translated into social accomplishments and social goals of the
organization can be attained.
The evolution of management theory can be studied under
the following three parts:
1. Classical Theory.
2. Neo-Classical Theory
3. Modern Theory
Scientific Management:
Scientific Management approach is also known as the productivity or
efficiency approach. The credit for pioneering and developing
Scientific Management approach is primarily given to F. W. Taylor. He
is recognized as the Father of Scientific Management.
Frederick Winslow Taylor has defined, “Scientific management means
knowing exactly what you want, men to do and seeing that they do it in
the best and the cheapest way”.
Frederick Taylor:
Frederick Taylor known as the ‘father of scientific management’. He
started his career as a trainee in a small machine shop and was
promoted to the level of an engineer. His writings revealed the
practical wisdom and work experience; the main concern of his
writings was on management at shop level and with efficiency of
workers and managers at the production level.
His primary concern was to increase productivity through greater
efficiency in production and increased pay for workers, through the
application of the scientific method.
The major principles and elements of his scientific
management may be summarized as follows:
(i) Separation of planning and execution.
(ii) Equal division of work and responsibility between management
and labour.
(iii) Replacement of old rule of thumb method of management by
scientific method, i.e., scientific determination of each element of a
man’s job.
(iv) Scientific selection and training of workers.
(v) Absolute cooperation between labour and management in work
performance.
(vi) Determining time standard for each job through stopwatch study
of all the essential elements of the job.
(vii) Introduction of the system of functional foremanship at
supervisory level.
(viii) Differential piece rates of wage payment — workers attaining or
exceeding the standard drawing their pay at the higher rate and those
falling short of it compensated by lower wage rate –
a. The scientific management movement early in the twentieth century
was hailed as a “second industrial revolution”.
b. Scientific management brought a change in form of innovation in
the field of management; this change generated tremendous resistance
during the life time of Taylor.
c. Public criticism and opinions forced him to appear before the
special Congressional Committee hearings in 1912.
d. The industrial psychologists challenged the Taylor’s assumption of
‘one’ best method of job performance.
e. Although Taylor explained management as a separate and
identifiable discipline, his stress of time and motion study and on
efficiency at the shop level seemingly overlooked other aspects of
management, having influence particularly in the U.K. and the U.S.A.
f. Therefore, Taylors and scientific management to an extent
overshadowed the work of Henry Fayol.
Other Contributors to Scientific Management:
Henry Lawrence Gantt:
He corrected Taylor’s ‘differential piece rate’ to ‘task and bonus plan’
He suggested a wage inceptive plan in which high efficiency is
rewarded, for production which is above the set standard; by
providing a percentage bonus.
Franck Gilberth & Lillian Gilberth (Wife):
They gave greater importance to minute details of work. Developed the
principle of motion economy, which was intended to eliminate
redundant motions and produce a rhythm by scientific development of
essential motions.
Henry Fayol /Administrative Theory of Management:
Though administrative theory of management is based on the
contributions of many scholars and practitioners like Henry Fayol,
Max Weber, Sheldon, Mooney, Allen and Urwick, etc. But major part
of it relates to Fayol’s work.
Henry Fayol regarded as father of modern management theory, for
creating theory of general management applicable equally to all kinds
of administration and in all fields i.e. social, political or economic.
Born in 1841 in France he was graduated in mining engineering in
1860 and got appointed as an engineer in a coal mining company,
where through gradual promotion finally became the managing
director of the company in 1888.
When Fayol got the position of managing director at that time the
company was almost bankrupt and when Fayol retired from his
services, it became one of the leading organization in the coal business
in France. During the latter period of his service, Fayol used to deliver
lectures on administration.
In year 1916, he published his well-known work in French entitled
“Administration Industrielle et Generate” (Industrial and General
Administration) which was translated in English in the year 1929 with
few hundred copies distributed in U.K. Fayol wanted to establish a
separate philosophy for management applicable generally to all
human organizations. Fayol retired in 1918 officially, however his
name continued to exist in the Board of Directors of the company till
his death in 1925.
His theory can be understood under the following headings:
(i) Activities of a business
(ii) Functions of a Manager.
(iii) Principles of management.
(i) Activities of Business:
Fayol divided all activities of industrial enterprises into six groups.
They are as follows:

(ii) Functions of Manager:

He defined management in terms of five functions: planning,
organising, commanding, coordinating and controlling. Henry Fayol,
the father of functional or administrative management remarked: “To
manage is to forecast and plan, to organize, to command, to
coordinate and to control.”
Fayol believed that as one goes up the levels of management hierarchy
the importance of managerial ability also goes up. Fayol also stressed
on training in management, which could not be done without
development of management theory.
(iii) Fayol’s Principles of Management:
Based on his own experiences and foresight into the field of
management, Fayol suggested the fourteen principles of
management as follows:
1. Division of Work:
Work should be divided among individuals and groups, so that
everyone can focus on special portion of the task. Fayol believed work
specialization is the best way to use the human resource in an
organization.
2. Authority & Responsibility:
Authority and responsibility are closely related. As per Fayol, authority
is the right to give orders and the power to get obedience,
Responsibility is about being accountable, and hence both Authority
and responsibility are co-extensive.
3. Discipline:
To ensure obedience and respect for superiors, and rules, procedures
and policies. Fayol declares that discipline requires good superiors at
all levels.
4. Unity of Command:
An employee should receive orders from one senior (superior/boss)
only. If one employee receives commands from several superiors, it
can lead to confusion and disorder.
5. Unity of Direction:
A group of activities with common objectives should have one plan
and be headed by one person (manager). Unity of directions is
different from unity of command.
6. Subordination:
The interests of one person should not take priority over the interests
of the organization as a whole.
7. Remuneration:
All the employees should be paid fairly and based on the work done,
skills, knowledge, experience, cost of living and other factors yielding
satisfaction to both employee and the firm.
8. Centralization:
Fayol defined Centralization as lowering the importance (authority) of
the subordinate role and Decentralization as increasing the
importance. The degree to which centralization or decentralization
adopted should be based on the specific organization.
9. Scalar Chain:
It is the chain of superiors and subordinates from the highest level to
the lowest level for the purpose of communication. It decides the issue
of authority i.e. who is superior to whom. It refers to superior-
subordinate relations throughout the organization. The existence of a
scalar chain and obedience to it are necessary for the organizational
success.
10. Order:
Order relates to arrangement of things and people. Everything should
be in its place and there should be a place for everything. Every man in
the organization should be properly placed i.e. right man in the right
place. On the contrary, disorder would lead to confusion, inefficiency
and failure to achieve the set objectives.
11. Equity:
Management must treat everyone with equality, which is achieved
through a combination of kindliness and justice.
12. Stability of Tenure of Personnel:
Management should retain employees who are skilled and efficient in
their work and provide them clarity about their tenure so that both;
the work and the employee are stable.
13. Initiative:
Management should encourage employees taking initiative i.e. doing
things out of their regular scope of work with self-direction and
motivation.
14. Espirit de Corps:
Management should strive to achieve team spirit and teamwork
amongst the employees. Team spirit is of great importance to
accomplish tasks.
Fayol did not make this list as an exhaustive and all-encompassing list;
hence we need to have an understanding that there could be more
principles added based on increased understanding of the subject.
Comparison of Taylor and Fayol:

Contribution of the Behaviourists, Sociologists and

Psychologists:
As per Behaviourists:
“The study of management should be concerned with human
behaviour in organizations and related matters; organizational
effectiveness depends on the quality of relationships among people
working in the organization; good management rests on the ability of
managers to develop interpersonal competence among members and
to support collaborative efforts at all levels of the organization.”
Behaviourists pay major emphasis on human relations, informal group
communication, employee motivation and leadership styles
Hawthorne Experiments (1928-32) conducted by Elton Mayo and his
associates gave recognition to the contribution of behaviourists.
People who have contributed include Psychologists like A. H. Maslow,
McGregor, Leavitt, Chris Argyris, Herzberg and McClelland and
Sociologists like Bakke, Dubin, Katz, Gouldner and Etzioni.
Systems Approach:
This school is of recent origin having developed in late 1960’s. Prior to
World War II Systems approach was considered applicable &
meaningful only to physical sciences. System is derived from Greek
word called ‘systema’ which means interrelated and interdependent
components arranged in a systematic manner to get the objectives.
System works for a common objective. An organization takes the input
in the form of various resources such as men, machine, money and
material.
The process of the organization is the various methods and techniques
through which input is converted into required output. This process
totally depends upon the type of output required. Output may be in
the form of product or services, product is the output which we can see
and services are the output which we can’t. Feedback is taken in order
to compare the output with the targeted result. If any changes or any
deviations are found then those deviations are corrected.
Why Organisation Acts as a System?
The features of an organization as a system are as under:
(1) Common Objective – Organisation stands for the achievement of
common objective whatever may be the efforts of system. It is towards
the achievement of a common objective.
(2) Systematic Arrangement – The elements of the system are
arranged in a systematic and peculiar way for the achievement of the
result.
(3) Interaction and Inter-Relation – The elements of system are
interrelated to each other and works in co-ordination and cooperation
to get the output.
(4) Inter-Dependent – Each element is interdependent to each other
and unless and until the previous one is not carried out, the second
one can’t be started.
The system can be open or closed. An open system is one which is
affected by its environment and a close system is one in which
environment has no influence on the organization.
Contingency Management:
The contingency approach believes that it is impossible to select one
way of managing that works best in all situations. As there is no one
best way to do things, practice and solution of various problems
depends upon the circumstances. Management should be prepared for
all the possibilities (contingencies) and the internal functioning of the
organization should be in accordance to the demands of organizational
objectives, requirements of the external environment.
Different organizations with different objectives and different
competitive environments require different plans. The task of manager
is to apply his knowledge to realities in order to attain desired results
i.e. managers must try to find the approach that is the best for them in
a certain given situation, so they can achieve their goals.
It is important to note that the contingency approach focuses on the
need for managers to examine the relationship between the internal
and external environment of an organization.