Approaches of Management(Principles of Management)

Approaches to the management

1. APPRPACHES OF MANAGEMENT

2. What is the meaning of management approach ? Process  management  is a  management approach  that views an organization and its activities as a set of processes. ... The objective of process  management  is to identify the processes and improve upon them to create the best possible quality and performance through a continuous process of design, assessment, and improvement.

3. A Systems Approach to Management

4. The systems approach to management implies that every manager should be much more precise about decision-making and information flow. For this to be effective, a company should have an overall system of corporate objectives . First a detailed systems study will be necessary to decide on the best objectives and then subsidiary systems must be set up to realize these objectives as efficiently as possible.

5. PARTS OF A SYSTEM

6. System Approach to Management: Definition, Features and Evaluation

7. In the 1960, an approach to management appeared which try to unify the prior schools of thought. This approach is commonly known as ‘Systems Approach’. Its early contributors include Ludwing Von Bertalanfty, Lawrence J. Henderson, W.G. Scott, Deniel Katz, Robert L. Kahn, W. Buckley and J.D. Thompson.

8. Systems approach is based on the generalization that everything is inter-related and inter­dependent. A system is composed of related and dependent element which when in interaction, forms a unitary whole. A system is simply an assemblage or combination of things or parts forming a complex whole . One its most important characteristic is that it is composed of hierarchy of sub-systems. That is the parts forming the major system and so on. For example, the world can be considered-to be a system in which various national economies are sub-systems.

9. Features of Systems Approach:

10. A system consists of interacting elements. It is set of inter-related and inter-dependent parts arranged in a manner that produces a unified whole . (ii) The various sub-systems should be studied in their inter-relationships rather, than in isolation from each other . (iii) An organisational system has a boundary that determines which parts are internal and which are external . (iv) A system does not exist in a vacuum. It receives information, material and energy from other systems as inputs. These inputs undergo a transformation process within a system and leave the system as output to other systems.

11. (v) An organisation is a dynamic system as it is responsive to its environment. It is vulnerable to change in its environment . In the systems approach, attention is paid towards the overall effectiveness of the system rather than the effectiveness of the sub-systems. The interdependence of the sub-systems is taken into account. The idea of systems can be applied at an organisational level. In Appling system concepts, organisations are taken into account and not only the objectives and performances of different departments (sub-systems ). The systems approach is considered both general and specialised systems. The general systems approach to management is mainly concerned with formal organisations and the concepts are relating to technique of sociology, psychology and philosophy. The specific management system includes the analysis of organisational structure, information, planning and control mechanism and job design, etc.

12. Systems theory is useful to management because it aims at achieving the objectives and it views organisation as an open system. Chester Barnard was the first person to utilize the systems approach in the field of management. He fete that the executive must steer through by keeping a balance between conflicting forces and events. A high order of responsible leadership makes the executives effective. H. Simon viewed organisation as a complex system of decision-making process.

13. CONTINGENCY APPROACH

14. The contingency approach to management is based on the idea that there is no single best way to manage. Contingency refers to the immediate contingent circumstances. Effective organizations must tailor their planning, organizing, leading, and controlling to their particular circumstances. In other words, managers should identify the conditions of a task, the requirements of the management job, and people involved as parts of a complete management situation. The leaders must then work to integrate all these facets into a solution that is most appropriate for a specific circumstance

15. The contingency approach to management assumes that there is no universal answer to many questions because organizations, people, and situations vary and change over time. Often there is no one right answer when managers ask: “What is the right thing to do? Should we have a mechanistic or an organic structure? A functional or divisional structure? Wide or narrow spans of management? Tall or flat organizational structures? Simple or complex control and coordination mechanisms? Should we be centralized or decentralized? Should we use task or people oriented leadership styles? What motivational approaches and incentive programs should we use?” Thus, the answer depends on a complex variety of critical environmental and internal contingencies.

16. Difference between Systems and Contingency Approach!

17. System Approach The emphasis is on interdepen­dence and interaction among sub-systems. 2. The focus is on the internal environment and sub-systems of the organis ation.   3. It treats all organisations alike and the background of the organisation is not taken into account.

18. 4. The organisation interacts with the environment and adjusts as per the changes.   5. It provides a theoretical  model of understanding the organisation and its sub-systems. 6. It is silent on the validity of classical principles of management.

19. CONTINGENCY APPROACH It emphasises the impact of environ­ment on organisational design and managerial style. 2. The focus is on external environment of the organisation. 3. Each organisation is taken as unique entity. Different organisations have different nature and face different situations.

20. 4. The impact of the environment on organisation structure and mana­gerial style is the major concern of contingency approach. 5. It suggests practical solutions to organisational problems. 6. It rejects the blind application of classical principles of management.

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22. BY-: DR. NEETU SHARMA