This undermines the concept of ‘participative management’ which is fast gaining in popularity all across the world. He was a humanistic psychologist, proposed a hierarchy of five needs- physiological, safety, social, esteem and self-actualization. He, like Adam Smith, was a proponent of the specialization of labour, and he applied mathematics to the efficient use of both production materials and facilities. Through the keyhole of decision-making it looks at management to consider the entire field of enterprise operations and its environments. Its basic theme is that if application of a particular policy or strategy by a manager had successfully tackled a business problem or opportunity, then a similar problem or situation facing any manager could also be tackled by applying the same policy or strategy. The parts are not a hit-or-miss conglomeration of separate elements but a definite system characterised by organization and unity. Integration School 6. Encourages managers to use mathematics, statistics, and other quantitative techniques to make management decisions. According to Hicks, this school stresses experience as a factor of managerial performance and de-emphasizes the theoretical aspects of the subject. iv. These are integrated programmes for the collection, analysis and dissemination of information to support management decision-making. Over the passing centuries, organisational structure has undergone radical changes, and simultaneously the process of management as well. Further, proper understanding of the cause-effect relation­ships will facilitate attempts to effectively maintain and adapt the system. Can management principles be formulated in similar manner; the answer is a firm ‘no’. No, because for most people survival—even pros­pering—is not enough. Management action is contingent on certain outside system or subsystem. b) A wide span of control. (c) All personnel are selected and promoted based on technical qualifications, which are assessed by examination or according to training and experience. Quantitative School of Management 2. He is best known for his formulation of two sets of assumptions-Theory X and Theory Y. McGregor argued that managers should shift their traditional views of man and work (which he termed Theory X) to a new humane views of man and work (which he termed Theory Y). Both emphasize the view that an organization is a system consisting of many sub-systems, and that it is part of the larger supra-system. It concerns itself with understanding the relevant phenomena of infra-personal and inter-personal relationships as they relate to the work situations as well as with observing work group as anthropological subcultures. First, no two management situations can be exactly alike and, therefore, methods derived from experiences of other managers may not always be suitable to tackle all situations. In a trading concern, for example, there is little investment on plant and equipment and therefore an inherent flexibility to change its technology in response to new consumer demands. He highlighted that workers were found to restrict their output in order to avoid displeasure of the group, even at the sacrifice of incentive pay. Describe the ways in which a theory can be useful. It is open to a scientist to invent a new principle by scientific experiments—identifying and testing relationships between different variables and reaching conclusions through mathematical analysis. The 5TKMH is based on (Hicks, Dattero, Galup, 2006) the knowledge hierarchy paradigm and expands it with 2 more levels. By ‘inducements’ he meant the sum-total of financial and non-financial rewards made available to employees and by ‘contributions’ the efforts put in by employees for achievement of organizational goals. Again, to the extent that the empirical school draws generalizations from research into past cases, it tends to be the same as management process or operational school. The contingency approach was first advocated by J. W. Lorsch and P. R. Lawrence in 1970. (iv) While wages and physical conditions of work do exercise some influence on workers and their productivity, a far greater influence is exercised by their interpersonal relations, and by the attitude of the supervisor. The focus of this school is the ‘model’, for, through these devices, the problem is expressed in its basic relationships and in terms of selected goals. Lifetime employment would not be especially attractive to America’s mobile workforce and the slow evaluation and promotion processes would not meet the high expectations of American workers. Thus, contingency approach is realistic and practice-oriented, requiring managers to analyze each situation and decide how best to tackle it. ambiguous, even at times self-contradictory. C: The three main schools of management thought are – 1. (x) Programme Evaluation and Review Technique (PERT). PLAY. No Models to Tackle Problems of ‘Organizing’ and ‘Directing’: While the School provides mathematical models and techniques to help planning and control func­tions, it has not worked on means to solve issues relating to organizing, staffing, motivation and lead­ership. Taylor was a scientist and he was managing director of a large French coal­mining firm. The Human Behaviour School 4. According to the systems management school, management is a system that is an assemblage of objects or functions by some interaction or interdependence. schools of thought A point of view held by a particular group: "We have many schools of thought in the intelligence services" . He was a consulting engineer who specialized in control system for shop scheduling. Based on Economic Decision Theory- Final actions are chosen criteria as costs, revenue and rates of return on investment. Early contributors to this school included Kenneth Boulding, Richard Johnson, Fremont Kast, and James Rosenzweig. n. pl. The organizing principle of the learning organization is not efficiency, but problem solving. Crowdsourced Business Presentation Design Service Ten Schools of Thought Mintzberg’s Ten Schools of Thought in Strategic Management May 30, 2013 Developed by Henry Mintzberg, the Ten Schools of Thought framework breaks down the field of Strategic Management into 10 categories, from Positioning to Entrepreneurial to Configuration. ii. The appropriate management actions and approaches depend on the situation. Further, (c) He has little or no ambition, likes avoiding responsibility, and (d) Being risk-averse, he seeks security above all else. Douglas McGregor’s ‘X’ and ‘Y’ Theories of Motivation, Management = Maintenance Activities + Adaptation Activities, (1) Solution of Problems through Quantitative Methods, (2) Tie-Up between Scientists and Business Decision Makers Benefitted Both, Distinction between ‘Management Science School’ and Other Schools, ‘Management Science School’— An Evaluation, Aid to Decision-Making on Planning and Control, No Models to Tackle Problems of ‘Organizing’ and ‘Directing’, Computers only Represent Artificial Intelligence, Contingency Approach Similar to Systems Approach in Many Respects, (1) External and Internal Environment of Organization. The systems serve as the media through which the manager operates. Socio-Technical Systems School 12. Management 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. Schools of Management Thought – 6 Schools of Management Thought, PreserveArticles.com: Preserving Your Articles for Eternity. It stresses the interaction and co-operation of people making up a social system. Different organizations with different tasks and differing competitive environments require different decisions and plans, in varying situations. The study of psychology can benefit anyone interested in human behavior by giving insight into those in her life. He was a German sociologist. Quantitative School of Management 2. The central approach of this school is the model which is an abstraction of reality in terms of a few variables, whose interrelationships are sought to be established by a mathematical process. Economic safety means security of employment and making provision for old age. (a) Labour is divided with clear definition of authority and responsibility that are legitimatized as official duties. The systems school focuses on the organization as a whole, its interaction with the environment, and its need to achieve equilibrium. Content Guidelines 2. The contingency approach is highly dependent on the experience and judgment of the manager in a given organizational environment. The Mathematical School 7. In today’s dynamic marketplace, consumers are encouraged to buy a product that demonstrates the highest level of quality at the optimum price. This approach has been criticized on the following grounds: i. An organization as a system is composed of four elements: i. Inputs- Raw material, human resources and money. However, ‘Behavioral School’ tends to over-emphasize the human factor within the organization. According to Hicks, some of the fundamental characteristics of this school are as follows: (i) Functions of management are defined, emphasized and studied. He emphasized that management must assume a new role in its dealings with employees, develop a new concept of authority and right to command and help foster a new social order based on the individual’s co-operative attitude and the system of coordinative organization and communication developed by management. All case studies in management can be useful in training future managers. In fact, the contingency approach treats each specific rela­tionship as an inter-dependent unit and examines which combination of variables will make it most effective. The first two (scientific management school and organizational) emerged in the late 1800s and early 1900s were based on the management belief that people were rational, economic creatures choose a course of action that provide the greatest economic gain. The total MIS network is more than a machine; it contains human resources, hardware, software and intricate processes. Management is considered a study of experience, sometimes with an intent to draw generalisations but usually as a means of teaching experience and imparting it to the practitioner or student. Thus, an organization would survive and grow only it strikes neat balance between organizational goals and needs and goals of employees working for it. (e) It assumes the manager has authority to direct and control but does not realize this authority might sometimes be challenged. There is a positive danger in relying too much on past experience and on distilled history of managerial problem solving for the simple reason that a technique found ‘right’ in the past may not be so in a somewhat similar situation of the future. Management process schools; 2. They have forced on people in management the means and desirability of seeing any problem more clearly. But it is often pointed out that the behavioural school, to which he belongs, according to some, does include the study of management as a system of cultural inter­relationships. He described an ideal type of organization that he called a bureaucracy, a form of organization characterized by division of labour, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships. Task 1 Evaluate the contributions, strengths and weaknesses of the following three major schools of thought in management and organizational theories: (E1 – PC 1.1) Answer: Classical management theory: The classical management theory is a school of thought which management theorists delved into how to find the best possible way for employees to perform their […] The schools of management thought include:-, 1. His was a functional approach because it defined the functions that must be performed by managers. They are tentative and are related to each other. It varies from situation to situation. (ii) Principles of management are thought of as being important for clarifying the study of management and for improving management practices. Management is also a profession because it is based on advanced and cultivated knowledge. Perhaps the most widely- acknowledged group is that of OR specialists, who prefer to call themselves “management scientists.”. Satisfaction of human needs of a worker—security, affiliation, power, esteem, and control needs—will be only possible if he is part of a group that performs inter-related and inter-dependent activities. In the Follett Holistic Model of Control, Follett captured the interactive, integrative nature of self-control groups being influenced by the forces within the work environment. The larger aggregation of sys­tems, of which each system is a part, is called the supra-system. Crowdsourced Business Presentation Design Service Ten Schools of Thought Mintzberg’s Ten Schools of Thought in Strategic Management May 30, 2013 Developed by Henry Mintzberg, the Ten Schools of Thought framework breaks down the field of Strategic Management into 10 categories, from Positioning to Entrepreneurial to Configuration. It regards management as a universal process to be found essentially in business, government, or any other enterprise, and which involves the same process, whether at the level of a chief executive or a foreman, in a given enterprise. Depending on one’s level of analysis, one can view many things as systems, such as, human body, business organization, society, galaxy, etc. Simon has suggested four basic elements (or phases) of the decision-making process, namely—(a) Study of external environment to identify problems or situations that require decision-making to tackle them, in other words, intelligence activity; (b) Inventing, developing, and analyzing possible courses of action, in other words, design activity; (c) Selecting a particular course of action from those available, in other words, choice activity; and (d) Evaluating past choices, in other words, review activity. As a result different management theories have emerged. 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