Approaches to management.

There are several approaches to management as described by various proficient managers and scholars through experience and research. They can broadly be classified into 7 approaches: y y y y y y y Systems approach. Operations approach. Behavioral approach. Universal approach. Contingency approach. Decision Theory approach. Seven S (7S) Management approach.

1. SYSTEMS APPROACH
The systems approach to management is a concept which views a company as an interconnected purposive system that consists of several business sections. It is a management approach which enables the leadership to see the company as a unified part or a major section of the larger outside corporate environment. Even a small activity in a part has a substantial effect on other sections in the company. Such a system may be biological, physical or social; and may enable the management to efficiently determine the long-term goals of the company. The systems approach states that for realizing the operations of an entity, it is essential to see the entity as a complete system. In a company, it is very essential to align employee performance measures with the organization's strategy and plans. The systems approach sees the whole business as a system which comprises of factors such as corporate strategies and schemes, shareholders, owners, investors, management systems and processes, employees, and products and services. Other major elements include customers, clients, market competition, economy, related industries, departmental and plant processes. This approach can also further be divided into either social or open-close systems: o o Cooperative social systems- concerned with interpersonal and group behavioral aspects leading to a system of cooperation Sociotechnical systems-this has great effect on social system. Mostly focus on production office operations and other areas with close relationships between the technical system and people

Because of the systems approach, manager now have a greater appreciation of seeing the whole picture.

2. OPERATIONAL APPROACH
This is a convenient description of the production oriented area of management dedicated to improving efficiency, cutting waste, and improving quality. This approach has had many labels including scientific

management, operations research etc. the main of operations approach is however to make human machine systems work as efficiently as possible hence this approach has been technically and quantitatively oriented. This approach was brought to global recognition by one Fredrick W Taylor who started the operations management ii four areas: o o o o Standardization Time and Task study Systematic selection and training Pay incentives

3. BEHAVIORAL APPROACH
The behavioral approach to management is usually viewed as beginning with the Hawthorne studies in the late 1920 and early 1930. These historically significant studies marked the first time that human behavior in organizations was systematically analyzed. The scientific management movement recognized the human element of business. Scientific managers did not give as much attention to the systematic analysis of the human element as they did to the physical mechanical aspects of work. It was not until the Hawthorne studies that the powerful dynamics of interpersonal relationships in organizations were recognized and documented. The general conclusion from the Hawthorne studies was that human relations and the social needs of workers are crucial aspects of business management. This principle of human motivation helped revolutionize theories and practices of management. Abraham Maslow, a practicing psychologist, developed one of the most widely recognized need theories, a theory of motivation based upon a consideration of human needs . His theory of human needs had three assumptions:

o o o

Human needs are never completely satisfied. Human behavior is purposeful and is motivated by the need for satisfaction. Needs can be classified according to a hierarchical structure of importance, from the lowest to highest.

Maslow broke down the needs hierarchy into five specific areas: a) Physiological needs. Maslow grouped all physical needs necessary for maintaining basic human well-being, such as food and drink, into this category. After the need is satisfied, however, it is no longer is a motivator. b) Safety needs. These needs include the need for basic security, stability, protection, and freedom from fear. A normal state exists for an individual to have all these needs generally satisfied. Otherwise, they become primary motivators. c) Belonging and love needs. After the physical and safety needs are satisfied and are no longer motivators, the need for belonging and love emerges as a primary motivator. The individual strives to establish meaningful relationships with significant others. d) Esteem needs. An individual must develop self-confidence and wants to achieve status, e) Self-actualization needs. Assuming that all the previous needs in the hierarchy are satisfied, an individual feels a need to find himself. Maslow's hierarchy of needs theory helped managers visualize employee motivation. Douglas McGregor was heavily influenced by both the Hawthorne studies and Maslow. He believed that two basic kinds of

managers exist. One type, the Theory X manager, has a negative view of employees and assumes that they are lazy, untrustworthy, and incapable of assuming responsibility. On the other hand, the Theory Y manager assumes that employees are not only trustworthy and capable of assuming responsibility, but also have high levels of motivation. An important aspect of McGregor's idea was his belief that managers who hold either set of assumptions can create self-fulfilling prophecies that through their behavior, these managers create situations where subordinates act in ways that confirm the manager's original expectations. As a group, these theorists discovered that people worked for inner satisfaction and not materialistic rewards, shifting the focus to the role of individuals in an organization's performance. Behavioral approach can also further be classified into two brad parts: o Interpersonal behavioral approach-this mainly focuses on the interpersonal relationship, leadership and motivation but ignore planning, organizing, and controlling. Physiological training isn t enough for one to become a manager Group behavioral approach-emphasizes on behavior of people in a group butt this is often not integrated with management concepts principles and theory

4. UNIVERSAL APPROACH
This is one of the oldest approaches and is also known as the functional approach. According to this approach, the administration of all organizations, public or private, large or small requires the same rational process. The universalist approach is based on two main assumptions: 1. Although the purpose of organizations may vary, a core management process remains the same across all organizations. Successful mangers are thus believed to be interchangeable between organizations of differing purposes. i.e a manger successful in food company could just be as successful in a telecommunications company. 2. The universal management process can be reduced to a set of separate functions and related principles. Hence every universalist emphasizes on the need for specialization The universal approach is mainly accredited to Henri Fayol who came up with the 14 universal principles of management: o o o o o o o o o o o o o Division of work-specialization of labor is necessary for organizational success Authority-the right to give orders must accompany responsibility Discipline-obedience and respect help with smooth running of organization Unity of command-each employee should receive orders from only one supervisor Unity of direction-efforts of everyone should be geared to a common goal Subordination of individual interest to the general interest-in the event that a tug row should occur, organizational interests prevails to personal interest Remuneration-employees should be paid fairly in accordance with their contribution Centralization-perfect ratio between decentralization and centralization should be established Scalar chain- subordinates should observe the formal chain of command. Equity-fairness and justice leads to devoted and loyal service Stability and tenure of personnel -people should be given time to learn their job Initiative Esprit de corps-harmonious effort among individuals is the key to organizational success

5. CONTINGENCY APPROACH
The contingency approach to management is based on the idea that there is no one best way to manage and that to be effective, planning, organizing, leading, and controlling must be tailored to the particular circumstances faced by an organization. Managers have always asked questions such as "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?" The contingency approach to management (also called the situational approach) assumes that there is no universal answer to such questions because organizations, people, and situations vary and change over time. Thus, the right thing to do depends on a complex variety of critical environmental and internal contingencies. We find that environmental change and uncertainty, work technology, and the size of a company are all identified as environmental factors impacting the effectiveness of different organizational forms. According to the contingency perspective, stable environments suggest mechanistic structures that emphasize centralization, formalization, standardization, and specialization to achieve efficiency and consistency. Certainty and predictability permit the use of policies, rules, and procedures to guide decision making for routine tasks and problems. Unstable environments suggest organic structures which emphasize decentralization to achieve flexibility and adaptability. Uncertainty and unpredictability require general problem solving methods for non-routine tasks and problems However the contingency perspective purports to apply to all aspects of management, and not just organizing and leading, there has been little development of contingency approaches outside organization theory and leadership theory.

6. DECISION THEORY APPROACH

A logical and systematic decision-making process helps you address the critical elements that result in a good decision. By taking an organized approach, you're less likely to miss important factors, and you can build on the approach to make your decisions better and better. Simple decisions usually need a simple decision-making process. But difficult decisions typically involve issues like: a) b) c) d) e) Uncertainty - Many facts may not be known. Complexity - You have to consider many interrelated factors. High-risk consequences - The impact of the decision may be significant. Alternatives - Each has its own set of uncertainties and consequences. Interpersonal issues - It can be difficult to predict how other people will react.

With these difficulties in mind, the best way to make a complex decision is to use an effective process. There are six steps to making an effective decision: Create a constructive environment.

           

Generate good alternatives. Explore these alternatives. Choose the best alternative. Check your decision. Communicate your decision, and take action. Create a constructive Environment: Establish the Objective - Define what you want to achieve. Agree on the process - Know how the decision will be made, including whether it will be an individual or team based decision. Involve the right people Stakeholder Analyses is important in making an effective decision, even if you are making an individual decision. Allow Opinions to be heard Encourage participants to contribute to the discussions, debates and analysis without any fear of rejection from the group. Make sure you are asking the right question Ask yourself whether this is really the true issue. Use creativity tools from the start The basis of creativity is thinking from a different perspective

7. SEVEN S (7S) MANAGEMENT APPROACH

Strategic planning must be developed within the context of an organization. The Seven S framework shows how strategy fits into the larger picture, and allows management to consider how the direction of the company will affect all facets of the company.

The Seven S's are Structure, Systems, Strategy, Style, Skills, Staff, and Shared Values. Each element is interrelated with the other elements. Therefore, management must consider how changes to one element will affect all other elements. Structure: An organization may be structured around customers, products, functions, or other gravitational centers. Structural elements should be semi-autonomous, yet capable of facilitating interaction amongst one another. (For example, in a functional structure, cross-functional teams will play important roles.) Strategy: A company's strategy defines the business within the marketplace - staking out a position of strength that can be maintained for years, if not decades. Strategy begins with a theory that provides puts a company's actions into the context of a larger, explainable process. It attempts to correlate cause and effect within a business context, so that action can be evaluated on the basis of expected result. Style: Refers to the behaviors, beliefs, and approach that is ingrained within the organization. Some corporations have innovative, risk-taking styles, others are highly conservative. A company's style affects who it does business with (i.e., vendors and partners), as well as who does business with it (i.e., customers). If a company's style clashes with its stated strategy (e.g., a conservative culture claiming a strategy of bold change), style is likely to win the day. With concerted effort, style can be changed. However this requires delicacy and patience.

Staff: includes not just the people, but the systems affecting individual and group performance. This includes training, incentives, wages, heirarchy, and intangibles that affect motivation. Although performance reviews and hiring processes are often seen as bureaucratic and unpleasant, they play a vital role in the organization and deserve as much attention as business strategy. Skills include core compentencies and secondary competencies that are the aggregate of employees' individual skills. Companies may have funcational skills in engineering, R&D, marketing, or managing customer relationships. Skills may be based on employees' knowledge, or may involve utilization of patents, assets, or systems. Systems consist of processes and procedures that organize the flow of information and operations. Financial systems allocate and control the flow of money into (e.g., from customers) and out of (e.g., to employees and vendors) the company. Operational systems manage the flow and processing of good and services. Marketing and sales tracking systems provide information about products, customers, and sales effectiveness. Each system should have a reporting component that enables management to monitor performance, and provides data with which to make strategic and operational decisions. Superordinate Goals: unwritten principles that shape behavior. Super ordinate Goals are often unwritten, and must be learned based on the behavior and history of the company, rather than what is stated in the company's mission statement.

Industrial Comparison of various management approaches All the above stated approaches to management can be applied but we realize that not all would work given the diverse nature of businesses. Therefore when choosing which management approach to implement, one has to consider several factors like nature of work and organizational structure. In textile industry for instance; behavioral approach may work very efficiently given that the product of the company is directly related to the human element. If the workers are in good psychological state the output: textile and clothe: will be of very high quality. If the same method was used in a CNC plant, the results would differ since despite having the best human element, the type of CNC machine involved play a greater part. The reverse is also true in that no matter how motivated the workers are, if their technical level doesn t match up to that required to operate those machines, output will be substandard. Its hence the work of the manager to evaluate the nature of his business and weigh the various options to see which fits his line of work and which one maximized profits.

References 1. Robert Kreitner, Management, Tenth Edition 2. "Contingency Approach to Management." Encyclopedia of Management. Ed. Marilyn M. Helms. Gale Cengage, 2006. eNotes.com. 2006. 7 Jun, 2011. 3. http://www.anythingresearch.com/Strategic-Planning/images/7-S-management-framework.png