Concept of Management, Theories and Approaches of Management

Concept of Management

• Management is an art and a science.
• Its purpose is to meet set goals and criteria.
• It entails the skill of people management.

Famous writers and philosophers provide common definitions of management.

 
·     “Management is a multipurpose organ that manages the business and manages managers and manages workers and work.” - by Peter F. Drucker

·  "Management is the process of designing and maintaining an environment in which individuals, working together in groups efficiently accomplished selected aims" – by Harold Koontz & Heinz Weinrich

 

The modern concept of management/meaning of management

 The management idea is based on three terms.

• Process: - It refers to a series or sequence of stages, and management is a process that executes a succession of activities to complete tasks. These functions include planning, organising, staffing, directing, and controlling.
• Effectiveness: - is concerned with doing the right thing, finishing tasks, and reaching goals. In other words, it is focused on the end goal. Being successful or performing work effectively entails completing assigned duties or meeting set goals.
• Efficiency: - It refers to carrying out work in the most cost-effective and resource-efficient manner possible. Efficiency necessitates a cost-benefit analysis. It focuses on delivering greater advantages with fewer resources. It emphasises using fewer inputs like money, resources, equipment, and people to generate more output. Management is interested in resource efficiency since reduced costs result in higher earnings.

Significance of management

• Is management important for an organization?
• Yes, it is. Management and managers are two things that all organisations have in common.

1. Management is a goal-oriented process
2. Management is universal or pervasive
3. Management is multidimensional
4. Management is an ongoing process
5. Management is a group activity
6. Management is a dynamic function
7. Management is an intangible force

                                   Scientific management theory

• Frederick Winslow Taylor founded the company.
• It is a management philosophy that examines processes to enhance economic efficiency, particularly labour productivity.
• To be successful, employees and management must collaborate.
• Time, motion, and fatigue tests will be utilised to establish the appropriate quantity of labour performed by each particular worker.
• A fair day's pay for a fair day's labour
• Improving working conditions and standardising tools, work times, and manufacturing costs
• Scientific approaches should be used to select and train workers.
• Employees should be given financial incentives to boost productivity and motivate them to work well.

                                      Administrative theory

•  Propounded by Henry Fayol

He gave 14 principles of management

•  Division of work
• Authority
• Discipline
• Unity of command
• Unity of direction
• Individual interests are subjugated to the general good.
• Remuneration
• Centralization
• Scalar chain
• Order
•  Equity
• Stability of tenure of personnel
• Initiative
• Esprit de corp

                                     Bureaucracy theory

• Introduced by Max Weber
• Systematic framework, defined levels of management

                                           6 principle

• Task specialization
•  Hierarchical structure
• Formal selection process
• Uniform requirement
•  Impersonal environment
• Achievement based advancement

Three kinds of power in the organization

1. Traditional
2. Charismatic
3. Legal rational

                                           System theory

It considers an organization as a system 

Classical Management Theory

·        Classical traditional

·        Emerge from the industrial revolution

·        Focus on efficiency, productivity, and output of employees

·        Criticized for ignoring human desires and needs in the workplace

·        Classical theory is developed in 3 streams

-  Bureaucracy Theory, Administrative Theory, And Scientific Management

Contingency theory

·        Modern theory of management

·        Based on the situational approach

·        The manager or supervisor must change the decisions and behaviour based on the situation/circumstances

·        Says that there is no one best way to lead an organization

Behavioural theory

·        Often called to be the initiation of human relations movement

·        In this theory, the organization is treated as a social system

·   This theory relies on the notion that managers will better understand the human aspects and treat employees as important assets to achieve goals

Human relation theory

·        Propounded by Elton Mayo

·        Focus on study of motivation, conflict, and informal organization

·  It viewed human beings not as machine models but as individuals with different psychological motivations

X and Y theory

·        Theory X & Y are theories of human work motivation and management

·        Created by Douglas Mc Gregor

·    Theory x - this management style assumes that the typical worker has little ambition, avoids responsibility and is individual goal-oriented

·   Theory y - assume employees are internally motivated, enjoy their job and work to better themselves without a direct reward in return

Z theory

·    Ouchi's Theory Z is Dr William Ouchi's so-called "Japanese Management" style that gained popularity during the Asian economic boom of the 1980s.

·    'Theory Z' focused on building employee loyalty to the firm for Ouchi by offering a job for life with a significant focus on the employee's well-being, both on and off the job.

·   Theory Z is a management approach that is based on a combination of American and Japanese management philosophies and is distinguished by, among other things, long-term job security, consensual decision making, individual responsibility within a collective environment, and slow evaluation and advancement procedures.

Also, read about:

• Introduction to Managerial Roles, Skills & Its Levels
• Significance of Management, Management Process and its Functions