APPROACHES TO MANAGEMENT

EMPIRICAL, OR CASE, APPROACH 1/2

6 blind men went to see an elephant.

One touched the ear and said – it is like a FAN
One touched the tail and said – it is like a ROPE
……. And so the story goes… SPEAR, SNAKE….

Little researched knowledge is INCORRECT

Only by being open to reading, digesting and synthesizing multiple

perspectives can we get a true picture of the elephant
 EMPIRICAL, OR CASE, APPROACH 2/2

SURVEY BASED METHODOLOGY

- non invasive, - low cost
- Can measure direct observables and latent
- Perceptual surveys prone to bias
- Some other issues like survey fatigue, mis-interpretation
CASE-STUDY BASED METHODOLOGY
- In-depth & qualitative approach
- First hand knowledge, richness of description
- Thorough examination of various factors
- Leads to new inquiry (not thought before)
- Issues – call for a lot of time, difficult to generalise, biasness
due to involvement of multiple researchers
INTERPERSONAL/BEHAVIOURAL APPROACH

- It is about getting things done through people

- Hence study of interpersonal skills, motivation,
leadership
- Focus is on the individual and them working in teams
- Need for trained psychologists
- Managers try to be amateur psychologists
- Mistake of equating ‘led’ to ‘managed’
- Psychological strip tease (sensitivity training) teaches
one to be sensitive not good at managing
 GROUP BEHAVIOUR APPROACH

- It is concerned with behaviors of people in groups

- Hence studies social psychology and not individual
psychology
- Organisation Behaviour originates from here
- This approach helped leaders focus on team – away from the
focus on machines
- Psychological tests were used for selection, Learning Theory
in training.
- Hawthorne studies pioneered research into OB
- Clear need to de-link Organization Behavior & Management.
- Group Behavior is an important aspect of Management but
not the only aspect
CO-OPERATIVE SOCIAL SYSTEMS APPROACH

- Looks at human relationships as co-operative

social systems
- Focus is more on cultural inclusiveness
- Not too many takers – all managers donot fit
into a co-operative society
- Does not apply to an unorganised group
SOCIO TECHNICAL SYSTEMS APPROACH

- High quality performance is a balance between

production and people (social system & technical
system)
- Looks beyond human relationships –
Technology/Machines have a critical role to play
- Humans need information to perform (SOCIO) and
critical equipment to manufacture (TECHNICAL)
- Relevant in industrial engg companies – e.g. oil,
manufacturing, assembly line
 DECISION THEORY APPROACH
Almost everything that a human being does
involves decisions
A committee has to make a decision, but its members
have different opinions. What rules should they use
to ensure that they can reach a conclusion even if
they are in disagreement?
A political scientist is likely to study voting rules and other aspects of collective
decision-making

A psychologist is likely to study the behaviour of individuals in decisions,

A philosopher is likely to study the requirements for rationality in decisions

 DECISION THEORY APPROACH
Shall I bring the umbrella today?

The decision depends on something which I do not know, namely whether it will rain or
not.

I am looking for a house to buy. Shall I buy this one?

This house looks fine, but perhaps I will find a still better house for the same price if I go on
searching. When shall I stop the search procedure?

Am I going to smoke the next cigarette?

One single cigarette is no problem, but if I make the same decision sufficiently many times it
may kill me
 DECISION THEORY APPROACH
DECISION MAKING can be easy if …

Goals are clear

Environment can be easily anticipated
Adequate information is available
I am competent to make a decision
SYSTEMS THEORY APPROACH
SYSTEMS THEORY APPROACH
 SYSTEMS THEORY APPROACH
A system consists of inter-related and interdependent parts

The approach emphasizes the study of the various parts in their inter-relationships rather
than in isolation from each other

The approach brings out the complexity of a real life management problem much more
sharply than any of other approaches
 MANAGEMENT THEORY APPROACH

Art of mathematical modeling

Linear models, network models, decision model, inventory model

Science of the solution techniques for solving mathematical models

Involves expertise from various fields like accountants, economists, production
personnel,

How Do We Get Started?

Can we do better?
HELP!!
MANAGEMENT THEORY APPROACH
MANAGEMENT THEORY APPROACH
 Contingency/Situation APPROACH
Situations decide the course of action

Situations decide the structure of an organization e.g

an assembly line situation would call for a formal
complex organisation.

Uncertainty and unpredictability require general problem solving methods for

nonroutine tasks and problems

Some experts also link Organization structure to behaviour in this approach

Contingency/Situation APPROACH
 SCIENTIFIC MANAGMENT

Science, not rule of thumb.

Harmony, not discord.

Cooperation, not individualism.

Maximum output, in place of restricted output.

The development of each man to his greatest efficiency and

prosperity.