UNIT-II

Perspectives on Management
 Neo
Classical Classical
Theories
Scienti
Theories
fic Hum Systems Integrati
Manag an Contem
Manage Theory on or
ement rela porary
Admini ment and Manage
tions Manage
strativ
Scho
Science Conting ment
e ment
ol/ Approac ency Process
Manag Approac
ement Beh h Approac Approac
Bureau
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avior h h
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Manag al
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oach
 III. Quantitative/management science approach

 The Quantitative approach evolved from mathematical

and statistical solutions developed from Military solutions
during II world war.
 After the War those techniques used in business
situations.
 Linear Programming, Game Theory and many other
quantitative techniques are used currently by many
modern organizations.
 Ronald Fisher introduced Quantitative techniques for
optimal solutions to business problems
 The limitations of this theory are
1. All Managerial processes are not quantifiable
2. Doesn’t quantify leadership, Motivation etc,
 IV. Systems theory and contingency approach
1. Systems Theory
 Organizations are open systems that interact with environment
 Interdependent and Interrelated which are subsystems
 part of larger economic system and the society
 focus on whole system design distinct from components
 Systems that are synergistic
 synergy is the total effect is greater than the sum of individual
 contributors are peter senge, Chester Bernard
 Chester Bernard
 president of New jersey Bell telephone
 wrote a book functions of executive
 1. concept of strategic planning
 2. Acceptance of theory of authority- Bottom-up
 - employees must understand what managers want
 - employees should comply with the directive
 - think that directives are as per organization objectives
 - think that directive is not contrary to their personal goals
 3. Concept of organization as social system
- Formal Organizations
- Informal Organizations
 Chester Bernard Contributions
A. Formal Organizations : It is a system of consciously coordinated
activities of two or more persons. It comes into existence when
i). Persons who are able to communicate
ii). Willing to contribute in action
iii). Accomplish common objective

Acc. To Bernard there are 4.elements of formal organization

a). A system of specialization- Departmentation
b). A system effective and efficient incentives to encourage
c). A system of power to accept the decisions of managers
d). A system of logical decision making
 Chester Bernard contributions
B. Informal Organizations
• Along with formal organizations informal organizations exists as
complimentary to achieve the following objectives
 To serve as a means of communication
 To bring cohesion in the organization
 To protect the individual from dominance of the organization
4. Functions of Executive :
Bernard identified 3. top functions of an executive which are
a) Establishment and maintenance of formal communication system
b) Securing essential services by hiring and retaining effective people
c) Formulation and definition of Organization purpose in order to
motivate subordinates
 Chester Bernard Contributions
5. Motivation
He suggested no. of non financial incentives in addition to financial
incentives to motivate employees.
o opportunity of power and distinction
o pride of workmanship
o pleasant organization climate
o participation in decision making
o mutually supporting personal attitudes
o feeling of belongingness
6. Vitality of Leadership
-High caliber, technical, technological competence, social skills
7. Organizational equilibrium
Alignment of individual with organizational efforts to satisfy the
concerned individuals
 Contingency view/ situational approach
 In mid 60’s situational approach emerged
 Joan Woodward pioneered this approach
 it emphasizes an appropriate fit between organization
processes and the characteristics of the situation
 there is no one best way to solve the problems
 it questions use of universal practices
 application of management principles based on situations
 the conditions will determine the techniques to be used
 Managers should prepare objectives, policies, procedures
and rules as per the situations and made more effective by
adjusting to the dynamic situations.
 V. Integration or management process approach

 It is advocated by Harold Koontz, Terry and Cyril O’ donnell

 Management is an integration of different managerial functions
 Management is the process of designing and maintaining an
environment in which individuals , working together in groups
efficiently accomplish selected aims.
 this approach emphasizes there is central body of knowledge
taken from different subjects like systems theory, psychology,
sociology and mathematics and many others.
 these techniques and concepts are applied worldwide to study
the principles of management
 it is an attempt to develop and test management principles
through research and for further continuous improvement
overtime.
 VI. Contemporary management approaches
 Management by Objectives (MBO)- Peter Drucker- development of
specific performance goals jointly by employees and their managers.
 Managerial roles approach – Henry Mintzberg- a study involving
5.CEOs and 10.roles and the conclusion is that managers do not
practice the functions of management ( planning, organizing, leading
and controlling) but to be learnt from the actual practices of
managers.
 Quality Management system- Deming, juran and Crosby-
Inspection, Quality control, ISO 900 QMS, Quality of work life(QW
L), Total quality management(TQM), CMM quality level model, Six
Sigma
 McKinsey 7 S framework- sttrategy,structure, systems (hardware)
and staff, skills,style, shared values (software)