Tuesday 15 October 2013

Effective Managerial Skills-Part 2

Management can be considered as a system

Key concepts of the systems theory used in management:

a)  A system is a comprehensive assembly of parts becoming an organization to achieve the stated goals
b)      A system is called as OPEN if it has an interaction with the environment
and CLOSED if it has no interaction with the environment
c)      A system is defined, described and understood by the boundaries within which it performs
d)  The system are subject to entropy i.e. tendency to “run down”. Closed system suffer from entropy as they are cut off from the environment, while open system interact with the environment and draw upon the support to maintain a give condition
e)  Systems try to remain in an equilibrium or a steady state by taking recourse to corrective action

The advantage of viewing the management as a system is that it enables us to see the critical variables, constraints and their interactions with one another

Approaches to Management

F.W Taylor’s principles:

a)      Replace the rules of thumbs up with scientific rules
b)      Obtain harmony in group action
c)      Achieve cooperation of human beings, rather than chaotic individualism
d)      Work for maximum output
e)      Develop all workers to the fullest possible potential for their own highest possible prosperity

Carl George Barth, Henry L. Gantt, Frank and Lillian Gilbert are disciples of Taylor, who promoted the thought of scientific management

French Industrialist Henri Fayol promoted the theory of operational management

Fayol was of the view that all the activities of an industrial or business undertaking can be broken into operational functions such as technical, commercial, financial, security, accounting and so on…

14 Principles of Fayol:

a)      Division of work: Specialization increases output by making employees more efficient

b)     Authority: Mangers must be able to give orders. Authority gives them the right

c)      Discipline: Employees must obey and respect the rules that govern the organization

d)     Unity of Command: Every employee should receive orders only from one superior

e)      Unity of Direction: The organization should have a single plan of action to guide managers and workers

f)     Subordination of individual interests to general interest: The interest of any one employee or group of employees should not take precedence over the organization as a whole

g)      Remuneration: Workers must be paid a fair wage for their services

h)     Centralization: The degree to which subordinates are involved in decision making

i)    Scalar Chain: The line of authority from top management to the lowest ranks in the scalar chain

j)        Order: People and materials should be in the right place at the right time

k)      Equity: Managers should be kind and fair to the subordinates

l)    Stability of tenure of personnel: Management should provide orderly personnel planning and ensure that replacement are available to fill vacancies

m)  Initiative: Employees who are allowed to originate and carry out plans will exert higher levels of efforts

n)     Esprit the Corps: Promoting team spirit will bring harmony and unity within the organization

· Fayol regarded that planning, organizing, commanding, coordinating and controlling are the key elements of planning

· He believed operational management would succeed with the elements of management

· During the same period when Taylor, Fayol and others were concentrating on the scientific management other group of scholars were concentrating on Industrial Psychology and social theory as basis of scientific management

· Robert Owen, Rountree, Lynder Orwick focused on personnel management

·  Max Webber, Vilfred Pareto, Mayo Elton stated that productivity could be improved through social factors such as morale and satisfactory relation between members and workgroup and an effective management is possible only if human behavior is managed through the interpersonal skills viz. motivating, counseling, reading, and communicating

·  Hawthreries Studies “Man is a social animal”
o   Emphasis is on Behavioral Sciences

· Chester Bernard
o   1st to argue that the organization are open systems
o Behavioral Managers job was to communicate and stimulate employees high levels of effort
o   Actual Manager who thought that organization is a social system

By: Hitesh Sanghavi, MD-CUNIX, HMLA


To know more about CUNIX...log on to: http://www.cunixinfotech.com/




No comments:

Post a Comment