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
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…
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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/
· 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/
