Lesson12TheDifferentApproaches&SystemsOfManagement

Lesson12TheDifferentApproaches&SystemsOfManagement...

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Lesson:-12 The Different Approaches and Systems of Management Students, you should know that the year 1911, the year Frederick Winslow Taylor’s Principles of Scientific Management was published, is generally considered as the year in which management scientific method to the development of knowledge. ± ! The scientific method involves the determination of facts through observation. This results in the formulation of concepts and principles. ± ! Concepts are mental images of anything formed by generalization from particulars. When these generalizations or hypotheses are tested for accuracy and appear to be true that is to reflect or explain reality, they are called principles. ± ! Theory is a systematic grouping of interdependent concepts and principles, which give a framework to, or tie together, a significant area of knowledge. Formally, a theory is a coherent group of assumptions put forth to explain the relationship between two or more observable facts. ± ! In the field of management the role of theory is to provide a means of classifying significant and pertinent management knowledge. ± ! Why is theory important? : ± ! Theories provide a stable focus for understanding what we experience. A theory provides criteria for what is relevant. ± ! Theories enable us to communicate efficiently and thus move into more and more complex relationships with other people. ± ! Theories make it possible for us to keep learning about our world. ¾ MANAGEMENT DEVELOPMENT Different Approaches and Systems of Management After understanding the importance of theory or the theoretical approach, let us now understand the evolution of management theory. ² ! Prescientific Management Era ² ! Adam Smith in his Wealth of Nations (1776) introduced the concept of division of labor. ² ! Smith concluded that division of labor increased productivity by increasing each worker’s skill and dexterity, by saving time that is normally lost in changing tasks, and by the creation and better use of laborsaving inventions and machinery. ² ! The general popularity today of job specialization in service jobs as well as on assembly lines isundoubtedly due to the economic advantages cited over 200 years ago by Adam Smith. ! In 1832, Charles Babbage, a mathematician and a teacher, wrote On the Economy of Machinery ² and Manufactures , in which he applied his principles to the workshop. This early work ² introduced the idea of using scientific techniques to improve the managing process.
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± ! The theoretical foundations of management lie in the classical approach to management, whichsought to formulate rational principles that would make organizations more efficient. ! The classical approach to management consists of two subcategories: ± ! Scientific management approach looked at the field from the perspective of how to improve theproductivity of operative personnel. ± ! General administrative approach was concerned with the overall
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Lesson12TheDifferentApproaches&SystemsOfManagement...

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