Schools of Management Thought
The study of management has evolved over the years, leading to the development of various schools of management thought. These schools of thought represent different approaches to understanding and managing organizations.
Table of Content
- 1 Schools of Management Thought
- 2 The Classical School
- 3 Behavioural School
- 4 The Management Science School
- 5 Integrating the Two Approaches
- 6 Ouchi’s Theory Z Management
- 7 Management as Profession
- 8 Professionalisation of Management in India
- 9 FAQ
The vigilance and alacrity of considerable ancient constructions is significant to current managers. The antecedent of management considerations benefits managers with a mannerly configuration for behaviour.
In terms of duration, it is found that the most productive olden customary organisation of western civilization was Roman Catholic Church. Furthermore, management advanced consequence, as community progressed and actuated into the Industrial rebellion generation.
There are main three approaches as prescribed by Donnelly, Gibson and Ivancevich which offered management thought as:
- Classical approach
- Behavioural approach
- Management approach
As seen, nowadays, the idea of management relates to mixture of long and complicated evolutionary process having four main forces such as economic, social, political-legal and technological. There exists disagreement on types of approaches with necessary function causing them to work.
The Classical School
It is found that classical school normally cover two domains:
- Lower-level management analysis.
- Comprehensive analysis of management
It has been identified that management science school will possess managers possessing scientific aspects of getting problems solved which relates to making decisions. Such mechanism comes out to improve productivity by way of efficient use of physical and human resources which results from contribution of five people such as:
- Frederick W. Taylor
- Frank and Lillian Gilbreth
- Henry Gantt
- Harrington Emerson
Frederick W. Taylor (1856-1915)
Frederick Winslow Taylor is commonly called as the father of scientific management.
It has certain principles such as:
Invent science for every workers job which will alter the rules of thumb.
- Specialised job should be need of every job.
- Make sure about good selection involving training and construction of workers.
- Planning and scheduling of the work are required.
- Established Standards related to every method and time for each task.
- Wage incentives carry internal structure of every job work.
Frank Gilbreth (1868-1924), Lillian Gilbreth (1878-1972)
Frank and Lillian Gilbreth are engineers engaged in producing important contributions in fields of motion and simplified work. The use of motion picture cameras, appears to be an important and economical motions related to every task which makes the reduction and up gradation of process.
Henry L. Gantt (1861-1919)
Henry worked towards work scheduling and control of processes. He amends the systems or organisations by way of task scheduling and reward innovation. He invented the Gannt chart which basically control and apply for scheduling.
Harrington Emerson (1853-1931)
Emerson worked on the principles of efficiency and he was famous for strong advocate involved in taking strict distinction among line and staff activities in organisations.
It is found that scientific management focused on the productivity of individual workers at the same time, the administrative theory focused on total organisation. The major contributors of such theory are:
- Henry Fayol
- Lyndall Urwick
- Chester Barnard
- Alvin Brown
- Oliver Sheldon
- Max Weber
- Henry Dennison
Henry Fayol was notable contributors who had written book on General and Industrial Management.
He discussed 14 general principles of management such as:
Principles of Management
- Division of labour: It led to increased productivity when both managerial and technical works are carried out.
- Authority: Fayol explained this as right to give orders and power to correct obedience.
- Discipline: It makes the employees to respect for rules which govern an organisation.
- Unity of command: It says the employees get orders from superior.
- Unity of direction: It explains about grouping of activities in an organisation under single head and single plan.
- Subordination of each interest: Individual interest should not be put in front of interests of an organisation in total.
- Remuneration: There should be carry compensation which is to be distributed against good performance.
- Centralisation: Degree of adopting centralisation or decentralisation as per specific organisation with managers to retain ultimate responsibility of doing work correctly.
- Scalar chain: It is an authoritative chain in an organisation which appears from top to bottom and carried out unity-of-command principle by allowing correct flow of information.
- Order: To keep human and material resources at right place in right time.
- Equity: It makes the employees to treat with equally possible rights.
- Stability of personnel: Established firms carry stable group of employees.
- Initiative: The employees are free to take initiative anytime.
- Esprit de corps: The managers uplift sense of unity as an effort by way of harmony of interests.
It is studied that behavioural school carries a profound effect on management by covering topics like motivation, communication, leadership, organisational politics and employee behaviour. It was predicted by various writers and was contributed by:
- Human relations movement
- Behavioural science approach
The Human Relations Movement
As studied, many Harvard researchers under the guidance of Elton Mayo details on worker productivity known as Hawthorne studies during year 1924 at Western Electric Company. With this theory, human relations movement grew that suggest regarding the treatment of individual and social processes for changing the worker nature and behaviour.
The impact is that the management is able to locate importance of worker’s needs by finding and social satisfaction. Further the contributors Abraham Maslow and Douglas McGregor helped in with the advance human relations movement.
Behavioural Science Approach
Organisational behaviour accepts that the behaviour is more complicated as compared to human relations who led to start of systematic research which draws attention on psychology, sociology, anthropology, economics and medicine.
The Management Science School
After World War II, the management schools started growing by operational research teams of both US and UK. It is found that Churchman, Ackoff and Arnoff describe management science approach as application of scientific method with problem upcoming in operations for solving mathematical equations arises by such system.
It is compared that management science is similar to scientific management having certain characteristics features like:
Basically scientific management relates to production work and efficacy of both man and machine, whereas management science shows success from planning and correct direction.
Mathematical model lowers managerial decision to mathematical form while decision making process simulates and appears earlier than real decision.
With the presence of computers, there exists an emergency of management science as computer serves the backbone of science.
Evaluation of model is done on basis of correct criterias.
Integrating the Two Approaches
Early during 25 years, the attempts have been made to get integration of various approaches to management. These are:
- The Contingency Approach
- The Systems Approach
The Contingency Approach
The theory of contingency approach was developed by Joan Woodward who worked for the influence of technology on an organisation. Woodward believed that variations in organisation structure are related to difference in production and manufacturing techniques. According to Woodward, different technologies led to varied demands that are meet by correct structure.
Apart from many authors who worked on ides of contingency thinking, James D. Thompson worked on technology which will give feel to an organisation. According to Thompson, organisation with experience having technological problems will be busy in similar behaviour.
The Systems Approach
It is found that the systems behaviour of management can be liable for analysing problems as compared to the views of school of management. According to Ludwig von Bertalanffy founder of general system theory, the view is on concept where system can be part of an organisation. . As per his view, there are five components involved in a system that are: inputs, process, outputs, feedback and environment.
It is analysed that systems behaviour is important in case of general management findings. As seen, there exist four ideas which impacts on management thinking that are concepts related to open v/s closed systems, subsystems, interdependencies, synergy as well as entropy. These are detailed as shown:
- Open v/s closed systems: Ludwig von Bertalanffy believed that there are exist two systems as closed and open. He explained that a closed system does not interact with environments where as in open systems, the interaction occurs with environment. He suggested that every organisations are open systems in spite of degree of interaction.
- Entropy: It is a universal property of systems that has a tendency to run down and die. Such will be avoided by management system.
- Synergy: It shows that the total will be more than sum of individual parts. This idea is good for managers where reinforcement of work is carried out together in agreed manner.
- Subsystems: It is system inside another system which can be parts of system that depends on one another.
Ouchi’s Theory Z Management
Ouchi’s Theory Z is a management philosophy that was introduced by William Ouchi in his book “Theory Z: How American Business Can Meet the Japanese Challenge” in 1981. The theory was an attempt to understand and explain the success of Japanese companies in the 1980s.
Theory Z is often seen as an approach to management that emphasizes long-term employment, collective decision-making, holistic concern for employees, and a focus on improving the quality of work life.
In recent years there appears to be two management trends which are followed by Japanese management practice which have renewed so as to get good product and service quality. The success of Japanese companies made the management writers to examine about certain Japanese organisations.
It was catered by Ouchi’s Theory Z. Ouchi differentiated between the American and Japanese on seven aspects:
- Length of employment
- Mode of decision making
- Locations of responsibility
- Speed of evaluation and promotion
- Mechanism of control
- Specialization of career path
- Nature of concern of the employee
As per Peter and Waterman, the excellent seller on America’s top run companies follows the eight basic principles of excellence which reflect such establishment in terms of management value as well as corporate culture.
- Biased in action: Good companies value action, working and implementation. They are performance driven.
- Closeness with customer: Successful companies are more or less motivated by customers as per their needs and satisfaction. There is a constant need growth which means even the company needs to step up the supply. This can only happen when the company is in touch with the customer‟s needs.
- Autonomy and entrepreneurship: The use of innovation and vitality work as a pillar for organisational structure.
- Productivity by people: Successful companies encourage people to take part in activities such as production, marketing and new product invention.
- Hands on, value driven: Successful companies are clear with their system value. and vision.
- Simple form with lean staff: Top performing companies have simple and smart structural form and systems where less staff functions.
- Simultaneous losing tight properties: Good companies‟ carry tight controls in related areas while loose controls of different parameters.
If the above principles are applied in companies, then such companies will tend to develop an atmosphere which boosts the entrepreneurial relations to new opportunities and changes.
Management as Profession
The word profession has been given a variety of meanings and different people attach different characteristics to it.
For example, in an early definition, Carr-Saunders claims that a profession, “may perhaps be defined as an occupation based upon specialised intellectual study and training, the purpose of which is to supply skilled service or advice to others for a definite fee or salary.”
Characteristics of a Profession
The list of characteristics that follows is extensive, but does not claim to include every characteristic that has ever been attributed to professions, nor do all of these features apply to every profession:
- Skill based on theoretical knowledge: Professionals are presumed to possess extensive theoretical knowledge (e.g. architecture, medicine, law and scripture) and to retain skills based on that knowledge that they are able to apply in practice.
- Professional association: Professions generally prefer to have professional bodies organised by their members, which are intended to enhance the status of their members and are carefully controlled entrance requirements.
- Testing of competence: For membership of a professional body, there is a requirement to pass prescribed examinations based on mainly theoretical knowledge. These are specialised examinations targeted to get committed and dedicated individuals to work in the profession.
- Institutional training: In addition to examinations, there is usually a requirement for a long period of institutionalized training where aspiring professionals acquire specified practical experience in some sort of trainee role before being recognized as a full member of a professional body.
Continuous upgrading of skills through professional development is also mandatory these days. This happens post training period. It is a continuous process and is essential for the individual and institution‟s growth.
- Licensed practitioners: Professions seek to establish a registration or membership so that only those individuals so licensed are recognized as bona fide.
- Work autonomy: Professionals tend to retain control over their work, even when they are employed outside the profession in commercial or public organisations. They also gain control over their own theoretical knowledge.
- Code of professional conduct or ethics: Professional bodies usually have codes of conduct or ethics for their members and disciplinary procedures for those who infringe the rules.
- Self-regulation: Professional bodies tend to insist that they should be selfregulating and independent from government. Professions tend to be policed and regulated by senior, respected practitioners and the most highly qualified members of the profession.
- Public service and altruism: The earning of fees for services rendered can be defended because they are provided in the public interest, e.g. the work of doctors contributes to public health.
- High status and rewards: The most successful professions achieve high status, public prestige and rewards for their members. Some of the factors included in this list contribute to such success.
- Indeterminacy of knowledge: Professional knowledge contains elements that escape being mastered and communicated in the form of rules and can only be acquired through experience.
- Mobility: The skill, knowledge and authority of professionals belong to the professionals as individuals, not the organisations for which they work. Professionals are, therefore, relatively mobile in employment opportunities as they can move to other employers and take their talents with them. Standardization of professional training and procedures enhances this mobility.
Management as an Emerging Profession
The above-mentioned points show that management possesses only certain characteristics of a profession while others are missing. Therefore, it cannot be said to be a profession, though it is emerging as a profession and the move is towards management as profession. Reiss has classified professions into five categories in contemporary industrial society. They are as follows:
- Old established professions founded upon the study of a branch of learning, e.g. medicine.
- New professions founded upon new disciplines, e.g. chemists, social scientists.
- Semi-professions based upon technical knowledge and practice, e.g. nurses, teachers, social workers.
- Would-be professions with familiarity with modern practices in business etc. and aspiring to achieve professional status, e.g. personnel directors, sales directors, engineers.
- Marginal professions based upon technical skill, e.g. technicians, draughtsman.
It is quite clear that management fulfils several essentials of a profession; even then, it is not a full-fledged profession because:
- It does not restrict the entry in managerial jobs for account of one standard or other.
- No minimum qualifications have been prescribed for managers.
- No management association has the authority to grant a certificate of practice to various managers.
- All managers are supposed to abide by the code formulated by AIMA.
- Competent education and training facilities do not exist.
- Managers are responsible to many groups such as shareholders, employees and society. A regulatory code may curtail their freedom.
- Managers are known by their performance and not mere degrees.
- The ultimate goal of a business is to maximize profit and not social welfare. That is why Haymes has rightly remarked, “The slogan for management is, He who serves best, also profits most.
Management, does not seek to control the entry in the manner as many of the old established professions do but the educational requirement of future managers may provide a similar consequence. Moreover, the professional status of management should not be viewed in the context of controlled entry. This may be against the development of management itself.
Professionalisation of Management in India
To assess the present status of professionalization of Indian management, it is essential to conduct different studies which unfortunately have not been conducted. The research is required to find out the extent to which an Indian management has been professionalised. The basic characteristics of management as a profession are found in Indian management in varying degrees.
The facilities of formal education in management, establishment of All India Management Association, growing divorce of ownership and management and formulation of a code of conduct by All India Management Association suggest that there is professionalization of management in India.
This is labelled as traditional management. These two contrasting views need further elaboration. From this point of view, the Indian management can be divided into two parts: traditionally managed sector and professionally managed sector.
Traditionally Managed Sector
In common terms, Indian management is described as „family management‟ with „traditional values‟. The two distinguished features of family management are:
- Both ownership and control of the organisation are in the hands of the members of the family.
- Organisational objective is to maximise profit even if it necessitates exploitation of the weaker sections of the society.
This type of management maintains the control of the organisation by value system of the family and often, there is great variation between the management styles of two organisations controlled by two different families. The mere appointment of some people with professional degrees will not necessarily lead to professionalization of management unless there is a significant transformation in the management process. In this context, L.C. Gupta, a management educationist, observes as follows:
“Professionalization will not result from hiring people having professional degrees, but will originate when professionals have required authority which they can use in taking professional decisions. We may employ MBAs and other technocrats in the purchase and sales departments, but if buying and selling are to be done through family firms, where is the scope of professionalism?
More than professional degrees, what matters is professional ethics.” Sumantra Ghoshal, a management guru, has observed as follows: “Entrepreneurs have enjoyed the fastest growth so far but this is not sustainable because much of this growth has come at the cost of destroying value.
The Indian private sector, largely dominated by family capitalism, must change and overhaul its governance structure. From feudal lordships, they must change to adopt the governance mechanisms of modern corporations.” It is an accepted fact that managers in many public sector organisations, particularly at higher levels, often greatly borrow the traits of bureaucracy, just as the top-level private sector managers carry a family or business house trait, even though they have the facade of professionalization.
Many top-level public sector managers have worked, lived and imbibed in the government way of working. This seriously comes in the way of initiative, innovativeness and flexibility so essential for public sector organisations. Sometimes, civil servants, military.
personnel and politicians who do not have commensurate professional competence are appointed to head public sector organisations. In such a case, one hardly expects any professionalism at the lower levels also. Therefore, it can be suggested that in many private sector and public sector organisations, there is lack of professionalization of management.
Management is a key factor in the economic development of the country and development of individual organisations, lack of professional content in it has been one of the main reasons for the unsatisfactory performance of these organisations. The technology, which has been so frequently imported, could not be put to the best possible use in the absence of commensurate professional management support.
The basic reason for lack of professional management is as follows:
- There appears to be attitudinal conservatism, which further hampers the emergence of professional management.
- Organisations in the private sector are almost always a one-man show.
- The emergence and development of public sector enterprises have put pressure on the Indian government.
- Business in India has not yet reached the level of sophistication that is the need of the hour. The Western world is far ahead of us when it comes to structure and working of a business.
Professionally Managed Sector
As against traditionally-managed sector, there are various organisations, both in private sector as well as in public sector, whose management is highly professionalised.
There are numerous such companies like Hindustan Lever Limited, ITC Limited, British Oxygen Limited, Infosys Technologies, Wipro, Tata Iron and Steel Company, TELCO and so on in private sector and Bharat Heavy Electricals Limited, Oil and Natural Gas Commission, Indian Oil Corporation, etc. in public sector.
These concerns retain deduced management graduates at diversified categories of management, interposed latest considerations of management, set organisational objectives conducive to communal expectations as well as energized their personnel to capture high category of sophisticated proficiency.
In evidence, managers in this domain can be contrasted with their counterparts in the Westin grades of employment of contemporary management mechanisms, attitudes towards management activities as well as enduring management considerations appropriate for the nation.
The main reasons for the professionalization in this sector are as follows:
It is an important factor which takes part in professionalization of Indian management where modern management was initiated by subsidiaries and counterparts of multinational operating in India.
Professionalization as compulsion
Despite compulsions in various management sectors, such public sectors have increased their manifold at time of planning. With the failure in beginning, nonprofessional managers working with public sector enterprises will revert from responsibility of full managerial cadre and process.
Availability of trained and educated professionals
Whereas the above two factors have created the need for professionalization, availability of trained and educated professional managers has facilitated the process of professionalization of management.
What is Ouchi’s Theory Z Management?
Ouchi’s Theory Z is a management philosophy that was introduced by William Ouchi in his book “Theory Z: How American Business Can Meet the Japanese Challenge” in 1981. The theory was an attempt to understand and explain the success of Japanese companies in the 1980s. Theory Z is often seen as an approach to management that emphasizes long-term employment, collective decision-making, holistic concern for employees, and a focus on improving the quality of work life.