Management – Modern Schools of Thought
This school of thought primarily focuses on the development of each factor of both workers and the organization. It analyzes the interrelationship of workers and management in all aspects. System Approach and Contingency Approach are the two approaches by this school of thought.
Behavioral and Human Relations Approach
The criticism of scientific and administrative management approach as advocated by Taylor and Fayol, respectively gave birth to the behavioral approach to management. One of the main criticisms leveled against them are their indifference to and neglect of the human side of the enterprise in management dealings. A good number of sociologists and psychologists like Abraham Maslow, Hugo Munsterberg, Rensis Likert, Douglas McGregor, Frederick Herzberg, Mary Parker Follet, and Chester Barnard are the major contributors to this school of thought, which is further subdivided by some writers into the Human Relations approach and the Human Behavioral approach. Elton Mayo and Hawthorne Studies Elton Mayo and Hugo Munsterberg are considered pioneers of this school. The most important contribution to this school of thought was made by Elton Mayo and his associates through Hawthorne plant of the Western Electric Company between 1927 and 1932. Following are the findings of Mayo and his colleagues from Hawthorne studies: Human/social element operated in the workplace…
Henry Fayol’s Universal Process Theory
One of the oldest and most popular approaches, Henry Fayol’s theory holds that administration of all organizations – whether public or private, large or small – requires the same rational process or functions. This school of thought is based on two assumptions: Although the objective of an organization may differ (for example, business, government, education, or religion), yet there is a core management process that remains the same for all institutions. Successful managers, therefore, are interchangeable among organizations of differing purposes. The universal management process can be reduced to a set of separate functions and related principles. Fayol identifies fourteen universal principles of management, which are aimed at showing managers how to carry out their functional duties. 1. Specialization of labor This improves the efficiency of labor through…
Classical School of Management Thought
Scientific Management and F. W. Taylor Scientific management, according to an early definition, refers to “that kind of management which conducts a business or affairs by standards established by facts or truths gained through systematic observation, experiment, or reasoning.” Advocators of this school of thought attempted to raise labor efficiency primarily by managing the work of employees on the shop floor. Frederick Winslow Taylor, who is generally acknowledged as “the father of scientific management” believed that organizations should study tasks and prepare precise procedures. His varied experience gave him ample opportunity to have firsthand…
Management – Evolution & Trends
Management as a practice gained ground when the concept of working together in groups to achieve common objectives was realized by men. But the study of management as a systematic field of knowledge began at the advent of the Industrial Revolution, which ushered in a new era of serious thinking and theorizing on management. To begin with, there is no single universally accepted theory of management. “The wild array of management theories could even look like a jungle” says Harold Koontz. However, to help put the different theories in perspective, we shall discuss them as representing different schools of thought.
Leading
Organizations as they grow, develop complex structures with an increasing need for co- ordination and control. To cope and manage such situations, leadership is necessary to influence people to cooperate towards a common goal and create a situation for collective Response. Leading entails directing, influencing, and motivating employees to perform essential tasks. It also involves the social and informal sources of influence to inspire others. Effective managers lead subordinates through motivation to progressively attain organizational objectives. Personality research and study of job attitudes in Behavioral Science provides important insight on the need for coordination and control. Thus it becomes important for leadership to create harmony among individual efforts to collectively work towards organizational goals.
Overcoming Global Challenges
Organizations have to understand these challenges and work on ways to overcome them if they are to conduct successful business globally. The have to develop competencies that will enable them and their managers to effectively manage and lead international companies. Global Competencies Multinationals should develop global competencies based on factors like the kind of global presence the company desires, the number and type of international or global jobs it requires, etc. Business Competencies Business competencies involve developing business knowledge and understanding of the global business environment.…
Challenges Faced by International Managers
International managers are constantly faced with multiple challenges, which need to be properly understood and dealt with. Some of the challenges are: - Conduct business under local legislations in different countries, languages and currencies, for serving local markets while complying with global company standards. - Location-specific risks like unstable economies and governments, security concerns and labor availability. - Work and deal with employees from different nationalities and cultures, which requires a lot of understanding. - The ever volatile global markets, its infrastructure and the technological disparities among countries.
Global Ecosystem and its Impact
Over the past decade, the business framework and environment has undergone dramatic changes. Due to the intensification of globalization, international organizations are faced with unprecedented competition and pressures. Organizations and respective managements have to understand that operating in the global marketplace multiplies the variables and interdependencies to be considered while making decisions. The volatile global dynamics make the decisions and plans of today outdated by next month. The need for companies in this environment is global executives and managers who apart from analytics, skills and technical insights are able to be effective in such diverse and dynamic settings. Thus, international managers are required to operate in the global context with changing…
