I.

The Classical Approach

The classical organizational theory views an organization as a machine and employees as the various parts
of that machine.
The classical approach to management focuses on centralized authority, labor specialization, and
incentives to optimize productivity in an organization and, in turn, drive profits. Workplaces are segregated
into three levels of authority: business leaders or top-level management, middle management, and
supervisors. Work is divided among individual workers who specialize in their own distinctive fields.
The classical theory prioritizes employees’ physical and economic requirements over job satisfaction and
social needs. It advocates financial rewards, wage hikes, and incentives to encourage employees to be more
productive. When employees work hard and function to their full potential, organizational efficiency
increases.

Branches of Classical Approach to Management

For discussion purposes, the classical approach to management can be broken down into two distinct areas.
The first area, lower-level management analysis, consists primarily of the work of Frederick W. Taylor,
Frank and Lillian Gilbreth, and Henry L. Gantt. These individuals studied mainly the jobs of workers at
lower levels of an organization. The second area, comprehensive analysis of management, concerns the
management function as a whole. The primary contributor to this area was Henri Fayol.

Figure A1.1 Division of the classical approach to management into two areas and the major contributors to each area
Lower-Level Management Analysis
Lower-level management analysis also known as the scientific method of management, or simply scientific
management concentrates on the “one best way” to perform a task; that is, it investigates how a task
situation can be structured to get the highest production from workers
Frederick W. Taylor is known as the father of scientific management. This branch of classical theory focuses
on scientific methods and empirical research to examine the most effective methods to accomplish specific
tasks. It aims to extract the best out of every employee by assigning jobs based on employee skill set and
competency. Workflow is divided between managers and employees. Managers strategize, train, and monitor
employees; employees perform their assigned roles
Although the techniques of scientific managers could conceivably be applied to management at all levels, the
research, research applications, and illustrations relate mostly to lower-level managers

Comprehensive Analysis of Management

Whereas scientific managers emphasize job design when approaching the study of management, managers
who embrace the comprehensive view—the second area of the classical approach—are concerned with the
entire range of managerial performance.
The main proponent of the comprehensive management branch of classical theory was Henri Fayol, a
French industrialist. Administrative management aims to improve organizational productivity by focusing on
methods that managers can use to synchronize internal processes. Fayol believed managerial practices are
key to driving efficiency in organizations. Therefore, this branch seeks to heighten managerial performance
instead of individual worker efficiency.

Limitations of the Classical Approach

The classical approach does not adequately incorporate human variables. People today do not seem to be as
influenced by bonuses as people were in the nineteenth century. It is generally agreed that critical
interpersonal areas, such as conflict, communication, leadership, and motivation, are shortchanged in the
classical approach.

II. The Behavioral Approach

The behavioral approach to management emphasizes increasing production through an understanding of
people (job satisfaction and environment they want). According to proponents of this approach, if managers
understand their employees and adapt their organizations to those employees, organizational success will
usually follow.

Branches of Behavioral Approach to Management

The behavioral approach has been divided into two branches: the Human relations approach and the
behavioral science approach.
 Human Relations Approach
The term human relations refers to the way in which managers connect to subordinates. Managers face
many difficulties because staff members usually do not stick to predetermined and balanced patterns of
behavior. Supporters of the Human relations approach feel that management should recognize employees'
need for recognition and social acceptance. Management should look upon the work group as a positive force
that can be used productively. Thus, managers must be competent in human relations skills along with
technical skills.
 Behavioral Science Approach
The Behavioral Science Approach is actually an extension of the Human Relations Approach. It gave value
to the attitudes, behavior, and performance of people and groups within the organizations. The advocates of
the behavioral science approach consider that humans are much more complex than the economic man's
description of the classical approach and the social man's description of the human relations approach. This
approach focuses on the nature of work, and the degree to which it will satisfy the human need to show skills
and expertise.
To achieve better employee performance, communication, motivation, participative management, leadership,
and group dynamics are integrated into this approach. The behavioral approach acknowledges the quality of
leadership as a major element in management success. It concentrates on group relationships and recognizes
the part of individual mindset and group behavior in organizational effectiveness.

III. The Management Science Approach

The management science approach suggests that managers can best improve their organizations by using
the scientific method and mathematical techniques to solve operational problems

The Beginning of the Management Science Approach

Developed during World War II to find solutions to warfare issues, the management science approach uses
mathematical models to solve problems. Also known as a quantitative approach, the approach analyzes a mix
of feasibilities, constraints and cost to enable management to make decisions. The management science
approach is a type of organizational environment theory. It combines rational thought with intuitive insight to
resolve management concerns such as cost, production and service levels.

Management Science Today

The widespread use of computers in the workplace and the introduction of the Internet have had a significant
impact on organizations’ use of management science techniques. In the twenty-first century, managers in
organizations of all sizes now have ready access to a wealth of tools and other resources that enable them to
apply the principles of management science to their companies easily. Not only has the introduction of
technology transformed how businesses operate, but it also enables leaders to automate and organize their
company’s systems for greater consistency—and allows them to use the power of technology to aid in their
decision making.

Characteristics of Management Science Applications

Four primary characteristics are usually present in situations in which management science techniques are
applied.
First, the management problems studied are so complicated that managers need help analyzing a large
number of variables. Management science techniques increase the effectiveness of the managers’ decision
making in such a situation.
Second, a management science application generally uses economic implications as guidelines for making a
particular decision, perhaps because management science techniques are best suited for analyzing
quantifiable factors such as sales, expenses, and units of production.
Third, the use of mathematical models to investigate a decision situation is typical in management science
applications. Models constructed to represent reality are used to determine how the real-world situation
might be improved.
The fourth characteristic of a management science application is the use of computers. The great complexity
of managerial problems and the sophisticated mathematical analysis that is required for problem-related
information are two factors that make computers especially valuable to the management science analyst.

IV. The Contingency Approach

In simple terms, the contingency approach to management emphasizes that what managers do in practice
depends on, or is contingent upon, a given set of circumstances—a situation. In essence, this approach
emphasizes if–then relationships: “If” this situational variable exists, “then” a manager probably would take
this particular action. For example, if a manager has a group of inexperienced subordinates, then the
contingency approach would recommend that he or she lead in a different fashion than if the subordinates
were experienced.
In general, the contingency approach attempts to identify the conditions or situations in which various
management methods have the best chance of success. This approach is based on the premise that, although
there probably is no one best way to solve a management problem in all organizations, there probably is one
best way to solve any given management problem in any one organization. Perhaps the main challenges of
using the contingency approach are the following:
1. Perceiving organizational situations as they actually exist
2. Choosing the management tactics best suited to those situations
3. Implementing those tactics competently

V. The System Approach

The system approach to management is based on general system theory. The main premise of the theory is
that, to understand the operation of an entity fully, the entity must be viewed as a system. A system is a
number of interdependent parts functioning as a whole for some purpose.

Types of Systems
According to von Bertalanffy, the two basic types of systems are closed systems and open systems.
A closed system is not influenced by, and does not interact with, its environment. Such a system is mostly
mechanical and has predetermined motions or activities that must be performed regardless of the
environment. A clock is an example of a closed system. Regardless of its environment, a clock’s wheels,
gears, and other parts must function in a predetermined way if the clock as a whole is to exist and serve its
purpose.
The other type of system, the open system, is continually interacting with its environment. A plant is an
example of an open system. Constant interactions with the environment influence the plant’s state of
existence and its future.

Systems and “Wholeness”

The concept of “wholeness” is important in general system analysis. The system must be viewed as a whole
and modifiable only through changes in its parts. Before one can modify the parts for the overall benefit of
the system, however, one must have a thorough knowledge of how each part functions and the
interrelationships among the parts. L. Thomas Hopkins suggested the following six guidelines for anyone
conducting system analysis:
1. The whole should be the main focus of analysis, with the parts receiving secondary attention.
2. Integration is the key variable in wholeness analysis. It is defined as the interrelatedness of the many parts
within the whole.
3. Possible modifications in each part should be weighed in relation to possible effects on every other part.
4. Each part has some role to perform so that the whole can accomplish its purpose.
5. The nature of the part and its function is determined by its position in the whole.
6. All analysis starts with the existence of the whole. The parts and their interrelationships should then
evolve to best suit the purpose of the whole.

The Management System

The main parts of the management system are organizational input, organizational process, and
organizational output, these parts consist of organizational resources, the production process, and finished
goods, respectively. The parts represent a combination that exists to achieve organizational objectives,
whatever they may be. The management system is an open system—that is, one that interacts with its
environment.
Environmental factors with which the management system interacts include the government, suppliers,
customers, and competitors. Each of these factors represents a potential environmental influence that could
significantly change the future of the management system.
VI. Learning Organization: A New Approach?
A learning organization is an organization that does well in creating, acquiring, and transferring knowledge
and in modifying its behavior to reflect new knowledge.
Learning organizations emphasize systematic problem solving, experimenting with new ideas, learning from
experience and past history, learning from the experiences of others, and transferring knowledge rapidly
throughout the organization.
Managers attempting to build a learning organization must create an environment conducive to learning and
encourage the exchange of information among all organization members.
Senge, his colleagues at MIT, and many others have made significant progress in developing the learning
organization concept. According to Senge, building a learning organization entails building five features
within an organization:
1. Systems thinking—Every organization member understands his or her own job and how the jobs fit
together to provide final products to the customer.
2. Shared vision—All organization members have a common view of the purpose of the organization and a
sincere commitment to accomplish the purpose.
3. Challenging of mental models—Organization members routinely challenge the way business is done and
the thought processes people use to solve organizational problems.
4. Team learning—Organization members work together, develop solutions to new problems together, and
apply the solutions together. Working as teams rather than as individuals will help organizations gather
collective force to achieve organizational goals.
5. Personal mastery—All organization members are committed to gaining a deep and rich understanding of
their work. Such an understanding will help organizations successfully overcome important challenges that
confront them.