METHOD FOR IMPLEMETING MANAGEMENT THEORY AND PRACTICE IN REAL WORLD ORGANIZATIONAL ENVIRONMENT

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METHOD FOR IMPLEMETING MANAGEMENT THEORY AND PRACTICE IN REAL WORLD ORGANIZATIONAL ENVIRONMENT

CHAPTER ONE

INTRODUCTION

Background of the study

Rational economic view, scientific management, administrative principles, and bureaucratic organization characterize this phase. While the rational economic view assumed that people are motivated by economic gains primarily; scientific management of F.W. Taylor and others emphasized on best way of production etc; administrative theorists personified by Henri Fayol etc looked at the best way to combine jobs and people into an efficient organization; bureaucratic organization theorists led by Max Weber looked at ways to eliminate managerial inconsistencies due to abuse of power which contributed to ineffectiveness. This was the era of the industrial revolution and factory system of production. Large scale production would not have been possible without adherence to the principles governing organizing production based on division of labor and specialization, relationship between man and the machine, managing people and so on.

Neo Classical Theory — Human Relations Approach

This school of thought developed between 1920s to 1950s felt that employees simply do not respond rationally to rules, chains of authority and economic incentives alone but are also guided by social needs, drives and attitudes. Hawthorne Studies at GEC etc., were conducted then. It was quite natural that in the early phases of the industrial revolution, the emphasis was on development of techniques and technology. The attention to the human factor was the salient aspect of this school of thought. This attention was to serve as a precursor to the development of behavioral sciences.

Behavioral Science Approach— Organizational Humanism

Organizational behaviorists like Chris Argyris; Douglas McGregor, Abraham Maslow and Fredrick Herzberg used the knowledge of psychology, sociology and anthropology to develop this approach. The underlying philosophy of organizational humanism is that individuals need to use all of their capacities and creative skills at work as well as at home.

Management Science/Operational Research

It emphasizes research on operations and use of quantitative techniques to aid managers to take decisions.

Modern Management

It sees modern organizations as complex systems and underlies contingency approach and use of modern techniques to solve organizational and human problems.

Definition of Management

Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.

It is also defined as the art of getting things done through and with the people in formally organized groups.

However the basic definition needs to be expanded:

1. As manager people carry out the managerial functions of planning, organizing, staffing, leading and controlling.

2. Management applies to all types of organizations.

3. The ultimate aim of managers is the same-to create a surplus.

4. Managing is concerned with productivity, which implies effectiveness and efficiency.

Characteristics of Management:

 Management is a distinct process.

 Management is an organized activity

 Management aims at the accomplishment of predetermined objectives.

 Management is both a science and an art.

 Management is a group activity

 Management principles are universal in nature

 Management integrates human and other resources.

Management as an Art

Art is the skillful and personal application of existing knowledge to achieve desired results. It can be acquired through study, observation and experience. Since art is concerned with personal application of knowledge some kind of ingenuity and creativity is required to practice the basic principles learnt.

The basic features of an art are as follows:

(i) Existence of theoretical knowledge: Art presupposes the existence of certain theoretical knowledge. Experts in their respective areas have derived certain basic principles which are applicable to a particular form of art.

(ii) Personalized application: The use of this basic knowledge varies from individual to individual. Art, therefore, is a very personalized concept.

(iii) Based on practice and creativity: All art is practical. Art involves the creative practice of existing theoretical knowledge.

Management can be said to be an art since it satisfies the following criteria:

(i) A successful manager practices the art of management in the day-to-day job of managing an enterprise based on study, observation and experience. There is a lot of literature available in various areas of management like marketing, finance and human resources which the manager has to specialize in. There is existence of theoretical knowledge.

(ii) There are various theories of management, as propounded by many management thinkers, which prescribe certain universal principles. A manager applies these scientific methods and body of knowledge to a given situation, an issue or a problem, in his own unique manner. A good manager works through a combination of practice, creativity, imagination, initiative and innovation. A manager achieves perfection after long practice. Students of management also apply these principles differently depending on how creative they are.

(iii) A manager applies this acquired knowledge in a personalized and skillful manner in the light of the realities of a given situation. He is involved in the activities of the organization, studies critical situations and formulates his own theories for use in a given situation. This gives rise to different styles of management The best managers are committed and dedicated individuals; highly trained and educated, with personal qualities such as ambition, self motivation, creativity and imagination, a desire for development of the self and the organization they belong to. All management practices are based on the same set of principles; what distinguishes a successful manager from a less successful one is the ability to put these principles into practice.

Science is a systematized body of knowledge that explains certain general truths or the operation of general laws. The basic features of science are as follows:

(i) Systematized body of knowledge: Science is a systematic body of knowledge. Its principles are based on a cause and effect relationship,

(ii) Principles based on experimentation: Scientific principles are first developed through observation and then tested through repeated experimentation under controlled conditions.

(iii) Universal validity: Scientific principles have universal validity and application.

Based on the above features, we can say that management has some characteristics of science.

(i) Management has a systematized body of knowledge. It has its own theory and principles that have developed over a period of time, but it also draws on other disciplines such as Economics, Sociology, Psychology and Mathematics. Like all other organized activity, management has its own vocabulary of terms and concepts.

(ii) The principles of management have evolved over a period of time based on repeated experimentation and observation in different types of organizations. However, since management deals with human beings and human behavior, the outcomes of these experiments are not capable of being accurately predicted or replicated. Therefore, management can be called an inexact science. Despite these limitations, management scholars have been able to identify general principles of management. For example, scientific management principles by F.W. Taylor and Functional Management principles by Henri Fayol which you will study in the next chapter.

(iii) Since the principles of management are not as exact as the principles of science, their application and use is not universal. They have to be modified according to a given situation. However, they provide managers with certain standardized techniques that can be used in different situations. These principles are also used for training and development of managers.

The practice of management is an art. However, managers can work better if their practice is based on the principles of management. These principles constitute the science of management. Management as an art and a science are therefore not mutually exclusive, but complement each other.

A managerial principle is a broad and general guideline for decision making and behavior One may distinguish principles of management from those of pure science. Management principles are not as rigid as principles of pure science. They deal with human behavior and, thus, are to be applied creatively given the demands of the situation.

In developing an understanding of the meaning of principles of management, it is also useful to know what these are not. The principles of management should be distinguished from techniques of management. Techniques are procedures or methods, which involve a series of steps to be taken to accomplish desired goals. Principles are guidelines to take decisions or actions while practicing techniques.

By nature is meant qualities and characteristics of anything. Principles are general propositions, which are applicable when certain conditions are present. These have been developed on the basis of observation and experimentation as well as personal experiences of the managers. Depending upon how they are derived and how effective they are in explaining and predicting managerial behavior, they contribute towards the development of management both as a science and as an art. Derivation of these principles may be said to be a matter of science and their creative application may be regarded as an art.

Statement of the problem

There may have been previous researches in this subject. This work gives further explanations and analysis in method dor implemeting management theory and practice in real world organizational environment.

Objectives of the study
To understand the impact of management theories methods implementation on productivity of organizations.
To understand the relationship between the application of management theories on growth and performance of organizations

Research questions
What is the impact of management theories methods implementation on productivity of organizations.
What is the relationship between the application of management theories on growth and performance of organizations