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person's job and passed from individual to individual as one person left and
another took over. This non personal, objective form of organization was
called a bureaucracy.
Weber believed that all bureaucracies have the following characteristics: A
welldefined hierarchy, Division of labor and specialization, Rules
and regulations, Impersonal relationships between managers and
employees and Competence.
Henri Fayol, a French mining engineer, developed 14 principles of
management based on his management experiences. These principles
provide modernday managers with general guidelines on how a supervisor
should organize her department and manage her staff.
Mary Parker Follett stressed the importance of an organization
establishing common goals for its employees. She stressed the importance of
people rather than techniques a concept very much before her time.
Chester Barnard, introduced the idea of the informal
organization cliques (exclusive groups of people) that naturally form
within a company. He felt that these informal organizations provided
necessary and vital communication functions for the overall organization and
that they could help the organization accomplish its goals.
Neo-classical Theory
Neoclassical approach of management (1930-1960): The Neoclassical
approach began with the Hawthorne studies in the 1920s (Wikipedia, 2013).
It grew out of the limitations of the classical theory. Under classical approach,
attention was focused on jobs and machines. After some time workers
resisted this approach as it did not provide the social and psychological
together under the new structure. They all valued the contributions of
their coworkers.
System approach is based on the generalization that everything is interrelated and inter-dependent. A system is composed of related and dependent
element which, when in interaction, forms a unitary whole. A system is
simply an assemblage or combination of things or parts forming a complex
whole.
One of its most important characteristic is that it is composed of hierarchy of
sub-systems. That is the parts forming the major systems. For example, the
world can be considered to be a system in which various national economies
are sub-systems.
In turn, each national economy is composed of its various industries, each
industry is composed of firms; and of course, a firm can be considered a
system composed of sub-systems such as production, marketing, finance,
accounting and so on.
The basic features of systems approach are as under:
(i) A system consists of interacting elements. It is set of inter related and
interdependent parts arranged in a manner that produces a unified whole.
(ii) The various sub-systems should be studied in their inter- relationships
rather, than in isolation from each other.
(iii) An organisational system has a boundary that determines which parts
are internal and which are external.
(iv) A system does not exist in a vaccum. It receives information, material
and energy from other systems as inputs. These inputs undergo a
transformation process within the system and leave the system as output to
other systems.
(v) An organisation is a dynamic system as it is responsive to its
environment. It is vulnerable to change in its environment.
IMPORTANCE OF MANAGEMENT
1) Acquisition and utilization of resources Management performs efficient
acquisition effective development and utilization and proper coordination of
resources.
2) Environmental adaptation. Management adopts organization to changing
environmental forces.
3) Goal achievement Management achieves goals by balancing the
requirement of jobs and people.
4) Problem solving. Management solves organizational problems. It identifies
and evaluates various alternatives and choose appropriate course of action.
5) Performance control. Management measures and evaluates the actual
performance.
Ref;
Bertalanffy, Ludwig von. 1968. General System Theory: Foundations,
Development, Applications.
Robbins, S.P. and David A. Decenzo (2001) Fundamental of Management.
Delhi: Pearson