Schools of Management

Thoughts
Following are main six classes of schools of management thought
specified by Frank P. Carraecioto: 1. Process School or Traditional
School 2. Empirical School 3. Human Behaviour School 4. Social
System School 5. Decision Theory School 6. Mathematical or
Quantitative Management School.

1. Process School or Traditional School:

This approach is also known as operational approach, universal
approach or classical school. According to this school of
management thought, Management can best be studied in terms of
the process that it follows.

The management process consists, planning, organising, directing

and controlling in all the situations. Therefore, the subscribers of
this school are of the view that management principles are
universally applicable, i.e. they can be equally well applied to the
government, business or to any other type of organisation.

Main contributors to this school of thought are:

Henri Fayol, Lyndall Urwick, Harold Kootz, etc.

Main Features:
1. Study of Management should be done by focusing the process (i.e.
functions) it follows.

2. Managers have more or less some functions irrespective of type of

organisation.

3. Main functions like planning, organising, directing and

controlling are the core of the management.
2. Empirical School:
This school is also termed as management by customs school. This
school believes that the management can learn about applying the
most effective techniques by the experience of successful manager
or the mistakes of unsuccessful manager. This school recommends
case studies for drawing general conclusion and forming the
principles.

This school of thought has, however, not found general approval as

not only the approach of different research projects in management
is different but also the circumstances of different industries in
different countries are different. This does not find a uniform
application and their conclusion cannot be accepted as universally.

The main contributors of this school of thought are the Harvard

Business School, and Earnest Dale American Manager Association.

Main Features:
(i) Management is the study of experience.

(ii) Success and the failure of management in the process of

decision making can provide guidance in future for similar
situations.

(iii) Practical experience must be a base for future researches.

3. Human Behaviour School:

This school is also known as Human Relations School. This school
of thought suggests the application of existing and newly developed
theories, methods and techniques of the relevant social science to
the study of human relations from personality dynamics or cultural
heritage.

This school puts more attention to the motivation of the individual

and on human psychology and sociology. Whenever this school has
suggested something, in general its application is not universally
adopted as the nature of application is not universally adopted as
the nature of circumstances of the workers in different countries as
well as different industries is not the same.

The management scholars criticises generally empirical school as

well as Human Behaviour School due to above facts.

This school emphasises that productivity depends heavily upon the

satisfaction of the employees in work situations. Subscribers of this
school of thought are of the view that the effectiveness of any
organisation depends upon the quality of relationship among the
people working in the organisation.

The main subscribers to this school are Elton Mayo, Roethlisberger,

and Robert Owen.

Main Features:
(i) Since work is being got done through and with people, manager
must have basic understanding of human behaviour and
psychology.

(ii) Personnel relations amongst people must be studied by the

management.

(iii) Higher production can be achieved only through good human

relations.

4. Social System School:

This school is also known as social behaviour school. This school of
thought is bounded by C. Bernard who went into the co-operative,
biological, physical and social aspect of the individual environment.
This theory emphasises of formal organisation concept which
consists of a cooperative system in which individuals not only
communicate with each other but also willing to contribute action to
achieve common purpose.
In socialistic societies, this theory is popular, and management is
prepared to perform highly effective functions. The meaning of
socialistic societies is where workers are motivated by a
determination to show results are hired with the zeal to achieve
common purpose.

The main thinkers and subscribers to this school of

thought are Chester Barnard, Max Webber etc.:
Main Features:
(i) An organisation is a special system.

(ii) Co-operation of the persons working is the case of good

management.

(iii) Management must establish harmony between the goals of the

organisation and the needs, aims and aspiration of the people in the
organisation.

5. Decision Theory School:

This is also known as Decision school or Decision management
school. This school of thought emphasises on rational approach to
decision making by the selection of best course of action from
various possible alternatives.

Further, this theory can be expanded to examine the

following to achieve the basis of decision:
(a) Nature of organisation.

(b) Organisation structure,

(c) Psychological and social reactions of individuals or a group.

Main Features:
(i) Decision making field is the essence of management theory field.

(ii) Managers are essentially decision makers and problem solvers.

(iii) Whatever a manager does, is the outcome of the decision taken
by him. This decision is made out of a set of alternatives available to
him.

The main contributors belonging to this school are Chester Bernard,

Herbert Simon, Forrestor etc.

6. Mathematical or Quantitative Management School:

Harold Koov is the originator of this thought who says
Mathematicians have provided the people in management the
means of viewing many problems more clearly, the need to estab-
lishing goals and measures of effectiveness.

They have helped in getting people to view the management areas

as a logical system of relationships and they have caused people in
management to review and occasionally reorganise information
system so that mathematics can be given sensible quantitative
meaning. Quantitative analysis includes linear programming, sta-
tistical methods and other mathematical models.

The importance of this school of thought has generally expanded

because of involvement of Operation Research technique in
business with the help of computer technology.

Main contributors and pioneers belonging to this school are

Frederick W. Taylor, Gilbreth, Gantt, New Mann, Ackoff and Hicks.