Approaches to Management

Approaches to Management

1.      Empirical or Case Approach

This approach doesn’t focus on one way of management. In this, the experience are studied of the various cases and observations are made on them. This approach doesn’t give one full proof solution to a kind of problem and solutions are based on the past experiences of various organizations. It helps in having a practical view of situations though and helps managers to have a diverse approach to problems.

2.      Managerial Roles Approach

This approach was given by Henry Mintzberg and he emphasizes on managerial functions based on the functions that managers perform in an organization. He groups managerial functions in Interpersonal, Informational and Decisional role. This approach is one that covers almost all the functions of managers in an organization and has proved to be applicable in all organizations like BPCL and Google.

3.      Contingency or Situational Approach

This approach focusses on the fact that managerial practise doesn’t come with a book of rules and depends on circumstances as and when they arrive. It is slightly different from the case approach because it recognizes the influence of given solutions on organizational behaviour patterns and then observes the managerial patterns whereas in the latter, specific case of other companies are studied.

4.      Mathematical of Management Science Approach

This approach looks at management from a purely logical perspective and thus the reference to mathematics here. There are well defined management processes, concepts, symbols and models. The applicability is limited though as this approach is not flexible and there are a plethora of diverse situations in an organization.

5.      Decision Theory

This theory looks at management from the vista of decision-making in an organization. Here, the boundaries of study are blurred and this makes the theory too narrow (focussing only on decision making process) and at the same time too wide (because decision making is a very broad concept in its own).

6.      Reengineering Approach

This approach focusses on making radical changes in the managers’ stance towards managerial situations. It encourages rethinking of the very foundations of management fundamentals, process analysis all dove-tailing to dramatic results. But it doesn’t take into consideration the possible effects of external environment.

7.      Systems Approach

This approach is an extension of the previous mentioned approach in that it works on the limitations and focusses on that primarily. It deals with management adapting to the external environment. This is a good approach to management as it covers both the internal as well as external factors. Further, it throws light on the technical, social, group behaviour and interpersonal system of the organization affecting the performance of the company.

8.      Scientific Management

This theory was given by Frederick W. Taylor and the underlying principle here is that there is one best way to do things. It is concerned with raising productivity through greater efficiency in production and increased pay for workers. This approach claims that its principles lead to increased group harmony, achieving maximum output and developing workers. But this approach makes managers deluded that the human capital in an organization is similar to machines.

9.      Administrative Approach

This approach was given by Henry Fayol around 100 years ago and this was the first theory to give management an outline. He gave 14 principles of management like Division of work, Scalar Chain and Order and 6 functions of management like Planning, Coordination, and Controlling etc. This approach has a wide applicability as it can be used in any organization and is still functional today. It isn’t very specific though but management in itself is a very diverse field of work. By far, this approach is the most right one conceptually.

10.  Behavioural Sciences Approach

This approach applies psychology to industry and management. Psychology of the customers and the personnel is focussed on during the decision making process regarding advertising and marketing. This also includes the theory of bureaucracy which emphasizes on the need of a crisp hierarchy in a firm so that every individual is rightfully aware of his duties which lead to increased efficiency and minimization of corruption. Here, the Hawthorne Study is also included which talks about the influence of social attitudes and relationships of work group on the performance. This study has proved to be functional practically. For example, the Google campus is a haven for software engineers and it motivates them to be innovative which is evident in the performance of the company as a whole.

11.  Qualitative Approach

The qualitative approach requires experiential knowledge of the various factors involved in a decision. For example, to use the qualitative approach to solve a dispute over resources between two departments of an organization, the manager must understand the complex interplay of variables in that organization, such as the interpersonal connections among supervisors in each department and the overall availability of resources for which the two departments are competing. In simpler terms, the manager must have an intuitive feel for how decisions will play out given the nature of that organization, which can only come from direct, hands-on experience.

12.  Quantitative Approach

Managers lacking direct experience can opt for a quantitative approach. The first step is to translate the problem into mathematical language. Accordingly, the quantitative approach works best for objectively measurable problems. For example, deciding how to distribute resources among many departments might begin with determining which departments are the most profitable and therefore most likely to generate more profits per unit of fresh resources. Based on this reasoning, the manager uses accounting data to construct a mathematical model, or formula, for resource apportionment.

13.  Operational Approach

This approach was devised to answer the problem with almost every management thought: combining science with practical application and tries to borrow a leaf from every approach. It draws together concepts, principles, techniques and knowledge from its peers. What sets it apart from other approaches is that it draws a line between managerial and non-managerial knowledge. It classifies managerial system base around its functions of planning, organizing, staffing, leading, and controlling.