MANAGEMENT PROCESS SCHOOL
Henri Fayol has propagated 14 principles on management which are very popular.
1. Division of labor: He insists on a high degree of specialization in order to improve efficiency. Both managerial and technical works are amenable to specialization which leads to better work with the same efforts.
2. Authority and Responsibility: Authority can be classified into Official and Personal authority, the former needed by a manager to extract work from the subordinates and the latter emanating from the manager’s own intelligence, integrity, experience, personality, knowledge and skills.
Responsibility comes along with authority; one who has the authority should also be able to take up responsibility.
3. Discipline: Obedience, diligence, correct attitude and outward mark of respect is the essence of discipline which exists as an unwritten agreement between the management and its employees
4. Unity of Command: A subordinate must receive orders and instructions from one superior only.
5. Unity of Direction: Activities of similar nature should be grouped under one superior so that the efforts could be streamlined towards the common goal.
6. Sub-ordination of individual’s interest to the Common Goal: The personal interests of an individual (like money, recognition etc.) should not be placed before the goal of the organization, which is maximizing production.
7. Remuneration: Fair and equitable remuneration should be provided to employees to ensure better production and satisfaction.
8. Centralization: The concentration and dispersal of authority must be balanced in an organization
9. Scalar Chain: The authority chain from top to bottom should be followed at all times for the purpose of effective communication.
10. Order: Human and material resources should be co-ordinated so as to be in the required place at the required time.
11. Equity: Fairplay, justice and friendliness is what the employees expect of the organization.
12. Stability of Tenure of Personnel: Too much of Job turn over and rotation affect the work in progress and destruct the stability of the work units
13. Initiative: Subordinates must be encouraged to participate in the decision making process to show their initiative.
14. Espirit De Corps: “In union there is strength and so is team work.” Team spirit and a sense of unity and togetherness should be fostered and administered in an organization.
The Line and the Staff Principle:
According to this principle, the line authorities get things done while it recognizes the role of staff authority who are experts in providing guidance and advice. The emphasis is on,
· Hierarchial structure
· Clear decision
· Delegation of Authority and Responsibility
· Specialization of Tasks
· Co-ordination of activities and
· Utilization of staff experts
THE HUMAN RELATIONS SCHOOL
The human behaviorists believed in COLLABORATIVE management which is possible when managers are capable of harmonizing the efforts of individuals at all levels of the organization. This concept draws heavily from psychology and social psychology.
· Participative management
· Group dynamics are assigned importance
THE EMPIRICAL SCHOOL
Case study analogy is the best way to understand management is the idea behind this school of thought. The mistakes of managers are converted into rich experiences over a period of time and the findings are transferred to the practitioners in the management profession. The contributors are,
· American Management Association
· Harvard Business School
· Ernest Dale.
However, critics feel that this may not be suitable when it comes to training imparted for making decisions.
DECISION THEORY SCHOOL
All the managerial functions rest on only one thing, that is “Decision-making”, is the crux of the contribution of this school and the pioneers are
· Herbert A. Simon
· James G.March
· Richard M.Cyert
This school relies on decision models created using various mathematical tools and techniques. For example, the concept of sub-optimization and marginal decision-making.
THE SYSTEMS SCHOOL
The organization is an open system that operates within and also interacts with the environment.
· Inputs from external environment
· The transformation process
· The system of communication