Based on the sources, a variety of management styles and approaches have been developed over time, evolving from highly structured, organisation-centered models to more flexible, person-centered, and systems-based philosophies. These can be understood through the historical schools of management thought as well as specific modern management philosophies.
Evolution of Management Thought
The sources outline three main phases or schools of thought in the evolution of management approaches:
Classical Management Theory (1880s-1920s): This early school of thought was organisation-centered and viewed employees as "economic rational man". It includes:
- Scientific Management: Pioneered by Frederick W. Taylor, this approach is characterized by a concern for efficiency and systematization. Its core principles involve replacing "rules of thumb" with organized knowledge (science), promoting harmony and cooperation in group action, and working for maximum output rather than restricted output.
- Administrative Management: Associated with Henri Fayol, this approach focuses on the overall management of an organization. Fayol developed 14 principles of management, including Division of Work (specialization), Unity of Command (an employee should receive orders from only one superior), Unity of Direction (one head and one plan for a group of activities), and the Scalar Chain (the line of authority from top to bottom).
- Bureaucratic Organisation: Associated with Max Weber, this is also considered part of the classical school.
Neoclassical Theory (1920s-1950s): This school marked a shift to a person-centered and human-oriented approach, emphasizing the needs, behaviors, and attitudes of individuals, also known as the "social person" view. It includes:
- Human Relations School: This approach, associated with Elton Mayo, grew out of the famous Hawthorne Studies. These studies demonstrated the importance of the human side of an organization, concluding that psychological needs and receiving special attention (the "Hawthorne effect") have a significant impact on group performance and productivity. It recognized that an organization is a social system and that informal groups can be a positive force.
- Behavioural School: Associated with theorists like Maslow and McGregor, this school further explored human behavior in the workplace. A key concept from this school is McGregor's Theory X and Theory Y, which presents two contrasting sets of assumptions about people that lead to different management styles.
- Theory X is a pessimistic view, assuming people dislike work, want no responsibility, and need to be closely supervised and controlled through authority.
- Theory Y presents a positive view, assuming people do not inherently dislike work, seek responsibility, and will exercise self-direction and control if they are committed to the objectives. The manager's role in Theory Y is to create an environment that permits this positive development.
Modern Management Theory (1950s onwards): This phase takes a complete view of the employee and incorporates more complex ideas such as systems theory, contingency theory, organisational humanism, and management science. This modern approach is characterized by the application of scientific methods to managerial problems, a serious consideration of human elements based on psychological studies, an emphasis on economic effectiveness, and a systems approach that focuses on all functions of management equally.
Specific Modern Management Approaches
Beyond these broad schools of thought, the sources describe specific management philosophies and approaches that are prominent today:
- Total Quality Management (TQM): TQM is a philosophy and management approach centered on quality, customer satisfaction, and the participation of all employees. It is a structured system of continuous improvement aimed at enhancing the effectiveness, flexibility, and competitiveness of an organisation. Key contributors to TQM include W. Edwards Deming (14 Points for Management), Joseph M. Juran (Juran's Trilogy), Kaoru Ishikawa (Quality Control Circles), and Philip B. Crosby (Zero Defects).
- Participative Management: This approach, which is central to TQM, is defined as a philosophy and method where employees are respected and their contributions are valued and utilized. It involves employees in decision-making, problem-solving, and planning. A key technique within this approach is the Quality Circle, a small group of employees that meets regularly to solve problems and improve processes.
- Approaches for "New Millennium Organisations": The sources identify several concepts describing modern organisations, which reflect contemporary management approaches. These include viewing the organization as:
- A knowledge-based organisation where employee knowledge is the primary asset.
- A learning organisation where individuals, teams, and the organisation itself continuously learn from their environment and activities.
- An extended enterprise that includes customers, suppliers, and other stakeholders in its definition.
- A networked organisation that uses computer-based networks for widespread and rapid communication. This approach emphasizes knowledge management as a primary role of management to develop the intellectual capital of the organisation.
Management Approaches for Specific Situations
The sources also highlight that different situations, such as implementing organisational change, require specific management styles or strategies. Change management strategies can range from authoritarian to collaborative:
- Directive Strategy: The manager uses authority and power to impose change with minimal involvement from others.
- Expert Strategy: Change is treated as a problem to be solved by an outside expert, again with little involvement from those affected.
- Negotiative Strategy: Management discusses issues and bargains with those affected to reach an agreement on the change.
- Educative Strategy: This approach seeks to motivate support for change by redefining and reinterpreting people's norms and values through training and consultation.
- Participative Strategy: This strategy focuses on the full involvement of those affected by the changes, even though top management makes the final decisions.