A social entity that provides the necessary structures to achieve specific aims.

A commercial enterprise or establishment that trades in goods and services

An entity that is both commercial and social, which provides the necessary structures to achieve the central objectives of trade in goods and services.

We are talking about entities which have an objective of making profits but have a variety of other stake holders.

Therefore management is not an isolated process. No assumptions. No citrus paribus.

Management is deciding what should be done and getting other people to do it. (Stewart)

It is an economic organ, indeed the specifically economic organ of an industrial society. Every act every decision, every deliberation of management has its first dimension an economic dimension (Drucker)

Management is a process which exists to get results by making the best use of the human, financial and material resources available to the organisation and to the manager (Armstrong)

Management is about administration, planning, organizing, commanding, coordinating and controlling (Fayol)

Key Words◦ Process, Administration, Economic, Different

functions

Scientific Management (Taylor) Bureaucracy (Weber) Fayol’s principles of management

◦ Initiatives are stifled◦ Stereotyped behavior as a result of impersonal

relationships◦ More paper work ◦ Interdependency

Ford Model T

Classical approach looked at the human as a machine. This approach attempts to incorporate the human being.

◦ Is it Classical Approach + Human?

Hawthorne Experiment (Main influence) Sub Influences – Maslows Hierarchy of

needs

Criticisms on methodology Failure to take into account the

environmental factors Not scientific enough and takes a too

narrow view (Not taking into account the gender)

Are these criticisms on the approach or the experiment?

It combines few key components of both classical and human relations

Organisations interact with the outside world and hence are open systems

Decisions have to be made after looking at the influence external environment has on the organisation

Doesn’t look at one best solution like the scientific management approach

Doesn’t believe in one successful prescription like Fayol

Doesn’t believe in stability like in bureaucracy

It believes that different practices has to be adopted in different scenarios

Few others who have done research building on the contingency approach

Mintzberg Porter Drucker Peters and Waterman

What are the key management issues which respect to what we learned?

Modern organizations have failed to provide individuals with adequate room for self actualization and creativity

Conflicts are not always undesirable. Not having adequate conflicts can be unhealthy

A structure or style cannot accommodate different levels of ambitions and goals

Modern management is too democratic. Management must return to a more authoritarian attitude.