2. A social entity that provides the necessary
structures to achieve specific aims.
3. A commercial enterprise or establishment that trades in
goods and services
4. 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.
5. 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)
6. 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)
7. Key Words
◦ Process, Administration, Economic, Different functions
9. ◦ Initiatives are stifled
◦ Stereotyped behavior as a result of impersonal
relationships
◦ More paper work
◦ Interdependency
Ford Model T
10. 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
11. 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?
12. 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
13. 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
14. Few others who have done research building on
the contingency approach
Mintzberg
Porter
Drucker
Peters and Waterman
15. 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.
