Explain evolution of different approaches of management.

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The three approaches to the evolution of management. The approaches are:

1. The Classical Approach 
2. The Behavioral Approach 
3. The Quantitative Approach.

1. The Classical Approach:

The classical school represented the first major systematic approach to management thought. It was distinguished by its emphasis on finding way to get the work of each employee done faster. It is primarily based upon the economic rationality of all employees.

This evolved that people are motivated by economic incentives and that they will rationally consider opportunities that provide for them the greatest economic gain. The classical school can be broken down into three historical philosophies of management.

B. Administrative Management Approach:

Scientific management focused primarily on the efficiency of production, but administrative management focused on formal organisation structure and the delineation of the basic process of general management. This approach is also known as functional or process approach and is based primarily on the ideas of Henry Fayol (1841-1925). Henry Fayol is recognised as the first person to systematize the administrative approach activities into six groups, all of which are closely dependent on one another.

2. The Behavioral Approach:

The behavioural approach on the human relations approach is based upon the premise of increase in production and managerial efficiency through an understanding of the people. The human relations approach of management involves with the human behaviour and focused attention on the human beings in the organisation. The growth and popularity of this approach is attributable to Elton Mayo (1880- 1949) and his Hawthorne experiments.

The Hawthorne experiments were carried out at the Hawthorne plant of the western electric company. These experiments were carried out by Elton Mayo and the staff of the Harvard Business School, main researchers were Elton Mayo, White Head, Roethlisberger and Dickson. The first of Mayo’s four studies took place at a Philadelphia textile mill.

The problem he investigated was excessive labour turnover in a department where work was particularly monotonous and fatiguing. The workers tended to sink into a dejected, disconsolate mood soon after being assigned there eventually they would lose their tempers for no apparent reason and impulsively quit. At first Mayo thought the reason for the worker’s behaviour must be physical fatigue.

So, he instituted a series of rest periods, during the workday. In course of trying to schedule these periods in the most efficient manner, management experimented with allowing the workers to do the scheduling themselves.

The effect was dramatic. Turnover fell sharly to about the same level as that for the rest of the plant, productivity shot upward and the melancholy moods disappeared.

Similar results were obtained at the Hawthorne plant of the western electric company. Mayo’s another studies made at the Bank hiring room and at an aircraft factory. Hence the Mayo’s study showed that the role played by social needs is more responsive to the social forces operating at work than the economic rewards.

3. The Quantitative Approach:

This approach involves the application of modern quantitative or mathematical techniques for solving managerial problems. This approach is also known as decision theory approach, mathematical approach, quantitative approach, operational approach etc. These quantitative tools and methodologies are designed to add in decision making relating to operations and production.

According to Lindsay, these techniques assist the management for improving their decisions by:

Increasing the number of alternatives that can be considered.

Assisting in faster decision-making based upon objective analysis of available information.

Helping management in evaluating the risks and results of different courses of action.

Helping to bring into optimum balance the many diverse elements of a modern enterprise.

The technique generally involves the following 4 steps:

1. A mathematical model is constructed with variables reflecting the important factors in the situation to be analysed.
2. The decision rules are established and some standards are set for the purpose of comparing the relative merits of possible courses of actions.
3. The empirical data is gathered which would relate parameters in the goal utility.
4. The mathematical calculations are executed so as to find a course of action that will maximize the objective function or the goal utility.

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