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This report is to outline the major trends in management approaches where there different of approach such as classical approach, human relation approach, system approach and contingency approach are describe in Chapter 2. At the same time, those management approaches being explain and evaluated in-depth. Other than that, in Chapter 3 which stated the human relation approach is the most effective approach and to promoting a good organisation structure and organisational relationships in this report. Also, there is deeper discussion, explanation, evaluation and analysis of the management approaches. In Chapter 4, which to identifying those attributes he believe to be a good leader where also many attributes are stated and being identified and discussed in depth.
2.0 Management Approaches
Management as a formal study since 1700s as part of the Industrial Revolution which in comparison to a practice. For the classical approach to management are separate by scientific management is emphasize on increase productivities of individual worker and the administrative management is use the management principles in managing and structuring an organisation. There also some several management approaches such as human relation, system and contingency approaches. By the different approaches which has it own theory and the will resulting different consequence to an organisation.
2.1 Classical Approach
Classical approach is the organisation to manage in terms of its purpose and formal structure and attempts to provide some common principals which applicable to all organisation. For the aims is to achieving fairness among workers and between managers and workers and also to achieve to high productivity at predictable in making behaviours. In early advocates of the classical management perspective viewed the organisations and jobs from an essentially mechanistic point of view. Also, the classical approach management is emphasis on assumption of rational and logical behaviour into the work planning, principles management in organisation and the technical requirement of the organisation. In pervious, some classical writers such as Taylor, Fayol, Urwick, Mooney and Reiley, and Brech were laying the foundation for a comprehensive theory of management.
The classical management theory was asserted that the key to worker efficiency and organisational productivity was efficient job design, use of appropriate reward, and effective managerial functioning which formulated with the engineering background. That was form as formal and impersonal approach to management and was resisted by many workers because it did not take consider of the human factor in an organisation. By clearly identify the general objective would lead to clarification of the purpose and responsibilities at all level which can created an effective structure in an organisation. In order to emphasis on the hierarchy of management and formal organisational relationships, it must given attention to the division of work, the clear deï¬nition of duties and responsibilities, and maintaining specialisation and co-ordination. On the other hand, the main advantage of the classical management theory was to devise a methodology for how management should operate. However to increase productivity and efficiency, often came at the expense of creativity and human relations.
By referring to Figure 1, the classical management theory is divided into three branches, the scientific management, administrative principles and bureaucratic organisation. For the scientific management which to achieve goals of productivity and efficiency, it almost use the mechanical methods towards labour and organisation by implement the basic techniques in creating standardized methods for a task and dividing work between employees equally. For the administrative theory, it focuses on how the organisation should be structured and manages which to achieve productivity and the bureaucratic management theory which is mainly focused on dividing organizations into hierarchies, establishing strong lines of authority and control.
Figure 1. Major branches in the classical approach to management.
2.2 Human Relations Approach
At year 2008, the Patrick stated that "The focus of the Classical Approach had been upon the work, but the Behavioural Approach stresses that effective management will come from an understanding of the worker." In other word means, by having well understand what the worker needs and to get them satisfy which can effectively manage an organisation. Human beings are not just interested in financial satisfaction. They are also need recognition and appreciation which to having sense of accomplishment as impetus where toward in their tasks.
Between year 1927 and 1932, an experiments called the Hawthorne Experiments are carries out by the Hawthorne Works of the Western Electric Company which conducted an intensive and systematic analysis of the human behaviour in the organisation. Through the experiments, the suggestion is to having good management in human relations motivating people in an organisation which can develop team spirit and effectively fulfils their needs to achieve the organisation goal. There experiments unearthed those factors such as social factors in output, group influence, conflicts, leadership, supervision and communication which affecting the people at work.
The term of the human relations refers to the manner in which managers interact with subordinates. To develop good human relations, followers of this approach believed, managers must know why their subordinates behave as they do and what psychological and social factors that influence them. Also, some researcher which stated that the core of human relations approach which need to concerning in an organisation as following:
Focus on people, rather than upon machines or economics.
People exist in an organisational environment rather than an organised social context.
A key activity in human relation is motivating people.
Motivation should be directed towards team work which requires both the co-ordination and cooperation of individuals involved.
Human relations, through team work, seeks to fulfil both individual and organizational objectives simultaneously
Both individuals and organizations share desire for efficiency, that is, they try to achieve maximum results with minimum inputs
Beside, some researcher such as Maslow, Herzberg, McGregor, etc which come out the theory to helped advance the human relations movement. For the Maslow's hierarchy of needs is a theory in psychology that contends each of us is motivated by needs. Also, Maslow put forward a theoretical framework of individual personality development and motivation based on a hierarchy of human needs. However, the Herzberg's two factor theory, also known as the Motivation-Hygiene theory which isolated two different sets of factors which affecting satisfaction and motivation at work. For the McGregor theory is to put forward two suppositions called Theory X and Theory Y which are based on popular assumptions about work and people.
2.3 System Approach
"By a systems approach to management is meant the study of a firm in its totally so that the men and material resources of the firm can be organised to realise the firm's overall objectives as efficiently as possible." (Jenkins, 1968) The systems approach to management also is a concept which views a company as an interconnected purposive system that consists of several interrelated sub-systems. It is a management approach which enables the leadership to see the company as a unified part or a major section of the larger outside corporate. In other hand is this approach is not viewed as an organisation in separate parts but as a whole organisation. Even in smaller activity also may affect the whole organisation.
For the systems approach to management which has the following key concepts :-
Closed/ Open Systems: A closed system does not interact with the environment. An open system which is depends on the outside environment for survival.
Sub-system: For the sub-system is made up of many parts from the full system. A system may be a sub-system of a larger system. For e.g. The Team A is a sub-system of Human resources department. The Human resources department is a sub-system of a construction company.
Synergy: The synergy will generate when different departments co-operate and interact in an organization, and they become more productive.
Defined boundaries: Each system has a boundary that separates it from its environment and clearly split in each system. In case of a closed system, the system boundary is rigid. However, in an open system, the boundary is flexible. A business organisation has boundaries with many external systems like creditors, suppliers, customers, government agencies, etc. The system is inside the boundary, the environment is outside the boundary.
Feedback mechanism: A system can adjust itself to the changing environment through the feedback mechanism and the feedback helps to correct its mistakes which find out by itself.
Multidisciplinary: Management system uses information from many fields such as psychology, sociology, ecology, economics, mathematics, statistics, operations research, systems analysis, etc.
Consideration of whole system: No part of the system can be fully studied and understood without understanding all its parts.
Input output system: A business organisation is an input-output system. Inputs consist of human, physical and financial resources obtained from the environment. These resources are converted into outputs of products and services.
On the other hand, J. Forrester stated an organization should be seen as a system with 4 elements: Inputs, Transformation, Outputs and Environment which shown in Figure 2.For the strangeness of the systems approach to management is the manager has a good view of the whole organisation and gives importance to interdependence of the different parts of an organisation and its environment. Other than that, thinking warns managers against adopting piecemeal approach to the problem-solving. Also, this system wills foretastes consequences and plans actions.
elements of an organization: Inputs, Transformation, Outputs and Environment
Figure 2: System approach to management
2.4 Contingency Approach
Contingency approach is usually be called Situational Approach, where there is depends on the situation and condition of the organization and workers to create specific, integrated solutions to solve workplace issues and meet the project goals of clients. It is without a set of management principles by which can applicable to all organisations. So that, it is totally different with the classical approach management which is indicate in previous. In other word is to delegate a task which based on the relevant skills, whereby to developing situational strategies to meet deadlines, and integrating these efforts to provide a fully realized plan of action.
Some writer such as Andrew J. DuBrin said that "The contingency approach management emphasizes that there is no single best way to manage people or work in every situation." Hence, there are no one best approach management which able applicable to different condition and all it depend on the situation. In fact, the managerial action is contingent upon external environment and the contingency approach advocates that managerial actions and organisational design must be appropriate to the given situation and a particular action is valid only under certain conditions. Also, the contingency theory is to analyse and understand the interrelationships of the issue by also the external and internal environment of an organisation, and taking appropriate managerial actions to deal with them. Beside, the strength of the contingency approach management is to encourage examining the situational before take any action.
Also, some researcher stated out the features of contingency approach which shown below:
Management is externally situational: the techniques and the control system are depends on the condition and situation.
Management is entirely situational.
There is no best way of doing anything.
understand the circumstances
It is a kind of "if" "then" approach.
It is a practically suited.
Management policies and procedures should respond to environment.
It dispels the universal validity of principles.
From the features of contingency approach which stated that, the way of the management of an organization which flexible in term of created a solution or decision making and not stiff in managing the organization or the workers.
3.0 Approach that Considered Being Most Effective
In management area, which are having different management approach which let leader to choose in applying and implementing into an organisation and to achieve the organisation goals. In fact, the human relations management approach which is the most effective in promoting a good structure and relationships in an organisation. It is because of the human relation approach is recognised the importance of the informal organisation by led to ideas on increasing production by humanising the work organisation. By the Sapru (2008) stated the "Mayo is focussed attention on the behaviour of workers and their production capacities, keeping in view of all physiological, physical, economic and psychological aspects."
From the understanding of human relation approach management in an organisation, the human are not simply for the monetary reward by also get satisfaction from complexity needs. By going through the Hawthorne experiments and the theory, by satisfy the needs of human, which can motivate them and they will automatically put more effort in their work and achieve the organisation goals. Also, when the worker are getting motivate, they get fully responsible in their own position and to be having great solidarity in an organisation. By directly to form out a good organisation structure and having best performance into their job.
Furthermore, from the result of the Hawthorne experiment which show the positive result by implement in the way of understand the worker needs and to let them satisfy in an organisation. From the illumination experiment which is to determine the relationship between illumination and worker efficiency but found unexpected results. Other than that, by giving rest period, monotonous working conditions and wage incentive which resulting the worker improve the performance and efficiency of work which by through the relay assembly test room experiment. Also, from the result of bank writing observation room, the company must Employees had physical as well as social needs, and the company developed a program of human relations including employee counselling and improved supervision with an emphasis on the individual workers which are getting understanding between each other by directly created the good frame of organisation interrelationship.
By trough the understanding the needs from worker and get them satisfy, which adopted more psychological orientation of the worker. For example of the Maslow which create the five levels of hierarchy needs for human and clear identify the needs of each level of the hierarchy. The Figure 3 is show that the Maslow's hierarchy needs. http://www.biz-development.com/HumanResources/p3.18.M1.gif
Figure 3: Maslow's Hierarchy Needs
The Maslow's hierarchy needs which indicate the physiological needs are the basic human need which is sustaining human life itself, such as food, water, warmth, shelter, and sleep. Maslow took the position that until these are satisfied which to maintain the life, other needs will not motivate people. Second is the security of safety needs to human which is free of physical danger of the fear of losing a job, property, food, or shelter. Thirdly, which is the affiliation or acceptance needs. Which all people are social beings and they need to belong and accepted by others. Fourth, the esteem needs from the human with satisfy who can produce such satisfaction as power, status and self-confidence. Last and the highest needs is need for self-actualization.
By through the Maslow's Hierarchy theory and by appropriate let the worker satisfy with these needs, the worker will be motivated and directly increasing the performance work and more efficient to in an organisation. On the other hand, by all worker are getting in motive which can come out the good performance and create the good organisation structure by all the worker take fully responsible in their own position to achieve the organisation goals.
Another theory which is Frederick Herzberg Theory which also of the human motivation and the theory is based information collected by interviewing two hundred engineers and accountants. For this theory are depends on the hygiene factors and the motivating factors. For the Hygiene factors by prevent job dissatisfaction which to create a favourable environment for motivation and the factors are:
Company's Policies and Administration
Interpersonal Relations with superiors and other subordinates
By the Motivating factors is act as forces of job satisfaction and to resulting the people are work efficiently and having a good working performance by satisfy their needs and the motivating factors are:
Recognition for Accomplishment
Opportunity for Growth and Development
Creative and Challenging Work
According to Frederick Herzberg, the hygiene factors, when the people get satisfied, they are not motivated, but if they tend to dissatisfaction may cause de-motivation of the people. In the other hand, the Motivating factor are much different which is people getting motivate when they fell satisfy, but also may to motivate when the people did not getting satisfy. In brief, hygiene factors is by getting them to work are depending an individual's willingness while motivating factors affect his ability and efficiency to work.
4.0 Attributes to be A Good Leader
Leading is one of important function in a group or in an organisation. According to Koontz and O'Donnell, "Leadership is the ability of a manager to induce subordinates (followers) to work with confidence and zeal." A leader which is involves directing, influencing and motivating the employees to perform essential tasks and achieve the goal in an organisation. Also, leader is to play an important role in an organisation which influence the behaviour of his subordinate and get the work done.
A leader which can perform his duties in an efficient manner the basic is required sound health and physical capacity. Below are stated as a good leader, what kind of attributes should require:
In an organisation, which is forming by group of people and together to make work done and achieve the organisation goal. So that, solidarity is the first attribute a leader should take in order which his lead of the whole group. This is because of every person in a group are play at their own role which may affecting each other which influence the outcome of the group, and the leader must bring the group in solidarity which achieve the goal. So those, by having solidarity in a group which can get well cooperate with each other to get the better outcome.
4.2 Good communication skill
A leader which requires leading the whole group to make the work done, the good communication skill must the leader have which need to clearly delegate tasks to them. By having good communication skill which able communicates well with the subordinate and clearly deliver the instruction or message to them.
As a successful leader which is not always use the power to command and enforce obedience by virtue of the authority of the position. Leader must always be modesty and keep monitor the environment of the group by do their work with the idea of participating in a collective project. For the true leadership is not associated with positions of authority but is gain obedience from the subordinates.
Leader must know well themselves by know what their virtues and limits are and don not set unrealistic goals. By every instruction delegate must be clearly specify and be confidence, so that create a reliability image to subordinate and make them confidence by follow the instruction. Self-confidence gives the force to be persistent to attain the task and vision. Therefore, self-confidence is vital to success.
Leaders are proactive, not reactive. When found things go wrong, must voice out and take appropriate action. By notice the subordinate are getting wrong in their task, leader must initiative to guide them into the right way and giving some suggestion to them. Not wait until the thing serious which getting impact to the final outcome and give blaming.
As a leader must having vision and purpose which always communicate that vision Also willing to allow others to create their own vision under the overall company vision. A leader must give the opportunity to other and also willing to encourage others to greatness, which might bring the benefit to the company. Hence, which also can enlarge the view of company.
As a leader is never stop learning by improve them into another high level. By getting more knowledge which can much more helping in decision making. Also, by create the good image to the subordinate and may also indirectly motivate them in willing to learn more by getting better feedback to the company.
Also, leader is take responsibility in every decision made without blaming other or finds other excuse when things is go wrong. They engage in excellent behaviour and make outstanding self-sacrifices in the interest of their group, if necessary. Also, to learning from the previous mistake and does not repeat at the next time.
4.9 People builder
A leader which willing to develop people by invests time and resources to teach, coach, train their team. Also, leader should able in sharing their experience and wisdom to help the subordinate become stronger leaders. So that, to improve the ability of his team in order to increase the performance and efficiency.
4.10 Willing to listen and be challenged
A leader that cares to listen to other opinion and other view which does not mind having ideas challenged. Hence, this will be help in decision making and came out the best solution, at the same time to giving subordinate the opportunity to express their own view and idea by right to let them involve and improve the interrelationship with each other.
4.11 Risk Taker
A leader that is not afraid to try new strategies, adapt to ever changing markets by gain more the experience which may help in future. Also, by implement the ideas of workers in the trenches to let them confidently take risks that align with their overall vision.
In conclusion, wide variety of management approaches such as classical approaches, human relation approaches, system approaches and contingency approach have been discussed and analysed. From that, which clearly understand the different between the various of management approaches. Consequently, after analysis and discuss by know the one of the management approaches which is human relation approaches is the most effective which is through the motivate the worker which can promoting a good organisation structure and organization relationship. Lastly, attributes of a good leader have been identified such as self-confidence, good in communication skill, responsibility, willing listen to others, etc. Anyway, as a good leader, those attribute are indispensable which lead their subordinates to achieve the organization goal.