Trends Of Management Approaches Business Essay

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Among all the major management approaches, human relation approaches is considered to be the most effective in promoting a good organisational structure and organisational relationship. Japanese management is much more focusing on the workers' need because they are using Theory Z which is under neo-human relation approach. Last but not least, this report also has to identify the attributes that could be a good leader in an organisation. A good leader has to possess 10 attributes within an organisation which are listed in this report.

Trends of Management Approaches

Classical Approach

In a recent study (Mullins, 2011), This approach is defines the organisation in terms of its purpose and formal structure and it is emerged in the early part of the last century by such writers as Taylor Fayol, Urwick, Mooney and Reiley and Brech.

The general objective in this approaches is lead to clarification of purposes and responsibilities at all levels of the organisations and to the most effective structure, but Martin (2005) is argues that it ignores the human qualities of the people employed in the organisation and does not allow for application of individuality or creativity in the exercise of work responsibility.

The attention is given to division of work, the clear definition of duties and responsibilities and maintaining specialisation and co-ordination (Mullins, 2011). It is creates for the basis of organisational work within business and it is emphasis on hierarchy of management and formal organisational relationship. In addition, the classical approach is also emphasis on:

planning of work;

the technical requirements of the organisation;

principles of management;

the assumption of rational and logical behaviour.

The approach is set of general rules to offer the solutions to solve the common problems in the organisation and management. There have two major sub groups of the classical approach are:

Scientific management - which is focused on increasing productivity and profit from the worker through technical structuring of work organisation.

Bureaucracy - It is a large scale organisation and it is often regarded as a sub-division under the classical heading and studied as a separate approach to management and the organisation work.

In brief, it is represents a top-down approach and provides general guidelines to structuring and efficiency of organisation and management and solve the common problems in the organisation.

Human Relation Approach

Human relation approach is try to integrate psychology and sociology with management, which means that management can get the work done from the workers by satisfying their social and psychological needs (kalyancity, 2011). Human beings are not interested in monetary reward, however they also need a recognition and appreciation in their job. Moreover, Cole and Kelly (2011) also stated, the human approach is concern on the social factors and behaviour of employees in the workplace. For the example, human being not like machines, the managers should try to understand the feelings and emotions of workers and motivate them to give their best for the work, hence to increase the efficiency and effective within the organisation.

Human relation approach is an informal approach and not like classical approach focus on structure and formal organisation. Furthermore, human relation approach assume that hierarchy is not the most efficient or effective way to structure an organisation, but it is a relational strategy emphasis the necessity of informal communication to make sure that the interdependent functions of an organisation are successfully coordinated (Anon, no date). The basic principles of the human relation approach are as follows (Anon, no date):


It is an idea that individual employee and functional areas such as departments should be given greater autonomy and decision-making power and emphasis on lateral communication so that coordination of efforts and resources can occur.

Participatory Decision-Making

The employees have their own knowledge and ability to make their own decisions and the communication skill to coordinate their efforts with others without a nearby supervisor, thus this will increase productivity and job satisfaction.

Concern for Developing Self-Motivating Employees

The emphasis on a system of decentralised and autonomous decision-making by members of the organisation requires those members able to set their own task-related goals and monitor their own performance in achieving them.

In recent study (Mullins, 2011), it is stated that informal organisation is influence the motivation of employees and led to ideas on increasing production by humanising the work organisation. In addition, it also discuss on the neo-human relations which is human relation approach evolved. Neo-human relation approaches are major focus on personal adjustment of individual within the work of organisation. One of the examples for neo-human relations approach is Maslow's hierarchy needs, which is the hierarchy ranges through five levels from at the lowest level, physiological needs, through safety needs, love needs and esteem needs, to the need for self-actualisation at the highest level.

Figure : Maslow's hierarchy needs


Neo-human relation is attention being given to organisation structure, group dynamics, job satisfaction, communication, participation, leadership styles and motivation. Furthermore, it has also led to greater attention to the importance of interpersonal interactions.

The System Approach

The system approach is organisation as "system" with a number of interrelated sub-systems to working together with relationships between the objects and their attributes related to each other and to the environment, hence to achieve the objective of organisation (Mullins, 2011). In addition, Thenmozhi (no date) is also explains this approach to management views the organisations as a unified, purposeful system composed of integral parts.

Figure : System Approach


Furthermore, the position and function of each sub-system can be analysed and understood only in relation to other sub-systems, therefore each sub-system derives its strength by its association and interaction with other sub-systems. This approach gives managers a way of looking at the organisation as a whole and as a part of the larger external environment (Mullins, 2011). In this approach, the activity of any segment of an organisation can affects in varying degree of other parts. This approach is not views as organisation of separate parts and it is tried to reconcile the two approaches which are classical approach and human relation approach to work in an organisation. This approach is focused on:

Total work organisation;

The interrelationships of the structure and behaviour;

Range of variables in the organisation.

The system theory has two systems which are open and closed system, open system which means actively interacts with its broader external environment. By interacting with other systems, it tries to establish exchange relationships. It is emphasises the importance of multiple channels of interaction and involves the study in term of the relationship between technical and social variables within the system, therefore this approach is necessary good information and channels of communication in order to assist the manager have an effective decision making in the organisation.

Besides, the closed system is defined as not or little interacts with other system or its environment and they assume that it does not intervene in or cause problems for the functioning of an organization (Draft, 2001). Therefore, the closed-system models do not depend on the external environment for explanations or solutions to managerial issues.

Contingency Approach

Contingency theory is a behavioural theory that is not seek to suggest the best way to organise a corporation, to lead a company or to make decisions, but should provide insights into the situational and contextual factors which influence management decisions (Mullins, 2011). Moreover, this approach can be seen as an extension of system approach that implies organisational variables and their success or performances are dependent upon environmental influences.

The Best Approach - Human Relation Approach

In this report is choosing the human relation as the best approach within those difference management approaches. It is because that human relation approach is stated that the human being not only interested the monetary reward, they also need some certain job satisfaction such as recognition and appreciation. In essence of human relations approach, worker morale is a primary factor which is affect productivity of organisation, thus manager has to modify working environment to increase morale and develop skilful and capable worker within the organisation (Anon, no date). Furthermore, human relation approach is not like classical approach to focus formal and structure organisation, it is an informal organisation and focus social factor and behaviour of employees, thus to improve efficiency and effective and increasing the productivity within the organisation.

This approach is emphasis on individual autonomy and participatory decision-making within an organisation, instead of simplifying and systematising work like classical approach. Human relations approach also argues that jobs must sufficiently challenge and opportunities for the employee, thus the employees to take on more responsibilities and to be able to handle complex task.

Neo human relations is the human relation approach evolved, which is greater extent the improvement over work design and management and it provided a holistic view of the was to improve the production process if the humanistic goal is achieved in the industrial structures (Thenmozhi, 2010).

Japan's management is a good example for this approach, because Japan is often used as an example of William Ouchi's Theory Z. Theory Z is focused on the workers' needs. In Theory Z, people want to contribute and be part of the process and they are representing unlimited potential. The characteristic of theory Z management includes the following (Workman, 2008):

The leaders and subordinates are motivated by a powerful sense of commitment to be part of a greater whole within organisation.

People are self-satisfied when they contribute to organisational success through teamwork.

Employees seek out responsibility and strive for opportunities to advance in an organisation.

Their organisation's long-term commitment to providing job security, workers develop strong bonds of loyalty towards their employer.

According to Workman (2008) discussed, Japanese business traditionally makes decisions in groups and responsibility for those decisions is shared collectively. Furthermore, Japanese management is very focused on the relationships with their employees than formal and structure organisation to ensure their objective could be achieved, therefore their performance control mechanisms are informal. Japanese organisation shows a continual interaction and exchange of information and influence between leader and subordinates because of theory Z is participative. Thus, Japanese organisational culture is a multi-directional flow of communication within organisation unlike theory X where is a one way and theory Y where there is mutual, two-way information. In Japanese construction industry, there has weekly meeting to do some excise, hence to motivate and their workers and relaxation from stress.

Therefore the workers have high degree of responsibility for controlling the work process, particularly for specifying and modifying methods and procedures at their work stations, self-inspection production workers were responsible to inspect what they produce, rewards in the Japanese approach are given bonuses, regular pay, promotions which of essential motivational value. It is due to the neo human relations approach implementation in the managing and organization of production hence resulted in the motivated workforce.

Attribute of Leader

In recent study (Barrett, 1998), the leader is defines as a prime responsibility of any individual in the organisation and the person who initiates his or her awareness of what is happening in the situation. Therefore, a good leader should have a certain characteristics to possess the qualities. The following is my list of the characteristics of a good leader:


A good leader has to take responsible for his decision that have made or participated in whether the outcomes are successful. Effective leader is not only taking responsible on his decision, but also for his own actions, the action of his organisation and the actions of his people as pertain to the organisation. Furthermore, a leader has to initiative to set a goal for his organisation.


Effective leader has to take time to fully understand all the options before making or promoting a decision that is logically consistent with the business priorities and core values of the organisation. In addition, leader has to make good and timely decisions to ensure that they are executed.


Leader's ability must be impressive, continually demonstrate competence, critical thinking, and intellectual capability and delegated with conviction. Leadership is passionate about teaching and guidance, rather than training their followers. The most important of capable leader is that to successful guidance to help solve the problem with independence of thought, rather than become a solutions provider.


A leader must develop a mental image of possible and desirable future state of the organisation and concern on worthwhile and attainable achievements. The leaders who think about the future so they able to propel, guide and adapt their organisation. Besides, the leaders also able to know where they want to go and how to motivate people to believe in same vision they have.


A humble leader is willing to take a risk and trusting on others even at the chance they may be disappointed with the outcome. A humble leader is quick to admit his mistake without casting blame or making excuses. In addition, humble leaders do not take all they key assignment for them but give out prime responsibility and authority to others.


The leader empowers other by demonstrating that they trust and appreciate others to generates confidence in the individual and gives them a sense of recognition thus to motivating them.

Good in Communication

Good leaders must need skilled communication to ensure the messages are easily received to avoid many of issues involved with leadership to become complex and may not be easily grasped.


Leader must think differently and to see things that others have not seen, thus to constrains solutions and lead followers in new directions.


Good leaders are able to suspend judgment and listening to others' ideas. The leader who is openness is able to accept the new ideas from others if the ideas are workable. Furthermore, it can build mutual respect and trust between leaders and followers, and keep others to supply more ideas to the leaders.


The ability is able to reflect on oneself and clearly see the reality of a situation leading to excellent personal learning and growth and the ability to help others to the same.


In this report, it is clearly explains the four major trend of management approaches. Classical approaches is much more focus on formal and structure within organisation. Human relation approaches is concern on social factor and psychological needs of workers, because workers morale is the primary factor to increase the productivity in the organisation. However, the system approach is integrated with sub-system like human body, to working together to achieve the objective of the organisation. Contingency approach is can be seen as an extension of system approach that implies organisational variables and their success or performances are dependent upon environmental influences.

The most effective approach is human relation approach because it is an informal organisation and focus social factor and behaviour of employees, thus to improve efficiency and effective and increasing the productivity within the organisation. Japanese's management is a one of good example to show that the human relation approach is the most effective. Japanese's management is apply Theory Z to their organisation because they are believe that satisfy the workers' need could be increase the productivity of organisation.

The good leaders should possess 10 attributes which are responsible, decisive, openness, humble, capable, self-awareness, creativity, vision, good in communication and trust.