ACCA - F1 ACCOUNTANT IN BUSINESS
Management practice sets fundamentals for establishing
cultural identity of an organisation. Manager's role is to help preserve (the
good practice) and promote (induction of new techniques) existing cultural
settings to generate optimal output for the organisation. For this, we see
three different approaches adopted by organisation, which describes the role of
manager.
The industrial revolution 1913
A century ago, for the first time Ford motors introduced
assembly line. It revolutionized the automotive industry and in no time, the
style spread throughout other industry. In increased productivity for same labour
input decreased unit price and increased
benefit to employees. (While the Model T created a seismic shift in mobility,
it was the automotive assembly line that allowed for
that shift. The Ford assembly line was developed 100 years ago in 1913, to
help mass produce the T.)
Classical school :
In 1911 Frederick W. Taylor introduced scientific
management technique which focus on the task to increase productivity from
individual employees. Money was the key motivating factor. Other contributor of
Classical approach Henry Fayol focused on role of manager. According to him
manager should focus on planning, organising, commanding, coordinating and
controlling to increase productivity. By then, Max Weber suggested bureaucratic
approach of management.
Mooney and Reiley set out three common principles in
Classical Approach which are:
The principle of coordination : the must have for employee to work together with unity of command, the exercise of authority, and the require for discipline;
The scalar principle : the hierarchy of organization, the duties need to be graded, and the delegation of works;
The functional principle: a well defined specialization of works and the clear distinction between different kinds of duties.
The principle of coordination : the must have for employee to work together with unity of command, the exercise of authority, and the require for discipline;
The scalar principle : the hierarchy of organization, the duties need to be graded, and the delegation of works;
The functional principle: a well defined specialization of works and the clear distinction between different kinds of duties.
Human relationship school:
The first approach of this study focus
on productivity in relation to variables such as employee morale, dynamics of
group worker, the supervision method, relationship between workers, the
behavioural principles of motivation. The importance of human relationship in
an organisation is the central issue. If focus on group culture. This focus on collaboration
of different units/individuals to cancel the bottleneck effect, which would otherwise,
has existed. The second approach is Edward Mcgregor's Theory X and Theory Y. Here Theory X refers
to those group and individuals who needs strict rules and guiding force because
of their dislike to work whereas Theory Y refers to individuals and groups who
are self organised and motivated and seek responsibility to optimize productivity.
The Modern approach by Peter Drucker and Mintzberg:
According to Peter Drucker manager job is divided into five
basic tasks. They are:
Set objectives
Organise
Motivation and Communication
Measures
Develop people
According to Mintzberg manager's job is divided into 10 sub-headings
under 3 headings. They are:
Informational: Monitor, (Communicator) Disseminator and
Spokesperson
Interpersonal: Figurehead, Leader and Liaison (within and
outside organisation)
Decisional: (Intrapreneural) Entrepreneur, Disturbance
handler, Resource allocator and Negotiator
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