An approach that recognizes the practical and situational constraints on human rationality for making decisions is a Management Approach.
Behavioral scientists attach great importance to participative and group decision making. They are highly critical of the classical organization structures built on traditional concepts and prefer more flexible organization structures.
Quantitative approach focuses on the use of quantitative tools for managerial decision making.
The quantitative management viewpoint focuses on the use of mathematics, statistics and information aids to support managerial decision making and organizational effectiveness. Three main branches have evolved: operations research, operations management and management information systems.
Operations Research is an approach aimed at increasing decision effectiveness through the use of sophisticated mathematical models and possibilities as they can accomplish extensive calculation. Some operations research tools are linear programming, querying, waiting line, routing and distribution models.
Operation management is a field that is responsible for managing the production and delivery function of an organization’s products and services. Operations management is generally applied to manufacturing industries and uses tools such as inventory analysis, statistical quality control, networking etc.
Management Information System:
Management Information System refers to the designing and implementing computer based information systems for use by the management. Such systems turn raw data into information that is required and useful to various levels of management.
A view point which believes that appropriate managerial action depends on the peculiar nature of every situation.
This approach is a viewpoint which argues that there is no best way to handle problems. Managerial action depends on the particular situation.
Systems theory is an approach based on the notion that organizations can be visualized as systems. A system is a set of interrelated parts that operate as a whole in pursuit of common goals. Every system has four major components:
- Inputs are the various resources required to produce goods and services.
- Transformation processes are the organization managerial and technological abilities that are applied to convert inputs into outputs.
- Outputs are the products, services and other outcomes produced by the organization.
- Feedback is information about results and organizational status relative to the environment.
Resources: (1) Human (2) Materials (3) Equipment (4) Financial (5) Informational
Managerial and Technological Abilities: (1) Planning (2) Organizing (3) Leading (4) Controlling (5) Technology
Outcomes: (1) product and services (2) Profits and losses (3) Employee growth and satisfaction.
Human resource managers (and, in fact, anyone managing people on a day to day basis) must be proficient in applying employment law to employment decisions. Occupational safety and health laws mandate strict guidelines regarding safety practices at work. Labor laws lay out, among other things, what the supervisor can and cannot say and do when the union come calling to organize the company’s employees.
Ethics refers to the standards someone uses to decide what his or her conduct should be.
There is one proficiency that is so important that it is best to cover it after the above, because if the manager fails to apply this proficiency, then everything else he or she does would have been for nought. Even gifted managers fail if they make the wrong ethical choices. And even honest managers find it easy to convince themselves that what they are doing is not really wrong. Managing ethically is our last, but in some respects the most crucial for HR manager’s proficiency.
Ethics refer to the standard someone uses to decide what his or her conduct should be. Ethical decisions always involve morality, matters of serious consequence to society’s well being, such as murder, lying, and stealing.
In India, the Securities Exchange Board of India (SEBI) and the Ministry of Corporate Affairs (MCA) have set the relevant framework for corporate conduct. Under these, the promoters and key managers bound to Indian business houses like the Tata group and Infosys have codified their code of ethics to ensure that the same is followed with zero tolerance. The codes are promulgated from the top office, indicating the significance attached to them. While MNCs operating in India subscribe to their parent companies’ code of ethics, many Indian organizations are moving fast to adopt a formal ethics policy and view corporate governance seriously.
The above mentioned resources with proper ethics all go into the the successful working of an organization including profitability. The organization earns its reputation from its working combining the above resources.