Styles Of Management In Pharmaceutical Industry

Lecture # 4

RIZWANA RAHEEL
M.Phil PHARMACOLOGY AND TOXICOLOGY
Asst Professor, Hajvery University (HU)
 Styles Of Management
In Pharmaceutical Industry

Management styles are the methods managers use in

handling situations and expressing their skills  within
an organization.

There are primarily five distinct styles of management

varies from organization to organization.
1. Caption of industry style (predated to 1885)
2. Hard nose style (mid 1910 to 1930)
3. Human- relation style (1940’s and early 1950’s)
4. Management by pressure style (early 1950’s to mid
1960’s)
5. Management by objective style (beginning in the
mid 1960’s)
 1. Caption of industry style (predated to 1885):

 Came into existence before industrialization

and persisted till the establishment of scientific
management in 1885
Scientific management is the art of knowing
exactly what is to be done and the best way of
doing. It analyzes and synthesizes workflows
 Strong individualistic person who is the boss of an
enterprise has represented captain of industry style.
 This style is based on authority centralized to the
head of the organization.
The communication is in the form of orders.

Disadvantage:
 In this style of management, the pay scale is not
justified according to the job performed
Causes of decline
 The caption of industry style of management
gradually declined as industrial society
became more mature.
 Introduction of the scientific management
also the cause of decline.
2. Hard nose style (mid 1910 to 1930):
 Hard-Nosed---realistic and determined; tough-
minded.
 Hard-Nosed leaders are the type of people who
order and dominates employees around which
depletes staff of any positive energy they first had
when they arrived at work.
 It is based on scientific management and
having more emphasis on high standards of work
performance to lower the unit of production cost.

 It is broadly the application of scientific

procedures, techniques, and tools to operating,
strategic and policy problems in order to develop
and help evaluate the solution
 Scientific management was based on dividing
each job into small tasks units identifiable and
measurable in terms of time required to perform
single task.

 These divided elements are then organized into a

work cycle for each job.
Management
Dividing job
Scientific

+
Organized into a work cycle
Advantages :
1. The pay style were justified strictly according to
the performance of the workers based on strict
standards.
2. Incentives were based only on fulfilling the work
standards.
Disadvantages:
An employ was considered as working unit, robot
and the productivity was achieved through pressure
3. Human- relation style (1940’s and early
1950’s):
 Was emerged due to the growth of unions,
insufficiency of workers and increased need of
production.
 to motivate employees through good human
relation programs to increase the productivity.
 This was an era when fringe benefits became an
important consideration instead of fixed pay
increments.
 employed other fringe benefits additional to pay
increments to motivate the workers for increase
in productivity.
4. Management by pressure style (early 1950’s to mid
1960’s):
 This style of management originated under the
economic conditions characterized by increased
demand and high prices and costs.
 To meet these conditions, management exerted
pressure and combined the hard nose and
scientific management approaches

 Management exerted pressure to increase

productivity, hold cost down and attain a
larger share of the growing market.
 Pressure was exerted to produce more by gearing
promotion and other economic incentives to
productivity, while maintaining increased fringe
benefits, but putting less reliance on the policy of
good human relations
 On the contrary, the tools of scientific
management had been refined in this approach
 This is the era when the good manager was
known as someone “who could make things
happen”
 Key points:
I. Increase productivity
II. Hold cost
III. Pressure style + Hard-Nose style
IV. Fringe benefits/ promotion /incentives
V. Scientific Management refined
VI. Less reliance on human relations
5. Management by objective style
(beginning in the mid 1960’s):
 The management by objective is described
as a process where by the seniors and
subordinate managers of an organization
jointly identify their common goals.
 They also define each individual’s major area
of responsibility in terms of results expected
of him, and use their measures as guidelines
for operating the unit and assessing the
contribution of each of its members
 Formulation of this style was based on the
analysis of the previous management styles
 Realizes the esteem of workers
Implementation of Management by objective style :
I. Goal setting
II. Responsibilities are assigned
III. Formulation of action plans
IV. Measuring results against goals
VI. Modification in goals/ criteria
VII. Annual review of results
 Table: Features of Management Styles

Sr. Management Era Features

No. Styles
1 Caption of (predated to 1. Authority centralized
1885) to the head
industry 2. Pressure on workers
3. Pay scale not acc. to
performances

2 1. Centralized authority
Hard nose (mid 1910 to
2. Pressure on workers
1930) 3. Pay scale acc. to
performance
4. More emphasis on
performance
5. Based on scientific
management theory
Sr. Management Era Features
No. Styles
3 1. Based on good human
Human (1940’s and
relations
relation early 2. Less centralized authority
1950’s) 3. Productivity but motivation
4. Fringe benefits with fixed
salary
5. Emphasis on work’s esteem

4 (early 1950’s 1. Based on hard-nose+

Management
to mid 1960’s) scientific management
by styles
pressure 2. Less pressure as compared
to hard-nose style
3. Fringe benefits with fixed
salary
4. Less human relations
Sr. Management Era Features
No. Styles

5 Management (beginning in 1. Combined merits of all

by orientation the mid styles
1960’s) 2. Goal oriented
3. More subordinates
participation, as seniors
and subordinate
managers of an
organization jointly
identify their common
goals
4. Realizes the esteem of
workers
 Conclusion
Q: How does one know which management style
is an effective management style?
Choosing one style of management or leadership
might be impossible as all of them have advantages
and disadvantages. Situational or adaptive
leadership with management works best in most
cases. Managers should have a clear vision of the
goals to be achieved. They should be passionate
and should have the ability to induce trust among the
employees.
 Management
Managers set goals
Managers tell people what to do
Managers don’t want to get out
of their comfort zone
Managers supervise their team
Managers have subordinates
Managers exercise power over
people
Exercise/ Execute rules and
policies
Leadership
leaders set the vision
Leaders show people what to
do
Leaders take risks
Leaders coach them
Leaders have followers
Leaders develop power with
people
Making new rules and
policies
 Conclusion
Q: How does one know which management style
is an effective management style?
Choosing one style of management or leadership
might be impossible as all of them have advantages
and disadvantages. Situational or adaptive
leadership with management works best in most
cases. Managers should have a clear vision of the
goals to be achieved. They should be passionate
and should have the ability to induce trust among the
employees.