Management Theories and Philosophies, Exams of Management Theory

Download Management Theories and Philosophies and more Exams Management Theory in PDF only on Docsity! TITLE: WITH REFERENCE TO APPROPRIATE LITERATURE AND CASES, CRITICALLY EVALUATE THE INFLUENCE OF CLASSICAL AND HUMAN RELATIONS APPROACHES IN MANAGEMENT TODAY BY STUDENT NUMBER: R1507D899259 COURSE: BS4S02-V1-12671 COURSE DESCRIPTION: Management Theories and Philosophies DATE: 18th August 2019 TUTOR: Dr. Leonidas Efthymiou Introduction The exercise of administration started as soon as man initially made an effort to complete objectives through functioning collectively in numbers (Mainul and Abdul, 2009, p29). The classical and human relations approaches to management are two theories which have contributed highly in the way organizations are run, employees are motivated and productivity is increased in small, medium and large organizations across the globe. Companies have adopted both the human relations approach and the classical approach because many organizations today believe that no single theory at present can guarantee the effectiveness of an organization but that a management must have to select a mix of theories which seem to meet the needs of the organization and its internal & external pressures at a particular period in its life. This means that organizations today makes use of the contingency approach / theory, which was built on the ‘open systems approach to management’ and is essentially a “pragmatic theory”. The composition of this theory is made up of a number of other theories whose application depends on the environment or circumstance (Cole, Gerald & Kelly, 2015, p16). The contingency Theory is very important as it views organization as complex systems of people, tasks and technology. This is why it focuses not only on “human relations or social factors” as the sole basis for an effective organization but also believes that an organizations effectiveness is affected by technical, economic and environmental factors (Cole, Gerald & Kelly, 2015, p16). This simply means that in modern organizations, management systems are usually made up of inputs of human relations, classical theory and other theories depending on the circumstance or environment, this then means that human relations theories and classical theories have great impact on the modern day organization management system. To properly understand the similarities, differences and influences of these approaches to management & leadership on the modern day organization we need to understand the principles of these two theories. The exponents of classical theory were principally concerned with the structure and mechanics of organization while the human relations and social psychological theorists focused on the human factor at work (Cole, Gerald & Kelly, 2015, p1). These exponents are important elements in achieving effectiveness and efficiency in an organization which eventually drives towards profitability. The classical theory was based on the early research works of Henry Fayol (1841-1925) whose principles of management remains the bedrock of classical management, Frederick Winslow Taylor (1856-1915) who is the father of scientific management and Max Weber’s (1864-1920) Bureaucratic organization approach. These classical theorists were practicing managers who reflected upon and theorized about their personal experiences of management with the objective of producing a set of rational principles of management which could be applied universally in order to achieve 2. Authority: The right to give orders. 3. Discipline: Outward marks of respect. 4. Unity of command: One man one superior. 5. Unity of direction: One head and one plan for a group of activities with the same objective. 6. Subordination of individual interests to general interest 7. Remuneration: Pay should be fair to both the employee and the firm. 8. Centralization. 9. Scalar chain: The line of authority from top to bottom of the organization. 10. Order: A place for everything and everything in its place; the right man in the right place. 11. Equity: A combination of kindliness and justice towards employees. 12. Stability of tenure of personnel: Employees need to be given time to settle into their jobs. 13. Initiative. 14. Esprit de corps: Harmony is a great strength to an organization. (Cole, Gerald & Kelly, 2015, p25). TAYLOR’S SCIENTIFIC MANAGEMENT The last 20 years of the 19th century were a time for facing up to the often ugly realities of factory life. From the employer’s point of view, efficiency of working methods was the dominant issue. The gathering pace of the industrial revolution in the western world had given rise to new factories, new plants and machineries; labor was in abundance. The problem was how to organize all these elements into efficient and profitable operations. It was during this period that Taylor developed his ideas, he was passionately interested in the efficiency of working methods. He realized at a very early stage that the answer to this problem was in the systematic analysis of work. His experience both as a worker and a manager had convinced him that only few workers apply more than minimal effort into their daily work. He described this tendency as ‘soldiering’, which he subdivided into ‘natural’ soldiering i.e. human’s natural tendency to take things easy and systematic soldiering i.e. the deliberate and organized restriction of the work rate by employees (the calculated efforts by workers to produce less than they are capable of). According to Taylor, the following are the reasons for soldiering: 1) Fear of unemployment 2) Fluctuations in earnings from piece-rate systems. 3) Rule-of-thumb methods permitted by management. The solution to the above mentioned problem according to Frederick Winslow Taylor was to practice ‘Scientific Management’. The five principles of scientific management theory as theorized by Winslow Taylor are as enumerated below: a) Develop a science for each operation to replace opinion and rule of thumb. b) Determine accurately from the science the correct time and method for each job. c) Set up a suitable organization to take all responsibility from the workers except that of actual job performance. d) Select and train the workers e) Accept that management itself be governed by the science developed for each operation and surrender arbitrary power over workers, i.e. cooperate with them. The application of the above approach helped to eliminate both natural and systematic soldiering (Cole, Gerald & Kelly, 2015, p26-28). Despite its short comings with critics, the management style has proven to increase productivity in the oil and gas sector, using Shell petroleum development company of Nigeria (SPDC) for example, they are known to pay their workers high financial incentives, which is a good driving force for its employees, registering the fact that if they don’t carry out their duties well, they might lose their high paying jobs and not get another like it. Taylor’s scientific theory was further developed by Henry Gantt’s Bonus system, Lyndall Urwick 10 principles of management and Brech’s people development theory which was influenced by the prevailing human relations theories of 1950s and 1960s. Weber’s Bureaucracy Theory Unlike Fayol and Taylor, Max Weber was an academic, sociologist and not a practicing manager. Weber wanted to find out why people in organizations obeyed those in authority over them. It was in his publications that the term ‘bureaucracy’ was used to describe a rational form of organization which today exists to a greater or lesser extent in practically every business and public enterprise. In his analysis of organizations, Weber identified three basic types of legitimate authority: traditional, charismatic and rational-legal authority (Cole, Gerald & Kelly, 2015, p35-36). Contributions by Weber can also be seen in the way organizations are making constitutions, rules and regulations to guide workers in carrying out duties and responsibilities. In the same thought, professional bodies have come up with rules and regulations to guide their members in carrying out their professional duties, the same rules that govern the members of certain professional bodies are also adopted by the institutions in which they work in. General Motors is one company that adopted the bureaucratic approach. Alfred Sloan, a President of the General Motors management style allowed for decentralized production facilities that used centralized policies for organizational control. Pamela, in the article what is bureaucratic leadership, 2015 states that Harold Geneen, a business man was able to acquire corporations and expand his business by striking stringent monetary discipline in the newly-purchased companies. The main features of a bureaucracy, according to Weber, are as follows: a) Continuous organization of functions bound by rules b) Specified spheres of competence, i.e. the specialization of work, the degree of authority allocated and the rules governing the exercise of authority c) A hierarchical arrangement of offices (jobs), i.e. where one level of jobs is subject to control by the next higher level. d) Appointment to offices are made on grounds of technical competence e) The separation of officials from the ownership of the organization f) Official positions exist in their own right, and job holders have no rights to a particular position. g) Rules, decisions and actions are formulated and recorded in writing. (Cole, Gerald & Kelly, 2015, p35-36). . In Natony limited, where I currently work, every department has a skilled supervisor to oversee the various work processes and also makes sure duties are carried out effectively in a timely and orderly manner, taking the QA/QC department for example, the welding Inspector reports to the QA/QC Engineer, who in turn reports to the QA/QC Lead / Supervisor, who then reports to the QA/QC Manager which is the highest level in hierarchy for the QA/QC department. Organizations adopting the practice of these theories pay more attention to supervising from higher hierarchy to lower in its commands. Human Relations and Social Psychological Theories The human relations approach has influenced modern management. The social relationships methodology sought after transforming the ordered administrative arrangements so enthusiastically advocated by classical authors (Alfred, 2015, p.174). circumstance will bring out a highly effective and efficient management system of an organization. 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