Management Theories and Philosophies - Assignment Example

Management Theories and Philosophies Table of Contents Table of Contents 1 Introduction 2 Analysis 2 Classical Approach 3 Frederick W. Taylor theory of Scientific Management 3 Criticism of Taylor’s Approach 3 Henri Fayol theory of Administrative Management 4 Max Weber theory of Bureaucratic management 5 Criticism of Classical Approach 5 Human Relation Approach 5 Elton Mayo’s Human Relation Approach 5 Douglas McGregor approach of Theory X and Theory Y 6 Abraham Maslow’s Hierarchy of Needs Theory 6 How these approach reflected in Company policies 7 Scientific Management Approach and the Ford Motor Company 7 IBM and Classical Approach 8 Hewlett-Packard (HP) and Human Relation Approach 9 Google and Human Relation Approach 9 Conclusion 9 Reference List 11 Appendices 14 Appendix 1 14 Appendix 2 14 Introduction The Management Theory and Philosophy is referred to an independent forum that pays attention on the essential philosophical matters of management in terms of both theory as well as practice (Dibben et al, n.d.). Management includes planning, organizing, commanding, coordinating and controlling (Koontz and O’Donnell, 1984). The fundamental theories which are used in today’s management are the Classical theory and the Human Relation theory. This paper will focus on how it recounts to the scrutiny of today’s managers, and why it is significant to employees and managers. It will also focus on the contribution of various authors such as Frederick Winslow Taylor, Henri Fayol and Max Weber who have applied these theories in various disciplines in terms of Classical Approach. This paper will also take into account the contributions of Douglas McGregor, Elton Mayo, and Abraham Maslow in exploring the human relation approach in various fields of management. This paper also takes into account the organization which had applied classical approach and human relation approach in order to discover the most efficient method to perform a job, to analyze management in terms of entire process of organizing, planning, coordinating, commanding and controlling, to know whether the employees perform better in team, and to understand individual nature. Analysis The Classical Approach acknowledges the main part of management thought, which depends on the principle that employees do only have physical and economical needs; and the requirement for satisfaction of job and social needs either are unimportant or does not subsist. It defines the homogenous facts on the administration of organizations (Sarker and Khan, 2013). This approach supports decision making, high interest of labour and profit maximization. The analysis will focus on the contribution of various authors such as Frederick Winslow Taylor, Henri Fayol and Max Weber who have applied these theories in various disciplines. Classical approach includes Scientific Management, Administrative Management, and the Bureaucratic management (Singla, 2010). On the other hand, the Human Relation Approach focuses on the people and human being’s behaviour. It refers to an organizational tool that assists in efficiency thinking and rationalization (Alvesson and Berg, 1992). It goes further than physical contributions in order to include cognitive, emotional, and creative aspects of workers. Employees communicate opinions, suggestions, feelings, and complaints to boost production and satisfaction (Robbins and Judge, 2009). Classical Approach Frederick W. Taylor theory of Scientific Management Frederick Winslow Taylor who is known as the Father of Scientific Management (Rahman, 2012); analyzed management logically in order to discover the most efficient method to perform a job i.e. “one best method” to perform the job. F.W. Taylor wanted to develop industrial efficiency. The main objective is to maximize the prosperity for every employee (Taylor, 2006). While working in steel industry, he investigated the occurrence of workers, deliberately operating well underneath their capability that is known as “soldering”. He accredited soldering to three reasons: the most commonly held conviction among workers was that, if they turn out to be more productive, fewer workers would be required and employment would be reduced; workers take immense care on no account to do a job at an excellent pace for terror that this quicker pace may become the fresh standard. If workers are paid in terms of the quantity they generate, they have a fear that administration will reduce the per unit pay in case the quantity enhanced; employees waste a lot of their attempt by depending on rule-of-thumb technique instead of on optimal work technique that can be examined through scientific lessons of the assignment. Taylor mentioned that, scientific supervision of the job was more efficient than the “initiative & incentive” technique of motivating employees. He executed research that he named “time studies” which is also called as time & motion studies in order to methodically determine the best way to execute a job. Taylor make use of stop watches in order to determine the efficiency of workers. Taylor’s four main ideologies of scientific management are: Substitute rule-of-thumb technique which depends on a scientific learning of the job; scientifically choose, guide, and develop every employee rather than inactively leaving those workers to guide themselves and training must be done methodically through experimentation and observation ; work together with the employees in order to make sure that the systematically developed techniques are being pursued; split work equally between workers and supervisors, so that, supervisors follow scientific management values in order to plan the work, and the employees would actually carry out the tasks (Martinich, 1997). The scientific management approach is important in modern day management because, it helps to select employees with suitable capabilities required for each job, support employees by scheduling their work and eradicate interruptions and offer wage incentives to employees for bigger output. Criticism of Taylor’s Approach The approach of Taylor have been criticised for many reasons. His reward system could dehumanize the place of work and reduce workforce to little further than drones. Theorist also identified that his view of motivating employee were narrow and inadequate and did not recognize variance among the individuals. They also argued that this approach does not understand the social perspective of work as well as higher requirement of workers and also ignored their proposal for any suggestions. It is not helpful towards dealing with teams or groups. It is not accepted in the current work environment prevailing today (Griffin and Moorhead, 2009). Henri Fayol theory of Administrative Management Henri Fayol is known as the Father of Modern or Administrative Management; analyzed management in terms of entire process of organizing, planning, coordinating, commanding and controlling. He also established fourteen management principles and made a clear difference between managerial and technical skills (Lussier, 2014). The fourteen principles of management are as follows: Division of labour: It permits for occupation specialization. Fayol noticed organizations can have excessively much specialization contributing to deprived quality and employee involvement. Authority & Responsibility: He involves both informal and formal authority ensuing from extraordinary expertise. Discipline: In terms of discipline; respectful, applied, and obedient employees are needed. Line of Authority: It means an apparent chain from peak to base of the organisation, also referred as Gang Plank. Centralization: It is referred to the level to which the power rests at extremely top. Agreement of Direction: It means one arrangement of action in order to lead the firm. Agreement of Command: It implies that workers should have just one boss. Order: Every employee is placed where they encompasses the most importance. Initiative: Initiative should be taken to encourage innovation. Equity: It implies that all employees should be treated fairly in terms of respect and justice. Remuneration of workforce: The system of payment leads to success. Constancy of Tenure: It implies that long term service is important. General concern over individual concern: The firm takes primacy over individual. Union is power: It refers to mutual understanding and harmony among the affiliates of organization (Singla, 2009). Max Weber theory of Bureaucratic management Max Weber introduced the idea on Bureaucratic Firms. His major work was based on authority and power like a sociologist (Weber, 1978). He envisaged that organization should be supervised on a rational and impersonal basis. This structure of organization is termed as Bureaucracy. Organization which depends on rational power would be further efficient and compliant to changes. The selection of employees is based on technical qualification and competence (Rao and Krishna, 2009). Firms should depend on such rules which are not personal and applied equally to all workforces. This foundation allows many firms to become exceptionally efficient. Criticism of Classical Approach One main criticism is that most of the insights of classical approach are excessively simplistic for the complex organization of nowadays. Critics viewed that classical approach and theory of scientific management are more suitable in the past, because that time the atmosphere of the organization were stable as well as predictable. But it is not suitable for today’s employees and managers. They also argued that deeper knowledge of the “human nature” will be more beneficial for effective management (Duening and Ivancevich, 2003). Human Relation Approach Elton Mayo’s Human Relation Approach Human Relation Approach was founded by Elton Mayo. The experiments which are commenced by Mayo started at Hawthorne plant during 1930 and it took place in USA (Mayo, 1933). His work exemplifies that, if managers or company is concerned about employees and is bothered for them, and then it will have an encouraging effect on the motivation of employees. Elton Mayo’s work explained that employees frequently work excellent in teams. He also illustrated that motivation will be more in employees, provided that they were supervised and discussed more about their work. He considers that productivity would be raised by including employees in decision making procedure (Gordon, 2007). The first experiment at Hawthorne plant was the “illumination study” which was considered to test a range of lighting intensity and how these lighting levels influenced worker productivity (Wrench, 2012). The next study was the “interviewing program” which was conducted to examine connection between employee morale and supervisory practices. Workforce expressed their feelings and ideas and the process is considered as more significant than definite results. The next one is “bank wiring room observation study” which emphasizes that social groups have a tendency to influence individual work performance and production. It also focused on the fact that informal organization limits workforce behaviour within proper organizational structure. The implications of Hawthorne studies on the following programs are as follows: Illumination study: It is the simple practice of examining people’s behaviour and had a tendency to change it. Interviewing program: It implies that employees were invited for their opinions and positive approach toward company amplified. Bank wiring room observation study: It led future philosophers to report for the continuation of casual communication. All together, these studies assist to file the authoritative nature of societal relation in the organization. Douglas McGregor approach of Theory X and Theory Y He discussed some fundamental principles of the human relation approach theory. He expressed that, to understand individual nature, one must ascertain the theoretical postulation upon which the deeds is based. According to him, there are two objectives: foresee and control the behaviour, and knock unrealized potential. Assumptions of Theory X (Classical Theory): The average people have an intrinsic loathe of work and will circumvent it; most human being must be controlled, coerced, threatened, and directed with punishment; the average people desires to be focussed, wishes to neglect responsibilities, has comparatively little ambition, and wants security (Schermerhorn 2010). The main drawback of Theory X is that, it neither describes nor explains human nature. Assumptions of Theory Y (Human Relation Theory): Mental and physical attempt in work is alike rest/play; warning of punishment and external control are not considered as the merely strategies; dedication to ideas is a meaning of the incentives associated with the achievement of employees; the average people learns, under suitable conditions, to accept as well as to take responsibility; the capability to implement a high level of imagination, and creativeness in the organizational problem’s solution is widely disseminated in population; logical potentialities of average people are underutilized. Douglas McGregor approach of Theory Y is considered as more positive perception of the human nature (Schermerhorn 2010). Abraham Maslow’s Hierarchy of Needs Theory Maslow assured that, human being is motivated in order to accomplish certain needs. These needs offer a personal purpose that drives the human being towards fulfilment of personal motive (Lonazzi, 1992). When one desire is fulfilled people seek to accomplish the next one, and it continues. The earliest version of hierarchy of needs theory of Maslow involves five motivational desires, most frequently portrayed as hierarchical degree. The five stage model of hierarchy of needs is divided into fundamental needs (such as physiological, esteem, love, and safety) and growth needs (e.g. self-actualization) (See Appendice 1). The basic or deficiency needs are known to motivate human being when they are actually unmet. The desire to accomplish such needs will also turn into stronger one, the larger the period they are deprived of such needs. For example, if a person remains without food for long duration the more starving he becomes. Lower level fundamental needs must be satisfied first before rolling on to congregate growth need of higher level. Once the basic needs satisfied, one can easily attain the need of highest level i.e. self-actualization (McLeod, 2007). Later Maslow’s five stage model is converted into eight stage model (See Appendice 2): Physiological needs: food, drink, air, warmth, shelter, and sleep. Safety needs: security, law, order, and stability. Belongingness and love needs: love and affection- from workforce, friendship, and family. Esteem needs: achievement, self-esteem, independence, mastery, dominance, and managerial responsibility. Cognitive needs: meaning, knowledge, etc. Aesthetic needs: search and appreciation for beauty, form, balance, etc. Self-actualization needs: self-fulfilment, realizing individual potential, seeking peak experiences and personal growth. Transcendence needs: assisting others in order to attain self actualization (Redmond, 2014). How these approach reflected in Company policies Scientific Management Approach and the Ford Motor Company Frederick Winslow Taylor builds up various organizational and management theories that show the way to considerable breakthrough in different business practices. During the beginning of 20th century, industrial manufacturing levels have grown all through across the world. Taylor’s initiatives have considerably shaped modern techniques of structural organization and mass production. At the similar time, Taylor started researching with his methods, the famous businessman Henry Ford was putting much effort developing a number of his currently infamous automobiles. Henry Ford named those cars alphabetically starting from A-S. The most booming car of Ford was Model T. By implementing the theories of Taylor, Ford Motor Company finally created over 15mn Model Ts amid 1908 and 1927. Henry Ford’s determined production efforts reduced the production cost, which leads to lower prices among the market. The goal of Henry Ford was to produce “motor car for great mass” and to build automobile travel accessible and inexpensive so that it can be afford by everyone. The scientific management theory of Taylor was established on the grounds that individual employees would be further creative if the task assigned to them was such that it would accurately suit to their strengths and personal capabilities. He further suggested that the abolition of needless physical movement by employees would lead to increased productivity. During that time, the Model T’s price was $825. The Model T of Ford was accepted by consumers, and during the end of the year 1908 i.e. the Ford car 1st year in the market-it had sold more than 10,000 units. During the same year, Henry Ford hired F.W. Taylor in order to examine his employees and establish the time-saving and most efficient techniques for mounting the productivity of company. He studied the observations of Taylor and then began to integrate scientific management approach into his techniques of production. The first step of Ford was to assess each part which was necessary to construct the automobile i.e. from smallest to largest components. Applying Taylor’s theory at the assembly phase, Ford dogged that the big components of car should stay stationary, whereas, the smaller components should be fetched to the motor vehicle as required. This approach speed up the process of production significantly, however not enough in order to meet the final goal of manufacturing cars at the tip levels of effectiveness. To further lessen the bidding time of car, he had his workers remain inactive during the assembly line, while the car body moved during individual workstations. Labourers would pull a car with the help of rope throughout one terminal after another, permitting every worker to execute his exact task prior to moving the vehicle to the subsequent station. This method was continued until the construction of car was complete. As Ford maintains to view his recent production process, he came to know that there are even more parts where improvement could be done. He observed that there are certain tasks which took longer on normal basis to complete than others. He continued to develop and modernize the process, and during 1913, Ford introduced an entirely motorized assembly line. After few years only Ford brought the average production time for Model T cars down to ninety three minutes. As a result, the price was lowered to $575. By the end of 1914, Ford occupied 48% of automobile market. After that, he quickly brought down the prices of motor car to convenient levels so that the workers working in his factory could also afford the car. During the early of 1914, he also raised the remuneration of workers. As a consequence, he greatly enhanced morale of the workers and further nurtured his probable customer base. After immediately sixteen years of applying F.W. Taylor’s scientific management approach, he skilfully sold more than 10 million cars (Saylor, 2013). IBM and Classical Approach IBM has implemented classical approach theory and proposes a traditional payment plan. As IBM presumes that the money is chief motivator, the primary means of reward are pay and monetarily valuable benefits, like insurance coverage and retirement plans. The company also pays performance bonus, base pay, awards, commissions, and other types of earnings to its employees. Bonuses are interrelated with employees’ contributions and overall performance of business unit. IBM also proposes generous holidays and paid vacation. By applying classical approach it aims for high interest of labour and profit maximization by selecting employees with suitable capabilities required for each job. However, it does not organize the family days or kid’s days for their employees that would contribute more towards keeping them satisfied and happy (Griffin, 2009). Hewlett-Packard (HP) and Human Relation Approach HP has adopted several innovative methods towards keeping their workers happy at the workplace. It follows flexible working time depending upon the employee’s convenience. Every effort is made towards providing exceptional opportunity for growth of the employees. HP has created a family-type environment and illustrated the finest human relation management. There are annual picnics, family days, wedding gifts, kid’s days, facilities of car serving, etc to make their workforce happy. They try every possible thing to keep employees satisfied because satisfied employees contribute more towards the success of company (Rudani, 2011). Google and Human Relation Approach Google follows human relation approach to its entire business, including its reimbursement plan. Most of the base salaries of this company are little less than industry standards, but they are increased through stock preferences and an employee oriented culture. For example, employees can use up to 20% of the time on assignments of their personal choosing. Apart from “a benchmark package of extreme benefits” Google also proposes childcare and compensation for all the public transportation, along with online medical care, dry cleaning, and massages. For the purpose of relaxation, employees can always choose roller hockey, beach volleyball, pinball machines, or yoga (Griffin, 2009). Conclusion This paper focuses on how Management Theory and Philosophies which includes Classical and Human Relation Approaches are beneficial in modern day management of companies. Classical approach includes Scientific Management, Administrative Management, and the Bureaucratic management which pays more attention on decision making, high interest of labour and profit maximization. The Human Relation Approach focuses on the people and human being’s behaviour. Human cultures are traditionally developed, individually interpreted and socially maintained (Collins, 1998). Employees strive to obtain to direct themselves or each one of them (Parker, 2000). Taylor’s Scientific Management Approach analyzed management logically in order to discover the most efficient method to perform a job. Fayol analyzed management in terms of entire process of organizing, planning, coordinating, commanding and controlling. And Max Weber envisaged that, an organization should be supervised on a rational and impersonal basis. Frederick Winslow Taylor and Henry Ford’s engineering breakthrough would not have arrived at an enhanced time for the automobile industry. Ford acknowledged the profit that, Taylor would bring to the operations carried by him and took complete benefit of his strategies and expertise. As a consequence, the automobile industry has been constantly making profits throughout the 21st centuries, by making use of cost reductions and new efficiencies, and encompassing to continued perfections in the manufacturing methods athwart all the industries. By applying Classical approach in its management practices; IBM pays monetarily benefits and retirement plans to its employees. HP applied human relation approach to keep their employees happy as well as satisfied. In both the year i.e. 2007 and 2008 the Human Relation approach helped Google to hold top position in Fortune’s list of “100 Best Companies to Work For”. Reference List Alvesson, M. and Berg, P.O., 1992. Corporate Culture and Organizational Symbolism. Berlin: Walter de Gruyter. Collins, D., 1998. Organizational Change: Sociological Perspectives. USA: Routledge. Dibben, M., Freeman, R.D., Griseri, P. and Schipper, F., n.d. Philosophy of Management. [online] Available at: [Accessed 28 October 2014]. 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