Management Theories and Philosophies - Essay Example

Management Theories and Philosophies Table of Contents Introduction 3 Discussion 4 Literature review 4 Contemporary Examples of the ical Approach to Management 10 A Contemporary Example of the human Relations Approach to Management 12 Conclusion 13 References 14 Introduction Management in the organization is defined as the function that coordinates and organizes the efforts of people that can help to accomplish objectives and goals (Griffin and Moorhead, 2009, p.407). Management attains their objectives of the policy by controlling, planning, directing and organizing recourses of the organization. According to Drucker (2012), the key objectives of management include innovation and marketing. The thinking of systematic improvement of management is viewed after the development of large industrial organizations. It is traditional to classify the implementation of various approaches that can help to categorize the main trends in the advancement of management theory and organization behaviour. At the beginning of the 20th century in United States and Europe, the initial management philosophy consisted of numerous numbers of attempts to acquire detailed information and getting to know about emergence of new organizations in to industrial life (Drucker, 2012, p.92). From 1924 to 1933, series of famous experiments which were conducted through the Hawthorne Studies provided several findings which resulted in findings that supported the human relations approach (Draft, 2009, p.42). The development of human relations approach occurred as a result of negligence of human characteristics, abstract functions, materials and over-emphasis machines. The initial founder of the Behavioural or Human Relations Approach to Management was Professor Elton Mayo. On the other hand, in the earlier part of the century, the origin of the classical approach was primarily carried out by scientists named Urwick, Fayol, Taylor, etc. The perception of the organization by classical writers is assumed to be in terms of its formal structure and purpose. The classical theory focuses on the work and implementation of effective strategies which are good for the organization. Whereas, human relation approach focuses on the contribution, needs and value of the employee. The prime purpose of the project is to provide vivid information and detailed analysis about the impact of human relations and classical approaches in today’s management. The framework of analysis will be based on these two approaches. The assessment is primarily based on the history of management theory which leads to the introduction of classical and human relations approaches. Relevant policies, practices and industry sectors have been effectively incorporated in the paper to effectively illustrate the impact of these approaches towards management. Examples and cases of various organizations have been demonstrated in the paper. The historical influence of human relations and classical theorists has been recognized and effectively presented in the paper. Discussion This part of the essay develops a literature review on the given topic. The theories are supported with the help of some contemporary examples. Literature review This section of the paper examines and identifies several studies that are related towards the contribution of the human relations and the classical approaches in the field of management. During earlier times, the theories of management were not really theories as they were viewed as experiences or discrete practices. The classical approach towards the field of management is the principal study, which put emphasis on making workers and organizations efficient and highlights rationality. Furthermore, the human relation approach to management is an extended version of the classical approach which broadens and expands the studies of management. The Classical Approach Urwick, Henri Fayol, Fredrick W. Taylor, etc. were some of the scientists that have initially carried out the classical approach in the field of management. The classical approach acknowledges the concept of management thought, which is primarily based on the belief that employees of an organization have only physical and economical needs. Moreover, the need for job satisfaction and social needs are not as important as economical needs. The classical approach to management began in the year 1900 and continued till 1920s (Deb, 2006, p.34). The pivotal concern of the approach is based on increasing the efficiency of the organization and workers through effective management practices. Major contributors Fredrick Winslow Taylor (1856-1915) is regarded as the father of scientific management. Taylor analyzed the process of management scientifically and found out the effective way of doing jobs (Taylor, 2004, p.98). Henri Fayol is another pivotal contributor towards the development of classical approach to management. Henri Fayol is regarded as the father of modern management. The universal method of organizing, controlling, coordination, commanding and planning can be used effectively to analyze management. Moreover, Henri introduced fourteen philosophies of management (Lewis, Goodman and Fandt, 2006, p.36). There are three main classical theories which include the Theory of Scientific Management by Fredrick Winslow Taylor, the Administrative Theory by Henri Fayol and the Theory of Bureaucracy by Max Weber. Scientific Management Theory Scientific management theory basically focuses on finding out the best possible way for completing a task successfully. Moreover, it investigates how a task can be structured and organized so that it can help to attain utmost possible production from workers. Scientific management is the process of finding the best way to complete a task. Furthermore, these methods and processes of scientific management can be implemented as a research application for research and at all levels. Therefore, it can be notified that this theory can be applicable to lower-level management. This theory is primarily consists of work done by Henry L. Gantt, Fredrick Winslow Taylor, Lilian Gilbreth and Frank Gilbreth. The contribution of Fredrick Winslow Taylor towards scientific management is the key reason behind being named as the father of scientific management (Rao, 2012, p.9). Taylor wanted to define clear guidelines for cultivating the efficiency of production so that it could help to create a mental revolution among managers and workers in an organization. Fredrick Winslow Taylor also argued that the creation of four principles could help both managers and workers to bring prosperity (Robbins, 2008, p.30). The four principles of management include: 1. Division of responsibility and work among workers and management which is almost equality. All the work which is done by management must be effectively suited to the workers. 2. All work can be done by following the principles of science by wholeheartedly cooperating with the workers. This process can ensure that all work done by workers can be completed in accordance with the principles. 3. Worker should be scientifically taught, trained and developed. 4. The old rule of thumb rule must be replaced by development of science for each part of the work of every individual. According to Fredrick Winslow Taylor, “the introduction of scientific management is not any device of securing efficiency, it basically involves in total metal revolution of the human beings working in an established industry. A whole metal revolution means duties of working men towards their employers, their fellow men and their work” (Griffin, 2011, p.17). Despite emergence of several criticisms regarding the scientific theory of Fredrick Winslow Taylor, the contribution and impact of practice and theory has been enormous. The simplistic view of Taylor on human relationships and motivation has cemented the introduction of several alternative viewpoints of other researchers. On the other hand, Lilian Gilbreth and Frank Gilbreth have significant contribution towards the development of the scientific theory of management. Gilbreth tried to focus not only on normal workers, but also on handicapped workers. According to Gilbreth, it is pivotal to continue to focus on every worker working in an established organization (Guest, 2007, p.9). They were effective in finding the best way to help perform the job efficiently. The primary investigation tools for Lilian Gilbreth and Frank Gilbreth were motion study. This study was based on finding the best possible way to reduce the time of a job. In today’s management, motion analysis is implemented is such a way that it can help to establish standards of job performance (Telsang, 2006, p.7). Administrative Management Theory The scientific manager highlights job design which is based on the study of managers and management. Administrative management theory is based on focusing on the entire range of the performance of managers and efficiency of the organization. The most notable contributor to this management theory is Henri Fayol. The work of Henri Fayol is based on industrial and general management which presents the philosophy of management (Gruening, 2001, p.21). The divisions which can help analyze the process of management are controlling, coordinating, organizing, planning and commanding. Fourteen principles of management of Henri Fayol include division of work, expert, union of command, discipline, union of direction, subordination of specific interest of individual, compensation, scalar chain, central brain, equity, order, delegated authority and stability of personnel (Kast, 2002, p.28). Bureaucratic Management Theory Bureaucratic management is a formal system of organization which is regarded as the classical theory of management based on defining the levels and roles in the hierarchy in order to maintain efficiency (Morgan, 2000, p.9). Max Weber was the notable contributor towards the development of bureaucratic management theory. This theory is broadly in the management of both private and public sector industry. According to Max Weber, the bureaucratic approach to management is based on four principles which include division of labour, rules of system, impersonal relationships and hierarchical positions (Wright, 2002, p.4). Human Relations Approach In the year 1920, some experiments were designed by the Western Electric Company to calculate the optimum level of intensity which can help maximize the efficiency of productivity in a shop. This famous experiment is known as the Hawthorne experiment because this experimentation was done in Hawthorne plant (Snell, 2001, p.16). Under the classical approach, the attention was solely focused on the betterment of machines and jobs. Eventually, this focus on machines and jobs shifted in the direction of the human side of management. The founder of the human relation approach to management is George Elton Mayo. During 1927-1932, the famous Hawthorne experiment was conducted by the leader of the team Elton Maya (Bennis, 2009, p.19). Some of the theories of the human relations approach include the Hawthorne experiment, the Hierarchy of needs by Maslow and the Motivation-Hygiene Theory by Herzberg. The Hawthorne experiment The Hawthorne experiment was based on four phases, such as illumination experiments, the relay test room, the interviewing program and the bank writing observation room (Champion, 2002, p.56). There has been a rise of several criticisms of the Hawthorne experiments which are failure of the methodology and of the investigators. Nevertheless, the Hawthorne experiment has been significant towards providing additional insight about the development of management thinking and behaviour of human beings at the time of work. The research provided valuable insight about the importance of informal work groups and provided information about how managers can improve performance (McAuley, 2013, p.61). Hierarchy of Needs by Maslow The theory of human relation has been effectively expanded by Abraham Maslow. The argument of Maslow was that if managers can drive motivation by fulfilling the needs of employees, then managers should notify which needs are pivotal for increasing efficiency of the organization by motivating employees. According to Maslow, employees can perform their job effectively if their highest need of order is fulfilled. This resembles the fact that manager’s wishes to find other needs that are possessed by employees. Abraham Maslow argued (Jones and George, 2006, p.465) that there are five categories of needs which are arranged in hierarchical order. Five needs are physiological needs, security needs, and social needs, needs of self-esteem and self-actualization needs. Contemporary Examples of the classical Approach to Management The experience of Fredrick Winslow Taylor at the Midvale Steel Company led to the emergence of the theory, which is known as the scientific management theory. Taylor worked there and found out that the productivity of labour is largely inefficient (Giannantonio and Hurley-Hanson, 2011, p.87). Furthermore, Taylor started experimenting on the introduction of a new activity known as Motion Study to replace traditional rules of thumb. The backbone of the study is based on reduction of motion that can help to upsurge the productivity of an organization. Scientific Management Theory This element of theory is widely used by the organization with a leading chain of hamburger fast food restaurants in the world, the McDonalds Corporation. McDonalds serves more than 68 million customers daily. McDonalds Corporation uses a standardized process to make a burger. This process is followed by every worker. McDonalds Corporation applied the principles of scientific management theory in the business processes to establish a system of rewards that can help to attain the goals of the organization. According to Fredrick Winslow Taylor, the concept of motivation is based on introducing a system of bonus and inequitable pay for workers. McDonalds Corporation has implemented various ways to encourage employees (McDonalds, 2012, p.1). The promotion programs, competitive wage, motivation, results, dedication and hard work are noticed and rewarded at the McDonalds Corporation. The program followed by McDonalds is the philosophy of pay per performance. The pay results are based on the performance of employees. Recognition programs of McDonalds are designed to recognize and reward strong performers by providing the Circle of Excellence award and the President’s Award. Moreover, long term incentives are provided to employees to retain key and eligible employees who have shown their loyalty and perseverance towards long-term creation and sustained performance at McDonalds Corporation. McDonalds also initiate systems, such as the company car program and recognition program to increase monetary incentives (Steers, 2010, p.16). Taylor also stated that scientific training is one of the vital principles that should be implemented in the process of scientific management theory. Taylor believed that worker should be trained scientifically rather than trained passively. The strong tradition of McDonalds is to value their bottom line of the business. In New Zealand, the Qualink program is initiated by McDonalds, which is an approved National Certificate and is accepted by the New Zealand Qualifications Authority. The prime aim of the program is to extend the skills of the crew member. Administrative Management Theory and Bureaucratic Management Theory In the modern workplace, the principles and elements of administrative management can be found in several aspects, such as remnants of the history of organization to which viewpoints and alternative viewpoints are offered, or as recognized practices in some other industries. The prime example of an organization using administrative theory is the military of the United States (Farmer, 2005, p.121). The bureaucratic management theory of Max Weber is a formal system that is based on level and hierarchical roles to sustain productivity. Now-a-days, the theory of bureaucratic management can be witnessed in Police services, Army, National Foods, Olivine, etc (Magadza, 2014, p.1). One of the characteristics of the theory is job specification. The principle of job specification is utilized by one of the organizations named Olivine. When one person is packing the soap then they must now know how to make soap. The skills and knowledge of employees are to recognize the specialization of every employee and make employees work on their own domain (Lussier, 2008, p.191). Hierarchy of authority is another characteristic of bureaucracy, which is applicable in the police and the army in various countries. Each level of the organization is controlled by the level which is above this level. Hierarchy of command characteristic is also followed by the military of United States. The army division of U.S. military consists of lesser components which include brigades to battalions to squads. Each of the components of the army division promotes the structure and organization among its participants. Another characteristic of bureaucracy is the formal written record. The principle of the formal written record is followed by organizations, such as colleges, National Foods, etc. At National Foods, the resolutions and actions of administration are recorded and documented to provide stability and preserve accountability. A Contemporary Example of the human Relations Approach to Management One of the examples of organization with a human relations approach is the giant privately owned multinational computer company in America named Dell Inc. In the last decade of the 20th century, Dell Inc. grew significantly and aimed to expand their portfolio by delivering a complete solution for offering computer to customers. The main growth driver of Dell Inc. was to understand the needs of clients and go with creative and motivated employees (Vance, 2006, p.3). The idea of Dell Inc. was to sell direct and also allow customers to get their computer with their own personal requirements. This process of the human relations approach provided a better level of sense of involvement and consumer confidence. The workforce of Dell established the theory of human relation by paying attention towards the interest of workers and was more people centred. The success of the company was based on the feedback from the customers and workforce. The Tell Dell survey program initiated by Dell Inc. is continuously refined and modified. Moreover, it is also used as a diagnostic and critical analytic tool to make the workplace of the company better for employers. Hierarchy of needs by Maslow Another multinational corporation of America which focuses on internet related products and service is Google. The hierarchy of needs theory by Maslow is also incorporated by Google in their culture. Google focuses on all needs of Maslow theory to enhance the success of company. Both extrinsic and intrinsic rewards are provided by Google. According to the management of Google, the goal of the company is to strip away everything that comes in the path of employees. All physiological needs of the employees are fulfilled by Google. The company also provides an average package of benefits. Furthermore, it also provides laundry rooms, gyms, first-class dining facilities, carwashes, dry cleaning services and massage rooms in their workplace. The self-esteem and confidence of the employees can be enhanced when they find that the entire requirements are fulfilled. Google provides freedom to their employees and boost their self-confidence. The CEO of Google, Larry Page stated that it is vital for company to make employees feel valued and treat them like employees that can help to enhance the productivity of organization (Wharton, 2011, p.1). Conclusion The study of an organization can be exemplified by the classical and human relations approaches. Both approaches have had an essential role in the development of management practices and theories. In the era of rapid industrial development and economic growth, classical and human relations approach has had a vital role in the development of different techniques of production. The classical approach to management possesses rigid hierarchical structure and regards the organization as a closed structure. Furthermore, it operates in rationality along a balanced and systematic path. The human relations approach to management observes an organization as an open structure where the values and needs and people are managed to achieve the goals of organization. The influence of human relation and classical approach towards management has been enormous and acts as guidance towards development of new management theories and practices. Many big companies and organization, such as McDonalds Corporation and the United States military uses the classical approach because they need specialization and standardization to manage the company. The principles of the scientific management theory are implemented in McDonalds by scientifically training and developing employees to follow the norms and regulation of the organization. The introduction of a reward system and an award system can boost the efficiency of employees. Dell Inc. is another multinational company which focuses on the human relation approach. The need to understand the requirements of customers can lead to the expansion of the company portfolio. It is clear that in the field of management there are some pertinent and noteworthy theories which are strengthened by evidence and information. 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