Analysis of Management Theories and Philosophies - Coursework Example

Management Theories and Philosophies Name: Management Theories and Philosophies Course: Tutor: Institution; Date: Table of Contents Table of Contents 2 1.0 Introduction 3 2.0 Classical School of Thought Influence 4 2.1 Division of Labour and Specialization 5 2.2 Organizational Rules and Policies 6 2.3 Study of Time and Action 7 3.0 Human Relation Theories Influence 9 3.1 Human Motivation 9 3.2 Social Settings in Organisations 11 3.3 People orientation and Talent Management 12 4.0 Summary 14 References 16 1.0 Introduction Organisations in the current global markets have developed a series of management structures. In the case of increasing globalization effects, organisations face the threat f increased market competition with the rise of multinational and international organisations. Therefore, as Ramrattan and Szenberg (2006, p.66) argued, this has increased the overall need for organisations to develop strategic competitive edges in the market. As such, Lewis (2003, p.733) argued that the global market has established an optimum in the level of competitiveness acquired through tangible organizational efforts such as economies of scale and financial stability and base merits. Thus, based on this argument, Schoemaker and Jonker (2005, p.508) stated that in the recent past, organisations have developed an approach in intangible assets in the organisations. As such, the organisations have resulted to the application and use of their management structures, skills and approaches as well as the human resource practices and culture to establish sustainable market competitive edges in the global industries. In the process of establishing these strategic edges, the current global organisations have resulted to the application of the various management and human management principles namely the classical management and the human relations practices and principles of management. This evaluation seeks to establish the various practices and management aspects in the modern organizational contexts and practices that reflect the direct inclusion and application of the two management aspects in HR management and control as well as development. 2.0 Classical School of Thought Influence The classical approach was developed under a various theoretical orientations in the traditional business development. In this regard, the school of thought developed and grew in popularity during the industrial revolution period. At this time, the development of industrial organisations and the rise of the employment practices among a majority of the organisations necessitated the development of guiding principles through which the organisations and the respective employees could be managed and controlled. Therefore, at this period a range of school of thought son management and the development of management and the control of employees such as Fredrick, Fayol and Max Weber management theories. On one hand, the Taylor developed the argument of scientific management theory under which it advocated for the application of standardized and uniform employee management practice and approaches. In addition, Fayol developed the key 14 management principles. As such, the theory argues on the key components such as division of work, team work and unity among others. Finally, under the bureaucracy theory developed by Max Webber, the classical management school of thought advocated for increased policies and organizational structures development as well as hierarchy development as an approach of enhancing management success as well as employee control. Although a majority of the theories in the management context have encountered various changes with the eventual discarding of others, there are a relatively high number of the practices and theoretical principles applied in modern day organisations as discussed below. 2.1 Division of Labour and Specialization One of the fundamental pillars of the classical management school of thought was the development of division of labour and specialization practices in organisations. Traditionally, as Dew (2012, p.43) argued, individuals in the market were involved in the development of products at all stages. However, increased production needs and the industrial revolution that led to mass production and demand increment, led to the necessity for labour division. As such, the proponents of the classical approach argued on the need to divide the production process into various stages through which respective individuals would concentrate on offering their services in key among the stages. This concept has transcended onto the current organizational management practices. In this regard as Knopov and Sergienko (2011, p.837) argued, the approach has led to the emergence of various industrial sectors as well as stakeholders in the current organizational management and global market platform. On one hand, the development of various distinct functions organizations in the current global market serves as an indication of the process. In this case, most of the organisations have functions such as the HR, finance, production and public relations among others. As such, each of the functions is tasked with unique functions and responsibilities in the execution of the respective organizational mandates and responsibilities as stipulated in their mission statements. Moreover, the emergence of the outsourcing concept in the modern market operations serves as a development of the classical approach. As Young (2005, p.27) in an evaluation of the Australian health sector discussed the current global management operations are characterized with increased outsourcing of both goods and services across the industries. As such, this practice allows for the ultimate development of specialization practices in the market. This can be evidenced by case studies of the global multinational organisations such Samsung that has sought to outsource its legal services from external service provides in the global market such as in the famous legal suit between the organization and the Apple Inc. Company on patent rights violations (Eichenwald, 2014). This is the ultimate direct impact and application of the classical management theories perception in the current situation. 2.2 Organizational Rules and Policies Max Webber developed the bureaucracy theory of management. In this argument, the theory argued on the need to develop strict and clear structures and hierarchy outlines in the market. In this case, the theory illustrated on the need and role of the regulations in managing the organizational workforce (Vithessonthi and Thoumrungroje, 2011, p.196). This was especially so upon the development of industries where organisations were required to manage and guide the employees in their task accomplishment. In this regard, the theory argued that in order to facilitate and reduce on the nature and extent of employee confusion. It was imperative to develop clear guideline that regulated the operations of such a workforce. Through this approach, the theory ensured that the respective employees in the market received clear communication guidelines that stimulated increased workforce coordination and the overall productivity levels. This practice has gained increased application in the current and modern organisations management systems. In this case, as Ulrich and Brockbank (2005) stated, the application of the practice can be evidenced in the development of employee value proposition programs. In this case, the EVP programs can be defined as the practices and systems through which organizations develop and establish their desired mandates and responsibilities in the market. In this regard, the EVP programs as indicated in the EVP principle theory has an average of 38 elements that different employees perceive as their motivation and are subsequently implemented and incorporate in organizational programs as part of their HR management systems. Moreover, organisations have developed functional management systems through which they administer and execute the overall mandate and adjudicate responsibilities and functions to the respective employees. Finally, the application and most visible application of Webbers classical theory are evident under strategic management principles applied in modern day organisations. In this case, the strategic management approach has respective aspects such as planning, execution and control. In this case, the planning aspect consists of the actual polices and strategies development (Meier and Nicholson-Crotty, 2006, p.853). In this regard, the process is fundamentally characterized by the laying down of organizational policies and strategies in the market. In this case, the establishment of the policies serves two critical management applications. On one hand, just as in the contexts of Webber’s Bureaucracy theory, they guide the operations of the respective organizational managers as well as the HR involved. However, the practice has an additional modern application. In this regard, the set goals and objectives as well as organizational policies serve as an evaluation benchmark. Therefore, the policies are used to evaluate if the actual organizational operations and practices meet the expectations thus enabling the development of relevant proactive and relevant policies and systems to correct the organizational vices. 2.3 Study of Time and Action One of the modern practices in modern organisations is the application of technology in a majority of the operations. In this regard, most of the current systems as Lusthaus (2002, p.5) argued are geared towards the development and establishment of the relevant systems and practices in which the overall prices efficiency is improved. This was the fundamental principle behind the development of the Fayol’s 14 management principles. In this regard, the theory was based on approach of ensuring that there is proper management of the organizational resources through strategic approaches to reduce wastage while increasing the overall outcomes and productivity. The application of this practice can be evidenced in current organizational planning and strategy management systems. In this regard, the development of strategies in organisations is based on the development of practices and aspects in which the existing resources are shared. For instance, through proper budgeting and planning in the organisations, there is the increased ability by various departments to share resources and facilities in organisations (Cetkovic, 2006, p.264). Therefore, this insulates and shields the organisations form the need to develop and buy the appropriate infrastructure, a practice that would if unimplemented lead to increased overall high organizational production costs. Global industry giants such as Virgin Group that owns a series of companies under it such as the Virgin Airways has applied the concept of time conservation through a strategic approach in which most of its services are offered online to enhance increased operational efficiency and time reduction in the market (“Virgin Australia Airlines”, 2014). Therefore, based on the above reviews, it is apparent that the application of classical theories principles, though partially, has an implication on the overall improved organizational management and HR handling in the modern day organisations. 3.0 Human Relation Theories Influence The human relation theories emerged as a development of the classical theories of management. In this regard, the approach through the Hawthorne studies by Elton Mayo as well as the recommendations and criticism on the classical management approach by Mary Follet, sought to counter the task related approach by the system (Jex and Britt, 2008, p.43). In this regard, the classical theory sought to develop and improve on the overall system through a task orientation approach. However, the human relations theorists argued that through increased human orientation management, the overall gains on productivity would be stimulated. The implications and application of the theorist’s recommendations transcend to modern day organisations. This evaluation offers a practical review of the extent and approaches in which the various organizational practices are applied. 3.1 Human Motivation One of the practices advocated for in the human relations theories is employees’ motivation. In this regard, the arguments developed a rationale for motivating employees. In particular the focus was on the relationship between employees’ motivation and the overall success rates in organizational productivity. Landy and Conte (2010, p.21) argued that this was fundamentally demonstrated through the Western Lighting Company experiments conducted by Elton. In this regard, the organization funded reviews to evaluate on the factors and approaches through which their overall employee motivation programs. In this regard, the studies established a series of relationships between employee motivation and success. For instance a review of lighting at work demonstrated on the role of proper working conditions to increased performance s well as the studies on breaks role in increasing employee productivity and the actual steadiness of the process. The application of the studies arguments is evident in a majority of the organizational set up today. In this case, most of the organisations have adopted employee empowerment programs. In this case, the employees are actively involved in the organizational strategies formulation as well as decision making. In this regard, such involvement applies the principles of motivation such as the Maslow’s theory. The theory as Ozguner and Ozguner (2014, p.213) discussed, holds that employee needs change and shift up the pyramid. Therefore, through the inclusion of employees they are motivated to deliver increased organizational productivity. An additional approach in modern organisations is the application of performance contracts as well as the piece rate payment system. In this case, the approach applies the Herzberg two factor theory that some of the employees need coercion to perform. One of the case studies of employee empowerment programs application in organisations is in Coca-cola. In this case, the organization has established a decentralized management system and as the Organizational Website (2014, “Our People) demonstrates, it has resulted to increased employee involvement in the decision making process. As such, the price rate payment system is a modern payment approach that deviates from the traditional wage rates. As such, the respective organizational employees are compensated and rewarded based on the actual deliverables they offer the organization. Moreover, the modern organisations in the global market have applied the non-financial reward system (Armstrong, 2002, p.40). This approach seeks to employ and incorporate the principles of the Maslow’s hierarchy of needs. In this regard, the principles argue that as individuals need progress, they are no longer motivated by basic financial rewards. Therefore, the approach seeks to incorporate the motivational needs of safety, social relationships, self esteem and self actualization among organizational employees respectively. 3.2 Social Settings in Organisations An additional approach through which organisations continues to apply the guiding principles of the human relation theories is through the establishment of organizational societal settings. This is based on the theoretical principles of the argument and approach as developed by the human relation theorists. In this regard, the theorists argued on the need for not only developing individual tasks, but also on the need to establish and develop relevant social systems in the market. In this regard, the approaches bas their arguments on theories such as the social model in motivation. On its part, the model argues that instead of focusing on the task appropriateness of employment positions to an organizational success, such an evaluation should be based on the role of the society in enhancing overall organizational management success (Smith, 2011). Currently, organisations have resulted to the application of job alignment approaches. This is especially through the application of the social corporate responsibility programs. CSR programs as Loi (2008, p.451) stated includes the application of a social orientation in the workplace. On the part of the organization, CSR is an approach through which the organization offers back to the society through support programs through which some of the gained profits are channelled back to the society through relevant needy societal cases in the market. On the other hand, the CSR programs serve as criteria through which organizational employees experience the social setting in their adjudication of duties. Through CSR programs, the employees participate in social activities in the support of the society. Therefore, this motivation approach increases the overall employees’ satisfaction in their jobs. Unlike in the past when employees’ participation and roles in the market was purely economic, current organisations attractiveness is based on its social aspects. Lievens, Greet and Schreurs (2005, p.556) on an empirical study on a military context evaluated the existing implication factors that enhance the attractive nature of organisations as ideal market and industry employers. In this regard, the evaluation argued that one of the key attractiveness issues in the market was its social participation and the subsequent involvement of employees in the organizational social programs. As such, organisations with high social involvement of the employees in social programs are regarded and perceived as preferred employers in the market. The adoption of this approach is based on the principles of employees’ social engagement. As such, the approach guiding principle for the current increased internal CSR programs involvement and the subsequent evident establishment of the public relations departments in most multinational organisations is on the human relations theory argument on the link between employees’ involvement in informal social settings to their overall individual and collective organizational increased productivity. 3.3 People orientation and Talent Management A final strategic approach through which organisations continue to apply the human relation theories arguments is through increased employee orientation programs. As already discussed and as Daft and Marcic (2013, p.36) argued, the human relations theories originated from the existing deficiencies in the classical school of thought. As such, the human relations school of thought was built on the fundamental need of developing organizational systems not geared towards promoting and developing tasks efficiency, but instead geared towards developing the relevant employee oriented programs. This can be evidenced through the theoretical arguments on employee motivation through content theories such as the Hygiene theory developed by Herzberg. Under the developed theory studies that initially interviewed 200 engineers and accountants but latter include manual labour workers into the sample study population, the theory concluded that there existed two motivational factors to organizational employees namely the hygiene as well as the motivational factors (Sachau, 2007, p.378). On one hand, the hygiene factor presence did not actually enhance employee motivation but their absence led to ultimate employee demotivation. On the contrary, the absence of motivator factors did not lead to employee motivation but nonetheless theory presence increased employees’ motivation. The approaches and basic principles of this theory that targets developing organizational policies that support employees serve as the guiding principles for the modern day organisations EVP programs. In this regard, the current EVP a system is based on two fronts namely the attraction factors as well as the retention factors. In this regard, of the developed 38 elements in the market, organisations evaluate the driving factor and situations that enhance and promote increased motivation of the employees. In this regard and as a review study conducted by Umashankar and Kulkarni (2002, p.46) established, modern organisations have developed key strategic talent management systems. This is based on the human relations theories argument that the HR function represents the overall and ultimate organizational vital resources. Therefore, through this argument as a guiding principle, organisations are currently developing employee training programs. As such, the strategic role of the programs is to develop the existing organizational workforce as well as create their increased satisfaction. Thus, through the increased training programs both internal and external, organisations have increased their overall employee talent management through nurturing of talents, increasing performance ratios in the market as well as subsequently reducing the overall employee turnover. This can be evidenced in the case of TNT Express Company, a leader in the mailing industry. In this regard, the organization, through its Bahrain, Saudi Arabia and Kuwait outlets developed unique EVP programs that allowed for increased organizational retention as well as increasing its employment attractiveness in the market that has a strategically forecasted expected positive growth trend into the future (Singh, 2010, p.39). Therefore, based on the above analysis it is evident that the global modern organisations continue to apply the guiding principles and operational approaches as developed by the human relations theories in the market. 4.0 Summary In summary, this literature evaluation evaluates how the classical and human relations management theories and principles are applied in the modern day organizational management set ups. On one hand, a focus on the classical management school of thought reveals that among the most dominant practices retained to date include specialization and division of labour and functions not only in organisations but also in industries as well as increased reliance on organizational planning and strategies to guide operations as well as evaluate performances as an internal benchmark. On the other hand, a human relations school of thought evaluation reveals that the modern employee motivation, talent management and social programs focus has its basis on the school of thoughts. Therefore, this literature evaluation concludes that indeed both schools of thoughts continue to have implications on modern day management approaches. References Armstrong, M., 2002, Employee reward. Chartered Inst. of Personnel and Development, London. Cetkovic, V.S. 2006, "Roles of Planning And Budgeting In Integration And Disintegration Processes", University of Zagreb, Faculty of Economics and Business, Zagreb, Jun, pp. 763. Coca-Cola Company, 2014, Our People, [Online] Available at < http://www.coca-colahellenic.com/aboutus/ourpeople>. [Accessed October 25, 2014]. Daft, R. L., & Marcic, D., 2013, Understanding management, South-Western Cengage Learning, Australia. Dew, K., 2012, The cult and science of public health: A sociological investigation, Berghahn Books, New York. 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