Early Management Theorists and Their Effectiveness in Improving Organizational Performance - Coursework Example

Critical essay: Management theories Name: Tutor: Course: Date: Introduction The aim of this essay is to explore the concepts of early management theorists and their effectiveness in improving organizational performance. The essay considers the works of Taylor in scientific management, Henry Fayol, Mary Parker Follet and Donald McGregor’s Theory X and Y assumptions. In each management theory, one organization was examined to find out their application of the various management theories. Considering that leadership and management are now indispensable in modern organizations, theories and principles of management have helped organizations to resolve workforce issues, increase productivity and improve ways that management use to solve organizational problems. Organizations apply specific management and leadership styles to create a competitive edge and employee productivity. Taylor theory of scientific management Taylor argued that workers in a firm were motivated by pay hence require closer control and supervision because they do not enjoy work. According to Bell and Martin (2012), Taylor observed that managers should break down work into smaller tasks and workers be given suitable training and tools for efficient task completion. When workers are paid based on a number of items they produce based on the time-piece-rate pay, they maximize their productivity and get encouraged to work hard. On decision making, the approach by Taylor closely related to autocratic management where managers give orders to employees and take all the decisions (McNamara, 2012). Moreover, it also mirrored theory X of McGregor that workers avoid responsibility and are lazy. On the contrary, workers perceived Taylor’s approach as boring and repetitive and as firms could lay off workers during high productivity, increased industrial action, and strikes led to more dissatisfied workers (Rahman, 2012). The firm also faces low levels of employee motivation and high levels of absenteeism and labor turnover. Despite that, most firms began to adopt this method because it lowered unit costs and increased productivity levels. For example, at Bethlehem Steel Company the compensation per ton of iron ore loaded was 3.2 cents while, at Pittsburgh steel plant, it was 4.9 cents (Ghuman, 2010). Besides, Pittsburgh workers were consulted individually, and their value to the firm reinforced. More workers deserted the Bethlehem plant for Pittsburgh. By sharing the gains with the workforce, Pittsburgh steel plant made more profits and eliminated the fear of redundancies that engulf workers. The theory of scientific management helped workers to develop in their professions through training and development. Scientific management has helped the firm to increase payment systems, working conditions, and job design. Henry Fayol management theory The management theory of Henry Fayol, today, is regarded as relevant in productive staff management. Based on fourteen principles, firms can plan, organize, command, coordinate and control the work of employees. Henry Fayol argues that employees are becoming increasingly efficient and skilled increasing their output because they are specialized (Bell & Martin, 2012). The theory recognizes that any authority comes with responsibility hence; managers need to possess the authority to command and give orders. Organizations need to uphold discipline using various methods and employees should be under one direct supervisor for teams with similar objectives (Kramer, 2010). All employees need to have one common goal, and that is to pursue interests of the organization rather than personal. Moreover, the morale of workers should be boosted through equitable path and fair financial and non-financial compensations. The United States military is one organization using the principles of Henry Fayol to manage better troops. In the military, power and authority are concentrated at upper levels of leadership with clear scalar or command chain (Kramer, 2010). The creation of order in the units and commands has resulted in greater coordination and control of uniformed personnel and civilian workers of US Marines serving in the bases of the Middle East and Europe. Esprit de corps also applies to the US military where soldiers have a sense of unity and team spirit to increase the efficiency and morale. By adopting the principles of Henry Fayol, US military stands as one of the most reputed organizations in the world. Follett management theory Follett was one of the founders of behaviorism movement in the theory of management who introduced human relations into industrial management and ideas in human psychology. In contrast to scientific management, Kuznetsova (2013) observes that Follett advocated for human relations between workers and management through better leadership and management. Although most of the Follett’s work was neglected by evolving management theories, Peter Drucker considers the theorist as the ‘prophet of management’. A win-win situation arises from conflict resolution through integration where needs of all parties are resolved. Follett believed in sharing power with someone and not having power over someone meaning that genuine power is coactive and not coercive. Regarding leadership, instead of expressing personal power, true leaders create power. Leaders empower teams to function instead of exerting power over them (Kuznetsova, 2013). Being a critic of the hierarchical organization, Follett supported integrated and democratic forms of management. Apple Corporation is one organization applying Follett’s theory of management. Under Steve Jobs, the company made greater strides in power sharing, conflict resolution and negotiation though it exploited coercive power (Looper, 2014). When Tim Cook took over as Chief Executive, the company launched Apple Maps, which did not go well in the market. However, by emphasizing on negotiation, the leader has improved conditions in factories overseas by building relationships and forging partnerships. Using Follett’s management theory has helped Tim Cook to maintain Apple at the helm of technological innovation. Moreover, the leader is accountable and sets an example for others to follow. By doing so, the organization meets objectives through cooperation, people governing themselves and management by objectives. McGregor theory X and theory Y McGregor formulated two models with a list of assumptions under theory X and theory Y. Under Theory X assumptions, Mohamed and Nor (2013) note that average humans inherently disliked work and would avoid when they can. Most people need control and threats to work hard because they dislike work and like to be directed because they desire security and dislike responsibility. Organizations use tight controls and punishments to create harmony at work. However, a man needs higher order motivation and opportunities for self-fulfillment not just financial rewards at work. Managers of theory X do not provide staff with opportunities to behave in an expected fashion (Mohamed & Nor, 2013). Theory Y assumptions consider that mental and physical effort is natural and that punishment and control need to be used to commit workers to the aims of the organization (Stoner et al. 2003). Commitment to the organization results from job satisfaction. Under proper conditions, the average man not only accepts but seeks responsibility. Moreover, Stoner et al. (2003) notes that a large number of employees can solve work problems through creativity, ingenuity, and imagination. Intellectual potentialities, given the modern industrial life, of an average man, are utilized partially. If treated as valued and responsible employees, staff will make greater contributions to their organization. British Petroleum (BP) is one company that uses a mix of autocratic and democratic leadership. Theory X applies when handling issues regarding health and safety, adhering to minimum regulations for working at height, working safely, manual handling and assessing risks (Khan, 2011). These are hazards that must apply to all offshore workers equally. On the other hand, Theory Y or democratic management applies when employee opinions are required before any decisions are reached. The matters that can be resolved through consultation and discussion such as shutting down a piece of oil rig may require a bottom-up approach (McNamara, 2012). In applying Theory Y assumptions, the oil and gas engineer may have knowledge of shutting down the equipment but requires the input of others to assess potential risks of the shutdown. Information, in this situation, passes the hierarchy to assist in decision making. Conclusion The essay has found that specific theories of management have been applied by certain organizations to engage employees and improve productivity. Pittsburgh steel company uses the Taylor’s scientific management theory to lower unit costs and increase productivity levels. US military has been engaging some of the principles of Henry Fayol to advance a strong army and system in the globe. Apple has been applying the Follet’s Human relations theory to that emphasizes on negotiation to improve conditions in factories overseas by building relationships and forging partnerships. British Petroleum (BP) is one company that uses a mix of Theory X and Theory Y to ensure that workers adhere to the laid down safety and health regulations while at the same time requesting bottom up opinions from workers. Therefore, management theories are applied by different organizations to suit their operations and levels of profitability. Hence, the concepts of early management theorists are still being used to improve effectively the performance of modern organizations. Reference list Bell, RL & Martin, JS 2012, The Relevance of Scientific Management and Equity Theory in Everyday Managerial Communication Situations, Journal of Management Policy and Practice, vol. 13, no. 3, pp. 106-113. Ghuman, K 2010, Management: Concepts, practices and cases, Tata McGraw-Hill Education. Khan, S 2011, BP leadership and the line between determination and obsession, https://leaderswedeserve.wordpress.com/2011/03/24/bp-leadership-and-the-line- between-determination-and-obsession/ Kramer, DK 2010, Management theoretician Henri Fayol’s 14 principles discussed, wordpress.com. 21st January, 2010. https://davidkramer.wordpress.com/2010/01/21/management-thinker-henri-fayol-14- principles-discussed/ Kuznetsova, NV 2013, Mary Parker Follett - The Prophet of Management, Middle-East Journal of Scientific Research, Vol. 17, no. 11, pp. 1555-1559. Looper, C 2014, Apple CEO Tim Cook leadership style: Better, worse, or just different than Steve Jobs? tech times,http://www.techtimes.com/articles/15381/20140911/tim-cook-better-worse- different.htm. McNamara, C 2012, Historical and contemporary theories of management, http://managementhelp.org/management/theories.htm Mohamed, RK & Nor, CS 2013, The Relationship between McGregor's X-Y Theory Management Style and Fulfillment of Psychological Contract: A Literature Review, International Journal of Academic Research in Business and Social Sciences, Vol. 3, no. 3, pp. 715-719. Rahman, MH 2012, Henry Fayol and Frederick Winslow Taylor’s Contribution to Management Thought: An Overview, Journal of Advanced Research, Vol. 1, no. 2, pp. 32-40. Stoner, JA Freeman, RE & Daniel, R 2003, Management, New Delhi: Prentice-Hall of India, Sixth Edition. Read More