Theories of Management — UU-MBA712 — Develop an Essay

Kelvins Eghosa A.
Nov 2 · 12 min read

This paper is aimed at carefully revealing “the influence of classical and human relations approaches in management today”.

[MY MBA UNICAF JOURNEY]

Harold Koontz (1988) defines management as “…the art of getting things done through and with people in formally organized groups.”.

From Harold’s definition, we can embrace Management as a phenomenon which involves planning, organizing, staffing, leading and controlling available resources to accomplish the goal or target of an organization (Wikipedia.org, 2016). Often, it is ascribed to business environments alone, but this is not the complete picture. The ethics of management are also applicable to environments outside business such as Religion places, Educational, Non-Governmental Organisations (NGOs) etc. If the task requires evenly allocation and utilization of resources then it requires management ethics and principles.

In examining some classical approaches to management, most of which actually enjoyed a high stake of attention during the Industrial revolution. We must be aware that the focus was on efficiency and general productivity employees and also their contribution to the bottom line (Parker and Ritson, 2005). There are major theories that amplified the classical approaches to management. These are the Taylor’s theory of Scientific Management, Fayol’s Administrative theory and the Weber’s theory of Bureaucracy.

Let’s look at each of these theories and discuss how they have contributed to sharpening human relations approaches in management today. Frederick Winslow Taylor, an early pioneer of management theory and widely known as the founder of scientific management, describe the term as the application of scientific methods to the management of workers and processes. His principle encourage the need to find the best approach of implementing a task or getting a job done. Before Frederick’s Scientific management theory, jobs were implemented by skilled craftsmen who have mastered the job over a long period of time. As they have become masters of the job, they easily took decisions with respect to their jobs without putting into deep consideration, the goals of the organizational. The autonomy enjoyed by these skilled craftsmen led to a lot of poor productivity and ineffectiveness from the bottom line of the establishment, aside the highly expensive and time demanding in the used of skilled craftsmen (ICMBA, 2010).

In apply this scientific method, it does require the efficiency of workers and this led to the review of the skilled craftsmen, the review further broke down skilled crafts into smaller and easier bits and processes in a way that it could easily be understood and learned by unskilled workers. It broke down a task into steps and sequences that is expected to be adhered to by a worker to achieve his given task. The purpose was to increase efficiency of workers which will affect positively, the bottom line of the organization.

Workers were also concerned about their efficiency and productivity (Soldering); Taylor believes workers were of the opinion that if they increase their efficiency and productivity, it would become the standard and fewer of them will be needed thus leading to elimination of jobs. Lack of incentives with respect to wages also influenced low productivity, workers are paid equal amount irrespective of their productivity. This has made them to relax in their duties and give an impression to their employer that they are working at their best. The reliance of the workers on the rule of thumb methods rather than the optimization of their processes can be determined by scientific methods.

Further on Taylor’s Scientific theory, several experiments to resolve the issue of low productivity were conducted (by Taylor), he called the experiments “Time Studies” and they involve the use of a stop watch to measure the time it takes for a worker to carry out a sequence of motions in other to complete a job. This was to ascertain the best approach towards a job.

The outcomes of these “Time Studies” experiments led to the discovering of four (4) principles; (i) Replacement of Rule of thumb with scientific methods: Rule of thumb is a method of procedure that is based on experience and common sense, this principle which is fondly known to be estimably correct and not scientifically accurate (Merriam-Webster, 2016). A rule of thumb on a particular subject could be influenced by someone’s judgment and opinion and so therefore cannot be regarded as a standard. A scientifically proven principle could be regarded as a standard which has been subject to public scrutiny and accepted by the public as a norm. (ii) Proper acquisition of Workers: This entails the selection of workers that are fit for the job, workers that possesses the needed skills and are willing to find betters ways to improving their skills through training courses etc. Employers should make sure proper selection, training and development of workers rather than permitting the workers to train themselves. (iii) Employers should have a structure in place that promotes a healthy relationship with workers or employees. This will further ensure that workers adhere to the scientific methods that have been developed. (iv) Division of work between the managers and workers. Managers should apply scientific methods to planning while workers should be responsible for carrying out the task.

Taylor’s Scientific management principles are also evidence in manufacturing and factories. The assembly line in car manufacturing is a perfect example of its application. Henry Ford of Ford Motors ultimate aim was to produce cars for the masses that will be cost effective on the part of the company and affordable to the masses. He deployed Taylor’s Scientific management principles which reviewed the work flow at the factory to increase efficiency and productivity. This review involves the stationary of labourers at their respective points and allowing the larger part of the car body moving from one labourer point to the order. There is a time sequence of which the part of the car moves from one point to the other. The Labourers are expected to carry out their respective tasks which involve fixing the smaller parts of the cars into the larger body e.t.c.

Henry Ford continued to review and streamline the processes to further minimized the Turnaround Time (TAT) for producing a car. He continued this until 1913 when he was able to introduce a power driven assembly line in his new factory at Michigan (Salor Foundation, No date). Between 1908 and 1913 Ford Motors was practically able to minimized and reduce the average time of manufacturing a car to 93 minutes and by 1914, they had capitalized about 48% of the automobile industry.

The idea of the assembly line not only led to cost savings but facilitated mass production of Model T cars; Ford Motors most successful car model. These cars were also available for consumers at affordable rates. The concept of the assembly which was also as a result of Ford Motor’s application of scientific management is still important and applicable in the automobile industry and other manufacturing industries such as Fast and Consumer Moving Goods (FCMG) etc. (Saylor Foundation, No date).

Let’s consider the second management theory, which is from Henri Fayol, a french Engineer who is often referred to as the father of modern management. As an employee at Chamberbault, a French mining company. Henri Fayol was more worried about the administrative principles of management. Administrative principles entails putting a management structure in place to manage the activities and resources of an organization.

As an highly recognized contribution to management thought, his three fold contributions are; A belief that organizational and business life is a combination of six activities. These activities are technical, commercial, financial, security,

accounting and management. These activities are different spheres that make up an organization.

Secondly, Fayol identified five (5) key functions that make up managerial activity. These functions are forecasting and planning, organizing, coordination, command and control of available resources to achieve a given objective. These functions are basically what define management.

Lastly, Fayol also advocated fourteen (14) principles that will lead a manager in carrying out his managerial functions. These fourteen (14) principles are very important in the life of every organization. They are;

i. Division of Work: Work should be broken down into smaller units and assigned as task to responsible workers.

ii. Authority: This is the jurisdiction and responsibility given to a manager. It gives them the right to give orders

iii. Discipline: This is a mark of respect which is as a result of the formal and informal agreements between employees and employers

iv. Unity of Command: A subordinate should report to only one supervisor or superior

v. Unity of Direction: One supervisor to a team with a clear and common objectives

vi. Subordination of individual interest to the general interest: The general interest of the group should supersede individual interest

vii. Remuneration: Salaries and wages should be equal to work done. It should be fair to employees and employer

viii. Centralization: This depends on the size of the organisations. This is necessary for effective coordination of allocation of resources

ix. Scalar Chain: The line of authority from top to bottom

x. Order: Evenly distribution and allocation of resources

xi. Equity: Fairness and justice between the employer and employees

xii. Stability of tenure of personnel: Employees should be allowed time to settle in their jobs and also provided with the right tools to work effectively and efficiently

xiii. Initiative: Employees should be encouraged to display their creativity within their jurisdictions

xiv. Espirit de Corps: Team work should be encouraged. (Parker and Ritson, 2005)

The three fold combination of Henri Fayol is relevant in contemporary management; this is very noticeable in structured organisations such as financial institutions. A bank is made up of various departments such as Treasury, E-business, Central operations, Risk Management etc. It is made up of various levels of management such as Executive management which includes the executive directors; senior management which involves the various heads of departments, group and directorate heads; units heads who are responsible for managing and coordinating the task and processes of their subordinates. The reporting line is described below;

Officers — Unit heads — Senior management- Executive management.

Tasks and processes in a bank are sensitive and pass through lots of controls to avert fraud. The fourteen (14) principles attributed to Henry Fayol are applied such that every staff is guided and acts within their jurisdiction. Acting contrarily to the principles could result to internal fraud. This is because the controls put in place to checkmate decisions and processes where not adhered to.

Henry Fayol’s administrative principle of management is strictly to guide an organization along the road to success in achieving its set goals and objectives in an efficient and effective order.

Another management theorist Max Weber, a German theorist and sociologist who supported Henri Fayol’s Administrative principle. He sees management of an organization to be on an impersonal and rational affair. His theory was as result of the patterns organisations in Europe operated in the 18th century. They operated as a personal and family like business, employee loyalty was to a single individual. This impacted decision making as employers tend to make decisions based on sentiments and personal reasons.

Max Weber believes an organization that is built on rational authority would be more productive and adaptable to changes especially in a dynamic environment. Employee acquisition and development will be based on competence and technical qualification (Abhijith, R, 2011).

A bureaucratic organization is built on rules and regulations which are binding on all employees and most importantly hierarchy (i.e scalar chain). Managers will depend not on personality for giving out orders but on legal power invested in managerial position.

Bureaucracy has its shortcomings with its endless rules and levels of authority but has been a standard way of checkmating and dealing with employees.

Even government institutions are bureaucratic; there is a hierarchy that must be strictly followed from the director general to the lower staff. It is not based on the technical knowhow of workers but on the level of authority.

There are also drawbacks and limitations of Classical management which projects the efficiency and increased productivity of workers and processes, these are;

1. Well-being of Workers: The welfare of workers was not put into consideration by classical management principles. It has more focus increased output of the employees. This is evidence as irrational on the part the employers as being concerned with productivity and not wellbeing of workers

2. Non-Financial Reward: Rewarding workers with increase wages or salaries might not considered to be the best form of motivation. Other incentives such as recognition of workers contribution, provision of free medical care etc are non-financial ways of rewarding workers.

3. Social Interaction: Communal communications among workers through team bonding exercises etc. are ways to promote a healthy relationship among employees. (ICMBA, 2010)

The above shortcomings and draw backs led to the institution of the Human approach to management.

The other approach is of Elton Mayo, who pioneered human approach management in the 1930‟s at the Hawthorne plant in the United States of America. He is attributed with the notion that if Employers care more about their employees, it will go a long way to motivate them. This will have a positive impact on productivity which will eventually lead to increase in profitability.

Elton further proceeded to demonstrate that when employers develop interest in their employees, the employees have a feeling of been valued and empowered. They start having a sense of ownership to the organization.

Several organisations have shortcomings in this approach especially small business enterprises. The multinational organisations in Nigeria such as Shell, Chevron, Nestle, GSK have a well-defined and favourable welfare policy that put into consideration the health and well-being of their employees. They emphasize

on healthy living, safety precautions etc. Nestle allows their employees to have free lunch, GSK do same too. There is free medical care to an extent for employees. These are just some social factors that employers can build into their company policies to motivate employees which will definitely stimulate increase in productivity. One of Nigeria Apex banks offers free crèche/day care for their staffs that are just returning from maternity leave and are nursing their babies. The period for this free service is within one year. Also, the Government of Lagos in Nigeria has increased the Maternity leave for women from three months to six months and have granted also ten paternity leave days for the men.

These examples cited above are measures implemented by employers to motivate their employees.

The next management theory to examine is Abraham Maslow’s theory. It is the theory that emphasizes on the Hierarchy of Needs and often represented in the form of a pyramid.

[ Image captured from Wikipedia ]

The hierarchies are in five steps, from the bottom; Physiological, Safety, Love/Belonging, Esteem, Self-actualization. In explaining the Physiological, Maslow explained it includes the survival of the human body, what the body needs to survive. These include food, shelter, water, air etc. This step or level of the pyramid is very essential because if an employee fails at this level, it will be disastrous. This could attribute to reasons some organisations offer free lunch. This level must be accomplished first, so as to enable the employee think properly and concentrate on the job.

The next level on the pyramid is Safety. The security of life is very paramount in all spheres. An employee will be much concerned over his security and that of his family. Absence of this will be a strong de-motivating factor to an employee.

Next on the pyramid is Love/Belonging. Our current World peer group/ age grade system or learning communities or circle of influence present employees a sense of belonging. It gives them opportunities to express experiences and seek solutions to their personal challenges. A problem shared is a problem half solved, they say.

Before the last of the pyramid, we have Esteem: Self-esteem and Self-respect of employees build confidence in them. They feel motivated. Low self-esteem and self-respect could result to psychological imbalances and depression of employees.

Finally, on the apex of the pyramid is Self-Actualization: This is the phase that an employee could say he has discovered himself. At this stage, all other needs on the pyramid that we have discussed have been taken care of or addressed. With these, the employee will be able to accomplish whatever he can, within his utmost capacity (Wikipedia, No date)

A typical Executive Director in an Apex bank in Nigeria is entitled to a Mortgage, two drivers, two cars, Family vacation ones in a year, residential security, Gasoline supply at residents for power etc. The organisations have practically taken care of every need of the Executive director, leaving the employee to concentrate on the work and achieve the set objectives.

The human approach to management is psychological and therefore demands the ability to influence the behaviour of employees to do the right thing in other to increase productivity. Employees are humans and not machines or processes that need to be streamlined to increase productivity.

The well-being, social interactions, individual accomplishments and career paths have to be considered when planning and structuring an organization. An employee’s growth should be directly proportional to the growth of the organization. The employer should be able to support its employees in training and development, health care and other social and personal conditions e.t.c.

Conclusively, we can agree that classical management which evaluates the need to increase efficiency and productivity, is still very essential in contemporary management; human management. It requires the employer to carefully pay attention to its employees as a major criteria for maximum productivity and results in an organization.

References

Abhijith, R. (2011). “Classical Approach of Management”. Retrieved from: http://www.slideshare.net/abhijithapsr/classical-approach-of-management

Businessdictionary.com (2016). “Management”. Retrieved from: http://www.businessdictionary.com/definition/management.html

Internet Center for Management and Business Administration.Inc — ICMBA (2010).Federick Taylor and Scientific Management”. Retrieved from: http://www.netmba.com/mgmt/scientific/

Harold K., (1988). “Management; Study Guide”. Published by McGraw-Hill Education — Europe.

Merriam-Webster (2016). “Rule of Thumb”. Retrieved from: http://www.merriam- webster.com/dictionary/rule%20of%20thumb

Parker, L and Ritson, P. (2005). Revisiting Fayol: Anticipating Contemporary Management‟, British Journal of Management, Vol. 16, 175–194 (2005), pp. 3. University of Southwales Vle [Online]. Retrieved from: www.vle.southwales-online.com

Saylor Foundation (2013 ). “Scientific Management Theory and Ford Motor Company”. Retrieved from: http://www.saylor.org/site/wp-content/uploads/2013/08/Saylor.orgs-Scientific-Management-Theory-and-the-Ford-Motor- Company.pdf

Saylor Foundation (2013). “Historical and Contemporary Management”. Retrieved from: www.saylor.org/bus208#2.1

Kelvins Eghosa A.

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Technology Business Consultant & Software Engineer

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