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Introduction to Classical Management Theories

Question:

Discuss about the The Theories Of Nineteenth And Early Twentieth Century.

The theories of Nineteenth and early Twentieth century are generally considered to be classical theories related to organizational management. During 1930s and 40s the theories were developed for progressing the human resources of the companies (Nhema, 2015). However modern organizations see studying classical management theories to be waste of time but proper research might indicate something different. The theories were developed after extensive research and analysis; though the organizational structure has changes over the years but certain elements of the structure are ever present, so do certain elements from the traditional management theories.

The scientific management theory develop by Frederick Taylor primarily focuses on the labor force controlling in order to maximize the organizational productivity (Shafritz, Ott & Jang, 2015). In his time and motion study he observed the workers and measured how much they are producing within how much time. The observation led him to believe that much of the resources are not being utilized properly and a scientific analysis is required in order to improve the outcome. The principles of the management theory included incorporating science in the organizational management, proper selection and effective training of the worker, equal division of responsibility between management and workers (Taylor, 1914). He implemented certain strategies like assembly lines, standardization and dividing labor for improving mass production. The theory proved to be effective as it reduced the labor cost, removed unnecessary work and increased profit. The efficiency and control of the labor in modern organizations can be maintained by the Taylorist management theory.

Taylorism puts financial profit of the organization as its primary aim and often ignores other issues as secondary and as a result it has been struggling to prove its relevance in the modern business word. Though most organizations in the developed countries like USA, Australia or other European countries do not practice scientific management theory at its original form but that does not mean that it has been completely rejected by all organizations in their management practice. The basic principles of this management theory are modified and with the help of other management theories often used as effective organizational strategy (Waring, 2016). . Especially in situations where the labors are not meeting the requirement the management implement this strategy.

In today’s world the management in the call centre business implements Taylorism management theory effectively. The element from the theory is utilized by the business is by monitoring constantly enhancing the work force. Here the workers work as mechanized beings and do not enjoy any creative freedom as it is not required in the field. The management leadership controls call centre employees and instructs them what exactly they need to do. The call centre business in India implements this theoretical strategy exclusively (Sinha & Gabriel, 2016). On the other hand Toyota applies the element of equal division of labor and breaking down assembly lines into stages to minimize the time wasted for waiting. The inconsistencies of the employee productivity are thus eliminated by the management authority. The time and motion management aspect is used in large organizational managements like McDonald (Babajana & Webber, 2015). In countries like China, India or Dubai management controls large number of workers who have to satisfy even larger number of customers in short period of time. Therefore the management controlled time and motion strategy has proven to be especially effective in this organization.

Scientific Management Theory

Fayol’s Management Theory is directly in contrast with Taylor’s Scientific Management theory. In 1916 he developed and published 14 principles in order to enhance the production management (Ferdous, 2016). Instead of division of workers the work here issues concerning the overall organization should be structured. The work division allows the employees to focus on certain areas that help him to improve his work skills by gaining relevant experience. The authority of the management must possess the power to give commands while keeping in mind their responsibility. The discipline holds a significant role in the management as the leadership and the employees both have to obey the organizational disciplines (Edward, 2017). The hierarchical structure must not be confusing for the employees as they should have single representative of the authority who will give them direct and clear guidance and unity of direction will lead the teams through a coordinated process. The theory insists that a single employee’s interest cannot be more important than others, not even the managers. The monitory and other kind of remuneration plays significant role in the employee efficiency. Centralization allows the employees to determine their role in the decision making process (de Oliveira et al., 2015). The management must provide a clear vision about the employee’s position in the organizational hierarchy. There should be an order in the management as the safe and clean workplace ensures the productivity and employee engagement. The equity must be maintained in all the departments among all the employees. The managers though their personal planning should ensure minimum employee turnover. The theory suggests that the employees must be provided with necessary amount of freedom and creativity. The theory mentions the principle of “Esprit de Corps” that is the organization’s promotion of unity and team spirit.

Most companies that are operating successfully in the business world of today use Fayol’s management principles in their organizations. Fayol’s management theory is used in the administration of the developed world specifically in the USA and France. Fayol developed six management functions like commercial, technical, financial, accounting, security and managerial have been modified over time in order to fit the modern business world (Fayol, 2016). In every organization the human resource and management leadership manage the employees by using certain communication method. In the contemporary business world the employees play major role in the organizational culture. A large organization like Google gives maximum importance to its employees where they are provided with not only financial remuneration but also medical benefits and family support as the organization believes that this would ensure employee efficiency in the longer run (Haider et al., 2015). The theory has experienced modification and up gradation in its applicability like the theory promotes equity and scalar chain system. The more number of companies are promoting balance in their organizational hierarchy through reducing the power of the authority and giving more strength to the employees.  

Taylorism in Modern Organizations

In the organization Hell Pizza of New Zealand the application of Fayol’s Administrative Theory can be identified (Parnell, 2013). The visibility of the scalar chain represents the authorities from inside and outside and determines the labor division present within the organizational structure. The applied scalar chain allows the authority to maintain the command unity and allows the employees to use their judgment and initiative in the organizational work flow. Any employee from a specific department can approach the authority from other department if necessary with the permission from his immediate leadership. The “Gang Plank” method allows the employees to approach to authorities before the decisions have been made (Yenen & Öztürk, 2014). The workers of the Hell Pizza are trained in specific areas that allow the work load to be divided in multiple sections (Moger, 2017). A novice employee is trained in a basic level and they are provided only half hour for specific job within the store but when they are selected for a specific area like making the pizzas, they are allowed detail training with more time. However in the festival time or in any busy day the work load is divided among all the employees inside and outside the store, where someone from the fryer department takes the orders from the customers and someone from the managerial department can deliver the orders. Fayol’s division of work load can be found highly effective in the organizations.

Since its inception the Bureaucratic management theory developed by Max Weber has influenced the western society and business greatly. Literary the bureaucracy is the authoritative practice by the authority to control the mass in the society. The evolution of the organizational management theories can be observed through the theories developed by Weber. His theory of bureaucratic centralization has greatly impacted the business organizations of twentieth century (Meisenbach & Jensen, 2017). According to him the modern capitalism’s emergence is closely connected to the modern day bureaucracy. The capitalist society needs freedom of the market, legal support, labor availability as necessary part of their existence. The predictability of the management’s judgment will ensure the industrial organization’s maximum use. Weber explained several kinds of authority style in the organizational management. In the Traditional authority the employees obey the authority’s orders out of respect for its previous existence. In the Charismatic authority the leadership’s unique personal qualities makes the rule accepted. Finally in the rational-legal authority the certain rules and procedures help the authority to achieve specific goals.

Administrative Theory

In the management practice Bureaucratic organization is closed and rigid. The administration structure in this type consists of fixed hierarchy, impersonality, continuity and expertise. The hierarchy helps the expansion of the organization. The knowledge about the management hierarchy will enable them to climb the hierarchical steps. The hierarchy of authority is significantly present in police or army. However in retail and other organizational business apply this element of the theory effectively. In the general model of the hierarchy one level is controlled by the immediate higher level. A specific position has certain job responsibility and its own right. Each level of the hierarchy has definite set of responsibilities and competence sphere. The technical competence becomes key driver in defining the key responsibility of a level. However there are certain weaknesses as well like the theory does not encourage the employees to take active participation in the decision making process. The clear classification of the authority and its command runs the organizational activity successfully (Lund, 2014). The leadership management possesses maximum control over the strategic decisions. Few top level persons are involved in the decision making so the strategy designing and implementing takes less time. The Bureaucratic management theory puts a lot of stress on specialization. The tasks are defined and divided in parts for individuals. Specialization allows the employees to fulfill individual duties effectively.

Most companies today follow the principles of Weber management theory such as clearly defining jobs for the people associated with the organization, maintaining definite authority, following a standardized procedure by everyone, keeping the record meticulously and hiring employees based on the specific qualifications required for the position. The division of labor is already been discussed in the Taylorism which is adopted here by Weber. In any organizations the definite written rules are being followed by every employee and the managers as well. The records help the company to determine the employee performance and the records help the employees to identify their weaknesses and company can come up with solutions. The impersonality is important for the organizations which promotes the value of the position not the person. Any organization is run by a strong leader however if the leader is being replaced or dies another person with equal credibility will appointed in the role to run the business. Microsoft is a company that practices the bureaucracy in its organizational structure (Daft, 2015). Windows is a large software developing company where thousands of developers are working. Therefore the hierarchical structure follows like the feature crew to team to major team to the vice president. At every level the teams are provided with individual distinct source codes. Final change in the management is decided by the top leadership.

Fayol's Management Theory

Conclusion

From Taylorism to Fayolism to the management theory by Weber the business has experienced various transformations in the theoretical world of the organization’s management practice. Not all elements from the theories are applied by modern companies in their organizational practice but the management theories have not lost its relevance entirely. Certain elements still have significant relevance in company’s management practice. The elements from the theory by Taylor are contradicted by Fayol but elements from both of the theories can be found in Weber. The synthesis of the elements also demonstrates the evolution of the management theories in the western business world. The evolution also represents a journey through which modern organizations find the relevance of the theories in their organizational performance.

References

Babajana, Z., & Webber, A. (2015). Organisational Behaviour.

Daft, R. L. (2015). Organization theory and design. Cengage learning.

de Oliveira, J., Escrivao Filho, E., Nagano, M. S., & Ferraudo, A. S. (2015). Managerial styles of small business owners: a study based on the organizational life cycle and on concepts concerning managers' functions and roles. Revista Brasileira de Gestão de Negócios, 17(57), 1279.

Edward, R. (2017). An Elaboration of the Administrative Theory of the 14 Principles of Management by Henri Fayol.

Fayol, H. (2016). General and industrial management. Ravenio Books.

Ferdous, J. (2016). Organization Theories: From Classical Perspective. International Journal of Business, Economics and Law, 9(2), 1-6.

Haider, M., Aamir, A., Hamid, A. A., & Hashim, M. (2015). A literature Analysis on the Importance of Non-Financial Rewards for Employees' Job Satisfaction. Abasyn Journal of Social Sciences, 8(2), 341-354.

Lund, C. (2014). Tradition As A Modern Strategy-A methodological note on the study of power, rationality, authority and legitimacy for the analysis of the land tenure reform in Niger. Occasional Paper, (10), 199-228.

Meisenbach, R. J., & Jensen, P. R. (2017). Bureaucratic Theory. The International Encyclopedia of Organizational Communication.

Moger, L. (2017). Hell Pizza supporting youth to transition into workforce. Stuff. Retrieved 20 September 2017, from https://www.stuff.co.nz/auckland/local-news/north-shore-times/95384154/hell-pizza-supporting-youth-to-transition-into-workforce

Nhema, A. G. (2015). Relevance of classical management theories to modern public administration: A review. Journal of Public Administration and Governance, 5(3), 165-179.

Parnell, J. A. (2013). Strategic management. Sage.

Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2015). Classics of organization theory. Cengage Learning.

Sinha, S., & Gabriel, Y. (2016). 5 Call Centre Work: Taylorism with a Facelift. Re-Tayloring Management: Scientific Management a Century On, 87.

Taylor, F. W. (1914). The principles of scientific management. Harper.

Waring, S. P. (2016). Taylorism transformed: Scientific management theory since 1945. UNC Press Books.

Yenen, V. Z., & Öztürk, M. H. (2014). The Effects of Organizational Communication on Organizational Commitment and an Application. Australian Journal of Business and Management Research, 4(3), 9.

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