UNIVERSITY OF SOUTH WALES

BUSINESS SCHOOL

MANAGEMENT THEORIES AND PHILOSOPHIES (BS4S02)

MBA

LECTURER: Achilleas Karayiannis

ASSESSMENT - 1

Name Enrolment

Tafadzwa Muza R1502D658467

WORD COUNT: 3297

Contents

INTRODUCTION ......................................................................................................... 3

CLASSICAL MANAGEMENT THEORIES OVERVIEW ............................................. 3

The Scientific Management Theory............................................................................ 4

The Bureaucratic Management Theory ...................................................................... 5

The Administrative Management Theory ................................................................... 6

NEO-CLASSICAL MANAGEMENT SCHOOL OVERVIEW ....................................... 7

The Human Relations Management Theory ............................................................... 7

CONTEMPORARY APPLICATION OF CLASSICAL AND HUMAN RELATIONS

MANAGEMENT THEORIES ....................................................................................... 8
Scientific Management at McDonald’s ...................................................................... 8

Bureaucratic Management in the American Police Forces ......................................... 9

Administrative Management in the present day. ...................................................... 10

Human Relations Management at Google Inc. ......................................................... 11

CONCLUSION .......................................................................................................... 12

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 TABLE OF FIGURES

Table 1 Features of Classical and Neo-Classical Theories. Sourced from Sarker,

Rafiul and Khan (2013) ............................................................ Error! Bookmark not defined.

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 INTRODUCTION

It is pertinent to introduce the concept of “management theory” in the context of

organisations by defining both terms in the phrase. The Oxford Dictionary defines management
as being, “the process of administering or regulating the resources under one’s control”. It also
defined a theory as being “a supposition or a system of ideas intended to explain something,
especially one based on general principles independent of the thing to be explained”. (Oxford
Dictionary, 2016). Classical Management Theory was conceptualized in the 19th and early 20th
century in the wake of the industrial revolution in the western world. Subsequent theories of
management such as Human Relations were formulated in reaction to the perceived
shortcomings of the preceding classical theories. Thereafter, various revisions, adaptations and
overhauls of these theories have evolved into the present day management theories.
Nevins and Stumpf (1999) assert that management in the 21st century is dynamic and
ever evolving owing primarily to advances in technology. Organisations have become complex
open systems which transcend even international borders with information exchange far more
fluid than ever before. This paper asserts that most theories and ideas of management currently
being applied in the modern day have numerous elements adapted from the aforementioned
initial theories. An investigation of their influence on modern day theory can thus serve as a
measure of whether they can be considered archetypical in management theory as a whole. In
order to achieve this, a review of the key facets of the Classical Theories as well as the Human
Relations Theory shall be carried out, the findings of which shall be compared with modern
management theory application on a practical basis.

CLASSICAL MANAGEMENT THEORIES OVERVIEW

According to Wikieducator (2016), the Classical Management School consists of a triad
of management theories which were formulated in an effort to develop a comprehensive
management theory particularly during the industrial revolutions of the western world.
Gutterman (2015) asserts that the rise of the “factory system” during this industrial revolution
presented numerous challenges, in particular the organisation and oversight of the myriad of
tasks that needed to be carried out. The first approach towards solving this issue was the

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formulation of theories which were focussed on how best to carry out and manage a task so as
to increase productivity and efficiency.
There are three main branches of the Classical Management School which are listed below:
a) The Scientific Management Theory
b) The Bureaucratic Management Theory
c) The Administrative Management Theory

The Scientific Management Theory

The Scientific Management Theory was formulated in order to increase efficiency and
productivity so as to counter the low productivity of workers late in the 19th century. This was
reactionary to the industrial revolution which created ever-increasing demand for proficiency
in task execution and higher productivity. According to Drury (1915), the main proponents of
the Scientific Management model were Frederick Taylor, Henry Gantt, Frank Gilbreth and
Lillian Gilbreth. The main focus of the theory was to scientifically study tasks and identify the
best method to then be standardised to increase efficiency. Staff selection was determined
scientifically to ensure competence in the specific work.
Frederick Taylor carried out “time studies” to identify improvements that could be made to
work which could increase efficiency. An example is ascertaining the correct shovel size to
ensure that workmen do not tire quickly and can thus work longer and ultimately shovel more.
The Gilbreths then carried out “motion” studies which were based on scientific analysis of the
labour process. The Gilbreths observed video recorded work processes and took note of
redundant movements and postures which they eliminated. Ultimately, they came up with
standardized best practices for the work flows. (Wikipedia, 2016).
Henry Gantt’s contribution to Scientific Management encompassed the application of scientific
methods to determine the most efficient way to carry out tasks in large projects. He developed
the Gantt chart which is a bar graph representation of all project tasks showing the full timeline
and all interdependencies between tasks. This assisted project managers to keep track of all
tasks in large projects and ensure that the least time is utilised to reach completion. Gantt also
cared about worker incentives and corporate social responsibility. (Boyd, 2011).
Marxists.org (2016) suggests that under “Taylorism”, management assumed the responsibility
of gathering knowledge of tasks, availing required resources, planning and organising. What
was required of workmen was their hard work, good-will and ingenuity. The major principles
of the Scientific Management Theory are shown below:
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 a) Development of a science for each work element as opposed to the “Rule of Thumb” of
old.
b) Scientific selection of appropriate workmen for particular jobs and prescription of the
appropriate training and development as opposed to the old system whereby the
workmen bore that responsibility over and above their work.
c) Mutual cooperation between staff and management especially in the determination of
work standards and execution of work according to the developed science.
d) Clear division of responsibility between workers and management.

The Bureaucratic Management Theory

As opposed to the focus primarily on efficient execution of work methods and
strengthening the ability of the worker attributable to “Taylorism”, Max Webber believed in
impersonal and formal organisational structure in which specific rules were followed and each
had specific functions. He believed that authority was supposed to be a function of the job and
not based on personality. In other words, he believed that it was a function that could be passed
on from one person to the next. The following are the characteristic of Max Webber’s
Bureaucracy Theory according to CliffNotes (2016):
a) Well-defined hierarchy
A clear chain of command within an organisational structure allows for control and
order throughout the organisation. Higher positions supervise and regulate lower
positions.
b) Division of Labour and Specialisation
Specialisation of responsibilities in the organisation to allow for the necessary
specific expertise of each member of staff to carry out their specific tasks.
c) Rules and Regulations
Application of standard operating procedures across the organisation so as to
provide certainty and facilitate coordination.
d) Impersonal Relationships between Managers and Employees
Impersonal relations with employees so as to avoid decisions influenced through
partiality, nepotism and favouritism.
e) Competence
Merit based awarding of jobs, assignments and promotions instead of how well
connected one is.
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 f) Records
A bureaucracy needs to maintain complete files regarding all its activities.

The Administrative Management Theory

Just as with the Bureaucratic and Scientific Management theories, Henri Fayol
endeavoured to distinctly divide labour between management and workers. To this end, he
proposed that management required specific roles or functions in order to fully manage all work
and the workers that carried it out. Slideshare.net (2016) presents the 6 functions/roles of
management as proposed by Fayol:
a) Forecasting
b) Planning
c) Organising
d) Commanding
e) Coordinating
f) Controlling
These functions describe the all-encompassing work that managers were required to do in the
organisational setting. These six roles later evolved into fourteen principles stated below:
1) Division of Work – Specialization increases skill and efficiency and thus output.
2) Authority – Managers must have authority but also the associated responsibility.
3) Discipline – Discipline must be present in the organisation and must be enforced.
4) Unity of Command – Employees must have only one direct supervisor.
5) Unity of Direction – Teams must have one objective, must work under one manager and
must have one plan to ensure coordination.
6) Subordination of Individual Interests to the General Interest – One employee’s interests
must never supersede the group’s interests, managers included.
7) Remuneration – Financial and non-financial compensation must be fair for all to ensure
employee satisfaction.
8) Centralisation – Balance is required in terms of participative decision making with
employees.
9) Scalar Chain – Employees must be aware of where they stand in the organisation’s
hierarchy or chain of command.
10) Order – Workplace facilities must be clean, tidy and safe for employees. Everything
should have its place.
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 11) Equity – Managers must despatch disciplinary measures or act with kindness, whichever
is appropriate.
12) Stability of Tenure of Personnel – Personnel turnover must be minimised through
personnel planning.
13) Initiative – Employees must be afforded the necessary level of autonomy to create and
carry out plans.
14) Esprit de Corp (spirit of loyalty) – Organisations should strive to promote team spirit
and unity.
(Mindtools.com, 2016)

NEO-CLASSICAL MANAGEMENT SCHOOL OVERVIEW

The Neo-Classical Management School came about in reaction to the shortcomings of
the Classical Management School particularly with respect to the human element of
organisations.
The core concepts of focus as suggested by Slideshare.net (2016) are as follows:
a) The best way to motivate, structure and support employees.
b) The need for workers to find intrinsic value in their jobs.
c) The positive impact of social relationships on worker productivity.

The Human Relations Management Theory

According to Slideshare.net (2016), some of the main contributors to the Human Relations
Theory are as follows:
 Elton Mayo – The Hawthorne Studies
 Fritz Roethlisberger – Management Principles
 Chester Barnard – Functions of the Executive
The Human Relations movement extended into the various hypothesis on the behavioural
model, however the underlying theme was the use of the greatest means to motivate employees
and encourage high performance. This evolution resulted in the wider Behavioural Theory of
Management to which Follet, Maslow, McGregor, Lickert, Herzberg, Argyris, McClelland and
others are contributors.
After the Hawthorne Studies had been carried out over a relatively long period of more
than five years, enough data had been gathered to analyse and make reasonable
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 conclusions. The time taken and the amount of data gathered by Mayo eclipsed that of
Taylor and his associates in Scientific Management Theory formation. What became
known as the “Hawthorne Effect” was that fact that attention and recognition spawned
productivity regardless of operating conditions. The major building blocks of the theory
as suggested by (Slideshare.net, 2016) are as follows:
a) Financial incentives are not the only motivational factor in job performance of workers.
b) Workers care about their autonomy and their own development and empowerment in
order to self-actualise.
c) Workers care about social status and personal relationships with co-workers.
d) Workers perform better when they know they are being monitored/given attention and
also when they feel valued and appreciated by co-workers.

Business.com (2010) states that the requirements for effective businesses include employee
personal development and growth as well as goal setting. Workers have a need for challenging
work in which they use their minds and they require participative decision making.

CONTEMPORARY APPLICATION OF CLASSICAL AND HUMAN

RELATIONS MANAGEMENT THEORIES

Scientific Management at McDonald’s

A classic example of the use of Scientific Management in the modern day is with the
international fast food chain called McDonald’s. McDonald’s employs numerous employees
around the world and is hugely successful especially in its ability to satisfy its customers with
respect to waiting time and quality of food. This has been made possible through the application
of three main principles from Scientific Management. Markadrianus (2014) shows that
McDonald’s has employed a system that “rewards employees for meeting the objective goals,
scientific education enforced in their workers and following a uniform method of achieving
each job”.
 Rewards for meeting goals – Frederick Taylor believed the system of paying out a standard
fee for work done regardless of whether targets had been met, not met or even surpassed
was inequitable. Taylor proposed a system of monetary incentives which eliminated
underpayment and awarded bonuses where applicable. (Markedbyteachers.com, 2016).
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 According to Markadrianus (2014), McDonald’s utilises a system of rewarding performance
throughout the organisation. A competitive wage and promotion program is run allowing
for progression up the chain of command in a fair manner. The reward given to an employee
is always commensurate to the performance level reached or the target met.

 Scientific Education – Another of the principles of Scientific Management is the

scientific selection, teaching and training of staff for each specific task. In 1961,
McDonald’s went to the extent of establishing the Hamburger University with a “faculty of
30 resident professors where management training, operations developments, equipment
familiarity practices and interpersonal skills courses are offered to workers”. (Markadrianus,
2014). Further to University standard training in the disciplines states above, McDonald’s
provides an on-the-job vocational training programme for employees. (Slideshare.net,
2011). The training carried out here is diverse and covers all functions from equipment
operation to customer service. This ensures that each task is done in a precise way no matter
which employee is in play.

 Standardization of tasks - According to UK Essays (2013), McDonalds has “de-skilled”

its staff and by so doing has simplified work tasks. The preparation of food for instance is
done according to specific instructions and proportions. Even interaction with customers is
rigidly scripted so as to ensure uniformity and quality. Kitchen equipment and utensils are
positioned from results of calculations and measurements for each workstation for optimal
posturing of workmen and thus maximum efficiency (Taylor and Gilbreths’ Time and
Motion studies). The layout of equipment is even similar in every outlet. Tasks in the
process are standardized and slack is eliminated where possible through pre-programming
of some machines and items like cash registers.

Bureaucratic Management in the American Police Forces

A bureaucracy, as described by Fransisco (2012) is “a means of determining how
resources, particularly economic and personnel, are delegated for non-economic values.” An
example of the most common and well known bureaucracies in any country is any of their
Uniformed Forces. The American Police Force shall be used as an example of a modern
bureaucracy. Cliffnotes.com (2016) describes the elements of the Police which tie in with the
principles of the Bureaucratic Management Theory.
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Division of Labour and specialisation - asserts that the administration of police departments
is systematic and each task and duty is specialized.
Competence - Recruitment is based on objective qualifications of staff.
Rules and Regulations - All actions are governed by specific rules and regulations. The
American Public Safety Training Institute (2013) asserts that the Police has centralised authority
which generates organisational policies and procedures.
Well-defined hierarchy - There exists in the force a distinct hierarchy of authority that is
rigorously enforced even in the apparel worn (for instance Commander, Superintendent and
Inspector).
Impersonal Relationships with Management – Further to visual recognition of hierarchy, the
Police operates under an authoritarian command structure in which orders are absolute and flow
from the top down. This eliminates personal relations between senior and junior staff.
Records – Anon (2016) states that “proper maintenance of Police Station records is a pre-
requisite for the smooth functioning of a Police Station.” This is required for reference of
operating procedures as well as for criminal evidence and reflection.
The abovementioned factors are evidence of the overall application of most of the original
principles of the Bureaucratic Management Theory.

Administrative Management in the present day.

According to Olam (2004), Henri Fayol’s five core roles of management (Planning,
Organising, Commanding, Co-ordinating and Controlling) are still mostly practiced in the
present day. Thecustomwritings.com (2016) also suggest, as proposed by McLean (2011), that
Fayol’s theories were the basis of modern management and that most of Fayol’s principles are
recognisable in modern organisational management functions. This is notwithstanding the
nature of the business environment of the 21st century which demands multi-functional complex
organisations which are adaptive. Some of the traditional concepts of Fayol are no longer easy
to implement. An example is with Unity of Command. Olam (2004) asserts that in the present
day, it is difficult to apply the principles of “Unity of Command” and “Unity of Direction” since
“Matrix Management” is the structure of choice in the present day. This ties in with the
complexity theory and with the complex adaptive nature of our globalised business operations
today.

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 Human Relations Management at Google Inc.
Google Inc. is a company in the ICT Industry and provides media and internet services.
It is a tech company that was formed with a mission to make information in the world easily
accessible and more useful. The company’s management model has always been based on a
culture of creativity and innovation and has such, requires a certain level of autonomy of staff
in order to foster it.
Slideshare.net (2016) lists some of the key elements of the leadership style utilised at Google
as follows:
a) Get to know your followers.
b) Create new ways to promote your followers.
c) Let your followers own the problems you want them to solve.
d) Allow people to function outside the company hierarchy.
e) Review your team’s results by someone they respect.

Eric Schmidt, the Google CEO, describes Google’s standard package of fringe benefits which
includes first class dining facilities, gyms, laundry rooms and massage rooms amongst other
items. Workers have time to relax and interact with others in social settings. Work times are
flexible and telecommuting is allowed for specific jobs. The monetary incentives at Google
include paid time off for both nursing mothers and new fathers. There is thus a good mix of
incentives with the majority being of a social nature and this has propelled Google towards
being named as the top rated company for employee satisfaction in America in 2015. (Mail
Online, 2014).
Google has dedicated its Human Resources to ensuring employee satisfaction and has gone on
to call it People Operations (POPS). POPS employs a sophisticated program to “track employee
data so as to gain empirical certainty about every aspect of Google workers’ lives.” (Manjoo,
2016). Google’s spokesman, Jordan Newman stated that Google’s philosophy is “to create the
happiest, most productive workplace in the world” (Stewart, 2013).
Google, in addition to employing a competitive compensation strategy have adopted a
comprehensive career development strategy. This allows personal and professional growth in
the company. (Lombardo, 2015). The application of the concepts of recognition, motivation
and fair remuneration from the Human Relations theory, in line with Google’s type of business
operation, has brought it exceptional success with employees hugely satisfied with their jobs.

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 CONCLUSION
The assertions made in this paper for each of the cited management theories with
respect to contemporary management approaches are shown to be true beyond reasonable
doubt. The cited cases reveal numerous elements of the Classical and Human Relations
theories being applied in the present day. Google Inc. has embraced all of the principles of the
Human Relations Management Theory in a modern setting to great effect. McDonald’s is
another example with its application of most of the principles of Scientific Management
which it has utilised to its advantage. It has greatly increased efficiency and thus profitability.
It has also ensured increased job satisfaction through efforts to enhance personal and
professional development of employees.
Bureaucracies, though mostly frowned upon for inflexibility and lack of adaptive ability, are
still in play in the present day particularly in very large organisations and public service
institutions and arms of government across the world. Bureaucracy has been shown to apply
to mostly non-monetary operations which require organisation and efficiency. The cited
example is the Police Force in America and indeed, in any country. Administrative
management has been shown to be applicable to numerous organisations in the world. The
roles of management as described by Fayol are still very much applicable in most
organisations and institutions especially since they formed the bases of management as we
know it. The differences between one organisation and another appear mainly on some of the
principles. A cited example is that most complex organisations of the present day cannot
apply unity of command as they are multi-faceted and in some cases globalised. Even so, most
of these principles are very much applicable in the present day.
The main assertion from this paper is that each organisation of the present day may lean
towards one theory or another, however a conglomerate of elements of all of the original
theories are noticeable in each organisation or institution to varying degrees. The Classical
and Human Relations Theories have thus undoubtedly influenced management approaches in
present day management.

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