Comparison of Business Management Theories

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An example that employs the classical scientific theory is McDonalds, a leading fast food chain with more than 31000 outlets globally (Aboutmcdonalds.com, 2015). A primary principle of the classical scientific management theory is the use of scientific procedures to determine the most effective way of working which McDonalds has adapted. They used this concept to study and plan their equipment design and work schedule to maximise output (Aboutmcdonalds.com, 2015). Additionally, McDonalds adopted the hierarchical business model as evidenced in the numerous manuals and precise rules of conduct for the workers. Furthermore, the classical scientific theory principle is evident in McDonalds pay system that reveals a pay for performance theory with basic pay and incentives for employees to exceed set goals (Aboutmcdonalds.com, 2015). On the other hand, Google has adapted and implanted the behavioural theory of management. Managers at Google practice this theory by doing several things. First, the managers set out to empower their teams and avoid micromanagement (David, 2013). This creates a balanced environment where managers give the workers freedom but are also available for advice. Furthermore, Google has made sure that communication within the company is two way and workers are thus able to contribute their ideas to the management (David, 2013). This open dialogue policy creates a sense of belonging among the employees, which further leads to improved productivity.

In conclusion, managers adapt different leadership styles. The Classical Scientific theory gives workers limited decision-making powers in a business. This approach is limited in success because of low employee morale, so the behavioural theory emerged. The behavioural approach is employee focused with workers also being involved in decision-making. Despite this, these theories are successfully implemented in different companies. Ultimately, the management of a company should adopt a management theory based on what best works for it.

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References

Aboutmcdonalds.com. (2015). McDonald’s – Official Global Corporate Website :: AboutMcDonalds.com. [online] Available at: http://www.aboutmcdonalds.com/mcd.html [Accessed 14 Apr. 2015].

David, D. (2013). Google, the Network Company: From Theory to Practice. Fountainebleau: INSEAD.

McNamara, C. (n.d.). Historical and Contemporary Theories of Management. [online] Managementhelp.org. Available at: http://managementhelp.org/management/theories.htm [Accessed 14 Apr. 2015].