Evaluating the Influence of Classical and Human Relations Approaches in Management Today

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Advantages of Scientific Management

- It helped in increasing productivity and production which was the need of the hour.

- It also helped to create harmony between management and workers thereby resolving the conflict-driven relationship that previously existed.

- His work laid the foundation for separating the “staff” and “line” functions needed to run large organizations.

- He was the first to describe management as a profession, thereby paving a way for the discipline of management.

Disadvantages of Scientific Management

- Theory assumes that workers were primarily motivated by economic and physical needs. Therefore, overlooked desire of workers for job satisfaction.

- Led, in some cases, to the exploitation of workers and as wages were not increased proportionally to increase in productivity.

- Excluded the tasks of top management in its application and focused mainly on the lower level management.

- Focused only on the internal operations of the organisation.

Fayol’s Administrative theory

Henri Fayol (1841-1925) was a French industrialist and management consultant who is also referred to as the father of modern management. He propounded the administrative theory after examining the organization from top-down and realized that the problem of personnel and its management is the key to industrial success. He began by classifying all business operations in an organisation into six categories namely: technical, commercial, financial, security, accounting and management. His main focus was on management as he felt managerial activities have been neglected by Taylor’s theory so he identified five primary functions which management should apply in interacting with personnel in order to control and plan production. The functions are planning, organizing, coordinating, command and control.

Planning – there should be a plan and actions to be taken to achieve desired goal.

Organizing – making sure all necessary resources (raw materials, personnel, etc.) are available when needed.

Coordinating – harmonize timing and sequencing of activities.

Commanding – execute the plan by maintaining activity among employees.

Controlling – monitor and correct tasks to meet project’s goals and deliverables.

These functional areas are basically what define management and are still used in training and corporate development programs till date. Fayol also set down 14 principles of management which organisations should apply to achieve sustainability, efficiency and effectiveness. The 14 principles are listed below;

- Division of work/Specialization: workforce should be divided into different tasks and made to gain specialization on focus in that particular task.

- Discipline: employees must respect the rules that govern the organization

- Authority and responsibility: authority gives managers right to be able to give orders. And responsibility arises wherever authority is exercised.

- Unity of command: an employee should report to only one boss.

- Unity of Command: Each team with same organizational activities and objectives should be directed by on manager

- Subordination of Individual Interest to General Interest: Individuals should not place personal interest over common interest.

- Remuneration: method of payment to employee should be fair and not complicated.

- Centralisation: This is about limiting subordinates’ role in an organization. Fayol believes that centralization or decentralization should be done depending on the size and needs of the organization.

- Scalar Chain: line of authority from top management to lowest ranks represents scalar chain and communication should follow this chain.

- Order: there should be a specific place for people and materials in the organization

- Equity: all employees must be treated with equally. Managers should be kind and fair to their subordinates.

- Stability of Tenure: high turnover of employee is inefficient. retaining productive employees should always be high priority on management.

- Initiative: employees should be encouraged to be creative and express their new ideas to management. This leads to motivation and provides job satisfaction.

- Esprit De Corps: this implies unity of effort which will build harmony among the employees.

Fayol’s 14 principles have been adopted as the general rules in management practice. They are still relevant in today’s context.

Weber’s theory of Bureaucracy

Max Weber (1864-1920), a German social scientist. He believed that a group could collectively take a better decision and be more disciplined if the hierarchies are sincerely taken care of. His approach emphasized on the necessities of organizations to operate rationally rather than follow irrational emotions and intentions of business owners or managers. This was because in the 18th century most businesses in Europe operated were family or personal oriented and operated in this manner. Weber having had the opportunity to work in various positions witnessed the industrial revolution and saw that the emerging forms of organisations will have broad implications for managers and society. Weber bureaucracy so that he could study this movement towards rationality of organizations. In his opinion there are three types of legitimate authorities: i) Charismatic authority which is based on force of personality of inspirational leaders, ii) traditional authority where leaders are chosen by customs or due to social class or family they belong, and iii) Rational-legal authority which he recognizes as the most important since the authority here is legally established.

The characteristics or features of the rational-legal authority are as follows: -