The Classical / Scientific Management Theory

Classical and scientific management theory is based on four main principles:

1. Company leadership should develop a standard method for doing each job using
scientific management.
2. Workers should be selected for a job based on their skills and abilities.
3. Work should be planned to eliminate interruptions.
4. Wage incentives should be offered to encourage increased output.

Human Relations Theorists

Where Classical theorists were concerned with structure and mechanics of organisations, the
theorists of human relations were, understandably, concerned with the human factors.

The foci of human relations theory is on motivation, group motivation and leadership.

At the centre of these foci are assumptions about relationship between employer and employee.
Best summarised by Schein (1965) or Elton Mayo

they were academic, social scientists

their emphasis was on human behaviour within organisations

they stated that people's needs are decisive factors in achieving an organisation's
effectiveness

they were descriptive and attempted to be predictive of behaviour in organisations

a) Human Relations Management Theory Basics - Understand the basic premise behind the
human relations management theory

The human relations management theory is a researched belief that people desire to be
part of a supportive team that facilitates development and growth. Therefore, if employees
receive special attention and are encouraged to participate, they perceive their work has
significance, and they are motivated to be more productive, resulting in high quality work. The
following human relations management theory basics became evident during human relation
studies:

1. Individual attention and recognition aligns with the human relations theory.

2. Many theorists supported the motivational theory.

3. Studies supported the importance of human relations in business.

b) Understand the human relations theory of management

The results of Professor Elton Mayo's Hawthorne studies proved that the factor most
influencing productivity are relationships. The researchers realized productivity increased due to
relationships and being part of a supportive group where each employee's work had a significant
effect on the team output. As a side result, the researchers noticed that the increased attention the
workers received by the researchers increased motivation and productivity, which resulted in
what is the Hawthorne Effect.

c) Know how the motivational theory fits with human relations in management

After the Hawthorne experiments, Abraham Maslow and Douglas McGregor revealed
how the motivational theory ties in with theories of human relations. Maslow suggested five
basic needs (physiological, safety, love, esteem and self-actualization) were motivating factors
when viewing an employee's work values, because the employee is motivated to ensure the most
important of these individual needs are met. McGregor supported motivation beliefs by realizing
that employees contribute more to the organization if they feel responsible and valued.

d) Use the bottom line results of human relations management theories

The result of the studies regarding human relations in the workplace show that people
want to have a sense of belonging and significance while being treated with value and respect.
Treat an employee with respect and value, and their individual productivity and quality increases
to support the organizational team.

Remember, human relations falls under the umbrella of human resources; therefore, the
human resources theory is different from the human relations management theory.

Modern management (Based on the scientific management or operations management)

The meaning of Modern management.

Modern management theory has changed the way managers look at their jobs.
Advancements and refinements in management theory and practice have enabled managers and
managerial systems to evolve. In this lesson, we will look at modern management theories.

The three most recognized management theories are:

1. The Quantitative Approach: This approach is centered on statistics and mathematical

techniques.
2. The Systems Approach: As one could probably guess, this approach focuses on systems
that, when put together, make a whole unit, kind of like a jigsaw puzzle.
 3. The Contingency Approach: This approach believes there is no one system or approach to
managing an organization. These guys believe you take it as it comes but plan to deal
with issues if they pop up.

There's not one that is better than another, just different, and sometimes they have to be blended
together for a company or organization to run.

a) Quantitative Approach

The quantitative approach is solely reliant on statistics and data. The big word we are looking for
here is quantitative, which means the measurement of quantity or amount. So a bunch of really
smart people get together and they crunch and crunch data to decide how a business should run
or be managed. Scientists use this approach a great deal and, in many cases, so do accountants
and finance people, mainly because their world revolves around data. It is not glamorous or
creative.

b. Systems Approach

The systems approach takes the viewpoint that a company is really an interconnected group of
systems that all work together (or should work together). The best way to view this system is by
thinking of a company as a machine. You have:

Inputs: Material, information or data that goes into the machine

Processes: Work that is done to the material, information or data while it's in the machine

Outputs: The final product that comes out of the machine

To compare this to the quantitative approach, a manager that follows that approach would only
want to know data about how long the bread was in the toaster and the level of, well, toasting
that happened when it came out.

b) The contingency approach

Fred Fielder. The theory states that leadership effectiveness, as it relates to group
effectiveness, is a component of two factors: task motivation, or relation motivation, and
circumstances. You measure task motivation, or relation motivation, by the least preferred co-
worker (LPC) scale.
For example, a score of one would be uncooperative, and a score of eight would be
cooperative. Fielder believed that people with a higher LPC score try to maintain harmony in
their work relationships, while people with a lower LPC score are motivated to focus on task
accomplishment.
The theory states that task or relations motivations is contingent upon whether the manager is
able to both control and effect the group's situational favorability, or outcome. According to the
theory, you can assess situational favorability by three factors:

1. Leader-member relations - This factor addresses the manager's perception of his

cooperative relations with his subordinates.

2. Task structure - This factor relates to whether the structure of the work task is highly
structured, subject to standard procedures and subject to adequate measures of
assessment.

3. Position power - This factor asks if the manager's level of authority is based on punishing
or rewarding behavior. For example, does the manger derive his authority from providing
bonuses for meeting sales goals or terminating employees for failure to meet the goals.

Management Theory Development on The Future

There are five possibilities for future directions of management theory developments,
such as :

1. Dominant
One of the main flow appears as the most useful one.
2. Divergence
It happen when eachflowsdevelops through its own path.
3. Convergence
Convergence is when the flows become like-minded with the boundaries between them
tends to blur.
4. Synthesis
When each flows integrate with each other.
5. Proliferation
When there is a possibility appeared more flows. It can be seem at The Management
Theory Jungle article, where Harold Koontz see there are six main flows of management
theory. Waren Haynes and Joseph L. Massie, in their book, Management Analysis :
Concept and Case, distinguishes six flows of management theory, that is :
a. Managerial Accounting Flow
b. Managerial Economic Flow
c. Thesis Organization Flow
d. The Flow of Human Relationship and Human Behavior
e. Quantitative Flow
f. The Flow of Industrial Engineering