OCKOURI BARNES POOL 5

FUNCTIONS & THEORIES OF MANAGEMENT ASSIGNMENT

OSM LTD CASE STUDY

1. Which of the classical theories is being used at OSM LTD? Give at least two
pieces of evidence from the case.
The classical theory being used at OSM LTD is known as the Scientific
Management principle which was developed by Fredrick Taylor. Evidence of this
principle is provided in the case study as follows:
 Hectic training programmes were implemented.
 Workers are paid based on performance.
 Workers feeling too monitored as a result of an excessive number of
supervisors.
 Clear guidelines were given on how work is expected to be done.
Additionally reference of the Scientific Management principle was hinted at when
it was stated that Mr.Grumpy was a classical leader with old management as this
was the first from of management style that was developed.

2. Looking at the circumstances, is this the best approach to be implemented?

Explain your answer.
Based on the current the circumstance the approach that the other managers are
choosing to take are the best for numerous reasons. Firstly it is evident that
workers feel pressured by constant monitoring. Secondly the training
programmmes are way too hectic for the workers and thirdly workers are restive
about the situation, meaning that they are unable to remain silent about the
situation as a result of dissatisfaction with how Mr.Grumpy treats them therefore
putting other managers in a spot to try and find a solution. The reason why the
reader thinks the other managers approach is the best is mainly because of the fact
that the Scientific Management style that Mr.Grumpy utilizes has significant
drawbacks, one of which is that every worker is doing the same thing. This makes
the job autonomous and provides boredom for workers which leads to
demotivation it also eliminates the chance of workers gaining any new skill or to
express themselves creatively, which can be a hindrance to the progression of the
establishment. Additionally workers would only be satisfied by money and if it is
that their performance it is not impressive in the eyes of Mr.Grumpy they would
not receive sufficient pay. All of these factors would result in workers becoming
resentful towards Mr.Grumpy in the event that the issues are not addressed and
eventually they would leave the establishment.

3. Briefly describe the principles of the two other theories that were mentioned in
the case.
The two other management styles that were developed by Henri Fayol and Max
Weber are known as Administrative Management and Bureaucratic Management
respectively. Administrative Management focuses on management from the upper
level of administration as opposed to the Scientific Management which focused on
the workers. Fayol believed that business activities were divided into six
interdependent groups which managers should coordinate so as to achieve the
organization goals which include:
 Technical- including manufacturing, production and adaptation
 Commercial- including buying and selling
 Financial- utilizing capital
 Security- protecting property and individuals
 Accounting- dealing with inventory
 Managerial- inclusive of functions of management.
Fayol outlined five functions of management some of which are: planning,
controlling and commanding as well as fourteen principles of management which
should help managers to run a business smoothly these include discipline, unity of
command, division of labour equity, remuneration and centralization.
Bureaucratic Management focuses on organizational structure rather than practical
problems which Fayol and Fredrick focused on. Max Weber believed that legal
authority encompasses rules and controls that governs the organization. He also
believed management should enforce rules and as such he developed six
characteristics of bureaucracy being division of labour, formal selection, authority
hierarchy, career orientation, impersonality and formal rules and controls.
4. Discuss whether or not these approaches are the best move for the firm at this
time.
In the reader’s opinion the approach of management to find a solution at this time
is perfect for numerous reasons. Firstly the case study stated the Mr.Grumpy was
entrenched as a classical leader meaning that the possibility of him seeing the
worker’s perspective any time soon is highly unlikely. Therefore what this means
is that the other managers will have to consider possible options as well to test
which management style whether Administrative or Bureaucratic is most effective
in the business (this of course is dependent on the industry in which the business
operates as this was not stated in the case) Also in the beginning of the case study
it was stated that the workers were optimistic about a new style of management
emerging to run the business. With this knowledge it is safe for the reader to
assume that the previous manager of the business before Mr.Grumpy also used the
Scientific Management style. With this in mind it is important that management
resolve this issue as quickly as possible as this would have been an ongoing
situation that went unaddressed prior to Mr.Grumpy time working in the company.
Additionally this leads the reader to think that the Scientific style of management is
not effective as the workers wanted a change and they seem not very motivated to
work. With the other managers exploring new options and management techniques
this may allow increased productivity as workers would feel more motivated to
work as the environment would be more conducive to their liking. Lastly workers
would feel more appreciated as if they have a say in the operation of the business
instead of being treated like slaves and machines.