With reference to appropriate literature and cases, critically evaluate the influence of

classical and human relations approaches in management today.

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To accomplish the goals of the business, tasks must be organized and managed. To
fulfill its objectives with the resources at hand, the organization must be set up and its
people must be coordinated. The term "management" can also refer to the
organizational hierarchy of staff personnel (Wikipedia.org, 2018). Yet, the continual
organizational development, the internal/external environment, and globalization
share characteristics with management throughout the Industrial Revolution as well as
today. In terms of hierarchy, shifts in technology and the nature of knowledge-based
organizations have necessitated the use of broader management strategies than those
that were prevalent throughout the industrial period.

Today and in the past, management theory has primarily focused on three connected
processes: leadership, controlling, and organizational structure. The best way to
demonstrate effective leadership is to encourage and educate assistants who are
business-efficient and help the company grow strategically. Decisions will be made as
a result of this procedure to guarantee a successful business, B. Karlof and F.
Loevingsson (2005, P.4).

Traditional management focused primarily on the operations and structure of the

formal organization (Cole and Kelly, 2005, pp.16). With its goals and productivity,
this strategy will significantly guarantee the effectiveness of institutions. Approaches
in human relations will take into account social and psychological elements in
companies. This approach focuses on addressing the social variables that contribute to
the operational work's performance and profitability (Michaelson, 2005).

CLASSICAL MANAGEMENT

According to Safferstone (2005, p. 4), management theories were necessary to ensure

the efficient and effective use of traditional factors of production, such as property,
employment, and wealth, during the industrial revolution. This was because work

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evolved from independent activities (such as farming), and more coordinated action
was taken (for example factories).

The following list of organization theories can be used to predict and explain the
actions and behavior patterns in an organizational context;
i. Frederick Winslow Taylor proposed the scientific management concept in
1911.
ii. Henri Fayol proposed the "Administrative Principles Approach" in 1916.
iii. Max Weber proposed the bureaucratic organizational method in 1905.

We shall research the three theories for a comprehensive critical examination of

management.

Scientific management principles by Frederick Winslow Taylor

Frederick Winslow Taylor created the scientific method in 1911. He saw management
as a scientific field. Taylor discovered during this time that it is necessary to evaluate
management using a scientific method rather than relying just on the administration's
decision-making, and he named it the rule of thumb. Taylor proposed that there were
set laws that could be used to management studies in order to achieve the desired
results. He said that these laws were necessary for efficient performance. Taylor
proposed four scientific management tenets (Taylor, 1919, pp.36-38). Let's sum it up
like this:

• Support employees carefully as they prepare their task and collaborate with
them on maintenance.
• Invest in and grow gradually, train, and educate, to boost output and achieve
maximum effectiveness at work.
• Thoroughly choose employees who possess the necessary skills for the
assigned job task.
• Encourage cooperation and confidence among workers.

Opponents of Taylor's theory include the following:

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 i. Taylor assumed that there was an employee-employer bond that did not
exist when it mattered, which made any financial incentive plans
ineffective because workers believed that management was trying to "pin
them down" and that they had succeeded in "pulling the wool over their
eyes," according to management (Cole and Kelly, 2016, pp. 28).

ii. This method, which was predicated on the low education level of workers
in Taylor's day, turned people into automatons and left no room for them to
create; for a professional worker, this was a recipe for frustration and job
discontent.

iii. Taylor believed that the only monetary incentives could serve as a reward
system for motivating employees.

vi. Tasks being broken down into smaller, simpler ones could lead to
employee unhappiness or deskilling, while Taylor makes the argument that
doing the same thing repeatedly will boost work efficiency.

We list a few benefits and drawbacks of the scientific management idea;

Advantages of Scientific Management Theory

i. Controllability: One of the best things about scientific management thinkers is
that they allow managers to exert effective control over output. Since they
perform the same activity frequently, employees become experts in their
sector, which makes it simple for managers to exert control over them.

ii. Reduces inaccuracy: Since the theory was developed using observations and
experiments to provide context-specific solutions, inaccuracy was reduced.
Accuracy is attained with superior planning and decision-making.

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 iii. Reduced autocracy: The notion encourages management to develop a good
rapport with leadership. Collaboration between workers and managers
improves workplace democracy. Hence, adhering to scientific management
philosophy reduces autocracy.

Disadvantages of Scientific Management Theory

i. Needs a significant financial commitment and takes into account an

expensive system. More money is needed for the creation of the work-
study program, the planning department, worker training, and standards.

ii. Management takes control: The management accepts complete

responsibility connected to the control and planning of workplace
activities. As the managers take up control of the employees, they lack
innovation, another reason for this is that since they repeat the same
activity, their chore is meaningless, monotonous, and tedious which
reduces employee motivation.

iii. Planning decreases productivity: Although the capacity to plan is a benefit,

planning has the negative effect of making work stiff and inflexible, which
can result in carelessness and discontent.

Administrative Principles by Henri Fayol

Production drastically changed during the Industrial Revolution as factories expanded

around the globe. At the same time, they were aware of the necessity for change and
the creation of effective management in order to effectively combine worker
productivity and raw materials in order to accomplish the objectives of the various

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companies.
Henri Fayol put out this hypothesis (1841-1925). Before becoming the company's
CEO, Fayol, a French engineer, spent more than thirty years working in the mining
sector. Fayol's idea was centered on the administrative principles of managing an
organization's operations and resources while keeping an eye on the organization as a
whole. He named the key functional areas as control, coordinating, foresight,
organizing, and directing in the book "Principles of management." resemble the four
management tasks very closely:
i. Planning is the process of choosing and organizing the tasks that must be
completed in order to reach the organization's objective.

ii. Organizing is the process of putting the resources of the organization to

productive use.

iii. The act of encouraging and influencing individuals to change their behavior in
order to further the objectives of the business is known as leading.

iv. Controlling entails assessing the performance of the organization, contrasting

it with the established standards, identifying deviations from the suggested
plans, and taking the appropriate corrective actions to make sure that
occurrences adhere to the policies.

In addition, fourteen key norms and principles that serve as recommendations for
managers are developed by administrative theories. These rules assert that while his
list is not exhaustive, it should serve as a guide for managers in order to provide
services that are more effective (Cole and Kelly, 2016, p. 25);

1. Division of Labor- He held that assigning tasks to different workers will improve
the caliber of the final result. He also came to the conclusion that the workers'
productivity, efficiency, accuracy, and speed are all improved by the work division.

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2. Authority and Responsibility- These two elements of management are crucial.
Responsibility makes them accountable for their task while leadership control gives
them the authority to do so.

3. Discipline- All project or management should be based on this tenet. Nothing can
be done if you aren't trained. Workers that perform well and interact with one another
properly aid in the management's efficient and thorough operations.

4. Unity of Command- This implies that an employee should report to a single

employer and obey his orders. When a worker has to deal with multiple bosses, a
conflict of interest arises and may lead to misunderstanding.

5. Unity of Direction- This implies that every team member and leader inside an
organization should share a shared aim.

6. Subordination of Individual Interest- Instead of prioritizing personal interests, a

firm should act as one.

7. Remuneration- This is crucial for boosting employee motivation in a business.

Payments can be made in cash or in kind. Nonetheless, it should take into account the
work that each person has made.

8. Centralization- It depends on how big the organization is. Centralization of power

is necessary to ensure wise decision-making at all levels.

9. Scalar Chain and processes- It is the chain pertaining to the relationship between
the boss and the employees. The organizational hierarchy needs to be distinct
(delegation of authority, action, decision-making, and command).

10. Order- Due to a favorable work environment, there must be orderly procedures

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and clearly defined work areas.

11. Equity- Workers must get fair and respectful treatment. Managers are responsible
for ensuring that there is no prejudice within the company.

12. Stability- An employee will produce the finest work when they feel comfortable
in their position. Employee turnover should be kept to a minimum by managers.

13. Initiative- Because the best ideas can sometimes emerge from the most unlikely
places, managers should support their staff as they take initiative inside the company.

14. Esprit de Corps- This is the fundamental idea. Regular employee motivation and
support are the managers' responsibilities. Building reciprocal trust within the team is
crucial.

Fayol stated that, in accordance with the idea of unity of direction, the same
management should oversee all actions targeted at attaining the organization's goals.
Additionally, he suggests that a single superior be responsible for overseeing a single
employee. Of course, this would lead to interpersonal conflicts with the integration
law. In order to provide more effective services, this notion has been implemented
into modern management practice.

Analyzing the benefits and drawbacks of Fayolism is crucial. Theoretically, he

developed one of the difficulties based only on his own managerial experiences, i.e.,
he did not conduct any additional study. Because he was convinced that his system
exclusively created benefits, he was unable to properly comprehend the benefits and
drawbacks of Fayolism. However, taking administrative management's benefits and
drawbacks into account, certain ideas are slaves to the times in which they were
created. For instance, having power and control over employees was standard in
Fayol's era. In order to make some of Fayol's beliefs more appropriate to

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contemporary norms, you must change them because that isn't the case in present
society.

Bureaucratic organization principles by Max Weber

The "father of sociology," Max Weber (1864–1920), was born in Germany at an era of
industrialization that had a profound impact on business, government, and society.
Industrial capitalism, a form of capitalism in which business is run for profit under
private ownership, piqued Weber's interest. Why did industrial capitalism work well
in some nations but not in others was Weber's main research question. Large
institutions like industries and government agencies, in his opinion, were a hallmark
of capitalist economies.

Additionally, Max Weber contrasted this spirit of conduct with that in his own nation.
He came to understand that in the USA, people are given power based on social
connections, linked networks, and ties to their families and social networks. He was
worried because of the lack of experience that power was influencing the status of the
community rather than being a principle of knowledge or skill. According to Weber,
this was the reason why loyal managers in the organization were failing. Rather from
achieving corporate goals and objectives, the resources were exploited to the
advantage of owners and management. Weber was persuaded that the organizations
were founded on "rational authority," and that personnel with the highest levels of
talent and qualification would be more effective than those who were hired based only
on their connections. This kind of logical structure was referred to as a bureaucracy by
Weber.

Following is a list of Weber's bureaucracy's defining characteristics:

i. Hierarchical Management Structure- In the organization, authority and
responsibilities are clearly defined, and according to the hierarchical structure,
subordinates answer to higher levels.

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 ii. Division of Labor- Workers develop their skills by specializing on one task
because their responsibilities are well defined.

iii. Formal Selection Process- Nepotism doesn't exist. Technical qualifications

with documentation of examinations and certification should be the basis for
the recruitment process and promotion activities (Colleges, institutions, and
Universities).

iv. Career Orientation- Managers are career employees, and management is

distinct from ownership. There is no threat of arbitrary termination.

v. Formal Rules and Regulations- Written rules that guarantee consistent and
predictable conduct. When it comes to employee relations, managers must rely
on formal organizational standards.

vi. Impersonality- Rules and procedures are applied consistently to everyone.

There is no special consideration.

He reasoned that bureaucracy would produce the maximum levels of efficiency,

reason, and worker satisfaction. According to Weber, his hypothesis is illogical and
will transform civilization due to the benefits of resource utilization efficiency.
Despite these issues, Weber defined "bureaucracy" as a system of rationed power that
dominates contemporary corporations. Bureaucracy principles are the foundation of
the "pyramid" administrative structure, which divides responsibility into divisions,
departments, and teams. The hiring and promoting of consistency in work should,
according to Weber, focus on qualifications rather than social pressures.

In conclusion, the management ideas developed by Frederick Winslow Taylor, Henri

Fayol, and Max Weber are still in use today. According to Taylor, managers should
support, uplift, and collaborate with staff members to forward the goals of the
company. In a similar vein, Fayol's managing responsibilities shed light on the

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organization's managerial tasks. In the majority of large institutions, including
hospitals, jails, police agencies, colleges, and universities, Weber's bureaucratic norms
are updated.

HUMAN RELATION APPROACH MANAGEMENT

The human relations theory takes social and psychological elements into account.
This approach also stresses on financial incentives, such as salaries and wages, and
productivity-related elements to motivate people (e.g., praise, a sense of belonging,
and feelings of achievement).

Elton Mayo first used the human relations theory between 1927 and 1932. When
Mayo was employed by the American Western Electric Company in Chicago's
Hawthorne facility, he began the trials. He understood that the productivity of a
person was seen as a result of the work, physical circumstances, and wages received
for a particular job. According to their research, Mayo also discovered that
productivity was linked to employee pleasure at work; managers should be concerned
with the analysis of organizational behavior (i.e., the interaction of people).

Four key aspects of the Human Relations Approach to Management were identified
by Hawthorne:

i. Relay assembly test room- Working hours, rest periods, and lunchtime were
altered during this experimental stage. The observer approached the workers
amicably and listened to their grievances. He caught sight of the rise in
productivity once more.

ii. Illumination experiments- Lighting was used during this experiment to

evaluate staff productivity. Two groups—one a control group and the other an

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 experimental group—were set up. In the end, even with insufficient lighting,
both groups' productivity increased.

iii. Interviewing program- Employees felt strongly about this experiment

because it revealed more about their attitudes and behaviors about
management, supervision, organization, working relationships, and employees'
lives and perspectives. We employed a non-directive, non-judgmental
interviewing strategy. Employee relationships have an impact on their
attitudes, which in turn have an impact on their productivity.

iv. Bank wiring observation room- During this phase of the experiment, the
observer made minor changes to the workplace environment for a period of six
months. Through their informal, intimate social connections, the staff started
to establish their structure and norms.

Mayo's came to the conclusion that adjustments had been made with employee input.
Together with the employees' positive working relationships with their managers, this
aspect has a decisive impact on productivity (Sutherland, 2004, p202-203). Google is
our example because it now uses behavioral management. With regard to employees,
the company eliminates bureaucracy and lets them make use of their skills. To
generate ideas and identify the most pertinent work, managers and employees
collaborate.

The fast-food chains are one illustration of traditional and human relations
approaches. We'll use McDonald's as an illustration. McDonald's was first established
in 1940 as a barbeque restaurant before becoming a network of fast food restaurants in
1955 (Wikipedia, 2016). In accordance with Henri Fayol's management tenets, we
looked at McDonald's code of conduct under their corporate governance requirements
(McDonald's, 2016a).

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McDonald's (2016a, p.10) claims that Fayol's principle, which calls for the division of
labor, management commitment, unity of purpose, command of authority, integration
of power, compensation, individual responsibility, and subordination of all interests to
the chief executive, was put into practice. All employees shared in the workload and
job responsibilities. McDonald's upper management delegated authority to issue
orders with propriety and accountability for the establishment's efficient operation
(2016a, pp.8).

The principles of fast food and Taylor's scientific management were founded on the
same Fayol principle: all tasks have time limits, necessary abilities, and separate plans
for food preparation at work. When you pay for an order, all McDonald's restaurants
will offer their services together with, roughly at the same time, the same ingredients
and taste.

McDonald's has displayed value propositions and marketing points (practices and
policies). In order to demonstrate "efficient and effective" techniques, McDonald's
applied both classical and human-relations theories of management. This is important
in modern management.

In conclusion, despite opposition from various human relations movements, the

managerial structure is still used in many modern enterprises. There are well-known
businesses that continue to use it as a vital tool in their daily operations (such as the
McDonald's corporation). These theories have an impact on modern society and are
frequently employed in conjunction with one another. In today's firms, management
places a lot of emphasis on evaluating the two approaches.

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