NAME: CLEMENT MLUNGISI SIMELANE

REPORT TITLE: A CRITICAL EVALUATION OF THE INFLUENCE OF CLASSICAL

AND HUMAN RELATIONS APPROACHES TO MANAGEMENT TODAY.

THE INFLUENCE CLASSICAL AND HUMAN RELATIONS APPROACHES

IN MANAGEMENT TODAY: A CRITICAL EVALUTION.

1. ABSTRACT.

This essay is about the influence of the classical and human relations approaches to
management which will be critically evaluated. Under each theory there are several proponents
who have originated their ideas and named them accordingly. For instance, under the classical
management theories is found theories like scientific management theory propounded by
Frederick Taylor, the administrative principle propounded by Henry Fayol and the bureaucratic
theory by Max Weber. Under the human relations theory you will find Elton Mayo, Mary
Parker Fullet and Abraham Maslow. Both the classical and the human relations theory have
contributed to management by shape and form. Organizations seem to have benefited from the
application of both theories.

2. INTRODUCTION.

Trade as a commercial activity is intricate and will not exist independently from human
intelligence. Underpinning the ideals of management are studies that have been made in order
to bring solutions to problems that arise as trade expands and grows. There is competition in
trade to gain access and control the global market share. The quality of the produce therefore
puts participants in international trade in a competitive advantage. Studies have revealed that
there is a strong connection between high productivity and profitability. Vital to the success of
organizations is their organization structurally, technologically imputing knowledge thereby
bringing about efficiency and effectiveness in their operations, Nieber H & Roodt G, (2008).
The interplay between human activity and systems is worth our study and credit in the practice
of management in organizations. Why study theories this ancient and what relevance has it got
for our times?

The historical development of management has created trends (paths) that entrants to the field
must study, analyze and understand if they are to succeed to handle current management
problems and scenarios. A manager who understands these ancient management theories is
empowered to manage business or organizations in a defined and structured manner because
the strategies they would come up with would be very clear, conceptually correct and resting
on sound theoretical foundations that have been tested in practice, Kitan A (2016).

3. CLASSICAL MANAGEMENT THEORIES.

The classical theory of management was developed between the 19th and 20th centuries when
the factory system of manufacturing appeared to pose many challenges for management to
manage production, people and the process Kitan A. (2016). The organization of raw materials,
tools, manufacturing units, selection of employees and handling employee’s grievances needed
to attend to by mangers intelligently. The study of management by classical theorists found
efficient solutions to these problems. The different schools of thought under the classicals may
be separated under subheads scientific management theory, bureaucratic organization theory,
and administrative principles Kitan A (2016).

3.1 Scientific Management by Frederic W. Taylor.

During the 1900-1920 the industrial sector expanded and technology bloomed.
As new challenges emerged Frederick W Taylor made study to bring about
solutions. His aim was to improve productivity, efficiency and effectiveness of
workers, along with performance of workers. The outcome of study was
propounding on division of work, training of workers, specialization and
payment of high incentives to high performing workers. Taylor called his theory
the scientific management theory of management.
 Taylor developed a scientific method to decode methods of performing tasks.
He propounded a systematic recruitment of employees to perform specific tasks.
These workers are to trained to specialize in a particular task so that they
specialize. According to Taylor, when this scientific of management has been
implemented has been successfully applied in task management, recruitment
and training, the working environment between management and labour is
mutual, friendly and cooperation. Taylor propounded an exercise he called
mental revolution. He said for the science to produce the results he saw, both
management and labour must transform in their minds to be able to work
together towards higher production. Taylor concluded that higher productivity
remains the common interests of both management as well as labour. Higher
production automatically results in higher profits. He assigned work to works
to do small tasks within a specific time using specific machinery and tools. Out
of this study he was able to conclude that delegation of work to workers in
calculated proportions, equipping them with specific machinery and tools,
would ensure high productivity, speedy production therefore high productivity.
Taylor suggested a differential incentive system that would pay more workers
that produced more than others.

3.2 The Administrative Principles by Henri Fayol.

Administrative principles focus on the productivity of the entire organization

rather than segments or individuals in the organization. The theory was founded
by Henri Fayol. He investigated managerial behavior based on the belief that
sound management practice can be segmented into certain identifiable and
analyzable patterns. Fayol focused on the organization as a whole rather than
the organizational function. He designed principles of management and
propounded that these principles can be taught therefore subscribing to the
ideology that leaders are made not born, Kitan A (2016).

3.3 Bureaucratic Management Theory by Max Webber.

Max weber formulated the bureaucratic theory of management in which he

developed a set of procedure and guidelines for managing organizations. He
propounded that procedures, rules, hierarchy and division of labour within an
organization produces a consistent employee behavior, controlled job
responsibilities and predictable systems behavior and according to him a
combination of all this leads high productivity, Kitan A (2016). Thus, theory
focuses on bureaucracy, on improving it, rather than the people who holds the
positions. According to this theory, the organization is independent of nay
person and must be able to grow in spite of whether an employee stays or leave.
The inherent disadvantages of this theory in red tape, delays in production or
decisions have been identified. The theory is also criticized for stifling creativity
in workers thus hindering their personal growth and satisfaction that comes with
personal development. It is also criticized for being inhuman in that it produces
employees who are removed from the objectives of the organization or their job
performances.

4. HUMAN RELATIONS THEORIES.

This theory was developed from an empirical study of Elton Mayo and his associates. The
study was designed to test the effect of lighting intensity on worker productivity and the
influence of human relation on work behavior. The assumptions of the theory are that;
• Human needs such as belongingness, inclusiveness and recognition determine worker’s
morale than physical conditions of work environments.
• Informal and formal social group within workplaces such as team effort, social
conformity and group loyalty determine individual and group behaviors.
• People develop affinity for one another in the group that comprises individuals with
various affinities.
• Employees are motivated by social and psychological needs coupled with economic
incentives.
• Communication, power, manipulative influence, authority devoid of autocracy are
important and therefore should be encouraged and developed.

Elton Mayo initiated the Hawthorne studies. His idea was that worker’s performance can
be high if proper attention is given to workers.

Mary Parker Fullet viewed organization as a community therefore introducing working in

group than working as an individual.

Maslow initiated a study that says human needs cannot be completely satisfied. He notes
that humans will however continue to attempt to try to satisfy their needs.

5. SIMILARITIES AND DIFFERENCES OF THE CLASSICAL AND HUMAN

RELATIONS THEORIES OF MANAGEMENT.

The major similarity of the classical and human relations theories is that these theories want
to achieve worker’s efficiency and better management systems.

They differ in many respects. The classical management theory is based on the assumption
that people are driven by desires or needs. Based on this assumption, this theory rates
employee’s efficiency based on the pursuit of these desires and needs. The human relations
theory on the other hand is based on the assumption that people are motivated by social and
psychological needs.

The classical theory is criticized of being inhuman, creating competitiveness that is

destructive to the humanness of people, mutuality, development of personalities,
cooperation and satisfaction that comes with it. The human relations theory on the other
hand emphasis that employees are people and individuals. The human relations theory has
received criticisms for exposing organizations to personal emotions of employees so that
their opinions influence the decision-making process of the organization. If that happens
the critics foresees a failing organization.

6. CASE STUDIES ON CONTEMPORARY ORGANIZATIONS

6.1 Cola Cola Company.

At Coca Cola everyone has the capacity to lead and everyone should be able to see some
aspects of themselves within the leadership definition. Leaders at Coca Cola commit to be
 role models as they set the agenda and help people be their best selves. The organization
has set the following management targets;

• Employees must live the growth behavior and act with a growth mindset.
• Employees must build an environment of trust and safety for everyone, one that
approves one to be imperfect.
• To seek the right outcome not the comfortable one. This involves making tough
decisions required for long-term and sustainable growth.
• Dreaming big and setting a bold vision and high expectations. This is done by
embracing the future back and present forward, simplifying complexity for teams
and correcting wrongs actively.
• Sharing ideas and participation in decision-making.
• Employment of employees better than the managers and helping everyone to reach
their potential.
• To listen more and talk less.
• Encouragement to learning from experience.

Information about the company does not specifically mention a particular management
theory however from the characteristics of the management goals one is able to identify
aspects of the human relations management theory. There is much alignment with building
relations with other employees and embracing imperfection. There are aspects of the
classical management approach that have been identified for instance, seeking the right
outcome not a comfortable one may involve a classical mindset and adherence to scientific
management approaches. The scientific management theory also emphasized the recruitment
of the best employees using a scientific method. Unless the company would use a scientific
method of recruitment that is propounded by Frederick Taylor, there is no way recruiters
would know that new entrants possess the quality and qualification considered as “best”.

Coca Cola seems to be applying a combination of both the classical and human relations
theories of management.

6.2 Toyota Corporation.

Founded in 1935, the company has developed a production system called” lean
manufacturing system”. The production control system was established based on many years
of continuous improvement with the aim of delivering vehicles that are ordered by customers
quicker and in a most efficiently way. The production system was established based on two
concept “ jikoda” (translated, automation with a human touch). When a problem occurs in
the production process, the equipment stops immediately preventing defecting products from
being produced.

The production system has been perfected by engineers to the point that any operator can use
the line to produce the same result. Through the repetition of the process, the machinery
becomes simpler and less expensive. Machines and robots work together as human transfer
their skills and craftmanship to the machines. Human wisdom and ingenuity are considered
indispensable in the production of cars and service of customers. The company has made
this commitment, to maintain a steadfast dedication to constantly developing human resource
who can think independently.
The characteristics of the management system of this company is more on the classical, the
scientific management theory. The creation and maintenance of the productions system
according to specifics peculiar to the company is scientific. The result is that any person can
use the machine to produce and actually attain the same results. The making of the system
to independently exist from the people is bureaucratic as propounded by Max Weber. The
last statement stating the company’s commitment, viz, “to develop human resource who can
think independently” is reflective of the current alignment to classical theories of
management and the desire of the company to move towards the human relations theories of
management.

The mechanization of the company’s production like many other companies that are
automated introduces an interesting dimension. While companies want to be move towards
the human relations management theory and allow employees to be human, to bring their
imperfections to work, to produce products within their humanistic nature, the introduction
of artificial intelligence may prove otherwise. Artificial intelligence is taking management
to scientific management in terms of dehumanizing people and the production system may
be purely bureaucratic in that humans are no longer needed.

6.3 African Idea of Management.

The case study of Africa may be relevant in this study considering that management as a
concept existed from 2900 BC in Africa, in Egypt in the management of the workplace when
building the pyramids, Kitan A (2016). The African continent has been heavily influenced
by the western idea and patterns of organizational formation and management set up. This
set up has been worsened by the fact that Africa has not initiated industrialization in its
phases. Trade however has always been conducted in Africa and even today it still is. Family
institutions still exist, and the idea is that the uniqueness of the African management system
is found in its application across many sectors of the African society. The idea is that in the
family, in the community, in the country, in business one management system is applicable.
The contemporal African management system is this;

According to Osuntokun J (2001) specialization and division of labour are inherent in the
African concept of management. In the African set up, hardwork without ceasing does not
always produce success unless it is tempered with leisure and relaxation. Hard work alone
does not guarantee success unless it is based on exchange of ideas with others.
Generally, Africans have a systematic approach to solving human problems based on
historical and practical experience. The same approach is used in all kinds of societal
problems, even in trade and management of any entity. Traditionally Africans, when
attacking challenges, move from the real to the ideal. Collective wisdom is considered better
than a solitary approach to solving problems. Concerning the classical and human relations
management theories, it is argued that both the classical and the human relations theories of
management were originally born from the traditional African management system that
existed anciently in before the birth of Christ. The theories are decoded from traditional
African management system. This system preserve humanity, human identity,
belongingness, human development more important than objects or wealth. Wealth defines
a person commitment to African values, humanity and communism.

7. CONCLUSION.
It is undeniable that the studies and research that has been made to come up with theories
titled classical and human relations management theories is a bold attack to problems that
need solutions. Society being a complex institution that needs intelligible managers capable
of passing on knowledge for the prosperity of all the sectors of society. Business or trade is
one but one of those societal aspects that has to be managed to bring about the much-needed
resources. There is some kind of satisfaction humans derive from the availability to have
resources to afford what they want because the world economy places demand of money.

In this essay the contribution made by classical management theories has been recognized
and discussed although briefly. The same applies for the human relations management
theories. The application of these theories in the unique nature respectively or blended has
brought about tremendous growth, efficiency, high productivity and high quality of products.
These improvements are recognized and noted. It is also an undeniable fact that each theory
in its original form has shortcomings. For example, it is argued that the human relations
management theory was born from attending the shortcomings of the scientific management
theory, propounded as an alternative. The writers view is that if a view is born because an
original view is being improved notwithstanding the direction the later view is taking, that
view is born from the original view. The human relations view is an improvement of the
scientific view of management.

A case study has been conducted in this essay of two organizations I Toyota Company and
Coca Cola company. The reason for selecting these companies is purely for their location in
the world and the cultures they are born from. The Toyota Company is situated in Japan and
born from a highly traditional and cultural nation. This means that the administration model
of this company is influenced by cultures and traditions prevailing in Japan for the Japan
people. The same applies with Coca Cola that is originating in America with the American
culture influencing it. What is a similar trait in both companies is that both have blended
their administration models with both the classical and the human relations management
theories.

Companies and firms, although inclined to make more profits, have faced the reality that
consumers do have power to decide whether or not they buy their products. The campaign
by consumers has been to support companies that are democratic in their dealings with
employees and communities, to support companies that take care of the environment and
other demands. Companies have realized this soft power of consumers and the competition
for a market share have forced them to adhere to people’s demands and expectations. The
trend is therefore to more human even in management.

This essay realizes the importance of different societal management systems that prevailed
before industrialization and mechanization of tools. These management systems are founded
on ancient principles that places humans in the correct position of supremacy and importance
over money and wealth. A study of the different nations traditional management systems and
their application may save us from Taylorism which may be brought about by the rush to
artificial intelligence and all its prospects in so far as removing the human aspects in the
scheme of productions and all his problems. Any idea that seeks to remove humans may not
succeed and is destructive to nature. From time immemorial nature would seek to remedy
the problem and thereby more problems created for humans to deal with. The solution is
therefore aligning more with humanistic approaches.
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