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Copperbelt University

Directorate of Distance Education and Open Learning

Master in Business Administration (Finance)

GBS 550: Management Theory and Practice

Assignment #4

A Review of the Michigan Leadersip Studies

Written by

Ignatius Kasela Zulu

SIN: 20900369

Lecturer: Dr Monica Muiru

23rd March 2021

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Abstract

The study "Effects of classical management theories on management practices in National

Breweries" was conducted. The aim was to assess the extent of application of scientific,

administrative and bureaucratic management theories in National Breweries and the effects of

this application on the progress, development and growth of the organisation. This study used

a descriptive research method, namely survey research. Three hypotheses were tested using

chi- square and linear regression. The study population consisted of 10 employees of National

Breweries Plc. A sample of 10 was selected using the Taro yamene form to determine the

sample size, and a stratified sampling technique was used to distribute the questionnaire for

data collection. Frequency tables with simple percentages were used to analyse the data

obtained. The study showed that the application of scientific management. Administrative and

bureaucratic theories in the management of various organisations contributed to wastage, staff

turnover, dismissal of employees, slow growth and development of the organisation and low

productivity of organisations. The study concluded that given the current performance of the

National Breweries Organizations, more needs to be done on the way conventional

management theories are applied so that the employees are more motivated to work in a

supportive environment. It was recommended that for organisations to achieve the goals of

effective and efficient productivity, they must understand, accommodate, embrace and

promote people

dynamics (nature, needs, values, motivations and general cultural and political environmental

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differences). Organisations must also periodically review their rules, regulations and manuals

to ensure that current trends in the business environment are present. Finally, the organisation

must allow for initiative, innovation and employee participation in decision making.

Key words: conventional management, management practice, National Breweries

Introduction

The study of classical management ideas, which form a set of concepts that emerged in the

1800s, has its roots in the study of organisations. The effects of this set of theories on the

organisation were and are profound. These effects are evident in almost all complex

organisations. The word that comes up most often in connection with the classical conception of

organisation is "structure" (the structure of the formal organisation). An organisation is defined

as a formal association of persons with a common purpose and defined objectives to be achieved

under authority and direction (Onwuchekwa, 1993:2). An organisation is also defined as the

structure of relationships, authority, goals, roles, activities, communication and other factors that

exist when people work together (Ile, 1999:55). Scientific management, administrative theory

and bureaucracy theory are the three streams of classical management theories that have

emphasised this view. Therefore, the classical theories have been developed in three streams:

scientific management, administrative theory and bureaucracy theory ;

(a) The theory of scientific management developed by Fredrick Winslow Taylor (1856-

1915).

(b) The theory of administrative management, developed by Henri Fayol (1841 - 1925) and

(c) The theory of bureaucratic management proposed by Max Weber (1864-1920).

All three currents were based on the same assumptions. The practical effects of the

three currents are essentially the same, since they were developed around the same time
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(1900-1950). However, each of the three currents was developed by separate groups of

authors who worked almost completely independently from each other.

The theory of scientific management, formulated by Fredrick Winslow Taylor (1856-

1915) and others such as Henry L. Gant (1861-1919), Frank B. and Lillian M. Gilbreth (1868-

1924) and (1878-1972) respectively, focused on the need to increase productivity, especially

in the United States of America, where skilled labour was scarce in the early twentieth

century. The proponents of scientific management were convinced that the only way to

increase productivity was to increase the efficiency of the workforce.

The theory of administrative management, developed by Henri Fayol (1841-1925),

arose primarily from the need to find guidelines for managing a complex organisation such as

factories. He therefore focused on authority and its implementation in the workplace. He

developed five functions of management, including;

Plan, organise, command, coordinate and control, with 14 principles that he considered

common to all organisations.

The theory of bureaucracy, developed by Max Weber (1864-1920), focuses on the position in

an organisation, which according to him should follow the principle of hierarchy (each lower

position is subject to the control of a higher position), i.e. organisations should strictly define

their hierarchy, governed by clearly defined rules and lines of authority (Stoner, et al,

1992:63). This paper therefore focuses on discovering the effects of the three schools of

thought on current management practices in National Breweriesn's organisations and to do

this it is necessary to define the problem.

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Problem statement

The three currents that formed the classical management theories were based on a similar

assumption and their practical consequences were essentially the same (Ile, 1999:56). These

theories were mainly concerned with increasing efficiency and output (reducing production

costs and increasing profits). They were therefore concerned with certain principles and

practices that would ensure the effective and efficient functioning of a given organisation in

order to establish a good relationship between employers and employees and ensure the

harmonious achievement of the organisation's objectives.

However, despite the fact that these theories, which are still valid, are widely accepted, the

achievement of the organisational goals of total efficiency in these organisations remains a

mirage.

1. The current level of waste and attrition in organisations points to the shortcomings of

these principles in current management practices.

2. The dismissal of workers on an annual basis by indigenous organisations, the slow

growth and development of these organisations such as Anambra Motor

Manufacturing Company Limited (ANAMMCO), EMENITE and NIGER GAS

point to the

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shortcomings of current management practice theories in national breweries.

3. The complete closure of organisations for non-performance shows that although

classical management theories are still being applied, the desired objectives of the

National Breweries' organisations are still far from being achieved. Could this be

because the theories are not properly applied in these organisations? Or because of

other environmental effects. Organisations such as Sunrise Flour Mill, Enugu and

National Breweries Cement Company Limited, Nkalagu (NIGERCEM) have been

closed for years and their workers thrown out of employment.

Objectives of the study

The general objective of this study is to find out the effects of classical management theories

on current management practices in National Breweriesn organisations. The specific

objectives are therefore:

1. Investigating the contribution(s) of classical management theories to the current level

of waste and turnover in National Breweriesn organisations.

2. Discover the effects of applying classical management theories to the dismissal of

employees, the slow growth and development of National Breweries organisations.

3. Or the closure of some of the national breweries was caused by the application of

theories in the management practices of the organisations.

Research questions

Based on the above, the following research questions will guide the study.

1. Is the waste and turnover that exist in the organisations of the National Breweries

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today the result of the practice of classical management theories?

2. Does the application of classical management theories influence the dismissal of

employees, the slow pace of growth and development of the National Breweries?

3. Could the closure of some organisations be due to the application of theories in the

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management practices of organisations and could this application lead to poor

performance of an organisation?

Research assumptions

Based on the research objectives, the following hypotheses were formulated for the study

1 Classical management theories are a major contributor to the current level of waste and

attrition in National Breweries' organisations.

2 There is a significant effect of classical management theories on employee dismissal, slow

growth and development.

3 The closure of some organisations is due to the application of theories in the practice

of managing organisations and this application leads to poor performance of an

organisation.

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Review of related literature

Definition of the theory

The New Webster Dictionary of English Language, International Edition (2004:1025) defines

theory as: "An organised body of ideas about the truth of something, usually derived from the

study of a set of facts relating to it, but sometimes wholly the result of the exercise of the

speculative imagination." She goes on to say that theory is knowledge of science or art

derived from such study and speculation and constitutes a general set of assumptions and

principles. Theory is also a coherent group of hypotheses put forward to explain the

relationship between two or more observable facts and which can be used to provide a solid

basis for predicting future events (Stoner et al, 1992:28).

It is a systematic grouping of interrelated ideas whose task is to connect and frame

meaningful knowledge (Koontz et al, 1980:13). From the above, it can be concluded that

theory can be defined as a structure of fundamental concepts and ideas around which

knowledge in a particular field is organised; it is also a proposal, idea or hypothesis put

forward by an individual or a group of individuals on how to solve a particular management

problem.

A confirmed theory can thus become a principle (Ile, 1991:1). This is why the study of

management theories becomes important, because it determines our view of organisations,

gives direction to management decisions and is a source of ideas, as it allows us to look at

each situation from a different point of view, "the main assumption of classical organisation

and management theory is that people are motivated by financial incentives. This view is still

relevant in contemporary management practice.

Development of management theories before the industrial revolution

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The systematic study of management as a separate branch of knowledge is recent, but the

practice is as old as human society. (He, 2002:51), states that - "Management is as old as

human

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organisation". It is important to note that historically, humans have made decisions about what

to do and how to do it. Before the advent of the industrial revolution in Europe, around 1750-

1850, human society practised manual labour and looked after its organisational micro-units,

called families, by producing manual labour for some unit. This system involved staying at

home and producing, hunting, gathering and farming one thing or another. The product of

these activities was used for the family's subsistence and the surplus was exchanged with

neighbours for other items (this is called bartering). At that time, man was able to manage his

family. In other words, management began in ancient times. An analysis of this period shows

that as life progresses, management becomes more revolutionary and sophisticated. This

confirms the fact that the study of management and organisation is quite old. It can therefore

be said that over the years, various attempts have been made to explain the theories and

principles of organisation and management as we know them today.

Development of management theories during and after the industrial revolution

From the above we understand that before the industrial revolution the production system was

based on manual labour, hunting, gathering and agriculture. But during and after the Industrial

Revolution, great changes took place in the organisation of industries and the methods of

production. In these periods, machines replaced the artisanal production system. This
18th century
happened around the . In other words, the industrial revolution led to the rise of the

factory production system, which resulted in;

(a) Workers, raw materials, machinery and equipment were concentrated under one roof

or in a group of buildings used exclusively for production.

(b) There was centralised control of labour, raw materials, production and output.

(c) A clear distinction was made between employers and employees. The result of the

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Industrial Revolution was the rapid development of the factory system, which resulted

in large-scale production, using specialised machines in sequence to carry out

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operations. This created complex management problems in combining and

coordinating the factors of production. The leaders of this period were generally

autocratic, energetic and self-taught. They relied heavily on intuition and empirical

practices and procedures. The increase in size and complexity of business

organisations after the industrial revolution created additional management problems

(Ile, 2003:56).

Because of these additional management problems created by the industrial revolution, new

concepts related to the management of organisations began to be studied and developed. Thus,

a series of concepts about organisation began to be developed on a large scale. In fact, modern

management theories and principles date back to the introduction of the factory system.

Financial control techniques, incentive systems, planning systems and investment appraisal

methods were quickly developed and applied. The work of Fedrick Winslow Taylor, the

father of scientific management theory, Henri Fayol, the father of administrative theory, and

Max Weber, the advocate of bureaucracy, stands out clearly in this context. From the writings

of these authorities, other theories and principles of management were developed, which are

called "classical management theories".

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Classical management theories

Scientific management

theory:-

Koontz et al, (2005:12) argue that many different authors and practitioners have given rise to

different approaches to management, forming the jungle of management theories. This means

that although Fredrick Winslow Taylor (1856-1915) is known and recognised as the father of

scientific management, he was not alone in this field; other notable contributors to this theory

were Henry L. Gant (1861-1919), Frank B. and Lilian M. Gilbreth (1868-1924) and (1878-

1972) respectively. These individuals and their work are presented in this chapter and relate to

the current management practices of National Breweries.

a) Fredrick Winslow Taylor: In 1911, Taylor published his famous book "Principles of

Scientific Management". In this book, he advocated that managers should collect all the

traditional knowledge possessed by employees and then classify and reduce it to laws, rules

and formulas. They should then develop a "science" for every element of human work to

replace the old empirical methods and scientifically select and train workers in the new

methods. He also stated that managers should take over as they see fit certain tasks, such as

planning and scheduling of work, that used to be left to the workers. Koontz et al (2005:14)

state that the fundamental principles that Taylor believed underpinned the scientific approach

to management were:

(a) Replace rules of thumb with science (organised knowledge).

(b) Achieving harmony rather than discord in group actions.

(c) To achieve cooperation of people, rather than chaotic individuals.

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(d) Work for maximum output, rather than limited output.

(e) To develop all employees to the best of their abilities in their own interest and

in the interest of their company. Stoner et al (1995:60), also state that Taylor based

his

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philosophy on four basic principles;

1. The development of a true scientific management, in order to be able to determine the

best method to carry out each task.

2. Scientific selection of employees, so that each employee is assigned to the task for

which he is best suited.

3. Scientific education and employee development.

4. An intimate and friendly cooperation between management and employees.

Taylor believed that if managers and workers joined forces to increase production,

profits would rise to such an extent that workers and managers would no longer compete for

profits. Taylor's management system was based on time studies of the production line. He

used time studies by breaking down each task on the production line into different elements

and devised the fastest and best methods to carry out each element. He then set the amount of

work that workers should be able to do with the available equipment and materials and also

encouraged employers to pay more productive workers a higher rate than less productive

workers, using a scientific rate that would benefit both the company and the workers. This

wage rate was called the "differential rate system" by Taylor.

Despite Taylor's grand theories, which have contributed greatly to the dramatic rise in

productivity and wages, they have been criticised in the following ways;

1. Workers and trade unions felt that the approach of working faster and harder would

exhaust the available work and could lead to workers being laid off; the idea of close

supervision of workers implies a lack of initiative.

2. There has also been criticism that workers are put under unnecessary pressure to work

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beyond their capabilities.

3. The emphasis on increasing efficiency and productivity has led to managers becoming

more autocratic and exploiting workers and customers; the use of a stopwatch or

piece-

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rate system tends to dehumanise because it subjects workers to unfair restrictions and

practices.

He put more emphasis on efficiency on the shop floor by applying time and motion studies.

His management literature became shop-floor management, so that he lost sight of the general

aspect of management. That is why Ernest Dale called him the father of industrial engineering

instead of scientific management.

Henry L. Gant, born in 1861, who also worked with and for Taylor between 1880 and 1901

and who also became a consulting engineer, introduced his version of scientific management

to client companies. He introduced the system of incentives for tasks and bonuses (employees

who achieved the set standards received a bonus). This system was more widely accepted than

Taylor's piecework system. This system still has a strong presence in management practices

today.

Other followers of Taylor were Frank B. Gilbreth and his wife Lilian M. Gilbreth who

stressed that the management system should always be written. They achieved this by refining

the study of motion and time to a high stage of development in their search for the best

possible method.

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They identified seventeen basic elements in the workplace movement which they called

therblings, emphasised human factors in management and advocated the study of the

"humanities" not only in contact with engineers and natural science leaders, but also with

economists, sociologists, psychiatrists, etc".

Gilbreth's book, "Cheaper by the dozen", helped make them very popular. Their contribution

to the development of an organisational chart or schedule, which emphasises the need to

divide an operation into units and steps to be performed by different workers, is an additional

benefit. The scale is used to assess or compensate those whose performance is above or below

the norm. Administrative theory

Henri Fayol (1841-1925), was a French engineer. His most important work is Administration

Industrielle et Generate (1916). He belonged to the classical school of management theory and

was writing and researching administration and work at about the same time as F.W. Taylor in

the United States. Fayol was interested in authority and its implementation in the organisation.

He then argued for a coherent set of principles, which all organisations need in order to

function properly.

According to Stoner et al. (1995:62-63), Taylor was mainly interested in organisational forms,

whereas Fayol was interested in the total organisation and focused on management, which he

felt was the most neglected of the business activities.

Fayol believed that good management practice was based on five identifiable functions. These

functions are: planning, organising, commanding, coordinating and controlling. From these he

developed 14 principles which he considered to be common to all organisations, namely:

specialisation and division of labour, authority and corresponding responsibility, discipline,

unity of command, unity of leadership, subordination of individual interest to the general

interest, remuneration of staff, the scalar chain, centralisation, order, equity, stability of

occupation, initiative and esprit de corps

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The theory of bureaucratism: -

Max Weber (1864 - 1920), a German sociologist, developed in his work a theory of

bureaucratic management that emphasised the need for a strictly defined hierarchy, governed

by clearly defined rules and lines of authority. According to Stoner et al. (1995:63), Weber

considered the ideal organisation to be a bureaucracy with rationally thought-out activities and

objectives and an explicitly defined division of labour. Weber also believed that competence

and performance evaluation should be based on merit.

His conclusion was that bureaucratic leadership was indispensable for the mass administration

required in modern society (Albers, 1974:25). The model presented by Weber corresponds to

what many managers call formal organisation (Ile, 1999:85). Weber recognised the functional

properties of a bureaucratic system, but did not see the importance of informal organisations.

Weber's conception of bureaucratic organisation is necessary in modern business practice as a

condition for efficiency. It has much in common with the scientific school of management,

which emphasised the strict application of scientific principles to work. Its critics have blamed

it for everything: excessive bureaucracy, rigidity, authoritarianism and a general lack of a

human face (Eze, 1998:54). Critics of bureaucracy, as above, have argued that the typical

response to any new problem in a bureaucratic organisation is to create new rules or

procedures. Thus, instead of finding creative solutions to problems, the bureaucratic

organisation and its people spend precious time following rules and procedures. It is therefore

not surprising that Thompson (1961:152-171) listed the dysfunctions of bureaucracy as:

rigidity, impersonality, goal-shifting, categorisation limitation, cost of control, self-policing,

empire-building and fear. Strict adherence to rules breeds timidity, conservatism and

technicism. Individuals can legally evade responsibility for achieving the organisation's goals

by the strange bureaucratic sabotage of working within strict rules. Initiative is thus limited by

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rules and regulations. Any organisation that introduces them makes it impossible to innovate

and make major changes,

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which can make them obsolete. Eke et al (2009:56), in National Breweriesn Journal of

Management Research states that, "National Breweries as a developing country is said to be

poor because its economy has refused to grow. The problem of lack of growth or disruption of

development can be attributed to the absence of basic needs". This is tantamount to saying

that rigidity does not allow organisations to look for what will enable them to make proactive

decisions for greater productivity. However, Ekeng et al (2009:70) write in the Journal of

Policy and development studies that "culture is important to organisations because individuals

act on shared values and aspects of the organisational culture, their behaviours can have a

significant impact on organisational productivity". Therefore, it is expected that all theories

recognise that modern management is related to culture.

The relationship between scientific, administrative and bureaucratic management theories

The three currents of classical management theory, namely scientific, administrative and

bureaucratic theory, are similar and complementary (Ile, 1999:98). Their views concentrate on

the nature of man and his needs.

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the organisation. These theories advocate a formal organisation that uses specialisation and

hierarchical functional criteria to increase efficiency in achieving organisational goals.

The differences are in the following areas;

1. While scientific management focuses its unit of analysis on the physical activities of

work, administrative theory concentrates on the practical man in action and they are

called practising managers; their main orientation was to prescribe principles and other

concepts for the creation of formal organisations, while bureaucracy adopted a

relatively detached and learned view that describes them as a normative model of

organisations.

2. While scientific management was concerned with the relationship between an

employee and his or her position in the organisation, with the aim of improving the

performance of routine production tasks, administrative theorists explained how an

organisation should be created and bureaucratic theory described what an organisation

should be.

3. Scientific management focuses on production, administrative theory focuses on

management as part of the organisation and bureaucracy focuses on the organisation as

a whole.

4. Scientific management can be seen as a bottom-up theory, whereas administrative and

bureaucratic theories are, in a comparative sense, top-down theories.

5. The prescriptions of administrative and bureaucratic theory were distilled from

experience, while the prescriptions of scientific management were derived from case-

specific studies.

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Method and materials

The study was mainly conducted through surveys and interviews with workers of three

manufacturing companies in Enugu State, National Breweries, namely EMENITE,

ANAMMCO and NGER GAS. Secondary data was obtained from books, newspapers and the

internet. A sample size of 177 was obtained from a population of 320, with 5% error tolerance

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and 95% degree of freedom, using Yamane's statistical formula. 158 (89%) of the

questionnaires distributed were returned, while 19 (11%) of the questionnaires distributed

were not returned. The questionnaire was designed as a Likert scale. The researcher pre-tested

the questionnaire to ensure the validity of the instrument. The data collected were presented in

the form of frequency tables.

Analysis and discussion of the data

The data obtained in the field were presented and analysed using descriptive statistics to

provide answers to the research questions, while the corresponding hypotheses were tested

using Pearson correlation and linear regression at the 0.05 alpha level.

Is the current wastage and turnover in the organisations of the National Breweries the result

of the practice of classical management theories?

Table 1: Coded answers about the classical theories and the degree of waste and turnover

S/No Questionnaire items S.Agree No Undecided

agreement

I agree /S.

with that. Disagreeme

nt

Fre % Freq % Freq % Total

q (Fre

g)

1 Some organisational waste is

caused by the application of a

classic 14 89 10 6 8 5 158

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management? 0

2 Does traditional management

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contribute to to staff 15 96 2 1 4 3 158

turnover in our organisation? 2

3 TOTAL 29 12 12 316

Source: Fieldwork 2013

According to table (1), 292 (92%) of the respondents strongly agreed, 12 (4%) disagreed and

12 (4%) indicated that they were undecided. This implies that classical management theories

contribute significantly to the current level of waste and staff turnover in National Breweries'

organisations.

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Hello: Classical management theories contribute significantly to the level of waste and staff

turnover in the National Breweries.

Table 2 Chi-square tests Classical theories and level of wastage and staff turnover

Asymp.

Value df

Sig. (bilateral)

Pearson's chi-square 160.335(a) 8 .000

Likelihood ratio 193.493 8 .000

Linear relationship through 4.975 1 .026

linear

N of valid cases
316

SOURCE: SPSS

Table 2 is the result of the chi-square values calculated from cross tabulations of observed and

expected frequencies with response options agree/disagree, based on the responses of the

research subjects from the National Breweries production companies. Pearson. The calculated

chi-square value (X2c= 193.493) is greater than the tabulated chi-square value (X2t =15.51)

with 8 degrees of freedom (df) at the .05 alpha level (X2c =193.493, p,< . 05).

Decision rule

The decision rule is to accept the alternative hypothesis if the calculated Chi-square value is
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greater than the tabulated Chi-square value, and otherwise to reject the alternative hypothesis.

Decision

Since the calculated Pearson's Chi-Square X2c= 193.493 is greater than the Chi-Square table

value X2t =15.51, the null hypothesis is rejected and the alternative hypothesis accepted.

Therefore, we conclude that classical management theories contribute significantly to the

level of waste and employee turnover in National Breweries.

Does the application of classical management theories influence the dismissal of

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employees and the slow growth and development of National Breweries'

organisations?

Table 3: Coded responses on classical management theories and employee dismissals, slow

growth and development.

S/N Questionnaire items S.Agree No Undecide

o I agree agreemen d

with t

that. /S.

Disagree

ment

Freq % Freq % Freq % Total

(Fre

g)

1 Classical management theories are at the

root of redundancies

employees in our organisation? 148 94 3 2 7 4 158

2 Is the slow growth and development a

consequence of traditional management in

our organisation? 152 96 3 2 3 2 158

3 300 6 10 316

Source: Fieldwork 2013

Table (1) shows that, based on the total response, 300 (95%) agreed, 6 (2%) disagreed and 11

(3%) disagreed. This implies that dismissal of employees, slow pace of growth and

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development are classic management theories that affect National Breweriesn's organisations.

Ho2: The application of classical management theories has a significant influence on

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the dismissal of employees, the slowdown of growth and development of National Breweries

organisations.

TABLE 4: SPSS result of the influence dismissal of employees - slow rate of growth

and development

Special R R2 Custom DDW Standard coefficients Ssig.

features Beta T-value

R2

companies 0.-638(a) 0.407 1.03387 0.253 0.-638 -10.339 -106.890 0.000

SOURCE: SPSS

NOTE:

R=Correlation coefficient or Beta

R2=Determination coefficient

Adjusted R2 = Adjusted coefficient of

determination DW=Durbin Watson test

statistic (d)

T value = Student's t-test statistic

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F=F- test statistics

Model equation CMTH = 0-.571 - 0.932LGD

The result indicates that there is a significant negative effect of classical management theories

on employee dismissal, slower growth and development, t = -10.175, which is higher than the

rule of thumb of positivity of 2, and the coefficient of stock control is 0.571. The variations in

the model are explained by the model, as shown by the coefficient of determination (r2) of -

63.8%.

The result also indicates that there is a negative relationship between classical

management theories and employee dismissal, slow pace and development, as shown by

the r-value of 0.-614, which is negative as shown by the beta value of 0.-614.

Could the closure of some organisations be due to the application of theories in the

management practice of organisations and could this application lead to poor performance of an

organisation?

Table 5: Coded responses to classical management theories and poor performance

S/No Questionnaire items S.Agree No Undecided

agreement

I agree /S.

with that. Disagreeme

nt

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Freq % Freq % Freq % Total

(Fre

g)

1 The closure of some of the national

breweries was caused by the

location 154 97 1 1 3 2 158

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application of theories in the

organisation of management

practices

2 The closure of some National

Brewery organisations was not

caused by the application of 17 11 134 85 7 4 158

management theories.

practice organisation

3 171 135 10 316

Source: Fieldwork 2013

Table (5) shows that based on the total response, 171 (54%) strongly agree, 135 (43) disagree

and 10 (3%) disagree. This implies that the closure of some of the national brewing

organisations was caused by the application of theories in organising management practices.

Hi3: The closure of some organisations is due to the application of theories in the practice of

managing organisations and the application results in the poor performance of an

organisation.

Table 6 Chi-square tests for closure and application of theories

Asymp.

Value df

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Sig. (bilateral)

Pearson's chi-square 289.039(a) 8 .000

Likelihood ratio 311.623 8 .000

Linear relationship through 114.154 1 .000

linear

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N of valid cases
316

SOURCE: SPSS

Table 6 is the result of the Chi-square values calculated from cross tabulations of observed

and expected frequencies with response options agree/disagree, based on the responses of the

research subjects from the National Breweries production companies. Pearson. The calculated

chi-square value (X2c= 289.039) is greater than the tabulated chi-square value (X2t =15.51)

with 8 degrees of freedom (df) at the .05 alpha level (X2c =289.039, p,< . 05).

Decision rule

The decision rule is to accept the alternative hypothesis if the calculated Chi-square value is

greater than the tabulated Chi-square value, and otherwise to reject the alternative hypothesis.

Decision

Since the calculated Pearson Chi-Square X2c= 289.039 is greater than the Chi-Square table

value X2t =15.51, the null hypothesis is rejected and the alternative hypothesis accepted. We

thus conclude that the closure of some

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organisations are the result of applying theories to the practice of managing

organisations and this application leads to poor organisational performance.

Findings and Discussion

From the analysis of the data, it can be concluded that the current practice of classical

scientific, administrative and bureaucratic management theories is responsible for the wastage

and turnover of staff, the dismissal of workers, the slow pace of growth and development and

the low productivity of domestic breweries, as indicated by the three organisations studied.

Although the practice of scientific management theory contributed greatly to the dramatic

increase in productivity and the raising of workers' wages, it put excessive pressure on the

workers to work even more than they could manage, which also made the managers of the

organisations more autocratic and exploitative, leading to the frustration of the workers who

sought employment elsewhere. A theory that emphasised efficiency on the shop floor, through

the application of the study of time and motion, but lost sight of the overall management

aspect, would certainly not be able to maintain the workforce and an effective and efficient

use of resources.

Administrative theory has contributed enormously to the principles and practice of

management in modern times, but it has focused more on the task than on the people.

Unmotivated employees are bound to perform below expectations as staff morale is low.

Productivity is thus a function of ability and motivation.

Bureaucratic theory, which placed more emphasis on bureaucratic leadership of mass

management organisations in modern society, recognised the functional prosperity of the

bureaucratic system in formal organisations, but not the need for informal organisations in a

formal environment.

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Summary of findings:

Classical management theories significantly contribute to the current level of waste and staff

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turnover in National Brewery organisations (X2c= 193.493 > X2t =15.51; p< 0.05)

There was a significant negative effect of classical management theories on employee

dismissal, slower growth and development (r-value of 0.-614; t = -10.175; p<0.05).

The closure of some organisations is due to the application of theories in the practice

of managing organisations and the application results in the poor performance of an

organisation (X2c= 289.039 > X2t =15.51;p<0.05).

CONCLUSION:

Based on the above, we therefore conclude that given the current performance of the National

Brewery Organisations, more needs to be done to the way classic management theories have

been applied so that employees are more motivated to work in a stimulating work

environment. This will significantly increase the business efficiency of the staff and create a

pleasant working environment.

RECOMMENDATIONS :

In the light of the above, we recommend the following.

Organisations should reduce waste and turnover by introducing other motivational tools

into their work environment, such as the adoption of behavioural science ideas. Management

should recognise individual motivation, group behaviour and interpersonal relationships

inside and outside the work environment. These elements will promote understanding and

encourage employees to work towards the goals of the organisation as a whole, from which
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they can achieve their individual goals.

Organisations should maintain their workforces and promote growth and development

by reducing excessive management pressure on employees, encouraging employees to take

initiatives, allowing innovations and allowing employees to participate in management, with

emphasis on cultural/political differences in organisations. Joint management of participation

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in decision-making will increase productivity more than what is achieved in practice.

The management of the organisations should correctly apply the theories as some of

their aspects, if properly applied, ensure the achievement of the organisational objectives.

Periodic review of the organisations' manuals, rules and regulations to ensure that the

bureaucratic parameters are in line with modern trends in the country's business environment

will also contribute to the future of the organisations.

Above all, organisations must understand, welcome, embrace and promote people

dynamics (nature, needs, values, motivations and general cultural/political differences) if they

are to achieve the goals of effective productivity. We believe that this will greatly reduce the

negative effects of theories on organisational performance.

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