Classical management theory and scientific management

unsullied charge opening and scientific focusThe stainless circumspection Theory is thought to have originated around the form 1900 and dominated counsel thinking into the 1920s, focvictimization on the efficiency of the dally process. It has three schools of thinking scientific man get on withment, which looks at the silk hat way to do a strain Bureaucratic management, which focuses on rules and procedures, hierarchy and pass on division of labour and Administrative management, which emphasises the flow of information within the arranging.Scientific counselFrederick Winslow Taylor (1856-1915) is known as the father of scientific management. His approach emphasised empirical interrogation to increase organisational productivity by increase the efficiency of the production process. In the United relegates especially, skilled labour was in short supply at the beginning of the twentieth century. The that way to expand productivity was to raise the efficiency of workers. Scientific management theory states that romps should be designed so that severally worker has a well-specified, well-controlled task and specific procedures and methods for all(prenominal) job must be strictly followed.Taylors management theory rests on a fundamental picture that managers be non only superior intellectually to the average engagementee, scarcely that they have a overconfident duty to supervise staff and organise their work activities. Thus, it was only applied to low-level r egressine and crying tasks that could be managed at supervisory level.Taylor developed four principles of scientific management1. A best methodological analysis should be developed scientifically for each task.2. Managers should select the best person to perform the task and go over that the best training is given.3. Managers be responsible for ensuring that the best person for the job does the job using the best methodology.4. Remove all responsibility for the work method from the w orker and give it to management. The worker is responsible only for the actual job performance.Taylor based his management system on production-line time studies. Using time accept as his base, he broke down each job into its components and designed the quickest and best methods of playacting each component. He also encouraged employers to pay more(prenominal)(prenominal) productive workers at a high rate. Scientific management became very popular in the early part of this century as its application program was shown to lead to remediatements in efficiency and productivity.Advantages of Scientific concern- Introduced a scientific approach to management.- Improved manufactory efficiency and productivity.- Used as a model upon which the creation of modern assembly lines was based on.- Allowed managers to get workers for higher performance and productivity through the differential rate system.- Built a sense of co-ope ration surrounded by management and workers.Disadvantages of Scientific Management Limited by its underlying assumption that workers were primarily motivated by economic and physical needs. It in that locationfore overlooked the desire of workers for job satisfaction. Led, in some cases, to the exploitation of workers and it has been much suggested that scientific management was at the centre of m either strikes prevalent in those days. Excluded the tasks of management in its application. In let offed an prideful leadership approach. Focused only on the internal operations of the organisation.Bureaucratic managementMax weber (1864-1920), known as the father of Modern Sociology, was the first person to use the term bureaucracy to find a particular, and in his visual modality superior, organisational form. He considered the ideal organisation to be a bureaucracy whose activities and objectives were rationally thought, whose divisions of labour were explicitly spelled out. He believed that technical competence should be emphasized and t hat performance evaluations should be do entirely on the basis of merit. Weber defined the key elements of a bureaucracy asI. 1. A well defined hierarchy with a clear chain of command where higher positions have the empowerment to control the lower positions.II. 2. Division of labour and distinction of skills, where each employee will have the necessary expertise and authority to complete a particular task.III. 3. Complete and accurate rules and regulations, in writing, to govern all activities, determinations and situations.IV. 4. impersonal relationships mingled with managers and employees, with clear statements of the rights and duties of personnel.V. 5. Technical competence is the basis for all decisions regarding recruitment, selection and promotion.Webers model of bureaucratic management advanced the formation of huge corporations such as ford.Bureaucratic Management Contributions Ensured that the organisation would be operated and managed by qualified/high calibre per sonnel only. Allowed many another(prenominal) organisations to efficiently perform routine organisational tasks through job specialisation. Allowed management and employees to be more objective in their judgement and approach due to rules and procedures for doing specific tasks world clearly set. Placed emphasis on job position, specialised employees and job continuity thus providing the organisation with long-term perspectives and quality employees. Surpassed the loss of any employee or even of any manager due to the temper of job specialisation. Hence in such a bureaucracy, anyone throne be replaced.Bureaucratic Management Limitationso Overwhelming concentration on authority discourages innovation and creativityo Imposed a egg and structured chain of command which is not compatible with organisations that require flexibility and rapid decision-making. This is truer now where organisations argon constantly faced with a turbulent external environment of increased competition. o the emphasis on impersonality and division of labour leads to boredom, dissatisfaction and discontent within the workforceo rules and procedures may become so substantial in their own right that there is a tendency to forget the underlying processes that they argon meant to irritate more efficient.Administrative ManagementHenri Fayol (1841-1925) was a French industrialist and one of the most influential early management thinkers. Scientific Management was concerned with increasing the productivity of the shop floor. classical Organisation Theory grew out of the need to find guidelines for managing such complex organisations as factories. An early attempt was pioneered by Fayol to identify the principles and skills that be effective management. He believed that sound management practice falls into certain patterns that can be identify and analysed. He focused on management, which he felt had been the most neglected of business organisation operations. Based on his experience i n management, he developed fourteen general principles of management1. Division of Work and specialisation to produce more work for less effort.2. Authority to give orders and the power to exact obedience.3. Discipline and admire between a firm and its employees.4. Unity of command where an employee receives orders from only one superior.5. Unity of direction where there is only one central authority and one plan of action.6. The general interest is superior to separate interests.7. Remuneration is fair and provides satisfaction both to the employee and employer.8. in that location is centralisation, where there is al slipway one central authority.9. There is a scalar chain, where a chain of authority exists from the highest level to the lowest ranks.10. Order, where the right materials and pot ar in the right place for each activity.11. Equity, kindliness and justice are seen throughout the organisation.12. Stability and elevate of personnel to maintain a stable work force.13 . Initiative is encouraged to motivate employees.14. Esprit de Corps is treasure as important, and teamwork is encouraged.Before Fayol, it was generally believed that managers are born, not made. Fayol insisted, however, that management was a skill like any other one that could be taught once its underlying principles were understood.Chester Barnard (1886-1961) developed the concepts of strategic planning and the Acceptance theory of Authority, which states that managers only have as much authority as their employees allow them to have. It suggests that authority flows downward, but depends upon betrothal by the subordinate. Barnard considered that the acceptance of authority depends on four conditions1) That the employee understands what the manager wants them to do.2) That the employee is able to comply with the directive.3) That the employee thinks that the directive is in line with organisational objectives.4) That the employee does not think that the directive is contrary to their personal goals.Barnard believed that each person has a district of indifference within which the individual will willingly accept orders without consciously questioning authority and that it is up to the organisation to broaden each employees zone of indifference.Advantages of Administrative Managemento Viewed management as a profession which can be trained and developed.o Offered universal managerial guidelines.o Promoted communication between managers and employees.o Highlighted the needs of employees through the unity of command, unity of direction, equity, etc.o Encouraged employees to act on their own initiatives.Disadvantages of Administrative Management- Lacked consideration for organisations environmental, technological and personnel factors, due to the blind application of Fayols concepts.- Fayols recommendations are too experience-based and therefore not driven by formal research. Hence its concepts have not been tested.Although these schools, or theories, develope d historical sequence, later ideas have not replaced earlier ones. Instead, each new school has tended to concomitant or coexist with previous ones. The ideas of classical theorists have many applications in the management of todays organizations although with some modifications. legion(predicate) of the internal contends faced by managers during earlier periods were similar to those faced by managers today. For example, Taylors concern for the productivity of employees is still shared by managers. Even today, the Scientific Management Theory is still relevant. While not as popular as in the past, this method of job design is still used. This sort of task-oriented optimization of work tasks is nearly ubiquitous today in industry, and has made most industrial work menial, repetitive, tedious and cheerless this can be noted, for instance, in assembly lines of car manufacturers and fast-food restaurants like McDonalds and KFC. McDonalds divides its complete operation into a image of tasks such as supervising, cooking operations or operating a deep fryer and assigns people to carry out these tasks. The modern crowd together car assembly lines pour out finished products windy that Taylor could have ever imagined. In addition, its efficiency techniques have also been applied in the training of surgeons.Todays armies employ Scientific Management. Of the key points listed a standard method for performing each job, select workers with appropriate abilities for each job, training for standard task, planning work and eliminating interruptions and wage incentive for increase output all but wage incentives for increased output are used by modern military organizations. Wage incentives earlier appear in the form of skill bonuses for enlistments. Furthermore, industrial engineers today are still taught the methods of Scientific Management including time and motion studies, job-tasks analysis, wage-incentive determination and detailed production planning with respec t to the field of operation research and management.The Bureaucratic Management is still used in the USA by service-based organizations such as libraries. atomic number 53 concrete example where Fayols Bureaucratic Management ideas are still in use is at the Wichita State University Libraries. Bureaucracy is also still being used in the US Postal Service.In Mauritius, mass production lines and piece rate systems are used in the garment and manufacturing industries. Another industry where the Classical Management Theories are still in use is in the sea-food hub, more specifically at the Mauritius tuna fish Processing Plant.Mauritius and its economy are at a pivotal point. The pace of change is exhilarating. That is why in his budget speech 2008-2009, Hon. Rama Sithanen, minister of religion of Finance pointed out the urgency for our economy to shift from the traditional pillars to a service-oriented economy and to a knowledge-based society. For instance, he advocated that the ICT sector must add to the pillars of the Mauritian economy. Business leaders bear ICT to have a greater impact on their business. The industries experiencing the greatest change are the technology, telecommunications and financial services. The Minister also stressed on the development of the SMEs as he formulated that in terms of job creation, new jobs will come mostly from small businesses and medium-sized companies.But since the formulation of the Classical Management Theories in the 18th century, the economic landscape has changed. Businesses do not exist in a vacuum. They are in fact open systems with constant and dynamic interaction with the environment. Todays business environment is global and highly competitive. Managers are becoming increasingly aware of the effects of the business environmentThere are two aspects of the business environment, namely the internal and the external environment. The internal environment relates to those factors that the organisation can relative ly control. These are the owners, employees, customers, suppliers, government activity and pressure groups. But the external environment that constitutes the PEST (Political, Economical, Social and Technological) factors is relatively remote from what the organisation can control. Without the ability to analyse the strength and weaknesses of the internal and the opportunities and threats of the external environments, managers risk making decisions that are not in the best interest of the organisation. At the same time, worldwide concern about(predicate) the natural environment has emerged. underway natural environmental concerns are pollution, climate changes, ozone depletion and other global issues like biodiversity, adequate water supplies, creation and food security. As McDonalds concluded, todays managers have to be concerned not only with the scientific facts but with national perception.Todays business environment is characterized with changes, innovations and uncertainty . It is becoming more challenging amid global economic slowdown and turmoil in the financial sector. Businesses must at all cost adapt or die. Out of five businesses experiencing a disaster or extended outage,a) Two never re-open their doors.b) One of the remaining three will button up within two years.The business environment is exceedingly tough and competitive. Competition is intensifying in many sectors. Technology is constantly creating new opportunities and threats. There are changes to the regulatory environment the advent of the Equal Opportunities displace being a clear example. Customer tastes are also changing providing a moving target. keen companies operating in highly competitive business environments are working very hard to improve efficiency and productivity, test high-yielding new initiatives, and differentiate themselves from competitors.Command and Control Management style (as stated in the Classical Management Theories) is effective in an environment where b oth change and competition are express mail and there is plenty room for error (high profit margins). Such is not the case in the age of computing and communications. In todays business environment, things change very quickly and profit margins are reducing. In addition, more things are happening on a continuing basis. Because of the speed at which things are changing, it is important to carry on decision-making down in the organization to the level that has all of the information at the time when a decision must be made. This calls for very different management attitudes, it demands a democratic and flexible point of view and of course accountability must be delegated. All these are not present in the Classical Management Theories.Rapid change that is sweeping through every aspect of the business environment today prompts managers to rethink the ways they do things. Although the Classical Management model has evolved kinda a bit, it is still accommodate to a rigid structure and command-and-control mentality. This model was well tailored to an environment where change was slow and evolutionary rather than rapid and revolutionary. It helped organise processes and foster a sense of accountability, order and discipline. What it lacks is flexibility, making the organisation irresponsive to unvarying internal and external environment changes. We have reached a limit to what can be accomplished using the Classical Management approaches. But by changing the way managers do things, that constraint can be removed. This is not to say that the basics of Classical Management should be ignored, but they are just not enough to get the job done in todays business environment.Although Classical Management Theories are quite useful in the early stages of economic development, they are not an adequate explanation of how to administer organisations in a complex, developed society. When it comes to seeking cost, efficiency, productivity and profitability improvements, the Cl assical Management Theories have a curb field of action. Managers need to get used to the idea that what worked yesterday wont tomorrow. They need to work on tomorrow today. When the business environment becomes more challenging, it is actually an opportune time for managers to think about ways to reinvent their business. We find that new managers are willing to investigate innovative solutions to business problems because they are unhampered by the limitations of tools and methods of the past. It is not so much that established managers are not willing to change it has more to do with that fact that they are using methods that were designed for different circumstances. And they worked. So, established managers have to be inclined(p) to discard something that has been effective for them. Managers need to use todays tools to solve todays problems. They must be willing to learn about new ways of doing things.To compete successfully in the global arena, managers must now act as entr epreneurs and create new business models rethink, re-plan, strategize, innovate and learn never-endingly. Innovation is the most important source for organisations to puddle competitive advantage, and advanced innovation management is critical to a businesss sustainable development. Classical Management theories slang catch up with the dramatic changes of the business environment. Once-reliable guides for managerial actions no longer exist. In an environment almost bereft of the old rules of conducting business, there is no safety net. Every process, procedure, rule of thumb and standard ratio is being challenged, re-engineered and morphed into a new form. This fundamental change has brought a daunting new reality to the challenge of growing and managing business.ConclusionToday, organizations are mostly influenced by the external environment (fierce market share competition, continuous technology change, globalisation, hiring and retaining qualified executives and front line wo rkers) that often fluctuate over time. Yet Classical Management Theories present an image of an organisation that is not shaped by external influences. Classical Management Theories are now gradually fading for the principal reason that people and their needs are considered by Classical theorists as secondary to the needs of the organisation. Nowadays, The Scientific approach is very seriously challenged by Human resourcefulness Management. Furthermore, The Bureaucratic Management is fast giving way to the Matrix Structure in organisations. However, Classical Management theories are important because they introduced the concept of management as a subject for intellectual analysis and provided a basis of ideas that have been developed by subsequent schools of management thought.