The influence of classical and human relations

approaches in management today

Othusitse S. D. Phefo

R2005D10861356

Theories of Management

UU-MBA-712-ZM-25297

30 May 2021
Introduction
Management has been in existence since the beginning of time and organizations need to accept
change and evaluate their products, services, and target market in comparison with their
competitors (Augustine & Agu, 2013). They also need to look beyond their traditional style of
business management, strategize and come up with new approaches to maintain their existence in
the modern-day corporate world. In addition, modern-day management has several comparisons
with management in decades ago even though, the current business environment needs to be
refined and or needs new approaches in order to accept change.

However, Organizations’ accountability and profitability depend on how well the business is
managed. Effective Management, controlling of the business efficiency, and developing new
strategies are bridges of classical and human relations approaches in management today and they
yield higher profits (Musa, 2020). The author also indicated the essence of effectiveness and
efficiency when emphasizing the application of classical approaches to management.

In this research, we critically evaluate the influence of classical and human relations approaches
in the current management. The following sections will focus on a compressive Review of
Classical Theories or Approaches and The Review of Human Relations Theories or Approaches.

Review of Classical Theories

Classical theories are a set of management concepts that were found in the early ’90s when
studying organizational management. They are the oldest theories of management but their effects
are still profound in the modern-day business world (Rahman, 2012; Safferstone, 2005; Taylor,
2004). Classical theories focus on the structure that governs the organization. An organization is
a controlled structure that consists of employee relations, level of authorities, goals, functions,
action plans, collaboration and teamwork, and other factors that exist in a business environment
(Rahman, 2012; Waldman & Yammarino, 1999). This definition draws the essence of challenges
of assuring efficiency and effectiveness of management in an organization which were major
elements of thought since the early ’90s.
The 3 streams of classical management being Frederic Taylors’ Scientific Management, Henri
Fayol Administrative Principle, and Max Weber’s Bureaucratic Organization were founded. The
general idea of these theories is to find the best possible approach to perform and manage tasks
and improving managerial principles.

Taylors’ Scientific Management Theory

Frederick Taylor (2004), the pioneer of management, invited scientific management (Dean, 1997;
Miller, 1976; Rahman, 2012). According to the authors (Dean, 1997; Miller, 1976; Rahman, 2012),
scientific management involves the use of scientific approaches in leadership, control, and
developing an organization hence, discarding the traditional methods in managing an
organization.

The application of Tylor’s scientific methods advocated for the efficiency of employees to the
appraise skilled human capital (Dean, 1997; Miller, 1976; Rahman, 2012). Following His
approach, he broke down duties into simpler bits and processes for unskilled workers to be able to
learn leading to segregation of duties between managers and employees. Management focused on
planning and controlling the organization when workers executed tasks as per the organizational
plan. The tasks also were broken down into steps and sequences that were followed by employees
to complete given targets hence increasing efficiency on human capital and reflecting on the
organization's goals. Further, Taylor also carried out time studies to calculate the time an employee
spends carrying a sequence of activities to fullfill assigned tasks (Dean, 1997; Rahman, 2012). As
a result, he determined the best to do a job hence solving the issue of low productivity. As he
expressed the basic philosophy of his approach he identified some guiding principles such as
(Dean, 1997; Rahman, 2012); (1) substituting working by "rule of thumb," using the scientific
approach to find an efficient way to complete definite tasks, (2) delegation of work by matching
employees to their jobs based on their ability and enthusiasm, and develop their personal capacity
to achieve high efficiency, (3) Regular observation on employee performance and provide
directives and regulations so that they use the most efficient ways of working, and (4) Divide work
between managers and staff so that the managers focus on planning and training, allowing the their
subordinates to do their work efficiently.

Taylor proposed his theories during a change in industrialization moving from manual labor when
technology introduced the use of machines. His theories were successful in economic efficiency,
and labor productivity and there were common in manufacturing industries. The production of
beer in beverage industries is relevant example.

Kgalagadi breweries produce alcohol products that are cost effective to the factory and affordable
to the community. The factory applied Taylor’s theories and revised its roadmap to increase
efficiency and productivity. This revision involves a labor and a process of producing a beer from
its initial stage of preparing malt until a beer is filled in a can/bottle, sealed, packaged and ready
for the market. In this process, there is a time sequence spent in each stage; where labors perform
their individual tasks involved in the process of making a beer. Kgalagadi breweries reviewed and
streamlined the process by the use machinery as the industry evolved and reduced the average time
of production to meet high demands of alcohol.

The beverage industry facilitated mass production of alcohol beverages consumed by the target
market at affordable rates. This concept is a outcome of scientific management theories that are
still profound in today’s administration and management.

Fayol’s administrative Principle Theory

Henri Fayol (14 C.E.) also known as the founding father of scientific management, is well
experienced in the field of administration and management, and he was widely respected as the
inventor who operationalized management theory. His theories emphasize the total performance
of the Organization by tapping a management structure in place to coordinate activities and control
resources (Fayol, 14 C.E.; Rahman, 2012). He has appreciated the credibility that a business
consists of six functions which are technical, commercial, financial, security, accounting, and
management. He believed that managers required specific roles to be effective so, he found 5 key
managerial functions such as forecasting and planning, organizing, coordination, command, and
control of existing resources to fulfill a common goal (Rahman, 2012).

Henri Fayol also proposed the features and expertise that managers should possess, and these are
physical qualities, mental ability, moral education, special knowledge, and experience (Rahman,
2012). On the other hand, Fayol stated that managers are responsible for planning, organizing
commanding, coordinating, and controlling resources in an organization (Rahman, 2012). He
highlighted the productivity of the organization and promoted 14 principles as a guide for
performing managerial functions. These 14 principles are highlighted below (Rahman, 2012).

1. Division of Labor: work should be divided into portions and allocated to responsible
employees.
2. Authority and responsibility: managers are given the power of authority and they are
responsible for controlling resources and instructing their subordinates.
3. Discipline: effective management in an organization is also a result of respect in
organizations
4. Unity of Command: an employee and can only have one supervisor, superior, or manager.
5. Unity of Direction: a supervisor should have one plan, manage one team and have a clear
goal.
6. Subordination of individual interest to the general interest: The general interest of the
organization should drive the inspiration and motivate employees. Managers should be
inspired to succeed their subordinates' interests on assigned tasks.
7. Fair Remuneration: fair salaries and wages promote commitment and loyalty for employees
and the employer.
8. Centralization and Decentralization: Management should focus on planning, regulating,
and leading the organizational and delegate to subordinates accordingly.

9. Scalar Chain: organizations should maintain a flow of level authority from the top
management to the lowest front line workers.
 10. Order: Efficient distribution and utilization of resources.
11. Equity: fair treatment to all employees promotes a healthy environment and increases
efficiency
12. Stability of tenure of personnel: Organizations provide employees with the right tools to
learn their jobs and promote training and development to increase employee efficiency.
13. Initiative: organizations should provide a flexible environment for employees to develop
and use their skills and abilities to contribute towards building the organization
14. Espirit de Corps: Teamwork is key to realizing a common goal.

Tylor and Fayol's principle of management highlights the essence of cooperation between the
employers and employees and the essence of employees and management at all levels. However,
this study appreciates Fayol’s approach and its relevance in the modern-day cooperate world;
financial institutions apply Fayol’s principles of management theories.

Financial institutions such as banks are composed of sections such as finance, Business
Performance, Operations, Risk Management, etc. Thiers structures are defined by a level of
management which consists of executive directors, chief executive officer, and board of directors,
and other senior management roles. These roles oversee the overall direction and strategy of the
banks, and they are the ultimate source of authority. Middle management consists of various heads
of departments, groups, and directorate heads; who carry out the plans of the organizations
according to policies and directives laid down by top management. They manage and coordinate
the activities and procedures of their subordinates which the next level of managers and
supervisors.

Carrying out tasks and following processes in a financial institution is complex and exposed to lots
of policies and regulations to avoid fraud. This draws the essence of the application of the 14
principles advocated by Fayol’s theory. In its application, employees are guided and acts within
their authority, and hence, disobeying regulations and policies could lead to practices of fraud.
This is a result of abiding by policies and procedures put in place by the bank authorities.
Henry Fayol’s administrative theories lead an organization to success in achieving common goals
and objectives efficiently and effectively. It is largely focused on productivity through training and
developing management and employees. Its relevance is applied in today's management; it is
widely accepted and practiced by organizations.

Weber’s Theory of Bureaucracy

Max Weber embraced and reinforced Henri Fayol’s Administrative principle and projected
management and administration to be detached and sensible. His resulted-on organizations that
were personal and family-like businesses where the loyalty of employees was set to an individual.
As a result, employees had a tendency of making decisions based on sentiments and personal
reasons (Jain, 2004). In that regard, the author argued that bureaucracy; a system for managing an
organization driven by officials employed to follow regulations carefully, was the most efficient
and rational model organization should operate in. This theory influenced generations of the
organization well into the 20th century and unlike most leaders today, weber emphasized strict
rules and a firm distribution of power. However, this literature realizes that this practice would
have scolded today's managers of creativity and teamwork in the workplace hence opposing a
flexible environment for employees.

In addition, Weber theory had limitations with rules and regulations and hence, imposing on
controlling and dealing with employees. As an example, Government organizations do not belong
to any department; they stand on their own. They are different from other organizations such that
they are businesses lead, controlled, and coordinated by the Parliament. This an exact practice of
bureaucracy; government institutions strictly adhering to the rules and distribution of authority
from the parliament.

Drawbacks of Classical Management

Taylor, Fayol, and Weber contributed immensely towards the development of the administration
and management of organizations, expressed on efficiency and high productivity on employees
and processes, however, the pioneers of classical theories pose several drawbacks. The classical
management principles theories did not address; the wellbeing of workers but focused on
increasing the output of employees. They focused on increasing financial rewards leaving
recognition of employee’s contributions and other incentives. They also excluded social
interaction; a way of promoting a healthy working environment for employees (Safferstone, 2005).
According to Safferstone (2016), these issues are reasons for the foundation of Human relations
theories.

Review Human Relations Theories

The classical/scientific management approaches failed to deliver its primary goal on employee’s
efficiency operation under efficient control hence a challenge for management (Safferstone, 2005).
The approaches did not recognize the basic factor that enables an organization to stand out to their
customer and attract more, promotes healthy working and employee development. These
sentiments enable an organization to be competitive in the current market. This shows that human
factors very important and are employees high motivation effort.

Elton Mayo and Maslow examined factors and conditions that motivate employees leading to the
importance of human relations in an organization. The theorists focused on and investigated Work
atmosphere, incentives, supervision effects, and as result discovering the drivers and sustainability
of human behavior (Musa, 2020). The 2 theorists’ contributions are explained as follows.

Elton Mayo initiated the Hawthorne Studies, which was well appreciated in the field of
organization relations approach. Mayo’s study focuses on employees' efficiency and productivity
concerning employees' working conditions. It recognizes an employee’s performance such that if
given proper attention production can increase efficiently (Bruce, 2006). The author believes that
if the employer takes good care of his workers, it will promote more loyalty and motivate them to
increase production hence yielding higher profits. According to the author, an employer cares for
their workers, they feel more valued and empowered. In regard, Elton Mayo’s approach is relevant
in today’s management and yet it is lacking in many organizations. However, Organizations such
as Debswana, BoFinet and Lucara have a good welfare policy that places more emphasis on the
health and the wellbeing of their employees. Water Utilities Cooperation offers free medical and
housing assurance to its employees, Botswana Railways offers matinity leave for leaves for women
for a period of 3 months with a provision of feeding hours after 3 months when other organizations
even offer paternity leaves for men. These examples are motivate employees and they are relevant
in today’s management.

Besides Mayo’s theories, Maslow’s (1908-1970) Theories of Human Relations assumes that even
though human needs cannot be completely satisfied, they can still be satisfied from different levels
of needs (Einstein et al., 2016). Maslow's theory of human relations is illustrated in a form a
pyramid, starting with self-actualization at the top level followed by esteem, love/belonging,
safety, and physiological accordingly. The hierarchy of the needs is explained a follows (Einstein
et al., 2016);

1. Physiological: this level is crucial and needs to be fulfilled to determine the employees'
fitness to be effective and efficient in executing duties. Some organizations over lunch and
refreshment, to fulfill this level.
2. Safety: Security in any organization is of utmost importance. No employee can be
comfortable in a work environment that does not guarantee their safety.
3. Love/Belonging: The organization needs to promote love and a sense of belonging for
employees to feel part of the environment. Peer groups, learning groups, etc offer a sense
of belonging and enables growth in employees.
4. Esteem: is a very important element in an employee. It instills confidence in them and
confident employee excel in their duties.
5. Self – Actualization: At this level, employees are at a point of self-discovery realizing that
all their needs have been catered for. Employees will excel knowing that they can achieve
whatever they can.

As an example, A Managing Director of the beef industry in Botswana is entitled to housing

allowance, petrol allowance, a credit card, a corporate vehicle, residential security, etc. As a result,
the factory has satisfied all employee’s needs and hence, is expected to work and achieve the set
goals without any worries.

After going through literature on the human approach to management, the study has realized that
human relations theories are psychological and they enable organizations to influence the behavior
of employees to efficiently increase productivity. Mayo and Maslow appreciate that employees are
humans with needs that need to be satisfied so that production can be increased efficiently.

Employees' needs defined by Maslow's theories should be included in the planning of an

organization (Einstein et al., 2016). An employee's growth should complement the development
of an organization and the employer invest in training and developing employees, their safety and
their general well-being, etc. An employer who invests in his employees gets an increased
production and yield higher profits.

Conclusion
Even though Classical and Human relations theories at still subject to critiques, they address issues
of efficiency and effectiveness that are still present in the current administration and management.
Classical management theories increase efficiency and productivity while human relations
emphases on satisfying certain levels of employees' needs in a form of a hierarchy considering
both financial and non-financial needs. These principles are very much relevant in management
today and their combination could be a power steering of successful full organization.

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