UU-MBA712-Theories of Management

Week 4 – Assessment Point 1

Evaluate the influence of classical and human relations approaches in management today
By

Joy Popoola
Introduction
Organizations require structure to function and this is built through the process of
delegation of authority. This process is usually a top-bottom approach. Management is key and
vital. We all deal with elements of managements. We manage our goals, families, subordinates,
bosses, etc. According to Wikipedia, management is derived from the English word “manage”
which an Italian word is meaning to “handle” comes from the word “manus” (hand) and “agere”
which means to act. According to Mahajan (2019), Management is a word used to describe all
the processes, functions and techniques used to get thing done in an organized environment by
efficiently utilizing the resources to achieve organizational results.
The characteristics of management includes the follow;
1. Process – this simply implies that management involves the planning, organizing,
staffing, directing, and controlling performed to meet and achieve organizational goals.
According to Juneja (2015), management as a process can be a social process, an
integrating process and a continuous process.
2. Goal oriented – Management is applied to get/achieve a result. Most often the goals are
targeted to be achieved in an efficient and profitable way.
3. Social Process- Management deals with people and also requires people to get things
done.
Management is key for smooth and effective running of an organization’s activities and
successful implementation. Management includes efficient business functions, mobilization,
combination, allocation and utilization of physical financial. Managers are responsible carrying
out management activities through effective leadership. Moreso, Mahajan (2019) highlighted the
nature of management. He explained that management can be seen as a science, art, profession
and or administration.
Management as a science establishes the fact that management is an organized body of
knowledge which is used by managers for effective decision making. It is a science, developed
and formulated through research, experiments and processes hence it is scientific in nature. Its
principles and techniques can be applicable in the organization, society and the economy at large.
Management is also referred to as an art as it has practical applications hence not abstract. In
order to achieve result the manager is expected to be creative and innovative. Mahajan (2009) to
become an efficient manager one has to have sufficient theoretical knowledge of management.
Hence a combination of training/formal education and experience is required for adequate
management. The training and formal education can be gotten from a formal training institute
which makes the manager a management professional. Management and administration is seen
to be different yet similar. Mahajan in his book explained that management is linked with
performance of business activities while administration is non-economical and non-business
related. Administration is believed to be wider than management even though management is
seen to be more dynamic and innovative. (Mahajan 2009).
According to Waldman & Yammarino (1999), the levels of management is made
obvious by the responsibility, authority, functions and roles within the organization. The amount
of power an authority a manager possess can be used to determine the manager’s level within the
organization. A manager is referred to as someone who is in charge of an organization or a sub
group. A manager is said to possess formal authority which conveys status. In big
organizations, the organization is usually divided into 3 levels; namely the top level, middle level
and the lower level. Whereas in small organizations the organization may be divided into 2
levels only. In big organizations, at the top level decision making on high important issues is
taken. The overall control of the organization is done at this level as well as policy formation,
planning and forecasting. The middle level are usually regarded as the link between the top and
low level in organizations. They are responsible for performing the direct managerial role of
planning, organizing, and controlling the lower levels while the low level are seen to be in direct
contact with the workers, giving orders, supervising and assigning job roles.
This write up will focus on the influence of classical and human relations approaches in
management today.

CLASSICAL/SCIENTIFIC THEORIES AND HUMAN RELATIONS THEORIES

Today, the work environment has changed compared to the times before now. These
changes both within the internal and external environment is been amplified by the advancement
in technology, competition, globalization, etc. Safferstone (2005) while explaining the history of
the olden management theories highlighted that the traditional factors of production (land, labour
and capital) were considered for efficient and effective management. Classical theories were
propounded by theorists like Henry Fayol, Henry Gannt, Max Weber, Federick Taylor, etc.
 More of the influence of this theories is obvious is how businesses activities and
productivity even with the changing dynamic in the economy. Most organizations today have
adopted the human relations management principles than the classical/scientific management
principles. This is because a well-motivated employee will be willing to increase his/her
productivity thereby increasing organization’s profitability.
Classical/ Scientific Theory
The following theories promoted the classical/scientific theory. They include;
i. Taylor’s Scientific Theory
ii. Fayol’s Administrative Theory and
iii. Max Weber’s Beaurecratic Management Theory
F.W. Taylor founded the scientific management theory on the following principles;
a. to develop a true science management that can be used to determine the process of getting
tasks done
b. to provide a structure where workers can be selected based on tasks that they can carry out
perfectly.
c. to provide a structure where workers are trained/educated and developed.
d. to provide a cordial cooperation between management and labour.
Taylor was able to create and achieve productivity using time study by studying the
people, their tasks and work behavior. Cole and Kelly (2016) explained that Taylor “studied the
jobs of a sample of especially skilled workers, noting each operation and timing it with a
stopwatch. All unnecessary movements could then be eliminated in order to produce the best
method of doing a job. The best method would become the standard to be used for all like jobs.”
Taylor was the opinion that for there to be increase in productivity there must be efficient
performance in order to eliminate the “rule of thumb” and “soildering”. Taylor opined that the
workers will perform better in any job role/task where they are highly rewarded, which is
obviously true as most.
Looking into Fayol’s administrative theory it is obvious that the theory was founded by
Henry Fayol. Pryor and Taneja (2010) mentioned that Fayol was a French engineer who worked
at a mining company. Fayol was known to be concerned with the administrative principles of
managing resources and activities of an organization. According to Fayol, an organization is
made up of technical, commercial, financial, security, accounting and managerial functions.
Coupled with Fayol’s fourteen principles his view on management in organizations was a top-
down one. The following are the fourteen principles developed by Fayol:
1. Division of Labour: With Division of Work/Labour, the entire operations of the company
is divided into phases/departments/groups/production units and employees specialize in
the various units and this promotes operational efficiency and lowers the rate of burnout
in employees.
2. Authority: Lines of Authority are defined along the entire operations process thereby
allotting responsibilities to each authority line.
3. Disciple: this essentially focuses on the behavioural aspects of employee life alongside
the core values of the organization. Discipline forms the bedrock for operational
sustainability since systems are driven by people.
4. Unity of command: this means that every employee must not have more than one next
line Manager/Supervisor to avoid confusion and ambiguity in responsibility.
5. Unity of direction: The organization should have a set of goals that ALL employees
(Managers & Employees inclusive) as this gives a sense of purpose and direction to the
organization as a whole
6. Subordination of individual interest: each member of the organization must be willing to
sacrifice their own personal interests for the collective interest of the organization.
7. Remuneration: compensation: Although human needs are insatiable and what is adequate
is often relative, the organization/manager must be deliberate in ensuring that Employees
are duly and adequately remunerated (financially and non-financially).
8. Centralization: decision-making powers in an organization must best be evenly
distributed across the entire hierarchical structure of the organization.
9. Scalar chain: Every employee in an organization must have a next-line supervisor for
hierarchy definition and efficient communication/escalation chain.
10. Order: This is a twin of discipline; Order must be maintained in the entire workflow to
achieve productivity.
11. Equity: All Employees within the organization must be treated fairly, equally and
respectfully.
12. Stability: The organization/management must do well to create the feeling of job-security
for all their employees.
 13. Initiative: Management must create an environment for employees to showcase their
creativity and initiative. This increases the self-worth and self-esteem of employees.
14. Esprit de corps: it is imperative to encourage Teamwork and to encourage employees to
have a “one-for-all; all-for-one” mindset wherein they look out for, and are supportive of
each other. This removes toxicity from the work environment.
According to Pryor and Taneja (2010), Fayol & Taylor’s Theories can be summarized
into central ideas namely Work Processes, Organizational Structures, emphasis on hierarchical
division of labor, creation of the concept of the organization as a whole. Fayol identified clear
lines of authority into a conceptual and functional unity. Similarly, Taylor’s work emphasized
the streamlining of work processes within an organization. The role of Managers is to motivate
and work with subordinates with emphasis on supporting scientific techniques, order, and
efficiency. Tayolor specifically emphasized that managers should liaise with their subordinates
in providing encouragement, help and motivation for the subordinates in order to improve their
attitude to work and emotional wellbeing as a whole. Fayol similarly noted that managers must
be aware of the abilities of their subordinates, and be willing to motivate them financially and
otherwise, develop and grow them by rewarding good work attitude and excellent performance
(Pryor and Taneja, 2010).
Max Webber’s theory of Bureaucratic management is largely viewed as most efficient
management scheme for organizations. This Theory essentially defines a highly structured,
formalized work environment with strict rules. Stoner et al (1995) explained that bureaucracy
centrally involves performance measurement against achieved result with a reward system in
place. Worthy of note is that the three classical/ scientific management theories highlight the
presence of formal organization with the goal of fostering specialization and division of labour
for productivity and effectiveness.

Behavioral /Human Relations Theory

The behavioral/human relations approach opines that increase in production and
efficiency is achieved only through the understanding of people. The Theory was founded by
Elton Mayo and his Hawthorne experiments. As far as management is concerned there is no
approach that is application in all situations. In our society today, management cannot be over-
emphasized as the importance on the society is highly effective. The human relations approach
is based on the premise of increase in production and managerial efficiency through an
understanding of the people. Hawthorne studies were conducted to determine the effect of better
physical facilities on workers output. Elton Mayo’s studies showed that a better physical work
environment or increase in economic benefits were not enough factor in increasing productivity.
According to Chandan (2011), Mayo discovered that when workers are given special
attention by management the productivity is likely to increase irrespective of actual changes in
the working conditions. The major aim of this theory was to prove that remuneration is not a key
factor in improving employee productivity. In the middle of this approach was the need to find
out the increased understanding of an employee’s motivation, needs, relationships, etc. This
theory emphasized that a work place is not just a work place but a place where employees can
interact with one another. In as much as the workplace is an important factor it is also good to
know that it does not replace the need for good remuneration.
The human relations theory is known to deal with the importance and potential of
behavioral processes in organizations. The human relations theory though propounded in the
1920s assumes that managers concern for workers would lead to increased satisfaction which
consequently will lead to improved performance. The Human relations theory is can be clearly
linked with perceived culture of the people. Kelly (2009) contended that culture is a shared way
of thinking and behaving (uniformity) within a group of people hence if employees believe that a
better work environment will make them perform better then overtime it becomes a culture for
them. Culture can be classified into the following;
 Person culture
 Power culture
 Task culture and
 Role culture
The individual is the main focus under person culture, and adequate structures are put in place to
serve the individuals. Power culture focuses on a higher authority from where other people
within the organization is influenced. In a situation where the group is unified as a whole,
working with a common goal using the right resources, it is referred to as task culture. Lastly is
the role culture which is highly controlled by logic and rationality of a specialist.
The classical approach was focused on how efficiently work was carried out. Cole and
Kelly (2016) emphasized that “the classical approach was primarily concerned with structures
and activities of formal or official organization”; while the human relations theory was focused
on motivation and job satisfaction within the work environment. It was revealed that after the
Third World War and the inadequacies of the classical/scientific theories such as neglect of
worker’s well-being, inadequate remuneration/ compensation for workers, the human relations
theorist commenced their research to find out theorist failed in increasing worker’s productivity.
They proceeded to research what would make workers increase their productivity and the human
and social factors, such as feelings, needs, perceptions, attitudes and relationship were key
factors (Safferstone, 2005).
Theorists like Elton Mayo, Mc Gregor, Herzberg, etc aimed to research what motivates a
worker focusing on supervision, invention and working conditions. Victor Vroom’s
“Expectancy theory” exerts that effective performance is not a result of effort alone. According
to him, reward can be intrinsic or extrinsic. While the “Equity theory” is focused on people’s
perception. According to Victor Vroom employees’ “sense of equity (i.e. fairness) is applied to
their subjective view of conditions and not necessarily to the objective situation” and that “part
of the attractiveness (valence) of rewards in a work context is the extent to which they are seen
as comparable with those available to the peer group” (Cole and Kelly, 2016). The “Goal setting
theory” by Edwin Locke opines that workers are motivated by the goal while the Reinforcement
theory by Burrhus Skinner assumes that human behavior can be affected by the outcomes/result.
It opines that someone can be changed and influenced to change by reinforcement, punishment
and extinction (Cole and Kelly, 2016). Theory Z by William Ouchi proposed “Theory Z” and
highlighted it as a combination of the classical/scientific management and the behavioral/human
relations management theories.
In the business world today, the famous McDonald is a typical example of the influence
of management on a business organization. Ray Kroc has a dream to build a business known for
providing food that tasted the same wherever you bought from. He wanted to build a brand that
had a trade secret which was peculiar to it alone. With this dream, persuaded his suppliers and
franchises by selling his vision and making them own it. In his own words Ray Kroc said “if I
had a brick for every time I’ve repeated the phrase Quality, service, cleanliness and value, I think
I’d probably be able to bridge the Atlantic Ocean with them”.
Kroc ensured that the systems were put in place and structures were set. He ensured the
systems and structure were followed as franchisees were compelled to follow the McDonald’s
core principles of quality, service, cleanliness and value. McDonald ensured that the
organization’s values were passed across and shared with all suppliers and franchisees. Ray did
not only stop at sharing his core values he also proceeded to train and educate. As the founder of
McDonalds, Roy left a legacy which was preserved and is still been followed through in the
organization.
The application of both classical and human-relations approached by Ray Kroc and
McDonald's cannot be underemphasized. The business have continually adopted the classical
theory of management as it is obvious that Fayol’s administrative theory principles can be
spotted in the running of this business. Moreso, the human relations management theories is
also evident as suppliers and franchisees are being carried along and their welfare considered to
be paramount in order to ensure that everyone works together for the same goal and for the good
of the organization. McDonald’s have been seen to motivate its employees by giving incentives,
bonuses, allowances and rewards commitment to work and results.
According to Nawaz (2011) in his research, he recorded employees preferred to work in
McDonalds because of time flexibility. It was a job that students were willing to take due to the
time flexibility. Also employees were provided with freebies such as free meals and discount
cards. Despite the above his research also proved that employees did not consider the job as a
long term job due to pay/remuneration, hence it can be said that Taylor’s scientific management
theory principle was at play here.

Conclusion
The influence of Fayol’s administrative theory and Taylor’s scientific theory can be
visible in the new culture of managing employers in organizations today and the commitment
employees put into satisfying and motivating their employees. Some organization provide study
allowances, leave allowances, tuition payments and scholarship to motivate their employees.
Also, specific skilled are now required for specific tasks. Human resource personnel are saddled
with the responsibility of ensuring that people are hired based on skills required for their job role,
hence ensuring high performance and increase productivity at the end of the day. Lastly, the
influence cannot be over –emphasized or overlooked as management is a prerequisite for a
successful and smooth running of any organization.
REFERENCES

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https://www.managementstudyguide.com/management_process.htm. Accessed 02/16/2021.
https://www.mcdonalds.com/us/en-us/about-us.html Accessed 02/16/2021
Karlof, B. and Loevingsson, F. (2005) A to Z of Management Concepts & Models. London:
Thorogood Publishing Ltd.
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Mahajan, J.P. (2009). Business Organization and Management, Global Media. 

ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/UNICAF/detail.action?
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Nawaz Sarfaraz A.S.M. (2011). Employee Motivation: A Study of some selected McDonalds in
the UK. African Journal of Business Management Vol. 5(14), pp. 5541-5550, 18 July, 2011
Available online at http://www.academicjournals.org/AJBM DOI: 10.5897/AJBM11.440
Pryor, M. and Taneja, S. (2010) 'Henri Fayol, practitioner and theoretician – revered and reviled'.
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