R1511D1145675

University of South Wales

Masters in Business Administration (MBA)

Management Theories and Philosophies
(BS4S02-V1)

Tutor: Dr Leonidas Efthymiou

Student Number: R1511D1145675

Assessment 1 Management Theories and Philosophies

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Question:
“With reference to appropriate literature and cases, critically evaluate the
Influence of classical and human relations approaches in management today.”

The purpose of this research paper is to critically evaluate the influence of Classical and Human
Relations theories in management today. It is imperative that organizations, both large and small
utilize effective management approaches to guide the operations of a business to ensure
consistent productivity and high employee performance. This paper shall explain the nature of
the Classical and Human Relations approaches to management and provide evidence of its
influence in today’s management strategies. It will then conclude with a summary overview of
the points presented in the paper.

Management is a description of a variety of activities carried out by those members of the

organization whose role is that of a manager (Cole and Kelly, 2 nd edition). It provides
motivation, encouragement, empowerment, development, guidance, education and so much more
to workers within the organisation who work together effectively towards achieving a common
objective. Over 100 years ago management emerged as a field of study (Holt, 1999, p. 137). The
'Classical' management approach appeared at the turn of the century (Carroll and Gillian, 1984)
and the 'Human Relations' prospective came about in the 1920's and 30's (Holt, 1999, p. 137).

Classical Management

Jeliniek (2005), referred to Classical management as the result of the early attempts to formalize
principles for a growing number of professional managers. Frederick Winslow Taylor (1856 –
1915) and Henri Fayol (1841 – 1925) are considered two of the forefathers of classical
management (Parker and Ritson, 2005; Parker and Lewis, 1995). Different management
approaches have been devised from the 18th Century. The Classical Approach to management
which is the first theory of focus, highlights the productivity and efficiency of work, the major
classical approaches include Scientific Management, Bureaucratic Management and
Administrative Management.

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Scientific management focuses on the scientific study of work methods to assist organization to
improve worker efficiency. Taylor is considered one of the chief contributors to the scientific
branch of classical management (Bartol et al, 2006). In 1909, Taylor published “The Principles
of Scientific Management”. According to Taylor, if organizations optimized and simplified jobs,
productivity would increase. Taylor, while working as chief engineer for Midvale Steel, noticed
a phenomenon known as soldiering, (Bartol et al, 2006). Bartol et al (2006) describes soldiering
as “deliberately working on less than full capacity”. Taylor (1985) believed that by applying a
science of management based on four principles he could decrease soldiering.

In his study of time and motion, Taylor concluded that certain people could work more
efficiently than others. From all his workplace experience, Taylor developed the four principles
of scientific management. Taylor’s four principles of scientific management, known as
Taylorism are: Scientifically study each part of a task and develop the best method for
performing it. Carefully select workers and train them to perform a task using the scientifically
developed method. Cooperate fully with workers to ensure they use the proper method Cole,
2016). See appendix 1 for more details of these principles utilized by Scientific Management.

Bureaucratic management focuses on written procedures and formal rules (Holt, 1999, p. 137).
It encourages the view that an organisation needs to act rationally and not on the subjective
whims of managers or owners (Perrow, 1972). Bureaucracy according to German sociologist
Max Weber is the basis for the systematic formation of any organization and is designed to
ensure efficiency and economic effectiveness (Mulder, 2017). Weber's work emphasized the
need for clear passages of communication, clear specifications of authority and responsibility
and clear knowledge of whom is responsible for who (Perrow, 1972).

Administrative management focuses on how managers can better coordinate an organisation's

internal activity (Bartol et al, 2006). Henri Fayol is the most widely recognised contributor to
administrative management (Breeze 1981; Breeze and Miner 1980; Crainer 2003). Both Fayol
and Taylor were theorist of the same era, however Fayol focus was aimed at the activities of all
managers. Henri Fayol identified five major functions of management: planning, organising,
commanding, coordinating and controlling (Crainer, 2003). Fayol believed that the practice of
management was distinct from other typical business functions.

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These first five functions of management are still important in organizations today. The Classical
approach to management view point is mechanistic; authority based, highly structured and
promotes management-by-exception. It encourages the use of formal rules and written
procedures (bureaucratic approach) and also focuses on 'all purpose' management functions and
principles for any situation (administrative approach). This approach completely disregards
human behaviour and the effect it can have on efficiency. Fayol through his rich experience
provided 14 principles of general management to guide the managers who in his time didn’t use
a scientific management approach (See appendix 2 for a list of Fayol’s 14 principles). It is based
on research of human beings needs, perceptions and feelings (Heyel, 1939). Parker and Ritson
(2005, p177) point out that, though Fayol never advocated his 14 principles as an all-
encompassing solution to any problem regardless of circumstance, many authors present his
principles as inflexible. Human Relations in contrast to the Classical viewpoint, the human
relations or behavioural viewpoint focused on the need to understand the effect of different
factors on human behaviour (Bartol et al, 2006). As previously mentioned, the Classical
management promotes the view of people as production mechanisms who can be made to work
more efficiently through scientific study (scientific approach). Henri Fayol (1917), as one of the
five functions of management, divided “organizing” into five subcategories.

Human Relations Management

Abraham Maslow and Douglas McGregor were two major theorists to contribute to the Human
Relations movement. The viewpoint of Human relations encourages an organisation to be seen as
a “social system with interactions, communications, alliances and conflicts” (Holt, 1999, p137).
The human relations movement developed from research done by early behaviourists, such as
Hugo Munsterberg, Mary Parker Follett and Elton Mayo (Bartol et al, 2006). This is the most
well-known and important of these studies is the Hawthorne studies (Gautschi, 1989). The
Hawthorne studies were conducted at the Hawthorne plant of the Western Electric Company.
The studies tested the effects different factors such as lighting on workers had on efficiency.
Social psychological explanation of the possible mechanism for the Hawthorne effect is as
follows. Awareness of being observed or having behavior assessed engenders beliefs about
researcher expectations. Conformity and social desirability considerations then lead behavior to
change in line with these expectations (Epidemiol, 2014).

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Researchers discovered the Hawthorne Effect as a result of the finding of the studies not being as
expected. The Hawthorne effect was described as the concept that subjects of experiments
respond positively to being singled out as a special group worthy of study (Heery and Noon
2001, p151). The Hawthorne effect concerns research participation, the consequent awareness of
being studied, and possible impact on behaviour (Epidemiol, 2014). The results of the
Hawthorne Studies caused the focus of management study to change greatly and generated
enough interest in the social aspect of organisations to spark the Human Relations movement
(Bartol et al, 2006; Perrier 1972).

Using a hierarchy of needs, Maslow developed a theory of motivation based on three

assumptions of human needs; this introduced the concept that workers have needs beyond the
basic drive for money to put a roof over their head (Bartol et al, 2006). In 1960, Douglas
McGregor examined theories of behaviour of individuals at the work place and formulated two
models, namely Theory X and Theory Y of the approach to behavioural management.

Theory X

According to McGregor, Theory X focuses on the inherent dislike for work by human beings
and the need for them to be controlled and threatened to do same. McGregor believes that
employees rather be directed and are not likely to take on any responsibility. They are more
focused on job security.

Theory Y

Theory Y on the other hand, looks at other means of motivating employees by making the work
place and enabling environment for growth and development. Employees will be more willing to
take responsibility in good working conditions.

Employees like to be creative and use their imagination to solve problems. Maslow's Hierarchy
of needs and McGregor's Theory X and Theory Y help managers to better understand and
develop a view of workers' nature, their behaviour and how to interact with them. Both the X and
Y theories along with the Hawthorne studies and research done by other behaviourists emphasise
the view of workers as social people with varied needs. The focus of the Human Relations
management viewpoint is on how to best deal with these needs and behaviours to help increase
efficiency.

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From the beginning of time, different management principles have exist and continue to evolve
today. If there was a plan to accomplish something great, there were principles of management
surrounding it for it to successfully be completed. The classical and human relations
management views are still relevant in management today as it was in the 1880’s. With the use
of more contemporary viewpoints such as systems theory and contingency theory we can
combine the strengths of each theory, and create a better guideline for future managers. Both the
classical and human relations approaches to management are two theories which have
contributed highly in the way organizations operate, how employees are motivated, and how
productivity is increased in small, medium and large organizations across the world. With the
classical approach being viewed as being impersonal, many companies have adopted the human
relations approach more because it focuses on the social aspect of workers which is a very
important factor in achieving satisfactory productivity to ensure maximum profitability.

In the modern world today, the classical approach to management is the preferred choice for
some private companies in Guyana, one example of such a company would be the Demerara
Distillers Limited, the largest rum production beverage company in Guyana’s industry.
Demerara Distillers Limited’s management structure is configured so as to minimise risks of
conflict of interest and maintain adequate control (DDL, 2015). As the company focus on
strengthening its existing corporate governance framework and systems, the company’s Board
reaffirms its commitment to strict adherence to entrenched corporate governance best practices.
Another aspect of the classical approach practiced by the Demerara Distillers Limited is the
annual management trainee programme. In the company’s 2015 Annual Report, it announced the
intake of eight (8) university graduates into its Management Trainee Program. After the
completion of the program, the successful graduates are placed in various departments of the
company based on the area of their choice and eventually become managers in their respective
fields. The training program equips the staff with the right skill set to undertake the various roles
in the different departments within the company. Continuous training is also provided to the
other employees of the organization who have been working at the Demerara Distillers Limited
for a number of years.

Other influences of the classical approach to management can be seen in organizations like
Texila American University which practices bureaucratic management approach with rules and

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regulators and the method in which information is distributed to its employees. With its head
office in India, Texila American University branched out and started operation in Guyana just
over five years ago. Being a past employee of Texila American University, conforming to the
various rules and regulations of management, which they believe once employees are trained and
follow specific rules it will result in improved performance. Constant training is provided to
employees and managers alike so that procedures are properly followed. The cultural difference
also plays a significant role in the management approach utilized by the university.

The human relations approach has significantly influenced the modern approach to management.
Known as the “Mother of Modern Management”, Mary Parker Follett (1918) believed that
management was the “art of getting things done through people. Follett offered valuable insight
on the importance of “powering with” rather than “power over”, and interacting with employees
to solve conflicts (Caramela, 2018). Follett’s ideas contradicted that of the scientific management
approach, as she believed that managers and subordinates should fully collaborate (Caramela,
2018). The Hawthorne studies and the Maslow’s human needs theory, both contributed to the
human relations theory. The human relations theory has added an aspect of motivation in
organizations and has made companies compete for human resources depending on what a
particular company has to offer.

Today, it can be seen that the human relations theory provide many benefits like coordinated
teams, motivated employees and increased productivity. Some elements of motivation used in
companies such as Ansa Mcal Ltd, another beverage company in Guyana, are employee rewards,
pay, bonuses and educations support (T. Barker, personal communication, June 20, 2018).
Companies like Ansa Mcal are raising the team building efforts through research and
development to find the best way to enhance morale and ensure productivity. Human relations
does not end at the employer making ways to the human need but also includes one on one
communication between top to bottom and bottom to top. The sugar industry in Guyana in recent
years has faced some challenges as it relates to the management approached used by the state
owned company GuySuCo. Though rewards and bonuses were given to employees, it was done
on a larger scale for to the top management of the entity and on a lesser scale for the employees
at the bottom. The mismanagement of GuySuCo resulted in hundreds of employees being laid
off. Now, the country’s tax payers have to feel the burden as the government has to pay large

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sums of monies to the retrench workers based on the agreement between the Guyana Agriculture
and workers union and the government. However, through Corporate Social Responsibility, the
human relations theory has influenced those who work outside of the organization where the
company looks at what can be given back to the community. This is being achieved through
vocational programs for the retrenched workers and their families. Some of the laid off workers
have used the settlement they received to start their own businesses and also invested in other
areas for financial gains.

Conclusion

The Classical and Human Relations approaches to management have widely contributed to the
development of management in the modern world. Both management theories are still being
practiced in small, medium and large scale organizations and the government public sector. The
classical and human relations approaches have significant differences in that the classical
management approach places emphasis on self-control and reasonableness, whereby the human
relations management approach focuses on individual safety and communal demand. Over the
years, other theories with contemporary viewpoints such as systems theory and contingency
theory have contributed to the development of management practices with influences from the
classical and human relations theories.

Appendix 1

1 Replace rule-of-thumb with scientific method: Taylor used several scientific experiments to
determine the most efficient and productive way to perform and standardize tasks. This replaced
the rule-of-thumb where workers were entitled to their own opinion on how to work based on
their experience. Opinions of managers and workers could now be substituted with facts from the
scientific analysis. Taylor conducted a work study where he analysed each work operation by
skilled workers with the use of a stop watch. In this study, unnecessary movements were
minimised so that most accurate time and best method to do a job is obtained.

2 Selection of Workers: Workers with the right skills and abilities who are best fitted for the job
should be selected and training should be scheduled for them for their own development by

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management. This will further improve skills acquisition and in-turn increase productivity and
efficiency.

3 Division of labour: Managers should now take up the responsibility from the workers of
coming up with initiatives on how to get the work done with the implementation of the scientific
method. Workers should solely be responsible for work performance.

4 Governed Structure: Management should have clear authority and power over workers
governed by the scientific method and is able to create a cooperative environment with the
workers so that they are encouraged to work according to the scientific methods that have been
established.

Appendix 2

Fayol’s 14 principles for general management:

1. Division of work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interest
7. Remuneration
8. The Degree of Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps.

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