UNICAF University

UU-MBA712 Theories of Management

Master's in Business Administration –

Management Information Systems (MIS)

Instructor: Tanusree Sengupta

Student Number: R1808D5989251

Student Name: Bakare Oluwaseun Lateef

Task: “With reference to appropriate literature and cases,

critically evaluate the influence of classical and human relations
approaches in management today.”
Introduction

The influence of classical and human relations approaches in management today is very
important to the development of any organization. This topic is to address the impact
of classical and human relations approaches in the management today. The general
management acceptance is very important when it comes to organizational
development, the management have to decide on which approach they are all working
towards for implementation. The classical approach to management is a set of
regular ideas that was developed by administrators in the late 19th century and
early 20th century (Sarker & Khan, 2013), we will be looking into their findings and
confirm if their findings are still applicable in this generation. We will also define what
Management is, identify management theories, and then continue to review the real
classical and human relation approaches which include; Scientific Management,
Principles of Administration, Bureaucratic Model, Hawthorne Studies and Hierarchy of
Needs Model. We shall critically associate one of the theories to Lagos Metropolitan
Area Transport Authority (LAMATA) as government parastatal within the Lagos
Metropolis.

What is Management?
Shenhar (2014), defines management to be an art and science, based on the fact that it
is perceived to be a personal activity in which managers or executives engage people
around them in order to achieve their main objectives using their personal skills,
approaches and values. It is quite obvious that when a business or organization lack a
very good management style such business or organization bound to fail or collapse in
at any moment, in other words, if a business or organization engage top quality
management to oversee their business. Quite a lot of people have define management
in different ways based on their own personal understandings and findings.
Van Fleet and Peterson (2018), define management as a position held by a higher
authority within the organisation, in which the person is accountable to every resources
placed in his or her care to achieve the main objective of the organization. Meanwhile,
they also made it very clear that there are some people within the organization that
are not in the position of leadership but can take some decision that will influence the
direction of the organization base on their personal capacities.
Management as a case study in my organization, Lagos Metropolitan Area Transport
Authority (LAMATA) is defined based on position and level, if you are not assigned the
roles and responsibilities to manage and control resources and you are found doing
such will result to query back then in the past. There are different levels of management
in an organization and each one comes with their own theories and principles.

What is Management Theory?

According to Cambridge dictionary Management Theory is defined as a set
of thoughts and techniques designed to assist managers to do their job well: it is also
believed that modern administration prefers to inspire or guide their
personnel’s through any given tasks (University, 2018).

The business dictionary also characterizes Management Theory as “A collection of ideas

which set forth general rules on how to manage a business or organization.
Management theory addresses how managers and supervisors relate with their
organizations in the knowledge of its goals, the implementation of effective means to
get the goals accomplished and how to motivate employees to perform to the highest
standard” (BusinessDictionary, 2018).

Management theories are proposed in order to strengthen organizational structures and

also improve service deliveries. It is to this end that management theories were
developed. Organizations are allowed to critically evaluate the best style of
management approach that best suits their organization and environment for better
performance and synergy.

Type of Management Theories

There are different type of management theories which includes;
1. Classical management theory
2. Behavioural (Human Relation) management theory
3. Quantitative management theory
4. Quality management theory
5. Systematic management theory
 6. Contingency management theory
Base on this coursework we will be focusing more on the classical and behavioural
(Human Relation) management theories.

What is Classical management theory?

Classical management theory also known as scientific management theory was
introduced into the world in the early 1900s by Frederick Taylor, with the motive of
increasing productivity within the organization and also maximise profit. This theory is
concerned more about employee’s knowledge of the tasks given and how it’s been
implemented scientifically (TERRY, 2017).

We shall be looking into the classical approach to management as proposed by Fredrick

Taylor, who is considered to be the father of scientific management, Henri Fayol who
is the founder of the administrative principles approach and Max Weber the pioneer of
the Bureaucratic organization approach. We shall also evaluate the human relations
management theories by Elton Mayo, Abraham Maslow with the hierarchy law of
needs and Mary Parker Follett who proposed that organization should be an approach
that organizations should be a place where different people come together to work as
if they are in a community.

Fredrick Taylor Management Theories

Taylor believes that employees should be given specific tools to work with in order for
them to be more productive, hence anyone that is not productive after needed tools
have been given should be fired. This style of management approach is better in a
mechanised operation but do not fit into a human relation approach to management,
it does not give room for personal initiatives and teamwork within the organization.
Regardless of the level of critics this style of management has attracted, it has proven
to be more acceptable in the oil and gas industries across the world, taking Shell
petroleum company of Nigeria as an example, they are known to be a company that
pay higher incentives to their employees as a means of driving forces for performance
and productivity. Any employee that is found not productive within the organization
should be ready to be shown the exit door out of the company payroll system.
Taylor proposed four principles of management theories, which includes,
1. The development of a scientific management structure
2. The scientific selection of employee base on specific skills and experience
3. The scientific education and training of employees
4. A conducive working environment where employees can freely relate with
managers.
Taylor’s principles might seems outdated but they are still in use in by some organization
today based on the usefulness of its principles, most especially companies that are into
productions and machinery where they have to keep the cost of production as low as
possible like Shell, Amazon and McDonalds.

The pros and cons of classical management theory

Pros.
1. It enhances production
2. It creates room for standard within the organization
3. It improves employees performance when the right person with the right skills
and expertise are assigned to particular tasks
4. Wastage and incompetence are eradicated
5. Rapid decision making
Cons.
1. No matter how experienced you become on the job, salary structure remains
the same, hence, demotivation.
2. Tasks are routine in nature, with no room for creativity
3. The system is not suitable for teamwork
4. Unemployment – since men are being replaced with machines which in turns
result to unemployment within the nation.
5. Fatigue – you can only get paid for the numbers of hours you work for.

Max Weber Management Theories.

Max Weber a renowned German sociologist is known to be the founder of the
bureaucratic system of management, which comprises three major elements;
 1. Every organization must have an organizational hierarchical structure in form
of power.
2. Rules and regulations must be clearly defined in form of authority within the
organization.
3. Rules and regulations must be widely accepted and respected.
Max Weber believed that organizations should be managed in a rational way instead
of being managed based on emotions and feelings. He proposed 6(six) different
approaches in which bureaucracies within the organization could be well managed
effectively when it comes to decision making.

Max Weber proposed six principles of management theories, which includes,

1. Job specialisation: Task must be assigned based on experience and competence
and there must be a clear balance between responsibilities and authority.
2. Levels of Hierarchy within the organization: Every organization must have a
hierarchical structure in place in order to manage the chain of commands within
the organization. The flow of information must be from top to bottom
approach. This is widely practised by most organization today for clarity of roles
and responsibilities, most especially government establishments.
3. Professional Employment Selection Rules: Employers should ensure that their
mode of employment is based on technical abilities and competence only.
Employees are employed solely for the purpose of which they are employed
within the organization.
4. Organizational rules and regulations: One of the criteria of a bureaucratic
management structure within an organization is to ensure that rules and
regulations are developed and applied as at when due with no exception. These
rules and regulations must be made available for the employees in order for
them to know what is expected of them at all time. It is called official handbook
nowadays. The rules and regulation are expected to be reviewed at an interval
periods in order to meet up with current realities within the organization.
5. Impersonality: Rules and regulations are expected to be applied in a uniformed
manner with no exception. Even though an interpersonal relationship is allowed
within the organization, people in the position of authority should not allow
 favouritism and partiality to cover their sense of judgements. Official duties
should be separated from personal responsibilities and emotions. Every
disciplinary and reward decisions should be implemented critically using the
official rules and regulations.
The pros and cons of bureaucratic management theory
There are great benefits of a bureaucratic system within an organization, this includes;
1. There is always room for creativity
2. There is job security if you keep to the rules and regulations
3. There is no room for favouritism or partiality
4. There is power centralization with the assumption of responsibilities as the
manager
5. Employee’s development on the job is paramount to the organization through
a training structure.
Some disadvantages have been identified in the Max Weber theories of management
which might not sync with the modern day's styles of management;
1. Too many rules and regulation that can incapacitate employee from maximum
performance.
2. Unnecessary delay in decision making as at when due.
3. The difference in salary structure sometimes are not very encouraging
4. Employees might be demotivated due to inabilities to implement personal ideas
5. Rules and regulations might become obsolete in the long run.

Henri Fayol Management Theories.

Management of theories can never be discussed without mentioning the contribution
of Henri Fayol, where he proposed some elements and principles guiding the
management theories (Fayol, 1949). Fayol defined the elements that affect
management which includes;
1. Planning: Fayol explained that managers must have action plans for job
execution before embarking on the job itself.
2. Organization: Fayol proposed that organizational structure must be in place in
order to achieve organizational goals.
 3. Commanding: Fayol emphasised that managers are meant to understudy their
subordinates in order for them to know their strengths and limits. This is very
important as to know who and when to assign tasks.
4. Coordinating: Coordination is a very important aspect of management theory
whereby managers are expected to have strategic communication skills.
5. Controlling: Fayol assumed that all the previous elements would have been
critically followed through by the manager in order to ensure continuity.

Meanwhile, Henri Fayol proposed 14 principles of management (Fayol, 1949), these

principles are meant to guide every management on how to properly manage every
resource at their disposal.
1. Division of Work – Employee area of specialization is very critical to
organizational development. When an employee is versed in his/her task,
productivity will definitely improve.
2. Professionalism and Responsibilities - Responsibility implies a commitment to job
execution. Managers must be given the power to assign responsibilities to his/her
subordinates.
3. Discipline - It is very important to instil discipline within the organization, there
must be regard of higher authority. In a situation where rules and regulations are
being flouted, proper disciplinary measures must be implemented to serve as a
deterrent to others.
4. Harmonisation of Command – This is a process whereby every subordinate
receives instruction through his/her direct manager. In the event that a worker
gets orders from more than one predominant, it is probably going to create
confusion and tussle of power.
5. Unity of Direction – it is advised that all related tasks are meant to be placed
under one manager for proper coordination.
6. Subordination of Individual Interest to Mutual Interest – Organizational interest
must always supersede individual interest at all time. Hence, there will be a
conflict of interest which might reduce productivity.
7. Compensation - Workers must be adequately compensated as this is one of the
major motivational factors that make them remain productive. The significant
and systems of compensation payable should be fair and rational.
8. Centralization – The decision-makers should not be seen or perceived to be too
far from the subordinates. There should be an appropriate balance between the
management, managers and other employees no matter the size of the
organization.
9. The line of Authority/Scalar Chain - This is making reference to the chain of
managers extending from chief executive officer to the lowest in rank within the
organization. Fayol proposed that there should be a realistic chain of command
from top to bottom connecting all administrators at all levels.
10. Order – In an organization where there are law and order, things are expected
to run smoothly without any form of interference. There should be social and
material orderliness at all time.
11. Equity – Every organization are to treat their employees with respect at all time,
and equity must be institutionalised to guarantee a fair working environment.
Managers are expected to be reasonable and unbiased when managing their
subordinates, giving equivalent consideration towards all member of staff.
12. Stability of Tenure of Personnel – Every employee that has gone through the
employment process and has finally been employed should be given enough
time to sync with the new system before any sanction is applied for non-
performance. When an employee is aware of his/her job security they tend to
perform better and produce more results for the benefit of the organization.
13. Initiative – Employees should be given free will to use his/her initiatives to
produce a good result for the organization. Implementation of a very good
initiative by the employee is a plus for the organization.
14. Esprit de Corps/Team Spirit - This suggests that managers are to do everything
possible to create a very conducive environment where everyone works as a
team. Team spirit builds up unity within the organisation.
The pros and cons of Henri Fayol management theory
Pros.
1. It promotes an organizational structure
2. It promotes team spirit
3. It proposes fair compensation plans for the employees
Cons.
1. Too much of control over employees
2. This theory is organizationally based and not customer oriented based
3. Fayol principles do not focus more on creativity and innovation from the
employees.

The Human Relations Management theories

What is Human Relation?
Human relation is a process of studying human challenges emanating from
organizational and relational affairs (MariamWebster, 2018).

Cambridge dictionary (2018), also define human relation as a “relationships between

groups of people, especially between workers in a place of work, or the study of these
relationships”.

Human relation provides a platform between managers and employees to effectively

communicate, interact and also make decisions together without any hierarchical
barrier. Employees are given the liberty to express themselves and also approach the
management with pressing issues or ideas.

What is Human Relation Management Theories?

Human relation theory which is also known as behavioural management theory was
developed in the early 1920s during the era of the industrial revolution by Elton Mayo
(Perry, 2017), he carried out a research to prove that human beings are more important
in the scheme of things within the organization than the machines. Employees are to be
considered as the main asset of the organization in terms of skills and professionality
within the organization.
Elton Mayo believed that human relation should not be based on sentiments where
workers could be hired and fired at any time rather it should be team-based, where
every employee have a sense of belonging. He concluded that;
1. Every member of an organization should be seen as an asset to the organization
and must belong to a group.
2. Every group must have a driving force toward a set goal.
3. Employees are to be motivated for more performance.
4. Employees must be trained and retrained regularly in order to improve their
performance and capabilities.
5. Certain incentive must be awarded when an employee meets organizational
goals for better performance.

Abraham Maslow Hierarchy of Needs

How to effectively motivate employees has always been a challenge within most
organization. This is one of the reasons why Abraham Maslow decided to research on
how organizations can continually motivate their employees. He came up with a theory
that was widely accepted across the globe;
1. Physiological needs: Food, water, air, shelter, clothing and sleep
2. Safety needs: Personal security, job security, financial security, access to good
health and other modes of self-assurance.
3. Social needs: Family, friendship and team member (sense of belonging).
4. Esteem needs: Self-esteem and respect.
5. Self-actualization: Final level of hierarchy laws of needs, where you have
achieved all and just want to remain relevant.

Mary Parker Follett Management Theory

Mary Parker Follett also known as the “Mother of Modern Management,” believed
that Management was an art of getting things done through people’s intervention
(Caramela, 2018). She proposed that as a leader, for you to more effective as a leader
is for you to also produce another leader after you by;

1. By creating direct contact with your employees through regular meetings

and personal discussion
 2. Create an avenue for early stages team bonding.
3. Create a mutual relationship across the organization.
4. Create an avenue for a continuous process by applying experience on every
task given.

Conclusion

It very obvious that classical approach to management and the human relations
approach to management have both contributed immensely to the development of
management styles over the years which have intern improve productivity and
stability within the organization no matter the size. Modern days firms have
embraced the principles of human relations approach more than that of a classical
approach, based on the fact that it focuses more on the collective effort of
employees. The classical approach is perceived to be more robotic in nature even
though human relation theories were developed due to the loopholes in the classical
approach. It is of no doubt that the two approaches are very different from one
another. It is at the best interest of any modern day’s firm to critically analyse which
theory is best suited for their organizational goals and objectives before applying it.
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