Effects of Classical Management Theories on the Management Practices in

National Breweries Plc

Abstract

The study of the "Effects of Classical Management Theories on the Management Practices

in National Breweries" was carried out. This was to assess the extent of application of

the Scientific Management, Administrative and Bureaucratic Theories at National Breweries

and the effects of the application to the progress, development and growth of the

Organization. Descriptive research method, especially survey research was employed in

carrying out the study. Three hypotheses were tested using chi square and linear regression.

The population of the study was 1 0 workers of National Breweries Plc. A sample size of

10 was generated using the Taro yamene formular for sample size determination, stratified

sampling technique was used in the distribution of the questionnaire for data collection.

Frequency tables using simple percentages were used for analyses of the data generated. The

study revealed that the application of the Scientific management. Administrative and

Bureaucratic Theories in management of various organizations contributed to waste, labour

turnover, layoff of workers, slow pace of organizational growth and development and low

productivity in the organizations. The study concluded that given the present performances

of the National Breweries Organizations, more need to be done in the way the classical

management theories were applied, such that workers will be more motivated to perform in a

conducive work environment. It was recommended that, for organizations to achieve the

objectives of effective and efficient productivity, they must understand, accommodate,

embrace and promote people dynamics (nature, needs, values, motivations and general

1
cultural political environmental differences). Organizations should also review periodically

their rules, regulations and manuals to ensure current trends in the business environment.

Finally, that organization should allow for initiative, innovations and workers participation in

decision making. Keywords: classical management, management practice, National

Breweries

Introduction

The study of classical management thoughts which are set of concepts that started in 1800s

took their roots in the study of organizations. The effects of the set of theories of organization

has been and are still profound. The effects are seen virtually in all complex organizations.

The word that is said most about the classical view of organization is “structure” (The

structure of formal organization). An organization is defined as a formal association of

individuals with a common purpose and with stipulated objectives to attain under authority

and leadership (Onwuchekwa, 1993:2). An organization is also defined as the structure of the

relationships, powers, objectives, roles, activities, communications and other factors that exist

when people work together (Ile, 1999:55). Scientific Management, Administrative theory and

the Theory of Bureaucracy are the three streams of classical management theories that have

stressed this point of view. Therefore the classical theories were developed in three streams

viz;

(a) The Scientific Management theory developed by Fredrick Winslow Taylor (1856-

1915)

(b) The Administrative Management theory, developed by Henri Fayol (1841 - 1925) and

(c) The Bureaucratic Management theory, propounded by Max Weber (1864-1920).

The three streams of thought were founded on similar assumptions. The practical

effects of the three are essentially the same, in that they were developed about the same time,

2
(1900-1950). However, each of the three streams were developed by separate groups of

writers working almost totally independent of each other.

The Scientific Management Theory formulated by Fredrick Winslow Taylor (1856-

1915) and others like:- Henry L. Gant (1861-1919), Frank B. and Lillian M. Gilbreth (1868-

1924) and (1878-1972) respectively, focused on the need to increase productivity, especially

in United States of America, where skilled labour was in short supply at the beginning of the

twentieth century. It was the believe of the Scientific Management Developers that, the only

way to increase productivity was to increase the efficiency of workers.

The Administrative Management Theory, developed by Henri Fayol (1841-1925), was

mostly out for the need to find guidelines for managing a complex organization such as

factories. He therefore concentrated on authority and its implementation in work place. He

developed five functions of management, which include;

3
Plan, Organize, Command, Co-ordinate and Control, with 14 principles that he saw as

common to all organizations.

The theory of Bureaucracy developed by Max Weber (1864-1920), focused on position in an

organization, which he believed should follow the principle of hierarchy (each lower office

being subject to the control of a higher one) i.e. organizations must strictly define its

hierarchy, governed by clearly defined regulations and lines of authority (Stoner, et al,

1992:63). This paper is therefore focused on finding out the effects of the three streams of

thoughts on current management practice in National Breweriesn Organizations and to do

this, there is need to state problem.

Statement of the Problem

The three streams of thought that made up the classical management theories were formed on

a similar assumption and the practical effects of them were essentially the same (Ile,

1999:56). These theories were mostly concerned with increase in efficiency and production

(lower costs of production and increase in profit). By this, they were interested in certain

principles and practice that will ensure effective and efficient operation in any given

organization for achieving a good relationship between the employers and employees that

will ensure smooth achievement of the organizational goals and objectives.

However, inspite of the fact that these theories which are still in practice, are widely accepted,

achievement of organizational goals of total efficiency in these organizations is still a mirage.

1. The present level of waste and labour turnover in organizations indicate the

inadequacies of these principles in today's management practice.

2. The lay-off of workers on yearly bases by indigenous organizations, the slow pace of

growth and development of these organizations such as the Anambra Motor

Manufacturing Company Limited (ANAMMCO), EMENITE and NIGER GAS

indicate the short falls of the theories to the current management practice in National

4
 Breweries.

3. The complete close down of organizations due to non-performance, goes a long way

to show that, though classical management theories are still in practice today, desired

objectives of organizations in National Breweries are far from being achieved. Could

it be that the theories are not being properly applied in these organizations? Or due to

other environmental effects. The organizations like the Sunrise Flour Mill, Enugu and

the National Breweries Cement Company Limited, Nkalagu (NIGERCEM) has been

closed down for years now and their workers thrown to the labour market.

Objectives of the Study

The broad objective of this study is to find out the effects of classical management theories on

current management practice in National Breweriesn organizations. The specific objectives

therefore are:

1. To examine the contribution(s) of classical management theories to the current

level of waste and labour turnover in National Breweriesn organizations.

2. To find out the effects of the application of the classical management theories on the

lay-off of workers, slow pace of growth and development of organizations in National

Breweries.

3. To know if the closure of some of the National Breweriesn organizations were

caused by the application of the theories in management practice of the organizations.

Research Questions

From the foregoing, the following research questions will guide the study.

1. Does the current waste and labour turnover in National Breweriesn organizations arise

as a result of the practice of classical management theories?

2. Does the application of classical management theories influence lay-off of workers,

slow pace of growth and development of National Breweriesn Organizations?

5
3. Could the closure of some of the organizations be as a result of the application of the

theories in the management practice of the organizations and could the application

result to low performance of an organization.

Research Hypotheses

Based on the research objectives, the following hypotheses were formulated for the

study

1 Classical management theories significantly contribute to current level of waste and labour

turnover in National Breweriesn organisations .

2 There is a significant effect of classical management theories on workers layoff, slow pace

growth and development

3 Closure of some organisations is as a result of the application of the theories in

the management practice of the organisations and the application result to low

performance of an organisation.

6
Review of Related

Literature Definition of

Theory

The New Webster Dictionary of English Language, International Edition (2004:1025) defines

theories as:- “An organized body of ideas as to the truth of something, usually derived from

the study of a number of facts relating to it, but sometimes entirely a result of exercising the

speculative imaginations”. It went further to state that theory is knowledge of science or art

derived from such study and speculation and that it is a general body of assumptions and

principles. Theory is also, a coherent group of assumptions put forth to explain the

relationship between two or more observable facts which can be used to provide a sound

basis for predicting future events (Stoner et al, 1992:28).

It is a systematic grouping of interrelating ideas, whose tasks are to tie together and to give a

framework to significant knowledge (Koontz et al, 1980:13). From the foregoing, one can say

that theory can be defined as a structure of fundamental concepts and ideas around which

knowledge in a field are organized, it is also a proposition, idea or assumption put forth by an

individual or group of individuals on how a particular management problem can be solved.

A confirmed theory can therefore become a principle (Ile, 1991:1). Therefore, studying

theories of management becomes important due to the fact that, it shapes our views of

organizations, guides management decisions and provides a source of ideas as it gives chance

to take a different view of every situation, 'the major assumption under the classical theory of

organization and management is that human beings are motivated to perform through

financial inducement. This view is still relevant in today's management practice.

Development of Management Theories before the Industrial Revolution

The systematic study of management as a separate branch of knowledge started of recent, but

the practice is as old as human society. (He, 2002:51), states that – “Management is as old as

7
human organization”. It is important to note that man has been making decisions about what

to do and how to do it in the past. Before the advent of industrial revolution in Europe about

1750-1850, the human society engaged in crafts and took care of their Micro Organizational

units, called families by producing crafts of one unit or the other, therefore the system of

production was based on handicraft system. This system entailed staying at homes and

producing one thing or the other, hunting, gathering and farming. The output of these

endeavours were used for the family sustenance and any surpluses exchanged with neighbours

for other items (this is called Trade by Barter). During that time, man was able to manage his

family. This is to say that, management started from the olden days. An analysis of this period

shows that as life continued, management become more revolutionalised and sophisticated.

This gives credence to the fact that, the study of management and organization is quite old.

Therefore it could be traced that several attempts were made over the years, to explain

theories and principles of organization and management as we have them today.

Development of Management Theories During and After the Industrial Revolution

From the foregoings, one understands that, before the industrial revolution, production system

was based on handicraft, hunting, gathering and farming. But, during and after the industrial

revolution, there became great changes in organization of industries and methods of

productions. During these periods, machinery replaced the handicraft system of production.

This occurred in about the 18 th century. This is to say that the industrial revolution brought

about the factory system of production, which entailed;

(a) Workers, raw materials, machinery and equipments were concentrated under a roof or

group of buildings used exclusively for production.

(b) There were centralized control of labour, raw materials, production and output.

(c) There were a clear distinction between the Employers and Employees. The result of

the industrial revolution were rapid development of factory system, which gave rise to

8
 large scale production as specialized machines were used in sequence to perform

operations. This created complex management problems of combining and co-

ordinating the factors of production. The managers at this period were usually

autocratic, forceful and self-trained. They relied so much on intuition and rule of

thumb practices and procedures. The increase in scope and complexity of business

organizations as a result of industrial revolution created additional management

problems (Ile, 2003:56).

As a result of these additional management problems created by the industrial revolution,

people started investigating and developing new concepts relating to management of

organizations. Thus a set of concept about organization began to be extensively developed. In

fact modem management theories and principles date from the introduction of the factory

system. Techniques for financial control, incentive payment schemes, planning systems and

investment appraisal methods were rapidly developed and applied. The works of Fedrick

Winslow Taylor father of Scientific Management Theory, Henri Fayol father of

Administrative Theory and Max Weber the proponent of Bureaucracy stand out clearly in this

regard. From the writing of these authorities called the Classical Management Thoughts, other

theories and principles of management were developed.

9
The Classical Management

Theories The Scientific

Management Theory:-

Koontz et al, (2005:12) states that many different writers and practitioners have resulted in

different approaches to management and these make up a management theory jungle. This is

to say that although Fredrick Winslow Taylor, (1856 - 1915), was known and acknowledged

as father of Scientific Management, he was not alone in this area, other notable contributors of

this theory were Henry L. Gant (1861 -1919), Frank B. and Lilian M. Gilbreth (1868 - 1924)

and (1878 - 1972) respectively. These people and their works were presented in this section

and are linked to current management practices in National Breweries.

(a) Fredrick Winslow Taylor: In 1911, Taylor published his famous work titled “Principles

of Scientific Management”. In this work, he advocated that Managers should gather together

all the traditional knowledge possessed by work men and then classify and reduce them to

laws, rules and formulae. They should then develop a “science”, for each element of man's

work to replace old rule of thumb methods and scientifically select and train workmen in the

new methods. He also stated that managers should take over certain tasks, such as planning

and scheduling of work, which were previously left to the workmen to cope with as well as

they could. Koontz et al (2005:14) states that the fundamental principles that Taylor saw

underlying the scientific approach to management are as follows:

(a) Replacing rules of thumb with science (organized knowledge).

(b) Obtaining harmony, rather than discord in group actions.

(c) Achieving co-operation of human beings, rather than chaotic individuals.

(d) Working for maximum output, rather than restricted output.

(e) Developing all workers to the fullest extent possible for their own and their

company's interests. Stoner et al (1995:60), also contended that Taylor rested his

10
philosophy on four basic principles;

1. The development of true scientific management, so that the best method for

performing each task could be determined.

2. The scientific selection of workers, so that each worker would be given

responsibility for the task for which he was best suited.

3. The scientific education and development of workers.

4. Intimate, friendly co-operation between management and labour.

It was the believe of Taylor that, if management and labour are together for the

achievement of an increase in production, profit will be raised to the extent that labour and

management will no longer fight over profit. This management system of Taylor was based

on production-line time studies. He used time studies by breaking down each job in the

production line into various components and designed the quickest and best methods of

performing each component. He then established how much workers should be able to do

with the equipment and materials at hand and also encourage employers to pay higher rate to

more productive workers than the lower productive workers using a scientific rate that would

be beneficial to both the company and the workers. This wage rate was called “Differential

Rate System” by Taylor.

Inspite of Taylor's great theories which contributed immensely to dramatic increases in

productivity and pay, it was however critized in the following ways;

1. Workers and labour unions believed that the approach of working faster and harder

would exhaust whatever work that was available and may lead to layoff of workers,

the idea of close supervision of workers implies lack of initiative

2. It was also criticized that undue pressure were being placed on workers to work even

more than their capabilities.

3. The emphasis on increase in efficiency and productivity led the managers to be more

11
 autocratic and exploitative to workers and customers, the use of stop watch and or

piece rate system tends to be dehumanizing as it subjects workers to strains and unfair

practices.

His emphasis was more on efficiency at the shop level through the application of time and

motion study. His literature on management has become shop management as a result, he lost

sight of general aspect of management. Hence Ernest Dale called him the father of industrial

engineering rather than scientific management.

Henry L. Gant who was born in 1861, who also worked with and for Taylor between 1880

and 1901 and who also became a consulting engineer, made available his version of scientific

management to client companies. He introduced task and bonus system of incentive pay (here,

workers who reached set standard were given bonus). This was more widely accepted than

Taylor's differential Piece Rate System. This is still profound in today's management practice.

Other followers of Taylor were Frank B. Gilbreth and his wife Lilian M. Gilbreth who

stressed that management system should always be written. They did this by refining motion

and time study to a high stage of development in their pursuit of the one best way “they

were known for their contribution in time and motion studies, they

12
identified seventeen basic elements in on the job motion which they called therblings, they

emphasized the human factors in management and advocated the study of “human sciences”,

not only in touch with engineers and the leaders in natural sciences but also the economists,

sociologists, psychiatrists etc”.

Gilbreths’ book, “Cheaper by the dozen”, added to make them much popular. Their

contribution of the development of flow chart or scale which highlighted the need for

breaking an operation into units and steps for different employees to perform is an added

advantage. The scale is used to base judgment or remunerating those who performed above or

below standard.

The Administrative Theory

Henri Fayol (1841-1925), was a French Engineer. His key work was Administration

Industrialle et Generate (General Industrial Administration) 1916. He belonged to the classical

school of management theories and was writing and exploring administration and work about

the same time as F. W. Taylor in USA. Fayol was concerned with authority and its

implementation in the organization. He then advocated a consistent set of principles, that all

organizations need to run properly.

According to Stoner et al (1995:62-63), while Taylor was basically concerned with

organizational formations, however Fayol was interested in the total organization and focused

on management, which he felt had been most neglected of business operations.

Fayol believed that sound management practice falls into certain identifiable five functions.

These functions are; Plan, Organize, Command, Co-ordinate and Control. From this insight,

he drew up 14 principles that he saw as common to all organizations as follows;

Specialization and division of labour, Authority with corresponding responsibility, Discipline,

Unity of Command, Unity of Direction, Subordination of individual interest to the General

Interest, Remuneration of Personnel, Scalar Chain, Centralization, Order, Equity, Stability of

13
Tenure, Initiative and Espirite de Corps.

The Bureaucratic Theory:-

Max Weber (1864 - 1920), a German Sociologist in his work, developed a theory of

bureaucratic management that stressed the need for strictly defined hierarchy, governed by

clearly defined regulations and lines of authority. According to Stoner et al (1995:63), Weber

considered the ideal organization to be a bureaucracy whose activities and objectives were

rationally thought out and whose division of labour were explicitly spelt out. It is also in the

opinion of Weber that, competence and evaluation of performance should be based on merit.

His conclusion was that bureaucratic leadership was indispensable for the mass

administration required in modem society (Albers, 1974:25). The model presented by Weber

corresponds to what many management people call formal organization (Ile, 1999:85). Weber

recognized the functional properties of a Bureaucratic system but failed to see the importance

of informal organizations. Weber's view for bureaucratic organization is necessary in modem

business practice as a prerequisite for efficiency. It has a lot in common with scientific

management school, which laid emphasis on rigid application of scientific principles to work.

Critics have heaped all kinds of challenges on it, excessive red tape, inflexibility,

authoritarianism and general lack of human face (Eze, 1998:54). People that criticized

bureaucracy as above, argued that the typical response to any new problem in a bureaucratic

organization is to create new rules or procedures. Therefore, instead of finding creative

solutions to problem, the bureaucratic organization and the people in it spend valuable time

following rules and procedures. No wonder Thompson (1961:152-171), stated dysfunctions of

bureaucracy to include; Rigidity, Impersonality, Displacement of Objectives, Limitation of

categorization, Cost of controls, Self-perpetuating, Empire building and Anxiety.

Strict adherence to regulations produce timidity, conservatism and technicism. Persons can

legally avoid responsibility for accomplishing organizational objective by such odd

14
bureaucratic sabotage as operating within the strict letters of rules. Therefore initiative is

restricted by rules and regulations. Any organization that adopt these, makes innovation and

introduction of major changes impossible and this can lead an organization to be obsolete.

Eke et al (2009:56), in National Breweriesn Journal of Management Research states that,

“National Breweries as a developing country is said to be poor, because its economy has

refused to grow. The problem of growthlessness or development distortion can be attributed to

lack of basic requirements”. This is to say that rigidity has the capability of not allowing

organizations to seek that, which will enable it take proactive decisions for greater

productivity. However, Ekeng et al (2009:70), writing in Journal of Policy and development

studies states that, “Culture is important to organizations because as individuals act on shared

values and aspect of organizational culture, their behaviours can have significant impact on

the organizational productivity”. Therefore it is expected that all the theories must recognize

that, the modern day management recognize that management is culture bound.

The Relationship between the Scientific, Administrative and Bureaucratic Theories of

Management

The three streams of classical Management Theories namely the Scientific, Administrative

and Bureaucratic, are comparable and complementary (Ile, 1999:98). The focuses of their

views were about the nature of man and his

15
organization. The theories advocate for formal organization that takes advantage of

specialization and hierarchical functional criteria to increase efficiency in achievement of

organizational objectives.

There differences were in the following areas;

1. As the Scientific management focused its unit of analysis on the physical activities of

work, the Administrative theory focused on practical men in action and are called

Practicing Managers, their major orientation was the prescription of principles and

other concepts of achieving formal organizations while Bureaucracy took a

comparatively detached and scholarly view that described them as normative model of

organizations.

2. While Scientific management was concerned with the relationship of a worker to his

Job in organization, with the objectives of improving performance of routine

production task, the Administrative Theorists were telling how to accomplish an

organization and the Bureaucratic theory said what an organization ought to be.

3. The Scientific management focused on production, Administrative theories laid

emphasis on management as a component of the organization and Bureaucracy focused

on the organization as a whole.

4. Scientific management can be thought of as a bottom-up theory, while the

Administrative and Bureaucratic theories in a comparative sense are top-down

theories.

5. The prescriptions of Administrative and Bureaucratic theories were distilled from

experience, while the prescriptions of Scientific management were derived from

specific studies in each case.

Method and Materials

The study was carried out primarily through the survey method and interview of employees in

16
three manufacturing firms in Enugu state National Breweries which include EMENITE,

ANAMMCO and NGER GAS. Secondary data were obtained through books, journals, and

internet. A sample size of 177 was obtained from the population of 320 at 5% error tolerance

and 95% degree of freedom using yamane’s statistical formular. 158(89%) of the

questionnaire distributed were returned while 19 (11%) of the questionnaire distributed were

not returned. The questionnaire was designed in likert scale format. The researcher conducted

a pre-test on the questionnaire to ensure the validity of the instrument. Data collected were

presented in frequency tables.

Data Analysis and Discussion

The data obtained from the field were presented and analyzed with descriptive statistics to

provide answers for the research questions while the corresponding hypotheses were tested

with Pearson’s Correlation and Linear regression at 0.05 alpha level.

Does the current waste and labour turnover in National Breweries organisations

arise as a result of the practice of classical management theories

Table 1: Coded Responses on classical theories and level of waste and labour turnover

s/no Questionnaire items S.Agree Disagree Undecided

/Agree /S.Disagree

Fre % Freq % Freq % Total

q (Fre

g)

1 Some of organisational wastages

are cause by 14 89 10 6 8 5 158

application 0

classical

management?

17
2 Classical management

contributes to labour 15 96 2 1 4 3 158

turnover in our organisation ? 2

3 TOTAL 29 12 12 316

Source: fieldwork 2013

According to table (1) based on aggregate response 292(92%) indicated strongly agree,

12(4%) indicated disagree while 12 (4%) indicated undecided. This implies that classical

management theories significantly contribute to current level of waste and labour turnover in

National Breweriesn organisations

18
Hi: classical management theories contribute significant to the level of waste

and labour turnover in National Breweries

Table 2 Chi-Square Tests classical theories and level of waste and labour turnover

Value df Asymp. Sig. (2-

sided)

Pearson Chi-Square 160.335(a) 8 .000

Likelihood Ratio 193.493 8 .000

Linear-by-Linear Association 4.975 1 .026

N of Valid Cases
316

SOURCE: SPSS

Table 2 is the output of the computed Chi-Square values from the cross tabulation statistics of

observed and expected frequencies with the response options of agree to disagree based on the

responses of the research subjects from the manufacturing firms in National Breweries.

Pearson. Chi-Square computed value (X 2c= 193.493) is greater than the Chi –Square tabulated

value (X2t =15.51) with 8 degrees of freedom (df) at 0.05 level of alpha (X2c =193.493, p,<

.05)

Decision Rule

The decision rule is to accept the alternate hypothesis if the computed Chi- Square value

is greater than tabulated Chi-Square value otherwise reject the alternate hypothesis.

Decision

Since the pearson Chi- Square computed X2c= 193.493 is greater than Chi- Square table

value X2t =15.51, the null hypothesis is rejected and alternate hypothesis is accepted. Thus,

we conclude that classical management theories contribute significant to the level of

waste and labour turnover in National Breweries

workers, slow pace of growth and development of National Breweries

organisations

Table 3: Coded Responses on classical management theories and layoff of workers,

slow pace of growth and development

s/no Questionnaire items S.Agree Disagree Undecide

/Agree / d

S.Disagre

Freq % Freq % Freq % Total

(Fre

g)

1 Classical management theories cause

lay off 148 94 3 2 7 4 158

workers in our organisation?

2 Slow pace of growth and development are

effect of classical management in our 152 96 3 2 3 2 158

organisation ?

3 300 6 10 316

Source: fieldwork 2013

According to table (1) based on aggregate response 300 (95%) indicated strongly agree,

6(2%) indicated disagree while 11 (3%) indicated undecided. This implies that layoff of

workers, slow pace of growth and development are influence classical management

theories on National Breweriesn organisations

20
Ho2: Application of the classical management theories significantly influence the

layoff of workers slow pace of growth and development of organisations in

National Breweries .

TABLE 4 SPSS result of the influence of classical management theories on layoff of

workers slow pace of growth and development

Particulars R R2 Adj.R2 DDW Standard Coefficients Ssig.

Beta T- Value

firms 0.-638(a) 0.407 1.03387 0.253 0.-638 -10.339 -106.890 0.000

SOURCE: SPSS

NOTE:

R = Correlation Coefficient or

Beta R2 = Coefficient of

Determination

Adj. R2 = Adjusted Coefficient of

Determination DW = Durbin Watson (d)

test statistic

T-value = Student t- test Statistic

21
F = F- test statistic

Model Equation CMTH = 0-.571 - 0.932LGD

The result indicate that there was a negative significant effect of classical management

theories on workers layoff .slow pace growth and development as t = -10.175 and which is

above the rule of thumb positivity of 2 and the coefficient of inventory management is

(0.571). the variations from the model is explained by the model as indicated from the

coefficient of the determination (r2) value of -63.8%.

Also the result indicates that there is a negative relationship between classical

management theories and layoff of workers, slow pace and development as indicated

by r value of 0.-614 which is negative e as shown by beta value of 0.-614

Could the closure of some of the some of organisations be as a result of the

application of the theories in the management practice of the organisations and

could the application result to low performance of an organisation

Table 5: Coded Responses on classical management theories and low performance

s/no Questionnaire items S.Agree Disagree Undecided

/Agree /S.Disagree

Freq % Freq % Freq % Total

(Fre

g)

1 Closure of some of some of the

National Breweries organisations 154 97 1 1 3 2 158

were caused by

the

application of the theories in

management practice organisation

22
2 Closure of some of some of the

National Breweries organisations 17 11 134 85 7 4 158

were not caused by the application

of the theories in management

practice organisation

3 171 135 10 316

Source: fieldwork 2013

According to table (5) based on aggregate response 171(54%) indicated strongly agree,

135(43) indicated disagree while 10 (3%) indicated undecided. This implies that Closure of

some of some of the National Breweries organisations were caused by the application of the

theories in management practice organisation

Hi3: closure of some organisations is as a result of the application of the theories in

the management practice of the organisations and the application result to low

performance of an organisation

Table 6 Chi-Square Tests on closure and theories application

Value df Asymp. Sig. (2-

sided)

Pearson Chi-Square 289.039(a) 8 .000

Likelihood Ratio 311.623 8 .000

Linear-by-Linear Association 114.154 1 .000

N of Valid Cases
316

SOURCE: SPSS

23
table 6 is the output of the computed Chi-Square values from the cross tabulation statistics of

observed and expected frequencies with the response options of agree to disagree based on the

responses of the research subjects from the manufacturing firms in National Breweries.

Pearson. Chi-Square computed value (X 2c= 289.039) is greater than the Chi –Square tabulated

value (X2t =15.51) with 8 degrees of freedom (df) at 0.05 level of alpha (X2c =289.039, p,<

.05)

Decision Rule

The decision rule is to accept the alternate hypothesis if the computed Chi- Square value is

greater than tabulated Chi-Square value otherwise reject the alternate hypothesis.

Decision

Since the Pearson Chi- Square computed X2c= 289.039 is greater than Chi- Square table value

X2t =15.51, the null hypothesis is rejected and alternate hypothesis is accepted. Thus, we

conclude closure of some

24
organisations is as a result of the application of the theories in the management practice

of the organisations and the application result to low performance of an organisation

Findings and Discussions

From the data analyses, one could conclude that, the current practice of the classical

management theories of scientific management, administrative and bureaucratic theories were

responsible for the waste and labour turnover, layoff of workers, slow pace of growth and

development and low productivity in National Breweriesn Organizations as indicated by the

three organizations studied.

Though the practice of the Scientific Management Theory contributed very well to the

dramatic increase in productivity and higher pay to workers, it placed undue pressure on

workers, to work even more than their capabilities and this also made managers of

organizations to be more autocratic and exploitative which lead to frustration of workers who

sought for employment else where. A theory that laid emphasis on efficiency at shop level,

through the application of time and motion study, but lost sight of the general aspect of

management definitely cannot sustain labour force and maintain effective and efficient

utilization of resources.

The Administrative Theory contributed immensely to the principles and practice of

management in modern time but laid much emphasis on task rather than the people.

Unmotivated workers definitely will perform below expectations, since there is low morale

amongst the work force. Hence productivity is a function of ability and motivation.

The Theory of Bureaucracy, emphasized more on bureaucratic leadership in organizations for

mass administration in modern society, recognizing the functional prosperities of bureaucratic

system in formal organizations but failed to recognize the need for informal organizations in a

formal setting.

Summary Findings :

25
Classical management theories significantly contribute to current level of waste and labour

turnover in National Breweriesn organisations (X2c= 193.493 > X2t =15.51; p< 0.05)

There was a negative significant effect of classical management theories on workers

layoff .slow pace growth and development (r value of 0.-614 ;t = -10.175; p< 0.05)

Closure of some organisations is as a result of the application of the theories in the

management practice of the organisations and the application result to low

performance of an organisation (X2c= 289.039 > X2t =15.51;p<0.05)

CONCLUSION:

Based on the foregoing, we therefore conclude that given the present performances of the

National Breweriesn Organizations, more need to be done in the way the classical

management theories were applied, such that workers will be more motivated to perform in a

conducive work environment. This will go a long way to increase the business efficiency of

labour and happy working environment

RECOMMENDATIONS:

From the foregoing, we therefore recommend as follows.

Organizations should reduce waste and labour turnover by introducing some other

motivational tools in their work environment, such as embracing the behavioural science

thoughts. Management should recognize the individual motivation, group behaviour and

interpersonal relationship within and outside the work environment. These will create

understanding on the part of workers and will encourage the workers, to work for the

achievement of the entire organizational objectives, from where they will achieve their

individual objectives.

Organizations should maintain their labour force and increase growth and development

by reducing the management's undue pressure on workers, encourage workers use of

26
initiatives, allow innovations and workers participation to management through emphasis on

cultural/political differences in the organizations. Joint management about participation in

decision making, will increase productivity more than what obtained through the practice.

The management of Organizations should properly apply the theories as some aspects

of it if properly applied will ensure the achievement of organizational objectives. The periodic

review of manuals, rules and regulations of the organizations to ensure that the bureaucratic

settings are in tune with modem trends in the business environment of the country will also

help the future of the organizations.

Above all, the organizations must understand, accommodate, embrace and promote

people dynamics (nature, needs, values, motivations and general cultural/political

environmental differences), if it must achieve the objectives of efficient productivity. We

believed that these will go a long way in reducing the negative effects of the theories on the

organizational performances.

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27
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29
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