This document discusses the influence of classical and human relations approaches to management today. It summarizes key classical management theories including Taylor's scientific management, Fayol's administrative theory, and Weber's bureaucracy theory, which focused on efficiency and productivity. It also discusses some drawbacks like not considering worker well-being. The human relations approach is then covered, including Maslow's hierarchy of needs theory and Hawthorne studies showing increased motivation when workers feel valued. The human approach considers psychological and social factors to influence worker behavior for increased productivity.
1. INFLUENCE OF CLASSICAL AND HUMAN RELATIONS APPROACHES IN
MANAGEMENT TODAY
Chukwuka Nwachukwu – University of South Wales
8th
May 2016
The Business dictionary defined Management as
“The organisation and coordination of the activities of a business in order to achieve defined
objectives”
Management is a phenomenon that is often deliberated at virtually all strata of the economy
which includes private and public sectors, etc. It involves planning, organizing, staffing,
leading and controlling available resources to accomplish the goal or target of an
organisation (Wikipedia.org, 2016). Most people tend to refer management to business
environments alone. The principle of management also applies to environments outside
business such as Churches, Schools, Non-Governmental Organisations (NGOs) etc.
Whatever task that requires the evenly distribution and optimization of resources requires
management initiatives and principles.
The principle of management is as old as the world could be. We have to take into
consideration the efficiency and effectiveness demonstrated by the workers constructing the
towers of Babel (Holy Bible NIV, Genesis 11: 1-9). It was shown that there was a goal to be
achieved; the goal was to build a tower as high as the heavens. They spoke one language,
understood each other and the goal to build a tower as high as the heavens to enable them
equate themselves to God. The resource which includes workers, bricks etc were allocated
and distributed evenly to ensure they meet their set goal. The tower was built to a great
extent until the intervention of Divine Providence which changed their language causing
confusion and lack of understanding among the workers.
The 7 wonders of the world which includes the Great Pyramids of Egypt, Hanging Gardens of
Babylon, The Statue of Zeus, Temple of Artemis, The Mausoleum, The Colossus of Rhodes
and the Light House at Alexandria, Egypt didn‟t just fall from the Sky. They were built by
humans and could have employed the use of management principles in order to complete
these massive projects (Saylor Foundation, No date).
2. Efficiency of processes (Classical approach) is important as well as proper administrative
duties of an organisation which involves people‟s management (Human approach) are
necessary in the life of an organization. This work will critically evaluate the influence of
classical and human relations approaches to management today. This will be done by
exploring management theories from the late 18th
century up to contemporary theories.
CLASSICAL APPROACHES TO MANAGEMENT
Classical approaches to management gained prominence during the Industrial revolution. Its
focus was on the efficiency, productivity and output of workers as well as their contribution
to the bottom line (Parker and Ritson, 2005).
There are major theories that promoted the classical approaches to management. These
theories are listed below
1. Taylor‟s theory of Scientific Management
2. Fayol‟s Administrative theory
3. Weber‟s theory of Bureaucracy
Taylor’s theory of Scientific Management
Frederick Winslow Taylor is an early pioneer of management theory and is known as the
founder of scientific management. Scientific management is the application of scientific
methods to the management of workers and processes. This principle calls for the best way
of carry out a task or job.
Prior to Scientific management, jobs were carried out by skilled craftsmen who have
mastered the job over a long period of time. They were masters of the job, thus took
decisions with respect to their jobs without cognizance of the organizational goals. The
autonomy posed by the skilled craftsmen led to a lot of inefficiencies which affected the
bottom line of the organization, used of skilled craftsmen was also expensive and time
consuming (ICMBA, 2010).
The application of scientific method which calls for efficiency of workers led to the review of
the skilled craftsmen, the review further broke down skilled crafts into simpler bits and
processes such that it could easily be learnt by unskilled workers. It broke down a task into
steps and sequences that is expected to be followed for a worker to complete his given task.
3. The essence of this was just to increase efficiency of workers which will reflect on the
bottom line of the organization.
Workers were also concerned about their efficiency and productivity (Soldering); Taylor
believes workers were of the opinion that if they increase their efficiency and productivity, it
would become the standard and fewer of them will be needed thus leading to elimination of
jobs. Lack of incentives with respect to wages also influenced low productivity, workers are
paid equal amount irrespective of their productivity. This has made them to relax in their
duties and give an impression to their employer that they are working at their best. The
reliance of the workers on the rule of thumb methods rather than the optimization of their
processes can be determined by scientific methods.
Taylor carried out several experiments to resolve the issue of low productivity. These
experiments which he called time studies involves the use of a stop watch to measure the
time it takes for a worker to carry out a sequence of motions in other to complete a job.
This was to determine the best way to do a job.
The outcomes of these experiments are 4 principles which are elucidated below;
1. Replacement of Rule of thumb with scientific methods: Rule of thumb is a method of
procedure that is based on experience and common sense, it is a principle regarded
as roughly correct and not scientifically accurate (Merriam-Webster, 2016). A rule of
thumb on a particular subject could be subject to someone‟s personal opinion etc
and cannot be regarded as a standard. A scientifically proven principle could be
regarded as a standard which has been subject to public scrutiny and accepted by
the public as a norm.
2. Proper acquisition of Workers: This involves the selection of workers that are fit for
the job, workers that have the required skills and are willing to seek betters ways to
improve their skills through training courses etc. Employers should ensure proper
selection, training and development of workers rather than allowing the workers to
train themselves.
3. Employers should have a structure in place that promotes a healthy relationship with
workers or employees. This will further ensure that workers follow the scientific
methods that have been developed.
4. Division of work between the managers and workers. Managers should apply
scientific methods to planning while workers should be responsible for carrying out
the task.
4. Scientific management principles are very common in manufacturing and factories. The
assembly line in car manufacturing is a vivid example of the application of scientific
management principles to manufacturing.
Henry Ford of Ford Motors ultimate goal was to produce cars for the masses that will be cost
effective on the part of the company and affordable to the masses. He employed the use of
Taylor‟s work which reviewed the work flow at the factory to increase efficiency and
productivity. This review involves the stationary of labourers at their respective points and
allowing the larger part of the car body moving from one labourer point to the order. There
is a time sequence of which the part of the car moves from one point to the other. The
Labourers are expected to carry out their respective tasks which involve fixing the smaller
parts of the cars into the larger body etc.
Henry Ford continued to review and streamline the processes to further reduce the
Turnaround Time (TAT) for producing a car. This continued until 1913 when he was able to
introduce a power driven assembly line in his new factory at Michigan (Salor Foundation, No
date). Between 1908 and 1913 Ford Motors was already able to reduce the average time of
manufacturing a car to 93 minutes and by 1914, they had captured about 48% of the
automobile industry.
The concept of the assembly line not only led to cost savings but facilitated mass production
of Model T cars; Ford Motors most successful car model. These cars were also available for
consumers at affordable rates. The concept of the assembly which was also as a result of
Ford Motor‟s application of scientific management is still relevant in the automobile industry
and other manufacturing industries such as Fast and Consumer Moving Goods (FCMG) etc.
(Saylor Foundation, No date).
Fayol Administrative Theory
Henri Fayol is a french Engineer who is refered to as the father of modern management. He
worked at Chamberbault, a French mining company. Henri Fayol was more bothered about
the administrative principles of management. Administrative principles involve putting a
management structure in place to manage the activities and resources of an organization.
Henri Fayol is highly recognized for his three fold contribution to management thought. The
three fold contributions are elucidated below;
Firstly, Henri Fayol is credited with the belief that organizational and business life was a
combination of six activities. These activities are technical, commercial, financial, security,
5. accounting and management. These activities are different sections that make up an
organization.
Secondly, he identified 5 key functions that comprise managerial activity. These functions
are forecasting and planning, organizing, coordination, command and control of available
resources to achieve a given objective. These functions are basically what define
management.
Lastly, He advocated 14 principles that will guide a manager in performing his managerial
functions. These 14 principles are very important in the life of every organization. They are
highlighted below;
1. Division of Work: Work should be broken down into chunks and assigned as task to
responsible workers.
2. Authority: This is the jurisdiction and responsibility given to a manager. It offers
them the right to give orders
3. Discipline: This is a mark of respect which is as a result of the formal and informal
agreements between employees and employers
4. Unity of Command: A subordinate should report to only one supervisor or superior
5. Unity of Direction: One supervisor to a team with a clear and common objectives
6. Subordination of individual interest to the general interest: The general interest of
the group should supersede individual interest
7. Remuneration: Salaries and wages should be equal to work done. It should be fair to
employees and employer
8. Centralization: This depends on the size of the organisations. This is necessary for
effective coordination of allocation of resources
9. Scalar Chain: The line of authority from top to bottom
10. Order: Evenly distribution and allocation of resources
11. Equity: Fairness and justice between the employer and employees
12. Stability of tenure of personnel: Employees should be allowed time to settle in their
jobs and also provided with the right tools to work effectively and efficiently
13. Initiative: Employees should be encouraged to display their creativity within their
jurisdictions
14. Espirit de Corps: Team work should be encouraged. (Parker and Ritson, 2005)
The three fold combination of Henri Fayol is relevant in contemporary management; this is
very evident in structured organisations such as financial institutions. A bank is made up of
6. several departments such as Treasury, E-business, Central operations, Risk Management
etc. It is made up of several levels of management such as Executive management which
includes the executive directors; senior management which involves the various heads of
departments, group and directorate heads; units heads who are responsible for managing
and coordinating the task and processes of their subordinates. The reporting line is
described below;
Officers – Unit heads – Senior management- Executive management.
Tasks and processes in a bank are sensitive and subjected to lots of controls to avert fraud.
The 14 principles credited to Henry Fayol are applied such that every staff is guided and
acts within his jurisdiction. Acting against the principles could lead to internal fraud. This is
because the controls put in place to checkmate decisions and processes where not adhered
to.
Henry Fayol‟s administrative principle of management is simply to guide an organisation
along the path to success in achieving its set goals and objectives in an efficient and
effective manner.
Weber’s Theory of Bureaucracy
Max Weber is a German theorist and sociologist who supported Henri Fayol‟s Administrative
principle. He envisioned management of an organisation to be on an impersonal and rational
basis. His theory was as result of the ways organisations in Europe operated in the 18th
century. They operated as a personal and family like business, employee loyalty was to a
single individual. This affected decision making as employers tend to make decisions based
on sentiments and personal reasons.
Max Weber believes an organisation that is built on rational authority would be more
productive and adaptable to changes especially in a dynamic environment. Employee
acquisition and development will be based on competence and technical qualification
(Abhijith, R, 2011)
A bureaucratic organisation is built on rules and regulations which are binding on all
employees and most importantly hierarchy (i.e scalar chain). Managers will depend not on
personality for dishing out orders but on legal power invested in managerial position.
Bureaucracy has its bottle necks with its endless rules and levels of authority but has been a
standard way of checkmating and dealing with employees.
7. Government institutions are bureaucratic; there is a hierarchy that must be strictly adhered
to from the director general to the lower staff. It is not based on the technical knowhow of
workers but on the level of authority.
Draw Backs of Classical Management
Classical management which promotes the efficiency and increased productivity of workers
and processes didn‟t take the following into the account;
1. Well-being of Workers: The welfare of workers was not considered by classical
management principles. It was more concerned about increased output of the
employees. This could be seen as irrational on the part the employers as being
concerned with productivity and not wellbeing of workers
2. Non-Financial Reward: Rewarding workers with increase wages or salaries might not
be the best form of motivation. Other incentives such as recognition of workers
contribution, provision of free medical care etc are non-financial ways of rewarding
workers.
3. Social Interaction: Communal communications among workers through team
bonding exercises etc. are ways to promote a healthy relationship among employees.
(ICMBA, 2010)
These draw backs led to the founding of the Human approach to management.
HUMAN APPROACH MANAGEMENT
Hawthone Studies
Elton Mayo pioneered human approach management in the 1930‟s at the Hawthorne plant
in the United States of America. He is credited with the belief that if Employers care more
about their employees, it will go a long way to motivate them. This will have a positive
impact on productivity thereby leading to increase in profitability.
Elton further went to prove that when employers pick interest in their employees, the
employees feels more valued and empowered. They feel like they part own the organisation.
Many organisations are lacking in this approach especially small business enterprises. The
multinational organisations in Nigeria such as Shell, Chevron, Nestle, GSK have good
welfare policy that considers the health and well-being of their employees. They emphasize
8. on healthy living, safety precautions etc. Nestle offers free lunch to its employees as well as
GSK. There is free medical care to an extent for employees. These are social factors that
motivate employees thereby stimulating increase in productivity. A leading bank in Nigeria
offers free crèche/day care for their staffs that recently returned from maternity leave and
are nursing their babies. The period for this service is one year. The Lagos state
government increased the Maternity leave for women from 3months to 6 months and also
granted 10 days paternity leave for men.
Some of the examples mentioned above are measures put in place by employers to
motivate their employees.
Maslow Hierarchy of Needs Theory
Abraham Maslow’s theory is often represented in the form of a pyramid.
Credits to Wikipedia
Physiological – This includes the survival of the human body, what the body requires to
survive. This includes food, shelter, water, air etc. This level is very important as failure of
an employee at this level will be disastrous. This could be the reasons why some
organisations offer free lunch. This level must be fulfilled first to enable the employee think
properly.
Safety – The security of life is very important. An employee will be very worried if he
doesn‟t have security over himself and his family. Absence of security will de-motivate an
employee.
9. Love/Belonging: After the physiological and safety levels have been fulfilled, the next is
Love/sense of belonging. The peer group/ age grade system or learning communities or
associations offers employees a sense of belonging. It offers them opportunities to share
experiences and seek solutions to their challenges. A problem shared is a problem half
solved.
Esteem: Self-esteem and Self-respect of employees instills confidence in them. They feel
motivated. Low self-esteem and self-respect could lead to psychological imbalances and
depression of employees.
Self-Actualization: This is the level that an employee could say he has discovered himself.
At this level, all the major needs have been taken care of or addressed. The employee will
be able to achieve whatever he can (Wikipedia, No date)
An average Executive Director in the banking industry in Nigeria is entitled to a Mortgage,
two drivers, two cars, Family vacation ones in a year, residential security, Gasoline supply
at residents for power etc. The organisations have basically taken care of every need of the
Executive director, all that is expected of the Director is to work and achieve the set goals.
The human approach to management is psychological and requires the ability to influence
the behaviour of employees to do the right thing in other to increase productivity.
Employees are humans and not machines or processes that need to be streamlined to
increase productivity.
The well-being, social interactions, individual achievements and career paths have to be
taken into consideration in the planning and structure of an organisation. An employee‟s
growth should be directly proportional to the growth of the organisation. The employer
should be able to support its employees in training and development, health care etc.
Increased attention of employers on its employees will increase productivity.
CONCLUSION
Classical management which addresses the need to increase efficiency and productivity is
still very relevant in contemporary management; human management which is very
important requires the employer to closely pay attention to its employees as this will
motivate them.
10. These two principles are very much relevant and should complement each other. This has
played out in Organisations such as Nestle which is into manufacturing and also still has to
manage its staff. The combination of both principles could be said to be the fulcrum of the
organisation.
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