Essentials of Management: Classical versus Contemporary Management Theory - Essay Example

CLASSICAL .VS. CONTEMPORARY THEORY OF MANAGEMENT Name of student Name of School Classical .Vs. Contemporary Theory of Management. With the tendency for global competition, technology development, as well as internationalization of enterprises, organization structures have changed which led to the transformation of management practices. HR managers need to help organizations alter to gain competitive advantages. Classical management practices were adopted in the 1960s. According to this system, organizational objectives and incentive mechanism are conducted in specific rules and are also easy to control. Adam Smith established the basis of classical, free trade theory, the Wealth of Nations is a pioneer to modern academic discipline of economies. However, modern management practices pay more attention to strategic management. The classical management has paved the way for the modern management practices. Moreover it is argued that the 24/7 customer service and real-time supply chains is good representative for contemporary management theory. According to the contemporary management theory, the managerial strategy has become an important field and the approach of management is not settled, it changes with the different demands. In addition, it also focuses on build quality into all aspects of operations. Therefore, this essay will discuss managerial approaches and the many changes between classical and contemporary management theory. The classical management theory also known as the scientific management theory advocates for the scientific study of tasks and the workers assigned to the various tasks in an organization. The theory is distributed on three levels of management, the top, middle and lower level management. There is the distribution of labor and breaking down of complex tasks into many simple procedures that workers can carry out easily. Communication is one way where discussions are held by top management then later on decisions are passed down to other levels downward. Management styles used are usually autocratic and the behavior of workers is easily predicted (Mahmood 2012). There are hierarchical levels of authority and coordination coupled with horizontal differences between units. In regards to today’s workplaces we find that management develops standard methods of doing each job by use of scientific management, this way there is no overlapping of duties and everyone does what is assigned to them. Workers are selected based on their skills in recent times and also their abilities in regards to the job at hand. Work is planned to eliminate interruptions and also to ensure there is efficiency which in turn increases productivity. The McDonalds chain of restaurants would be a good example of an organization that employs scientific management where there is uniformity no matter which country you are visiting. The methods of cooking and cleaning and even promotions are the same in all stores worldwide. Scientific management still applies in today’s workplaces where tasks are studied and broken down to remove functions that do not contribute to the end product as a way to streamline and increase productivity of employees. Selection of workers is done scientifically with senior management selecting the people with the right skills for the right job and ensuring they are trained. Supervision also takes place where managers ensure the jobs are done in the best way that suits the goals of the organization. Tasks are divided between the management and workers where managers apply management principles supervising and planning while the employees carry out the tasks. The use of incentives as a way to motivate people is found today in places like factories and also some offices where increased productivity leads to increased pay. Hierarchical structure is one of the strengths of the scientific theory of management. The organization is found to have three distinct levels of management being the top, middle and lower level management. Every level has its own responsibilities and objectives. The top level is concerned with the long term goals of the organization and is made up of the board of directors and chief executives. The middle level is made of managers and supervisors who are responsible for setting departmental goals according to the approved budget while also aligning them to the overall goals of the organization. Lower level management are supervisors who oversee the day to day activities performed, look into employee problems and provide training and development. Levels of leadership are clear and their tasks defined. The division of labor is another advantage where projects are broken down into smaller tasks and hence they become easier to complete. Responsibilities of employees are clearly defined. Workers are able to specialize in one area of their expertise. The division of labor leads to higher productivity. Monetary incentives are also advantages in the theory where employees are motivated by way of monetary rewards. It leads to more productivity while management gains the ease of control over their employees while they workforce in turn feels appreciated for their hard work. It is mostly exercised in factories and also workplace offices with incentives such as bonuses and paid time off. Autocratic leadership is an added advantage, it means that one leader is assigned to make the decisions and direct the employees (Koontz 2010). Disadvantages of the theory include its emphasis on efficiency without considering the human needs of the workers. The organization is viewed as a machine and workers as parts to be fitted into the machine to make work more efficiently instead of regarding them as individuals. As efficiency increases workers become unsatisfied with their working conditions leading to anger and deteriorating work ethics which creates negative relationships between workers and managers. There is disregard of the human factor and their behavioral aspects which leads to the need for a new approach to handle the workers. In regards to growth of an organization, we find the theory can be difficult to use in places where the organization is too large with hundreds of employees each carrying out complex functions. It is difficult to micro manage in such instances and more delegation of tasks is needed (Clarity 2010). The contemporary theory of management puts into consideration all aspects of the current situation that the organization is in. The effectiveness of management depends on the coordination between the use of management behaviors and the situations found in the organization (Koontz 2010). The theory states that for task or relation motivation to actually take place it depends on whether the management is able to steer and also effect the group’s situational favorability. To assess situational favorability one must take into consideration three factors which include the leader-member relations, task structure and position power. Leader- member relations look at the manager’s relations with his subordinates, the task structure relates to the scope of the work, standard procedures and measures of assessment. Position power relates to the level of authority that the manager has in regards to punishing or rewarding of behavior. In today’s workplace managers take the required action based on the details that are most important to the organization. An example would be technology firms found in global markets today such as Apple Incorporated. With the ever changing types of technology comes the challenge to keep up with competition which leads to the change in management. Instead of being strict on workers more freedom is given to allow them the chance to tap into their innovative sides. Incentives are also given in different forms other than just monetary means. Communication is encouraged between managers and employees to enhance performance and end results much like what is happening at Apple Incorporated with Tim cook as the new CEO. Workers are picked according to their skills and knowledge and assigned to specific tasks that they are good at, while the best workers are placed on the most important jobs in Apple Inc. Similarities between the two theories include the use of the three levels of management in the organization with communication coming from the top heading downwards. There is also the breaking down of tasks in the classical theory and in the contemporary theory where people concentrate on tasks that they are good at doing. The advantages of the contemporary theory include its ability to be used in both small and large organizations to provide integrated solutions regardless of the size of the project (Sapru 2013). It works best when the company has complete control of the roles of the employees which ensures they remain focused and adapt to the circumstances. The disadvantage of the contemporary approach is that it requires strategic thinking when the need arises and hence potential risks that might be found in the future are not easily evaded. Differences between the contemporary and the classical theory include the observation of human behavior in the former and the observation of human efficiency in the latter. In the contemporary approach there is use of consultants to help the management understand the workplace and run it in a better manner while in the classical management guidance comes from the top level management where the decisions are made. Breaking down of tasks to make them simpler is found in the classical theory while in the contemporary approach there is the use of qualified people to perform certain tasks that require skill (Clarity 2010). There is the use of incentives to motivate people to work harder in the classical approach while in the contemporary there is rewarding and punishing of behavior when dealing with employees and how to motivate them to work harder. The scientific approach was used when people were not learned enough and tasks did not require the use of great expertise while in the contemporary approach people are chosen to perform certain tasks in regards to their expertise in a certain field. The contemporary theory looks at the leader and member relations but the scientific theory does not concentrate on such relations leading to strained relationships between the workers and their management. Examples would include McDonalds which has used the scientific management over the years where tasks are broken down into specific duties for employees and managers have a narrow span of control. Contemporary management can be seen in apple Incorporated which chooses their employees according to their expertise and observation of human behavior is conducted while communication between management and employees is encouraged. In conclusion we find that use of the scientific theory of management is not very commonly used in recent times as it concentrates more on efficiency and does not look at the needs of the workers. The contemporary theory however has some of the aspects of the scientific approach in addition to other new aspects to make it more efficient such as the emphasis on the behavior of the employees and the promotion of good leader- member relations to promote efficiency in the workplace while also checking on the structure of the work. It considers the current situation of the organization and the changes that are happening to be able to manage the company in a better manner while avoiding the chaos that comes with the changing times. Consideration of the current situation of the organization promotes better understanding of the strategic management procedures that need to be taken. Management has changed from its bureaucratic ways where there were strong-armed bosses to having leaders that have to find new ways of getting employees to follow them in the ever changing situations of today’s workplace where they must be more people oriented. They have to accept new roles and come up with new concepts of authority that help to manage a new social order in the workplace where there are social groups and group pressure that have strong impacts on the productivity of workers in the organization. References. Mahmood, Z., Basharat, M., & Bashir, Z. (2012). Review of classical management theories. International Journal of Social Sciences and Education, 2(1), 512-5120. Sapru, R. K. (2013). Administrative theories and management thought. PHI Learning Pvt. Ltd.. CLARITY, C. (2010). Editor’s comments: Construct clarity in theories of management and organization. Academy of Management Review, 35(3), 346-357. Taneja, S., Pryor, M. G., & Toombs, L. A. (2011). Frederick W. Taylor's scientific management principles: relevance and validity. Journal of Applied Management and Entrepreneurship, 16(3), 60. Koontz, H. (2010). Essentials of management. Tata McGraw-Hill Education. Read More