Modern Management Theory

Scientific Management theory is the theory that you need to give workers an incentive to work harder and to produce greater results by observing their work methods over a period and then show them better and more effective ways of working or completing a task. Patrick Windslow Taylor carried out a study on how his men were loading pig iron onto a rail car. His study confirmed that instead of each man loading 12 ½ tons per day that they should be able to load 47 ½ tons per day he needed to incentify his men to increases their workload but their wages would only be increased by 60% not the 300% which was the increase in productivity. He believed that the gains of the increases productivity should be reaped by the end consumer as well as the workers. It was also observed that workers tasks would be matched with their skills and ability. Also, by studying work methods it was proven that by workers co-operating with each other better results were achieved. The benefits of the industrial revolution would be felt by everyone in society. Tasks previously done manually would now be done by machine. (Center, 2005)

Outline of Administrative Management theory The administrative theory or better known as 14 Principles of Management by Henri Fayol is a structured way of managing people based on years of research. This is seen to be one of the key management tools to his day. 14 principles of Management are statements that are based on fundamental truth. These principles of management act a guideline for decision-making and management actions. They are drawn up by means of observations and analyses of events that managers encounter in practice. The 14 principles of management were developed after years of studying businesses and people. The principals as follows Division of Work, when employees are specialized, output can increase because they become increasingly skilled and efficient.Authority, Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility.Discipline, Discipline must be upheld in organizations, but methods for doing so can vary.Unity of Command, Employees should have only one direct supervisor.Unity of Direction, Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated.

Subordination of Individual Interests to the General Interest, the interests of one employee should not be allowed to become more important than those of the group. This includes managers.Remuneration, Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation.

Centralization, this principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance.Scalar Chain, Employees should be aware of where they stand in the organization's hierarchy, or chain of command.Order, the workplace facilities must be clean, tidy and safe for employees. Everything should have its place.Equity, Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate.Stability of Tenure of Personnel, Managers should strive to minimize employee turnover. Personnel planning should be a priority.Initiative, Employees should be given the necessary level of freedom to create and carry out plans.Esprit de Corps, Organizations should strive to promote team spirit and unity. (team, 2016) This management tool is still widely used today the basic idea of setting up a chain of command and putting people in positions where they can play to their strength’s and work to their maximum potential. Discussion of similarities and differences between these two approaches Contribution of each to modern management theory.

Both Scientific and Administrative management share and common ground in that they both wish to increase the efficiency of the organisation. Also, along the same grounds both management theories shared the following principle ideas. That work was divided into specialised task easy enough to learn and to be performed efficiently (division of labour). That managers were responsible for assigning the tasks to employees and for guiding them to achieve organisational goals (unity of direction). That all workers are given payment for work was related to their efficiency and ability to meet the set targets (remuneration). That managers and workers shared the common goal which was the foundation for cooperation between them (espirit de corps).

Managers were responsible for the employee work and efficiency of the organisation. Managers were obliged to threat employees fairly. The main difference between Taylors and Fayol’s approaches was that Taylor wanted to achieve increased organization efficiency by modifying the way in which workers carry out their tasks and Fayol on the contrary by modifying the way the organization is managed. Fayol introduced centralization, the unity of command as well as clear lines of authority and communication while preserving some employee initiative. (students.com, 2017) I feel that there is a middle ground between these two theories’ that can be achieved. For example Taylor is trying to turn his employees into robots on an assembly line and not allowing them any kind of personal creativity just simply to follow instructions. However Fayol is ensure stable operation of organisation by introducing the concepts of securing resources, subordination of individual interests to the general interest, discipline and stability of tenure. . In comparison Taylor completely neglected those areas. Some examples of organisations that demonstrate these management approaches is McDonald’s.

For example, every cashier at McDonald’s has a set of standard questions including “Small, Medium, or Large” and “Would you like fries with that?” McDonald’s motivates its employees through programs such as Employee of the Month, Company car program, and the recognition program; where the employees receive acknowledgement for their hard work. (bartleby.com, 2012) . This is an example of a modern company still demonstrating these management approaches still to this day.