In this report I will be looking at the pros and cons to a classical style management and the human relations style management. I will then be looking at Ikeas management style and which areas of each management style could be used to improve the performance of the management team and which areas work and should be retained by Ikea. IKEA is a well-known household name. They are an extremely popular business. They sell all kinds of household fittings form; the smallest t-spoon to huge double beds. IKEA first started in the 1940's in a small farming village in southern Sweden where it was founded by Ingvar Kamprad- when he was 17. IKEA originally sold pens, wallets, picture frames, table runners, watches, jewellery and nylon stockings. In the 50's and 60's IKEA forged good relations with its suppliers in Poland, as they started to use a lot more wood in many of their designs. After 41 years of steady growth Ikea opens its first store in the USA. Then IKEA reaches a huge milestone, after 50 years of providing millions of people with their home furnishings IKEA reaches 114 stores worldwide in 25 countries. Ikea is still growing throughout the world.
In classical management there was no progression to management and the main aim was to make profit for the company. The classical scientific branch arose because of the need to increase productivity and efficiency. The emphasis was on trying to find the best way to get the most work done by examining how the work process was actually accomplished and by scrutinizing the skills of the workforce. The classical-scientific management structure is an organisational hierarchy with three levels of management: •Top-level management is occupied much of the time with organising and controlling. The level of management is a board of directors, and it is the board that will develop long term strategic plans to meet the objectives of the business. •Middle management co-ordinates the activities of supervisors. It formulates department policies and plans in accordance with the strategic plan and objectives in the overall budget. •At the lowest level of the hierarchy are the supervisors who are responsible for getting jobs done. These supervisors oversee day-to-day activities and follow the directives of management. Because of the relatively small span of control, managers have few workers to control.
Frederick Taylor (1917) is often called the “father of scientific management.” Taylor believed that organizations should study tasks and develop precise procedures. Taylor developed scientific management theory (often called "Taylorism") at the beginning of this century. His theory had four basic principles: 1) Find the one "best way" to perform each task,
2) Carefully match each worker to each task,
3) Closely supervise workers, and use reward and punishment as motivators, 4) The task of management is planning and control.
Initially, Taylor was very successful at improving production. His methods involved getting the best equipment and people, and then carefully scrutinizing each component of the production process. By analyzing each task individually, Taylor was able to find the right combinations of factors that yielded large increases in production.
Henri Fayol (Istanbul, 29 July 1841–Paris, 19 November 1925) was a French mining engineer, director of mines, who developed independent of the theory of scientific management, a general theory of business administration also known as Fayolism. He was one of the most influential contributors to modern concepts of management. Fayol the developed the 14 principles of management highlighted below. Controlling is described in the sense that a manager must receive feedback about a process in order to make necessary adjustments. The 14 Principles of Management:
1.Division of work. This principle is the...