It was an era where so many alterations in the world Economy took place. In the closing decades of the 19th century there was a quest of seeking innovative ways to increase organizational efficiency and effectiveness. The Scientific Management Theory initiated on the basis of that. In this period of time crafts production was substituted by large factories in which a lot of technical revolutions have been taking place. The owners and managers were not capable of coping to these challenges therefore they hunted for advanced techniques to overcome this situation. As a solution the concepts of Job Specialization and division of labour came about. In this scenario workers who specialized in their respective tasks became more skilled.
The Scientific Management Theory
Fredrick W. Taylor was the architecture of the concept Scientific Management, “The systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency”. It was believed that the most effective and efficient division of labour could best be determined by the concept of Scientific Management. There were four core principles in this concept.
* Investigation and experimentation on organization performance * Codification of new methods/standards
* Selection of employees according to codified standards
* Establishing a level of performance and a pay system with rewards
In 1910 most of the organizations were using this concept but selectively. Even though there was an increase in performance some disputes about this concept lead to an increase in trade union involvement. There were some major issues in this concept. * Availability of fewer jobs
* Job dissatisfaction
* Distrust among employees and employers.
Some organizations redesigned the principles according to their vision. For example introduction of moving conveyer belts in Henry Ford’s factory can be taken in to consideration. However these approaches were not able to solve the emerged issues. Nevertheless Taylor’s work had a lasting effect on management production systems. Frank Gilbreth and Lillian Gilbreth who were the successors of Taylor studied how the working environment influences the performance of the employees. They made a heavy contribution in time-and-motion study. They demonstrated that by following arrangements organizations can solve their issues effectively. * Breaking up each job action into its components.
* Finding better ways to perform the action.
* Reorganizing each job action to be more efficient
Administrative Management Theory
Researchers attempted to discover how to create an organizational structure that leads to high efficiency and effectiveness. Theory of Bureaucracy was developed by Max Weber as a succession of these researches. Bureaucracy is basically a formal system of organization and administration designed to ensure efficiency and effectiveness. There were several principles in this theory.
Weber identified several factors there should be in a bureaucracy system. Simultaneously Henry Fayol identified 14 principles that should be vital to increasing the efficiency of the management process according to his perspective. These studies of Fayol and Weber laid the foundation of modern management theory.
Behavioural Management Theory
This is the study of how managers should behave in order to motivate employees and encourage them to strive towards high levels of performance as an organization. In the previous theory there wasn’t a major concern about the employee viewpoint. Thus Mary Farker Follett explained why it is important to think about the human side of management. According to the studies of Follett managers should behave as coaches and facilitators –not as monitors and supervisors and the importance of direct inter communication between managers of different departments to...