Comparison of Business Management Theories

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Comparison of Business Management Theories

Business management is usually defined as the process of getting people to do things in the right manner. This means that there must be a leader to control and influence these people or human resources. Thus, the management primarily determines the success of a business. While there are many different styles of managers and management techniques, the management theories are equally important. Four main theories of management namely, classical-scientific, behavioural, political, and contingency exist in business management (McNamara, n.d.). These theories have styles, outcomes, similarities and differences when put into practice in a business environment. This essay compares two of these management theories, the classical-scientific and the behavioural management theories and gives examples from the modern world showing their implementation and practise.

Frederick Taylor developed the classical-scientific theory of management in the early 20th Century when most of the workforce was not educated, and democracy was not fully developed (McNamara, n.d). This theory relied heavily on measurements and specification of activities and results for all tasks in an organization (McNamara, n.d.). It is from this management theory that many different management skills and styles that form the foundation of management today emerged. These include the hierarchical structure, with the directors and the CEO at the top charged mainly with planning, organising and controlling (McNamara, n.d.). The second tier in the pyramid is the middle-level management, which coordinates the activities of supervisors as well as developing policies and plans as well employee hiring. At the third level are supervisors, who act as a connection between the workers and the top management (McNamara, n.d.). Another management tool developed from the classical-scientific theory is the division of labour that is widely practised to date. The idea behind labour division is to break tasks into smaller tasks and assign different tasks to different people. Additionally, the classical scientific management style gave room for employee incentives such as bonuses as a good gesture for work well done. The style also provided to punitive measures, such as deductions where the employees did not perform to the standard (McNamara, n.d.). Consequently, this management style is limited in its levels of success because of the poor worker relations associated with it. While the classical scientific management theory shaped management, some of its concepts are limited in their achievement because they do not account for workers’ needs. Consequently, this led to the creation of the behavioural theory by Max Weber (McNamara, n.d.).

The behavioural theories of management look more at work relations and human resource management instead of regulating the power of workers. Contrary to the classical scientific theories that did not allow employees to interact with the top management, the behavioural methods entail improved communication between top management and workers (McNamara, n.d.). The flat structure model adopted by the behavioural management theory contrasts the hierarchical model, and the participative or democratic leadership contrasts the autocratic and authority leadership styles (McNamara, n.d.). The behavioural theory also utilises the concept of multi-skilling, which is similar to the division of labour in the classical scientific theory, except that workers perform many different tasks and become proficient in them. Additionally, the behavioural theory encourages managers to establish a good relationship with the employees, which promotes their view of the organization and the work, hence working harder for the better of the organization (McNamara, n.d.). Consequently, the workers enjoy being part of the team and knowing that their groups’ standards and social needs are taken care of by management. Despite the differences in these management theories, different companies use them successfully.

An example that employs the classical scientific theory is McDonalds, a leading fast food chain with more than 31000 outlets globally (Aboutmcdonalds.com, 2015). A primary principle of the classical scientific management theory is the use of scientific procedures to determine the most effective way of working which McDonalds has adapted. They used this concept to study and plan their equipment design and work schedule to maximise output (Aboutmcdonalds.com, 2015). Additionally, McDonalds adopted the hierarchical business model as evidenced in the numerous manuals and precise rules of conduct for the workers. Furthermore, the classical scientific theory principle is evident in McDonalds pay system that reveals a pay for performance theory with basic pay and incentives for employees to exceed set goals (Aboutmcdonalds.com, 2015). On the other hand, Google has adapted and implanted the behavioural theory of management. Managers at Google practice this theory by doing several things. First, the managers set out to empower their teams and avoid micromanagement (David, 2013). This creates a balanced environment where managers give the workers freedom but are also available for advice. Furthermore, Google has made sure that communication within the company is two way and workers are thus able to contribute their ideas to the management (David, 2013). This open dialogue policy creates a sense of belonging among the employees, which further leads to improved productivity.

In conclusion, managers adapt different leadership styles. The Classical Scientific theory gives workers limited decision-making powers in a business. This approach is limited in success because of low employee morale, so the behavioural theory emerged. The behavioural approach is employee focused with workers also being involved in decision-making. Despite this, these theories are successfully implemented in different companies. Ultimately, the management of a company should adopt a management theory based on what best works for it.