Business in today's world has become an extremely competitive pressure changing consistently at an instant rate. Working in the 21th hundred years requires working with a strong environment with people that have diverse needs. Every business company must be managed, and hence there is a need for professionals. Even years back there is a diverse need for management of organisations. There have been people who have tried to study management to be able to maximize successful and effective use of their resources. There have been technological methods, and similarly there were methods based on people's behavior. Organisations nowadays use these methods in their business management.
Harold Koontz and Heinz Weihrich make reference to management as 'The process of designing and preserving an environment in which individuals, working mutually in groups, successfully accomplish selected aims. '(CBSE, 2007) Management has been referred to as an art and a technology, a lot of people even call it an occupation. With the different levels within the company, management becomes a difficult process. Top management, middle management and functional management have to work together in order for the company to be efficient and effective. Hence co-ordination can be viewed as as the fact of management. Planning, organising, staffing, directing and managing are the key functions of management that work together to fulfil the organisational, social and personal objectives. (CBSE, 2007)
Management has been split into two universities, Scientific College of Management and Behaviourist Institution of Management. The primary aim of Scientific Management is to increase the economical efficiency. The central of Scientific Management originated by Frederick Winslow Taylor. Once the base was set, other research workers like Henry Gantt and Max Weber along with Henri Fayol arrived and built together with it. Scientific methods were presented into management to obtain a general framework to be able to make it simpler to analyse the problems. Behaviourist Management on the other palm, studies the behavior of the individuals in the organisation and sees different way to improve the behavior of the employees and professionals towards one another to be useful and effective. Elton Mayo is the founder of Human Relations Management (Behaviourist Management) and is also recognized by Abraham Maslow and Douglas McGregor along with Mary Parker Follett, all of whom contributed towards Human Relations Management.
Frederick Winslow Taylor (1856-1915) is undoubtedly the father of Scientific Management and was one of the first management specialists. Scientific Management may also be referred to as Taylorism. Taylor presumed that there is always 'One Best Way' of getting the work done. Frederick Winslow Taylor, also known as F. W. Taylor, developed different studies particularly - Time Research, Motion Study, Exhaustion Study, and Method Analysis. By vocation an American Mechanical Engineer, F. W. Taylor launched Scientific Management towards The Rule of Thumb. He's also known for the benefits of the Differential Piece Wage System. (CBSE, 2007)
Max Weber (1864-1920), a German pupil and sociologist, developed another method of the methodical management. Although he wasn't the first someone to use the word bureaucracy, he discussed lots of the features that people use in the present world. The term bureaucracy, previously known as rational-legal power, identifies six characteristics laid forward by Weber. He assumed that rather than being devoted to a particular superior, an employee should be faithful to the organisation. His characteristics express out the fact that the management should have some rules organized and the ones should be followed consistently. A different one of the characteristics state governments out an employee should be selected based on the knowledge and skill present, alternatively than personal connections. According to Weber an specialist should not be based on someone's personality, rather the expert should be attached to the job as it might be passed on in one person to another over time. (Cutajar, 2010)
George Elton Mayo (1880-1949), created in Australia, is often regarded as the founder of the Human Relations Movements (Behaviourist Management) as well as of the industrial sociology. In 1926, 4 years after immigrating to USA, Mayo became the Director of the Department of Industrial Research at Harvard University or college. His notion was that the organisations mainly been around to serve and gratify the real human needs and that the organisations needed people approximately the people need the organisations. Elton Mayo is known for the Hawthorne Studies that were conducted between 1924 and 1932 at the European Electric Company's Hawthorne Plant that was situated near Chicago. First series of checks were conducted with lowered brightness level and supervision and it was pointed out that productivity increased in both cases. However the researchers couldn't clarify this increase which led to the Relay Assemblage Test Room experiments (RAT Room Assessments) where 6 female employees were decided on and were isolated from the rest of the employees and their daily job regimen. The work allocated didn't require machinery and around 10 changes altogether were made. All changes increased level of productivity. Later when original options were restored, result travelled up to highest level ever noted. The Hawthorne Studies confirmed that a social system had surfaced, esprit de corps. The informal organisation was uncovered as well along with the fact that workers did the trick better when in communication with the supervisors and when under guidance. (Donnelly, 2009)
Douglas McGregor (1906-1964) added another section in the Behaviourist Institution of Management. By job a famous North american psychologist, McGregor introduced Theory X and Theory Y as two models of assumptions about the human behaviour and character in connection with management. Theory X represented a poor view of the individuals characteristics with the assumptions that folks, generally, are normally irresponsible for his or her work and require frequent guidance in their jobs. On the other hand, Theory Y represented a good view of the real human mother nature with the assumptions that folks, in general, are creative, hard-working and dependable. Regarding to Theory X, people try to avoid responsibility whenever they can and therefore require heavy supervision. A Theory X director believes that the employees are least interested in working which large incentives are needed in order to get the work done. Theory X usually causes Diseconomies of Level in the organisations. Whereas relating to Theory Y, people savored their work and duties. These people are talented and creative and are always ready to get the work done. Theory Y managers create a friendly environment and earn the trust of the employees. Employees even have a say in couple of the decisions of the organisation. A Theory Y director is under a lot less pressure than a Theory X supervisor. (Wikipedia, 2010)
One of the main downsides that both, The Scientific Management and Behaviourist Management, had was that they both centered on the lower degrees of the organisations and didn't give much importance to the center level and the most notable degree of the organisation. In Scientific Management the individuals were cared for as machines and this usually created an even of dissatisfaction one of the employees, whereas in Behaviourist Management the entire importance was presented with to the Human being relations and all the other aspects were totally disregarded. Another aspect of the Behaviourist Management that was overlooked was an organisation includes diverse group of men and women that have diverse needs. It really is almost impossible to keep everyone in the organisation happy, Conflicts and arguments usually tend to rise among the employees. Similarly in the Scientific Management, the assumption of F. W. Taylor that there always is 'One Best Way' of getting the thing done is wrong since the ditto could be achieved different ways and the same level of output could be performed according to the time and motion of the employees. In Scientific Management, There is a loss of skill and reduction in creative imagination as employees would just do the same process over and over leading to specialisation. In Behaviourist Management, The employees were tricked into thinking that they were part of the decision making of the organisation.
On the lighter area, both Management Schools proved helpful towards efficient utilization of their resources. Scientific Management focused on getting the work done and the way the task has been carried out to be able to take the least amount of time possible. Behaviourist Management, on the other side, Relied on better communication between the superiors and the subordinates and focused on making better interactions on the list of employees since this might create an improved environment for the task to be completed which will increase development. Immediate rewards and incentives were provided in Scientific Management so as to increase the output produced. The Scientific Management is responsible for creating a formal string of demand whereas the casual chain of control immerged from within the Behaviourist Management. The Scientific Management as well as the Behaviourist Management had an important aim of expanding every branch of the business enterprise to its highest talk about of excellence. This way each one of the employees would be developed in ways to reach their highest probable.
The Scientific Management key points are being applied by McDonalds in business operations so as to achieve the organisational goals. McDonald's uses many effective ways to encourage employees including income and campaign programs, hard term, dedication, drive and results. A couple of recognized and rewarded from time to time. From a simple encouragement for doing a small job to a diner-wide recognition through 'Worker of the Month' program. Other bonuses like gift idea certificates, goods, and free food are provided along with incentive pay system. Higher salary are paid in accordance with the performance of the employees. Long term incentives are also provided to people which have shown sustained performance. (The Scientific Management Theory)
From the above mentioned case study it could be seen that Scientific Management continues to be used in the 21st hundred years. The activity of the staff has been constrained to minimal steps to be able to permit maximum efficiency. The employees in McDonalds are inspired by using different incentives and their needs are satisfied as well. Higher pay paid corresponding to performance level is an exemplory case of the Differential Piece Wage System launched by Taylor. Also the company is fulfilling the staff needs by providing rewards and acceptance. This is a good example of Maslow's Theory of Human being Relations activity.
From the above mentioned discussions it can be seen that management is one of the key aspects of an organisation. It really is required for the reliable and effective move of procedures constantly. Scientific Management continues to be being using in today's world hand and hand with Behaviourist Management but both have their group of disadvantages that are hard to disregard. Taylorism unveiled many aspects that increased level of outcome but was ignorant of the individuals needs and that people weren't machine. In the same way for the Behaviourist Management, the individual nature was given complete important. In today's world neither of the Management may survive with no other coz of the powerful environment. If complete amount is directed at getting the task done than the Staff Turnover Ratio will rise and if amount is directed at human relations then that company will not be as successful. Hence an equilibrium is necessary between both in an organisation.