Management theory

Gedu College of Business Studies

Gedu, Chhukha.

Individual Assignment Submitted by:

Ngawang Kinzang Chophel (03220024

Common Foundation, second semester, section A

06/3/2023
 DECLARATION

Module Code: MGT102 Type of Course Work: Individual Task

Module Title: Management Theory and Module Tutor: Mrs. Sonam Dema
Pratices.

Date of Submission: 06 March 2023

I hereby declare that this academic work is my own and those referred ideas from other sources
have been appropriately acknowledged. The material in this submission has not been previously
submitted for assessments. I understand that if found otherwise, my academic work will be
cancelled and no marks will be awarded besides legal consequences.
Ngawang Kinzang Chophel (03220024)

FOR MODULE TUTOR

Sl. Marking Criteria Marks Marks

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1 IntroductionClick or tap here to enter text. 2%
2 Content 4%
3 Conclusion 2%
4 Presentation 2%mark
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Total 10%

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 Introduction.
Management theories are set of general rules that guides the mangers to manage an organization.
These theories can help the managers to form the strategies to reach organisational goals
and methods of motivating employees implemented by managers. Even though these
theories can vary in how it can be applied, but in the modern world leaders apply different
theories simultaneously to motivate their employees and to fulfil the organisational goals.
The management theories that are often used in business: when employees are successful,
they are rewarded, when they fail, they are punished.
The classical theory is also known as the traditional theory. It considers the organization as a
machine and its employees as part of the machine. It divides employees according to their
specialty, resulting in a highly efficient system. And also focuses on a well-defined
hierarchical structure and chain of command.
The three types of classical theory are:
1. Scientific Management
2. Administrative Management
3. Bureaucratic Management

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1. Critically evaluate the management thoughts/theories:
a. Classical & bureaucratic theory
b. Scientific theory
c. Human relations approaches:
-Taylor and Fayol
- Elton and Max Weber

a. Classical & bureaucratic theory

Max Weber gave the theory of Bureaucratic management in 1915. According to Weber,”
bureaucracy is a highly structured, formalized, and impersonal organization. In other word, it
is a formal organization structure with the set of rules and regulation.” This theory is specific
form of organization based on complexity, division of labour, professional management and
the hierarchical management control. The theory has two important elements namely
organizational hierarchy and rule - based management. Many leaders of the world follow the
bureaucratic leadership style.
Features of Bureaucracy.
1.Task specialisation.
In a bureaucratic organisation the task is divided simple and routine categories on the basis of
functional specialisations. The jobs are broken into smaller units where each person
carries out a specialised task. Work is divided on the basis of individual specialisation.
Every employee has a specific place within the organisation and is expected to focus
only on their own area of expertise. 

2.Hierarchical layers of authority.

 In bureaucratic organizational structures, there are many hierarchical positions. The hierarchy of
authority is a system in which power is distributed according to position, with the highest
rank having the most power. In bureaucratic organizational structures, the top layers are
always in charge of monitoring and controlling the lower tiers. Hierarchy facilitates
communication, coordination and control within the organisation.
3.Formal selection.
In the bureaucratic theory formal selection is a key aspect, which emphasizes the importance
of hiring and promoting employees based on their qualifications and merits rather than
selecting based on personal connection and political consideration. Which in turn will
help the organization promote efficiency, effectiveness and fairness within the
organization.
4.Rules and requirements.
Formal rules and requirements are required to ensure uniformity, so that the employees know
exactly what is expected from them. The official regulations outline every administrative
procedure. Enforcing strict regulations will help the organization attain uniformity and

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 improve the coordination of all employee efforts. Senior management and directors are
responsible for framing new rules and requirement.
5. Career orientation
A bureaucratic organization chooses its employees based on their skills. This facilitates the
placement of the appropriate individuals in appropriate roles, maximizing the utilization
of human capital. The right division of labour within a organization allows the individual
to specialise themselves in their on field.

Advantages of bureaucracy by max weber.

1. Division of labor.
The division of labour in the organization makes work easier which leads to specialization. It
helps the organization to show and ensure the efficient flow of information in the organization
and also helps the employees to know to whom they should report. Division of labour helps to
improve work efficiency.

2. Decision making
Decision is generally handed over to the employees by their immediate managers, and to the
managers by the ones above them un the hierarchy.

3.running of administration duties

The main responsibility of bureaucracy is to run the day-to-day administration in accordance
with the policies, laws and rules and regulation of the government. Hence bureaucracy is very
important for controlling and supervising functions.

Criticism on bureaucracy.
1. Rigidity.
The rules and requirement in the bureaucracy are often rigid and inflexible. These rules and
requirement discourage initiative and creativity.
2.Goal displacement.
The rules that are framed to achieve the objective of the organization at each level becomes an
end to themselves. When the individual at lower pursue personal objective the overall objective
of the organization may be neglected.

2. Paperwork.
In bureaucracy excessive paperwork are involve as every decision must be put into writing. All
the document must be maintained in their draft and original forms. These lead to wastage of
time.

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b. Scientific theory
Scientific management is a theory of management that analyses and synthesizes workflows. The
major goal of this theory is to increase economic efficiency, particularly worker productivity. It was
one of the early attempts to use science to build management processes. Scientific management is
sometimes known as Taylorism after its pioneer, Frederick Winslow Taylor.

Features of scientific theory.

1 science, not the rule of thumb
This rule focuses on improving an organization's efficiency through scientific analysis of work
rather than using the "rule of thumb" approach. Taylor thought that any task, no matter how
minor, could be organized scientifically, such as the loading of paper sheets into boxcars. This
will reduce both human and time energy. Instead of using a "Rule of Thumb" where the
manager makes the decision based solely on their own judgment, this decision should be
based on scientific analysis and cause and effect relationships.

2.Harmony, not discord.

Taylor believed that the relationship between the workers and the management should be
pleasant and completely harmonious. There is no way that the two sides' differences between the
worker and the mangers could ever be advantageous. The importance of one another should be
recognized by both management and employees. For management and employees to work in
perfect harmony, Taylor also advocated for a mental revolution.
3.Mental revolution.
A change in management and employee attitudes toward one another is required for this
theory.  Both parties should recognize the importance of the other and cooperate fully. Both
should work toward enhancing and increasing the organization's profit. Both management and
employees must completely alter their perspectives in order to implement Mental Revolution;
they both need to have a sense of belonging.
4.cooperation, not individualism.
Mutual trust, confidence, and goodwill should exist between managers and employees. The
primary objective is to replace internal rivalry with cooperation.

Advantages of scientific method.

1. Enhanced production.
As the relationship between the management and workers are harmonious there will be
increased productivity.
2.Ability to control.
The employees perform repetitive tasks and they are easily controlled by the management.
3.Reduction in production time.

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 As all the instructions are followed in a systematic manner under scientific management,
therefore there is a reduction in production time.
4. Increase wages.
Higher production is the goal of scientific management, and workers receive raises in pay.
Taylor suggested a differential incentive providing higher pay for productive employees. The
greater salaries contribute to raising the workers' standard of living.

Criticism of scientific.
1.Exploitation of Workers
Taylor's Scientific Management placed unnecessary stress on the staff to do the work more
quickly. Productivity and profitability were prioritized. As a result, the workers were exploited.
As a result, lots of workers formed unions. Mistrust between management and staff is  another
effect of this.

2. Individual approach.
Taylor's scientific management overvalues individual achievement over the group achievement.
However, a company's success is influenced by both the collective and individual performance
of its employees.

c. Human relations approaches:

Taylor and Fayol
Both individuals have made advances in management science. The work of Taylor &
Fayol was, of course, particularly complimentary, according to a study of their
contributions to the field of management science. They both came to the conclusion that
the solution to the personnel issue and its management at all levels lies in each
person's achievement. Taylor worked primarily at the operational level, moving up from
the bottom, while Fayol focused on managing director and worked down, which was
simply a reflection of their very different careers, was an issue that both used scientific
approach to solve.
Taylor gave the name "Scientific Management" to his concept. According to this his
concept, productivity would rise as tasks were simplified and optimized. Taylor
published the concept of "fair payment with a fair work" because he believed that all
workers were motivated by money. In other words, a worker didn't deserve to be paid as
much as a person who was very productive if they didn't do their duty. Taylor, a
mechanical engineer, worked to increase business productivity. Taylor, who was the
first well-known management consultant and corporate director, is regarded as the
father of scientific management. This theory only gets so far because it only to factories.
This idea focuses mostly on the interaction between humans and machines.

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b. How can knowledge of the management theories and thoughts benefit today’s
(modern) managers in their daily works in the organizations?
Creativity
Good management gives creativity to the business and brings fresh imagination,
thoughts, ideas and knowledge to it every day to make it dynamic and lead to the
success and survival of the business.
Driving Force of Motivation:
Management acts as a motivating force, creating a favourable work environment,
coordinating parts of distributed production and directing them to achieve the desired
goals of the organization. Management as a driving force inspires people, unites them
as a whole and creates conditions for optimal use of resources
Key to Productivity
The success and progress of a company depends a lot on its productivity, which in turn
depends on the efficiency of management. In other words, management the key to
improving productivity. Urwick Breach has rightly observed: “no ideology, no political
theory can win a greater output with less effort from a given complex of human and
material resources except sound management.”
Aids decision-making
Modern management theories often provide managers with an understanding of the
factors they must examine and use to evaluate their organization or department.
Knowing what to look for can help managers identify problems and find potential
solutions. Using mathematical techniques also allows them to use data to support their
solutions and final decisions.
Enables adaptability
management theory recognizes that today’s organizations often exist in a rapidly
changing environment. This theory emphasizes the importance of recognizing the
impact of internal and external factors on business operations and encourages
managers to use a number of techniques and approaches to work with them.