THE INFLUENCE OF CLASSICAL AND HUMAN RELATION THEORIES OF

MANAGEMENT TODAY
Written by: Madalitso Mbewe Jr

The Cambridge dictionary has defined Management theories as a set

of ideas and methods designed to help managers do their job well. (Cambridge) The history
of management theories goes all the way back to the industrial revolution in the late 1800’s.
During this time Factories began to grow and recruit thousands of people. Because of this
growth factories began to have problems managing the big work force to realise maximum
productivity. People then began to conduct studies in the factories to find ways on how they
maximise on productivity. Through their findings, they proposed ideas and principles which
if adopted and applied would lead to maximum productivity. These principles are what we
now call theories of management. Although there are many theories that have developed
throughout the years, this essay will look at only two theories namely the classical and human
relations theories of management. The essay will look at the principles underlying the
Classical and Human Relation Theories and how these principles continue to influence
management of business organisations today.

Classical theories of Management can be said to be the origin of all management theories. It
comprises of the scientific Theory by Fredrick Taylor, the Bureaucratic theory by Max weber
and the administrative theory by Henri Fayol. During the late industrial revolution in the
1800 a lot of people were moving from small farms and shops to work in large factories. As
these factories began to grow, look for ways to manage the growth in order to maximise
productivity. The Classical theories of management focus on productivity.

Fredrick Taylor decided to conduct a study on the way workers performed tasks in the
factories. He applied scientific methods of time and motion study and came up with
principles that were called scientific theories of management. Taylor believed that if one
would study the time that a task takes to complete and the movements that are performed in
order to complete that task, managers would come up with the one best way of performing a
particular task thereby ensuring maximum efficiency and productivity. He broke down the
big task of producing one item into smaller tasks. In conducting the time and motion studies,
Taylor discovered a few problems in the way people worked, that if improved on would make
workers more productive and efficient in performing their work. First he noted that each one
of the workers was left to perform the work whichever way they found fit. Two people would
do one task differently, one doing it faster and efficiently than the other. Taylor then
proposed that there should be one best and most effective way of performing particular tasks.
Secondly, Taylor observed that any one of the workers could be assigned to do any kind of
task regardless of their Skills. He proposed that “rather than simply assigning workers to
perform just any job, managers should match workers to their jobs based on capability and
motivation, and train them to work at maximum efficiency”. (Mind tools). Workers should be
trained in one area of specialisation. Taylor saw another problem in the area of motivation.
He noted that workers were not motivated to perform because the pay was the same
regardless of how much work one had completed in a day. Taylor believed that people are
highly motivated by economic rewards. He suggested that managers introduce a differential
piece rate system, where each worker would receive pay in proportion to the tasks completed
in that day. This would motivate workers to complete more tasks in order to earn more
thereby increasing productivity.

Although Taylor’s scientific theories of management face a lot of criticism for not
considering the human factors in the work place, his scientific management principles are still
in use today especially in the manufacturing industry A very good example would be Ford
motors, a car manufacturing company in the United States of America. In 1913, Henry Ford,
owner of motors wanted to produce more cars faster and cheaper. He hired Fredrick Taylor to
help his company produce cars efficiently and faster. Mr. Ford applied the principles of
scientific management by introducing the Line assembly method of production. First, Instead
of looking at the task of building a motor vehicle as a whole, the one task of assembling a
motor vehicle at ford motors has been broken down and divided into small simple tasks. For
example mounting of the chassis, Installation of electronics and engines and painting is each
a task on its own. Secondly, as the motor vehicle goes through the assembly line, there is
clear division of labour as each one of the tasks is assigned to workers that are trained and
skilled that area. Ford motors have workers that are trained and specialised in the different
processes of building a motor vehicle. For example workers that just specialise installation of
car engines, some are specialists in mounting of the dashboard, and some install the
electronics on the vehicle and so on. In order to ensure quality control, Ford does not let
every worker decide on how to perform tasks but each task has clear steps and rules in
performing that task. For example the mixing of paint, has clear scientific calculations to
ensure that a standard painting is applied to all the vehicles produced. Another principle of
scientific management that is evident at ford motors is that each task on the assembly line is
given a time frame to complete before it moves on to next assembly point. The use of these
theories of management continues to enable ford motors to build motor vehicles faster,
cheaper and more efficiently. History.com writes that “His (Taylors) innovation reduced the
time it took to build a car from more than 12 hours to two hours and 30 minutes”.
(History.com). Many other manufacturing factories are using the differential piece rate
system to motivate and pay their workers.

Later Max Weber, a German socialist added on to the classical theories of management by
stating that for organisation to function properly there must be a rational and systematic way
to arrange. Weber shifted the focus from the work itself to the structure of organisation.
Wikipedia writes “Max Weber argued that bureaucracy constitutes the most efficient and
rational way in which human activity can be organized and that systematic processes and
organized hierarchies are necessary to maintain order, maximize efficiency, and eliminate
favouritism. (Wikipedia). This he called the bureaucratic theory of management which
“stressed the need for strictly defined hierarchy, governed by clearly defined regulations and
lines of authority” (Tesfaye).

Max Weber believed that for an organisation to be productive and efficient there must be
clear division of labour. Jobs must be well defined and workers must be trained in one
specialty and arranged into functions according to their area of specialty. Within these
functions, there must be a clear hierarchy of command and structure of authority from top to
bottom. Each position within the hierarchy must have well defined authority and
responsibility. The third principle of the bureaucratic theory of management is that there must
be a set of rules and regulations to govern the way people performed operations and
conducted themselves. Rules and regulations ensure that there is uniformity in the way work
is done and employees are aware of what is expected of them at all times. The rules and
regulations also ensure that quality standards are maintained in the organisation. Max weber
believed that if an organisation is to be productive, the selection of people into positions must
be based on technical competence alone. People must be recruited and promoted into position
based on their knowledge of the work. This is in contrast with the traditional way of
management where one can be promoted simply because they are known or they inherited the
position. This stops favouritism. Recruitment based on competence helps the organisation to
have only those people that are competent in positions and places of authority thereby making
quality decisions for the organisation.
The principles of bureaucratic management have received a lot of criticism over the past
years in that they contribute to slow decision making due to long hierarchy structures and low
morale of employees due to strict adherence to rules. People fail to be creative where there is
strict adherence to written rules and regulations. Nevertheless, the principles of bureaucratic
management continue to influence the way organisations are managed today. You will rarely
find an organisation today which is not organised into a hierarchical structure with a proper
chain of command, rules and regulations to be followed and where employees organised into
departments based on the work they do. Government and public institutions are the most
common organisations that follow the bureaucratic management principles to the latter. The
military is one such organisation. The Malawi defense Force thrives on bureaucracy. There is
a proper hierarchy and chain of command from top to bottom which must be respected at all
times. From the commander in chief who is the state president, you have three commanders
under him. One commander in charge of land forces another commander in charge of Air
Forces and another in charge of Sea forces. There is a chain of command. From the rank of
general, comes lieutenant general, then major general, brigadier general, colonel and going
down to petty officer which is the lowest level in the army. This chain of command must be
adhered to strictly at all times. There are clear rules and regulations that govern how soldiers
conduct themselves and perform their work. The arm is very strict to obeying orders and
these orders are used to control the soldiers and instill discipline. Looking at the ranks, you
will already see that they are divided and grouped into units of functions based on their area
of specialty. Those that are trained and skilled in air strikes work under the air forces, those
that are trained on the sea work under the navy. Recruitment and promotion is entirely based
on skills and competence of the employees. The public service is not the only place where the
principles of bureaucracy are evident, but even in the business sector today. An example
would be commercial banks. The first discount house (FDH) is one of the biggest banks in
the Malawi. Being a very big organisation, it has a hierarchy of authority and a clear chain of
command. From the Managing director, there are different heads of departments including
Head of marketing, head of treasury, Head of finance etc. and they follow formal ways of
communication within the organisation. Within this hierarchy there is clear division of
labour, employees are grouped into the finance, marketing and other departments based on
their area of competence. One will also note that the employees are recruited and promoted
into positions of authority based on their qualifications. Working with the bank, there are
clear set of rules and regulations on how employees should conduct themselves; this includes
dress code, procedures on handling of money, clearing of cheques and more. These rules are
to be followed strictly otherwise one can end up losing their job or end up in prison.

Figure .1 . FDH Organogram

Truly there is no organisation today which in one way or another has not adopted the
principles of Max Weber’s bureaucratic theory of management. The principles are what make
the organisation to run smoothly. As the Max Weber writes “Bureaucratic management, as
depicted by its name, focuses on a rigid system which has a set hierarchy, a clear division of
labour, and detailed rules and procedures. It provides a blueprint of how an organisation
should operate in the most efficient manner. (Weber & Waters).

The last to consider on classical theories of management is Henri Fayol. Henry Fayol (1841-
1925) also called the father of management, came up with 14 principles that make successful
management which were later called the administrative theory of management. Fayol
proposed that management is broken down into 5 functions namely planning, organising,
commanding, coordinating and controlling. Just like the scientific and the bureaucratic
theories of management, the administrative management theory emphasised the need for
Division of Labour. He states that employees need to be divided into units based on their area
of skill and competence. Henry Fayol states that grouping people according to areas of
specialty will promote efficiency and increase productivity of the employees and the
organisation as a whole. The second principle was that once employees have been grouped
into functions, they must be given authority and responsibility in order to perform their jobs
well. Those in management positions must have the authority to issue orders to subordinates
for the work to be done. He continues to say that the authority comes with responsibility. The
third principle is discipline. For an organisation to function properly, not only should
manager have the authority to issues orders, but Employees must be disciplined enough to
obey and follow the orders as given by management. For the orders to be followed without
problems there must be unity of command. Each employee should receive orders from only
one boss. This is the fourth principle. Receiving orders from more than one manager brings
confusion to the employees. It usually leads to conflict and when things go wrong it is
difficult to establish who is responsible. Another principle is the equity. Fayol states that in
order for an organisation to function well, employees must be treated with equality. There
must not be any Favouritism. Favouritism demotivates employees and brings down their
morale thereby affecting their productivity at work. The other principle is initiative.
Employees must be given room to express and bring new ideas to the organisation. When
managers create opportunities for new ideas, it creates interest and creativity in the
employees. Employees are motivated and their creative ideas add value to the organisation.

Today many business organisations and managers have adopted and are using Henry Fayol’s
administrative management principles. An example would be the internet company Google.
In order to encourage initiative and creativity from its employees, Google established what
they call 20 percent time. 20% time is an initiative by Google designed to give employees
one full day per week (20 percent of their time) to work on a Google-related passion project
of their own choosing or creation. Founder of Google Larry Page says “To spark more
creativity within my agency, I've decided to implement the 20 per cent rule as well. Every
Friday, our team has the chance (if they choose) to work on personal projects that align with
our higher level, aspirational thinking. So far, the results have been phenomenal”. (Google ).
You will see that Google has adopted Henry Fayol’s principle of initiative to give employees
the opportunity to be creative and come up with new ideas for the company. No wonder
Google continues to thrive in business amidst stiff competition in the industry. Equity is
another principle that has influenced the way organisations treat employees today. Many
organisations have adopted Henri Fayol’s equity principle by ensuring that their employees at
the same hierarchy level or doing the same job receive equal treatment and benefits
regardless of gender, race or age. One such company is Coca Cola. It says in its inclusion and
diversity policy. “ Inclusion and diversity for the purposes of this policy means the creation
of a respectful work environment in which people neither discriminate nor are discriminated
against in any context on the basis of age, disability, gender or gender reassignment, sex or
sexual orientation” ( Coca Cola) . Many organisations today are following suit.

Although the classical theories of management gained acceptance in their time they were
those that criticised the principles because they dehumanised the work place. It indeed
managed to increase the efficiency and productivity of the workers but by focusing on
production only, they neglected completely the human aspect of the organisation. “The main
weakness of the classical management theory arose from its tough, rigid structure. One of the
main principles of the classical management theory is to increase productivity and efficiency;
however, achieving these goals often came at the expense of creativity and human relations”.
(ukessays ).

Because of the weaknesses of the classical theories of management, productivity began to

decrease again. Elton Mayo, who is called the father of human relations movement decided to
conduct studies identify what motivates people to be productive and efficient in the work
place. This led to the Human relations theories of management. In simple terms the oxford
reference defines human relations theory as “an approach to management based on the idea
that employees are motivated not only by financial reward but also by a range of social
factors (e.g. praise, a sense of belonging, feelings of achievement and pride in one's work) “
(Oxford ). Elton mayo conducted studies at the hawthorn factories in the United States of
America and called the experiment Hawthorne studies. In his experiment, mayo tried
changing those physical conditions in the work environment such as lighting to see if it
affected performance. It was discovered that physical conditions did not motivate the workers
to perform more. But he noted that the workers’ productivity increased when they knew that
they were part on an experiment and were being given attention. Mayo then concluded that
workers can be motivated when given attention.

One other person that contributed to the human relation theory was Abraham Maslow.
Abraham Maslow proposed that people are motivated by 5 basic needs namely physiological
needs, safety needs, social, esteem, and self-actualization. He further stated that a human
being acts to fulfil these needs in a hierarchical order from bottom to top. Once the needs at
the bottom are met, what will motivate him to work is the desire to satisfy the next level of
needs. For example, a am will first be motivated to work to satisfy the psychological needs,
e.g. food, shelter. Only when these are met, will he work to fulfil the safety needs, then to
theory needs until he reaches the top of the pyramid.

Figure 2. Maslow’s Hierarchy of Needs

The human relations theories have helped managers today to understand what motivates
people to perform at work. For example Elton mayo’s studies revealed that people work well
when they are in a group and are able to form relationships and relate well with others. Most
companies today are structuring their organisations to be team based. Many organisation are
realising he importance of appraising their workers, with rewards. You can see Maslow’s
hierarchy of needs at work in many organisations. Today almost every organisation offers
company housing to provide for the psychological and safety needs of the employees.
Organisations like world vision Malawi offers study loans to its employees to assist them
progress in their education so they can achieve their full potential, the Reserve bank of
Malawi does offer health insurance and pays for Jim for their employees to be fit, loans for
employees to build houses. Commercial banks like National bank of Malawi do appraise their
staff every month and reward the best serving bank teller. All these examples show how
much the human relations theory of management continues to influence the way
organisations are managing people. The focus in organisations has moved from just
production and profits to human resource management.

In conclusion, although the classical theories of management were developed a long time
ago, they continue to influence the way organisations manage their workforce to ensure
maximum productivity. The scientific theory of Fredrick Taylor is still defined the way
production is done in factories. His scientific principles have brought about efficient
production in the factories though the use of assembly line production, quality management
through rules and regulations and many more. The bureaucratic and administrative principles
are what define how organisations are structured today, with hierarchies, division of labour
and specialisation, chains of command and the world today is focusing more on human
resources than production processes because of the human relations theories. The influence of
these theories in management today is very evident and undeniable.
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