The purpose of this essay is to explore the benefits of two management theories in today’s management of organisations, and to aim to evaluate which of these two theories are most beneficial in the improvement of productivity and motivation within the workplace. The first management theory is the Scientific Management Theory, also known as Taylorism, created by Fredrick Winslow Taylor (1911). Taylor’s Theory was based on increasing efficiency in the workplace through assigning workers tasks that they were directly suited to. The theory eliminated unnecessary physical movement of workers therefore reducing the time taken to complete tasks, thus improving productivity in the workplace (Cole and Kelly, 2015). The second theory is the Human Relations Theory, which resulted from Professor Elton Mayo’s Hawthorne studies which commenced in 1924 (Carey, 1967). Mayo argued that the best way to increase productivity in the work place was to improve the relationship between employees and managers. From his research, he found employees want to feel of greater importance to the business. Thus, by greater delegation employees feel enhanced responsibility and of more value to the business, therefore increasing employee motivation leading to greater productivity (Carey, 1967). Thus in this essay, I will the advantages and disadvantages of these two theories to the management of 21st century organisations will be explored whilst drawing upon examples from both private and public-sector business. For the purposes of this essay the following definitions are accepted “The private sector encompasses all for-profit businesses that are not owned or operated by the government. Companies and corporations that are government run are part of what is known as the public sector.” (Investopedia, 2017).
To set the historical context, The Scientific Management theory of Taylor was incorporated by Henry Ford in 1908 in the production process of the model T car (The Saylor Foundation, 2010). Taylor’s theory led to a more efficient production process, whereby the larger parts of the Model T remained stationary, whilst smaller parts were attached by workers. This meant unnecessary physical movement of workers was eliminated, meaning the time taken to produce the Model T decreased significantly. This meant Ford were able to produce more cars in a given period of time, enabling a decrease in price of the car. This was of benefit to Ford as the Model T was now affordable on a mass market scale, meaning sales revenue increased through the increase in sales of cars. This led to the development of the Ford assembly line which, in turn, led to a further increase in production (The Saylor Foundation 2010). This theory and its application in terms of a production line has been adopted by McDonalds, a modern company in the private sector. Each worker in McDonalds is trained to do a particular suited task and thus the worker becomes specialised at their job. Thus in the production of burgers workers know exactly what ingredients to put in the burger in a particular order, thus decreasing the time taken to produce the food leading to a more productive business (Nawaz, 2011). Taylors Scientific Management theory can also be seen in public sector business such as libraries in Nigeria. Every employee is taught exactly what is required of them and exactly what time this task should be completed. This therefore means work can be completed at a faster rate leading to a more productive library (Ibrahim, 2007). However, Taylor’s Theory can be criticized as the tasks given to the employees are of a very repetitive nature. This can be seen by McDonalds employee turnover rate of 44% in 2016 and the fact that employees have been reported to have very low motivation (Nawaz, 2011).This means employees become dissatisfied by the repetitive task which leads to a decrease in employee motivation. Employees will therefore not be motivated to work leading to a decrease in productivity which is likely to lead to lower sales and a less profitable business (Heijden et al., 2012). A further criticism of Taylorism is that it may stifle creativity so that companies like Ford have been overtaken by the modern day BMW in terms of a USP of quality and style.
In contrast to Taylor’s theory, the Human Relations theory purports that productivity can be increased by enhancing the importance of the employees within the workplace. The Human Relations Theory was developed in 1920s through Professor Elton Mayo’s experiments – the Hawthorne studies (Carey, 1967). The Hawthorne studies took place at Western Electrics Factory in Hawthorne, USA. The experiment consisted of two groups of workers who worked under different conditions. One group had poorer level of lighting whilst the other group had improved lighting. Mayo found out that the group of workers with more favourable working conditions worked better thus increasing productivity within the factory. He also altered other variables such as working hours and rest breaks. From his studies, he found the changes in working conditions were not the source of the increase in productivity, however the realisation from the workers that someone was concerned about their working conditions increased employee satisfaction, thus increasing motivation leading to a more productive workforce. Mayo wrote:
“The desire to stand well with one's fellows, the so-called human instinct of association, easily outweighs the merely individual interest and the logic of reasoning upon which so many spurious principles of management are based.” (Mayo, 1933)
From this quote, we understand that Mayo wants to point out that the relationship between workers and managers within an organisation is the most important feature in order to increase productivity, rather than the individual interest of mangers. We can see Mayo’s Human Relations Theory in use in organisations today in the private sector such as Google. Google aims to promote a friendly and relaxed working environment where all employees are considered “equal” (Google, 2017). The freedom which employees have leads to greater innovation within the business meaning more ideas are brought forward. This leads to new innovative products being created and therefore customers are attracted to these products. This is likely to lead to greater sales revenue thus higher profits. The Human Relations Theory can also be seen in public sector business such as state schools. Through improved relationships between teachers and students, such as teachers holding student support lessons off-timetable, students are more motivated to work, learn and achieve higher grades. However, the negatives of the Human relations theory are, due to higher levels of delegation and greater freedom within the workplace, employees can become laid-back in their attitude towards work. This therefore means workers may start to miss deadlines leading to a less productive business which in turn leads to a less profitable business, but this can be manged through the appraisal process.
In conclusion, both Taylor’s Scientific Management Theory and Mayo’s Human Relations theory aim to increase productivity within the work place. However, the weight of available evidence would suggest that Taylor’s Scientific Management Theory is the weaker of the two theories, as workers are restricted to a certain repetitive task, thus tasks become more tedious. This therefore means workers are less incentivised to work hard and therefore are less motivated which leads to an unproductive business. Mayo’s Human Relations Theory is the stronger of the two theories for modern organisations as workers become more motivated through the positive nature of the relationships between employees and managers and are more creative. Although workers can become laid-back in their attitude towards work due to greater levels of freedom, this can be managed through the appraisal process.
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References
Carey, A. (1967). The Hawthorne Studies: A Radical Criticism. American Sociological Review. 32:403-416.
Cole, G.A. and Kelly, P. (2015). Management Theory and Practice. Cengage Learning.
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Economist (2008). The Hawthorne Effect. http://www.economist.com/node/12510632
Heijden, G.H.A., Schepers, J.J.L. and Nijssen, E.J. (2012 ). Understanding workplace boredom among white collar employees: Temporary reactions and individual differences, European Journal of Work and Organisational Psychology. 21 (3): 349–375.
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Nawaz, A.S.M. (2011). Employee motivation: A study on some selected McDonalds in the UK. African Journal of Business Management. 5(14): 5541-5550.
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Taylor, F.W. (1911). The Principles of Scientific Management. Cover copyright 2010, Cosimo, Inc.