MANAGEMENT THEORIES

Management Theories and Philosophies



Introduction2

Classical Approach to Management Theory2

Principles of the Classical Management Theory3

Advantages and Drawbacks of the Classical Management Theory3

Human Relations Approach to Management Theory4

Principles of the Human Relations Management Theory5

Advantages and Drawbacks of the Human Relations Management Theory5

Difference between Classical and Human Relations Approach to Management6

The Volkswagen Group7

Company Overview7

Management in the Volkswagen Group8

Classical Approach of Management Theory in Volkswagen Group8

Human Relations Approach of Management Theory in Volkswagen Group10

Conclusion12

References14

Management Theories and Philosophies

Introduction

Effective management, within a structured organization, helps in the achievement of objectives and aims. Each prescribed role of an employee has influence over the other prescribed roles. Hence, employee satisfaction and employee handling determine the success of the goals of the organization (www.healthknowledge.org.uk). Over the years, many writers worked together to contribute differing approaches to manage an organization successfully. The diverse theories of management may differ in principles but all state the importance of a management structure in the operation of a company. Moreover, administrators of the company who have knowledge of management theories can perform better than those who do not. Hence, using the principles devised by one or more of the management theories is not only beneficial but also essential for an organization.

Classical Approach to Management Theory

Introduced in the late 19th Century, the classical management theory developed during the era of the Industrial Revolution to find the best solution for increased training and labour management problems. This comprehensive theory has two branches (classical scientific and classical administrative) and is an effort of many classical writers such as Frederick Taylor, Mooney, Urwick, Brech and Reiley. However, Henri Fayol is the popular founder of the theory since he was the first one to systemize it (Mullins 2007, p. 43). Today, formal organizations mostly adopt this theory.

The classical management theory focuses on understanding the purpose of an organization and its formal structure. Emphasis is on the technical requirements, specialization, planning of work and management principles while there is an expectation of logical and rational behaviour from employees. Employees are commodities rather than assets. The theory points out that after understanding the purpose of an organization, the working methods can be improved, and the realization of overall objectives will lead to successful management. A well established hierarchy, defined responsibilities and formal relationships are also essential points of this theory.

Principles of the Classical Management Theory

The writers of the classical management theory believed that the efficiency of an organization could be increased by improving the organizational structure. They developed a set of rules, providing general solutions to normally occurring problems. There is also the importance of written responsibilities and job description in this theory. Although, all the writers devised their own set of principles, below is a list of some common ones (Mullins 2007, p. 44):

Co-ordination - people need to unite in terms of actions, authority and discipline

Scalar - there should be hierarchy, grading of duties and delegation in an organization

Functional - there should be a distinction in duties in terms of specialisation

Advantages and Drawbacks of the Classical Management Theory

The classical theory ...