Organisation and Management Theory

Classic approach to management

This type of management aims to find the single best way to manage and organise a business, this management approach aims to set clear rules and sticks to a simple, rational and logical approach. This type of management takes little account of how employees within the business and how happy they are with their work but rather getting the work done as effectively and efficiently as possible. Mullins suggests that “The organisation is thought of in terms of its purpose and formal structure ... emphasis is placed on the planning of work technical requirements of the organisation.” (Mullins 2007).

This type of management can be seen in Argos. This company aims to have high customer satisfaction. Clear rules are set out within the business which employees understand this can be seen as “Around 80% of Argos employees say they clearly understand the company's goals and objectives and 89% say they know what is expected of them in their job”. (The Times Newspaper Ltd, 2010). Employees are aware of what they need to do to keep customer satisfactions high and generally stick to their area of expertise to make sure the running of the business is smooth, for example employees who work in the stock room getting peoples orders ready will not work downstairs on the tills.

Contingency approach

This approach looks at “The nature of the tasks which are undertaken and the nature of environmental influences”. (Mullins 2007) This type of management looks at the face that there is not one best way to manage or structure businesses, the way the organisation must be managed depend on the work that needs to be done and what situations arise with it.

This type of approach can be seen in the building industry. Each job that they receive requires a different amount of man power, materials and capital. The job must be managed throughout to incorporate changed that may take place for example if refitting a house, a problem is found such as damp this has to be written into the work plan before other areas can be completed or started.
As both these organisations are different and have different needs they will not be compatible with the others management approach, both organisations have managed to find an approach that suits their organisation and allows them to run effectively and efficiently.

What is scientific management?

This type of management focuses on the fact that there will always be one best way of completing a job efficiently and effectively some advantages of scientific management are:

1. A clear division can be seen between workers and managers allowing work guidelines and rules to be set clearly

2. Roles within the organisation are split up and distributed to employees, as everyone is aware of what they should be doing the business can run more efficiently and with little disruption increasing output.

3. As each employees sticks to one area it is easy for the business to measure how well each section of the business is doing making it easy for them to improve underperforming areas

4. As the organisation will be performing more efficiently they will be bringing in more capital which could lead to increases in pay, benefits or company growth

5. The employees will feel like more of a team and more prone to work as they will feel needed by the business and a valued

Disadvantages

1. As each employee has their own specific job role and skills it is harder for the business to deal with groups of employees or teams

2. Employees may find it hard to learn new skills and grow as they have to stick to their set job.

3. The quality of products can be poor and shoddy as employees can easily lose interest in what they are doing due to performing the same job daily.

4. Skills and potential skills of employees can be lost due to the lack of training.

5. The business can run into conflict between managers and employees as employees are pushed to work harder but are de-motivated due to the monotony of their job

Conclusion

All in all it can be seen that management theory’s can make a business run effectively and efficiently but if the wrong type of management approach is used the business will find it hard to motivate staff and ultimately lose capital.

References

The Times Newspaper Ltd (2010) Case study summary. [online]. Available from: http://www.thetimes100.co.uk/case-study--re-focussing-companys-culture-marketing-mix--49-98-2.php [Accessed 30 April 2010]
Mullins, L. (2007) Management and Organisational Behaviour. 8th edition. Essex: Pearson Education Limited