UNIVERSITY OF SOUTH WALES

MANAGEMENT THEORIES
& PHILOSOPHIES
Assessment 1: Evaluating influence of historical
approaches in modern organizations

deplete
TABLE OF CONTENTS
______________________________________________________________________________

Contents
LIST OF FIGURES..........................................................................................................................i

LIST OF TABLES...........................................................................................................................ii

CHAPTER 1....................................................................................................................................3

INTRODUCTION...........................................................................................................................3

Chapter 1..........................................................................................................................................1

1.0 Introduction...............................................................................................................................1

CHAPTER 2....................................................................................................................................4

ANALYSIS OF THEORIES & CASES..........................................................................................4

Chapter 2..........................................................................................................................................5

2.0 Analysis of Theories & Cases....................................................................................................5

2.1 Review of Classical Approaches...........................................................................................6

2.1.1 General Administrative Approach..................................................................................7

2.1.2 Bureaucracy....................................................................................................................7

2.2 Review of Human Behavioral Approaches............................................................................8

2.2.1 Hawthorne Studies..........................................................................................................9

2.2.2 Maslows Hierarchy of Needs......................................................................................10

2.2.3 McGregors Theory......................................................................................................10

2.3 Review of Cases...................................................................................................................11

2.3.1 Kelloggs.......................................................................................................................11

2.3.1.1 Frederick Taylors Scientific Management............................................................12

2.3.1.2 Abraham Maslows Hierarchy of Needs................................................................12

2.3.1.3 Elton Mayos Hawthorne Studies..........................................................................13

2.3.1.4 Frederick Herzbergs Two Factor Theory..............................................................13

2.3.2 TESCO..........................................................................................................................13
TABLE OF CONTENTS
______________________________________________________________________________

2.3.2.1 Taylors Theory of Scientific Management...........................................................14

2.3.2.2 Mayo Effect...........................................................................................................14

2.3.2.3 Maslow and Herzbergs Theories..........................................................................14

2.3.3 Siemens.........................................................................................................................15

2.3.3.1 Scientific Management..........................................................................................16

2.3.3.2 Herzbergs Two factor theory................................................................................16

CHAPTER 3..................................................................................................................................17

CONCLUSION..............................................................................................................................17

Chapter 3........................................................................................................................................18

3.0 Conclusion...............................................................................................................................18

Bibliography..................................................................................................................................20

LIST OF FIGURES
Figure 1: Branches of classical management (Mullins, 2007, p. 25)..............................................2
Figure 2: Main approaches to organizations (Mullins, 2007, p. 43)................................................5
Figure 3: Weber's theory of bureaucracy (Sharma, 2013)...............................................................8
Figure 4: Maslow's Hierarchy of needs (Needs, 2013)..................................................................10
Figure 5: Management Theories in Kellogg's (Kellogg's, 2014, p. 1)...........................................12

LIST OF TABLES
Table 1: Implementation of Herzberg's Two Factor Theory (TESCO, 2014, p. 4)........................15
Table 2: Management strategies of Siemens..................................................................................16
 CHAPTER 1

INTRODUCTION
 CHAPTER 1 INTRODUCTION

14016710
______________________________________________________________________________

Chapter 1

1.0 Introduction
There were many attempts to define management; Parker Follett (1941) defined management as
getting thing done through people (Weihrich & Koontz, 1993). It is the process to optimize
human, material and financial resources to accomplish the organizational goals.
Organizations have realized with continuous exposures and experiments in different era that
practicing successful management strategies is the only way for continuous improvement to their
operations. Management theories and practices were adopted in organization to complete any
tasks efficiently and effectively (Grey, 2005).
The history of management spread to thousands of years old but it is considered as a formal
discipline from 19th century during the period of industrialization (Kloppenborg, et al., 2003).
Morgen Witzel (2009, p. 20) believes that though industrialization has modernized in the current
era but enormous economic crisis has demanded organizations to review the history of
management and business. However management theories were developed many years ago but
pace of the world changes very rapidly thus the theories needs to be re-invented in the light of
historical approaches to management. Historical approaches are the essence and core of the
management practices being implemented in the organizations today.
The study highlights few cases of organizations who implemented modern theories which
are re-invented and influenced from classical theories.
The idea to combine modern management theories with classical approach was to
increase production, efficiency thus profitability which is obligatory for any organization to
succeed. Bill Fruhan (1979, p. 1) discussed that profitability is the key to success, if its owned
by an organization they must flourish and display it, if the organizations doesnt possess it, they
must try to get it and if they cant get it, they must get out from the business. The study also
emphasizes on how historical approaches to management can increase the production and
profitability of industries and organizations by critically assessing the management policies and
strategies which industries have adopted to encourage and motivate their employees.
Different management approaches are based on different assumption, the study of the
management progressed through several stages where theorist, scholars and practitioners from
______________________________________________________________________________
1
 CHAPTER 1 INTRODUCTION

14016710
______________________________________________________________________________
different era contributed in inventing and implementing the management approaches in their own
style later they were proven with experiments. Historical management theories involved started
from industrialization where disagreement exists as to the exact number of management theories
and approach. According to Mullins (2007, p. 43) classical management approaches are divided
into two approaches namely scientific management and bureaucracy management. According to
Stephen, Mary and Neharika (2009, p. 25) classical approaches has three sub branches as shown
in figure 1.

Historical Management
Classical Management

Scientific General Bureaucracy

Management Administrative

Figure 1: Branches of classical management (Stephen P. Robbins, 2009, p. 25)

Management requires parallelism rather than sequential operations of theories and approaches.
These theories are integrated and implemented in the organization to increase the productivity
and efficiency of the employees. It is necessary to give rewards and incentives to the employers
which are counted in motivation and encouragement of the employees. According to Dr. Yasin
Olum (2004, p. 2) besides bonuses and rewards, management is also required to perform and
implement five processes namely planning, organizing, staffing, leading & controlling to
stimulate the work process on employees. Dr. Yasin Olum (2004, p. 3) has stated the most
important function of management is to develop organizational leadership along interaction with
people, teamwork, strength to handle critical situations, individual veracity, general management
skills and self-motivation skills to motivate himself as well as his sub-ordinates.

______________________________________________________________________________
2
 CHAPTER 1 INTRODUCTION

14016710
______________________________________________________________________________
This study will distinguish between the classical approach and human behavioral approach with
the contemporary approaches being practiced in the organizations today so that the key factors
and themes can be identified which modern approaches have adopted from the historical
approaches to management.

______________________________________________________________________________
3
 CHAPTER 2

ANALYSIS OF THEORIES & CASES

 CHAPTER 2 ANALYSIS OF THEORIES AND CASES

14016710
______________________________________________________________________________

Chapter 2

2.0 Analysis of Theories & Cases

The variety of management approaches with different views has created confusion about the
selection and practice of specific management approaches for the researchers and practitioners.
Due to this some of the scholars have called this situation as the management theory jungle
Koontz (1961, pp. 174 - 188). The changing pace of management theories and approaches
resulted forming new approaches, older approaches have taken some new meanings and with
different new words but these approaches have strong influence of classical management
approaches as well as of human behavioral approaches. Review of classical approaches will be
carried out in this section. Also this section will take into account some of the modern
management theories implemented in industries and organizations where modern management
theories influenced with classical management approaches. Furthermore, this section will also
demonstrate how organizations are using management approaches in parallelism where more
than one management approaches are being used in conjunctions with others.
Figure 2 shows a broader view of management theories and their methodologies towards
organizational structure and management.

Figure 2: Main approaches to organizations (Mullins, 2007, p. 43)

______________________________________________________________________________
5
 CHAPTER 2 ANALYSIS OF THEORIES AND CASES

14016710
______________________________________________________________________________
2.1 Review of Classical Approaches
Many of the classical writers were more apprehensive finding ways to improve management
functions in order to increase the productivity. At the time of industrialization which is assumed
to be the formal era of management where individual workers were focused and emphasized,
monetary incentives used as a motivation technique is implemented to get higher level of output
2.1.1 Scientific Management
F.W. Taylor (1856-1917) as the father of scientific management contributed the most listed in the
history of classical approach. F.W. Taylor laying the foundation of scientific management treated
the employee as machines and believed that employees could be more productive if they are
directed to carry out the task in one best way with provided sets of instructions (Mullins, 2007).
Taylor was a strong believer in the rational economic needs concept of motivation. Workers were
encouraged, trained, motivated and this could have been more satisfying and productive for the
organization and for the employees where motivation can be stimulated through high wages and
promotions. Numbers of principles were sets to guide management includes;
Development of science for each employees work
Selection through scientific approach
o Training and development
Division of work into chunks (Hartman, 2011)
Taylor carried out series of experiments to validate the proposed principles by directing the
employees with sets of instructions to carry out the job and observed noticeable increase in
output of the workers positively impacting the productivity of the organization. However
scientific approach and experiments of Taylor received strong criticism such as the
implementation of scientific approaches were directly affecting the skills of the workers and
almost turning them into machine. He also faced strong reaction from the labor unions. Scientific
management focused more on money, rewards, incentives, job satisfaction, employees and
organizational performance and productivity (Basharat & Bashir, 2013).
Scientific management and contribution of Taylor in it enabled modern management with a
foundation to promote and implement effective management practices and strategies, improvise
organization models and productivity.

______________________________________________________________________________
6
 CHAPTER 2 ANALYSIS OF THEORIES AND CASES

14016710
______________________________________________________________________________
2.1.2 General Administrative Approach
Sadrul Islam and Muhammad Rafiul (2013, p. 3) stated that scientific management was
associated with the productivity through incentives given to the employees, the second extent of
the classical approach i.e. General Administrative approach purely focused on improvising
managerial performance and extemporizing organization efficiency. This was named to be
General Administrative approach to management and was theorized by many practitioners and
researchers which are listed by (Heames, et al, 2010) namely Henry Fayol, Alvin Brown, Henry
Dennison, Chester I Barnard, Luther Gulick, Lyndall Urwick, J Mooney, A C Reily and Oliver
Sheldon as cited in Sadrul Islam and Muhammad Rafiul (2013, p. 3). Henri Fayol is hailed as the
father of general administrative approach not because he was first to identify the role of
managerial actions but he was the first to schematize it, stated by Dr. M. Thenmozhi (2010, pp.
9-10).
It is also discussed that Henri Fayol developed fourteen principles to improvise managerial
performance which are listed as follows:
Division of Labor Centralization
Authority Hierarchy
Disciplined members in an Order
Equity
organization
Unity of commands Stability of staff
Unity of direction Initiative
Subordination of individual interest Esprit DE Crops (Thenmozhi, 2010,

to general interests pp. 9-12)

Remuneration

2.1.3 Bureaucracy
According to Dr. Stephen (2011, p. 2) another viewpoint of classical approach to
management is bureaucracy which was hypothesized by Max Weber who was the son of
German politician and later became a sociologist. Weber viewed organizations as rational rather
than relying on owners and managers illogical notions. He also believed that hierarchy plays
important role in bureaucracy claiming that upper positions administrate lower controls which
provide mandate and jurisdiction all over the organization. Weber stated that organization with
bureaucratic management have certain characteristics as follows:

______________________________________________________________________________
7
 CHAPTER 2 ANALYSIS OF THEORIES AND CASES

14016710
______________________________________________________________________________
Well organized hierarchy
Division of Labor & Specialization
Rules and Regulations
Impersonal relationships between managers & employees
Competence
Records (Hartman, 2011, pp. 2-3)
Figure 3 shows how bureaucracy is involved in an organization.

Figure 3: Weber's theory of bureaucracy (Sharma, 2013)

2.2 Review of Human Behavioral Approaches

There is no qualm that the most important thing in any organization is appropriate
management stated by Ziarab and Zahid (2013, p. 1), as classical management confronted
many criticism there arises a need for the creation of some new theories which would
focus on human relations in parallel with classical approaches. These approaches were
named as Human Relations Approach to management and the main theme behind these
theories were to motivate the employees other than providing them only incentives and

______________________________________________________________________________
8
 CHAPTER 2 ANALYSIS OF THEORIES AND CASES

14016710
______________________________________________________________________________
rewards but also by mentoring them, providing them support and guidance in the work
environment. According to Mullins (2007, pp. 53-57) human behavioral approaches are
further partitioned into three categories as follows:
Hawthorne Studies
Maslows Hierarchy of Needs
McGregors Theory

2.2.1 Hawthorne Studies

Due to precincts and limitations of classical management many theorists started carrying
different experiments to investigate the aspects from which the employees would show
interest to their work along with increase in their wages. Among these theorists
Hawthorne carried out two different experiments in Hawthorne Western Electric
Company in Chicago (1924 1932) (2011, p. 8). In contradiction Sadrul Islam and
Muhammad Rafiul (2013, p. 4) stated that Hawthorne carried out four different
experiments among which two of them were the most influenced. One experiment was
the control of lighting and other one was in the bank wiring room with six women also
known as the Hawthorne Effect according to Mullins (2007).
According to Dr. Stephen (2011, p. 8) illumination control experiment was carried out in
the Hawthorne plant and it was concluded that productivity was increased when intensity
of light was decreased until the employees were impotent to see anything which naturally
decreases the performance. This experiment was carried out on two different groups and
when production increased from one side the other lateral automatically in competition
started working fast thus productivity increased on the other group without the control of
illumination.
In the second experiment motivation factor was introduced through supervisors and six
women were selected for the experiment, the women were given the control of breaks,
rest periods, free lunches and increases in wages according to work. In the experiment
supervisors motivated the women, listened to their hurdles and tried to solved them
within prescribed boundaries which provided confidence to the workers and motivated
them impacting positively on productivity. These experiments showed significant
increase in productivity and it was concluded that if scientific management is applied in

______________________________________________________________________________
9
 CHAPTER 2 ANALYSIS OF THEORIES AND CASES

14016710
______________________________________________________________________________
conjunction with human relations approaches, efficiency of workers will be increased
thus increasing the production.
2.2.2 Maslows Hierarchy of Needs
According to ancient literature Maslows hierarchy of needs consists of five elements but
with the passage of time the theory got improvised and the count of elements reached to
eight (Nemati, 2013, pp. 1-2). This theory mainly highlights the fact that any human
being has eight type of needs and as each type gets fulfilled the individual moves onto the
other level of hierarchy. To achieve maximum performance from an individual the basic
needs must be fulfilled so that the employee will deliver his supreme in the work
environment. After the basic needs comes the security needs which any individual wants
for his family and friends, after the fulfillment of safety needs an individual moves
towards relations, work groups to maximize his contacts in the surrounding, after that he
needs reputation and to be valued referred to as self-esteem, moving higher comes
intellectual needs which focuses on knowledge and self-awareness and the last three
levels emphasizes on aesthetic needs, self-actualization and transcendence.
According to Dr. Stephen (2011, p. 9) Maslow concluded that human needs are not
satisfied completely and secondly human behavior is important and gets motivated by the
fulfillment of needs. Figure 4 shows the pyramid of hierarchy of needs designed by
Maslow and improvised by Babak Nemati (Nemati, 2013).

______________________________________________________________________________
10
 CHAPTER 2 ANALYSIS OF THEORIES AND CASES

14016710
______________________________________________________________________________

Figure 4: Maslow's Hierarchy of needs (CAI, 2013)

2.2.3 McGregors Theory

According to Dr. Stephen (2011, p. 10) McGregor was another contributor to the Human
Behavioral school of management and he presented another theory which stated that
manager are of two categories, one that thought of their employees as negative ones
referred as Theory X and the other one thought of their employees as positive source also
referred to as Theory Y.
It is also discussed that the managers corresponding to Theory X may be harsh with their
employees and intends to pressurize their employees at work believing that the workers
are idle, lazy, and have no ambitions in life and needs direction to work. Whereas the
managers analogous to Theory Y should be sympathetic and supportive to their
employees believing that the employees want to work in a friendly atmosphere, have the

______________________________________________________________________________
11
 CHAPTER 2 ANALYSIS OF THEORIES AND CASES

14016710
______________________________________________________________________________
will to accomplish given tasks and are innovative in presenting and implementing new
ideas.
Modern era managers were attracted to theory X and theory Y as these theories
histrionically demonstrated the view of mangers towards their employees. These theories
also helped managers in promoting management understanding of administrative
elegances and employee motivational expectations.
2.3 Review of Cases
Considering the statement specified in section 1.0 that management requires parallelism
rather than sequential operations, proper management requires all theories to be operated
in parallel i.e. if a particular company is rewarding bonuses and incentives to its
employees the company on the same time also needs to motivate its employees through
satisfiers and valuing the workers along with their work. This creates a feeling of being
respected and appreciated for individual worker. This section takes into account cases of
some of the organizations namely Kelloggs, Siemens and TESCO to critically evaluate
how organizations have incorporated classical approaches and human behavioral
approaches in their current management systems.
2.3.1 Kelloggs
As stated in (Kellogg's, 2014) Kelloggs is the worlds ubiquitous merchant of breakfast
supplier and they have widen their services to 180 countries. Kelloggs have been a
spearhead of supplying health and nutrition products for more than 100 years. To achieve
this status Kelloggs have used a numerous number of management techniques to
maximize the efficiency of companys employees which resulted in high quality food
products. Traces of following management techniques were depicted in the companys
management system which are also illustrated in figure 5.
Frederick Taylors Scientific Management
Abraham Maslows Hierarchy of Needs
Elton Mayos Hawthorne Studies
Frederick Herzbergs Two Factor Theory

______________________________________________________________________________
12
 CHAPTER 2 ANALYSIS OF THEORIES AND CASES

14016710
______________________________________________________________________________

Figure 5: Management Theories in Kellogg's (Kellogg's, 2014, p. 1)

2.3.1.1 Frederick Taylors Scientific Management

Theoretically Taylors scientific management generally applies to large organizations
which are only limited to production lines therefore it is also applicable to Kelloggs, the
organization believes that if this theory alone is implemented within Kelloggs the
employees may rush for money only thus effecting the quality of products and services
where the organization believe for SMART and innovative works. They also compensate
the holidays for cash with the consent and will of employees to motivate the employees.
Scientific management is not fully applicable in Kelloggs because the employees are
determinant to work for producing high quality foods (Kellogg's, 2014, p. 2).
2.3.1.2 Abraham Maslows Hierarchy of Needs
Kelloggs takes care of all the prominent five elements of Maslows pyramid for its
employees and all needs are satisfied through following strategies:
Company fulfills basic needs of its employees by offering competitive salaries, childcare
vouchers, alternative of cash for cars and discounted insurance schemes.
Security needs of employees are fulfilled by providing safe work environment to prevent
accidents however employees are liable to take care of maintaining health and safety
procedures.
Social needs are directly related to the sense of happiness felt in a secure relationship and
Kelloggs operates weekly opinions from their employees on company business and
thus it creates a sense of value and belonging in the employees.
Each and every individual needs to be recognized for the contribution for any company
and Kelloggs satisfies the esteem needs of its employees by rewarding them for their
contribution.
______________________________________________________________________________
13
 CHAPTER 2 ANALYSIS OF THEORIES AND CASES

14016710
______________________________________________________________________________
Kelloggs allows its employees to be the owner of different projects to stimulate their
sense of responsibility thus the company is fulfilling self-actualization need of its
employees (Kellogg's, 2014, p. 3).
2.3.1.3 Elton Mayos Hawthorne Studies
Kelloggs have implemented employee-management communication programs which
empower the workforce in accordance with the studies of Elton Mayo. They have created
a lobby area for informal meetings and presentations of employees with the management.
They have also introduced a suggestion box systems in which employees inscribe their
ideas for improvement in the system, over the last one year hundreds of ideas were
recorded and recently one of the ideas saved around 250,000 for the company in 2013
(Kellogg's, 2014, p. 3).
2.3.1.4 Frederick Herzbergs Two Factor Theory
The management systems purely focuses on the Herzbergs two factor theory and have
created a management system which satisfies employees about hygiene at the workplace.
The company also uses variety of motivational techniques to encourage the employees.
They have introduced Fit-to-Life program which offers employees to approach to
fitness centers, free health checks and health examinations are also carried out by
specialists every spring. Apart from that company offers its employees to decide their job
timings from May to September. Other means of motivation are flexibility in job, parental
leaves, career breaks and within company premises gyms (Kellogg's, 2014, p. 4).
2.3.2 TESCO
TESCO as one of the leading stores in the UK, with around 2,200 hyper stores handling
468000 permanent employees around the globe. TESCO has built strong and effective
management policies to manage its employee providing flexible, mentoring and
motivated environment so that they understand customer needs. TESCO admits that
motivation of employees is a necessary factor to increase production and thus the
management system practicing number of theories in parallel with each other, listed as
follows (TESCO, 2014):
Taylors Theory of Scientific Management

______________________________________________________________________________
14
 CHAPTER 2 ANALYSIS OF THEORIES AND CASES

14016710
______________________________________________________________________________
Mayo effect
Maslow and Herzbergs theories

2.3.2.1 Taylors Theory of Scientific Management

As stated in TESCO (2014, p. 2) the companys Employee Reward Program is
considerably analogous with scientific management but TESCO motivates its employees
using variety of techniques listed below. The company has improvised the definition of
scientific management and has gone beyond the actual meaning of this theory. Following
motivation factor related to money are used by the company to motivate its employees:
Free shares in company after one Medical free for employees
Discount on holidays
year of service
Pensions schemes Free mobile phones
Discount cards for employees Membership to gyms and
Christmas vouchers swimming pools (TESCO, 2014)
2.3.2.2 Mayo Effect
Effect of Elton Mayo are observed in TESCO, the company believes in external motivations and
have strategically created its management program to maximize the efficiency of workers.
Following effect of Hawthorne studies can be seen in the management system of TESCO which
are also in conjunction with scientific management (TESCO, 2014, p. 4).
Formal and informal communications through internet and reviews.
Daily meeting to update and to give out Value Awards.
Training and development though experienced mentors.
360 - degree feedback system.

2.3.2.3 Maslow and Herzbergs Theories

TESCO offers its employees to fulfill all the needs mentioned in the Maslows Hierarchy of
needs pyramid and the services which company provides for the fulfillment for needs are listed
as follows (TESCO, 2014, p. 4):
Basic needs are fulfilled by monthly salaries and lockers for personal possessions.
Security needs are also taken into account by company through providing contacts on
jobs, sickness schemes and pensions.
Company online portal Steering Wheel examines the performance the individuals and
teams and empowers store staff to work in groups.

______________________________________________________________________________
15
 CHAPTER 2 ANALYSIS OF THEORIES AND CASES

14016710
______________________________________________________________________________
TESCOs 360 degree feedback system and judgment system helps individuals recognize
their performance which produces a sense of being valued and thus need of self-esteem is
fulfilled.
Many career development programs are initiated by TESCO to fulfill individuals self-
actualization needs, amongst many programs Options Fast Track Management System
program permits competent employees to reach higher administration levels.
In parallel with all of the above mentioned theories TESCO also operates Herzbergs Theory by
taking into consideration hygiene and motivation factor. Table 1 shows how hygiene and
motivation factors are taken into account by the company management system.
Motivators Hygiene Factors
(Satisfiers)
Accomplishment Bonuses & incentives
Gratitude Company supervision
Freedom of work Affiliation with co-workers
Accountability Regulation
Preferment Grades & ranks
Career progression Job assurance
Secure and safe working
conditions
Personal life

Table 1: Implementation of Herzberg's Two Factor Theory (TESCO, 2014, p. 4)

2.3.3 Siemens
Siemens, since 1843, is the largest engineering company deals in PLC components and controls
around 40% of the wind energy conversion in the UK. Reviewing the case study of Siemens
influence of following management theories were observed.
Scientific management
Herzbergs two factor theory (Siemens, 2014)

2.3.3.1 Scientific Management

Scientific management emphasizes on eliminating the control from employees on the other hands
design engineering organizations specifically require their employees to innovate new products
and processes thus Siemens has limited scientific management practices in their management

______________________________________________________________________________
16
 CHAPTER 2 ANALYSIS OF THEORIES AND CASES

14016710
______________________________________________________________________________
system. The company provides bonuses and rewards to employees and it also provide job
satisfaction and praise individuals work for excellent performance (Siemens, 2014).
2.3.3.2 Herzbergs Two factor theory
Siemens maintain a high quality hygienic environment for their employees thus providing
working environment cleanliness and comfort. Table 2 shows the motivation (satisfier) factors
used by the companys management system to motivate their employees.
Hygiene &Satisfiers
Personal development
Accomplishment
Appreciation
Preferment
Increase in responsibility levels

Table 2: Management strategies of Siemens (Siemens, 2014)

______________________________________________________________________________
17
CHAPTER 3

CONCLUSION
 CHAPTER 3 CONCLUSION
14016710
______________________________________________________________________________

Chapter 3

3.0 Conclusion
One of the keys to successful management of any organization is the ability to understand the
concept, classical approaches and modern requirements of management to apply it effectively. In
this journey from classical management approaches to development and implementation of
modern management approaches.
The classical management studied to have three fundamental thrusts; (i) Scientific management
(ii) Administrative management and (iii) Bureaucracy management. Scientific management
focuses to improve productivity mainly designing a complete system of work for employees to
practice. Administrative management considers organizations as total entities and centers on
ways to make them more effective and efficient. Bureaucracy management sees organizations as
rational which helps to eliminate the dependence on owners and provide rights to every
employee to take decisions for organizations advancement.
The fundamental contribution of the classical management movement was to lay a foundation for
later management developments where science is applied to the practice of the management.
The major limitations of the classical management where the assumption of every employee as a
machine and worth only as an economic man with no free will, they are considered to be only
looking to make more money ignoring the human behavior and job satisfaction. Most of the
classical approaches regard employees as to accomplish organizational goals which led the
classical theorists and practitioners to face criticism.
It is also noteworthy that scientific management is measured only to define the work system but
it is a whole combination of elements which also focuses on employee monetary problems and
its solution, incentives and different ways to motivate the employee to contribute efficiently in
organizations productivity. Prominence of Administrative management is still present in large
organizations but industries with Matrix Structure confines this theory to be implemented in their
management system because of Unity of Command & Unity of Direction principles. Whereas
many theorists contradicted bureaucracy management for not taking into account the importance
of managers and owners. Many negative implications have been associated with this theory
because this sort of management tends to develop unnecessary rules and regulations.

______________________________________________________________________________
19
 CHAPTER 3 CONCLUSION
14016710
______________________________________________________________________________
In modern management there is a paradigm shift of knowledge and thinking in finding and
implementing new ways to address the current requirements and implement a flexible system to
adapt modern management theories and strategies influenced with historical approaches.
This study highlighted the management cases of TESCO, Kelloggs and Siemens which are the
most alleged companies, reviewing the cases it was concluded that the organizations are
operating many of the management theories analogously to maximize the profitability. It is also
observed that significance of scientific management is not present in the management systems
because of its limitations and this theory tends to deflate the skills of employees. Intrinsic
motivational factors are employed by the management to motivate their employees such as
assessing their performances on regular performances and rewarding them awards to create a
feeling of being valued and respected in the employees and providing them bonuses and
incentives based on the individual performances.
It is studied that different organizations are working on different management principles; some of
them are using similar classical approaches with new names but with the same concept, they are
adapting more than one management theories and practices. Conclusively, modern management
theories still have classical management theories involvement in them and it is noteworthy to
mention that modern theories and practices are standing on concrete bases and principles of
classical approaches.

______________________________________________________________________________
20
BIBLIOGRAPHY
______________________________________________________________________________

Bibliography
Basharat, Z. M. a. M. & Bashir, Z., 2013. Abstract. Review of Classical Management Theories,
2(1), p. 1.
CAI, 2013. Maslow's Hierarchy of Needs. [Online]
Available at: http://www.consciousaging.com/Transpersonal%20Psychology/Conscious
%20Aging%20-%20Maslow's%20Hierarchy%20of%20Needs.aspx
[Accessed 3 11 2014].
Dasgupta, M. & Gupta, R. .., 2009. Abstract. Innovation in Organizations: A Review of the Role
of Organizational Learning and Knowledge Management, 10(2), p. 203.
Fruhan, W. E., 1979. Financial Strategy: Studies in the Creation, Transfer, and Destruction of
Shareholder Value. Newyork: Richard D. Irwin, Inc.
Grey, C., 2005. A Very Short, Fairly Interesting and Reasonably Cheap Book about Studying
Organizations. s.l.:SAGE Publication.
Hartman, D. S. W., 2011. Management Theory, Newyork: New York Institute of Technology.
Kellogg's (2014) The times 100 Business Cases.
Kloppenborg, T. J., Shriberg, A. & venkatraman, J., 2003. Project Leadership. In: Project
Leadership. vienna: Management concept.Inc, pp. 1-2.
Koontz, 1961. The Management theory jungle. Academy of Management, pp. 174-188.
Mullins, L. J., 2007. Scientific Management. In: Management and Organisational Behaviour.
s.l.:Harlow : Financial Times Prentice Hall , pp. 43-44.
Nemati, B., 2013. Introduction. Improving Maslows Hierarchy of Needs: New Approach to
needs hierarchy, 1(16), pp. 1-2.
Olum, D. Y., 2004. Definitation of Management, Kamapala, Uganda: Faculty of social sciences.
Sarker, 1. S. I. & Khan, 2. R. A., 2013. Administrative management. Classical and neoclassical
approaches of management: An Overview, 14(6), p. 3.
Sharma, A., 2013. 026 Amrita Sharma IM20 NITIE POM course. [Online]
Available at: http://026amritasharmaim20nitiepomcourse.blogspot.com/
[Accessed 03 11 2014].
Siemens (2014) The Times 100; Business Case.

______________________________________________________________________________
21
BIBLIOGRAPHY
______________________________________________________________________________

Stephen P. Robbins, M. C. &. N. V., 2009. Historical Background of Management. In:

Management. s.l.:s.n., p. 24.
TESCO (2014) The Times 100 Business Case.
Thenmozhi, D. M., 2010. Evaluation of Management Theory, Chennai: Indian Institute of
Technology Madras.
Weihrich & Koontz, H., 1993. In: Management: a global perspective. tenth ed. New Delhi: Tata
McGraw, p. 4.
Witzel, M., 2009. Why Management History Matters. Why Management History Matters, 3(3), p.
20.

______________________________________________________________________________
22