The four theoretical concepts

UNIVERSITY OF THE PEOPLE

BUS 5113 Organizational Theory and Behavior
Term 4, 2019-2020

Assignment 1

To review the four theoretical contributions which are central to the understanding of today's organizations and

offer a brief analysis of all four theoretical concepts and then pick the one that is the most influential from both a

historical and a managerial perspective. Finally, to consider how these concepts impacted the development of the

current organizational theories.

Introduction

For hundreds of years, people have been managing work and we can actually trace formal management ideas to

the 1700s. However, since the beginning of the 20th century, industry leaders have been working hard to figure

out the best managerial practices. We owe much of our understanding of managerial practices to the many

theorists of this period, who tried to understand how best to conduct business. However, most of the theories

developed since the 1900s have been narrowed down to four main theoretical contributions also known as

schools. These are:

 F.W. Tylor who was the pioneer and primary contributor to this topic with his theory “Scientific Management”

in 1909.

 H. Fayol who was involved with the development of the Administrative theory in 1916

 M. Weber who was instrumental in the Bureaucracy and organizational structure in 1922.

 H. Simon who played a major role in the development of Administrative behavior in 1976. (Lægaard,

Organizational theories, 2006, P. 13, P.14).

The four theoretical concepts

A brief analysis about each of the schools will help to determine which school has impacted the most on

organizations.

1. Tylor - Scientific Management:

In 1909, Taylor published "The Principles of Scientific Management." In this, he proposed that by optimizing

and simplifying jobs, productivity would increase. He also advanced the idea that workers and managers needed

to cooperate with one another. This was very different from the way work was typically done in businesses

beforehand. A factory manager at that time had very little contact with the workers, and he left them on their

own to produce the necessary product. There was no standardization, and a worker's main motivation was often

continued employment, so there was no incentive to work as quickly or as efficiently as possible.

Taylor believed that all workers were motivated by money, so he promoted the idea of "a fair day's pay for a fair

day's work." In other words, if a worker didn't achieve enough in a day, he didn't deserve to be paid as much as

another worker who was highly productive. (Eyre, 2010)

Taylorism is basically “idea of systematization where attempts were made to enhance efficiency of procedures to

best effect via scientific analysis and experiment” (Lægaard, Organizational theories, 2006, P.14)

Setbacks of Taylorism

Taylor's Scientific Management Theory promotes the idea that there is "one right way" to do something. As

such, it is at odds with current approaches such as MBO (Management by Objectives), Continuous

Improvement initiatives, BPR (Business Process Reengineering), and other tools like them. These promote

individual responsibility, and seek to push decision making through all levels of the organization. (“Eyre

2010)
The four theoretical concepts

2. Fayol - Administrative theory:

In 1916, Fayol presented his "14 Principles of Management" in the book "Administration Industrielle et

Générale." Fayol also created a list of the six primary functions of management, which go hand in hand with the

have been a significant influence on modern management theory. His practical list of principles helped early 20th

century managers learn how to organize and interact with their employees in a productive way. From these

principles, Fayol concluded that management should interact with personnel in five basic ways in order to

control and plan production.

1. Planning: management must plan and schedule every part of industrial processes.

2. Organizing: In addition to planning a manufacturing process, management must also make certain all of

the necessary resources (raw materials, personnel, etc.) came together at the appropriate time of

production.

3. Commanding: This states that management must encourage and direct personnel activity.

4. Coordinating: Management must make certain that personnel works together in a cooperative fashion.

5. Controlling. The final management activity is for the manager to evaluate and ensure that personnel

follow management's commands

Although the 14 Principles aren't widely used today, they can still offer guidance for today's managers. Many of

the principles are now considered to be common sense, but at the time they were revolutionary concepts for

organizational management.

3. Weber-Bureaucracy and Organizational Structure:

Max Weber was unlike most workplace leaders today. His theory of management, also called the bureaucratic

theory, stressed strict rules and a firm distribution of power. He would've scolded today's managers, most of

whom are open to new ideas and flexible work arrangements, for their leadership style.
The four theoretical concepts

"Precision, speed, unambiguity, knowledge of files, continuity, discretion, unity, strict subordination, reduction

of friction and of material, and personal costs – these are raised to the optimum point in the strictly bureaucratic

administration," said Weber.

While his theory prioritizes efficiency, it isn't necessarily the best practice for leaders to implement. Many of

Weber's beliefs discourage creativity and collaboration in the workplace, and oppose flexibility and risk.

(Carmela, 2018)

4. Simon - Administrative behavior:

Herbert Simon has attempted to clarify the above-mentioned characteristics of the rational perspective that is

goal specificity and formalization. He also explained their connection to rational behavior. This is the most

recent contribution and Simon behavioral model which he designs and terms “The administrative man” in

contrast with “The economic man” (Lægaard, 2006, P. 31).

Conclusion:

It can be concluded that these theories were and are perhaps still applicable for management purposes specific to

the nature of the industry. However, in this 21st century in the growing ICT age especially where we are today

moving towards Artificial Intelligence, the implementation of any management theory today would have to be

modern in nature. Hence, it should be noted that the Administrative behavior is the best contributor showing

connection between departments and connected to each part of organization working collectively to achieved the

organizational goals and objectives through rational behaviors .

The four theoretical concepts

Reference:

1. Eyre Elizabeth; March, 2010; Frederick Taylor and Scientific Management; Mind Tools Team; Retrieved

from https://www.mindtools.com/pages/article/newTMM_Taylor.htm

2. Mulder, P.;(2017). Bureaucratic Theory by Max Weber. Retrieved from ToolsHero:

https://www.toolshero.com/management/bureaucratic-theory-weber/

3. Lægaard Jørgen (2006). Organizational theories, 1st ed, Mille Bindslev & Ventus Publishing ApS &

bookboon.com.

4. Caramela Sammi-business.com writer; Feb 07, 2018The Management Theory of Max Weber; Retrieved

from https://www.business.com/articles/management-theory-of-max-weber/

5. Retrieved from https://www.mindtools.com/pages/article/henri-fayol.htm