The document discusses the classical and human relations approaches to management. It provides background on management theories from the 19th and 20th centuries, including scientific management by Taylor, administrative theory by Fayol, and bureaucracy by Weber as classical approaches. These focused on efficiency and structure. The human relations approach emerged in response, exemplified by Mayo's Hawthorne Studies which found social and psychological factors influenced productivity. The document examines how these classical and human relations principles remain influential in modern management approaches and companies like McDonald's, Nestle, and others.

1. 1 | P a g e
UNICAF UNIVERSITY
UU-MBA712 THEORIES OF MANAGEMENT
STUDENT ID NO: R1705D2775422
ASSIGNMENT 1
TOPIC: The Influence of Classical and Human Relations Approaches in Management
today.
Introduction
Management is science that date back many years ago, from 2900 BC in Egypt when it
was used to allocate and organize resources to build the Pyramids. In English language
it means to act. In business management is defined as the organization and
coordination of resources in order to achieve the pre defined business objectives.
Management as a science cut across all organizations setting both private and public,
profit making and non-profit making.
Management refers to the planning, organizing, staffing, leading and controlling
available resources to achieve the strategic objectives of an organization. While
management today has many similarities with management in the pasts, the dynamic
environment today, that comes with globalization and constant changes in Technology
and customers preferences. This has forced organization to come up with more and
broad management approaches that will be in line with the current trends in order to
have a competitive advantage over its competitors.
The thorough and deeper understanding of the business and management theories will
help today professionals to have a strong management acumen, that will assist in
making decisions and strategies that are very sound and clear. An understanding of the
business and management theories will assist today professionals in doing business in
a defined and organized approach that will come up with strategies that are clear and
conceptually correct. (Dr Kitana, 2016, pp17).

2. 2 | P a g e
The classical theories of management major focus is the structure and the process of
the organization,(Cole and Kelly, 2005, pp16), meaning it primary concern is how
efficient is the organization in conducting it business activities. While on the other hand
the human relations theories major concern is the human aspect with respect to work.
They are basically concern about individual motivation and satisfaction in doing the
required job. However, it does also recognize the importance of efficient use of
resources in order to achieve effectiveness in the company operations.
This assignment seeks to evaluate the influence of classical and human relations
approaches in management today. This will be done by exploring management theories
from the 19
th
and 20
th
centuries.
THE CLASSICAL APPROACHES TO MANAGEMENT
The Classical theory was developed somewhere during the 19
th
and the 20
th
centuries to
address problems and challenges in manufacturing factory system. It was mainly used
to manage production, people and the process and assisted management in finding
efficient solutions in organizing raw materials, tools, manufacturing units, employee
selection and recruitment. It has also played a great deal in training scheduling and
handling the non-satisfied employees. (Dr Kitana, 2016, pp17). The main focus of the
classical approaches to management was on efficiency, productivity and outputs of
workers as well as their contribution to the bottom line. (Parker and Riston, 2005).
The Classical theory main or core founders were Hendry Fayol, Frederic Winslow Taylor
and Wax Weber. However Fayol and Taylor are considered as the fathers of the
classical approaches to management. The theory is divided into three management
approaches namely:
1. Taylor’s theory of scientific management
2. Fayol’s Administrative theory
3. Weber theory of Bureaucracy
The Scientific Management Theories

3. 3 | P a g e
Developed during 1900-1920 by Frederic W Taylor with it main focus being the methods
that can be used to improve the productivity, efficiency and effectiveness of workers to
improve performance. The theory focused much on the division of work, training of
workers and the specialization of labor. Taylor developed this theory directly on his own
work experience.
Taylor believed that the scientific management techniques would eliminate the
rule-of-thumb management practices that were the order of the day during his time. He
view the scientific management approaches as the tool in creating a better and more
harmonious working relationship between the workers and the employers. (Frank B,
Copley, 1993), ( Nhema, 2015,pp 168). To support the theory Taylor developed
principles for the scientific management that can be summarized as follows (Taylor,
1919, pp36-38):
1. Eliminate the ‘’rule of Thumb’’( which is a principle that uses experience and
common sense toward doing a certain task, basically it is try and error method of
executing a task) by creating laws and scientific principles for job tasks.
2. The use of scientifically methods in recruiting and training employees, teaching
and developing them in order to reach the highest level of efficiency and success
in their jobs, thus achieving efficiency in the organization.
3. Aligning skills relevant to each job.
4. The evenly distribution of work and responsibilities among the worker and
employee with the assistance of management in planning and controlling the
task to be implemented.
The scientific management approach has it own success and critics. On the success
part it came up with a solution in addressing employee’s pay according to the output of
their work. Taylor introduced the peace work system, which supported the notion that
money motivated workers. The system paid workers according to the standard of their
work. This means that the more the workers produced the more they were paid. The
focus was on the individual to improve performance.

4. 4 | P a g e
Despites its success, the scientific management approach has its fair share of critics.
The theory ignored human factors like workers feelings, attitudes and private goals and
other social and human factors that contribute in the performance of an individual.
However, research has proven that individual behavior in an organization is influenced
by a lot of factors like social and psychological. (A. G Nhema, 2015,pp 168).
The scientific management principles have contributed substantially to modern
management, instead of the rule-of-thumb method, today organization can now
determine how the work can be done better, by doing work design, division of labor and
performance analysis. Another principle that applies in today management is selection
of employees, using scientific methods, training and developing them.(Turan,2015,pp
1103).
Taylor principles of management are used by McDonalds in its standard of business
conduct, which act as guide to the ethical and legal responsibilities of the McDonalds
family. The standard act as guidance and direction in making the right decision, instead
of using the rule of thumb method. McDonald’s management is committed to
maintaining and living up to high standards to the point that it has established the
global compliance office that will monitor to ensure compliance with the company
standards and policies.(McDonald Standard of Business Conduct).
McDonald has evenly distributed the responsibilities to its supervisors and employees
under the standard of business conduct to sustain an ethical work environment and
requires supervisors to lead by example. Supervisors must make sure that their
subordinates understand and comply with the required standards. Taylor’s principles
are also seen in McDonald’s product and safety measures. They have clean restaurants,
great testing and safe food. This is achieved by placing responsibility to every
McDonald’s employee to follow all applicable safety and hygiene procedures.
(McDonald Standard of Business Conduct).
The Administrative Theories of Management
The administrative theories of management were founded by Henri Fayol, who is

5. 5 | P a g e
referred to as the founder and father of the classical management school. Fayol worked
for one company the whole of his career. The French mining and Metallurgical Combine
Comentry-Fourchamboult-Decazeville. He started as a mining engineer and in 1872 he
was promoted to be a Managing Director until his retirement in 1918. The financial
Health of the mining combine was in a poor state during the time Fayol began his
career. However, his massive success in developing and championing of the
organizational administrative principles, resulted to a great improvement to the financial
health of the mining combine by the time he retired.(Chartered management Institute).
He formally investigated the managerial behavior and believes in segmenting
management to small identifiable and manageable segments. Fayol believed in
management as a skill that can be taught by anyone to anyone on certain principles.
(Kitana,2016, pp 19).
Fayol was the first to differentiate between technical and managerial skills (Wren,
1994). He believed that employees are required to be good in both the skills at all levels,
however he highlighted that technical skills are very important both at lower level and
management level. While managerial skills are more essential as employees move to
higher levels of management and responsibility within the organization.
Henri Fayol work resulted to the combination of management theory that formed the
bases of formal management education and training. His first step was to divide all
organizational activities into six functions (Fayol 1949, p 3):
1. Technical: engineering, production, manufacturing, adaptation.
2. Commercial: Buying, selling, exchange.
3. Financial: the search of optimum use of capital.
4. Security: protection of assets and personnel.
5. Accounting: stocktaking, balance sheets, costs, statistics.
6. Managerial: planning, organizing, commanding, coordinating and controlling.

6. 6 | P a g e
This activities are well explained, however they didn’t involve drawing up a broad plan to
determine the direction of the organization and how it will operate. His second step was
to identify 5 key functions that comprise managerial activities. These activities are:
1. Planning
This involves action planning by focusing on the type, priorities and environment
of the business. The plan should be flexible, continuous, relevant and accurate.
2. Organizing
The sourcing and the use of resources, it involves responsibility and authority.
Fayol mentioned the following organizational duties for managers:
 Managers must ensure that the plan is well prepared and implemented
according to the organization objectives.
 Monitor and supervise both raw material and human resources.
3. Coordinate
Involves determining the timing and sequencing of activities so that they match
and the evenly distribution of resources across the organization.
4. Command
Fayol mentioned that managers must have command by gaining extensive
information about their subordinates, in order to know their strength and
weakness. This will assist managers in assigning tasks according to the
employee’s skills and strength. Managers should bring unit, direction and focus
to the organization and also lead by example.
5. Controlling
This involves ensuring and checking that the plan is implemented and that
instructions are followed accordingly and monitoring any variance or deviation
from the plan, and periodically taking appropriate corrective action.

7. 7 | P a g e
Finally, Fayol advocated 14 principles as a guide to performing the managerial
functions. He cautioned that the principles are flexible and capable of adapting to every
requirement in the near future. (Fayol, 1949, p19):
1. Division of Labor
Work is divided into small segments and delegated to workers with specialized
skill; this enables people to more efficient in doing their job. (Rodigrues, 2001).
2. Authority
This is a requirement for managers In order to make decisions, it is the right to
give orders and the power to exact obedience and it goes hand in hand with
responsibility. (Fayol, 1949, pp21).
3. Discipline
This is the amount of respect and obedience agreed between the organization
and its employees. Fayol state that both managers and employees should honor
their agreement.
4. Unit of Command
Subordinate should receive orders from one superior only. This comes from the
one man one boss rule (Rodrigues, 2001, pp 882).
5. Unit of Direction
Employees doing the same activities should have the same objectives.
6. Subordination of individual interest to general interest
Fayol mentions that the interest of the organization should be surpass those of
employees. Just as the interest of any agreed team objectives should come over
individual’s interest.
7. Remuneration

8. 8 | P a g e
Employees should be paid fairly based on the amount of the work done by the
employee.
8. Centralization
This refers to the extent to which decisions are concentrated to one particular
level of the organization. Fayol mentioned that there is no one way of
centralization or decentralization it depends on the size of the organization.
9. Scalar Chain
This refers to the line of authority from top to bottom.
10.Order
All the activities should be structured to the point that everything and every
person should be at the right time and at the right place.
11.Equity
It is fairness and justice between the employer and the employee; it can also be
referred to as the combination of kindliness and justice in dealing with
employees.
12.Initiative
Employees should be encouraged to come up with new creative and innovative
ideas. This requires the power and the freedom to make and implement new
plans.
13.Espirit de Corps
It is based on the concept that unit is strength and encourages team work as a
tool to maintain high morals and unit among employees (Rodrigues, 2001. Pp
885)
Fayol administrative principles are used in modern management by several companies.

9. 9 | P a g e
One of the companies is Nestle; the company has implemented organizational
principles such as decentralization, whereby it decentralized its decisions to optimally
respond to the needs of consumers within their policies, strategic direction and
operational efficiencies. Nestle also uses the unit of command principle to manage
team work by making sure that a team always has a leader who assumes full
responsibility. (The Nestle management and Leadership principles, 2011)
Max Weber Bureaucratic Theory
Weber’s focus is on the administrative structure, unlike Taylor and Fayol who focused
on the process. Weber believed that there are three types of authority. There is
traditional authority where the leader gain authority based on custom and respect of the
way things are done in the society. The second type of authority is the charismatic
authority where the leader gains authority from personal qualities. (Weber, 1947). The
third type of authority is the legal authority where the leader derives authority based on
his/her knowledge about the rule of law. (Nhema, 2015, pp 170).
Max Weber theory of management believes in procedures, rules and hierarchy and
division of labor within the organization. The theory gained its strength on the policies
that are executable and rules and regulations. It has also clearly defined hierarchy of
authority. The theory brings about consistent employee behavior and no duplication of
roles and responsibilities. These advantages enhance productivity mainly because
employees are clear about their roles and responsibilities; they are bound to focus all
their energy and skills on their jobs instead of overlapping to other duties and
responsibilities.
The bureaucratic theory emphasizes in the position or structure instead of the individual
holding the position. (Kitana, 2016, pp 19). The organization is more important than the
person whether the individual stays or leave the organization, it will continue to grow.
The disadvantages of the bureaucratic theory are that it does not allow individual
creativity and growth; employees are reluctant to take risk, because they are treated

10. 10 | P a g e
based on rules and policies. The main focus of the theory is adherence to policies and
procedures rather than performance. The theory has a lot of red tapes and paper work
that delay decision making and results to a lot of ineffiencies. (Kitana, 2016, pp 19).
The Classical management approaches promotes efficiency and increased productivity
of workers and process. However, they didn’t take into account the well-being of
workers, non-financial reward and social interaction of the workers. These drawbacks
then led to the development of the human relations approach to management.
HUMAN RELATIONS APPROACHES IN MANAGEMENT
The Hawthorn Studies
Elton Mayo is considered as the father of the human relations approach to
management. He believed that the human view of business organization has been
hugely ignored, and believed that organizations should focus on satisfaction of human
psychological needs. (Sridhar, 2017, pp 8) Mayo conducted studies at the Hawthorne,
Illinois plant of Chicago Western Electric Company. The experiment became popular
later called the Hawthorn studies. Mayo and others tried several experiment to find out
the relationship between working conditions and productivity.
They set up test groups, whereby alterations were made in lighting and there were no
changes made on the other variables like frequency of the rest periods and working
hours and control groups (Sridhar, 2017, pp 9). The experiment came with the
conclusion that some factors other than light had an impact on productivity increment.
Elton Mayo concluded that employee’s behavior at work is affected by other factors
besides the economic factors. These factors include feelings, attitudes and emotions.
They discovered that individuals are motivated by social needs and they will be highly
motivated to work if management offers to address their social needs. The lessons of
the Hawthorn experiments were that psychological needs of individual play a very
important role in group performance. Mayo also concluded that when employees are
given special attention on their needs and desires by management productivity will
increase.

11. 11 | P a g e
The principle of human relations theory is used by Nestle, a people inspired company
that put people at the centre of everything they do, instead of process, structure and the
organization. Nestle management principles involves personal relations based on trust
and mutual respect. The company management listens to different opinions and
communicates openly and frankly. (The Nestle Management and Leadership Principles,
2011)
Maslow’s Theory of Human Needs.
This theory was proposed by Abraham Maslow, the hierarchy of needs is represented in
a form of a pyramid with the largest, most fundamental levels of needs at the bottom
and the need for self-actualization and self-transcendence at the top. (Wikipedia)The
needs are as follows starting from the bottom to the top:
Physiological Needs
The physical requirement for human survival, they are the most important and should be
the first one to be met. They include air, water, food, clothing and shelter.
Safety Needs.
The safety needs include personal security, financial security, health and well-being, and
safety against accidents and illness.
Love and belonging
The need for belonging is very strong at childhood. Maslow mentioned that human need
to feel the sense of belonging and acceptance in social groups, co-workers, sport team.
Also human need to love and be loved both sexually and non-sexually.
Esteem
People feel the need to be accepted and valued by others. People often engage in a
profession or hobby to gain recognition.
Self-Actualization

12. 12 | P a g e
This need can be describe as the desire to accomplish everything that an individual can,
to become the most that one can be.
CONCLUSION
The Classical theories from the 19
th
to the 20
th
century provided a solid foundation for
today management. They removed the rule of thumb where tasks were done based on
experience and common sense. They provided modern management with a strong
framework of management principles to build upon. Despites the fact that both the
classical and human-relations theories have been replaced by modern management,
there are still some organizations like McDonalds and Nestle that uses some of the
principles of this theories. The conclusion that can be drawn is that classical and
human relations theories form a greater part of modern management styles.
REFERENCES
Kitana, A, (2016). Overview of the managerial thoughts and theories from the history:
Classical management theory to modern management theory. Indian Journal of
Management Science, 4 (1), pp 16-21.
Koumparoulis D,N and Vlachopoulioti, A, (2012). The Evolution of Scientific
Management. Academic Research International, 3 (2) pp 420-426.
Nhema, A.G, (2015). Relevance of Classical Management Theories to Morden Public
Administration: A Review. Journal of Public Administration and Governance, 5 (3) pp

13. 13 | P a g e
165-177.
Rodrigues, C A (2001) Fayol’s 14 principles of management then and now: A framework
for managing today’s organizations effectively: Management Decision, 39 (10) pp 880-9.
Turan, H, (2015). Taylor’s Scientific Management Principles Contemporary issues in
Personal Selection Period. Journal of Economics, Business and Management, 3 (11) pp
1102-1105.
Wren, D, A, Bedian, A.G and Breeze, J.G, (2002). The Foundation of Henri Fayol’s
administrative Theory. Management Decision, 40 (9) pp 906-18.