Principles of Management : Taylors scientific , fayols administrative and max webers bureaucracy theories and principles

Concept of Scientific Management

In the present world of economy, management is a very difficult job as it has to deal with lots of human manpower with a different background, perspective, attitude, and behavior. A manager has not only to incorporate human efforts but also has to make decisions on how to allocate the limited resources to the human resources to generate the output. Many problems can come up each moment and spontaneous decisions might be essential at times.

Management is as old as human civilization. People have worked together to do any action for greater results. The highest level of management skills can be seen with great results such as The Taj Mahal of India, The Great Wall of China and the Pyramids of Egypt. This shows that people in the past have integrated human efforts with resources to build great monuments and run their daily lives.

So, over the last few centuries experts have found out various principles that have been proven effective with time. These principles are based on effect and cause system which means that an action has a reaction. These principles were derived from a lot of observation and analysis of the nature of human beings and organizational structure.

These scientific theories have helped managers to solve the daily problems in their organization and to manage their resources well. Some definition of famous writers are:

According to G. Hicks - “Principles of Management are guiding rules of laws for management action.”

According to Henry Fayol- “Principles of Management are flexible and not absolute, but mostly utilized in the light of changing and special condition.”

Management principles are both descriptive as well as prospective in nature. Perspective means what should be done in a certain situation and descriptively describes the relationship between any two variables. Hence over time many writers, authors, and management experts have contributed to formulating the principles of management for the future generation.

Features of Management Principles 

1. Universally applicable to various types of organizations all over the world.
2. Flexible in nature according to time and situation.
3. Cause and effect relationship of all the action and their results.
4. Focused on human behavior and nature.
5. The equal importance of all the principles.

Concept of Taylor’s Scientific Management

Fredrick Winslow Taylor (1856-1915) was a pioneer in the field of Scientific Management. He is regarded as the father of Scientific Management. Taylor published his work “Principles of Scientific Management” in the year 1911 A.D.

Taylor started as a worker in Midvale Steel Company and he was promoted to chief engineer. Later, he joined Bethlehem Steel Company. After his retirement, he worked as a consulting engineer.

His vast experience of managing people led him to experiment and understand how to manage a company in the most scientific manner. He experimented on how to increase the efficiency of manpower and get maximum profit.

According to F.W Taylor- “Scientific Management means knowing exactly what you want men to do and seeing that they do in the best and the cheapest way.”

So, we can understand that scientific management is the art of knowing what is to be done and how it is to be done.

During his time in the companies, he found out that there were no specific ideas guiding the action of management but managers used a rule of thumb. There was no proper division of responsibilities among the labor and managers. The resources were not fully utilized which led to less output.

So, Taylor saw the need to make management scientific with well-defined ideas and fixed principles rather than depending on hazy ideas.

Principles of Scientific Management by Taylor

1. Science, not a rule of thumb:
   The first principle of scientific management aims to replace the traditional rule of thumb approach in management. Rule of thumb means general assumptions or rules that are made on the basis of past experiences or practice. So this principle suggests there must be scientific analysis and study of any job and only after the investigation, an action should be conducted.
   
   
2. Harmony, not discord:
   In the process of management, there is a relationship between a manager and an employee. So there will be two different interests. There will be a personal interest of the employee and there will be organizational interest. So this principle states that both this interest should go side by side. There must be a harmony of interest and should be focused on attaining the organizational goals with the mutual benefit of both the employee and the organization.
   
   
3. Co-operation, not individualism:
   According to this principle, there should be a feeling of co-operation between the manager and the labor. If there will be a feeling of personal interest then the organizational goals cannot be obtained hence both the manager and the employee should focus on the organizational goals. So there needs to be a mental revolution in both the mind of the employee and the employer. The employer must provide a suitable environment for the employee to work and the employee must focus on the greater goal.
   
   
4. Maximum output:
   According to this principle, a business organization must always be focused on maximizing profit and productivity. There should be optimum utilization of resources and a maximum effort by the manpower to generate the maximum output for the organization.
   
   
5. Division of responsibility:
   This principle divides the role of planning and executing among the employer and the employee. The employer should be given the role of only planning and the employee should focus on only operating to execute the plans. By this, there will be no confusion regarding their roles and there will be a smooth operation of action.
   
   
6. Development of employees:
   According to Taylor, there must be a scientific selection of human resources and once they are selected they must be trained and developed in such a way that they can work to their maximum capacity for the organization. The success of the organization depends on the efforts of the most competent employees. So they must be trained and groomed providing essential facilities and growth.

Hence, these are the basic principles of Taylor’s scientific management which focus on maximum output by efficient use of the resources. The major contribution of Taylor’s Scientific Management is its focus on the scientific approach to management and a high increase in efficiency and productivity.

Limitations of Taylors' Scientific Management

There are many merits of Scientific Management such as improvement of efficiency for maximum output, development of skills of employees and improving productivity. But there are some criticisms by employers, workers, and experts which cannot be overlooked. Some of the limitations of Taylor’s Scientific Management are:

1. Focus only on Employees:
   Taylor’s scientific management gives too much emphasis to the workers. It does not address other problems that might come up in an organization. In a way, it is also criticized that it exploits the workers and there is no wage rise system along with a rise in productivity.
   
   
2. No best way:
   Taylor’s scientific management tries to find the best solution to run an organization but in practice, there is no best way to run an organization. There are many employees from different backgrounds and perspectives. So all cannot be treated in the same way. So there cannot be one best approach in management.
   
   
3. Separation of planning and doing:
   Planning and executing are separated from Taylor’s scientific management. According to F.W Taylor- “Planning should be a responsibility of employers and execution of plans should lie to the employees”. But in practice planning and executing are closely related and both cannot be separated.
   
   
4. Monotonous and Frustration:
   In Taylor’s scientific Management a worker has to do a certain job to the best capacity. So there is a specialization of the job. But there is monotonous and dullness which can cause mental fatigue. Due to a lack of creativity and originality, employees might face frustration.
   
   
5. Ignores Human Factor:
   Workers are just taken as economic tools by the scientific management of FW Taylor. This principle believes that employees are only motivated by money. But this is not true in all cases. Human beings are motivated by other factors as well such as human dignity, moral values, respect, and care, etc. So, the Scientific Management of Taylor neglects the human side of Labor.
   
   
6. Supply without considering Market Demand:
   According to Taylor, maximizing production helps in maximizing sales which eventually leads to high profit. But it is not true as the supply must be made with respect to the demand of the market. If supply is more than the demand then there will be overutilization of resources and inventory cost will increase. So, supply and production should not be maximum but should be optimum depending on market demand.

Hence even though Taylor’s scientific management was the base for the management principles in the early days of management principles, it has the above limitations. Some of such limitations are expensive and time-consuming for small firms, ignores the subjects such as delegation of authority, the flow of information, motivational aspect of management, etc.

Fayol’s Administrative Management Theory

Through his rich experience, Fayol provided 14 principles of general management to guide the managers who in his time didn’t use a scientific approach of management. His theory is based on how the management should interact with the employees. Fayol’s theory provided a broad and analytical framework of the process of administration which overcomes the drawback of Taylor’s management theory. Henry Fayol (1841-1925) was a French mining engineer, managing director and an industrialist who is known for his contribution towards management science in his work ”Administration Industrielle et Generale" in the year 1916 A.D. The book was later translated as “General and Industrial Management” in the year 1929 A.D.

Fayol’s theory which is still considered applicable and reliable is used in managing the personnel in any organization. Fayol’s Administrative management can be understood by the following four sections: (Mind tool editorial team)

Function/Elements Of Management

According to Administrative theory of Management, the five basic elements of management are:

1. Planning:
   Planning is forecasting the future and making a structural plan of action and determining the goals and objectives of the action. Fayol considers planning as the most essential function.
   
   
2. Organizing:
   Organizing is the creation of an organizational structure that brings human resources and non-human resources together to work together.
   
   
3. Commanding:
   The process of giving direction and orders by the superior to the subordinate is known as commanding.
   
   
4. Coordinating:
   There are various divisions in an organization. So, coordinating is the process of bringing the action of all the divisions and departments and integrating their efforts for the fulfillment of organizational goals.
   
   
5. Controlling:
   Controlling means comparing the actual performance of the organization with the desired performance level and checking if there is a need for improvement and when a deviation is found implementing the necessary changes to improve the performance.

Division of Industrial Activities

Henry Fayol observed the organization from a manager’s point of view. So, he identified six major activities in which industrial activities can be divided. They are:

1. Technical Activities:
   This activity is related to the production or manufacturing of goods and services.
   
   
2. Commercial Activities:
   This activity is concerned about dealing with sales, purchase, and distribution of goods and services.
   
   
3. Financial Activities:
   This activity is related to the creation of necessary capital and its optimum use for development and growth.
   
   
4. Accounting Activities:
   This activity is related to the recording of transactions and then preparing the financial statements.
   
   
5. Managerial Activities:
   This activity is considered with the elements of management which are planning, organizing, commanding, coordinating and controlling.
   
   
6. Security Activities:
   This activity is related to the protection of people and property in an organization by providing safe working conditions, insurance policies, etc.

Managerial Skills and Qualities

Fayol has focused on the role of a manager. He believes that anyone cannot be a manager. A manager needs some skills and qualities to manage people and resources in an organization. The six managerial skills are:

1. Physical Qualities:
   This quality is concerned with the good health, well-maintained dress and outlook and high energy level of the manager.
   
   
2. Mental Qualities:
   To become a good manager they must possess the quality to learn and understand, judge and adapt to the problems and should have the mental energy to focus.
   
   
3. Educational Qualities:
   To become a sound manager, one needs to have a general understanding of the subject matter of the basic functioning of the organization.
   
   
4. Moral Qualities:
   To become a good manager, one needs to have a high energy level, willingness to take responsibilities, loyal to action, tactful and feeling of dignity.
   
   
5. Technical Qualities:
   One needs to have technical knowledge regarding what are the procedures to carry out the action in an organization.
   
   
6. Experience:
   Experience comes with years of practice of action. So, a good manager needs years of experience to work smoothly and efficiently.

Principles of Administrative Management

The 14 principles of management given by H. Fayol are particularly focused on the five management functions of an organization. These are the basic guidelines for the management of the organization as a whole.

Even though the principles were not created on the basis of experiments, they were created by the experience of Henry Fayol. These principles are universal and can be applied to any organization in any part of the world.

Fayol suggests that these principles are not rigid but they are flexible and should be used according to the need. So it depends on the part of the manager on how they use the above to suit the organization and to manage effectively and efficiently. The 14 guiding principles by Henry Fayol are:

1. Initiative:
   An initiative is the level of freedom that an organization should provide to the employee to carry out the plans without forcing them or ordering them. This is related to the creation of interest and willingness in the employees by motivating and satisfying the employees.
   
   
2. Equity:
   This principle implies that all the members of the organization should be treated equally. There should be no biases and there should be an environment of kindness and justice.
   
   
3. Scalar Chain:
   There should be a chain of superiors ranging from the top level of management to the lower level management based on the hierarchy level. The head of an organization is at the top of the chain. The communication flows from the top to the bottom through this chain of authority of superiors. However, there is no hard and fast rule regarding the process of communication through the scalar chain.
   
   
4. Remuneration of Personnel:
   There must be monetary as well as non-monetary remuneration to the employees based on their performance level. Fayol focuses more on non-monetary remuneration in which he believes will create bonding between the employee and the organization. So the remuneration must be fair, reasonable and satisfactory.
   
   
5. Unity of Direction:
   According to this principle, there should be only one manager under the guidance and plan of which the groups having the same goals and objectives should move forward. This principle suggests that in one department or section, the division should only get instruction from one head. This helps in coordinating the group activity to attain a single goal.
   
   
6. Discipline:
   An employee should be obedient and respectful to the authority and the established rules and regulations of the organization. Clarity of rules, reward-punishment system, good supervision, etc. are some ways to maintain discipline. But it depends on the need and policies of the organization on how to maintain discipline.
   
   
7. Division of Work:
   This principle implies that the overall action of management should be divided into a compact job and employees should be allocated certain jobs viewing their interests and skills. This principle helps in specialization and helps to make the workers more effective and efficient. Division of work is important at technical level as well as managerial level in an organization for smooth operation.
   
   
8. Authority and Responsibility:
   Authority is the right to give the command and make decisions. Responsibility is the obligation of an employee to perform a certain designated task and be accountable to the supervisor. There should be a balance between authority and responsibility. An employee must be given the amount of authority required to perform the given responsibility. Authority without responsibility will lead to waste of position and lack of utilization of power and responsibility without power will lead to poor utilization of human and another resource.
   
   
9. Unity of Command:
   An employee must get orders from only one immediate supervisor. And the employee should be accountable to the immediate supervisor only. There should not be other supervisors to guide the employee. This will help to clear the confusion and will make the employee loyal to the activity.
   
   
10. Subordination of Individual Interest to General Interest:
    There are two types of interests. One is the interest of the individuals and the other is organizational interest. So this principle suggests that there must be harmony between these two interests. Organizational interest must be given more priority as doing good for the organization will bring rewards for the individuals.
    
    
11. Centralization:
    This principle implies that the topmost level of authority should be centralized to top-level management. There should be the delegation of power to the subordinate but the power to make the important decisions in the organization should remain with the top-level management.
    
    
12. Order:
    This principle states that every material and manpower should be given a proper place in the organization. The right man for the right job is essential in the smooth running of an organization. So, management must identify tasks and put them in proper order with the limited human and other resources.
    
    
13. Stability of Tenure:
    Any employee can work to the fullest if they have a secured job. So, an employee must be provided with job security which will help them to be efficient. This will also benefit the organization as it lowers the labor turnover and reduces the cost of recruiting and training new employees.
    
    
14. Esprit de Corps:
    This principle implies that “union is strength” and team spirit. So, the organization must integrate all its actions towards a single goal and objective. If the action is not unified then they cannot achieve their desired objectives. So there must be a unified team contribution in harmony and cooperation which is always greater than the aggregate of individual performances

Hence these are the 14 principles of Administrative management theory. These principles have helped in making the management more efficient and helped managers to develop necessary skills. But the principle has also been criticized as not being applicable in all situations.

Max Weber’s bureaucracy theory

Max Weber was a German sociologist, who was a pioneer in the field of Bureaucracy theory of management, which is the foundation of management in many of the government and military organizations in the world today. He was keen to understand the ways in which industrialization affected society. He was concerned about the importance of authority in any social structure.

Bureaucracy theory is based on strict rules and expert authority guidance which he believed would improve the efficiency of the organization’s performance. This system of management avoids biases and made the job description very clear to everyone in the organizational hierarchy.

Max Webber believed that the bureaucratic structure of management is the most rational and logical form of management which would make an organization highly efficient and successful.

According to Rick W. Griffin: “Bureaucracy is a model of organization design based on a legitimate and formal system of authority.”

(Neupane, Surendra; Parajuli, Ram Prasad; Jha, Deepak Kumar; Chettri, Tuk Bahadur; Dulal, Gopal Prasad: pg.46)

The leader would not inherit the position but rather the most competent and skillful person would be appointed as the leader. So there is merit-based selection rather than Nepotism.

Under the capable leadership, the organization would be more efficient. So, bureaucracy focuses on the skills and technical ability of the leader. So, Max Weber believed that bureaucratic management is an ideal way of organizing government agencies.

Some of the major characteristics of the bureaucracy model as stated by Max Weber are Technical expertise, the division of labor, rules policies and procedures, impersonal contribution, and strict chain of command.

Principles of Bureaucracy Theory

Bureaucracy theory is based on leadership expertise and is very useful in large organizations. There is no favoritism and strict rules and regulations are followed as per the organizational hierarchy level. The major seven principles of bureaucracy theory are:

1. An “up-focused” or “in-focused” mission:
   According to this principle, there are two types of missions. An “up-focused” mission is the mission in which the sole purpose is to serve the stockholders, the board running the organization and the agencies which support the organization. If the mission is “In-focused”, then the sole mission is to serve the goals and objectives of the organization itself and people inside the organization.
   
   
2. Equality:
   This principle focuses on the equality of all the employees who are judged by the rules, regulations, and rights of the employees set by the organization. So there are no unfair biases and favoritism in the organization. This will provide a sense of fair judgment and uniform treatment to all.
   
   
3. Formal Rules and Norms:
   This principle of bureaucracy management implies the need for strict rules and regulations to be followed by the various level of management in an organization. By this principle, the company can maintain a level of discipline to keep the laborers in check and to bring the best out of them. This helps in the execution of the decisions in the most suitable manner.
   
   
4. Formal Hierarchy Structure:
   The concept of this principle is that there should be a centralization of power in terms of planning and decision making in the organization. The rules and regulations must be strictly followed and the subordinate must be accountable to the immediate supervisor. There must be a well-defined hierarchy of authority with clear lines of authority and control concentrated at the top. Each level of management should be controlled by the level of management above it in the hierarchy and they should control the lower management below them. This will help the organization to proceed in a single direction.
   
   
5. Specialization:
   The organizations can be divided into many departments and units based on their function. These departments are led by experts and specialists. So there is a high degree of job specialization in the employees and the management. This will help the organization to achieve high efficiency in its operation.
   
   
6. Recruitment Based on Abilities and Qualification:
   This principle defines that a manager is fairly recruited on the basis of the skills and technical ability to lead the employees and handle the position. There is no preferential treatment for any candidate due to personal relations or links. This leads to developing functional expertise in the organization and improve the quality of the operation.
   
   
7. Systematic Filling:
   In a bureaucratic system, there is written recorded documents of each and every operation and activity of the organization. These written documents are the permanent record of the operations and act as legal papers as well as future references for the company.

Hence, these are the basic principles of the bureaucracy model of management.

Criticism of Bureaucracy Theory

The model of bureaucracy management is based on specialization and strict rules and regulation guided management. However, the concept of bureaucracy theory became too radical and rigid. The inflexibility of the management caused private organizations to adopt new methods of management. So, there are some criticisms of the Bureaucracy theory. They are as follows:

1. Delay in the Decision-making Process:
   In bureaucracy management, if a decision is to be taken about a certain problem then the decision must be taken by the top-level manager in the organization. Hence, if a problem occurs when the management cannot take immediate action but has to wait for the decision of the top-level manager.
   
   
2. Misuse of Power:
   In the bureaucratic system, power can be easily misused as the manager has superior power than his subordinates. This will cause the manager to misuse the authority and use the power for their personal benefit.
   
   
3. Discourages Creative and Innovative Ideas:
   Bureaucracy theory is focused on the strict following of the guidance of the managers. This kills the creativity of the employees as they blindly follow the lead of the supervisor. They are made to obey the readymade plans, they do not seek for new ways and ideas. Hence they have to follow the monotonous model of operation. This can also lead to the frustration of the employee.
   
   
4. Formal Recording Wastes Money and Effort:
   Bureaucracy believes in the system to formally record all the operations whether it be a small or big task in written documents. This is considered as a waste of money and efforts as the management is always focused on cost reduction to develop high efficiency. The use of modern means of recording can be more cost-efficient than written documents.
   
   
5. Rigidity and Inflexible in its Ways:
   The bureaucratic system is taken as a rigid and stubborn system of management as it does not update its system and methods according to the need of the time and situation.
   
   
6. One Way Communication:
   The communication in the bureaucratic system of management is only downward communication in which the information flows from the top-level management to the lower level management in the form of rules, regulations, tasks, and jobs. The employees are not able to provide necessary feedback to the top-level management for further improvement.

Hence, these are the limitations of Bureaucracy theory of management. Despite all its restrictions bureaucracy has become an important theory in present-day management. If the negative aspects of the theory such as inflexibility and strict organizational hierarchy are reconciled then it can be very effective and can help an organization attain organizational goals and achieve maximum output.