Friday 5 February 2010

Organisation and management theory

Case study which displays classical school theory:

The case study, Call centres: a case study in people problems in a ‘modern workplace’ is an example of the classical approach. BT’s job design is often seen as an issue in weak maintenance. For example it states “Reference Is made to the ‘intensity’ of the call centres” and “jobs are ‘improvised’ being ‘routine’, ‘boring’ and lacking in variety”. This shows BT relates to the theory that uses scientific management as they take little account of how employees feel about work. (Barnes, 2004, pg.20) Another example that demonstrates the use of classical theory is "Call centres are plagued with high levels of labour turnover with rates averaging 19.3% at agent level and peaking at 37.8% in the food and drink sector" (Barnes, 2004, pg.19). BT call centres are definitely more tasks centered and do not pay attention to needs of workers which explains that the scientific management theory is followed. One of the main characteristics of bureaucracies is the specialisation and employment by the organisation. The most suited to being a call centre agent are “role conscious, dutiful, conscientious, perfectionist and introverted”. This shows when recruiting they are looking for employees with the right qualities. (Barnes, 2004, pg.20)

Case study which demonstrates human relations theory:

The case study, Dell computers: the world at your fingertips is a clear example of the human relations approach. In 1984 Michael Dell set up his own business where he began to build and sell computers directly to customers. It states, “Dell’s idea was to sell direct and at the same time allow customers to have a PC partly tailored to their personal requirements”. (Mullins, 2007) This gave a better level of consumer confidence and sense of involvement that they can choose the components and specification of their product. Dell is highly concerned about the service it provides by offering both reliability and value for money for its customers. The general philosophy of the company is described as “The soul of dell” and the code of conduct which is stated on the Dell website says “We want all members of our team, along with our shareholders, customers, suppliers, and other stakeholders, to understand that they can believe what we sat and trust what we do” (Dell, 2009) The Dell workforce demonstrates the human relation theory as its more people centered and pays attention and interest of the workers. Feedback from the workforce and customers is the key to Dell’s success.


Comparisons between BT and DELL

Both companies have a different approach and different principles to how a business should be organised and managed. BT demonstrates the Classical School theory and Dell demonstrates the Human Relations theory. BT pays less attention on the needs of the workers and has more consideration on the organisation. The focus of scientific management has been described as ‘organisations without people’. On the positive side the BT is concerned with the tasks and tries to meet their aims and objectives under any circumstances. The scientific management approach is used where the best and most efficient method of working for each task by which people should undertake their jobs. On the other hand Dell focuses on human relations approaches and has been described as ‘people without organisations’. The key success is through the workforce and believes the level of production is influenced by the social factors at work. By encouraging the workforce to get involved in the process of the Dell system motivates staff and feels they are belonged.

Scientific management: Advantages and Disadvantages Advantages:


Increased productivity and efficiency from individual workers.
Increased wages while the product cost is dropping.
selection of work force with appropriate abilities for specific tasks.
They keep training employees and increase their professional level.
The most efficient workers are kept which may help boost the sales revenue and therefore profits of a business.


Disadvantages:

Ignores the human element and the view on an employee.
limits interests and needs of employees resulting in de-motivation.
Workers are motivated by only money reasons.
There is a seeming lack of opportunity and contribution towards systematically training and making a man competent.
working conditions were not taken into consideration as the managers didn't care how they worked.

Conclusion:

To conclude, the four main organisation and management theories are the classical school, human relations, systems approaches and contingency approach theory. Scientific management and bureaucracy are part of classical theory and this approach is more task centered and takes in little account of the workers. Human relations theory is the quite the opposite of classical theory, because it is believed employees are the more important factor and productivity will increased with the job satisfaction. A lot of the organisations nowadays follow this theory.

Reference:

Barnes, P. (2004) Call centres: a case study in people problems in a ‘modern workplace’

Mullins, L. (2007) Approaches to organisation management, Eighth edition, Chapter 2, pg 69

Dell (2009)

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