YARDSTICK INTERNATIONAL COLLEGE

DEPARTMENT OF BUSINESS ADMINISTRATION

Course Name: Management Theories and Practices (MBA611)

Individual Assignment 1

Name: - Gizachew Dobebo Id: - MBAO/1896/15A

Submitted to: - Dr. Gebre

January, 2022

Doyogena, Ethiopia

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Q1. Discuss the Autobiography of each contributors/authors to the school of management thought that
you have selected.

A) Scientific Management Theory

Scientific management is a management theory that analyzes work flows to improve economic efficiency,
especially labor productivity. This management theory, developed by Frederick Winslow Taylor, was
popular in the 1880s and 1890s in U.S. manufacturing industries.

While the terms “scientific management” and “Taylorism” are often treated as synonymous, a more
accurate view is that Taylorism is the first form of scientific management. Taylorism is sometimes called
the “classical perspective,” meaning that it is still observed for its influence but no longer practiced
exclusively. Scientific management was best known from 1910 to 1920, but in the 1920s, competing
management theories and methods emerged, rendering scientific management largely obsolete by the
1930s. However, many of the themes of scientific management are still seen in industrial engineering and
management today.

Frederick Winslow Taylor

Taylor was a mechanical engineer who was primarily interested in the type of work done in factories and
mechanical shops. He observed that the owners and managers of the factories knew little about what actually took
place in the workshops. Taylor believed that the system could be improved, and he looked around for an incentive.
He settled on money. He believed a worker should get “a fair day‟s pay for a fair day‟s work” no more, no less. If
the worker couldn‟t work to the target, then the person shouldn‟t be working at all. Taylor also believed that
management and labor should cooperate and work together to meet goals. He was the first to suggest that the
primary functions of managers should be planning and training.

Objectives of Scientific Management Theory by Taylor:

The major objectives of Scientific Management Theory by Taylor are a maximum improvement of
workers. This improvement shows on efficiency and effectiveness performance. Such development is the
revolution in management procedure and employee‟s actual performance.

If the procedures and principles of scientific management theory by Taylor apply, it can huge change on
the following things. For instance:-

 Prevent the wastage of time.

 Reduce the cost of production.
 Secure the labor in industry.
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  Increase the efficiency of the workers.
 Develop the relationship between workers and managers.

Other major contributors to scientific theory or management include:

 Henry L. Gantt (18611919) - Gantt was an industrial and mechanical engineer who focused on
project efficiency. He developed a series of charts that have become important tools in management
practice. He linked manager performance and benefits to the ability to effectively train employees to
be more productive. He also believed that businesses have a social obligation to improvise the welfare
of the society in which it operates.

 Carl G. Barth (18601939) - Barth was an engineer and mathematician. He was an advocated and
educator on scientific method. He is best known for improving upon the slide rule for use in industrial
operations.

 Horace K. Hathaway (18781944) - Hathaway was perhaps the most successful practitioner of
Taylors methods. He also contributed greatly to scientific method by writing extensively on the
implementation of these methods in various areas of the organization. The topics of his writings
include: executive functions, research organization, business development and sales, manager
responsibilities, financial statements, budgetary controls, comptroller functions, and internal auditing.

 Morris L. Cooke (18721960) - Cooke was a practitioner of scientific management theory who
worked closely with Taylor. He implemented these principles in several government and private
industry positions in the areas of residential electricity, labor-management relations, and land and
water resource conservation. He wrote a text, Industrial Management (1907) that strongly influenced
Taylor.

 Sanford E. Thompson (18671949) - Thompson was an academic and practitioner who worked
closely with Taylor. He focused specially on efficiency through time studies and tool development.
With Taylor, he co-wrote Concrete Costs (1912) which focused on breaking manual labor tasks into
comparable time units.

 Frank B. Gilbreth (18681924). F. Gilbreth's performed early work on on "motion study. He

integrated his working into scientific management study to focus on efficiency and standardization of
task performance in organizations - particularly factories.

 Dr Lillian Moller Gilbreth (18781972) performed early micro-motion studies. These studies
furthered Taylors time studies by employing cameras to record micro-movements. L. Gilbreth also
devoted herself to the study of individual psychology within the organization.

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 Harrington Emerson (18531931) - Emerson was an efficiency engineer and management consultant.
He employs a form of the scientific approach to manage that he labeled Efficiency Management. While
he never worked with Taylor, his principles of efficiency closely matched this of Taylor. He added
elements of functional management through the idea of the line and staff organization.

This model used a staff to advise a single line manager. This manager would then direct the work efforts
of line subordinates. He also developed a compensation system that based employee compensation on
efficiency percent. Basically, employee efficiency is compensated based upon task completion - either
higher or lower than expectations.

Q2. What were the reasons/motives of each contributors/authors behind developing such management
theory?

Frederick Winslow Taylor, who formulated the scientific management theory, came up with a solution
for the inefficiency by observing worker productivity through scientific methods.

His work, Principles of Scientific Management, published in 1911, differentiated the scientific method
from the traditional management approach.

Taylor opined that under classical management, the workers are incentivized only through higher pay and
that management itself is not responsible for any issues causing bad work environments.

According to Taylor, the „remedy for the inefficiency lies in systematic management‟. He believed that
workers are not inherently lazy. Bad working conditions are a reason for their inefficiency.

But this is not the only reason for the worker‟s inefficiency. Taylor identified two more reasons causing
it. One was that workers cannot produce the desired output in a given time. Second, the job was not
understood by the worker and was done wrong.
Q3. Discuss clearly each authors/contributors theories/principles/assumptions.

Frederick Taylor’s four principles of Scientific Management are:

1. Develop a science for each element of work.

2. Scientifically Select, Train, Teach, and Develop the worker.
3. Cooperate with the Worker.
4. Divide the Work and Responsibility.

Frederick Winslow Taylor's three assumptions of Scientific Management are:

1. A good worker is not supposed to take initiative, but is supposed to obey orders.
2. Application of scientific principles will improve productivity.

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 3. The worker is an economic man and is motivated by monetary incentives and rewards.

Q4. What were the strengths and weakness of each contributors/authors theory/principles?
Criticism of Taylor's Scientific Management Theory

1. Exploitation of Workers
Taylor's Scientific Management put unnecessary pressures on the employees to perform the work faster.
Importance was given to productivity and profitability. This resulted in exploitation of the employees.
Therefore, many employees joined trade unions. This also resulted in mistrust between management and
employees.

2. Problem of Unity of Command

Taylor used functional foremanship. So, the workers have to report to eight bosses. This breaks the
principle of unity of command, where the workers have to report to only one boss. Lack of unity of
command can create confusion and chaos in the organisation.

3. Mechanical Approach

Taylor's approach was a mechanical approach. He gave too much importance to efficiency. He did not
consider the human element. Taylor considered workers as robots, which could speed up the work at any
cost.

4. Problem of Separation of Planning from Doing

Taylor said to separate planning from doing. In reality, we cannot separate planning from doing. The
planners should also be engaged in doing, then only they will be able to make realistic plans for the
organisation.
5. Individualistic Approach
Taylor's scientific management gives too much importance to individual performance and not to group
performance. However, the success of an organisation depends not only on individual performance of
workers, but also on group performance of workers.
6. Wrong Assumptions
Taylor assumed that workers are motivated only by financial gains. However, in reality, workers are
motivated not financial incentives but also by social needs and personal egos.

7. Narrow Application

Taylor's scientific management has narrow application. It can be applied only when the performance of
the workers can be measured quantitatively. It can be applied only for factories where the performance
can be measured quantitatively. It cannot be used in the service sector because in this sector the
performance of a person cannot be measured quantitatively.
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Q5. Discuss the overall thoughts of the school

Scientific management theory considers employee efficiency, whereas administrative management theory
considers human and behavioral determinants of the organization. Furthermore, administrative theory
emphasizes on activities like planning and controlling, whereas scientific theory emphasizes on work
study and time of study of workers. So, this is the key difference between scientific management and
administrative management.

Moreover, a further difference between scientific management and administrative management theory is
that administrative management theory has more emphasis on top management, whereas scientific
management theory has an emphasis on low-level management in an organization. Besides,
administrative management theory can be applied to any organization, because it is universally
applicable, but scientific management theory is applied only to specialized organizations.

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Q6. What were the critics given to the school as strength/weakness?

Criticism of Scientific management theory

The biggest complaint against this theory was its approach towards the work force. It treated them like
machines. The worker was supposed to finish the task in the most efficient manner and consuming the least
amount of time. The worker's condition, work environment etc. wasn't considered at all.

Another criticism against scientific management theory was that it was more in the favor of management.
The workers had little say in the things. The management's emphasis was on the increase in the productivity
only and Taylor's theory worked perfectly for them.

Another shortcoming in the scientific management theory was that it considered money as the primary
motivational source for the workers. It assumed that differential rate system, which asks for paying more to a
highly productive worker, would motivate others too to put in more efforts. The later studies revealed that
money is just one of the factors in motivating the employees to become more productive. There are several
other factors like work environment, safety, etc. that play a role in inspiring workers to do better. The
simplistic assumption of Taylor's theory that workers would willingly work more for higher money was
flawed.

Finally, scientific management theory was applicable at shop-floor level only. There was nothing in it for the
supervisors & middle management. So, it didn't cover the ambit of the whole organization.
Due to the above mentioned reasons, very soon discontent began to rise in the workers. The management
was keen on increasing the productivity without understanding the concerns of the workers. This led to deep
chasm between both the parties. It also led to the formation of unions to safeguard the interests of workers. It
took several years before the things could go back to normalcy in the wake of new management theories that
emphasized on the human aspect of management.

Strengths of scientific management theory are:

 Using this approach to study the labor process and determine the best ways to accomplish tasks and goals;
 Improving the process of selecting employees suitable for performing a particular function;
 Constant provision of resources;
 Introduction of material incentives for personnel to increase productivity;
 Effective planning of organizational activities of the organization.

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 Weakness of scientific management theory is:

 Implies only simple operations to achieve goals;

 Requires sufficiently large material costs to be applied in practice. This is because research and some
improvements in the company‟s activities require high initial costs.
 Leads to the loss of individual initiative on the organization‟s employees. This negative consequence is
associated with excessive standardization of workplaces.
 The introduction of labor-saving devices leads to an increase in the level of layoffs and cases of
unemployment.
 Takes into account only the material aspect of employee motivation as the most basic (Trist, 2016).

Q7. Based on the theories/principles of management developed in your selected school of thought, select
a large scaled organizations around your area as a case and evaluate (compare and contrast) your case
organizations management practices/applications with the theories/principles of your selected school of
thought.

Ethio Telecom Corporation (ETC)

Ethio Telecom was introduced in Ethiopia by Emperor Menelik II in 1894 during the
commencement of the telephone line installation from Harar to Addis Ababa. Then the inter-urban
network was expanded in all other directions from the capital and many important centers in the
Empire were interconnected by landlines to facilitate long-distance communications with the help of
intermediate operators acting as verbal human repeaters.
Ethio telecom is one of large scaled organization and has got its current status since 29th
November 2010 as a part of Ethiopia‟s 2005/06 – 2009/10 GTP following the federal government‟s
decision to focus on improving telecom services, taking them as key to national development.
Ethio telecom is an integrated government owned telecommunications solutions provider operating
in Ethiopia launched on December, 2010 by the reforming the former Ethiopian Telecommunication
Corporation. The company currently provides telecom service in the entire country on voice, internet
& data, channels, with comprehensive plans in place to meet the requirements set out by the Ministry
of Communications & Information Technology (MCIT) and peoples of Ethiopia. Ethio telecom is
fully owned by the state government, but management was outsourced to France telecom known as
Orange Company for two and half years. The government was outsourced the old company ETC
because of unable to meet the demands of the fast growing country. The contract was aimed at
uplifting the service of ethio telecom to international standards and to facilitate technology transfer

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for domestic professionals. The Ethiopian government has decided to transform the
telecommunication infrastructure and services to world class standard, considering them as a key
lever in the development of Ethiopia. Thus, ethio telecom is born from this ambition in order to bring
about a paradigm shift in the development of the telecom sector to support the steady growth of our
country.
Many employees have been assigned and trained following the organization reform of ethio telecom
since 2010 but they are remained stagnant with little evidence of career development. There is a
level from which employees (whether staff or management) find it difficult to move upwards or get
promoted yet the company needs employees who perform their duties well. Limited career
development is a problem. However, how limited career development affects the motivation of
employees remains not well understood in ethio telecom. In addition the hindrances to career
development are not known and the solutions to these hindrances are not known either. If this
problem continues and motivation gets seriously affected, the performance of the employees is likely
to decline and this could seriously affect the achievement of the goals and objectives of ethio
telecom.

So to recommend the possible strategies that will minimize hindrances of career development and
maximize the motivation of employees in the company to enhance the performance of the employees
that will contribute to the achievement of the broad organizational goals and objectives of ethio
telecom.
Q8. Give the suggestion or recommendations regarding the organizations practices weakness and
strength based on the schools theories of management.

Suggestions or recommendations

 Ethio telecom should appreciate the role or impact of career advancement on employees‟
motivation to work hard. There should be effective planning of career goals and paths.

 Employees should be rewarded by ethio telecom for their hard work. Reward systems or
methods should have real positive gains or outcomes such as promotion, salary increase or
recognition awards.

Ethio-telecom management should recognize that career advancement, in general, and

promotion; in particular, have a highly significant effect on motivation.

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B) Adminstrative Managemenet Theory

Q1) Administrative Management is a term concerned with designing and managing the whole
structure of organization. It involves monitoring the day to day activities of organization for ensuring
uninterrupted continuity in today‟s fast pace environment. Administrative management is an
administrative theory that focuses on creating a formalized administrative structure, developing a
proper hierarchy of authority, deciding their key functions and responsibilities, and proper division
of labor within the organization. It is very key function for each organization that enables
management of information via peoples. Administrative managers keep an eye on information flow
within the organization so that all resources are efficiently utilized for better productivity.
Q2) The administrative theory of management is focused on principles that could be used by
managers to coordinate the internal activities of organizations. The most prominent of the
administrative theorists was Henri Fayol. Fayol observed a work stoppage and judged it to be a
management failure. He believed that organizational managerial practices are important for driving
predictability and efficiency in organizations.

The administrative theory of management is focused on principles that could be used by managers to
coordinate the internal activities of organizations. The most prominent of the administrative theorists was
Henri Fayol. Fayol observed a work stoppage and judged it to be a management failure. He believed that
organizational managerial practices are important for driving predictability and efficiency in
organizations.

While the proponents of scientific management developed principles that could help the individual
workers perform their tasks more efficiently, the administrative theory focused on principles that could be
used by managers to coordinate the internal activities of organizations. The most prominent of the
administrative theorists was Henri Fayol.

Henri Fayol (1849-1925), was a French industrialist and a prominent European management theorist.
Henri Fayol is known as the Father of Management and he developed a general theory of
management and also, laid down the 14 principles of Management. Fayol was unknown to American
managers and scholars until his most important work, "General and industrial management", was
translated into English in 1949. These 14 principles of management are used to manage an organization
and are beneficial for prediction, planning, decision-making, organization and process management,
control, and coordination.

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Henry Fayol, also known as the „father of modern management theory‟ gave a new perception of the
concept of management. He introduced a general theory that can be applied to all levels of management
and every department. The Fayol theory is practised by the managers to organize and regulate the internal
activities of an organization. He concentrated on accomplishing managerial efficiency.

Q3. The fourteen principles of management created by Henri Fayol are explained below.

1. Division of Work
Henri believed that segregating work in the workforce amongst the worker will enhance the quality of the
product. Similarly, he also concluded that the division of work improves the productivity, efficiency,
accuracy and speed of the workers. This principle is appropriate for both the managerial as well as a
technical work level.
2. Authority and Responsibility-

These are the two key aspects of management. Authority facilitates the management to work efficiently,
and responsibility makes them responsible for the work done under their guidance or leadership.

3. Discipline

Without discipline, nothing can be accomplished. It is the core value for any project or any management.
Good performance and sensible interrelation make the management job easy and comprehensive.
Employees good behaviour also helps them smoothly build and progress in their professional careers.

4. Unity of Command

This means an employee should have only one boss and follow his command. If an employee has to
follow more than one boss, there begins a conflict of interest and can create confusion.

5. Unity of Direction

Whoever is engaged in the same activity should have a unified goal. This means all the person working in
a company should have one goal and motive which will make the work easier and achieve the set goal
easily.

6. Subordination of Individual Interest-

This indicates a company should work unitedly towards the interest of a company rather than personal
interest. Be subordinate to the purposes of an organization. This refers to the whole chain of command in
a company.

7. Remuneration

This plays an important role in motivating the workers of a company. Remuneration can be monetary or
non-monetary. However, it should be according to an individual‟s efforts they have made.

8. Centralization-
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In any company, the management or any authority responsible for the decision-making process should be
neutral. However, this depends on the size of an organization. Henri Fayol stressed on the point that there
should be a balance between the hierarchy and division of power.

9. Scalar Chain

Fayol on this principle highlights that the hierarchy steps should be from the top to the lowest. This is
necessary so that every employee knows their immediate senior also they should be able to contact any, if
needed.

10. Order

A company should maintain a well-defined work order to have a favourable work culture. The positive
atmosphere in the workplace will boost more positive productivity.

11. Equity

All employees should be treated equally and respectfully. It‟s the responsibility of a manager that no
employees face discrimination.

12. Stability

An employee delivers the best if they feel secure in their job. It is the duty of the management to offer job
security to their employees.

13. Initiative

The management should support and encourage the employees to take initiatives in an organization. It
will help them to increase their interest and make then worth.
14. Esprit de Corps-
It is the responsibility of the management to motivate their employees and be supportive of each other
regularly. Developing trust and mutual understanding will lead to a positive outcome and work
environment.
These 14 principles of management are used to manage an organization and are beneficial for prediction,
planning, decision-making, organization and process management, control and coordination.
Also Read about the Difference Between Fayol and Taylors Theories of Management
For more data on Business Studies Class 12 Syllabus, Commerce notifications and sample papers for
Class 12 Commerce, stay tuned to BYJU‟S.
Q4. Strength of Henry Fayol’s Principles

It is the most comprehensive administrative management theory Henri Fayol‟s theory is extremely
comprehensive as a way to deal with management techniques. It is also the most used because it has been
proven to work. It‟s being comprehensive as it covers just about anything one might need to do in a
management position to ensure success.

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 Weaknesses of Henry Fayol’s Principles

It is still based on human application. The weaknesses to the theory are that it is still based on humans.
As humans we are naturally going to make mistakes.

Q5. Administrative management approach is one of the important approach of organization. It was
initiated in the first half of the 20th century by a group of writers whose interest was mainly in formal
organization and the basic management process. Henry Fayol, Luther Gullick,. L.F. Urwick, Mooney,
A.C. Reiley, M.P. Follett and R. Shelton are the important proponents of this theory.

This approach is also known as structural theory of organization, as it deal with formal organization. The
most important concern of the formal organization theory is the formulation of certain universal
principles of organization. It deals primarily with formal organization structure. The theory assumes that
there are certain fundamental principles on the basis of which an organization can be established to
achieve a specific objective.

The watch words of this approach are efficiency and economy, as it conceives that these principles, if
fully adopted, can lead to maximum organizational efficiency and economy. The administrative
management approach treats an organization as a closed system. Completely unconnected with and
uninfluenced by its external environment. It is more concerned with what ought to be and this kept in
away from the study of actual behavior in organization, It underestimated the human factor and views that
organization as a machine and human beings are cogs of this machine.

Q6. Criticism of Administrative Management Theory Henri Fayol's management principles and functions
are used even today for managing the organizations.

However, his Administrative Management Theory is criticized on the following grounds: -

1. Management Oriented Theory: The administrative management theory is management oriented.

It does not give much attention to the problems of the workers.

2. Lack of Importance to Informal Organization: The administrative management theory does not give
any importance to informal organization or groups. It gives importance only to the formal organization
structure.

3. Concepts Borrowed from Military Science: Some of the concepts of administrative management
theory were borrowed from military science. They tried to apply these concepts to the social and business
organizations. For e.g. Henri Fayol gave importance to "commanding" and not "directing" the workers.

4. Mechanical Approach: The administrative management theory has a mechanical approach. It does not
deal with some of the important aspects of management such as motivation, communication and leading.

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