Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 Critically explain benefits/ shortfalls of these theories...............................................................1 Application of theories in the contemporary world....................................................................2 Analysis of theories.....................................................................................................................3 How theories benefits the stakeholder and workplace environment...........................................3 CONCLUSION................................................................................................................................4 REFERANCES................................................................................................................................5
INTRODUCTION This analysis is conducted to examine the foundational theory of management in context of multidisciplinary business. Scientific management theory was developed by F.W. Taylor at the end of 19thcentury and it was applied at beginning of 20thcentury. Bureaucratic theory was introduced by a German Sociologist and Political economist, Max Weber. According to him, this theory focus on strictly implementation of rules and regulation as well as hierarchy system in ordertoachievemaximumefficiency(Thompson,2017).Bureaucratictheorywasvery insightful because it consider organization as a part of broader society. Max Weber's bureaucratic management theory includes six principles such as task specialisation, hierarchical of authority, formal selection, rules and requirements, impersonal, career orientation. Administrative theory of management was introduced by a scientist Henri Fayol. This theory is based on 14 principles of management that serve as a guideline for decision making and management actions. These principles are consider as a statements that are based on fundamental truth. Hanri Fayol has established 14 principles of this theory such as division of work, authority and responsibility, discipline,Unityofcommand,unityofdirection,subordinationofindividualinterest, remuneration,centralization,scalarchain,order,equity,stabilityoftenureofpersonnel, initiative,espritdecorps.Bureaucratictheoryofmanagementisusefulinmaintaining, controlling as well as adjusting management process when ever necessary. These 14 principles of administrative theory are very helpful in planning, management forecasting, decision making as well as controlling organizational activities. MAIN BODY Critically explain benefits/ shortfalls of these theories. Benefits and shortfalls of Bureaucratic theory is mention below. Benefits:Bureaucratictheoryisfacilitatesspecialisationadvantagebyproviding specialized task to each and every member. It has created a proper structure which helps in assigning duties and responsibility easily as well as creating reporting relationship within organization (Dalton, 2017). This is very helpful in dealing with complex situations as it ensure stability by predictability as well as structural framework. Shortfalls:This theory is very rigid and inflexible as it includes many rules and regulations. Strict rules discourages creativity and initiative which can be major reason for task 1
failures. More importance is given toorganization rules and regulation and individual goals as well as needs are neglected. This theory includes proper documentation and paper work of each and every decision which is a great waste of time, stationery and space. Benefits and shortfalls of administrative theory is mention below. Benefits: This theory is extremely comprehensive as a way to deal with management techniques as it provide proper guidelines to managers and employees within organization. Principles of administrative theory is very helpful in facilitating organizational structure so that each and every task can be accomplished timely (Dan-Cohen, 2016). Fair compensation motivates employees and they work with their full efficiency and capabilities. Shortfalls: Many of the assumptions is not based on scientific test but on value judgements which is a drawback of administrative theory. It is complete;y based on human application and this theory is works on having harmony among people in order to create strong managementteam. Relianceon certain typeof organization and limited experience isa disadvantage of administrative theory. Application of theories in the contemporary world. Organisationsofwholeworldexercisebureaucratictheoryintheiroperations. Hierarchical of Authority principle to clearly define authority and responsibility of each position. Tasks are also divided into simple and routines to different employees who are specialised in their fields which guides following organisation to attain goals with specialisation. Through these principles nowadays business enterprises recruiting personnel on basis of their technical skills which acquired by training, education and experience (Rosenbloom, 2016).Rules and regulations and other principles are formed to ensure uniformity and achievement of targets effectively in current situations. All principles of bureaucratic theory are applied in organisations to achieve targets and goals in effective manner. In present world, organisations exercise principles of administrative theories by Henry Fayol to achieve their targets and profits effectively. Principles such as division of work, authority and responsibility and discipline guides employees of an enterprise to work in discipline as work isdivided as per their specialisation and knowledge areas. This will help them to achieve personal and professional developments. To get work done in companies management has a authority to give orders to their sub ordinates and its a responsibility of employees to perform as per expectations. Through principle of unity of command and unity of 2
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direction employees in organisations in today's corporate life individual employee receives orders from one manager and that answerable to thatmanager only and assists employees of a team to work and perform all activities as per plan described by their superiors. When principle subordination of individual interest is followed in an organisation all focus is diverted towards achievement of targets and objectives of an enterprise, not individual goals (Caiden, 2017). Other principles such as centralisation, scalar chain, order, equity, stability, initiative and Esprit de corps motivate employees to work in order and they are treated equally in relation to tenure and payments. It focuses that employees should be initiative in every field and must contribute in development of culture. Analysis of theories. Max Weber has achieved his targets as principles of this theory are applied to each and every organisation which guides organisations to achieve their targets. As in present day with help of impersonality principle rules are applied to each and every employee working in enterprise which reflect that there is no special treatment and favouritism. Principles such as career orientation, work in hierarchy, work division, selection of employees formally and application of rules and regulations guides organisations to perform their activities and smooth functioning of their business processes. Through the principles of Administrative theory, Henry Fayol achieved his targets and successful as his principles are followed by organisations of entire world. As organisations are providing monetary and non monetary remunerations, centralisation in delegation of authority, equity for all, discipline at working place, stability in tenure and various attributes which are in process in every organisation, this results in success of this theory (Im, 2014). Principles of administrative theory helps an organisation in various ways, it assists that every material and manpower should be at proper place or in order. How theories benefits the stakeholder and workplace environment. Bureaucratic theory and administrative theory is very important for stakeholder and workplace. These theories are developed for providing guidance and direction to employees and managers of organization so that they can complete their task efficiently and efficiently. Both of these theories are helpful in achieve goals and objective of organization. Benefits of Bureaucratic theory for stakeholder and workplace environment is mention below:Bureaucratic theory is based on proper structure and rules which is very helpful in 3
providing task and responsibility to each and every member of organization. Employees are accountable for their task and completions of task timely. This will leads to create a positive work environment in an organization as it decrease the chance of chaos and misunderstanding related to task and work (Khorasani and Almasifard, 2017). It provide job security within employees as well as equal chances to succeed in future. This motivates employees and they work with their full potential and skills for benefit of organization. Benefits of Administrative theory for stakeholder and workplace environment:This theory is very helpful in maintaining a healthy work environment as well as control finance of organization. Administrative theory provide 14 principles which are very helpful in controlling spending, reducing waste and keeping finance of organization in good shape. Performance of each and every employee can be identify easily and corrective measures can be taken which leads to increase productivity of organization. CONCLUSION From the above report it has been summarised that theoretical framework is a set of accepted beliefs that aid in guide analytical practices through certain principles that are tested. On the basis of these practices an organisation or an individual can implement appropriate principlesintheirworkingpractices.AstheBureaucratictheoryisdefiningappropriate implementation of rules and regulations on the basis of strict criteria. Main objectives of this theory is to enhance maximum efficiency with the help of systematic formation. It is an ideal model that lays down the basic principles of bureaucracy for the effective implementation of appropriate rules and business framework. On the other hand, 14 principle of management is based on administrative practices that derived managerial decision making. Main objectives of this theory is to analyse basic requirements of management and serve guidelines for effective decision making. 4