CIMA E2 Syllabus B. Managing people performance - Management theories - Notes ^{6 / 21}

1. Classical (This is further broken down into scientific management, functions of management and bureaucracy)

2. Human Relations

3. Systems

4. Contingency

Taylor’s scientific management theory favours specialisation.

There are 4 principles with regards to scientific management:

1. The development of a true science of work - This is the assessment of what constitutes a fair day’s work.

2. The scientific selection and progressive development of workers - Here employee training is required and employees should be paid on a piecework basis.

3. The bringing together of the science of work and the scientifically selected and trained man - Here the workforce is encouraged to develop to their full potential.

4. The constant and intimate cooperation between management and workers - Work is allocated by consultation and cooperation between management and workers.

Weaknesses of the scientific management theory:

1. It dehumanises the workforce

2. It is only appropriate to repetitive, predictable work

3. It assumes “one best method”, despite worker variability

Weber’s bureaucratic management theory

It is based on formalisation and standardisation. It sees little need for involving staff in decision making. Advantages of bureaucracy include that some people are suited to structured environments and it is ideal for standard tasks.

One characteristic of Weber's approach is what is called the "hierarchy of roles", according to which the organisation, its roles and relations, pre-exist the personnel who fit into that organisational structure.

Bureaucracy (Weber) has laid down 8 characteristics of ideal bureaucracy.

1. Specialisation

2. Hierarchy

3. Rules

4. Impersonality

5. Appointed officials

6. Career officials

7. Full-time officials

8. Public/private division

Disadvantages of bureaucracy:

1. Slow response to change and slow communication

2. Staff is not involved in decision making

3. Increased rules lead to a decrease in innovation

4. No recognition of informal relationships