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It is Classical management and behavioral management. Brief comparison of the two methods simply, classical management treat productivity and efficiency are the most important things. Whereas, behavioral management emphasis on human emotions and relationships.
The object of those theories is same that focus on the way how employers can manage well their employees and people's work. But they have different view point to reach it. The classical management theory says that it was devised to make more productivity and efficiency
The first I will introduce Taylor's Scientific Management.
He called "the father of scientific management" tried to increase productivity through the efficient utilization of human resources as emphasis on the management of the job. He insisted to maximize worker's productivity, all duties have to be developed by scientific method. In detail, He studied and researched about worker's day time and action in order to determine the appropriate workload in scientific way. Because He thought uncertain workload should be fixed. And also who achieve their workload gets more wages than who doesn't achieve it to encourage employees to reach their goal by division of labor and cooperative.
Here are main four scientific management principles.
â‘ The development of true science
â‘¡ Scientific selection of workers
â‘¢ Workers science education and development
â‘£ Cooperative between managers and workers
This principle is not mismatch but cooperative harmony, not limited output, but the maximum output, the development for maximum efficiency.
Another theory is by Henri fayol who called the true father modern management.
Taylor mainly focused to only management to the work of the production place, whereas Fayol tried to confront with management of the entire corporate organization.
He insisted that at management activities, six elements. It is technical activities (production, manufacturing, processing), protection activities (goods and the protection of employees), commercial activity (purchase, sale, or exchange), financing activities (procurement of capital and operating), accounting activities (list of assets, balance sheet, cost, statistics), and management activities (planning, organizing, directing, coordination, and control). He thought that as expanding the scale of organization, It result will be that the number of employees who treat materials or machinery going up. So, management about these practitioners influences the success of the company. In performing the six management activities, it requires fourteen general rules. It is division of labor, authority and discipline, responsibility, unification of the unification of command, commanding, for the benefit of the entire subjection of individuals, maintenance, centralization, chain of hierarchy, order, fairness, and stability of the workplace, leadership, and esprit de corps
The last theory I'm introducing is Max Weber's bureaucracy.
Today, bureaucracy be thought inefficiencies, inelasticity, and illegitimate power, but the initial bureaucracy hold a lots of positive meanings. Weber (1864 ~ 1920) insisted that bureaucracy for rational and efficient operating to a huge organization. Bureaucracy theory is fundamentally based on the theory about the structure of authority.
The traits of bureaucracy are that rules and procedures should be thoroughly formulated in case instability of organization as making decision depended on administrator's subjective judgment. Administrators think it is most important feature to regulate and enact. And also the most important goal in the bureaucracy is efficiency. To reach it, they give to employees to specialized task. By using this way managing by non-personalized, regardless of the ability of individuals, company has stability maintenance.
When organizational environment is stable, and huge, such as military organization or government agency regardless of human element, It is suitable system. But for rapidly changing technology environment isn't suitable.
As I mentioned earlier, the classical management contributes to increase the work efficiency through mass production, but If focused only underclass in the factory sector, it just treat how to improve efficiency at only there. In addition, it considered the workers as slaves of wages. It means that if employees have reasonable amounts of tasks, employees considered as working machinery not human. And also there is no mention about communication between each other or vertical relationships.
To solve those problems, behavioral management appeared. It focused on the way a manager should personally manage to motivate employees. Especially by The Hawthorne study, They were able to establish the main concepts of behavioral management. As Elton Mayo did four times experiment, He thought corporate organization is the technical and economic systems, as well as the social system. That's why Individuals are motivated by a variety of social and psychological factors as well as economic incentives. So, informal organization is an important factor to determine a worker's attitude and performance. In detail, Development of efficient way to communicate between each other is important as one of the useful ways. By combining worker's satisfaction and productivity, it can bring increased organizational effectiveness
The Hawthorne study impact and give an opportunity to increase the interest and recognize that the human things such as people's feelings, attitudes, desires, and social relations etc in organization. Role is very important for productivity. In other words, human is the most important element of operating to efficient and rational organization. It means motivation not economics should be emphasize with the social characteristics of the work environment. At result, Happy employees can make higher performance.
Abraham Maslow also one of who believe the behavioral management. At "Motivation and personality (1964), he proposed a five hierarchy of desires. In other words, the human desire to exist as physiological needs (physiological needs), safety needs (safety needs), social needs (social needs), desire to respect (esteem needs), and self-actualization need (self-actualization needs).
Another person is Douglas McGregor. He insisted that there is a theory X has negative view about human and theory Y has positive view. Theory X is consistent with the views of the scientific management. Human hates to do work originally, tends to avoid responsibility. They just work with short term perspective. On the other side, Theory Y is insisted by people who advocate for human relations activities based on the basis of modern anthropology.
Contributions and limitations of behavioral management perspective
Behavioral management perspective, the human beings of current and future leaders to improve productivity is a key element of the organization was regarded as a mere machine, by the classical management perspective clearly had to reassess.
The other hand, however, as well as complex and abstract as a theory and there are many managers reluctant to adopt behavioral concepts, have each different claim limits are causing confusion in the selection of the executive
Comprehensively, Behavioral management contribute to reassess from classical management regarding human is a kind of machine to that human is key element of improving productivity.
However, the other hands, it has limitation not only too much complex and abstract as to do real action, but also causing confusion in the selection of executive
Now, you can see the difference between classical management and behavioral management. The classical management is based on the achieving results, not motivations. But behavioral management is based on employee behavior, satisfaction and expectation. Both of them are to reach their goals, however, One of them emphasizes regulation and how best to the work, another is emphasizes welfare of the workers and how to motivate workers to improve production.
âš APPLICATION OF BEHAVIORAL MANAGEMENT THEORY
Most of companies treat guests as king, but Southwest Airline's king is employee.
When you think that treating employees as a king not gests, you might think 'is this company okay?'. But actually, Southwest Airline was recorded No.1 company for making their customers satisfaction and having margin during 20 years. Isn't it ironic? Why they are No.1 company doing so nice to employees
It is due to their management which is when employees satisfy, it is working as motivation. So they can offer the most satisfaction to customers. In fact, It is based on the reason that person who has love their company, can do nice to customers.
Southwest Airlines makes atmosphere to employees without be discouraged. For example, If Customers to insult the employee, they express "you don't have to use our airline no more than I'm sorry. Evenly they just say "please use other airlines next time.". This atmosphere can make employee's behavior without restriction to do humorous and kindness naturally.
They work and make decision on their own beliefs under the thinking that when they do right thing, company will protect them.
Of course, They feel themselves as face of the company rather than machine, it can be motivate factor to do works
Southwest Airlines is very good example to show that how powerful the employee's voluntary system is.
Hurb, Kehelor who is representative before said "By giving freedom without warnings or instructions, employees make decisions by themselves. And by providing opportunities to make mistakes, they have flexibility on actions and thoughts. It occurs they can think by side of customers that what the best is"
Like he said, their good works is originated from faith, and trust.