Critical Discussion of Classical Management Theory Applied to Modern Organisations

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Critical Discussion of Classical Management Theory Applied to Modern Organizations


Two of the most commonly studied and applied management theories are those of Taylorist and Fordist management theories.

Taylorism or more commonly known as Scientific Management Theory is the name of the methodology to management, industrial and organizational psychology, which was introduced by Frederick Winslow in 1911 in his monograph ‘The Principles of Scientific Management’. Taylorism is frequently studied alongside the theory of Fordism. The reason behind this is that it was nearly connected with large scale manufacture strategies is assembling production lines. Taylor's name for his methodology was Scientific Management. This kind of assignment turned advancement of work errands is almost omnipresent today in modest commercial ventures, most eminently in sequential construction systems and quick sustenance restaurants which is otherwise known as the concept of Mcdonaldisation. His contentions started from his perception that, as a rule, laborers in dull employments work at the slowest rate that goes unpunished. This moderate rate of work – which he assigned the term "soldiering", however may these days be referred to as "loafing", "malingering" or "slacking", he opined, was a mix of the intrinsic apathy of individuals and the perception that, when paid the same sum, laborers will have a tendency to do the measure of work the slowest around them does. He in this way suggested that the work done that had been created in most work situations was created, deliberately or unintentionally, to be extremely wasteful in its execution. From this he set that there was one best strategy for performing a specific assignment, and that assuming that it were taught to specialists, their profit might go up. Taylor presented numerous ideas that were not broadly acknowledged around then. Case in point, by watching laborers, he chose that work may as well incorporate rest breaks so the laborer has time to recuperate from weariness. He demonstrated this with the errand of emptying metal. Laborers were taught to take rest throughout work and yield went up. In today’s time, this concept is used by the army in a way that the soldiers are requested to enjoy a reprieve of 10 minutes for each hour of walking. This takes into consideration an any longer constrained walk than nonstop strolling.

There are four basic principles of the Scientific Management or Taylorist management theory. These principles include, firstly, swapping work by "rule of thumb," or basic propensity and the ability to think, and rather utilize the deductive technique to study work and focus the most productive approach to perform particular assignments. Secondly, as opposed to basically allocate laborers to simply any employment, match specialists to their occupations dependent upon competence and inspiration, and train them to work at greatest proficiency. Thirdly, screen specialist execution, and give guidelines and supervision to guarantee that they're utilizing the most productive methods for living up to expectations. Lastly, designate the work between directors and specialists with the goal that the supervisors invest their time arranging and preparing, permitting the laborers to perform their undertakings productively.

Taylorism is often considered in context of wage or effort exchanges (Littler, 1978). The sociological importance of Taylorism in connection to wage/ effort trade does not lie in a basic movement to piece-work.

Criticism of Taylorism

The critics had been arguing that, in fact, Taylorist theory of management does not lead to effective management. According to the employees, the management diminishes job opportunities from them through reinstatement of men by machines and by expanding human profit less specialists is required to do work prompting throwing out from their employments. They feel that they are exploited as they are not given due portion in expanding benefits which is because of their expanded benefit. Wages don't climb in extent as ascent in preparation. Wage installment makes questionable matter & frailty. Because of over the top specialization the laborers are not fit to undertake their own. Their status is decreased to being unimportant teeth in wheel. Occupations get dull. Specialists detached investment in employments and infer little delight from work. To everything is altered & decided ahead of time by administration. So it leaves no space for exchange unions to deal as everything is institutionalized, standard yield, standard working conditions, standard time and so forth. This further debilitates exchange unions, makes a crack between productive & in effective specialists consistent with their wages. The investigative administration lays standard yield, time so they need to surge up and complete the work in time. These have unfriendly impact on soundness of laborers. The specialists accelerate to that standard yield, so deductive administration drives the laborers to surge towards yield and completion work in standard time. Investigative administration is an expensive framework and a tremendous financing is needed in station of arranging dept., institutionalization, work study, preparing of laborers. It may be far-off of little firms. Substantial sustenance speculation prompts build in overhead expenses. Investigative administration requires mental modification and complete rearranging of association. A considerable measure of time is needed for work, study, institutionalization & specialization. Throughout this updating of association, the work endures. Consistent with analysts this hypothesis has specific burdens -, for example, it disregards human components as workers are acknowledged as machines. It overlooks human prerequisites, needs and goals. It includes partition of arranging and doing. It may prompt disappointment in light of contrasting execution and others. Likewise, experimental administration does not provide for one most ideal path for taking care of issues (Jawad, 2014).

Fordism and its criticism

Fordism, on the contrary, was introduced with the setting of the assembly line in the early twentieth century as it prompted an arrangement of processing that came to be reputed to be Fordism. It turned into the predominant industrialization standard of the created nations of North America, Europe and Japan. With innovative and administrative changes that occurred after the 1970s, Fordism was essentially supplanted (or stretched) by Post-Fordism, which is more reflective of the worldwide economy and the extended portability of the variables of handling. The center of Fordism is the idea of extensive manufactures providing food the advancement of a mass business. Generation is greatly organized with a pyramidal charge structure. It typically benefits a national business sector with a keep tabs on supply (handling) and the desire that the business sector will ingest the yield. This is connected with preparation process durations that use weeks if not months to acclimate to the vacillation of the interest, and in addition data streams that are abate and slacking (Jawad, 2014). Fordism alludes to the arrangement of extensive manufactures and utilization normal for remarkably created economies throughout the 1940s-1960s. Under Fordism, mass utilization consolidated with extensive manufactures to process maintained budgetary development and broad material headway. The 1970s-1990s have been a time of slower development and expanding pay bias. Throughout this period, the arrangement of association of processing and utilization has, maybe, experienced a second change, which when adult guarantees a second blast of financial development. This new framework is regularly alluded to as the "adaptable arrangement of creation" (FSP) or the "Japanese administration framework." On the processing side, FSP is portrayed by sensational decreases in data expenses and overheads, Total Quality Management (TQM), in the nick of time stock control, and leaderless work bunches; on the utilization side, by the globalization of shopper products markets, quicker item life cycles, and far more terrific product/market division and separation (Thompson, n.d). Fordism - as enhanced over forty years - offered a marvelously effective arrangement of mass production (Tylecote and Vertova, n.d).

Ford connected to the handling of engine vehicles the deterioration of undertakings, the specialization of instruments, the gathering of apparatuses into the machine, and even of machines into the machine framework. These were all commonplace of the conversion of specialty handling into vast scale mechanical creation, a methodology which had as of recently moved ahead further in the US than anyplace else, impelled on especially by the lack and organized quality of talented laborers (Clarke, 1990).

It is contended, however, that for Fordism enormous single financing required. Notwithstanding this, there is susceptibility to breakdowns- if one spot of the plant heads off you need to back everything up. Likewise, transport of raw materials binds you to a particular geological locale else it gets excessively costly. There is additionally less flexibility regarding output.

British Airways

British Airways (BA) is a full administration worldwide airline, with a broad way system flying from its Heathrow and Gatwick centers and additionally to and from numerous territorial and universal landing strips. Since combining with Iberia to structure the IAG bunch, British Airways has turned into the world's third biggest carrier. British Airways is known to focus more on the concept of Scientific Management by Taylor. However, the problem with the Terminal 5, on the day of its launch in March 2008, could have been prevented if the managers had used appropriate concepts of scientific management.

Terminal 5 is a standout amongst the most innovatively progressive airfield terminals on the planet; however Mps portrayed its opening as a "national embarrassment". Throughout the initial five days, BA lost more than 23,000 sacks, crossed out 500 flights and made misfortunes of £16m (Computer Weekly News, 2008).

British Airways administration broke the standards at the exact center of the experimental administration hypothesis all around the arranging and for sure on the day the undertaking was expected for launch. Some staff told news columnists that the issues had been known of for quite a while however the administration decided to disregard them and move ahead with the opening of the terminal without giving genuine regard for the issues. Logical administration is a broadly examined and famous standard in administration and any top administrator particularly one taking a shot at an intricate task like T5 and a multi-billion pound co-operation like BA might have gone over this hypothesis and its significance, so there could be no reason that BA CEO Willie Walsh and those around him didn't know of the hypothesis so consequently couldn't matter. The point when rearranged the operations at an airfield terminal are honestly straight forward: get travelers and their gear good and done with flights effectively and securely. British Airways (BA) finished everything except for that. Had the standards of "Taylorism" been connected the breakdown in correspondence and lack of common sense could have been dodged. On the day a BA agent faulted 'staff acclimation' (Rayner, 2008) with the new framework when inquired as to why they were issues in getting staff screened in for work. Had the administration connected their learning of the hypothesis they could have distinguished these issues and set up together precise courses in which the staff could go about the undertakings, in this way diminishing the measure of perplexity confronted on the day? There are numerous samples of organizations fizzling monetarily or at undertakings, much the same as on account of BA on the grounds that the administration's disappointments to address issues that originate from the precise base of the organizational order. In the event that the administration don't stay in touch with the lesser parts of staff then it gets troublesome to pass messages and guidelines down the pecking request. Disappointment to do this has deplorable outcomes since when issues do emerge there is insufficient time to build that association with get to the way of the issue and discover answers for fix it. The point when there is a great chain of correspondence messages are smoothly passed on from senior administration to staff, as senior administration are the ones who make the sort of choices that experimental administration impacts so they need to assume ownership over their disappointment to execute one of the center standards of administration to such an expansive scale and complex task. However there are a few impairments to consider that may have impacted the senior administration at BA to not utilize exploratory administration, one of these being that it’s not functional when managing aggregations or groups. It was critical that the staff working at Terminal 5 cooperated upon the arrival of the opening however a methodical methodology might not have restricted those alternatives had it been received. Despite the fact that it was a poor choice to not embrace investigative administration there are different methodologies maybe that ought to have been taken a gander at, one of these being Elton Mayo's Human Relations hypothesis. The Human Relations hypothesis concentrates on connections between progressions in an association, specialist fulfillment and gainfulness (Sapru, 2006). It is a generally examined and utilized hypothesis as a part of business practice and training so the probability is that the administration at BA might have been acquainted with this hypothesis. However the precise fundamental standards at the center of the hypothesis were obviously ignored. For instance, specialists were not given far reaching preparing in the gatherings they might have been working with on the day which implied they were then new to both their surroundings and the individuals they were working with. This can halfway clarify why there was a breakdown in correspondence when attempting to go to client grievances and disappointment to demonstrate the misfortunes of gear. Had the laborers been acquainted with one another they might have known the part that others' were completing and additionally the commonality with the individual to have the ability to correspond with them viably? The human relations approach likewise lays a stress on individuals and their inspiration (Pardeep, 2010). In spite of the fact that it was an extensive scale extend and something possibly energizing to be included in, staff was unmistakably not spurred on that specific day. This may be down to the absence of arrangement, with some staff telling the BBC that the occasions on the day were "certain" and they saw it nearing. Some staff ended up unable to get into the building in view of issues with the security screening framework and despite the fact that they knew alternate representatives were fit to go in; they essentially simply went home without endeavoring to attempt and get into the building. This absence of inspiration and absence of confidence in the arrangement that was placed and set up by administration indicated exactly how inadequately socially composed and the deficiencies of control which was the aftereffect of the disappointment to distinguish and execute these key standards. However there is a confinement as to the Human Relations approach's significance to the opening of Terminal 5. The methodology infers that solid specialist connections are a help for expanded gainfulness (Montana and Charnov, 2008) however the framing of such connections is not dependably conceivable preceding individuals cooperating as showed by this case. In spite of the fact that throughout trial runs representatives may have been acquainted with one another, the conditions might not have been the same as it was on the day and the weight might have been distinctive acknowledging the trial runs were essentially trying and any slip-ups wouldn't be expensive however the amassing of these generally little issues advanced to make the calamitous result.

It affirms that there is no all-around material methodology to an administration issue however that the necessities of the specific circumstance focus the best approach to the organizational issue.


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