Management is the way that people come together, as a collective, to perform a task in a cohesive and consistent manner. The objective of the task is to perform each sequence of steps as accurately, effectively and efficiently as possible every time. There are various principles of management that all organizations utilize in many different situations, but there are several disadvantages inherent in these principles.
The Scientific Management approach was developed to help standardize methods of business operations. Through training, employees are assessed by their mental or physical abilities and paired to the appropriate job function with the correct tools to do their job. The disadvantages of this method are that employees begin to feel that they are being treated like a piece of machinery. The creative influence that employees bring to the job is stifled because they are not allowed to perform a task in their own unique way.
The Bureaucratic Organization method is structured so that there is a clear line of authority and a direct hierarchy between personnel within the organization. The method allows for employees to be selected for a job by their abilities. The problem with this method is that the bureaucratic method is inflexible. The system adds several layers of paperwork to the process and sometimes resembles a civil service or governmental organization.
The Human Resource approach is designed so that upper level management’s needs are fulfilled by allowing workers to use their skills to reach their full potential. Wage, job function, training and performance appraisals must align with the company’s business strategy as well as with the self-interest of the employees. The Human Resource approach only works if employees feel that they are being treated well by the company with regard to benefits, pay, reviews, breaks, vacations, bonuses, hiring practices and training. Also, employee satisfaction is derived from informal relationships, how well employees relate to one another and their bosses.
Followers of the Contingency Theory believe there is no one way to manage a business environment. The environment itself impacts the way managers react and how they run the business. Critics of the Contingency Theory state that all situations are unique and that intuition and judgment are the key ways that a manager can make the appropriate business decisions. Prior knowledge and experience cannot help to influence management decision or practices. The theory is atheoretical, meaning that it is virtually impossible to disprove contradictory assumptions against the theory.
McGregor’s Theory presents a contrasting explanation of human behavior in the workplace which is identified as X and Y Theory. Theory X assumes that, in general, people are lazy and will avoid work whenever possible. Theory Y states that people are creative and enjoy working. Theory X assumes that once a need is satisfied, an individual is no longer motivated. Theory Y assumes that an individual's never-ending thirst for self-esteem and self-actualization cannot be fully satisfied.