Elective Module of Strategic Human Resource Management

Question: Describe the strength and weaknesses of the Henri Fayol's 14 principles and Fredrick Taylor's scientific theory on Management? Answer: Introduction Human Resource Management is defined as a function in an organization which has been designed for maximizing the performance levels of employees in accordance with the strategic objectives of the employer. The primary concern of an HR is the way people are managed inside an organization with a focus on its policies and systems. The HR departments as well as units inside an organization are basically responsible for a vast range of activities which includes employee recruitment, training and development, performance appraisal, rewards and recognition, etc. The set of HR activities also comprises of industrial relations which balances the organizational practices by use of regulations which arises from collective bargaining and the governmental laws. The following paper discusses two well-known theories on HRM. The two theories discussed below are: Henri Fayols 14 principles of management The 14 principles of management coined by Henri Fayol is regarded as one of the earliest theories on management which has remained relevant till date. He has been considered to be among the most influential contributors in the modern concept of management. These principles have a significant influence on modern management theory which has helped the current day managers to learn the ways of organizing and interacting with the employees in a productive manner (ESF 2001). The 14 principles proposed by Fayol can be summarized as below: 1. Division of Work: As per the theory, Fayol believes that when employees are specialized the output can increase as they are expected to increase in terms of skills and become far more efficient. Specialization seems to be the need of the hour as global organizations of today are more inclined to recruit individuals who are professionals and specialize in key areas. 2. Authority: He believes that managers need to have the authority for giving orders, however, they must keep in mind that authority would come with responsibility. The theory is further extended to accountability. Fayol advocated that a manager who is provided with authority needs to be given the same degree of responsibility and hence accountability (Leli Bellio 2010). 3. Discipline: There can be a variety of ways for maintaining disciplines in an organization but in any scenario it needs to be upheld. This by far is one of the key elements which global organizations of today like to adopt in order to offer effective and efficient services. 4. Unity of Command: Employees should always have a single direct supervisor. This is pretty important as different supervisors for a same set of activities would lead to confusions and hence delays in operations. 5. Unity of Direction: Teams having the same objective needs to work under the direction of a single manager using a single plan. It would ensure that action gets coordinated in a proper manner. A collective effort in todays environment is what makes an organization carry out big tasks in matter o minutes or may be days (CESC n.d.). 6. Subordination of individual interests to general interest: Interests of a single employee needs should not be allowed in becoming more important than the ones in the group. It includes the managers as well. If the importance any process goes more inclined in addressing individual interest it might affect the entire group at large. 7. Remuneration: The satisfaction of the employees is largely dependent on the fair remuneration offered. It includes financial as well as non-financial compensations. In order to ensure that there is low employee turnover, organizations need to be fair when it comes to offering compensation relevant to the tasks assigned to different individuals (Amy Hisson 2009). 8. Centralization: It is a principle which proposes the ways in which it determines the closeness of employees towards the decision making process. It is very important for aiming at the right balance for both the organization and the employees. 9. Scalar Chain: Here Henri proposes that employees need to be aware of the position they stand within the organization along with the chain of command relevant to their positions. It is very relevant in todays work environment as it ensures there is no delays and right information flow is substantiated (Amy Hisson 2009). 10 Order: Organizations should offer a clean, tidy and a safer place for work for the employees. Employees are encouraged and motivated when the organization cares for their needs and requirements. 11. Equity: Managers need to be fair at all times. It should be applicable in both maintenance of discipline and acting with kindness where required. There have been consistent cases which have been reported where seniors have favored certain teams or management. 12. Stability in Tenure of Personnel: Managers need to strive and minimize the employee turnover rate. There needs to be a priority in personnel planning. Organizations invest huge when it comes to recruitment, training and development of personnel. A stability in tenure would ensure that the costs are minimized and efficiency is increased (IPA n.d.). 13. Initiative: Henri believes that employees need to be given the right level of freedom for creating and carrying out plans. Each member of the organization has some idea or the other. With a flexibility to exercise their minds and come up with possible solutions, it would increase employee commitments and motivate them to work better. 14. Esprit de Corps: He proposes that organizations need to make efforts to promote team spirits and unity. This can be done by meeting their expectations when it comes to comfortable work environment, incentives, or rewards and recognition policies of the organizations. Further he proposes 6 different management functions which are: Forecasting Planning Organizing Commanding Coordinating Controlling Fredrick Taylors scientific theory on management The second theory which has been discussed here is of Fredrick Taylor scientific theory on management. This theory has been also among the widely debated and practiced theories which results in cooperation among the workers and the managers. It has actually developed into teamwork which is enjoyed today (National Humanities Center n.d.). Although, it is not in practice widely today, the scientific management offers significant contributions for advancement of management practices. The theory had introduced systematic selection as well as training procedures. It eventually provided a way for studying the workplace efficiency and encouraged the idea of systematic organizational design. It largely comprises of 4 principles which are summarized as follows: 1. He proposes to replace working by a rule of thumb or a simple habit and a common sense. Taylor believes that scientific methods of studies need to be used for determining the most efficient ways of performing specific tasks (Abahe n.d.). 2. Instead of simply assigning workers for doing just any kind of job, management needs to match workers to jobs with respect to their capabilities and motivation levels. It should be backed by training them for working to the maximum efficiency possible. 3. Managers should monitor worker performance and offer instructions as well as supervisions for ensuring that they have the most efficient ways of working. 4. Management has the responsibility of allocating work among managers as well as workers for spending their time planning as well as training. This would allow the workers to perform their tasks more effectively and efficiently (Saylor 2011). The above pillars as framed by Taylor are same for all and is a defined set of principles which offers a guideline in a way which an organization needs to function. Although, a perfect implementation would lead to drastic results, there is a case of other uncontrollable factors which might come in between. Hence, using the entire principles and making sure they run a designed manner is very difficult in a volatile and evolving environment of today (Cassie Memorial 2012). Strengths and weaknesses of the above two theories This section looks at the different strengths as well as weaknesses of both the theories and looks at the possible advantages or disadvantages they offer. Strengths and Weaknesses of Henri Fayols theory Fayols principles are in relevance today and a leaf out of his theories and principles can be used for increasing the efficiency levels. Some of the important strengths which advocates the use of such theories and application are listed below: Strengths 1. 21st Century relevance: Fayols principles are easily applicable to the 21st century workplace. Although, the aspect of technology and globalization has accelerated rate of change and creates uncertainties and lesser stability, the values forming the basis of Fayols principles stabilizes the force in any modern workforce. The hierarchical structure proposed by Fayol is very much relevant in manufacturing organizations of today (Webs 2012). 2. Evolving work environment: There seems to be a shift in terms of economy of most of the developed nations from manufacturing to service or knowledge based. This has led to a stretch of some of the key points proposed by Fayol. Todays managers who are given the authority are known to empower their employees to a much greater degree and allot diverse responsibilities. The third point of 14 principles of Fayol which discusses about discipline is still in relevance but has become far more informal in most of the work environments. Thus working towards a common goal and subordinating individuals towards a general interest has been unchanged for over a 100 years now (MSME Mon n.d.). 3. Acceptance levels at workplaces: With evolved work environments the ideas which had made managers think a few decades ago are accepted today without a second thought. The points of keeping the workers informed about their position within the organization, keeping a clean workplace, fairer management, minimization of employee turnover, offering freedom to employees, etc. are very important in todays work contexts. The aspect of fair pay which is 7th principle is very important when it comes to motivating the workforce to carry out dedicated activities. Weaknesses When it comes to weaknesses, the principles have their own set of drawbacks which need to be a concern for the organizations of today. 1. Lack of attention to several issues: Fayol has described structure of formal organizations but his theory lacks attention on issues like individual versus general interest, remunerations and equity. This suggests that as per Fayol an employer was a paternalistic character and needed to work towards only employee interest. 2. No mention of issues related to sensitivity: There is no mention of issues related to sensitivity of employee needs like initiative or spirit de corps. As per his views it was issues in context of rational organizational structures and not as per the adapting structures of changing behavior of people for achieving the best results. 3. Incompatibility to the evolving work environment: Many of the principles are adopted and utilized in todays work environment, but many have not been designed for coping up with conditions of rapid change and issues related to employee participation which is a part of the decision making process of any organization. 4. Directed towards team leaders role: As per the unity of direction principle, Fayol says that an entire team when working under the direction of a single supervisor would be able to deliver the best results without any kind of communication breakdown in the entire team. For example, it is very important for a music industry or an event management industry where everyone who are working as a part of the event would be aware of the specific roles they have in regards to the event (Management Mania n.d.). Strengths and Weaknesses of Fredrick Taylors scientific theory Strengths Scientific theories offer a robust guideline to make sure things are as required. The strengths below justify the use of the theory for managements. 1. 1st of its kind: Scientific management was one of its fist kinds in formal divisions among workers and managers. It offers a robust guideline for creating formal divisions in different kind of organizations (IJBSS NET 2011). 2. Effective production methods: The theory contributes towards efficient production methods which leads towards major increase in living standards. 3. Focus: The focus of implementing such theories is on individual tasks and worker levels which in turn increases efficiency (Chapman 2011). 4. Better Remuneration policies: The theory proposes better and direct reward mechanisms for workers instead of complex yearend profit sharing schemes. 5. Improves efficiency levels: The scientific theory believes in having things well-placed and in a systematic manner. If implemented it would reduce wastages of any form and in the end increase the efficiency levels. 6. Control and measurement: Scientific theory of management calls for robust control and measurement policies in place. With it being practiced within the organization, it would mean that there is very less possibility of the firm from diverging from its proposed strategies (ENGR n.d.). Owing to several factors which are uncontrollable, there are several drawbacks which the theory by Taylor comes with. Some of the important weaknesses have been discussed below: 1. Can be abused: Tayolors scientific principles are pretty easy to be abused and be exploited by humans. It also is known to conflict with believes and policies of labor unions. 2. Not applicable for teams: The entire policies which serve as a pillar for the theory proposed are not applicable when used for groups or teams. 3. Limited role of individuals: Being a concrete one-dimensional strategy which is focused in a straight object oriented line, there is virtually no room for individual preferences or initiatives (Ohio n.d.). 4. Too much emphasis for measuring: A lot of time as per the theory needs to be devoted to measure the results. It at times seems to suggest that there is overemphasis on measuring and lacks attention over the soft factors. 5. Too much scientific: The theories point towards mechanistic domain which tends to treat people as machines at times. 6. Separated planning and executed function: Scientific school of management is often criticized for separating planning function and its execution. 7. Skill and autonomy: Taylors theory reflects a loss of skills and autonomy at worker level. It is highly not relevant in todays knowledge worker environments (Unisa 2012). Taylor vs. Fayol principles Both Tayolor and Fayol have contributed their bit and offered a range of important management theories which help in managing HRM strategies and the work strategies. Although, they are a bit different in terms of their approach and theories, there are certain similarities which both these theories have. Some of the similarities can be summarized as below: 1. Both these theories are built by basing them on universality of management. Their theories tend to be fixed and same for all which is not too suited for dynamic and evolving business environment of today. 2. The theories are applied using scientific methods for all kinds of problems related to the management. 3. Fayol and Taylor both had stressed upon the importance of personnel and their management at each level. 4. The primary belief of both these theorists was to improve management practices. They intended to increase effectiveness and efficiency levels within the organization. 5. The theories are largely focused around improvement of working environments and the management practices. 6. Taylor developed his ideas by basing it on the practical experience he had during his service life. Fayol was also working as an employee while he framed up his theories and compiled them into possible solutions. 7. Their ideas have been published and represented by way of books. 8. There was a stress towards mutual co-operation among the employers and employees in both the theories (Employment Studies 2012). The different areas of dissimilarities which were evident in comparison for both the theories are: 1. The emphasis Taylor put was on problems of the shop floor while the concentration of Fayol was over the functions of managers at the top level. 2. The approach Taylor adopted was from the bottom of the industrial hierarchy while focus of Fayol was focused around chief executives and worked in a downwards direction. 3. The basic aim of Taylor was enhancing productivity of labor and eliminating wastages. On the contrary the focus of Fayol was on developing a universal theory of management. 4. Scientific management is what was the term which Taylor named his philosophy of work. Fayol on the other hand named his theories as General Theory of Administration. 5. Taylor today is referred to as the father of scientific management, Fayol on the other hand is said to be the father of principles of management. 6. The philosophy of Taylor has undergone a huge change under the impacts of modern developments. On the contrary, Fayols principles have stood the time and been accepted in large proportions today as well. 7. The degree of importance Fayol gives to management is much wider when compared to Taylor (Unisa 2012). Conclusion After evaluating the above two theories it becomes evident that these theories have been based on a lot of research and afterthought. Both Taylor and Fayol put forward very relevant points which are integral element of any management of todays world. However, owing to time and the dynamic situation of business across the world, some of them are irrelevant today. There is a significant difference when it comes to believers of each theorist, but both of them have framed their principles in an attempt of increasing efficiency levels within the organization. More research as well as modifications to these theories would enhance their applicability. However, one may conclude that these theories provide the basis for easier understand as what are the basic principles on which management of any scale work on. The size and the strength of operation might be small or large, but these theories are very relevant when it comes to management at different levels. References 1. ESF 2001, Fayols 14 principles of management, then and now, accessed on 19th January 2015, https://www.esf.edu/for/germain/rodriques_2_14.pdf 2. Leli Bellio 2010, Henri Fayol the man who designed modern management, accessed on 19th January 2015, https://lelibellio.com/wp-content/uploads/2013/02/vol.-5-n%C2%B0-4-Pages-13-%C3%A0-20-Holmblad-Brunsson-K.-2009-2010-Henri-Fayol.pdf 3. CESC, The general management principles as summarized by Fayol, accessed on 19th January 2015, https://www.cesc.co.in/cesc/e-prognya/cms/wp-content/uploads/14_Princioles.pdf 4. Amy Hisson 2009, Management and Culture, accessed on 19th January 2015, https://www.amyhissom.com/MyWritings/Management.pdf 5. Cerritos, Principles of Management, accessed on 19th January 2015, https://cms.cerritos.edu/uploads/jramos/BA115%20Carpenter/Carpenter%20PPT%20Chapter%2003%20Fill-In.pdf 6. IPA, Management from the Top: Henri Fayol, accessed on 19th January 2015, https://www.ipa.ie/pdf/Management_from_the_top_henri_fayol_Barrington.pdf 7. Webs 2012, INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS, accessed on 19th January 2015, https://www.journal-archieves14.webs.com/367-379.pdf 8. MSME Mon, From where Henri Fayol got the idea of 14 principles of Management, accessed on 19th January 2015, https://msmemon.webs.com/notes/14-principles-of-management.pdf 9. Management Mania, Henri Fayol, accessed on 19th January 2015, https://managementmania.com/en/henri-fayol.pdf 10. Employment Studies 2012, Thinkers for the 21st century?, accessed on 19th January 2015, https://www.employment-studies.co.uk/pdflibrary/a_tj0305.pdf 11. National Humanities Center, The Principles of Scientific Management, accessed on 19th January 2015, https://nationalhumanitiescenter.org/pds/gilded/progress/text3/taylor.pdf 12. Abahe, Frederick Taylor and Scientific Management, accessed on 19th January 2015, https://www.abahe.co.uk/Free-En-Resources/Theories-of-Management/Frederick-Taylor-and-Scientific-Management.pdf 13. Saylor 2011, Frederick W. Taylor: The Principles of Scientific Management, accessed on 19th January 2015, https://www.saylor.org/site/wp-content/uploads/2011/08/HIST363-7.1.3-Frederick-W-Taylor.pdf 14. Cassie Memorial 2012, Principles of Scientific Management and the Multiple Frames for Viewing Work Organizations, accessed on 19th January 2015, https://www.cassie-memorial.org/sjuweb/Coursework%20Web/EDU%205571/PDF/Taylor/Taylor%20Essay.pdf 15. IJBSS NET 2011, One Hundred Years Later: What Would Frederick W. Taylor Say?, accessed on 19th January 2015, https://ijbssnet.com/journals/Vol_2_No_20_November_2011/2.pdf 16. Chapman 2011, Journal of Business and Management, accessed on 19th January 2015, https://www.chapman.edu/business/_files/journals-and-essays/jbm-editions/jmb-vol-17-01.pdf 17. ENGR, Management Theories, Roles, motivations, and communication, accessed on 19th January 2015, https://www.engr.sjsu.edu/epeterson/Avia179/docs/Chap3.pdf 18. Ohio, Peter Drucker, MBO, and the Corporatist Critique of Scientific Management, accessed on 19th January 2015, https://ohiostatepress.org/Books/Complete%20PDFs/Nelson%20Mental/10.pdf 19. Unisa 2012, Frederick Taylor as a Contributor to Public Administration, accessed on 19th January 2015, https://uir.unisa.ac.za/bitstream/handle/10500/8584/Myrick_Taylor%20Article.pdf?sequence=1 20. Tip Lady, An overview of twentieth-century management theories, accessed on 19th January 2015, https://www.tiplady.org.uk/pdfs/managementtheories.pdf