ASB 2104 Principles of Organisation and Management Essay

ASB 2104 Principles of Organisation and Management - Essay Example The discussion explains some prominent management theories, their similarities and dissimilarities and their present day relevance. The classical theory of management is the oldest and the most widely accepted school of management. The classical theory was propounded and practiced extensively between 1885 and 1940. The genesis of the theory can be traced back to the Industrial Revolution that necessitated the need for systematic and logical methods to manage organizations. Many factories were set up during the Industrial Revolution because of which the need for proficient planning, organizing, and controlling the activities of workers arose. The classical theory of management evolved with a view to enhance the worker-level productivity and that of the entire organization. The classical theory of management consists of two major schools: There were many contributors to the theory of scientific management. However, the most prominent work in this sphere was that of Frederick W. Taylor who is regarded as the father of scientific management. Taylor, who worked at the Midvale Steel Company, felt a pressing need to cut costs, analyze work methods and develop labor and management co-operation. On the basis of his time studies, Taylor recommended a differential piecework plan wherein workers were paid higher wage rates for above standard performance and low wage rates for below standard performance. The concept of minimum basic wage rates can also be attributed to Taylor’s works, for till that point of time, there was no guarantee of minimum wages to workers. The contribution of Henri Fayol forms the backbone of the theory of general administration. Fayol termed planning, organizing, commanding, coordinating and controlling as the basic functions of management. According to the author, all activities in industrial projects could be classified into six broad categories: technical, commercial, financial, security, accounting and managerial. Additionally, Henri