Explain how the organisational theory underpins the practice of management.
Organisational theory is very important because when applied in practice it can influence the overall performance of organisations. It is a sociological study of formal organisations and their interrelationship with the environment in which they are operating. The study of organisational structure and culture; the different organisational theories and approaches to management; the different leadership styles and motivational theories – all of them have been developed over the past few centuries and they are still changing and upgrading so that managers can clearly understand their role in the organisation and to be ...view middle of the document...
His work named “The Principles of Scientific Management” was published in 1911. Taylor's scientific management theory outlines the following principles:
* Development of scientific knowledge in the field of management
* Ensuring the application of scientific knowledge in the practical activities of scientific
* There should be a physical division of work between workers on the one hand and management on the other. All actions of the employee are combined with appropriate management actions.
* Scientific selection and training of each worker;
* In depth study of each element of the employee’s work;
* Specialisation of labour;
* Proper selection, distribution and development of staff
* Planning and scheduling of work;
* Setting proper incentives for high-quality and fast work. Taylor proves that high wage provides cheap products. Therefore, he advises to establish fair and reasonable minimum level of work, and then to develop a system to encourage and reward those who work more than the accepted minimum level of performance.
Although it is an old classical theory, Taylor’s approach is still applicable in modern practice. For example in most of the UK farms that are growing soft fruits there are pickers and packers working. They all know that there are minimum requirements for quantity and quality they should meet. They are also aware of the fixed price per tray for example, and they know that the quicker and better they perform, the higher their reward will be.
Another classical management theorist is Henry Gantt. Gantt’s approach to management is based on how work is organised and scheduled. It emphasises on the use of resources and time when evaluating projects. Gantt’s management theory incorporates the record of the work that has been done, balanced with the work that still needs to be...