The efficiency and effectiveness of each will be elaborating more in this essay with supporting evidence. Bedrock Winslow Taylor and Henry Payola are two management theorists, developed management philosophies which influence current management practice. Bedrock Winslow Taylor, person who discovered the theory of scientific management. He used scientific theory to improve production efficiency. He found for the ‘one best way of doing work whereby task was divided among workers and based on their performance either they were rewarded or punished (Leslie Gill & Edwina Poi, 2007).
He regarded workers as machines to achieve maximum level of productivity. Scientific management basically determines he changes in management practices as the result of improving labor productivity. Taylor outlined his four principles of scientific management: firstly, where each part of a task and develop rules of motion, standardized work processes and proper working conditions for every Job. For instance, in ANZA Bank, there are proper facilities for employees where they feel comfort in working as a great team.
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Secondly, careful selection and training is provided to a worker and proper incentive is been given for example, in Mobil, when employee achieve his required sales target per shift they are awarded with fifty dollars of fuel voucher which motivates the workers. Moving on, division of work and responsibility which helps employees to plan work and execute accordingly For instance, in Tip Top factory, each staff is specialized in accomplishing task like one staff is Just specialized in packing ice cream only.
He was known as the “Father of scientific management” because he used scientific measurement to improve production efficiency (Leslie Gill & Edwina Poi, 2007). The scientific management theory is “the development of a science to replace the rule of-thumb knowledge of the workmen” which simply means that rule was made and one has to follow strictly (Tarry De Los Rexes, 2014). Most it is highlighted in financial statement analysis as labor costs, concerning matters like the employee’s salary, benefits, training and loans.
It is basically based on micro approach because it is restricted to factory only whereby people specialized in one field only (Management Study guide, 2013). For instance, ANZA Bank, in out payments department, they only process the payments internationally. They will not be able to perform any other core task in the company so they are the expatriates. These principles are restricted to production activities. Their main focus was on the task accomplishment where employees work efficiently to maximize the output. Scientific management provided many momentous contributions to modern management.
The companies procedures needs to initiated to endure the business successful. Some advantages of Tailor’s philosophy are as follows: He stressed efficiency and was known for his search for the ‘one best way to do work. The main aim of Taylor was to improve productivity and to eliminate all types of waste through standardization of work and tools. For instance, in Tip Top factory, cheese cake machine makes ninety cheese cakes in one minute. Moving on, as per Taylor everything is by the book so managers Job become easier. For instance, in Mobil, products are displayed on chillers according Plano-grams.
Going further, some disadvantages of the scientific management theory are which do not recognize value the people side of work and considered them as machines. For instance, in Tip Top factory, employees want and aspiration is not being taken into account because most work is done by machines. Furthermore, comparing performance with others here it discourages the employee because everyone does not have the same IQ level of thinking. For example, in ANZA bank each month they have performance review so each employee has discussion with team leader.
So they always compare the performance where employee gets embarrassed. Henry Payola theory is basically based on the assumption that general principles of management can be applied to any situation or circumstances. Their managerial practices are vital tool for predictability and efficiency in an organization. In administrative theory, communication plays a vital role to make a successful business. He attributed with the fourteen principles for the organizational design and effective administration.
According to Payola, he discovered six primary functions (to plan, to organize, to command or direct, to coordinate, to develop output and to control) of management and fourteen principles of management (division of labor, authority, discipline, unity of command, unity of direction, subordination of individual interest to the general interest, remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative and esprit De corps (Leslie Gill & Edwina Poi, 2007). Payola pays due regards on human element example principles of initiative, Esprit De corps and equity which recognizes a need for human relations.
Initiative is where employees who are allowed to instigate and carry out plans will make use of high levels of effort for example in ANZA bank, some staff from call centre use to go to international payments department to help them with backboards. Moving on, Esprit De corps is basically promoting team spirit which builds harmony and unity within the organizations for instance in ANZA Bank, team building campaign where different apartments get together and organize some interesting trip where it brings team bonding.
Furthermore, equity is where managers should be kind and fair to everyone meaning equal employment opportunities (EYE) at work place (Leslie Gill & Edwina Poi, 2007). In addition, he was known as the “father of management principles” (Leslie Gill & Edwina Poi, 2007). He built personal interpretation on what worked well in terms of organizations (Essays. Com, 2010). Payola believed that that there was a “one best way’ approach to managements what would work no matter what kind of business (Leslie Gill & Edwina Poi, 2007).
Payola believed that their more concern was both work and employees. So basically they address the needs of the people. It has macro approach because serve organization as whole. For instance, in ANZA Bank, whenever they have town hall meeting they take into account of their employee’s transportation where everybody doesn’t have private transport. So they always organize transport which makes convenient for all. This theory generalizes human effectiveness at any work field.
For instance, in ANZA Bank, employees are recognized when they work hard or they go up to extra mile in satisfy customer’s needs. So their hard work always been recognized and they are rewarded with base pay together with movie pass or gift vouchers. Productivity can be measured by the quality of work which is done by each person. This makes easier to measure productivity of each corps (Equalize, 2014). Payola’s theory is more widely used. It extremely deals with management techniques. It has proven to work.
There are some advantages of Payola’s theory where it looks at in management position to ensure success. Managers usually get some vital tools which are needed to expand and manage it more effectively. This theory shows how each individual interact with each other at work field (Mind Tools, 1996-2014). For instance, in ANZA bank, mostly they are two way communications where everyone has to say something about the issues which were raised within the team. It creates strong team bonding among employees and managers.
Moreover, some disadvantages of Falls theory are as follows: firstly, as human we are born to make mistakes. However, when mistakes are made entire of the team gets affected for example in ANZA Bank, when a call centre staff forgets to run the Internet Banking or Fiji, in customers account it will show zero dollars and zero cents and when country gets to know so automatically it becomes the complain, and overall performance for the call centre goes down. The two principles which create disagreement and confusion among employees are initiative and esprit De corps.
Sometimes initiative leads to major loss in the business for example if a staff is given freedom to make wise choice but we know that can be a negative move for a business. Esprit De corps which brings togetherness but sometimes real friends becomes the enemy when there is conversation conflict for instance, if Mobil employees a relative and the pay discussion was made over the phone but when employee gets the pay which was paid which they were agreed to so it conflict arises.
Comparing these two theories with the current management which mainly highlights that every business should run monthly or yearly self review whereby it will help oneself to know where they stand in the business. For instance, in ANZA bank, they have self review each month which help companies to the productivity of an employee. Moving on many companies are centralizing for example recently ANZA Bank centralized. They move all core tasks to Siva Hub, Fiji Islands. Also restructuring can be done to improve the process within the company.
For instance, Tip Top will be bringing in more flavors of ice cream which is still in progress. Mainly Payola’s theory is practiced in modern companies because it focuses both efficiency and effectiveness of employees. In conclusion, both efficiency and effectiveness goes together which makes a business successful. The above essay has defined the difference between the both Tailor’s and Payola’s theories and how it is used in modern world or companies respectively. It gives much scope about running the successful business. REFERENCE LIST Ballad, M. (2011).