management theories

Name: Sharman Mohamed Shariff Student ID No.CGS00421017Center of Graduate Studies MPM Intake: May 2009

INDIVIDUAL ASSIGNMENT

Case: Family Feeling Faces Challenges at Smucker’sSource: Certo, Samuel & Trevis (2009) Modern Management 10e, pp. 73-74

Question 2aDoes the human relations movement offer any insights for the co-CEOs as they move ahead with their expansion plans?

Human relations movement refers to those researchers of organizational development

who study the behavior of people in groups, in particular workplace groups. The

Hawthorne Studies could be said as the study that sparked the human relations

movement, where it is a people-oriented approach to management in which the

interaction of people in organizations is studied to judge its impact on organizational

success. The movement viewed workers in term of their psychology and fit with

companies, rather than as interchangeable parts.

The hallmark of human-relation theories is the primacy given to organizations as human

cooperative systems rather than mechanical contraptions.

The ultimate objective of this approach is to enhance organizational success by building

appropriate relationships with people. To put it simply, human relations are said to be

effective when the management is able to stimulate high productivity while at the same

time their workers are committed to the organization’s goal. Human relations skill is

defined as the ability to work with people in such a way that enhances organizational

success.

The human relations movement has made some very important contributions to the

study and practice of management. Advocates of this approach to management have

continually stressed the need to use humane methods in managing people. Abraham

Maslow, perhaps the best-known contributor to the human relations movement,

believed that managers must understand the physiological, safety, social, esteem and

self-actualization needs of organizational members. Douglas McGregor, another

important contributor to the movement, emphasized a management philosophy built

upon the views that people can be self-directed, accept responsibility and consider work

to be as natural as play. As a result of the tireless efforts of theorist such as Maslow and

McGregor, modern managers have a better understanding of the human component in

organizations and how to appropriately work with it to enhance organizational success.

To quote Tim Smucker, “’People’ really embodies what we are all about. Our growth

basic belief is not just about growing the company. It’s about individual growth and the

respect for individual ideas. So as people are involved in the decision-making process

at every level of the organization, they have a sense of satisfaction for contributing to

the growth of the company as a whole and to their individual growth.”

Yes, the co-CEOs of Smucker’s really embraced the human relations movement as they

move ahead with their expansion plan by taking considerations and ideas from their

workforce. They believe that their organization could grow with full participation from the

people that work for Smucker’s. They realize the importance of having their workers

standing behind their decisions and supporting them all the way. They firmly believe

that:

Highest quality people produce the highest quality products and services.

Highest business ethics require the highest personal ethics.

Responsible people produce exceptional results.



Question 2bFrom the perspective of the system approach to management, what potential problems might Smucker’s encounter as a result of having only family members serve as CEOs?

The term "systems" is derived from the Greek word "synistanai," which means "to bring

together or combine." The term has been used for centuries. Components of the

organizational concepts referred to as the "systems approach" has been used to

manage armies and governments for millennia. However, it was not until the Industrial

Revolution of the 19th and 20th centuries that formal recognition of the "systems"

approach to management, philosophy, and science emerged (Whitehead 1925, von

Bertalanffy 1968).

System approach to management is based on the general system theory – the theory

that says that to better understand fully the operation of an entity, the entity must be

viewed as a system. A system is a number of interdependent parts functioning as a

whole for some purpose. General system theory integrates the knowledge of various

specialized fields so that the system as whole can be better understood.

According to von Bertalanffy, there are two basic types of systems; closed system and

open system. Closed system as the name implies, are not influenced by, and do not

interact with their environments. They are mostly mechanical and have predetermined

motions or activities that must be performed irrespective of their environment. The

second type of system, the open system is continually interacting with its environment.

A plant is an example of an open system. Constant interaction with the environment

influences the plant’s state of existence and its future. In fact, the environment

determines whether the plant will live.

Having only family members as CEOs of an organization could be labeled as a closed

system approach to management. The drawback of this system is there is no outside

thinking to consider when making decisions, hence, they will stick with what works so

far. Limiting participation from outside party into the upper echelon of an organization

management hierarchy will only hurt that organization by ‘not keeping with the time’.

Sure, they have absolute control and say about how to run their organization but think

about opportunities and ideas missed for not allowing fresh and new ideas to be heard.

The potential for conflict can be greater than for many other organizations, typically due

to a clash between commercial and emotional concerns. However, such conflict can be

seen as a challenge – or even as a positive drive for change. A dispute between family

members on the strategic direction of the business may result in a much-needed

rethinking of the organization business plan and a new agreed vision for the business.



Question 2cCan Smucker’s top executives learn from the classical approach to management in the context of the company’s five basic values? Explain in detail.

The classical approach to management was the product of the first concentrated effort

to develop a body of management thought. Classical management is the original

‘school’ of management to be developed during the Industrial Revolution. As

businesses were expanding, company owners and managers were looking at hiring in

large numbers of employees, many of them unskilled in the trade. Some method had to

be developed to train all these workers, hence, classical management.

This system of management deals with the task itself. Classical managers seek to

outline exactly how work is done in step-by-step increments. This classical approach

recommends that managers continually strive to increase organizational efficiency in

order to increase production. This is very much a ‘micro-managerial’ style, with the head

of the organization (company, branch, etc.) telling the workers exactly what to do and

how to do it.

Many, however, argue that classical management de humanized the workplace. Rather

than treating workers as individuals, the theory treats them more like machines

designed to complete a particular function. Other theories that developed included

behavioral management, which sought to leave the procedure to the worker. Managers

in this area ask for a particular product, but allow for individuality in the completion of

the project.

In essence, classical theory holds that management is a process consisting of several

related functions, such as planning and organizing. Thus, by identifying specific

business functions – including marketing, finance, production and sub functions within

those and other major categories – companies can efficiently divide an organization into

departments that work as a process. Furthermore, by carefully structuring chains of

authority and responsibility, an entity can successfully facilitate the performance of

individuals within departments to achieve company goals.

Smucker’s strategies and activities have been guided by five basic values; quality,

growth, ethics, independence and people. The company values its people and by

learning from the classical approach to management, their executives will know that by

treating their workforce with respect, their workforce in return will commit to the

company. A well motivated workforce will have it upon themselves the responsibility of

taking care of the organization quality of product, growing together with the company,

maintaining the highest integrity and ethics and enjoying independence of expressing

their ideas to the management.

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