Organisation and Management Theory

The Call centres: a case study in people problems in a 'modern' workplace is a case study that demonstrates one of the key theories discussed in the lecture. The key theory that this case study relates to is the Scientific management theory. BT is the main organisation that this case study focuses on. This case study relates to the Scientific management theory because the article states that "Call centres are plagued with high levels of labour turnover with rates averaging 19.3% at agent level and peaking at 37.8% in the food and drink sector" (Barnes, 2004, p.19). High labour turnover is generally a result of businesses that use or follow Scientific management which shows that this case study and Scientific management relate to each other.

Another example from this case study that shows it is related to Scientific management is the rate of absenteeism stated in the case study. According to Barnes (2004, p.19) "the Merchant's Group study in 1998 reported absence levels ranging from 4% to 20% with an average of 14.3%". This is a high absenteeism rate. A high absenteeism rate is also closely linked with Scientific management as it is often a direct result from it. This therefore also shows that this case study relates to Scientific management.

In addition, a further example that shows that this case study and Scientific management are related is the way in which workers view their job role and work. For example, Barnes (2004, p.20) states that most call centre jobs are " 'impoverished' being 'routine', 'boring' and lacking in 'variety' ". This relates to Scientific management because businesses that use Scientific management generally create jobs that are boring, routine and lacking in variety as stated by Barnes.

Furthermore, another example that shows that this case study and Scientific management are related is the way in which the workers view the general Management style in call centres. For example, Barnes (2004, p.20) points out that "the grievances among BT call centre staff included that of a "bullying management style". This relates to Scientific management because in businesses that use Scientific management, Managers make all the decisions. As a result, workers have very little input in the decision making process if at all. To some workers, this may be seen as a "bullying management style" because the workers have very little power in businesses that use Scientific management.

The Motivation within a creative environment is a case study that demonstrates one of the schools discussed in the lecture. The key school that this case study relates to is the Human Relations school. Siemans is the main company that this case study focuses on. This case study relates to the Human Relations School because Siemans use Maslow's hierarchy of needs theory in attempting to motivate their staff. For example, the study states that "Siemans provides the opportunity for employees to fulfil their higher order needs" [Anon 3.] [n.d.] of the hierarchy. This shows that Maslow's hierarchy of needs relates to Siemans because the company allow opportunities for the employees to fulfill the higher order needs in the hierarchy. The "higher order needs" that the case study is referring to are the Self-fulfilment needs and Self-actualisation needs. According to the case study, Siemans fulfil the Self-esteem needs of their workers by running schemes "in which suggestions and projects for improvements are rewarded" [Anon 3.] [n.d.]. This could be financial rewards, as part of a team or individually, or recognition by peers / management for their achievement/s. This shows that this case study relates to Maslow's hierarchy of needs (and therefore the Human Relations School) because Siemans use financial and non financial rewards (recognition) in trying to fulfil the Self-esteem needs of the workers.

The case study maintains that Siemans fulfil the Self-actualisation needs of the workers by offering engineering staff training and development opportunities. This meets the Self-actualisation needs of the workers because it "helps engineers to extend their capabilities which may lead to a progression up the career ladder" and "helps individuals to meet the changing demands of the business' global markets" [Anon 3.] [n.d.]. This relates to Maslow's hierarchy of needs (and therefore the Human Relations School) because Siemans are attempting to fulfil the Self-actualisation needs of the workers by training engineering staff and offering them development opportunities.

BT and Siemans are vastly different organisations in terms of organisation and management theory because both businesses use and apply different organisation and management theories. For example, BT use Scientific management and Siemans use Maslow's hierarchy of needs primarily. This difference between the two organisations is most evident in the way that workers get feedback from their managers. At BT, the workers get very little feedback from their managers regarding performance, a typical trait of Scientific management. However, Siemans not only give feedback to their workers from their managers, they also run schemes "in which suggestions and projects for improvements are rewarded" [Anon 3.] [n.d.]. This is a huge difference between the two organisations. This is because Siemans give basic feedback to their employees but also encourage the employees to give feedback to their manager/s of how they can improve their performance, rewarding them accordingly.

Another big difference between BT and Siemans is in terms of the employee's power and responsibility. Worker's at BT refer to the management style as a "bullying management style" which is the opposite of what the worker's at Siemans view their management style as. This is because the workers at Siemans are empowered with greater responsibility which allows them to make decisions they couldn't have made before. The workers at BT however are not given such empowerment and have to take direct orders from their respective Managers. This is why the BT workers refer to their Management style as a "bullying Management style".

Additionally, another difference between BT and Siemans is in the way that both companies encourage change. Since BT use Scientific management, they believe that the way in which they run their company is the best and most efficient way of running their business. Siemans however encourage change if it means solving problems that the employees are facing currently. For example, BT workers refer to their job's as " 'impoverished' being 'routine', 'boring' and lacking in 'variety' " (Barnes, 2004). The boring nature of the worker's jobs at BT could be attributable to the fact that BT don't encourage change, unlike Siemans. This is therefore a big difference between the two business's.

Advantages of Scientific management:

1. Their are job opportunities for uneducated people provided they are efficient workers.

2. Discrimination is avoided as the most efficient workers are kept regardless of age/sex/race.

3. The most efficient workers are kept which may help boost the sales revenue and therefore profits of a business.

4. Scientific management encourages motivation because efficient workers are rewarded financially. Workers that are motivated are more likely to stay in the business keeping the labour turnover rate down.

5. As the efficient workers are kept, their is a significantly lower chance that time will be wasted. In business, time is money. [Anon 1.] [n.d.]

Disadvantages of scientific management:

1. Scientific management doesn't take into account that some workers may not be motivated purely by money.

2. Work using scientific management is generally repetitive and boring for the worker. This may result in de-motivation which may effect the productivity / efficiency of the worker.

3. The work environment may be hostile because of the competitive nature of scientific management.

4. Scientific management doesn't encourage feedback from the worker's so it may be difficult for the manager's to identify if the worker's are being motivated or not. [Anon 2.] [n.d.]

5. Tasks can be difficult to identify using Scientific management.

The main finding from this topic that was discovered was identifying the impact that applying a certain organisation and management theory can have on any business. This information was found from the case studies that were selected in this blog.

Another finding from this topic that was discovered are the advantages and disadvantages of Scientific management. This information will be useful to me in the future when I start to seek employment because of its relevance in the world of work. I enjoyed this topic because not only did I learn information on an unfamiliar topic, it will prove to be useful in the future.

References:

[Anon 1.] [n.d.] What are the Advantages of Scientific Management in Business? [online]. [s.n.] Available from: http://dailyojo.com/articles/what-are-the-advantages-of-scientific-management-in-business.html [Accessed 10 December 2009].

[Anon 2.] [n.d.] Frederick Taylor and Scientific Management. [online]. [s.n.] Available from: http://www.netmba.com/mgmt/scientific/ [Accessed 11 December 2009].

[Anon. 3] [n.d.] Motivation within a creative environment [online]. [s.n.] Available from: http://www.thetimes100.co.uk/case-study--motivation-within-creative-environment--89-376-4.php [Accessed 12 December 2009].

Barnes, P. (2004) Call centres: a case study in people problems in a 'modern' workplace.ACCA Students' Newsletter. 1 (1), 19-21

Henri Fayol image. Available from: http://1.bp.blogspot.com/_mAzw4rFPvDQ/SdqV9Y1jagI/AAAAAAAAANY/cMwyhiI0vmc/s400/teoria+fayol_clip_image002.jpg [Accessed 18 November 2009].