When you think of classical theory of management, what are your first thoughts? After reading about the theories of Fredrick Taylor, Henri Fayol, and Max Weber, what came to my mind was the classic management of my employer, Verizon Wireless. As well as how Verizon Wireless compares to other companies, such as Home Depot.
To get a clear understanding of what classical management is, classical management approaches share the underlying metaphors of organizations as efficient machines (Eisenberg, Goodall, & Trethewey, 2010, pg. 61). Classical Theory of Management is a division of labor and hierarchy.
The main question is whether or not classic management is a viable business model. In my opinion, from working at a place of employment that uses classic management, it is a beneficial business model because it not only keeps a business running smoothly, but it also brings in revenue to the business.
Verizon Wireless is the number one wireless telecommunication company in the world that focuses on excellent customer service. Verizon Wireless has millions of employees in their warehouses, retail stores, and call centers all around the world. Of course, just like every company, Verizon Wireless chain of command starts with a CEO. Under the CEO, you have the Vice Presidents, after the Vice Presidents, you have individuals who are in charge of the warehouse, retail stores, and call centers. Today, I will take the time to focus on Verizon Wireless call centers.
Frederick Taylor believed management is a true science resting on clearly defined laws, rules, and principles (Eisenberg, Goodall, & Trethewey, 2010, pg. 65). In Verizon Wireless call center, the center’s directors relay changes to the assistant directors, while the assistant directors relay information to the supervisors. Then, the supervisors relay the information to the employees on their team. Scientific management created a firm division between managers, who plans and controls, and employees, who implement the plans (Eisenberg, Goodall, & Trethewey, 2010, pg. 65). In the article, Renovating Home Depot, CEO Bob Nardelli is described to believe that major decisions and goals should flow from his office (Bloomberg, 2006). Scientific management is very important in Home Depot because Nardelli believes business depends on leaders.
While Fredrick Taylor has his personal beliefs, Henri Fayol believes in the five elements of classical management: planning, organizing, goal setting, coordinating, and controlling (Eisenberg, Goodall, & Trethewey, 2010, pg. 68). Verizon Wireless call centers uses coaching to build positive employee morale and improve customer’s experiences. Coaching is when the supervisor and their employee sit together and analysis a previous call with a Verizon Wireless customer. After listening to the call, the supervisor and the employee then focus on ways to improve at one’s job and gain advancement to a certain situation. Just like Verizon Wireless, Home Depot also uses performance metrics to ensure their customers are meeting the needs of their company (Bloomberg, 2006).
Max Weber is a strong advocate for equal treatment according to ability (Eisenberg, Goodall, & Trethewey, 2010, pg. 70). Verizon Wireless call centers hires human beings with or without disabilities. I have many co-workers who are vision impaired, but they are accommodated, therefore they can perform their job to the fullest.
In my opinion, classical theory of management is a perfect model for Verizon Wireless. With the classic management, Verizon Wireless often sets the bar high for not only the employees, but also the customers. With this model, the customers are assured that they are the most important part of Verizon Wireless. The pros of this approach is increased revenue and job security. While the cons of this of this approach is employees feeling responsible when customers are not satisfied.
As stated before, with classical theory of management, customer expectations are set at an all-time high. With customer expectations being at a high, business increases, which means revenue increases. What are your thoughts on how classical theory of management is improving today’s businesses?
Bloomberg Business Week. (2006, March 6). Renovating Home Depot. Retrieved from http://www.bloomberg.com/news/articles/2006-03-05/renovating-home-depot
Eisenberg, E.M., Goodall, H.L., Jr., & Trethewey, A. (2010). Organizational communication: Balancing creativity and constraint (6th Edition). Boston: Bedford/St. Martin’s.