Leadership and management theories

Usages of organisational theories are very common and essential in every company. The management practices are groomed and developed on the basis of a particular effective and suitable organisational theory. Broadly the organisational theories are divided into three different classes: classical, neo-classical, and modern organisational theories. In the case of educational organisation or small business Enterprise, requires the scientific management. Scientific management theory was coined by the famous author Frederick Winslow Taylor, and hence the practice is also known as Taylorism. Scientific management theory has been practised by a number of modern age organisations, in order to modify their management style according to the changing environment. The primary idea of the management style and management theory at Educational organisation  is to enable the working environment more standardised than before. The processes have been standardised in order to simplify and specialise the departments, which are given their objective to achieve and to offer efficiency at their fields.

Scientific management has been inserted into the management style at City College keeping the long term sustainability in mind. The new owner and the revived ownership and management style demanded a better and accountable way of performance. Hence various departments like Teaching Department, Human Resource Department, and Administration Department are given their tasks to complete with a predefined departmental objective and goal.  In the case of Enterprise Rent-A-Car, the scientific management theory has been put into practice extensively. The management practise at Small business Enterprise is primary supported by the mutual faith and trust between the employees and the management. The management style has been in practice form a very long period of time, with continuous effort from the founder Mr Jack Taylor and the legacy has been forwarded by his following generation leaders. Small business Enterprise has devised better approach of workflow in the organisation system, and related processes have gained focus in the company, influenced by the scientific management theory. The car hiring company has practised the scientific management theory right from its recruitment process. The leadership qualities are searched in the new recruits, which enable the safety and continuity of the future leadership guaranteed. People at Enterprise are motivated and given chance to participate in the decision making process. The involvement in turn enables the increase in attention and commitment towards the overall organisational objective

In this case, the two organisations are following the Classical management approach. Classical approach has been practised by a number of firms historically. The late 19th century has laid down the foundation of Classical management approach, which has two sub categories of approach – scientific approach and general administrative approach. Although the two organisations in the case study are following the classical way of management, Small business Enterprise follows a mix of scientific approach and general administrative approach. In case of Educational organisation , the organisation demands to be more tasks oriented and hence the management approach is more scientific, and the departments are given their required tasks to follow in stringent requirements. Right from its constructive days, Small business Enterprise has developed a structure and culture that gives confidence to the middle to lower level employees to have a better communication with the senior management. This process and approach help in taking several decisions for the business in effective manner. The autonomy provided to the separate departments is the main reason of organisational success. Every General Managers in the company are given power to make their own decisions; they are in charge of their own territory and their decision cover the functionality of an entire region. Company has also empowered the Branch Managers, who are given with the power to formulate and deliver the value to the customers; thus the trend of providing good customer service has been ensured in local level