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Classical Management Theory: 1) The Different Management Theories

The document discusses the evolution of management theories from classical to modern approaches. Classical theories focused on operations and compensation, while scientific management emphasized incentivizing performance. Administrative theory examined all business activities. Behavioral theories incorporated human and social elements. Modern theories seek to navigate constant change using metrics and cross-functional cooperation. Henri Fayol's 14 principles also guided management, focusing on discipline, unity, and employee motivation and security. Management theories help organizations focus, communicate, and evolve by outlining priorities and allowing for efficient interactions.

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111 views

Classical Management Theory: 1) The Different Management Theories

The document discusses the evolution of management theories from classical to modern approaches. Classical theories focused on operations and compensation, while scientific management emphasized incentivizing performance. Administrative theory examined all business activities. Behavioral theories incorporated human and social elements. Modern theories seek to navigate constant change using metrics and cross-functional cooperation. Henri Fayol's 14 principles also guided management, focusing on discipline, unity, and employee motivation and security. Management theories help organizations focus, communicate, and evolve by outlining priorities and allowing for efficient interactions.

Uploaded by

navi jae
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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1) The Different Management Theories

Classical Management Theory


Classical Management Theory is the oldest management theory. Classical Management Theory focuses
on operations and the creation of standards to increase production output. In Classical Management
Theory, compensation is considered the primary motivation for employees. A manager practicing
Classical Management Theory would be focused on improving output and rewarding high-performing
employees through wages or bonuses.

a) Scientific Management Theory


Scientific Management Theory is a very early management theory focused on minimizing waste and
reducing production times. It was developed by Frederick Taylor, who attempted using a scientific
approach for improving operations. Taylor’s theory emphasizes incentivizing employee performance and
reducing “hit and trial” practices.

b) Administrative Management Theory


Administrative Management Theory was developed by Henri Fayol, who is considered to be a founder of
management theory. This theory considers all of the many activities that a business must conduct.
Management is considered a primary business activity and this theory provides detailed guidelines for
managers.

c) Bureaucracy Theory
Bureaucracy Theory promotes reason to guide management decisions, rather than charisma or nepotism.
Developed by sociologist Max Weber, this theory emphasizes formal authority systems. Unity and the
authority of organizational hierarchies are central to Bureaucracy Theory.

Behavioral Management Theory


Increasingly complex industries and organizations gave rise to more human interests in the workplace.
Management theories began to include more people-oriented methods. Human behavior and satisfying
the interpersonal needs of employees became more central to management. A manager practicing
Behavioral Management Theory might motivate teamwork through fostering a collaborative atmosphere.

a) Human Relations Theory


Human Relations Theory considers the organization as a social entity. This theory recognizes that money
alone is not enough to satisfy employees. Morale is considered to be integral to employee performance.
The major weakness of this theory is that it makes several assumptions about behavior.

b) Behavioral Science Theory


Behavioral Science Theory combines elements of psychology, sociology, and anthropology to provide a
scientific basis. It examines why employees are motivated by specific factors, such as social needs,
conflicts and self-actualization. This theory recognizes individuality and the need for managers to be
sociable.
Modern Management Theory
Modern organizations must navigate constant change and exponential complexities. Technology is an
element that can change and upend businesses very rapidly. Modern Management Theory seeks to
incorporate these elements with human and traditional theories. A manager practicing Modern
Management Theory might use statistics to measure performance and encourage cross-functional
cooperation.

a) Quantitative Theory
Quantitative Theory arose out of the need for managerial efficiency during World War II. It was developed
using experts from multiple scientific disciplines to solve the issues around integrating systems of people,
materials and systems. This theory was developed primarily to enhance and support military
decision-making.

b) Systems Theory
Systems Theory views management as an interrelated component of the organization. Instead of viewing
the organization as a series of silos, each department is part of an overall system or organism.
Management must support goals and process flows that serve the overall organizational health.

2) 14 Principles of Management by Henri Fayol

1. Division of Work – Henri believed that segregating work in the workforce amongst the workers
will enhance the quality of the product. Similarly, he also concluded that the division of work
improves the productivity, efficiency, accuracy and speed of the workers. This principle is appropriate
for both the managerial as well as a technical work level.

2. Authority and Responsibility – These are the two key aspects of management. Authority
facilitates the management to work efficiently, and responsibility makes them responsible for the
work done under their guidance or leadership.

3. Discipline – Without discipline, nothing can be accomplished. It is the core value for any project
or any management. Good performance and sensible interrelation make the management job easy
and comprehensive. Employees’ good behavior also helps them smoothly build and progress in their
professional careers.

4. Unity of Command – This means an employee should have only one boss and follow his
command. If an employee has to follow more than one boss, there begins a conflict of interest and
can create confusion.
5. Unity of Direction – Whoever is engaged in the same activity should have a unified goal. This
means all the people working in a company should have one goal and motive which will make the
work easier and achieve the set goal easily.

6. Subordination of Individual Interest – This indicates a company should work unitedly towards
the interest of a company rather than personal interest. Be subordinate to the purposes of an
organization. This refers to the whole chain of command in a company.

7. Remuneration – This plays an important role in motivating the workers of a company.


Remuneration can be monetary or non-monetary. Ideally, it should be according to an individual’s
efforts they have put forth.

8. Centralization – In any company, the management or any authority responsible for the
decision-making process should be neutral. However, this depends on the size of an organization.
Henri Fayol stressed on the point that there should be a balance between the hierarchy and division
of power.

9. Scalar Chain – Fayol, on this principle, highlights that the hierarchy steps should be from the top
to the lowest. This is necessary so that every employee knows their immediate senior also they
should be able to contact any, if needed.

10. Order – A company should maintain a well-defined work order to have a favorable work culture.
The positive atmosphere in the workplace will boost more positive productivity.

11. Equity – All employees should be treated equally and respectfully. It’s the responsibility of a
manager that no employees face discrimination.

12. Stability – An employee delivers the best if they feel secure in their job. It is the duty of the
management to offer job security to their employees.

13. Initiative – The management should support and encourage the employees to take initiatives in
an organization. It will help them to increase their motivation and morale.
14. Esprit de Corps – It is the responsibility of the management to motivate their employees and be
supportive of each other regularly. Developing trust and mutual understanding will lead to a positive
outcome and work environment.

3) How the Evolution of Management Theories applied in the Office

Many studies indicated that Management theory evolved with "scientific" and "bureaucratic" management
that used measurement, procedures and routines as the basis for operations. Firms developed
hierarchies to apply standardized rules to the place of work and penalized labour for violating rules.

Management theories help organizations to focus, communicate, and evolve. Using management theory
in the workplace allows leadership to focus on their main goals. When a management style or theory is
implemented, it automatically streamlines the top priorities for the organization. Management theory also
allows us to better communicate with people we work with which in turn allows us to work more efficiently.
By understanding management theory, basic assumptions about management styles and goals can be
assumed and can save time during daily interactions and meetings within an organization.

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