4. THEORIES OF MANAGEMENT
+ Management theories have evolved from
an emphasis on authority and structure to
a focus on employees.
+ There are still competing theories
regarding what motivates an employee,
but knowing how the theories arrived at
their conclusions can help you with your
own employees.
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+ What do some of the original
management theorists believe?
+ Different managers - have different
schools of thought
+ Max Weber's theory is bureaucratic
+ Henri Fayol's theory is administrative
+ Elton Mayo's theory is based in human
relations
+ Douglas McGregor's theory is based on
different types of workers
5. “You may hear or read it on the internet, books, or from any other
sources that there are a lot of theories of management. Some
are old, some are added and new. I am going to give you the list I
read on the internet, however, these are just additional
informations”
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6. + Principles of AdministrativeManagement -
the importance of maintaining a clean
facility to the value of initiative and
teamwork, are the foundation for many of
today’s most successful businesses.
+ Bureaucratic Management - revolve around
the importance of structuring your business
in a hierarchical manner with clear rules and
roles.
+ Theories X and Y - Theory X - employees are
apathetic or dislike their work. Managers who
adhere to Theory X are often authoritarian
and will micromanage everything because
they don’t trust their employees.
IMPORTANT THEORIES FOR MANAGEMENT
+ Theory Y - employees are self-motivated,
responsible, and want to take ownership of
their work. Managers who adhere to Theory Y
include their employees in the decision-
making process and encourage creativity at
all levels.
+ In practice, small businesses tendto operate
on Theory Y while large businessestend to
operate on Theory X.
+ Human Relations Theory - Mayo’s Human
Relations Theory, in which he states that
employees are more motivated by social
factors — like personal attention or being part
of a group — than environmental factors, such
as money and working conditions.
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7. + Classical Management
- is predicated on the
idea that employees
only have physical
needs. Because
employees can satisfy
these physical needs
with money, Classical
Management Theory
focuses solely on the
economics of
organizing workers.
+ As a result, Classical
Management Theory
advocates seven key
principles:
+ Profit maximization
+ Labor specialization
+ Centralized leadership
+ Streamlined operations
+ Emphasis on productivity
+ Single-person or select-
few decision making
+ Priority to the bottom
line
+ Modern Management -
embraces the idea that
people are complex.
Their needs vary over
time, and they possess
a range of talents and
skills that the business
can develop through
on-the-job training
and other programs.
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8. Now let’s get to know the theorist,
theirs studies and
recommendations.
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9. MAX WEBER - The Theory of Bureaucracy
+ According to him, bureaucracy is the
most efficient form of organization.
+ The organization has a well- defined line
of authority. It has clear rules and
regulations which are strictly followed.
+ Bureaucracy refers to a specialized
system and process of maintaining
uniformity or authority within an
organization.
+ Bureaucratic processes are most
common in Large organizations
Government
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13. Job specialization Jobs are divided into simple, routine and fixed category
based on competence and functional specialization.
Authority Hierarchy - Officers are organized in hierarchy in which higher officer
controls lower position holders.
Formal selection - All organizational members are to be selected on the basis
of technical qualifications and competence demonstrated by training,
education or formal examination.
Formal rules and Regulations - To ensure uniformity and to regulate actions of
employees, managers must depend heavily upon formal organizational
rules and regulations. Thus, rules of law lead to impersonality in
interpersonal relations.
Impersonality - Rules and controls are applied uniformly, avoiding involvement
with personalities and preferences of employees. Biasness and
favoritism are not preferred.
Career orientation - Career building opportunity is offered. Promotions and
salary hikes are strictly based on technical competence. They work for a
fixed salaries and pursue their career within the organization.
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14. Criticism of Bureaucratic Organization
is a very rigid type of organization. It
does not give importance to human
relations.
It is suitable for government
organizations.
It is also suitable for organizations
where change is very slow.
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17. ELTHON MAYO – The behaviour management theory
+ Mayo management theory
states that employees are
motivated far more by
relational factors such as
attention and camaraderie
than by monetary rewards or
environmental factors such as
lighting, humidity, etc.
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19. FREDERICK TAYLOR – The theory of scientific management
+ managers break down larger tasks
into smaller parts.
+ Workers re-motivated to deliver
quality work because they are
financially rewarded based on their
performance. Allocate work
between managers and employees
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