The document discusses management theories, categorizing them into classical, behavioral, and modern theories while explaining key concepts and historical context. Classical management focuses on economic needs and centralized decision-making, while behavioral theories emphasize human aspects of work for productivity improvement. Modern management includes quantitative, systems, and contingency approaches, showing the evolution of management practices to adapt to diverse organizational needs.

1. Management theories
Management theories are the
recommended management strategies that
enable us to better understand and
approach management.
Many management frameworks and
guidelines were developed during the last
four decades.

2. Management theories are the set of general rules
that guide the managers to manage an organization.
Management theories (also known as "Transactional
theories") focus on the role of supervision,
organization, and group performance.
Theories are an explanation to assist employees to
effectively relate to the business goals and
implement effective means to achieve the same.
In this article, we will discuss the historical context
of management, diverse views on management, and
finally the theories of management.

3. Types of Management Theories
Management theories can be classified into
three types.
 Classical Management Theory
 Behavioral Management Theory
 Modern Management Theory

4. 1. Classical Management Theory
 Classical management theory is based on the
belief that workers only have physical and
economic needs and prescribes specialization
of labor.
 Classical theories recommend centralized
leadership and decision-making and focus on
profit maximization.Three streams of classical
management theory are - Bureaucracy
(Weber), Administrative Theory (Fayol),
and Scientific Management (Taylor).

5. 2. Behavioral Management Theory
 The behavioral management theory is
focused on the human aspects of work.
They are also often referred to as the
human relations movement.These
theories aspire to gain a better
understanding of human behavior at work
to improve productivity. It focuses on
behavioral aspects like motivation,
conflict, expectations, and group
dynamics.

6. ManagementTheory
 Modern management theory emphasizes the
use of systematic mathematical techniques to
analyze and understand the inter-relationship of
management and workers in all aspects.
 Three streams of modern management theories
are:
1. Quantitative Approach
2. System Approach
3. Contingency Approach.

7. 1. Quantitative or Mathematical Approach:
 Mathematics has made inroads into all disciplines. It
has been universally recognized as an important tool
of analysis and a language for precise expression of
concept and relationship.
 The approach has following features:
1. Management is concerned with problem solving and
must use mathematical tools to solve them.
2. Mathematical models can be developed by quantifying
various variables of the problems.
3. Mathematical symbols can be used to describe
managerial problems.

8. 2. Systems Approach:
 This approach is essentially a way of thinking
about organizations and management problems.
This approach views an organization as
interrelated parts with a unified purpose:
surviving and. ideally, thriving in its environment.
 According to Cleland and King,“A system is
composed of related and dependent elements
which, when in interaction, form a unitary
whole.” In a business the departments of
production, marketing, personnel are sub­
systems and the whole business is one system.

9. 3. Contingency or Situational
Approach:
 Contingency or situational approach was
developed by J.W. Lorsch and P.R. Lawrence in
1970 who were critical of other approaches
presupposing ‘one best way to manage’.
 Management problems are different under
different situations and need to be tackled as
per the demand of the situation.
 One best way of doing may be useful for
repetitive things but not for managerial
problems.

10. This approach has the following
features:
 Management is entirely situational.The
conditions of the situation will determine
which techniques and control systems
should be designed to fit a particular
situation.
 Management policies and procedures
should respond to environmental conditions.
 Managers should understand that there is no
one best way of managing.

12. General ManagementTheories
There are four general management
theories.
 Frederick Taylor – Theory of Scientific
Management
 Henri Fayol – Administrative Management
Theory
 Max Weber - Bureaucratic Theory of
Management
 Elton Mayo – Behavioral Theory of
Management (Hawthorne Effect)

13. 1. Frederick Taylor’s Theory of
Scientific Management:
 Taylor’s theory of scientific management aimed
at, improving economic efficiency, especially
labor productivity.
 Taylor had a simple view about, what
motivated people at work, - money. He felt
that workers should get a fair day's pay for a
for the amount produced.
 Therefore he introduced the differential piece
rate system, of paying wages to the workers.

14. Principles of Scientific Management
Four Principles of Scientific Management are:
 Time and motion study: - Study the way jobs are
performed and find new ways to do them.
 Teach, train, and develop the workman with improved
methods of doing work. Codify the new methods into
rules.
 The interest of the employer & employees should be
fully harmonized so as to secure mutually understanding
relations between them.
 Establish fair levels of performance and pay a premium
for higher performance.*

15. 2. Henri Fayol’s Administrative Management**
 Henri Fayol known as the Father of
Management laid down the 14principles
of Management.
 These 14 principles of management are
used to manage an organization and are
beneficial for prediction, planning,
decision-making, organization and process
management, control, and coordination.**

16.  Equity: Employees should be treated equally and
respectfully
 Discipline: Makes the management job easy and
make progress
 Initiative: support and encourage employees taking
initiatives
 Authority and Responsibility: Efficient delivery of
work with defined responsibility
 Esprit de Corps: Develop trust and mutual
understanding
 Subordination of Individual Interest: Company
over personal interest and respect the chain of
command

17.  Stability: offer job security to their employees
 Remuneration: motivating factor linked to the
individual’s efforts
 Unity of Direction: Unified goals and motives for all
personnel working in a company
 Centralization: Balance between the hierarchy and
division of power
 Scalar Chain: Hierarchy steps should be from top
to the lowest
 Unity of Command: More than one boss brings a
conflict of interest and confusion
 Order: the positive atmosphere in the workplace
boosts productivity

18. 3. Max Weber’s BureaucraticTheory of Management:
Weber made a distinction between authority and
power.Weber believed that power educes
obedience through force or the threat of force
which induces individuals to adhere to
regulations.According to MaxWeber, there are
three types of power in an organization:-
1. Traditional Power
2. Charismatic Power
3. Bureaucratic Power or Legal Power.

19. Features of Bureaucracy:
 Division of Labor.
 Formal Hierarchical Structure.
 Selection based on Technical Expertise.
 Management by Rules.
 Written Documents.
 Only Legal Power is Important.
 Formal and Impersonal relations.

20. 4. Elton Mayo’s BehavioralTheory of
Management
 Elton Mayo's experiments showed an increase in
worker productivity was produced by the
psychological stimulus of being singled out,
involved, and made to feel important.
 Hawthorne Effect can be summarized as
“Employees will respond positively to any novel
change in a work environment like better
illumination, clean work stations, relocating
workstations, etc. Employees are more productive
because they know they are being studied.

21. Theory X
According to McGregor, Theory X management
assumes the following:Work is inherently distasteful
to most people, and they will attempt to avoid work
whenever possible. Most people are not ambitious,
have little desire for responsibility, and prefer to be
directed.
Theory X means that a manager relies on strict
guidance as their core method of organization.There
are specific conditions that lead business owners to
adopt this theory. Businesses that produce a high
quantity of goods may rely on the X theory.

22. Theory Z of Management
Theory Z also called the "Japanese Management"
style is a leadership theory of human motivation
focused on organizational behavior, communication,
and development.
It assumes that employees want to enter into long
term partnerships with their employers and peers.
Co-operative relationships between employers and
employees.
Offering stable jobs with an associated focus on
the well-being of employees results in increased
employee loyalty to the company.

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