This PowerPoint presentation is made for my students in ABM SHS DEPT.

2. Theories of management
MODULE 2
22

3. LET’S DIG DEEPER:
33

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.
44
+ 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”
55

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.
66

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.
77

8. Now let’s get to know the theorist,
theirs studies and
recommendations.
88

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
99

10. Bureaucratic organizations evolved from traditional structures due to
the following changes:
1010

11. + TASK SPECIALIZATION
1111
+ AUTHORITY HEIRARCHAL

12. IMPERSONALITY
1212

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.
1313

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.
1414

15. 14 PRINCIPLES OF MANAGEMENT
1515

16. 1616

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.
1717

18. 1818

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
1919

20. 2020
Thank you for time
and
keep safe always students!