Theories of management

1. THEORIES OF MANAGEMENT

2. HISTORICAL THEORY
1.TRIAL AND ERROR THEORY: Try and Error is
trying a method, observing if it works, and if it
doesn’t, trying a new method. This process is
repeated until success or solution is achieved.

3. 2. CONVENTIONAL THEORY: It is a part of
historical theory, according to this theory people
follow the methods of their forefathers instead of
using the method of trial and error.

4. CLASSICAL THEORY:
1. Scientific Management Theory:
This theory was propounded by Frederick Winslow
Taylor. Taylor believed that by analysing work in a
scientific manner, it was possible to find the one best
way to perform a task. He felt that by organising work in
the most efficient way, the organisation's productivity
would be increased, allowing it to reward employees with
additional remuneration, which Taylor argued was
employee's only motivation. Taylor’s theory of scientific
management aimed at improving economic efficiency,
especially labor productivity. Taylor had a simple view
about what motivates people at work - money. He felt
that workers should get a fair day's pay for a fair day's
work, and that pay should be linked to the amount
produced. Therefore he introduced the DIFFERENTIAL
PIECE RATE SYSTEM of paying wages to the workers.

5. 2. Bureaucratic Management Theory:
Bureaucratic Theory was developed by a
German Sociologist and political economist Max
Weber (1864-1920). According to him,
bureaucracy is the most efficient form of
organisation. The organisation has a well-
defined line of authority. It has clear rules and
regulations which are strictly followed. 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. 3.
Administrative

6. 3. Administrative Management Theory:
The first expert of Administrative Management
Theory was Henri Fayol (1841-1925). Fayol is called
the "Father of Modern Management". According to
the Administrative Management Theory,
management is the process of getting things done
through people". Here importance is given to groups
and not to individuals. Principles of Henry Fayol
administrative Management theory: 1. Division of
work. 2. Authority and responsibility. 3. Discipline.
4. Unity of command. 5. Unity of direction. 6.
Subordination of personal interest to organizational
interests. 7. Remuneration 8. Centralization 9.
Scalar chain 10. Order 11. Equity 12. Stability of
tenure 13. Span of cooperation 14. Initiative