See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/328125388

A Taxonomy of Management Theories

Article · September 2018

CITATIONS READS
0 485

1 author:

Olivier Serrat
Chicago School of Professional Psychology
508 PUBLICATIONS   600 CITATIONS   

SEE PROFILE

Some of the authors of this publication are also working on these related projects:

Environmental Resource Management View project

How-To Guides View project

All content following this page was uploaded by Olivier Serrat on 06 October 2018.

The user has requested enhancement of the downloaded file.

A Taxonomy of
Management
Theories

Deming, Drucker, Maslow, McGregor, Schein, Senge,

Taylor, Weber … This précis references influential
management theories in the last hundred years: in
each instance, the taxonomy flags the historical
foundation, highlights basic theory and application, lists
principally cited publications, and passes comment on
how the theory is viewed today.

Olivier Serrat
26/09/2018
 1

A Taxonomy of Management Theories

Management theories1 matter because management matters: a means to an end, it changes

organizations and the way people work. Throughout the ages,2 but especially from the second
half of the 20th century, original and influential thinkers have offered guidance on management,
notably in the United States where the search for the next "Big Idea" has often been the game
preserve of management "gurus". (Smith and Hitt, 2007) From scientific management to time-
and-motion studies, from the hierarchy of needs to motivation theory, from competitive
advantage to the learning organization, and from managing information to scenario planning, to
name a few Big Ideas, management philosophy and practice have been driven by concern for
greater efficiency, productivity, performance, or profits on the one hand and higher satisfaction
among workers on the other, preferably all at once but more often than not in seemingly
bipartisan opposition.

Some management theories have stayed the course while others have not:3 but, much as
paradigm shifts are better represented as a series of waves overriding one another, the general
effect has been one of continuous renewal in the face of change. Taxonomy is the science of
defining and naming groups based on (perceptions of) shared characteristics: the table overleaf
posits and clusters a few influential management theories of the ages. Many theories vie for
attention but a selection of the foremost drivers is always subjective and cannot be encyclopedic
when illustration and attendant brevity are of the essence: for about 30 theories, the table
overleaf flags the years and historical foundation, names the representative eminent thinker,
highlights basic theory and application, lists the principally cited publication(s), and passes quick
comments on how each theory is viewed today.

1
Merriam-Webster defines a theory as a plausible or scientifically acceptable general principle
or body of principles offered to explain phenomena. Social science theories endeavor to explain
relationships between variables and few such theories, if any, are amenable to testing in
laboratories; therefore, the term "theory" is in this paper taken to mean a contemplative and
rational type of abstract or generalizing thinking, or the results of such thinking.
2
For instance, it goes without saying that effective management played a role in, say, the
construction of pyramids in Egypt; administration in the Roman Empire; the conduct of business
by the Phoenicians; the Muslim Agricultural Revolution of the 8th–13th century; and the legal
framework for commerce in Venice in the 14th century.
3
Every two years since 2001, Thinkers50 has published its ranking of the world's top 50
management and leadership thinkers. Thinkers50 ranking is based on a combination of voting
at the Thinkers50 website and input from a team of advisors. The criteria are (i) relevance of
ideas; (ii) rigor of research; (iii) presentation of ideas; (iv) accessibility/dissemination of ideas; (v)
international outlook; (vi) originality of ideas; (vii) impact of ideas; (viii) practicality of ideas; (ix)
business sense; and (x) power to inspire. Criteria 1–5 are based on how the thinker has
performed over the last two years (since the last ranking); Criteria 6–10 are evaluated based on
the thinker's performance over the long term (the last 20 years). Those recognized previously
have included, alphabetically, Richard Branson, Peter Drucker, Clayton Christensen, Bill Gates,
Steve Jobs, Tom Peters, and Michael Porter.
 Table: A Taxonomy of Management Theories

When Historical Eminent Basic Theory & Application Principal Brief Observation
Foundation Thinker Publication(s)
1910s Quantitative Frederick W. Taylorism broke down the components of The Principles of Scientific management was (and
Methods and Taylor manual work in manufacturing environments, Scientific continues to be) used to increase
Engineering measuring movement (hence Gantt charts Management productivity and efficiency; however, it
and the "time-and-motion" studies of Frank (1911) discounts the human aspects of
and Lillian Gilbreths) so there might be a employment (for both individuals and
proven best way to perform each task. groups).
Organization Henri Fayol Fayol defined management, viz., planning, Administration Fayol was describing the structure of
Theory and organizing, commanding, coordinating, and Industrielle et formal organizations, hence the somewhat
Strategic controlling, and enunciated 14 principles to Générale, (1916, dictatorial language used. Many of Fayol's
Management guide decision-making and management translated in 1949) 14 principles were subsequently applied in
actions. many organizations but cannot cope with
conditions of rapid change or other forms
of organization.
1930s Organization Max Weber Weber described the rational–legal form of The Protestant Bureaucracy based on hierarchy of
Theory and authority that now exists in many Ethic and the Spirit authority and a system of rules was
Strategic organizations, to which he ascribed the term of Capitalism deemed the most efficient way of working.
Management "bureaucracy". (1905; translated, Subsequent analysis identified many
1930); The Theory disadvantages including the tendency of
of Social and bureaucracies to become procedure
Economic dominated, heavily formalized to the
Organization (1920; detriment of initiative and flexibility, and
translated 1947) characterized by rigid behavior among
senior managers that can lead to
standardized services that do not meet
the needs of the client. As a result,
bureaucracies are known to demotivate
their personnel.
Human Elton Mayo Whereas quantitative methods and The Human From the 1950s, doubt was increasingly
Relations and engineering theorists had been concerned Problems of an cast on the applicability of the Hawthorne
Behavioral with structure and the mechanics of Industrial Studies to everyday working life.
Science organizations, the theorists of human Civilization (1933);
relations and behavioral sciences in the The Social
Hawthorne Studies focused on motivation Problems of an
and leadership; assumptions about the Industrial
relationship between employers and Civilization (1945)
employees were at the center of their
thinking.
1940s Human Reginald Revans explained that for an organization to Developing From its inception, action learning has
Relations and Revans survive its rate of learning must be at least Effective Managers developed in numerous ways including
equal to the rate of change in its external (1971); The Origins
 3

When Historical Eminent Basic Theory & Application Principal Brief Observation
Foundation Thinker Publication(s)
Behavioral environment. The Revans Formula is L = P + and Growth of virtual action learning, critical action
Science Q, where L (learning) = P (programmed Action Learning learning, and action–reflection learning.
knowledge) + Q (questioning insight). (1982); ABC of
Action Learning
(1983).
Human Kurt Lewin The core idea of action research, which owes A Dynamic Theory Action research has been called a
Relations and to Lewin, is that there should be an intimate of Personality contradiction in terms and deemed
Behavioral relationship between inquiry and practical (1935); Principles inherently unstable: in practice, it resolves
Science activities. Action research is applied, problem- of Topological itself either into inquiry that is
based research that usually involves the Psychology (1935); subordinated to another activity or into
researcher as an active participant in an Action Research specialized research.
interactive, collaborative, and iterative and Minority
process. The action research process is Problems (1946);
usually designed not only to generate Resolving Social
knowledge but also to employ that Conflicts (1948);
knowledge. Field Theory in
Social Science
(1951)
1950s Organization Tavistock Originating from research at the Tavistock Some Social and The Tavistock Institute researchers who
Theory and Institute Institute, sociotechnical systems theory had Psychological worked on sociotechnical systems theory
Strategic at its core the idea that the design and Consequences of saw it as a breakthrough in the design of
Management performance of any organizational system the Longwall organizations fit for people to work in. But,
can only be understood and improved if social Method of Coal the first sociotechnical systems studies
and technical aspects are brought together in Getting (1951) were undertaken in coal mines and
a more complex system that treats task, weaving mills, a far cry from organizations
structure, technology, and people (actors) as in which information and communications
interdependent parts. technology is a fundamental part of the
technical system or where virtual teaming
is the norm. At best, sociotechnical
systems theory may help understand
helping us understand what happens
when information and communications
technology is introduced in this or that
way.
Human Abraham I.Maslow's hierarchy of needs is a A Theory of Human Maslow was not finished with the
Relations and Maslow motivational theory comprising a five-tier Motivation (1943); hierarchy of needs when he passed away;
Behavioral model of human needs: (i) physiological Motivation and in his later years, he had placed self-
Science needs; (ii) safety needs; (iii) belongingness Personality (1954) transcendence at the apex of the
and love needs; (iv) esteem needs; and (v) hierarchy, above self-actualization.
self-actualization needs. Maslow foresaw needs for highly-focused
mental states—mindfulness, flow—that
 4
When Historical Eminent Basic Theory & Application
Foundation Thinker
Organization Peter The Practice of Management was the first
Theory and Drucker book to look at management as a whole.
Strategic Drucker proposed that a business exists as
Management; an economic establishment that produces
Human value for its stakeholders and for the society;
Relations and as a community that employs, pays, and
Behavioral develops people and coordinates their efforts
Science to raise productivity; and as a social institution
that is embedded in society and values.
Human Frederick Building on Maslow's hierarchy of needs,
Relations and Herzberg Herzberg developed a list of hygiene factors
Behavioral that should be present in a job before
Science attempts are made to motivate workers. The
basic assumption of Herzberg's two-factor
theory revolved around redesigning and
improving employee positions to increase
motivation and involvement. The satisfiers
that Herzberg identified were recognition,
achievement, advancement, growth,
responsibility, and job challenge; the
dissatisfiers were working conditions, policies
and administrative practices, salary and
benefits, supervision, status, job security,
fellow workers, and personal life.
1960s Organization Douglas Building also on Maslow's hierarchy of needs,
Theory and McGregor McGregor's Theory X and Theory Y are
Strategic theories of human work motivation and
Management; management. Theory X states that
Human management believes workers will do as little
Relations and as possible to get by and thus need a great
Behavioral deal of direction, which underscores the
Science importance of heightened supervision,
external rewards, and penalties; conversely,
Theory Y states that management believes
workers are interested in doing their best and
Principal Brief Observation
Publication(s)
enable people to surpass individual well-
being.
The Practice of Drucker is considered the most influential
Management management thinker ever and deemed by
(1954) many to have invented management: both
modern and systematic (and in many
ways postmodern), advancing both
organization theory and strategic
management as well as human relations
and behavioral science, his pioneering
and prolific work transcends typologies.
The Practice of Management (1954) is as
relevant today as when it was first written.
Drucker conceived business as a human-
driven enterprise that could be both
profitable and socially responsible.
The Motivation to Herzberg coined the concept of "job
Work (1959) enrichment": he separated the elements of
a job into those that serve animal or
economic needs (hygiene or
maintenance) and those that meet deeper
aspirations (motivation) and remains a
major influence on management thinking.
Herzberg's work influenced such
corporate developments as "flextime" as
well as "cafeteria" plans, which allow
employees to select their mix of benefits.
The Human Side of McGregor may have couched Theory X
Enterprise (1960) too negatively, which logically ought to
preclude its use entirely. With work to be
done and wages to be claimed, there is
little alternative to the carrot and stick if,
paraphrasing the clichés of Theory X, the
average employee is indolent; lacks
ambition, dislikes responsibility, prefers to
be led; is inherently self-centered,
indifferent to organizational needs; is
resistant to change; is gullible, not very
 5
When Historical Eminent Basic Theory & Application
Foundation Thinker
will perform well if given freedom, which
highlights the motivating role of job
satisfaction and encourages workers to
approach tasks without direct supervision.
Crucially, McGregor did not consider Theory
X and Theory Y to be opposite ends of the
same continuum but rather two different
continua in themselves: a manager would
need to adopt (variants of) both approaches
depending on the evolving circumstances and
levels of internal and external locus of control
throughout a particular workplace.
Human Robert Blake Robert Blake and Jane Mouton developed a
Relations and & Jane binary management model based on two
Behavioral Mouton orientations: (i) (low to high) concern for
Science people—this evidences the degree to which a
leader considers the needs, interests, and
areas of personal development of personnel
when deciding how best to accomplish a task;
and (ii) (low to high) concern for results—this
evidences the degree to which a leader
emphasizes concrete objectives,
organizational efficiency, and high
productivity when deciding how best to
accomplish a task. In the resulting grid, Blake
and Mouton made out five different
combinations of the two orientations, with
which they associated distinct leadership
styles: (i) impoverished management (low
results/low people); (ii) deliver-or-perish
management (high results/low people); (iii)
middle-of-the-road management (medium
results/medium people); (iv) country club
management (high people/low results); and
(v) team management (high results/high
people). (Team management, the optimal
leadership style in the model, is based on
McGregor's Theory Y.)
Organization Ludwig von Models that were conceptualized
Theory and Bertalanffy organizations and their human agents as
Strategic closed systems include Taylor's scientific
Management management and Weber's bureaucratic
Principal Brief Observation
Publication(s)
bright, and the ready dupe of the
charlatan and the demagogue? But what if
the average worker is not a slacker yet
needs a modicum of guidance (or if the
nature of the work demands it)? For a
while, Theory X and Theory Y influenced
the design and implementation of
personnel policies and practice; but, as
managerial research progressed,
McGregor's binary division of styles came
to be considered simplistic.
The Managerial Asserting that a mere two dimensions can
Grid (1964) characterize managerial behavior offers
the promise of vital truths about
management styles and their implications.
Would-be managers should understand
the basics of the Managerial Grid. But, the
problem with binary explanations of the
world is that they describe what they
promise: nothing less—for what that is
worth— but certainly nothing more: the
Managerial Grid, for instance, sheds no
light on the characteristics of leaders, the
characteristics of followers, or the
characteristics of the situation.
General System Bertalanffy developed systems theory to
Theory: help (i) investigate the whole, not just the
Foundations, parts; (ii) understand the interactions,
interdependencies, and inter-relationships
 6
When Historical Eminent Basic Theory & Application
Foundation Thinker
theory. Generally, closed systems deal with
routine tasks, task specialization, emphasis
on means (of, say, production), and top–down
management of related conflicts: they have
minimal or no interaction with the surrounding
environment. Bertalanffy, the best known of
the system theorists, described organizations
as
open systems that are influenced by both
internal and external environmental factors;
crucially, however, organizations influence in
turn
the same internal and external environmental
factors so that dynamic relationships can
develop as a result.
1970s Human Victor Vroom The Vroom–Yetton Decision Model
Relations and & Philip developed by Victor Vroom in collaboration
Behavioral Yetton with Phillip Yetton (and later with Arthur Jago)
Science hinges on seven "yes/no" questions that one
needs to answer to find the best decision-
making process for a situation. The seven
questions are: (i) Is the quality of the decision
important? (ii) Is team commitment to the
decision important? (iii) Do you have enough
information to make the decision on your
own? (iv) Is the problem well structured? (v) If
you made the decision yourself, would the
team support it? (vi) Does the team share
organizational goals? and (vii) Is conflict
amongst the team over the decision likely?
The five different styles (ranging from
autocratic to consultative to group-based
decisions) to be adopted based on the
situation and level of involvement are (i)
Autocratic Type 1 (AI); (ii) Autocratic Type 2
(AII); (iii) Consultative Type 1 (CI); (iv)
Consultative Type 2 (CII); and (v) Group-
Based Type 2 (GII).
Organization Henry Disconcertingly, the reality of what managers
Theory and Mintzberg actually do was unexplored until Mintzberg
Principal Brief Observation
Publication(s)
Development, of the parts within their system, with other
Applications (1969) systems, and with the surrounding
environment; and (iii) deal with increasing
numbers of variables and with complexity.
Nowadays, most organizations run as
open systems but even then, pace
Bertalanffy and such as Senge, often act
as if they can operate independently of
the world around them: if systems theory
must be blamed, one can point to its
interpretation of organizations and
environments as concrete items and to its
epistemological inability to recognize that
functional unity and harmony are not
necessarily (or easily) possible. (Systems
theory may also push the metaphor of
organizations as organisms too far.)
Leadership and The underlying assumption of the Vroom-
Decision-Making Yetton Decision Model is that no single
(1973) decision-making process fits all situations.
The model walks decision makers through
logical steps to help them identify the
most appropriate processes and
associated leadership styles. However,
the model takes no account of the many
kinds of social interaction that typically
impact stakeholder relations. Moreover, it
stands to reason that constructive, well-
managed controversy can improve the
outcome of decision making. Hence, the
model may be more useful at the
preplanning stages of a decision.
The Nature of In Simply Managing (2013), an
Managerial Work abbreviated version of Managing (2009),
 7

When Historical Eminent Basic Theory & Application Principal Brief Observation
Foundation Thinker Publication(s)
Strategic searched for it: he found that managers were (1973); Simply Mintzberg revisited the work he conducted
Management; slaves to the moment, shifting from task to Managing (2013) 40 years earlier: he reviewed in greater
Human task with every move dogged by yet another detail what managers do but concentrated
Relations and diversion and yet another call. Mintzberg on what they might do better; the
Behavioral made out that the manager at work performs highlights include a Model of Managing on
Science a great quantity of work at unrelenting pace; the three planes of information, people,
undertakes activities marked by variety, and action, and thoughtful reflection on 13
brevity, and fragmentation; favors issues that inescapable conundrums of managing.
are current, specific, and non-routine; prefers Remarkably, Mintzberg's original work
verbal rather than written means of seems evermore relevant.
communication; acts within a web of internal
and external contacts; and is subject to heavy
constraints but can exert some control over
the work. From these observations, Mintzberg
identified the manager's work roles to be (i)
interpersonal (i.e., figurehead, leader, and
liaiser); (ii) informational (i.e., monitor,
disseminator, and spokesman; and (iii)
decisional (i.e., entrepreneur, disturbance
handler, resource allocator, and negotiator).
Human Tom Gilbert Gilbert devised human performance Human Gilbert founded the field of human
Relations and technology when he realized that formal Competence: performance technology: his work inspired
Behavioral learning programs often only brought about a Engineering Worthy much of the organizing framework upon
Science change in knowledge, not a change in Performance which the International Society for
behavior. The Behavior Engineering Model (1978) Performance Improvement is based.
that Gilbert devised consists of three
Leisurely Theorems that (i) distinguish
between accomplishment and behavior to
define worthy performance; (ii) identify
methods for determining the potential for
improving performance; and (iii) describe six
components of behavior that can be
manipulated to change performance (i.e.,
environmental—data, resources, and
incentives; and individual—knowledge,
capacity, and motives).
Human James Burns described two contrasting two modes Leadership (1978) Critics have pointed out that rewards
Relations and MacGregor of leadership—transactional and motivate only at a base level and produce
Behavioral Burns transformational. At its simplest, transactional poor results where higher-level thinking is
Science leadership is the promise of reward for work needed: exchanging higher-quality
(that could be psychological or material in commodities may help for a time but
nature); transactional leadership also approaching leader–follower relationships
 8
When Historical Eminent Basic Theory & Application
Foundation Thinker
promotes compliance through threat of
punishment. However, transformational
leaders approach their work from a more
altruistic perspective, seeking to truly engage
their followers and motivate them to higher
levels of performance; transformational
leadership originates in the personal values
and beliefs of leaders, not in an exchange of
commodities with followers.
1980s Human Geert Hofstede is noted for seminal work on the
Relations and Hofstede influences that shape national culture (viz.
Behavioral power distance index, individualism vs.
Science collectivism, masculinity vs. femininity,
uncertainty avoidance index, long-term
orientation vs. short-term orientation, and
indulgence vs. restraint). The six dimensions
allow accurate measurement of
organizational culture, enabling in turn the
delivery of solutions to optimize international
teamwork, improve global cooperation, and
find the right balance between
standardization and localization.
Organization Michael Porter developed three generic strategies—
Theory and Porter lowest cost, differentiation, and focus—to
Strategic bring structure to the task of strategic
Management positioning. He showed how competitive
advantage can be defined in terms of relative
cost and relative prices, thus linking it directly
to profitability, and presented new
perspectives on how profit is created and
divided.
Principal Brief Observation
Publication(s)
from a transactional perspective cannot
but limit outcomes. This said, the principal
challenge of transformational leadership is
that the intentions of transformational
leaders cannot be guaranteed, even if
they are conceived as morally positive; in
the hands of a skilled operator, this can
lead to abuse of power (a conundrum that
then sparked interest in authentic
leadership). What is more,
transformational leadership sheds no light
on the characteristics of followers nor on
those of the situation by virtue of its near-
exclusive focus on those of
transformational leaders,
Culture's Originally based on a worldwide survey of
Consequences: IBM employees, Hofstede's cultural
International dimensions theory is a framework for
Differences in cross-cultural communication: the theory
Work-Related is well known and makes for fascinating
Values (1980) comparisons across countries and their
cultures. This said, in Hofstede's work just
as anywhere else, what are termed
"dimensions" are of course imagined and
there can be any number of others. On
top, as globalization intensifies and
organizations become ever more
international, Hofstede's six cultural
dimensions may come to reveal less and
less in a categorical sense.
Competitive The lowest cost strategy may actually be
Strategy: a differentiation strategy based on low
Techniques for price. Also, research has shown that
Analyzing differentiation and lowest cost strategies
Industries and can co-exist even though Porter stipulated
Competitors (1980) that each requires a different culture.
Elsewhere, contrary to Porter's views,
differentiation strategies have been shown
to be more profitable than lowest cost
strategies.
 9

When Historical Eminent Basic Theory & Application Principal Brief Observation
Foundation Thinker Publication(s)
Organization Tom Peters Peters and Waterman argued that eight In Search of As early as 1984 it had become apparent
Theory and & Robert common attributes were responsible for the Excellence: that Peters and Waterman's choice of
Strategic Waterman success of the 43 corporations they reviewed: Lessons from companies ranged from poor to
Management (i) a bias for action; (ii) close to the customer; America's Best-Run indifferent: NCR, Wang Labs, Xerox, and
(iii) autonomy and entrepreneurship; (iv) Companies (1982) others were no longer producing excellent
productivity though people; (v) hands-on, results and seemed to have just been
value-driven; (vi) stick to the knitting; (vii) large firms with dominant positions in
simple form, lean staff; and (viii) simultaneous markets that were senescent or static.
loose–tight properties. The platform for Peters The research methodology that Peters
and Waterman, onto which their research and and Waterman employed was criticized as
theorizing built, was the McKinsey 7-S Model the delusion of connecting winning dots.
of strategy, structure, systems, shared
values, skills, style, and staff.
Quantitative W. Edwards Total Quality Management, as Deming's set Out of the Crisis Deming's precepts for quality control
Methods and Deming of management practices came to be known, (1982) remain essentially unchallenged, though
Engineering; was premised on the idea that the key to they can be and are constantly redirected,
Organization quality improvement was in the hands of refined, and absorbed into new
Theory and management; in other words, most problems management techniques, such as
Strategic are the result of the system and not the fault business process redesign (or
Management of employees. Deming offered a theory based reengineering). Deming himself
on Fourteen Points for Management: (i) considered the Fourteen Points work in
create constancy of purpose for improvement progress.
of product and service; (ii) adopt the new
philosophy; (iii) cease dependence on mass
inspection; (iv) end the practice of awarding
business on the basis of price tag alone; (v)
improve constantly and forever the systems
of production and service; (vi) institute
training and retraining; (vii) institute
leadership; (viii) drive out fear; (ix) break
down barriers between staff areas; (x)
eliminate slogans, exhortations, and targets
for the workforce; (xi) eliminate numerical
quotas; (xii) remove barriers to pride of
workmanship; (xiii) institute a vigorous
program of education and self-improvement;
and (xiv) put everybody in the company to
work to accomplish the transformation.
Organization Edgar Schein enriched the field of organizational Organizational Ever the reflexive thinker in the vein of
Theory and Schein development in the areas of career Culture and Mintzberg, Schein considers of late that
Strategic development—where he coined the concepts Leadership (1985) organizational culture is no longer the
Management; of the "psychological contract" and "career relevant topic: what with globalization,
 10
When Historical Eminent Basic Theory & Application
Foundation Thinker
Human anchor"—and group process consultation but
Relations and his mark on organizational culture is arguably
Behavioral greatest. Schein held that culture is the
Science primary source of resistance to change within
an organization and that an accurate
understanding of organizational dynamics
begins with recognizing this fact. To help
describe and analyze organizational culture
phenomena, Schein made out a three-level
model comprising: (i) artifacts—visible and
"feelable" phenomena; (ii) espoused beliefs
and values; and (iii) basic underlying
assumptions.
1990s Organization C. K. The concept of core competency that
Theory and Prahalad & Prahalad and Hamel introduced was defined
Strategic Gary Hamel as a harmonized combination of multiple
Management resources and skills that distinguish a
company in the marketplace and are
therefore the foundation of that company's
competitiveness. Prahalad and Hamel
outlined three tests that determine whether
something is a core competence: (i) a core
competence provides potential access to a
wide variety of markets; (ii) a core
competence makes a significant contribution
to the perceived customer benefits of the end-
product; and (iii) a core competence is difficult
for competitors to imitate because it is a
complex harmonization of individual
technologies and production skills.
Organization Peter Senge Senge popularized the concept of the
Theory and "learning organization" and brought it to the
Strategic forefront of management thinking. He
Management described the learning organization as a
place where: "… people continually expand
their capacity to create the results they truly
desire, where new and expansive patterns of
thinking are nurtured, where collective
aspiration is set free, and where people are
continually learning to see the whole
together." In an environment of rapid change,
Senge argued, only those organizations that
Principal Brief Observation
Publication(s)
organizational culture must now be
considered through the prism of macro
culture, nations, and corporations—where
nationalities and occupations play out—as
well as micro cultures because
multicultural teams comprising different
occupations increasingly interplay.
Evermore, cultural literacy is becoming of
the essence, which places a premium on
learning—or rather learning to learn—as
the world becomes more different, more
complex, and more culturally diverse.
The Core Organizations are more complex than
Competence of the ever, what with multi-national operations;
Corporation (1990) outsourcing; offshoring; contingent
staffing; out-tasking; layoffs, downsizing,
rightsizing, reductions in force, etc.; and
mergers, acquisitions, and divestitures.
Excepting the case of small companies,
focusing on core competencies may no
longer be practicable.
The Fifth Discipline It is still difficult to find an example of
(1990) Senge's learning organization, perhaps
because the ideal he made out seems at
odds with the need—or perceived
imperative—to deliver short-term profits to
shareholders. However, we live in fast-
moving times when knowledge and the
ability to identify, create, store, share, and
use it for creativity and innovation are at a
premium. The learning organization may
not yet be a reality but aspiration toward
the ideal has led many to see learning as
 11

When Historical Eminent Basic Theory & Application Principal Brief Observation
Foundation Thinker Publication(s)
have the flexibility and skills to adapt will a benefit and not a cost. It would be
survive. They must master five basic fascinating to see learning organizations
disciplines: (i) shared vision—a genuine develop in our lifetimes; in spite of
vision that encourages people to excel and everything, the leaning organization needs
learn because they want to; (ii) mental no apology.
models—deeply ingrained assumptions,
generalizations, or even pictures and images
that influence how we understand the world
and how we take action; (iii) personal
mastery—the proficiency to live in a continual
learning mode, which brings self-confidence
to the individual, who is not afraid to admit
ignorance and the need to grow; (iv) team
learning—because people need to be able to
act together and learn from one another in
order to achieve maximum creativity and
innovation; and (v) systems thinking—the
ability to see the whole rather small,
unrelated, and manageable parts.
Organization Peter No one can accurately predict what tomorrow The Art of the Long Scenario planning is not a panacea: the
Theory and Schwartz will bring but we do know that do that View (1991) end result is not an accurate picture of
Strategic volatility, uncertainty, complexity, and tomorrow but better thinking about the
Management ambiguity now define the future. Scenario future. Since scenarios provide a context
planning, aka called scenario thinking or for decisions, better thinking should lead
scenario analysis, is a strategic planning to more robust decisions. Still, just as
method that some large organizations use to important as the permanent process of
make flexible long-term plans: it involves reading the future is planned and
aspects of systems thinking, specifically the systematic abandonment of what no
recognition that many factors may combine in longer serves purpose, conveys
complex ways to create sometime surprising satisfaction, or makes a contribution;
futures. Schwartz, a leading theorist and otherwise, the best definition of the focal
practitioner, has specified the discrete steps issue under scenario planning will turn out
of scenario planning to be (I) uncovering the to have been a thankless exercise.
focal issue; (ii) making out key factors; (iii)
listing driving forces; (iv) ranking driving
forces; (v) fleshing out scenarios; (vi) drawing
implications; and (viii) selecting indicators.
Organization Richard Hypercompetition takes place when Hypercompetition In a Schumpeterian update of Porter's five
Theory and D'Aveni technologies (or offerings) are so new that (1994) competitive forces (i.e., competitive
Strategic standards and rules are in flux and rivalry, bargaining power of suppliers,
Management competitive advantages and profits cannot be bargaining power of customers, threat of
sustained. Under hypercompetition, D'Aveni new entrants, and threat of substitute
 12
When Historical Eminent Basic Theory & Application
Foundation Thinker
explains, companies must find and build
temporary advantages through market
disruption. Specifically, companies must
move up escalation ladders whereby
advantage is continually created, eroded,
destroyed, and recreated by maneuvers in
the four arenas of (i) price and quality; (ii)
timing and know-how; (iii) stronghold
creation/invasion; and (iv) deep pockets.
Economics and Linda Business ethics encompass business
Philosophy Treviño & management theory; theories of individualism
Katherine vs. collectivism; free will among participants
Nelson in the marketplace; the role of self-interest;
invisible hand theories; the requirements of
social justice; natural rights—especially
property rights—in relation to the business
enterprise; the social responsibilities of
businesses; and, unavoidably, ethical
leadership. Treviño and Nelson, to name but
Principal Brief Observation
Publication(s)
products or services), D'Aveni advocates
that companies in hypercompetitive
markets should seek temporary
advantages rather than structure
themselves to achieve equilibrium in their
environment: toward this, what is needed
is a new set of guidelines, aka the new
7S's framework, that provides a vision for
generating the next market disruption.
D'Aveni's new 7S's framework hangs
vision, capability, and tactics, on (i)
stakeholder satisfaction; (ii) strategic
soothsaying; (iii) positioning for speed; (iv)
positioning for surprise; (v) shifting the
rule of the game; (vi) signaling the
strategic intent; and (vii) simultaneous and
sequential strategic thrust. There is
something of the Big Idea in D'Aveni's
definition of and approaches to
hypercompetition: much as Porter's (and
so many others'), time will (rapidly) tell.
Typically, Big Ideas are framed to
encompass and explain all: but, it is not
clear if hypercompetition is the hallmark of
new markets and industries or any market
and industry; however refreshing the Big
Idea may be, hypercompetition does not
speak to the public or civil society sectors
either Paradoxically, D'Aveni's
overarching message is that the only real
sustainable competitive strategy lies in a
company's ability to reinvent itself; and,
that is nothing new.
Managing Business Conceptual clarity is hard to come by and
Ethics: Straight theory testing is made difficult when
Talk about How to theories involve many constructs (e.g.,
Do It Right (1995) leader traits, skills, values, and behaviors;
follower values, perceptions, and needs;
group-level and organizational processes;
and multiple outcomes and criteria. But,
the need for ethical leadership is a sine
qua non and the key messages of
 13

When Historical Eminent Basic Theory & Application Principal Brief Observation
Foundation Thinker Publication(s)
two, have developed a systems approach to eminent thinkers such as Treviño and
thinking about organizational ethics, the Nelson are pertinent and will endure.
premise being that ethical cultures depend on
aligning multiple formal and informal systems
to send consistent messages about expected
behavior. The formal systems by means of
which to promote ethical cultures include the
selection system; policies and codes;
orientation and training; the performance
management system; the authority structure;
formal decision processes; and formal
communications from leadership. The
informal systems by means of which ethics
can be advanced in organizations include the
behavior of role models and heroes; norms of
daily behavior; organizational rituals; and
myths, stories, and language.
Organization Karl Weick Sensemaking is the process by which people Sensemaking in Organization theory and strategic
Theory and give meaning to collective experience. Weick Organizations management have been dominated by a
Strategic introduced the concept the 1970s to (1995) focus on decision-making and the concept
Management; encourage a shift away from the traditional of strategic rationality: however, the
Human focus of organization theorists on decision- rational model ignores the inherent
Relations and making and toward the processes that complexity and ambiguity of real-world
Behavioral constitute the meaning of the decisions that organizations and their environments.
Science are enacted in behavior. Weick articulated the Weick broke much new ground when he
principal attributes of sensemaking to be: (i) defined how the sensemaking process
sensemaking starts with noticing and shapes organizational structure and
bracketing; (ii) sensemaking is about labeling; behavior; surely, there is much more work
(iii) sensemaking is retrospective; (iv) to de done in this area.
sensemaking is about presumption; (v)
sensemaking is about action; and (vi)
sensemaking is about organizing through
communication. The idea was that a
consciously detailed process of sensemaking
can help us understand not only the impact
that a certain experience has but also what
made that experience have the impact of
interest; crucially, understanding the process
of sensemaking empowers us to build more
impactful experiences in the future.
Organization Clayton Innovation plays an important role in an The Innovator's Much as In Search of Excellence:
Theory and Christensen organization’s success and Christensen Dilemma (1997) Lessons from America's Best-Run
 14

When Historical Eminent Basic Theory & Application
Foundation Thinker
Strategic made out two types of innovative technology.
Management There are what he called sustaining
technologies, which merely improve existing
products and services, and disruptive
technologies (e.g., mobile phones, digital
photography, and internet shopping) that
completely change the nature of a market or
business (and are typically cheaper, simpler,
smaller, and, frequently, more convenient to
use). Focusing on disruptive technology,
Christensen showed why most companies
miss out on new waves of innovation and
presented a set of rules for capitalizing on the
phenomenon. He noted that successful
companies (i) develop the disruptive
technology with the "right" customers, not
necessarily their current customer set; (ii)
place the disruptive technology into an
autonomous organization that can be
rewarded with small wins and small customer
sets; (iii) fail early and often to find the correct
disruptive technology; and (iv) allow the
disrupting organization to utilize all of the
company's resources when needed but are
careful to make sure the processes and
values were not those of the company.
2000s Quantitative Various Business process management can be traced
Methods and to ancestral record management, studies of
Engineering; workflows in the 1960s–1970s, and business
Organization process reengineering in the 1990s.
Theory and Specifically, and commonly by means of
Strategic information and communications technology,
Management business process management addresses
how organizations can discover, model,
analyze, measure, improve, optimize, and
automate processes between systems (that
may involve human interaction), this to
automate and streamline to save time and
money and put the greatest energy into the
most strategic and vital activities. A complete
business process management framework
addresses four elements: (i) workflow
management; (ii) content management; (iii)
Principal Brief Observation
Publication(s)
Companies (1982), the Innovator’s
Dilemma (1997) has been criticized as a
theory that explains little other than the
instances when it happens to be true. This
said, there is no doubt that Christensen,
climbing on the shoulders of such as
Drucker and Joseph Schumpeter, helped
place innovation on the map. The purview
of innovation has since expanded greatly
to include business model innovation,
management innovation, and social
innovation, all of which invite new
theories.
Various In theory at least, business process
management looks at processes that may
span an entire organization. In practice,
while the steps can be viewed as a cycle,
all sorts of constraints (e.g., economic,
political, time, etc.) are likely to limit the
process to a few iterations. The true value
of business process management may lie
in the discovery of informal business
processes; but, discovery frequently plays
second fiddle to the enshrinement of
formal processes.
 15

When Historical Eminent Basic Theory & Application Principal Brief Observation
Foundation Thinker Publication(s)
enterprise application integration; and (iv)
process monitoring.
Organization Mary Uhl- With roots in complexity science, complexity Complexity Approaches that are not conditioned by
Theory and Bien & Russ leadership theory aims to broaden leadership Leadership: Part 1: organizational boundaries seem most
Strategic Marion study beyond its traditional focus on the Conceptual relevant to the quickening complexity of
Management actions and influence of leaders to Foundations (2007) our times. Potentially, complexity
consideration of leadership as a broader— leadership theory can shift leadership
dynamic and interactive—organizing process. from the industrial age to the knowledge
Complexity leadership theory proposes a era. Surely, there is much more work to
leadership paradigm that focuses on enabling de done in this area.
the learning, creative, and adaptive capacity
of complex adaptive systems within the
context of knowledge-producing
organizations: the framework includes three
entangled leadership roles (i.e.,
administrative leadership, adaptive
leadership, and enabling leadership) that
reflect a dynamic relationship between the
bureaucratic, administrative functions of
organizations and the emergent, informal
dynamics of complex adaptive systems.
Human Edward Deci; The concept of "drive" in motivational theories Self-Determination Eminent thinkers have dismissed the
Relations and Marylène has been around since the early 1900s but Theory and Work carrot-and-stick approach ever since
Behavioral Gagné; Pink has argued against old models of Motivation (2005); Taylor turned it into the cornerstone of
Science Daniel Pink; motivation driven by extrinsic factors (e.g., Drive: The scientific management in the early 20th
Richard fear, reward) and laid forth the premise that Surprising Truth century. Pink offers another—very
Ryan human motivation is largely intrinsic. The About What optimistic—rebuttal: people will do more if
intrinsic aspects of motivation can be divided Motivates Us they are given the opportunity to work on
into: (i) autonomy—the desire to be self- (2011) their own time, be creative, and do good.
directed; (ii) mastery—we want to get better Missing from Pink's arguments, however,
at doing things; and (iii) purpose—connecting is the Maslowian idea that there are five or
to a cause larger than yourself. Reference to six different needs, attention to which
Pink's work must acknowledge Deci, Gagné changes over time. What is more,
and Ryan's work on self-determination, which motivation may not serve if what is
focuses on the degree to which an individual's needed to perform (i.e., means and
behavior is shaped by universal, innate, and opportunity) is missing. Context is
psychological needs for competence, everything.
autonomy, and relatedness.
Note. The English verb "manage" comes via the French word mesnagement (or ménagement) from the two Latin words manus
(hand) and agere (to act): it stood for housekeeping, including the care of domestic animals. Management is not a modern
conceptualization: evidence of management thinking in history can be found (among many others) in:
• The Code of Ur-Nammu (~2,100–2,050 BCE)—The oldest (surviving) code of law.
 16

• Egyptian papyri (~3,000–1,300 BCE)—These contain miscellaneous information on administration, law, and management.
• The Code of Hammurabi (~1,754 BCE)—The oldest (surviving) extensive code of law.
• The Art of War (~771–476 BCE)—Sun Tsu wrote the first military treatise, with each of the 13 chapters devoted to a distinct
aspect of warfare.
• Socrates (469–399 BCE)—Philosopher and teacher (ethics, morality, government).
• Aristotle (384–322 BCE)—Philosopher and teacher (formal inductive reasoning).
• Meditations (Undated)—Marcus Aurelius (121–180) recorded ideas on Stoic philosophy and made notes to himself.
• The Quipu (also called khipu) (~1400–1532)—A method based on strings and knots used by the Incas (and other ancient Andean
cultures) to keep records and communicate information in the absence of an alphabetic writing system.
• Summa de Arithmetica, Geometria, Proportioni et Proportionalita (1494)—Luca Pacioli is recognized as the father of accounting.
• The Prince (1532)— Niccolò Machiavelli offered practical guidance on getting and retaining political power.
• Cameralists (1700s)—German and Austrian advisers on management of the state's finances and the science and technology of
administration.
• Political Arithmetick (1690)—Sir William Petty is recognized as the father of political economy.
• The Theory of Moral Sentiments (1759) and An Inquiry into the Nature and Causes of the Wealth of Nations (1776)—Adam Smith
is recognized as the father of classical economics.
Note. The elements that make up the taxonomy of management theories—including others not listed there—are usually (and
sometimes subjectively) aggregated into schools. The high-level taxonomy adopted in this précis classifies them into economics and
philosophy, human relations and behavioral science, organization theory and strategic management, and quantitative methods and
engineering. (The number of management theories that fall under human relations and behavioral science is high—about 60%, which
suggests that psychology has played a preponderant role in the development of management theories.) Another (common) high-level
taxonomy detects—or rather ascribes—chronological order, with management theories classified as pre-industrial (administrative,
legal, military, political), political economy, scientific management, bureaucracy (public administration), classical, neo-classical, and
modern (contingency, systems, etc.). Yet another taxonomy categorizes management theories by the nuts and bolts of their outlook:
financial management, human resource management, information and communications technology management, marketing
management, operations management and production management, and strategic management. Otherwise, Rita McGrath proposes
that we have seen three "ages" of management since the industrial revolution, each placing emphasis on a different theme, namely,
execution, expertise, and empathy. (McGrath, 2014) For McGrath (2014), the focus of the first era (up to the 1920s) was wholly
on execution of mass production. The second era (from the 1930s to the 1990s, one might say) witnessed such writers as Elton
Mayo, Mary Parker Follett, Chester Barnard, Max Weber, Chris Argyris, Douglas McGregor, and Peter Drucker importing theories
from other fields (e.g., psychology, sociology) so that managers might with expertise provide advanced services. Beyond execution
and expertise, McGrath sees that in the third era organizations should with empathy create complete and meaningful experiences.
Note. Sometimes, the work of eminent thinkers spans decades: for example, Peter Drucker's first book, Concept of the Corporation,
appeared in 1946; his last, The Five Most Important Questions, was published posthumously in 2008, more than 60 years later.
Hence, what chronology is given in this précis flags principal publications only and should be considered approximate.
 Figure: Select Timeline of Management Theories

1900s •1908 – The Assembly Line

•1911– Scientific Management
1910s
•1916 – Fayol's Principles
•1930 – Bureaucracy & Public Administration
1930s
•1932 – Hawthorne Studies
•1945 – Action Learning
1940s
•1946 – Action Research
•1951 – Sociotechnical Systems Theory
•1954 – Hierarchy of Needs
1950s
•1954 – The Practice of Management
•1959 – Hygiene & Motivational Factors
•1960 – Theory X & Theory Y
1960s •1964 – The Managerial Grid
•1969 – Systems Theory
•1973 – Vroom–Yetton Decision Model
•1973 – The Nature of Managerial Work
1970s
•1978 – Human Competence
•1978 – Transformational & Transactional Leadership
•1980 – Cultural Dimensions
•1980 – Competitive Strategy
•1980 – Supply Chain Management
1980s
•1982 – Excellence
•1982 – Total Quality Management
•1985 – Organizational Culture
•1990 – Core Competency
•1990 – Learning Organization
•1991 – Scenario Planning
1990s •1994 – Hypercompetition
•1995 – Ethics
•1995 – Sensemaking
•1997 – Disruptive Innovation
•Early 2000s – Business Process Management
2000s •Mid-2000s – Complexity Leadership
•2011 – Drive

References

McGrath, R. (2014). Management's three eras: A brief history. Harvard Business Review. July.
Retrieved from https://hbr.org/2014/07/managements-three-eras-a-brief-history.
Smith, K., & Hitt, M. (Eds.). (2007). Great minds in management: The process of theory
development. Oxford: Oxford University Press.

View publication stats