Theory of Management

1. Scientific Management Theory

Definition and Name Proponent

Frederick Taylor, an American mechanical engineer who was one of the first management
theorists, was a pioneer in scientific management theory. He and his colleagues were one of the
first to scientifically examine work performance. Taylor's philosophy emphasized the fact that
forcing people to work hard is not the best way to optimize results. Instead, Taylor
recommended simplifying the task to be more productive.

Realistic Example

Some of the scientific management theories that are not in use today are the idea that
managers are rigorously led and employees simply work. Today, most companies provide
employees with room for growth and development, rather than maintaining a clear barrier
between management and employees. This theory has had a major impact on how businesses
operate and how they can create a more balanced wage system, better training and a more
efficient workforce.

2. Administrative Management Theory

Definition and Name Proponent

It was developed by Henri Fayol in the early 20th century and is still considered to be very
relevant today. Fayol created 14 principles that he believed to be the foundation of a strong
and successful business. It's important to know that Fayol agreed with many of Taylor's ideas
and ideologies, but the main difference is that he focuses on the process by which Taylor gets
the job done most effectively, and Fayol focuses on the organizational structure of the entire
company. It focuses on management processes and management principles and provides a
theory applicable to the entire organization. Fayol has identified five core elements of the
management process which is planning, organization, command, coordination, and control.
Realistic Example

Many retailers empower cashiers to overwrite prices without the need for supervisors to
approve changes. More and more companies are allowing call center agents to make one-time
chargebacks without permission.

3. Systems Management Theory

Definition and Name Propone

Systems management provides an alternative approach for planning and managing your
organization. Systems management theory suggests that an organization like the human body is
made up of multiple components that work in harmony to enable larger systems to function
optimally. According to theory, an organization's success depends on several key factors,
including synergies, interdependencies, and interrelationships between different subsystems.

Realistic Example

Employees are one of the most important parts of the company. Other elements that are
essential to a company's success are departments, work groups, and business units. In reality,
executives need to evaluate patterns and events within their organization to determine the
best management approach. This allows them to work together in different programs and act
as a collective rather than as an isolated entity.

The system receives sufficient information, energy, or material from the environment to
balance product development.

4. Human Relations Management Theory

Definition and Name Proponent

As the title suggests, relationship management theory focuses on human interactions and
relationships. Elton Mayo believed that all early business theories focused only on how money
affects employee performance. He believed that there were other factors that could influence
employee behavior and workplace performance. To test his theory, he began his research at
the Western Electric Hawthorne Works in Chicago in the 1920s and 1930s, and based on what
he learned, today a unique management known as the Hawthorne effect. Developed the
theory.

Realistic Example

The Hawthorne effect occurs when people are being watched or coordinating their behavior
when they are being watched. For example, employees can work harder and harder because
they know that their boss is paying close attention. Also, because parents are watching,
children can behave better.

5. General System Theory

Definition and Name Proponent

Ludwig von Bertalanffy believed that your body was the sum of all parts. For example, the
nervous system works with the digestive system, which works with all organs and muscle
groups to enable a person to function. If one physical function is not functioning, the entire
body cannot function effectively. People are the healthiest and most functional when all
aspects of their existence work together effectively. He also argued that the environment could
affect each component. Fractures of the legs can interfere with walking, and the flu can be
bedridden for days. Both of these issues can affect a person's overall productivity.

Realistic Example

His research shows that external factors can prove to be toxic to the environment. It refers to
the human body, but the same applies to the workplace. Negative and other toxic attitudes can
adversely affect motivation and performance at all levels of the organization. And, as his theory
suggests, even if one component of an organization isn't working properly, it has an undesired
effect on the rest of the organization.
6. Bureaucratic Management Theory

Definition and Name Proponent

The term bureaucracy tends to sound derogatory or negative because it means that
bureaucracy is an impersonal machine that emphasizes number and performance rather than
people's well-being. However, the intended meaning is actually quite different. At the end of
the 19th century, Max Weber created a bureaucratic business theory. In contrast to today's
interpretation of the word, Weber's bureaucracy meant carefully developing and formulating
company goals and divisions of labor. This included not only the development of the company's
management hierarchy, but also the promotion and development of employees. Weber added
some important ideas of his own, based on Taylor's theory. Like Taylor, Weber believed that
efficiently completing tasks was a key factor in success, and recommended detailed records at
all levels to monitor efficiency and opportunities. He agreed that every employee should have
clear job expectations and that each job should be standardized to maximize productivity. The
biggest difference between scientific theory and bureaucratic theory is that Weber believed in
the importance of human emotions.

Realistic Example

For example, the term management is often replaced by leadership. The argument for this is
that leadership is a mediocre and structured task, and leadership is a unique and heroic act. In
this thinking process, managers are judged negatively and leaders are evaluated and
acknowledged. Managers and executives in many places appear to work in the same way, but
it's clear that the focus is on removing terms that are perceived as bureaucratic tones from
today's work environment.

7. X&Y Management Theory

Definition and Name Proponent
Douglas McGregor developed the X & Y management theory, claiming that all managers could
be divided into two categories, based on observations from the 1950s and 1960s. The first
category, known as Theory X, explains that managers have a negative attitude towards
employees and believe that employees need to be forced or persuaded to work. Theory X
Manager tends to be fine-tuned with the belief that employees have no motivation to get their
work done. This theory can be traced back to scientific management theory and the focus on
employee development and output through input.

Realistic Example
Theory Y Manager believes that employees are naturally motivated to work. Theory Y managers
value helping employees succeed by providing learning and development opportunities. Theory
Y focuses on teamwork and individual work ideas. McGregor argued that a team environment
focused on individual professional development produces better results and a healthier work
environment. Theory Y continues to prove its relevance and still exists in today's business
world.

8. Classical Management
Definition and Name Proponent
Classical management theory is based on the idea that employees have only physical needs.
Classical management theory focuses only on the economy of the employee organization, as
employees can meet these physical needs with money. Because of this narrow view of the
workforce, classical business theory ignores personal and social needs that affect employee job
satisfaction. As a result, classical management theory advocates seven main principles.
1. Profit maximization
2. Labor specialization
3. Centralized leadership
4. Streamlined operations
5. Emphasis on productivity
6. Single-person or select-few decision making
7. Priority to the bottom line

Realistic Example
It is exercised by a small number of selected people who have exclusive control over the
decisions and directions taken by the company. Among these selected minority, middle
management controls the day-to-day activities of the employees at the bottom of the pecking
order. And this all revolves around the idea that employees will work harder and be more
productive when they are paid in ever-increasing their salary.
9. Contingency Management

Definition and Name Proponent

Fred Fiedler and others invented emergency management theory in the 1950s and 1960s.
Fiedler based on the idea that effective leadership is directly related to the qualities of a leader
in a particular situation. This idea has given rise to the belief that there are many qualities that
are effective in all situations and that different leadership qualities are needed in different
situations. Therefore, leaders need to be flexible and adapt to the changes that markets,
businesses and teams need. Fiedler extends this concept from the focus of individual
management to a theory that focuses on a much broader organization. Fiedler's theory is that
there is no one management approach that is suitable for all situations and all organizations.

Realistic Example

Individual managers who agree with contingency management theory must be able to identify
the appropriate leadership style for a given situation. You also need the willingness and ability
to apply this leadership style quickly and effectively, as needed. In a broad sense, companies
and managers who stick to contingency management theory, whether intentional or
unintentional, primarily maintain team coordination and fit well into all projects and situations.
I will do my best. Ultimately, according to contingency management theory, there is more than
one best way to do things. The way a company decides to organize depends on the
environment in which it operates.
10. Modern Management

Definition and Name Proponent

It was developed as a direct answer to classical business theory. Modern businesses face rapid
change and complexity that appear to grow exponentially overnight. Technology is both the
cause and the solution to this dilemma. Thus, companies incorporating modern business theory
into their operations are trying to blend technology with some mathematical analysis into the
human and traditional elements of the organization.

Realistic Example

Use mathematical techniques to analyze and understand the relationship between managers
and employees. The employee does more than just work for money. Instead, they work for
happiness, satisfaction, and a desirable lifestyle. Modern business theory incorporates the idea
that people are complex. Their needs change over time and they have a variety of talents and
skills that the company can develop through on-the-job training and other programs. At the
same time, management can use mathematical techniques such as statistics, costs, returns, and
return on investment analysis to make rational, emotionally unaffected decisions.
Citations

https://courses.lumenlearning.com/wm-organizationalbehavior/chapter/different-management-theories/

https://nanoglobals.com/glossary/henri-fayol-management-theory/

https://boycewire.com/hawthorne-effect-definition

https://courses.lumenlearning.com/introductiontocommunication/chapter/systems-theory-paradigm/

https://www.mindtools.com/pages/article/newTMM_Taylor.htm

https://courses.lumenlearning.com/wm-organizationalbehavior/chapter/different-management-theories/

https://getsling.com/blog/management-theories/