Management Theories

 Management theory

Management theories are sets of ideas and rules that are designed to help in management. They Facilitate proper management planning, organisation, leadership and control. The four main types of management theories that we studied are:-

1-Classical school.
It is one of the first management theories developed which emphasis on the structure of business and the hierarchy . Henry Fayol is one of the main developers of this time of management. He mentioned these important notes for the success of the business

·         Division of work: Division of work and specialization produces more and better work with the same effort.

·         Authority and responsibility: Authority is the right to give orders and the power to exact obedience. A manager has official authority power

·         Discipline: Obedience and respect within an organization are absolutely essential.

·         Unity of command: An employee should receive orders from only one superior.

2-Human relations school.
Elton Mayo is the main developer of this theory

The research he carried established the following suggestions for the success of business

• Employee behaviour depends primarily on the social and organisational circumstances of work.
• Leadership style, group cohesion and job satisfaction are major determinants of the outputs of the working group.
• Employees work better if they are given a wide range of tasks to complete.
• Standards set internally by a working group influence employee attitudes and perspectives more than standards set by management.

The usefulness of the human relations approach

The school recognised the role of interpersonal relations in determining workplace behaviour, and it demonstrated that factors other than the pay factor can actually motivate workers.

However, the approach overestimates the commitment, motivation and desire to participate in decision making of many employees.

3-Systems approach

The system approach to management is a concept which views company as a relationship purposive system that consists of several business sections. The system can be divided into 3 simple parts which are input, process and output.

input involves the raw materials, funds and technology for example
The process refers to the activities related to management
Output are simply the products or the results

4-Contingency theory

Contingency theory is a behavioral theory that claims that there is no single best way to design organizational structures. It states that the best way of organizing a company is contingent upon the internal and external situation of the company.