There are a variety of management theories that have been developed over the years. These theories can be broadly classified into three main categories: classical management theory, human relations theory, and systems theory.
Classical management theory is based on the concept of scientific management. This theory focuses on the efficient use of resources and the use of scientific methods to improve productivity. Classical management theory has been criticised for its lack of concern for human factors and for its focus on efficiency over effectiveness.
Human relations theory is based on the idea that employees are motivated by social factors such as needs for belonging and recognition. This theory emphasises the importance of communication, teamwork, and leadership in creating a motivated workforce.
Systems theory is based on the idea that organisations are complex systems that need to be managed as a whole. This theory emphasises the importance of understanding how different parts of the organisation interact with each other in order to achieve effective management.
- 1) Systems Theory.
- 2) Principles Of Administrative Management.
- 3) Bureaucratic Management.
- 4) Scientific Management.
- 5) Theories X And Y.
- 6) Human Relations Theory.
- 7) Classical Management.
- 8) Contingency Management.
Benefits of management theories
Leaders should research and use well-established management theories in the workplace for a number of reasons, among them:
What are management theories?
A collection of concepts known as management theories offer general guidelines for running a company or organization. They discuss how managers carry out plans to achieve organizational objectives and inspire staff to work to the best of their abilities.
Typically, leaders implement ideas from various management theories that are most appropriate for their workforce and corporate culture. Despite the fact that many management theories date back hundreds of years, they continue to offer useful frameworks for managing teams in the workplace and conducting business today.
Types of management theories
Here are seven important management theories to be aware of:
1. Scientific management theory
In the late 1800s, Frederick Taylor, one of the pioneers of scientific study of work performance, adopted a scientific management philosophy. Taylor’s principles advocated using the scientific method rather than the leader’s judgment or the team members’ independent judgment when performing tasks at work.
His emphasis on finding the best way to complete a task in order to maximize workplace efficiency was beneficial, but it ignored the humanity of the individual. In its purest form, this theory is not often used today, but it showed leaders the value of workplace effectiveness, the necessity of ensuring team members received adequate training, and the importance of collaboration and teamwork between managers and employees.
2. Principles of administrative management theory
This theory was created in the 19th century by senior executive and mining engineer Henri Fayol, who looked at an organization from the perspective of the managers and scenarios they might face.
3. Bureaucratic management theory
The bureaucratic management theory, created by Max Weber, focuses on arranging organizations in a hierarchy so that there are unambiguous guidelines for governance. His guiding principles for developing this system include a chain of command, a distinct division of labor, the separation of the owner’s personal and business assets, stringent rules and regulations, meticulous record-keeping and documentation, and the hiring and promoting of staff members based on their abilities and performance.
The development of the standards and procedures that are the foundation of the majority of organizations today was greatly influenced by this theory.
4. Human relations theory
Performance improved with each modification he tested. In the end, he came to the conclusion that the improvements weren’t the result of the changes but rather the outcome of the researchers giving the employees’ input and making them feel valued.
These studies led to the hypothesis that workers are more driven by individual attention and belonging to a group than by pay or even working conditions.
5. Systems management theory
According to this theory, in order for a business to operate at its best, all of its parts must cooperate. The cooperation, interdependence, and relationships between the various subsystems are therefore essential for the organization’s success. Employees are the most crucial elements of a business, and departments, workgroups, and business units are all additional essential components for success, according to this theory.
According to the theory of systems management, managers should assess patterns and events within the organization to choose the most effective management strategy. To ensure the success of their programs, they must cooperate and work together.
6. Contingency management theory
This theory was created by Fred Fiedler, and its main argument is that different organizations require different management strategies. According to Fiedler, a leader’s characteristics directly affect how well they manage their team. He contends that there are leadership qualities that are applicable in all circumstances and that a leader needs to be adaptable to a changing environment.
7. Theory X and Y
He came to the conclusion that large organizations might use theory X to maintain everyone’s attention on achieving organizational goals. Smaller companies are more likely to employ theory Y because they value employee input and encourage creativity.
Tips for using management theories in the workplace
Here are some suggestions to assist you in implementing these management theories’ top practices in your place of business:
Invest in employee training
By first observing work processes and then developing policies that advocate best practices, you can increase employee productivity, Frederick Taylor argued in his scientific management theory. For your employees to be more productive in their respective roles, invest in training. Such training typically increases their output and enhances their overall performance on the job. Since team members’ productivity can be increased by your attention to them and your interest in their work, human relations theory can also have an impact on productivity.
Give employees power in making decisions
Use the human relations theory as inspiration to promote interpersonal interactions and foster a collaborative environment. Give your team members more power in making decisions. This might entail giving them more authority within their current responsibilities or allowing them to contribute more to the department’s objectives and plans. Consider forming smaller teams within your department and giving them more freedom to make decisions in order to achieve organizational objectives.
Flatten the organizational hierarchy
According to research, flattening the hierarchy may boost local innovation and hasten decision-making. To encourage a cohesive, collaborative workplace, this might entail removing titles or senior positions. It might also entail giving team leaders greater autonomy over decision-making and doing away with the requirement for decision-making to go all the way up the chain of command.
Classical Management Theory
FAQ
What are the 4 major management theories?
The five functions of management as outlined by Henri Fayol are: Planning, Organizing, Command, Coordination, and Control. Of the six industrial activities listed in Henri Fayol’s management theory, these five make up “management.”
What are the 7 theories of management?
‘Kimani outlines four major management theories for the basis of organizations: bureaucratic theory, scientific management theory, behavioral management theory, and human relations theory.’ Understanding organizations comes from understanding management theory.
