2. THEORIES OF MANAGEMENT
Management theories are the set of general rules that guide the managers
to manage an organization. Theories are an explanation to assist employees
to effectively relate to the business goals and implement effective means to
achieve the same.
General Management Theories:
There are different management theories are there
1. Frederick Taylor – Theory of Scientific Management.
2. Henri Fayol – Administrative Management Theory.
3. Max Weber - Bureaucratic Theory of Management.
4. Elton Mayo – Behavioral Theory of Management (Hawthorne Effect).
5. General Systems Theory
6. X&Y Management Theory
7. Kurt Lewin Field Theory
3. 1. FREDERICK TAYLOR’S THEORY
OF SCIENTIFIC MANAGEMENT:
Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was an
American mechanical engineer who sought to improve industrial
efficiency.
Taylor’s theory of scientific management aimed at, improving
economic efficiency, especially labor productivity.
Taylor was regarded as the father of scientific management and was
one of the first management consultant.
Talor believed that the management could be formulated as an
academic discipline, and that the best results would come from the
partnership between a trained and qualified management and a
cooperative and innovative workforce.
4. Taylor's Differential Piece Rate Plan:
If Efficiency is greater than the defined Standard then workers should be
paid 120 % of Normal Piece Rate.
If Efficiency is less than standard then workers should be paid 80% of Normal
Piece Rate.
Taylor’s Principles of Scientific Management.
Four Principles of Scientific Management are:
1. Replace rule of thumb work method with methods based on a scientific
study of the tasks. Divide work nearly equally between managers and
workers, so that the managers apply scientific principles of management in
planning the work.
2.Scientifically select, train, and develop each employee rather than passively
leaving them to train themselves.
3. Provide “ detailed instruction and supervision of each worker in the
performance of that worker’s discrete task.
4.Establish fair levels of performance and pay a premium for higher
performance.
5. Henri Fayol (29 July 1841 – 19 November 1925) was a French mining
engineer, mining executive, author and director of mines who developed
general theory of business administration that is often called Fayolism.
Henri Fayol known as the Father of Management laid down the five functions
of Management.-
To forecast and plan- examine the future and draw up plans of action.
To organize- build up the structure, material and human of the undertaking.
To command- maintain activity among the personnel.
To co ordinate- bind together, unify and harmonious activity and effort.
To control- See that everything occurs in community with policy and
practice.
2. HENRI FAYOL’S ADMINISTRATIVE
MANAGEMENT THEORY:
6. Fayol also synthesized 14 principles for organizational design and
effective administration.
Fayol’s 14 principles of Management.-
1.Division of Work.
2.Equity.
3.Discipline.
4.Initiative.
5.Authority and
Responsibility.
6.Esprit De Corps.
7.Subordination of Individual
Interest to General Interest
8.Stability of Tenure.
9.Remuneration.
10.Unity of Direction.
11.Centralization.
12.Scalar Chain.
13.Order
14.Unity of Command.
7. 3. MAX WEBER’S BUREAUCRATIC
THEORY OF MANAGEMENT:
Maximilian Carl Emil Weber was a German Lawer, politician,
sociologist and economist made a distinction between authority and
power. Weber believed that power induces obedience through force
or the threat of force which induces individuals to adhere to
regulations.
According to Max Weber, there are three types of power in an
organization:-
1.Traditional Power
2.Charismatic Power
3.Bureaucratic Power or Legal Power.
8. Features of Weber’s Bureaucracy:
1.Division of Labor.
2.Formal Hierarchical Structure.
3.Selection based on Technical Expertise.
4.Management by Rules.
5.Written Documents.
6.Only Legal Power is Important.
7.Formal and Impersonal relations.
9. 4. ELTON MAYO’S
BEHAVIORAL
THEORY OF
MANAGEMENT:
Elton Mayo was an Australian born psychologist, industrial
researcher,
and organizational theorist.
Mayo's work helped to lay the foundation for the human relations
movement
Elton Mayo's experiments showed an increase in worker productivity
was produced by the psychological stimulus of being singled out,
involved, and made to feel important.
Hawthorne Effect, can be summarized as “Employees will respond
positively to any novel change in work environment like better
illumination, clean work stations, relocating workstations etc.
10. GENERAL SYSTEMS
THEORY
In the 1940s, biologist Ludwig von Bertalanffy created his General Systems
Theory.
He believed that our body is the sum of all parts. For example, nervous
system works together with our digestive system, which work with each
organ and muscle group to allow a person to function.
If one function of the body fails to work, the body as a whole cannot
effectively operate. Humans are most healthy and functional when all aspects
of their being are working together effectively. He also argued that the
environment can have an effect on each of the parts.
A broken leg can prevent you from walking or the flu can have you
bedridden for days. Each of these issues can damage the overall productivity
of a person.
His work shows that external factors can prove to be toxic to an
environment.
Negativity and other toxic outlooks can have a harmful effect on motivation
and performance at all levels in an organization. And, like his theory states,
even when only one component of the organization isn’t executing properly,
it will have an undesirable effect on the rest of the organization.
11. X&Y MANAGEMENT
THEORY
Douglas McGregor developed the X&Y Management Theory in the
1950s and 1960s, arguing that all managers can be grouped into two
categories.
The first category known as Theory X explains that managers have a
negative view of their employees and believe that employees need to
be forced or coaxed into working.
Theory X Managers tend to micromanage with the belief that
employees will not motivate themselves to complete their work.
This theory can be linked back to the scientific management theory
and its focus on output above employee development and input.
12. On the opposite side of the spectrum, Theory Y Managers believe that
employees are inherently motivated to work.
Theory Y managers value the importance of helping their employees
to thrive by providing opportunities for learning and development.
Theory Y is focused on the idea of team versus independent work.
McGregor argued that a team environment paired with an emphasis
on individual professional development produces better results and a
healthier work environment.
Theory Y continues to prove its relevance and is still present in
today’s business world.
13. KURT LEWIN FIELD
THEORY
Kurt Lewin was a German American psychologist and often recognized as
the “Founder of Social psychology”.
Lewin's theory is called field theory as to a psychologist field means the
total psychological world in which a person lives at a certain time.
Lewin states that each person exists within a field of forces. The field of
forces to which the individual is responding or reacting is called his life-
space.
14. LEWIN IDENTIFIED THREE STAGES OF CHANGE
LEWIN THREE-STEP MODEL CHANGE THEORY,
UNFREEZE THE CURRENT BEHAVIOURS AND PROCESSES,
MAKE THE CHANGES YOU NEED,
THEN PRACTICE AND FREEZE THE NEW BEHAVIOURS AND PRACTICES INTO EVERYDAY
ACTIONS.
