11.01.2020
Posted by admin
The workplace has changed dramatically since the first management theories were conceived. Modern management is not a one-size-fits-all practice. Therefore, it is helpful to gain an understanding of management theories and their applications. Common Concepts in Management TheoriesManagement theories all revolve around similar concepts. Managers are expected to handle processes, people, information and other duties as necessary. A manager may need to motivate their subordinate employees or determine how best to improve operational processes.
Management theories provide frameworks for successfully handling those responsibilities. Managers must be responsible for the performance of their teams toward organizational goals. Reaching business goals might include reducing human error or standardizing processes.
Management theories help to clarify these types of goals for managers and inform on how best to realize those goals. Where Did Management Theories Originate?Mass production and the Industrial Revolution brought about new requirements for managing people and processes.
As companies began to grow in size and production, business owners increasingly needed managers to run their daily operations. Prior to the Industrial Revolution, only a few organizations and militaries required theories for management. As a result of expanding industry, the practice of management became a major theoretical consideration in the study of business.
How Are Management Theories Classified?Certain management theories have become integral to modern business practices. There are three major classifications for management theories: Classical Management Theory, Behavioral Management Theory and Modern Management Theory. These classifications represents a different era in the evolution for management theories. Each of these classifications further contain multiple sub-theories.Classical Management Theory centers around execution and maximizing production.
Behavioral Management Theory focuses increasingly on human elements and viewing the workplace as a social environment. Modern Management Theory builds on the previous two theories, while incorporating modern scientific methods and systems thinking. Classical Management TheoryClassical Management Theory is the oldest management theory. Classical Management Theory focuses on operations and the creation of standards to increase production output.
In Classical Management Theory, compensation is considered the primary motivation for employees. A manager practicing Classical Management Theory would be focused on improving output and rewarding high-performing employees through wages or bonuses.There are three primary theories that comprise the Classical Management Theory:Scientific Management TheoryScientific Management Theory is a very early management theory focused on minimizing waste and reducing production times. It was developed by Frederick Taylor, who attempted using a scientific approach for improving operations. Taylor’s theory emphasizes incentivizing employee performance and reducing “hit and trial” practices.Administrative Management TheoryAdministrative Management Theory was developed by Henri Fayol, who is considered to be a founder of management theory. This theory considers all of the many activities that a business must conduct. Management is considered a primary business activity and this theory provides detailed guidelines for managers.Bureaucracy TheoryBureaucracy Theory promotes reason to guide management decisions, rather than charisma or nepotism. Developed by sociologist Max Weber, this theory emphasizes formal authority systems.
Unity and the authority of organizational hierarchies are central to Bureaucracy Theory. Behavioral Management TheoryIncreasingly complex industries and organizations gave rise to more human interests in the workplace. Management theories began to include more people-oriented methods.
Human behavior and satisfying the interpersonal needs of employees became more central to management. A manager practicing Behavioral Management Theory might motivate teamwork through fostering a collaborative atmosphere.There are two major theories that make up Behavioral Management Theory:Human Relations TheoryHuman Relations Theory considers the organization as a social entity. This theory recognizes that money alone is not enough to satisfy employees. Morale is considered to be integral to employee performance. The major weakness of this theory is that it makes several assumptions about behavior.Behavioral Science TheoryBehavioral Science Theory combines elements of psychology, sociology, and anthropology to provide a scientific basis. It examines why employees are motivated by specific factors, such as social needs, conflicts and self-actualization.
This theory recognizes individuality and the need for managers to be sociable. Modern Management TheoryModern organizations must navigate constant change and exponential complexities. Technology is an element that can change and upend businesses very rapidly. Modern Management Theory seeks to incorporate these elements with human and traditional theories. A manager practicing Modern Management Theory might use statistics to measure performance and encourage cross-functional cooperation.Three major modern theories comprise Modern Management Theory:Quantitative TheoryQuantitative Theory arose out of the need for managerial efficiency during World War II. It was developed using experts from multiple scientific disciplines to solve the issues around integrating systems of people, materials and systems. This theory was developed primarily to enhance and support military decision-making.Systems TheorySystems Theory views management as an interrelated component of the organization.
Instead of viewing the organization as a series of silos, each department is part of an overall system or organism. Management must support goals and process flows that serve the overall organizational health.Contingency TheoryContingency Theory was developed by sociologist Joan Woodward after she examined why some companies performed better than others. She found that high performing organizations make better use of technology and their managers made better decisions in situational contexts.
This theory recognizes that effective managers must be adaptable to unique situations and circumstances. How to Select a Management Theory?Each management theory provides valuable insight into managerial requirements. There is no single model or theory that will work for every organization. Many modern organizations apply a combination of theories to realize management success. This has led to the creation of newer organizational models with less structured hierarchies.Effective management is the backbone of any business.
It is important to consider several factors when deciding which theories are most ideal for a small business. Often, small businesses are less rigidly hierarchical and must operate with minimal staff.
It is important to select management theories and practices that are sustainable, especially if business resources are limited. About the AuthorHashaw Elkins is a certified business analyst and project management consultant. She has led projects across multiple industries and sectors, ranging from the Fortune Global 500 to international nongovernmental organizations. Hashaw holds a master's degree in project management and is a professionally certified PMP, PMI-PBA, CSM, CSPO, and Lean Six Sigma Black Belt Her undergraduate studies were in international affairs. Hashaw is further certified in organizational change management, diversity management, and cross-cultural mediation.
Management Theory And Practice Pdf
© Shutterstock.com rasscoIn this guide, we’ll talk about these functions, first by looking at the definition of management and then moving on to present popular theories regarding the functions of management. You’ll also be able to read about the five functions core functions – planning, organizing, staffing, directing and controlling – and why they are important and how you can achieve them with your management.DEFINING MANAGEMENTTo understand the functions of management, you must first examine what management is about. How do you define management?Management is a process with a social element. It requires the efficient use of resources combined with the guidance of people in order to reach a specific organizational objective. It involves responsibility to achieve the objectives and to fulfill specific organizational purposes through economical and effective planning and regulation.
It’s about taking charge and ensuring focus is placed on the things and aspects of the business that help achieve the vision and the goals.Three key characteristics define the process of management. First, management is a process of continuing and related activities. Each of the functions is related to each other and the functions complement each other.
Administrative Management Theory Pdf
It is hard to consider the functions in isolation, as management requires each activity to complement one another. When you as a manager engage in one function, you in effect also start the process of another function. The second core characteristic of management is about it involving and concentrating on organizational goals. Management is largely focused on achieving the key mission of the organization,. Whilst there are detailed objectives it might focus on, management is mainly interested in identifying the wider organizational goals and using the different functions in order to achieve the objectives. Each function takes the organization closer to achieving its vision.
Finally, management achieves the organizational goals by working with people and organization resources. You might use different financial resources or physical equipment as part of the process, while also directing and guiding the staff towards the objectives. The manager is in charge of supporting the people and connecting the right person with the right resources.In essence, management is about a dynamic process, with a number of elements and activities as part of the process. The dynamic and social element of management mean the functions of management are separate from operational functions. Whilst operational functions refer to activities and processes such as marketing, finances and purchases, the management functions differ depending on the organizational level at which they take place.The functions remain the same, yet are essentially different depending on the organizational hierarchy. A manager at the senior level will be involved in different activities than the manager at the junior level. The core concepts might be the same, but they are dynamic in manifestation.
On the other hand, operational function of marketing will change according to the organization, the person in charge and the operational goals. For management functions, the objective of the specific activity remains largely the same, even though the manifestation might be different depending on the specific situation.Management functions are the same, but the management processes people use can differ. A management style or process can depend on the organization, the manager in question, and even the objectives. You’re likely to change management style if you are directing a single person or being in control of a team. You can find out more about management styles from the introductory clip below: THE FAMOUS THEORIES ON THE FUNCTIONS OF MANAGEMENTSince management involves solving the problems within an organization in order to reach the desired objectives, the focus is on understanding the functions that make up the process.
As experts began studying and theorizing the essence of management, different ideas and concepts regarding the functions were born.Although the theories about the functions of management lead to rather similar results, it can be helpful to study the differences as well as the historical journey to our current understanding of the functions. Here are a few of the most influential theories and theorists, who’ve outlined their ideas about the functions of management.Henri FayolHenri Fayol was the first to attempt classifying managerial activities into specific functions. The French engineer established the first principles of the classical management theory at the start of the last century. Fayol is considered the founding father of concepts such the line and staff organization. When Fayol developed his strategies and ideas, managers in organizations didn’t have any kind of formal training and therefore Fayol’s ideas were ground-breaking.As well as setting out, Fayol also defined the five core functions of management, which are still used and which form the basis of much of the later theories.
To Fayol, manages is a process, which includes forecasting, planning, organizing, commanding and controlling. These are the foundation of setting the relationship between the subordinates and the superior and the five core functions help the management to solve problems in the relationship or within the organization in a creative manner.George R. TerryAfter Fayol, many theorists have looked at the functions and crafter their own ideas, deviating only slightly from Fayol’s core functions. Terry wrote a book in 1968 and outlined his view on the principles.
Terry believed there to be four core functions, each function posing and responding to a specific question the management must solve.