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What are management theories

 Management Theory

All the theories should be mentioned and in this article management theories are explained in general as classic management theory, behavioral theory in management, management science, organization and environment theory, contingency theory and emerging management approaches.
What are management theories
What are management theories

Classical Theory of Management

Classical Perspective:
  • Scientific Management.
  • Bureaucratic Organizations.
  • Administrative Principles.

characteristics of classical management

ITEM SCIENTIFIC BUREAUCRATIC ADMINISTRA TIVE
Focus Workers Whole organization Managers
EmphasesTraining routines
Financial motivation
Rules Rationality Management functions Chain of Command
Benefits Productivity Efficency Fairness EfficiencyClear structure Guiding Principles Efficiency
Drawbacks Overlooks social needs Rigidity SlownessOversimplified doesn,t consider environment

Behavioral theory in management

Behavioral Management:
The behavioral management perspective placed more emphasis on individual attitudes and behaviors and on group processes and recognized the importance of behavioral processes in the work place.

Behavioral management focuses on the way a manager should personally manage to motivate employees.
Theory X and Y (Douglas McGregor)
Douglas McGregor proposed the two different sets of worker assumptions. These assumptions are:
Theory X
  • Assumes the average worker is lazy, dislikes work and will do as little as possible.
  • Managers must closely supervise and control through reward and punishment.
Theory Y
  • Assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes the work.
  • Managers should allow the worker great latitude, and create an organization to stimulate the worker.

Management Science

Uses rigorous quantitative techniques to maximize resources.
  • Quantitative management: utilizes linear programming, modeling, simulation systems.
  • Operations management: techniques to analyze all aspects of the production system.
  • Total Quality Management (TQM): focuses on improved quality.
  • Management Information Systems (MIS): provides information about the organization.

Organization-Environment Theory

Organization-Environment theory considers relationships inside and outside the organization.
The environment consists of forces, conditions, and influences outside the organization.
Systems theory considers the impact of stages:
  • Input: acquire external resources.
  • Conversion: inputs are processed into goods and services.
  • Output: finished goods are released into the environment.

Contingency Theory

Contingency Theory assumes there is no one best way to manage.
  • Suggests that each organization is unique.
  • The appropriate managerial behavior for managing an organization depends (is contingent) on the current situation in the organization.
The environment impacts the organization, and managers must be flexible to react to environmental changes.
The way the organization is designed, control systems selected, depend on the environment.
Technological environments change rapidly, so must managers.

Mechanistic & Organic Structures:
Mechanistic: Authority is centralized at the top. (Theory X)
  • Employees closely monitored and managed.
  • Very efficient in a stable environment.
Organic: Authority is decentralized throughout employees. (Theory Y)
  • Much looser control than mechanistic.
  • Managers can react quickly to changing environment.

Emerging Management Approaches

New management approaches and viewpoints are emerging:
  • Quality management: An approach emphasizes achieving customer satisfaction by providing high quality goods and services.
  • Total Quality Management: It is a strategy for continuous improving performance at every level of an organization.
  • Reengineering: Redesigning processes that are crucial to customer satisfaction in an organization.
  • Chaos models: It is modeling of a corporation as a complex-adaptive system that interacts and evolves with its surroundings.
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