Management Theory

Management Theory

1. Classical Approach

   • The term used to describe the hypotheses of the scientific management theorists and the general administrative theorists
   • General Administrative Theory
     • Writers who developed general theories of what managers do and what constitutes good management practice: - Henri Fayol (France) - Max Weber (Germany)
     • Division of work
     • Authority
     • Discipline
     • Unity of command
     • Unity of direction
     • Subordination of the individual
     • Remuneration
     • Centralization
     • Scalar chain
     • Oder
     • Equity
     • Stability of tenure of personnel
     • Initiative
     • Esprit de corps
   • Scientific Management Theory (Frederick W. Taylor)
     • To increase efficiency, Taylor tried to figure out the “one best way” to perform a particular task.  To do so, he used a stop watch to determine which method was the most efficient.  These studies were known as “Time and Motion Studies.
     • Jobs should be designed according to scientific rule
     • The principles of scientific management should be explained to workers.
     • Management and workers should be interdependent so that they cooperate
     • Employees should be selected and trained according to scientific methods.

2. Behavioural Approach

   • —The Behavioral approach to management focused on the actions of workers.
   • Maslow’s Theory
   • The Hawthorne Effect
     • It refers to the fact that people will modify their behavior simply because they are being observed.
   • Theory X
     • Managers of this theory impose strict rules to lazy employees and make sure that all important decisions are made only by them.
   • Theory Y
     • —Managers of this theory believe that people are creative and will come up with good ideas if encouraged to do so.  They tend to give their employees much more freedom and let them make mistakes.
     • —Managers of this theory believe that people are creative and will come up with good ideas if encouraged to do so.  They tend to give their employees much more freedom and let them make mistakes.
   • Theory Z
     • Theory Z implies that managers who use either theory X or Y assumptions when dealing with people can be successfully depending on their situation .

3. Quantitative Approach

   • Focuses on the application of statistics and other quantitative  techniques to management activities

4. TQM - Total Quality Management

   • Is a system of management based on involving all employees in a constant process of improving quality and productivity by improving how they work. 

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