Explain how the organisational theory underpins the practice of management.
Organisational theory is very important because when applied in practice it can influence the overall performance of organisations. It is a sociological study of formal organisations and their interrelationship with the environment in which they are operating. The study of organisational structure and culture; the different organisational theories and approaches to management; the different leadership styles and motivational theories – all of them have been developed over the past few centuries and they are still changing and upgrading so that managers can clearly understand their role in the organisation and to be able to respond adequately to various changes in order to gain business effectiveness and success.
Management theory can be defined as a collection of ideas and general rules designed to help managers in their work. The theory of management helps managers to know and understand the goals of the organisation; it helps them in planning work in order to achieve these goals in the most effective and efficient way; it helps them to understand what motivates people and it shows them ways how to do it.
There are various different management theories or approaches to management. The oldest once are called Classical theories. Representatives of the classical school are: M. Weber, F. Taylor, H. Gantt, Frank and Lillian Gilbert, M Follett, H Fayol, etc. The classical theories of management are dated back to the Industrial Revolution. They place an emphasis on the planning of work, the unity of command, the balance between authority and responsibility, and the assumption of logical and rational behaviour.
Frederick Taylor is the founding father of Classical School of management He developed the scientific management theory as a result of his work about how to increase workers’