Topic 1 – Overview Theories of Management

Topic’s Learning Objectives  Examine and evaluate theories of management  Adequately outline the management process  Assess ways of management

Introduction
Organizations’ accountability and profitability depends on how well the business is managed. This week we are going to examine the management theories, when each theory can be used and assess ways of management.

Before we continue to the main analysis take a few minutes to see this video in YouTube http://www.youtube.com/watch?v=Ubxb9KUOQtI and then proceed to reading.

1

Main Analysis What are the Management Theories?

Management theories are implemented to help increase organizational productivity and service quality. Not many managers use a singular theory or concept when implementing strategies in the workplace: They commonly use a combination of a number of theories, depending on the workplace, purpose and workforce.

Classical Management
As shown in the figure below there are three classical management approaches: (1) scientific management, (2) administrative principles, and (3) bureaucratic organization.

Scientific Management

Scientific approach was found in 1911 by Frederic W. Taylor and includes four guiding action principles. 1. Develop for every job a “science” that includes rules of motion, standardized work implements, and proper working conditions. 2. Carefully select workers with the right abilities for the job. 3. Carefully train workers to do the job and give them the proper incentives to
2

cooperate with the job “science.”

4. Support workers by carefully planning their work and by smoothing the way as they go about their jobs.

Administrative Principles Henri Fayol published Administration Industrielle et Générale in 1916. The book outlines his views on the proper management of organizations and of the people within