Management Theories

There are 4 management approaches

1. Classical Approach
2. Behavioral Approach
Classical Approach
Classical approach emphasizes the rationality and efficiency of organization. Rational decisions
must be taken to improve the efficiency of an organization.
There are two theories under the classical approach of the management
1. Scientific Management Theory
2. General Administrative Theory
Scientific Management Theory:
This theory was proposed by Frederick Winslow Taylor. He was engineer and worked at steel
factory. In 1911 he developed 4 principle of scientific management.
1. Develop science for each element of an individual’s work to replace the old rule-of thumb
method.
Taylor believed that managers should be responsible for analyzing work processes and
developing methods for improving them. He advocated for a scientific approach to
management that involved breaking down work processes into individual tasks and analyzing
each task to identify the most efficient way to perform it.
2. Scientifically select and then train, teach, and develop the worker.
Taylor believed that workers could be trained to perform their tasks more efficiently and that
managers should be responsible for providing the training and resources necessary for this. He
also believed that workers should be paid based on their productivity, rather than on a flat rate,
in order to incentivize them to work more efficiently.
3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with
the principles of the science that has been developed.
Being manager or group leader, must cooperate with all the employee or member.
Individualizing will dishearten the rest of the member and hence the target or goal will be
achieving.
4. Divide work and responsibility almost equally between management and workers.
Management does all work for which it is better suited than the workers.
General Administrative Theory:
Two major contributions to general administrative theory were made by
1. Henry Fayol
2. Max Weber
Henry Fayol developed 14 point theory called 14 principles of management
1. Division of work:
This principle suggests that breaking down tasks into smaller, more specialized tasks can lead to
increased efficiency and productivity. By allowing each worker to focus on a specific aspect of a
project, they can become experts in that area and perform their tasks more efficiently. It will
also enhance the quality of the products.
2. Authority:
This principle asserts that managers should have the authority to give orders and make
decisions, as they are responsible for the overall success of the organization. However, this
authority should also be balanced with responsibility and accountability.
3. Discipline:
Employees should follow the rules and regulations of the organization, which helps to ensure
that everyone is working towards the same goals and objectives.
4. Unity of command:
Employees should only receive orders from one manager, to avoid confusion and conflicting
instructions. If first line worker receive order from first line manager, middle level manager or
even top level management directly, it will not also create confusion but work will get delayed,
quality will also be compromised and may increase the cost too.
5. Unity of Direction:
The entire organization should be working towards a common goal or mission, which helps to
ensure that everyone is working in a coordinated and aligned manner. All the member of the
group or organization should be working for one specific goal or target. For example all the
player of a cricket team should work in the ground to win the match

6. Subordination of individual interest to general interest:

This principle suggests that the interests of the organization should be more important than the
interests of individual employees. This doesn't mean that employees should be exploited or
mistreated, but rather that their needs and desires should be balanced against the needs of the
organization as a whole.
7. Remuneration:
This principle states that employees should be compensated fairly and justly for their work, in
order to attract and retain talented workers. Compensation can include not just salary, but also
benefits, bonuses, and other rewards.
8. Centralization:
Authority should be centralized in a few key positions, rather than dispersed throughout the
organization. This can help to ensure that decisions are made quickly and efficiently, and that
everyone is working towards the same goals.
9. Scalar chain:
There should be a clear chain of authority from top management to the lowest level of
employees, which helps to ensure that everyone knows who they report to and who they can
turn to for guidance and support.
10. Order:
The workplace should be organized and efficient, with everything in its place and everyone
knowing their roles and responsibilities. This helps to avoid confusion and wasted time and
resources.
11. Equity:
Employees should be treated with fairness and justice, regardless of their background, race,
gender, or other factors. This can help to promote a positive and inclusive workplace culture.
12. Stability of tenure of personnel:
Employees should be given job security, in order to reduce turnover and promote loyalty and
commitment.
13. Initiative:
Employees should be encouraged to take initiative and contribute their ideas and suggestions
for improving the organization. This can help to foster a culture of innovation and continuous
improvement.

14. Esprit de corps:

 There should be a spirit of unity and cooperation among employees, with everyone working
together towards common goals and objectives. This can help to promote a positive workplace
culture and increase productivity and efficiency.
Max Weber theory of Bureaucracy
1. Hierarchy:
Bureaucracies are organized in a hierarchical structure, with clear levels of authority and
responsibility. Each level is responsible for overseeing and directing the level below it.

2. Specialization:
Bureaucracies are organized into specialized roles, with each role responsible for a specific task
or set of tasks. This division of labor ensures that each task is performed efficiently and
effectively.

3. Rules and procedures:

Bureaucracies operate according to a set of formal rules and procedures, which are designed to
ensure consistency and fairness. These rules and procedures are applied uniformly to all
members of the organization.

4. Impersonality:
Bureaucracies are designed to be impersonal, meaning that decisions are made based on
objective criteria rather than personal preferences or relationships.

5. Career advancement based on merit:

Bureaucracies reward individuals based on their merit and performance rather than their
personal connections or favoritism. This ensures that the most qualified individuals are
promoted to higher levels of responsibility.

6. Technical qualifications:
Bureaucracies require individuals to possess the necessary technical qualifications and
expertise to perform their roles effectively.
7. Written records:
Bureaucracies rely heavily on written records, which are used to document decisions,
procedures, and transactions. This ensures that information is accurately recorded and can be
easily accessed in the future.
Although bureaucracy can be an efficient and effective form of organization, it can also have
drawbacks. For example, bureaucracies can be slow to respond to change, as they are designed
to operate according to established rules and procedures. They can also be rigid and inflexible,
and may be less adaptable to changing circumstances than more fluid forms of organization.
Additionally, bureaucracies can be perceived as impersonal and bureaucratic, which can lead to
a lack of engagement and commitment among employees.
Behavioral approach

The behavioral approach of management is a management theory that focuses on understanding

human behavior in the workplace. It is also known as the human relations approach to
management. This approach recognizes that employees are not simply machines or robots, but
individuals with their own emotions, motivations, and desires. Therefore, the behavioral
approach emphasizes the importance of creating a positive work environment, where employees
feel valued and respected, and their needs are met. The behavioral approach also emphasizes
the importance of communication between management and employees. This includes open
lines of communication, feedback, and encouragement of employee participation in decision-
making. The behavioral approach is often associated with the Hawthorne studies, conducted in
the 1920s and 1930s, which demonstrated that productivity was not solely dependent on
working conditions, but also on social factors such as group dynamics and job satisfaction.
Behavioral approach of management focuses on understanding and improving employee
behavior through communication, motivation, and positive work environments.

Important aspects of behavioral approach

Employee Recognition:

A behavioral approach to management recognizes that employees are motivated by more than
just money. Recognizing employees for their hard work and dedication is a simple yet effective
way to show that they are valued. This can include verbal praise, bonuses, promotions, or even
just a handwritten note of appreciation.

Employee Empowerment:

Giving employees more autonomy and decision-making power in their work can help improve
job satisfaction and motivation. This could mean allowing employees to choose their own
projects or tasks, or involving them in the decision-making process for larger company initiatives.
Feedback and Coaching:

Providing feedback to employees is essential for their growth and development. Managers can
use a behavioral approach by providing constructive criticism and coaching to help employees
improve their skills and reach their full potential.

Team Building:

A behavioral approach recognizes that strong team dynamics are essential to a successful
workplace. Managers can organize team-building activities to help employees build relationships,
trust, and respect for one another. This can include anything from group outings to more
structured team-building exercises.

Positive Work Environment:

Creating a positive work environment is essential for improving employee morale and reducing
turnover. This can include anything from providing comfortable workspaces and good lighting to
implementing policies that promote work-life balance.

Overall, the behavioral approach of management emphasizes the importance of understanding

and improving employee behavior to create a more productive and positive workplace. By
recognizing the importance of human relations and communication, managers can improve
employee motivation, satisfaction, and ultimately, the success of their organization.