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MANAGEMENT THEORIES

 SCIENTIFIC MANAGEMENT: Developed by E.W.Taylor to address the

following problems-

 Increase productivity.

 Organization problems in production.

 Production management.

 Time, motion, and method studies.

 HUMAN RELATIONS THEORY: Founded by Psychologist E.Mayo, based

on research in the Hawthorn factories 1924 –1932.

Major finding was that:

 Workers could be affected by the method of management.

 Satisfaction in the work place was dependent on the informal social group
pattern.

 A number of socio-psychological factors influence the functioning of an

organization.

 Socially oriented style of leadership and management worked best.

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 MANAGEMENT PROCESS THEORY: Henri Fayol (1841-1925) founder

of management theory. States that management skills can be learned.

Broke management functions into five essential parts:

 Policy making and planning

 Organizing

 Giving instructions and support

 Coordinating

 Control and adjustment

MODERN MANAGEMENT THEORIES

 STRUCTURE THEORY- focuses on building up and extending the

organizational structure.

 REVISIONISM- people and the organization becomes the focus of problem

formulation

 DECISION-MAKING THEORY- focuses on the total process of decision

making- step by step.

 COMMUNICATION AND INFORMATION THEORY- focuses on the key

role of communication and information systems. System of ‘two-way traffic.

 SYSTEMS THEORY- based around the general concept of ‘a system’ which

can be applied in all sorts of scientific fields. Calls for renewed attention to be
focused on relationships of the organization’s constituent parts and for the
control of processes in the context of the whole organization.

 STRATEGY THEORY- central issue is the striving for the survival, self-
preservation of the organization. Focus is on the relationship between the
organization and the surrounding environment.
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 ENVIRONMENT THEORY- focus on the impact of internal and external

environmental forces on the organization

 THEORY OF GROWTH AND DEVELOPMENT OF ORGANIZATIONS –

concerned with phases of growth and development in the economic-
technological sense, as well as the problem of growth in the socio-
psychological sense.

 CONTINGENCY THEORY – concepts related to organizational/management

theories have to be adapted to fit specific situations. Elements concerned are
all ‘situationally dependent’.

The theory of MANAGEMENT AND ORGANIZATION is interdisciplinary.

Human behaviour, in theory can be studied through psychology, sociology,

and other human sciences. In reality, human behaviour can only be viewed as
a unity and a whole.