Organizational Environment Theory

Management Science Theory

Behavioral Management Theory
Administrative Management Theory
Scientific Management Theory

Management Theories

Theory is a systematic grouping of interrelated principles. Its task is to tie together and
give framework to significant knowledge.

The value of theory in practical business situation is sometimes discounted by many

people, but decisions when they are rational, are always based on theory.

For example: if a manager speaks harshly to his employees who commit mistakes, he
is acting on the theory that the best way to get his people to do good work is to make
unpleasant remarks. But on the other hand, a supervisor uses another theory to solve
the problem if he/she explains calmly why the employee concerned commits mistakes
and encourages him/her to do better next time.

Whichever approach the manager and the supervisor use, they base it on the
respective theories they believe in regardless weather the person concerned is affected
or not.

Management comes from the Italian word “maneggiare” which means “to handle tools
or equipment”.

Maneggiare derives from the latin word “manus” which mean hand, and “agere” which
is to act.
The simplest definition of management is given by Mary Parker Follet (1868-1933) is
an American social worker, management consultant and philosopher who is known as
the mother of modern management. According to follet management is the art of
getting things done through people.

Henri Fayol (1841-1925)

A French industrialist and mines engineer.

Worker in his mining at top level, took responsibilities from his father.

Found various activities, qualities and principles required for top level administrator.

Wrote a book in French in the year 1916 entitled “administration industrial

management”.

Because of his contribution fayol is known as father of administrative management.

Henry Fayol a French industrialist and mines engineer contributed in the development
of management and administrative principles.

Division of Industrial Activities

Fayol divided the activities into six categories:

•Technical Activities -related to production and manufacturing.

•Commercial Activities-related to buying, selling and exchange.

•financial Activities-related to raising of capital/fund, utilizing such resources optimally.

•Security Activities-related to protection of property and persons.

•Accounting Activities-related to planning, organizing, commanding, coordinating and

controlling.
Managerial qualities identified by fayol

•Physical qualities-good health, strength of body and mine, well dressed.

•Mental qualities- ability to understand and learn, judgment, adoptability, mental

rigors.

•Moral qualities- fairness, willingness to accept responsibilities, initiative, loyal,

intelligent, and dignity.

•Educational qualities- general knowledge about the organization, knowledge about

the organization.

•Technical qualities-peculiar to the functions to be performed.

•Experience- arises from work.

Frederick Taylor

•Author of the book the principles of scientific management (1931).

•one of the pillars of management during the 19th century.

•the founder of Taylorism (Taylorism introduced the scientific method of enhancing

the productivity of labor and eliminate wastages.

Taylor Four principles of Scientific Management

•Replacing rule of thumb methods with scientific determination for each element of a
man’s job;

•Scientific selection and training of workers;

•Cooperation of management and labor to accomplish work in accordance with

scientific method;

•More equal division of responsibility between managers and workers, with managers
doing the planning and organizational work.