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Jul 30, 2023 · A management theory provides insight and guidance into the principles and practices of effective management. In order to make informed decisions and improve their leadership abilities, managers need to understand these management theories in detail.
- At A Glance
- Popular Management Theories
- Why Study Management Theories?
- Key Takeaway
- Additional Resources
Until the day that machines are able to think, talk, and experience emotions, humans will remain the most complicated beings to manage. Humans can never achieve the kind of error-free performance that machinesprovide. On the upside, there are tons of things that machines aren’t capable of doing, making humans indispensable assets. For such reason, ...
1. Scientific Management Theory
American mechanical engineer Frederick Taylor, who was one of the earliest management theorists, pioneered the scientific management theory. He and his associates were among the first individuals to study work performance scientifically. Taylor’s philosophy emphasized the fact that forcing people to work hard wasn’t the best way to optimize results. Instead, Taylor recommended simplifying tasks so as to increase productivity. The strategy was a bit different from how businesses were conducted...
2. Systems Management Theory
Systems management offers an alternative approach to the planning and management of organizations. The systems management theory proposes that businesses, like the human body, consists of multiple components that work harmoniously so that the larger system can function optimally. According to the theory, the success of an organization depends on several key elements: synergy, interdependence, and interrelations between various subsystems. Employees are one of the most important components of...
3. Contingency Management Theory
The main concept behind the contingency management theory is that no one management approach suits every organization. There are several external and internal factors that will ultimately affect the chosen management approach. The contingency theory identifies three variables that are likely to influence an organization’s structure: the size of an organization, technology being employed, and style of leadership. Fred Fiedler is the theorist behind the contingency management theory. Fiedler pr...
1. Increasing Productivity
One of the reasons why managers should be interested in learning management theories is because it helps in maximizing their productivity. Ideally, the theories teach leaders how to make the most of the human assets at their disposal. So, rather than purchase new equipment or invest in a new marketing strategy, business owners need to invest in their employees through training. It can be seen in Taylor’s scientific management theory. As mentioned earlier, Taylor proposed that the best way to...
2. Simplifying Decision Making
Another area where management theories have proven to be useful is in the decision-making process. Max Weber proposed that hierarchical systems encourage informed decision-making. A report written by the Institute for Employment Studies suggests that flattening the hierarchy paves the way for local innovation while speeding up the decision-making process. Flattening out entails getting rid of job titles and senior positions so as to inspire a cohesive work environment.
3. Encouraging Staff Participation
Management theories developed in the 1900s, aimed at encouraging interpersonal relationships in the workplace. One such theory that encouraged a collaborative environment is the human relations approach. According to this theory, business owners needed to give their employees more power in making decisions.
Throughout history, companies have been putting different management theories into practice. Not only have they helped to increase productivity but they have also improved the quality of services. Although these management theories were developed ages ago, they help in creating interconnected work environments where employees and employers work han...
Thank you for reading CFI’s guide to management theories. To learn more and expand your career, explore the additional relevant resources below: 1. Fundamental Law of Active Management 2. Interpersonal Skills 3. Leadership Theories 4. Management Skills 5. See all management & strategy resources
Jun 30, 2022 · Classical management theory: emerged from the Industrial Revolution and revolves around maximizing efficiency and production. Behavioral management theory: started in the early 20 th century and addresses the organization’s human and social elements.
Oct 12, 2024 · Management theories are a collection of ideas that recommend general rules for how to manage an organization or business. They address how supervisors implement strategies to accomplish organizational goals and how they motivate employees to perform at their highest ability.
May 29, 2024 · Management theories are collections of ideas that influence how an organization, business or team is guided and run. Leaders in business management are primarily responsible for laying out strategies to help their teams meet their goals.
Oct 12, 2024 · Management Theories are conceptual frameworks that provide strategies for effectively managing a company. These theories offer a range of guidelines and principles that can be applied to modern businesses.
Nov 6, 2023 · Management theories, or collections of ideas that provide the framework for effective management strategy, are implemented in modern workplaces to motivate and bring out the best in employees. Theorists have long speculated on what type of management is best for humans in the professional setting.
