Management-theories-powerpontpresentationpptx

Theories

1. Management theories Management theories are the recommended management strategies that enable us to better understand and approach management. Many management frameworks and guidelines were developed during the last four decades. 

2. Management theories are the set of general rules that guide the managers to manage an organization. Management theories (also known as "Transactional theories") focus on the role of supervision, organization, and group performance. Theories are an explanation to assist employees to effectively relate to the business goals and implement effective means to achieve the same. In this article, we will discuss the historical context of management, diverse views on management, and finally the theories of management.

3. Types of Management Theories Management theories can be classified into three types . Classical Management Theory Behavioral Management Theory Modern Management Theory

4. 1 . Classical Management Theory Classical management theory is based on the belief that workers only have physical and economic needs and prescribes specialization of labor. Classical theories recommend centralized leadership and decision-making and focus on profit maximization. Three streams of classical management theory are - Bureaucracy (Weber), Administrative Theory (Fayol), and Scientific Management (Taylor ).

5. 2 . Behavioral Management Theory The behavioral management theory  is focused on the human aspects of work. They are also often referred to as the human relations movement. These theories aspire to gain a better understanding of human behavior at work to improve productivity. It focuses on behavioral aspects like motivation, conflict, expectations, and group dynamics.

6. Management Theory Modern management theory emphasizes the use of systematic mathematical techniques to analyze and understand the inter-relationship of management and workers in all aspects. Three streams of modern management theories are: Quantitative Approach System Approach Contingency Approach.

7. 1. Quantitative or Mathematical Approach: Mathematics has made inroads into all disciplines. It has been universally recognized as an important tool of analysis and a language for precise expression of concept and relationship . The approach has following features: 1. Management is concerned with problem solving and must use mathematical tools to solve them. 2. Mathematical models can be developed by quantifying various variables of the problems. 3. Mathematical symbols can be used to describe managerial problems.

8. 2 . Systems Approach: This approach is essentially a way of thinking about organizations and management problems. This approach views an organization as interrelated parts with a unified purpose: surviving and. ideally, thriving in its environment . According to Cleland and King, “A system is composed of related and dependent elements which, when in interaction, form a unitary whole.” In a business the departments of production, marketing, personnel are sub­systems and the whole business is one system.

9. 3 . Contingency or Situational Approach: Contingency or situational approach was developed by J.W. Lorsch and P.R. Lawrence in 1970 who were critical of other approaches presupposing ‘one best way to manage’. Management problems are different under different situations and need to be tackled as per the demand of the situation. One best way of doing may be useful for repetitive things but not for managerial problems.

10. This approach has the following features:  Management is entirely situational. The conditions of the situation will determine which techniques and control systems should be designed to fit a particular situation .  Management policies and procedures should respond to environmental conditions . Managers should understand that there is no one best way of managing. 

11. General Management Theories There are four general management theories. Frederick Taylor –  Theory of Scientific Management Henri Fayol –  Administrative Management Theory Max Weber - Bureaucratic Theory of Management Elton Mayo –  Behavioral Theory of Management ( Hawthorne Effect)

12. 1. Frederick Taylor’s Theory of Scientific Management: Taylor’s theory of scientific management aimed at, improving economic efficiency, especially labor productivity. Taylor had a simple view about, what motivated people at work, - money. He felt that workers should get a fair day's pay for a for the amount produced. Therefore he introduced the differential piece rate system, of paying wages to the workers.

13. Principles of Scientific Management Four  Principles of Scientific Management are : Time and motion study: - Study the way jobs are performed and find new ways to do them. Teach, train, and develop the workman with improved methods of doing work. Codify the new methods into rules. The interest of the employer & employees should be fully harmonized so as to secure mutually understanding relations between them. Establish fair levels of performance and pay a premium for higher performance .*

14. 2 . Henri Fayol’s Administrative Management** Henri Fayol known as the Father of Management laid down the  14principles of Management . These 14 principles of management are used to manage an organization and are beneficial for prediction, planning, decision-making, organization and process management, control, and coordination .**

15. Equity : Employees should be treated equally and respectfully Discipline: Makes the management job easy and make progress Initiative: support and encourage employees taking initiatives Authority and Responsibility: Efficient delivery of work with defined responsibility Esprit de Corps: Develop trust and mutual understanding Subordination of Individual Interest: Company over personal interest and respect the chain of command

16. Stability: offer job security to their employees Remuneration: motivating factor linked to the individual’s efforts Unity of Direction: Unified goals and motives for all personnel working in a company Centralization: Balance between the hierarchy and division of power Scalar Chain: Hierarchy steps should be from top to the lowest Unity of Command: More than one boss brings a conflict of interest and confusion Order: the positive atmosphere in the workplace boosts productivity

17. 3 . Max Weber’s Bureaucratic Theory of Management: Weber made a distinction between authority and power. Weber believed that power educes obedience through force or the threat of force which induces individuals to adhere to regulations. According to Max Weber, there are three types of power in an organization:- Traditional Power Charismatic Power Bureaucratic Power or Legal Power.

18. Features of  Bureaucracy : Division of Labor. Formal Hierarchical Structure. Selection based on Technical Expertise. Management by Rules. Written Documents. Only Legal Power is Important. Formal and Impersonal relations.

19. 4. Elton Mayo’s Behavioral Theory of Management Elton Mayo's experiments showed an increase in worker productivity was produced by the psychological stimulus of being singled out, involved, and made to feel important.  Hawthorne Effect can be summarized as “Employees will respond positively to any novel change in a work environment like better illumination, clean work stations, relocating workstations, etc. Employees are more productive because they know they are being studied.

20. Theory X According to McGregor, Theory X management assumes the following: Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. Theory X means that a manager relies on strict guidance as their core method of organization. There are specific conditions that lead business owners to adopt this theory. Businesses that produce a high quantity of goods may rely on the X theory.

21. Theory Z of Management Theory Z also called the "Japanese Management" style is a leadership theory of human motivation focused on organizational behavior, communication, and development. It assumes that employees want to enter into long term partnerships with their employers and peers. Co-operative relationships between employers and employees . Offering stable jobs with an associated focus on the well-being of employees results in increased employee loyalty to the company.

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