TYPES OF MANAGEMENT THEORIES

SCIENTIFIC MANAGEMENT THEORY: FREDERICK WINSLOW TAYLOR Developed and published his
Scientific Management Theory in 1909. In his core, scientific management theory believes that it is vital
to find the most effective way to complete each and every task, no matter how small. In the early
1900s, managers would give orders to their workers with no guidance on how to accomplish them.
Managers and employees rarely, if ever, had interaction with one another. Taylor believed this was an
efficient way to operate a business and recommended some key changes.

Taylor argued each task should be completed as efficiently as possible. In addition, everyone should be
assigned a particular job based on their skills and abilities and must be evaluated based on the quantity
and quality of their work. Taylor did not think it was a fair or cost effective to pay every employee the
same amount, regardless of their output. While this may sound like common sense today, this was a
ground breaking idea in the early 1900s. Another big component of scientific management theory is the
idea of training and development. Taylor argued it was extremely important to monitor and train your
employees on the tasks they are assigned to. By ensuring your employees are efficient at their work, the
output will be larger and of a higher quality.

One part of the scientific management theory that is not common today is the idea that managers
strictly manage and employees simply work. Now a days, most companies offer room for growth and
advancement for their employees as opposed to keeping a distinct barrier between management and
employees. This theory had a huge impact on the way companies operated and how they were able to
create a more balanced pay system, better training and a more efficient workforce.

ADMINISTRATIVE MANAGEMENT THEORY: was developed by Henri Fayol in the early 1900s and is
considered to be highly relevant even today. Fayol created fourteen principles which he believed
outlined the basis for strong and successful companies. It assess important to know that Fayol agreed
with many of Taylor’s ideas and ideologies, however, the main difference is that Taylor focused on the
process of completing the work most effectively and Fayol focusses on the structure of company as
whole.

Some of Fayol’s principles included a clear division of labor, ensuring eache3mployee had only one
direct manager to report to and a healthy manager-employee relationship. Another important part of
Fayol’s administrative management theory is the idea that everyone in a company should be aligned by
organizational structure was vital to the success and productivity of accompany.
BUREAUCRATIC MANAGEMENT THEORY:
Tend to sound pejorative or negative by implying that a bureaucratic organization is an impersonal
machine that focuses more on numbers and output than on the well-being of its employees. However,
its intended meaning is actually quite different. AT the end of the 19 th century. MAX Weber created the
bureaucratic management theory. Unlike today’s interpretation of the word. Weber believed that
bureaucracy meant carefully developing and spell out company objectives and division of labor. While
this included developing a hierarchy of command within the company. It also included supporting and
developing employees.

Now that you have read about three management theories, do any of them seem familiar? Maybe you
have experienced certain aspects of each of these theories first hand. During an interview process, on b
boarding process or the day-to-day work environment, some parts of these theories are still

Active today. Try connecting some of these theories to your personal experiences as we move onto the
next three theories we are going to discuss in this module: Human Relations Management Theory.
General Management and X&Y Management Theory.

HUMAN RELATIONS MANAGEMENT THEORY: As the title implies, Human Relations Management
Theory is centered on human interactions and relationships. Elton Mayo believed that all early
management theories only focused on how money affects employee’s performance. He believed there
were more factors that influenced how employees behaved and performed at work. To test his theory,
he began study at Chicago’s Western Electric Hawthorne Plant inthe1920s and created his own
management theory based on his findings which are more commonly known today as The Hawthorne
Effect.

The initial goal of The Hawthorne studywsto determine how changing the lighting would not affect
employee productivity. They began the study with a small group of employees who they interacted with
throughout the process. The study found that regardless of how they changed the lighting, productivity
increased. When they were unable to make a connection as to why productivity improved. They began
branching out to other department to see if the results were similar. They realized that the lighting
change did not affect productivity but instead the daily interactions with the employees throughout the
process motivated them to work efficiently and increase their output. They allowed employees to voice
their opinions, frustrations and successes which in turn helped the employees feel MORE valuable. In
addition, since they knew were being monitored, they were more motivated to perform on a higher
level. This was a revolutionary discovery that put the spotlight on human relations and highlighted the
importance of individual and group dynamics.

GENERAL SYSTEMS THEORY: In 1940s, biologist Ludwig Von Bertalanffy created his General System on
management. Keep reading to see if you can connect the dots.
Ludwig Von Bertalanffy believed that your body is the sum of all parts. FOR EXAMPLE, your nervous
system works together with your digestive system which work with each organ and muscle group to
allow a person to function. If one function of the body fails to work, the body as whole cannot effectively
operate. Humans are most healthy and functional when all aspects of their being are working together
effectively. He also argued that the environment can have an effect on each of the parts. A BROKEN
LEG CAN PREVENT YOU FROM WALKING OR THE FLU CAN HAVE YOU BEDRIDDEN FOR DAYS. Each of
these issues can damage the overall productivity of a person.

Ludwig Von Bertalanffy’s theory is still found today in many management style and theories. His work
shows that external factors can prove to be toxic to an environment. Although he was referring to the
human body, the same can be said for the workplace. Negativity and other toxic outlooks can have a
harmful effect on motivation and performance at all levels in an organization. And, like his theory
states, even when only one component of theorganizationisn’texe4cuting properly, it will have an
undesirable effect on the rest of the organization.

X and Y MANAGEMENT THEORY : Based his observations in 1950s and 1960s, Douglas McGregor
developed the X and Y Management Theory, by arguing that all managers can be grouped into two
categories. The first category known as Theory X explains that managers have a negative view of their
employees and believe that employees need to be forced or coaxed into working. THEORY X Managers
tend to micromanage with the belief that employees will not motivate themselves to complete their
work. This theory can be linked back to the scientific management theory and its focus on output above
employee development and input.

On the opposite side of the spectrum, Theory Y Managers believe that employees are inherently
motivated to work. Theory Y Managers value the importance of helping their employees to thrive by
providing opportunities for learning and development. Theory Y is focused on the idea of team versus
independent work. McGregor argued that a teame3nvironment paired with an emphasis on individual
professional development produces better results and a healthier work environment. Theory Y
continues to prove its relevance and still present in today’s business world.

SELF – CHECK

1. DIFFERENTIATE SCIENTIFIC, ADMINISTRATIVE AND BUREAUCRATIC MANAGEMENT.

Note: for Thursday class