Development of Management Theory
Development of Management Theory has evolved over centuries, reflecting changes in society, technology, and organizational needs. Here is a brief overview of its key phases and influential contributions
Shruti Dutta28 Jun, 2024
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The development of management theory has been crucial in shaping how organisations operate and achieve their goals. As businesses grew more complex, the need for systematic management approaches became evident. Early pioneers like Frederick Winslow Taylor, Henri Fayol, and Max Weber introduced foundational theories of efficiency, organisation, and control. These early theories addressed the challenges of their time, such as improving productivity and establishing clear structures.
Over time, development of management theory evolved to include human relations and behavioural approaches, recognising the importance of employee motivation and social aspects of work. The Hawthorne experiments by Elton Mayo emphasised the impact of social relationships and morale on productivity. Modern theories, such as systems and contingency theories, reflect a holistic view of organisations, considering internal and external factors. The continuous development of these theories highlights the importance of adapting strategies to meet the unique needs of orgaWhat are Development of Management Theory?
Development of Management Theory has various recommended strategies, including frameworks and guidelines, which can be implemented in modern organisations. Professionals typically do not rely on a single management theory; instead, they integrate concepts from multiple theories to best fit their workforce and company culture. The need for developing management theories arose with the demand for professional organisational management. Through comprehensive study and analysis of business operations and performance management, these theories contribute to running an organisation in alignment with its objectives and goals. A detailed examination of various management theories and approaches is presented below.| Also Read | |
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Popular Management Theories
The development of Management Theory has evolved, offering various approaches to enhance productivity and organisational efficiency. These theories provide frameworks for managers to understand, predict, and influence employee behaviour and organisational outcomes. Here are some of the most influential management theories:Scientific Management Theory
Frederick Winslow Taylor introduced the scientific development of management theory in his 1911 monograph, The Principles of Scientific Management. Taylor argued that achieving business goals requires more than merely working hard. Instead, tasks should be systematically simplified to meet these goals. This theory is based on four main principles:- Science, Not Rule of Thumb: Use objective methods to complete tasks determined through constant experimentation.
- Harmony, Not Discord: Create a positive working atmosphere for employees and employers.
- Cooperation, Not Individualism: Engage managers and employees in setting and determining standards.
- Development of Each Individual’s Efficiency and Prosperity: Train and develop employees from the moment they are hired and assign work based on their skills and interests.
Classical Management Theory
Classical management theory follows a hierarchical structure with one leader making decisions. It assumes that employees are primarily motivated by financial needs. The company can motivate employees to increase productivity by fulfilling these financial needs. While this approach offers a clear division of labour and management clarity, it has been criticised for neglecting employee relations and stifling innovation.Bureaucracy Theory by Max Weber
Max Weber introduced the idea of bureaucratic organisations, emphasising control through knowledge, experience, and expertise. His theory is represented by a hierarchical structure with defined rules and regulations and promotions based on qualifications. Key principles include:- Hiring based on educational and technical qualifications.
- Managers decide promotions based on achievements or experience.
- Establishing a chain of command and a grievance process to protect employee rights.
- Equal distribution of labour and impartial management.
- Keeping records in writing.
- Management should be handled by managers, not the owners.
General Management Theory by Henri Fayol
Henri Fayol, known as the 'Father of Modern Management Theory', proposed a general management theory applicable across all fields of work and administration. Fayol outlined the manager's responsibilities as planning, organising, commanding, coordinating, and controlling. His 14 management principles include:- Division of work for maximum output with minimal effort.
- Authority with corresponding responsibility.
- Employee discipline.
- Unity of command, where each employee reports to one superior.
- Unity of direction towards the primary organisational goal.
- Subordination of individual interests to the general interest.
- Fair remuneration for employees and the firm.
- Centralisation with delegated authority and managerial responsibilities.
- Order with designated places for employees and processes.
- A scalar chain outlining relationships between employees and superiors.
- Equal treatment of employees.
- Stability of personnel tenure.
- Encouragement of initiative.
- Promotion of team spirit and effective communication.
Robert Owen’s Management Theory
The Father of Personnel Management, Robert Owen, proposed reducing working hours and increasing wages. He advocated for an organizational environment that would facilitate collaboration and creativity and enhance productivity. His contributions significantly improved factory working conditions.Hawthorne Experiments by Elton Mayo and F.J. Roethlisberger
The Hawthorne experiments conducted by Elton Mayo and F.J. Roethlisberger demonstrated that productivity improvement in group settings is influenced by factors such as interrelationships among members, morale, and effective management.Ongoing Development of Management Theories
Professional management is crucial for aligning an organisation's mission, vision, and objectives. Various contributors, including Peter Drucker, William Ouchi, and Robert Waterman, have driven the continuous development of management theories."Begin your journey towards academic excellence in Commerce with our comprehensive Class 11 Commerce courses . Master the CBSE syllabus with expert guidance and ace your exams. Enroll now!”
Development of Management Theory FAQs
What is the development of management theory?
The development of management theory focuses on finding effective ways to utilise managerial tools and techniques. It aims to improve organisations' operations, enhance productivity, and achieve organisational goals systematically.
Who is the father of management theory?
Henri Fayol is known as the father of modern management theory. An engineer by profession, Fayol worked at the Compagnie de Commentry-Fourchambault-Decazeville mining company and became manager during the Industrial Revolution in France. He introduced the 14 Principles of Management, which have significantly influenced modern management practices.
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