Management Theories

A classical perspective on management, pioneered by Max Weber and Henri Fayol, emphasises how best to manage and organise work so as to improve productivity.

A scientific approach to management, pioneered by Frederick Taylor, studies a job in great detail to discover the best way to perform it.

Classical and scientific management theory

- Time and motion studies used to reduce inefficiencies
- Hierarchical organisational structure (bureaucracy)
- Clear lines of authority (chain of command)
- Narrow span of control
- Productivity improvements through division of labour
- Production line methods
- Discipline as a feature of leadership
- Autocratic leadership style; rules and procedures.

• Management functions:
- planning: a predetermined course of action. Involves strategic, tactical and operational planning.
- organising: the range of activities that translate the objectives into reality.
- controlling: compares what was intended to happen with what has actually occurred.

The behavioural approach to management, pioneered by Elton Mayo, stresses that people (employees) should be the main focus of the way in which the business is organised.

Behavioural management theory

- Humanistic approach; employees are the most important resource
- Economic and social needs of employees should be satisfied
- Employee participation in decision-making
- Flatter organisational structure and teams
- Broader span of control
- Teams increase output and job satisfaction
- Managers need good interpersonal skills.
- Democratic leadership style emerging.

• Management functions
- leading: having a vision of where the business should be in the long and short term.
- motivating: energising and encouraging employees.
- communicating: exchanging information between people.

Political management theory

- Managers use power and influence to achieve business goals.
- Organisational politics (unwritten rules of work).
- Informal coalitions and networks of stakeholders.
- Cooperation and conflict between coalitions.
- Manager must negotiate and bargain between competing interests.
- Match sources of power to situations.

Sources of power
1. Legitimate - status or positon
2. Expert - skills and abilities
3. Referent - individual's charisma
4. Reward - ability to compensate
5. Coercive - actions or words

Strengths and weaknesses of management theories

Classical and scientific
Strengths:
- based on ‘scientific’ principles
- division of labour
- high worker productivity
- clear chain of command
- rules and regulations
Weaknesses:
- employee boredom and exploitation
- autocratic leadership style
- job satisfaction ignored
- alienation between employees and managers

Behavioural
Strengths:
- human needs recognised
- high morale
- employee empowerment
- motivated team members
- flatter structure improves communication
Weaknesses:
- difficult to predict human behaviour
- slow decision-making process
- no clear chain of command
- conflict between theories

Political
Strengths:
- recognises ‘power plays’
- acknowledges coalitions and networks
- explains power bases
- highlights need for negotiating and bargaining
- explains stakeholders’ role
- acknowledges individual self-interest
Weaknesses:
- misuse of power
- shifting power bases
- source of real power difficult to analyse
- internal conflict
- not based on scientific measurement
- perceived manipulative strategies

Systems and Contingency management theories

The systems management approach views organisations as an integrated process in which all the individual parts contribute to the whole.

A Contingency management approach stresses the need for flexibility and adaptation of management practices and ideas to suit a particular situation.