management theory assignment

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

Section 1: Introduction to Organizational Behavior

What you’ll learn to do: Describe the general history of management theory and practice and frame how organizational behavior has developed from these into a discreet field

Management theory? I thought this was an organizational behavior class.

You are probably wondering why the first section in your organizational behavior text is focused on management theory. Like most modern-day theories and ideologies, organizational behavior has evolved over time as people adapt to changes in society. In order to understand organizational behavior, we must first understand management theory and how the people before us used these theories to guide and direct formal organizations to be more successful.

It is important to remember that organizational behavior has developed from management theory into a distinct field of its own. Let’s move ahead to deep dive into how management theories influenced and formed organizational behavior as it is known today.

Learning Outcomes

• Describe the history of management theory
• Differentiate among Scientific, Administrative, and Bureaucratic Management Theories
• Differentiate among Human Relations, General, and X&Y Management Theories
• Describe the relationship between management theory and organizational behavior

History of Management Theory

So what is management theory? First, let’s break down the term. Theories help us understand our experiences by using research and observable facts. Management is the act of supervising and directing people, tasks, and things [1] . So, simply put, management theory is a collection of understandings and findings that help managers best support their teams and goals.

The Importance of Management Theories

Management theories help organizations to focus, communicate, and evolve. Using management theory in the workplace allows leadership to focus on their main goals. When a management style or theory is implemented, it automatically streamlines the top priorities for the organization. Management theory also allows us to better communicate with people we work with which in turn allows us to work more efficiently. By understanding management theory, basic assumptions about management styles and goals can be assumed and can save time during daily interactions and meetings within an organization.

Theories can only reach so far, and management theories are no exception. There is no such thing as a one-size-fits-all management theory. What may work for one organization may not be relevant for another. Therefore, when one theory does not fit a particular situation, it is important to explore the option of developing a new theory that would lead in a new, more applicable direction. While some theories can stand the test of time, other theories may grow to be irrelevant and new theories will develop in their place.

The Evolution of Management Theory

The industrial revolution brought better and faster technology allowing companies to perform more efficiently than ever before and gave them the ability to dramatically increase their output. However, increased output meant lower prices which increased demand which in turn required more employees. Companies that once had a couple dozen employees were now growing into gigantic corporations. No longer was it possible for a manager to know each and every one of their employees on a friendly level. In order to meet demand, company leadership had to ensure their employees were productive. Sounds simple, right? Not exactly.

While productivity goals can be set easily, managing a team to meet productivity goals was not so simple. For the first time, managers had to find new and innovative ways to motivate a sizable number of employees to perform. Since this was a new concept, research, observations, experiments, and trial and error were all used to find new and better ways to manage employees. The industrial revolution gave birth to a variety of management theories and concepts, many of which are still relevant and essential in today’s workforce. In addition, many management theories have developed since the end of the industrial revolution as society continues to evolve. Each management theory plays a role in modern management theory and how it is implemented.

Practice Question

Let’s take a look at some key management theories, explore their history and reasoning, and learn about the masterminds behind them.

Different Management Theories

During the Industrial Revolution, it became obvious that the ways companies operated their businesses had to drastically change. While many people were in agreement that change was inevitable, pioneers in management theory differed in how they believed things should change and operate. In this page, we are going to explore six different management theories, all of which helped to form the base of management as it is known today. Keep in mind as you read about each one, that while some parts of the theories may be common sense to us today, at the time they were developed, they were groundbreaking. While the industrial revolution sparked these new theories, even more innovation came in the decades that followed as companies changed to adapt to business needs.

Scientific Management Theory

Frederick Winslow Taylor developed and published his Scientific Management Theory in 1909. At its 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 inefficient 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 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 groundbreaking 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. Nowadays, 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 were able to create a more balanced pay system, better training, and a more efficient workforce.

Administrative Management Theory

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 is 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 focuses on the organizational structure of a company as a whole.

Some of Fayol’s principles included a clear division of labor, ensuring each employee 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 goals. Fayol believed that organizational structure was vital to the success and productivity of a company.

Bureaucratic Management Theory

The word bureaucracy tends to give off a negative vibe, implying that a bureaucratic organization is an impersonal machine that focuses more on numbers and output than on the wellbeing of its employees. However, its intended meaning is quite different. At the end of the 19th century, Max Weber created the bureaucratic management theory. Unlike today’s interpretation of the word, Weber believed that bureaucracy meant carefully developing and spelling out company objectives and divisions of labor. While this included developing a hierarchy of command within the company, it also included supporting and developing employees.

Weber built onto Taylor’s theory by adding a few key ideas of his own. Like Taylor, Weber believed efficiency in completing tasks was a key component to success and recommended detailed record keeping at all levels to monitor efficiency as well as areas of opportunity. He agreed that all employees need to have clear job expectations and each job should be standardized to allow for maximum productivity. The greatest difference between the scientific theory and the bureaucratic theory is that Weber believed in the importance of human emotion.

Emotion in business? This was absolutely unheard of during the industrial revolution. However, Weber believed the two words were closely associated. Weber argued that the increased use of technology could have a negative impact on a company’s culture. Too much change can be harmful to company morale and create long lasting negative effects on company success. In addition, Weber argued it was extremely important to hire based on skill and, just as importantly, personality. To ensure the safety and longevity of a company’s culture, Weber believed hiring employees based on their personality was critical.

Even in today’s business world, there is an anti-bureaucratic tone. For example, the term management is often replaced with leadership. The argument for this is that management is a mundane and structured task while leadership is a unique and heroic act. With this thought process, managers are viewed in a negative light while leaders are appreciated and recognized. Although in many places managers and leaders may appear to perform their job the same way, the focus on eliminating bureaucratic tone and perceived terminology from today’s workplace is evident [2] .

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, onboarding 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 Theory, and X&Y Management Theory.

Human Relations Management Theory

As the title implies, Human Relations Management Theory is centered around human interactions and relationships. Elton Mayo believed that all early management theories only focused on how money affects employee performance. He believed there were more factors that influenced how employees behaved and performed at work. To test his theory, he began a study at Chicago’s Western Electric Hawthorne Plant in the 1920s and 1930s 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 study was to determine how changing the lighting would or 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 departments to see if the results were similar. They realized that the lighting changes did not affect productivity but instead the daily interactions with the employees throughout the process motivated them to work more 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 they 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 the 1940s, biologist Ludwig von Bertalanffy created his General Systems Theory. I know you’re probably wondering why a biologist would have any impact 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 a 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 styles 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 the organization isn’t executing properly, it will have an undesirable effect on the rest of the organization.

X&Y Management Theory

Based on his observations in the 1950s and 1960s, Douglas McGregor developed the X&Y Management Theory, 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 team environment paired with an emphasis on individual professional development produces better results and a healthier work environment. Theory Y continues to prove its relevance and is still present in today’s business world.

Now that we’ve discussed six different management theories, where do we go next? I’m so glad you asked! There is a very important link between management theory and organizational behavior. Although the concepts are different, these six management theories helped develop organizational behavior into its own unique field. Let’s move on to learn more about how the two are connected!

Management Theory and Organizational Behavior

The first management theory that helped establish the foundation for organizational behavior was Taylor’s Scientific Management Theory. As we discussed earlier, Taylor placed a huge focus on productivity and worked to establish the most efficient ways to accomplish every task, big and small. Taylor’s theory impacted each organization’s productivity and it also changed the professional and personal dynamic of its employees and managers. This classical approach to management was later challenged by the onset of the human relations management movement which helped to further develop the groundwork organizational behavior.

While effective for productivity, the scientific management theory was missing a key component, human relations. In response to the classical management approach, human relations management theory was born. The Hawthorne Studies were a shining example of how much human relations and interactions can affect the workforce. A connection was finally made between productivity and the people responsible for it. The Hawthorne Studies proved that it was important for companies to take interest in their employees in order to increase productivity and decrease turnover. Not only did the studies show that individuals performed better when given attention, it also revealed that group dynamics were equally as important as individual contentment. It was becoming clear that the individual and group dynamics in an organization were equally important and directly related to the output of a company. It was through this revelation that people began to study the behavior of organizations at multiple levels; individual, group, and whole organization.

Another big impact on the development of organizational behavior was McGregor’s Theory X & Theory Y. As you read in the last section, the two theories are extremely different. Theory X states that people are inherently lazy and need to be forced to work. Theory Y on the other hand, says that people are motivated to work and argues the importance of a team dynamic. Theory Y is the more effective of the two theories and is a fundamental part of the foundation for organizational behavior.

While organizational behavior roots can be found in many management theories, it was not officially recognized as a field of its own until the 1970s. Since the 1970s, organizational behavior has developed into its own unique field covering a wide variety of topics for individual and group relations within organizations. This course will help you deep dive into the interworking of organizational behavior and help you understand how organizational behavior affects the day-to-day lives of employees in the workplace.

• Management Theory and Organizational Behavior. Authored by : Freedom Learning Group. Provided by : Lumen Learning. License : CC BY: Attribution
• Untitled. Authored by : Elevate. Provided by : Unsplash. Located at : https://unsplash.com/photos/rT1lK2GEVdg . License : CC0: No Rights Reserved . License Terms : Unsplash License
• Untitled. Authored by : rawpixel. Provided by : PIxabay. Located at : https://pixabay.com/photos/office-business-paperwork-document-3295556/ . License : CC0: No Rights Reserved . License Terms : Pixabay License
• Taylor, F. W. (1914). The principles of scientific management . Harper. ↵
• McCann, Leo. “From Management to Leadership.” The SAGE Sociology of Work and Employment , edited by S Edgell, E Granter, and H Gottfried, SAGE, 2015. ↵

1.2 Management Theory and Organizational Behavior Copyright © 2019 by Graduate Studies is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

Share This Book

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

Book Title: Principles of Management

Author: [Authors removed at request of original publisher]

Download this book

• Digital PDF
• Pressbooks XML
• OpenDocument

Book Description: Principles of Management teaches management principles to tomorrow’s business leaders by weaving three threads through every chapter: strategy, entrepreneurship and active leadership. For questions about this textbook please contact [email protected]

Book Information

Book description.

Principles of Management is adapted from a work produced by a publisher who has requested that they and the original author not receive attribution. This adapted edition is produced by the University of Minnesota Libraries Publishing through the eLearning Support Initiative. For questions about this textbook please contact [email protected]

Principles of Management Copyright © 2015 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

• school Campus Bookshelves
• menu_book Bookshelves
• perm_media Learning Objects
• login Login
• how_to_reg Request Instructor Account
• hub Instructor Commons

Margin Size

• Download Page (PDF)
• Download Full Book (PDF)
• Periodic Table
• Physics Constants
• Scientific Calculator
• Reference & Cite
• Tools expand_more
• Readability

selected template will load here

This action is not available.

1.8: Assignment- Relationships Between Management Theory and Organizational Behavior

• Last updated
• Save as PDF
• Page ID 48593

\( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \)

\( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)

\( \newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\)

( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\)

\( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\)

\( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\)

\( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\)

\( \newcommand{\Span}{\mathrm{span}}\)

\( \newcommand{\id}{\mathrm{id}}\)

\( \newcommand{\kernel}{\mathrm{null}\,}\)

\( \newcommand{\range}{\mathrm{range}\,}\)

\( \newcommand{\RealPart}{\mathrm{Re}}\)

\( \newcommand{\ImaginaryPart}{\mathrm{Im}}\)

\( \newcommand{\Argument}{\mathrm{Arg}}\)

\( \newcommand{\norm}[1]{\| #1 \|}\)

\( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\AA}{\unicode[.8,0]{x212B}}\)

\( \newcommand{\vectorA}[1]{\vec{#1}}      % arrow\)

\( \newcommand{\vectorAt}[1]{\vec{\text{#1}}}      % arrow\)

\( \newcommand{\vectorB}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \)

\( \newcommand{\vectorC}[1]{\textbf{#1}} \)

\( \newcommand{\vectorD}[1]{\overrightarrow{#1}} \)

\( \newcommand{\vectorDt}[1]{\overrightarrow{\text{#1}}} \)

\( \newcommand{\vectE}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash{\mathbf {#1}}}} \)

Open Pedagogy Assignments in which students use their agency and creativity to create knowledge artifacts that can support their own learning, their classmates’ learning, and the learning of students around the world. (See this peer-reviewed article for more details.) This assignment is aligned to the learning outcomes of Organizational Behavior/Human Relations and we’ve identified the module where the reading appears. All of the assignments can be created with a cell phone camera or any video recording device, Google or Word documents, and your learning management system.

Learning Objectives

• Describe the relationship between management theory and organization behavior

In Module 1, we cover the history of management theories and organizational behavior. This assignment will help you describe the influence of management theories on current practices of workflow, company policies, and management styles.

Using your cell phone or any other recording device, create a short video advising a fellow student who shares your interest in learning more about the relationship between management theory and organizational behavior. You don’t have to edit or create a professional-grade film. You’ve most likely have done this type of recording already on social media, so feel free to use the same informal conversational tone.

You may need to do a quick internet search to review management theories, and you’ll want to review the information in this module. Think of your audience as fellow students who are interested to learn about these theories. Better yet, try to explain to your audience as if you were talking to somebody who is not taking this course.

In your video, you can address two of the three questions in your video:

• What is management theory in your own words? Use one theory as an example in your definition.
• How do organizational behavior theories help explain workflow practices and company policies?
• How are management styles influenced by organizational behavior?

A Note To Teachers: You may need to review the management theories, define workflow practices, and guide the students through the early formation of organizational behavior as a field of study. This is also a great opportunity to share your expertise and experience with students. For this assignment, the first term students will be creating the videos, and then the next term’s students can respond to the videos. After you have a few terms of student examples, use the best three from the batch and start the process over again. Using the videos as starting points for OL discussion boards may work as well.

Contributors and Attributions

• Management Theory and Organizational Behavior. Authored by : Lumen Learning . License : CC BY: Attribution

How it works

For Business

Join Mind Tools

Article • 10 min read

Henri Fayol's Principles of Management

Understanding historical administrative theory.

By the Mind Tools Content Team

As your career progresses, you may find you do fewer technical tasks and spend more time guiding a team or planning strategy.

While that's often a given today, in the 19th century most companies promoted the best technicians. But Henri Fayol recognized that the skills that made them good at their jobs didn't necessarily make them good managers.

Who Was Henri Fayol?

Fayol was an engineer who worked his way up to become manager of the Compagnie de Commentry-Fourchambault-Decazeville mining company in France, at the tail end of the industrial revolution. Under his watch, the struggling firm prospered.

He wrote, "When I assumed the responsibility for the restoration of Decazeville, I did not rely on my technical superiority... I relied on my ability as an organizer [and my] skill in handling men." [1]

Fayol's 14 Principles of Management identified the skills that were needed to manage well. As well as inspiring much of today's management theory, they offer tips that you can still implement in your organization. Fayol also created a list of the five primary Functions of Management , which go hand in hand with the Principles.

What Is Administrative Theory?

Fayol called managerial skills "administrative functions." In his 1916 book, "Administration Industrielle et Générale," he shared his experiences of managing a workforce.

Fayol’s book – and his 14 Principles of Management – helped to form what became known as Administrative Theory . It looks at the organization from the top down, and sets out steps for managers to get the best from employees and to run a business efficiently.

Administrative Theory is characterized by people "on the ground" who share personal experiences, improve practices, and help others to run an organization. This contrasts with the Scientific Management school led by Frederick Taylor , which experimented with how individuals work to boost productivity.

What Are Fayol's 14 Principles of Management?

It was the reality of Fayol's day-to-day managing, seeing what worked and what didn't, that informed his 14 Principles of Management. By focusing on administrative over technical skills, the Principles are some of the earliest examples of treating management as a profession. They are:

• Division of Work. Assign each employee a task that they can become proficient at. Productivity increases as employees become more skilled, assured and efficient. Today, experts still warn against multi-tasking.
• Authority. Managers must possess the authority to give orders, and recognize that with authority comes responsibility. As well as rank, Fayol argues that a manager's intelligence, experience and values should command respect.
• Discipline. Everyone should follow the rules . To help, you can make agreements between the organization and employees clear for all to see. [2]
• Unity of Command. Fayol wrote that "an employee should receive orders from one supervisor only." Otherwise, authority, discipline, order, and stability are threatened.
• Unity of Direction. Teams with the same objective should be working under the direction of one manager, using one plan. That, Fayol wrote, "is the condition essential to unity of action, coordination of strength and focusing of effort."
• Collective Interest Over Individual Interest. Individuals should pursue team interests over personal ones – including managers.
• Remuneration. Employee satisfaction depends on fair remuneration for everyone – financial and non-financial. Fayol said pay should be fair and reward "well-directed effort."
• Centralization. Balancing centralized decision making (from the top) with letting employees make decisions. Or as Fayol wrote, "A place for everyone and everyone in his place."
• Scalar Chain. Employees should know where they stand in the organization's hierarchy and who to speak to within a chain of command. Fayol suggested the now-familiar organization chart as a way for employees to see this structure clearly. [3]
• Order. Fayol wrote that, "The right man in the right place" forms an effective social order. He applied the same maxim to materials: right one, right place. Academics note that this principle pre-empted the Just in Time (JIT) strategy for efficient production. [4]
• Equity. Managers should be fair to all employees through a "combination of kindliness and justice." Only then will the team "carry out its duties with... devotion and loyalty."
• Stability of Tenure of Personnel. Organizations should minimize staff turnover and role changes to maximize efficiency. If people are secure and good at their jobs, they are happier and more productive.
• Initiative. Employees should be encouraged to develop and carry out plans for improvement. As Fayol wrote, "At all levels of the organizational ladder, zeal and energy on the part of employees are augmented by initiative."
• Esprit de Corps. Organizations should strive to promote team spirit, unity, and morale.

What are Fayol's Five Functions of Management?

While Fayol's 14 Principles look at the detail of day-to-day management, his Five Functions of Management provide the big picture of how managers should spend their time. They are:

• Planning: the need "to assess the future and make provision for it." That includes a flexible action plan that considers a firm's resources, work in progress, and future market trends.
• Organizing: laying out lines of authority and responsibility for employees. This covers recruitment and training, coordinating activities, and making employees' duties clear.
• Commanding: getting the most from people. So, managers must know their employees' skills, delegate to tap into these skill sets, and set a good example.
• Coordinating: in a well-coordinated organization, departments know their responsibilities, the needs of other teams, and their obligations to them.
• Controlling: continually checking that rules, plans and processes are working as well as they should be.

Is Fayolism Still Relevant Today?

You only have to look at the language he used to see that Fayol was writing over 100 years ago. For example, he refers to employees as "men."

But, as Daniel Wren writes, "Without the contributions of these pioneers, such as Fayol, we would probably be teaching industrial engineering, sociology, economics, or perhaps ergonomics to those who aspire to manage. To be doing so would push us back to the 19th century when technical know-how reigned supreme as a path to managerial responsibility." [5]

And if you look closer, you'll discover that many of Fayol's points are fresh and relevant. Such as:

• His Principles advocate teamwork and working together for the mutual benefit of the business.
• The Five Functions reveal the need for organizations to plan and be agile in the face of changing market conditions.
• Fayol was one of the first people to recognize that management is a continuous process.
• Before human resources management, Fayol wrote about motivating people by inspiring initiative, commanding respect through values, and ensuring that people have the time and training they need to be happy and productive at work.
• The manager who is respected for their values leads by example , makes time to get to know their employees, and gives them the training they need, sounds a lot like a modern manager. Some of these ideas may seem a bit obvious, but at the time they were groundbreaking. And the fact that they've stuck shows just how well Fayol's Principles work.

Criticism of Fayol's Principles of Management

That's not to say that everyone is a fan of Fayol's Administrative Theory. Some detractors claim that:

It's unscientific. Fayol's critics question whether you can ground a theory in the observations of one person. But Fayol stressed that he was laying a foundation for others to build on.

This is just what Luther Gulick and Lyndall Urwick did in 1937 when they used Fayol's ideas to form their POSDCORB model for working efficiently. And research shows that more modern critics of Fayol – such as Mintzberg, Kotter and Hales – in fact use many of his ideas.

It's too prescriptive. If some of Fayol's Principles look dated, there's a reason for that. Many critics argue that one set of Principles can't govern all managers. In fact, Fayol wrote that his list was "incomplete," and that the Principles were flexible and adaptable.

Today, academics have shown how Fayol's work can be updated to complement modern management theorists, such as Porter. [2]

It's cold and inhuman. Critics of historical management theories point to an emphasis on efficiency over the social and psychological needs of workers. But managing with kindness, instilling a sense of initiative, and building morale reveal a level of consideration for workers that was enlightened at the time.

Fayol highlighted the differences between managerial and technical skills. What's more, he was one of the first people to recognize that "manager" is a profession – one whose skills need to be researched, taught and developed.

Fayol's 14 Principles and Five Functions helped to form Administrative Theory. It was progressed by workers and managers alike – non-academics who shared and learned from their experiences.

[1] Fayol, H. (2013). ' Administration Industrielle et Générale (General and Industrial Management) ,' Eastford, CT: Martino Fine Books.

[2] Yoo, J-W., Lemak, David J., & Choi. Y. (2006). 'Principles of Management and Competitive Strategies: Using Fayol to Implement Porter,'  Journal of Management History . Available here .

[3] Lunenburg, F.C. & Ornstein, A. (2021). ' Educational Administration Concepts and Practices ,' New York: Sage Publishing.

[4] Fells, M.J. (2000). 'Fayol Stands the Test of Time,'  Journal of Management History (Archive) . Available here .

[5] Wren, Daniel A. (1995). 'Henri Fayol: Learning From Experience,'  Journal of Management History (Archive) . Available here .

You've accessed 1 of your 2 free resources.

Get unlimited access

Discover more content

5 steps for achieving a win-win negotiation.

Getting to Yes Through Mutual Gain

Book Insights

Black Box Thinking: The Surprising Truth About Success

Matthew Syed

Add comment

Comments (0)

Be the first to comment!

Sign-up to our newsletter

Subscribing to the Mind Tools newsletter will keep you up-to-date with our latest updates and newest resources.

Subscribe now

Business Skills

Personal Development

Leadership and Management

Member Extras

Most Popular

Latest Updates

Using Mediation To Resolve Conflict

Mind Tools Store

About Mind Tools Content

Discover something new today

Resolving workplace conflict through mediation.

Managing Disputes Informally

Personal SWOT Analysis

Making the Most of Your Talents and Opportunities

How Emotionally Intelligent Are You?

Boosting Your People Skills

Self-Assessment

What's Your Leadership Style?

Learn About the Strengths and Weaknesses of the Way You Like to Lead

Recommended for you

This Article Outlines Why You Might Want to Reverse the Leader-Follower Relationship

Business Operations and Process Management

Strategy Tools

Customer Service

Business Ethics and Values

Handling Information and Data

Project Management

Knowledge Management

Self-Development and Goal Setting

Time Management

Presentation Skills

Learning Skills

Career Skills

Communication Skills

Negotiation, Persuasion and Influence

Working With Others

Difficult Conversations

Creativity Tools

Self-Management

Work-Life Balance

Stress Management and Wellbeing

Coaching and Mentoring

Change Management

Team Management

Managing Conflict

Delegation and Empowerment

Performance Management

Leadership Skills

Developing Your Team

Talent Management

Problem Solving

Decision Making

Member Podcast

Management Notes

Theories of Management – 5 Major Theories Explained in Detail | Principles of Management(POM)

Theories of management.

Table of Contents

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. They have evolved over time and offer different perspectives on managing people, resources, and organizations.

The following management theories are explained in detail:

A) Scientific Management:

Developed by Frederick Taylor, Scientific Management optimizes efficiency and productivity through scientific analysis and standardization of work processes. Key points of this theory include:

Time and Motion Studies: Taylor conducted studies to break down tasks into smaller, more efficient parts. The goal of his study was to identify the best way to perform tasks so that unnecessary movements would be eliminated and productivity would increase.

Division of Labor: The division of labor principle advocates assigning specialized tasks to workers based on their skills and abilities. The division of work can increase specialization and knowledge in organizations.

Standardization: Standardization of work methods, tools, and procedures helps achieve consistency and efficiency. By establishing standard procedures, organizations reduce variability and enhance efficiency.

Incentives: Scientific Management recommends providing financial rewards or incentives to motivate workers towards meeting productivity targets. Taylor believed that employees would be motivated by a fair and consistent rewards system.

B) Administrative Management Theory:

In Administrative Management theory, Henri Fayol is associated with the overall management of organizations. Its key principles include:

Unity of Command: This principle states that every employee must receive orders from one manager in order to avoid confusion and conflicts and to ensure that clear lines of authority and accountability are maintained.

Scalar Chain: This principle emphasizes the importance of clear lines of communication and coordination through the organizational hierarchy.

Division of Work: Organizations can maximize their strengths and skills by assigning tasks according to their specializations and expertise.

Unity of Direction: This principle emphasizes the importance of aligning efforts within an organization to achieve a common goal.

C) Behavioral Management Theory:

This theory focuses on understanding and improving the behavior of individuals within organizations. Key concepts include:

Hawthorne Effect: This finding illustrates the significance of social and psychological factors in the workplace by demonstrating that employee productivity is enhanced by being aware of being observed and valued for their work.

Human Needs and Motivation: According to behavioral theorists, employees have a variety of needs and motivations that influence their behavior. According to Maslow’s Hierarchy of Needs and Herzberg’s Two-Factor Theory, fulfilling employees’ needs enhances motivation and job satisfaction.

Leadership styles: Behavioral management theory explores different leadership styles and how they influence employee performance and behavior. A manager’s attitude toward employees can be influenced by a number of different styles, including autocratic, democratic, or laissez-faire leadership.

Group Dynamics: This approach to behavioral management emphasizes the influence of group dynamics on individual behavior and performance. Employee productivity and satisfaction are strongly influenced by factors such as team building, effective communication, and conflict resolution within groups.

D) Systems Management Theory:

Systems Management views organizations as complex systems comprised of interrelated and interdependent components. It focuses on a number of key concepts, such as:

Systems Thinking: The Systems Management theory emphasizes that organizations are made up of subsystems that interact with each other and with their external environment. By using this perspective, managers gain a better understanding of how organizations interconnect and depend on one another.

Synergy: Synergy refers to the belief that an organization is greater than the sum of its parts. Systems theorists believe that subsystems can be collaboratively interconnected to create value.

Feedback loops: Using feedback loops within organizations provides valuable information from internal and external sources, allows organizations to monitor and adjust their performance, among other things.

Contingency Approach: A contingency approach acknowledges that there is no universal management approach that is suitable for every situation. When making decisions, managers need to take into account factors such as organizational culture, technology, and the external environment. Management practices should be tailored to specific circumstances and contexts.

E) Theory of Contingency Management:

It emphasizes that management practices need to be tailored to the unique circumstances and context in which they are applied. Principles of this theory include:

Fit between Strategy and Environment : A contingency approach emphasizes the importance of aligning organizational strategies with the external environment. For organizations to succeed long-term, they need to understand and adapt to their industry’s specific conditions.

Contingency Factors: Management effectiveness is influenced by a number of contingency factors. These factors include an organization’s size, industry, technology, culture, and external market conditions. Adapting management practices to these factors increases the likelihood of success.

Flexible Management Approaches: Contingency Management theory recognizes the need for flexible management approaches. There is no “one size fits all” approach to management. Managers should be able to adapt and adjust their practices according to the specific needs and circumstances of the organization.

Problem-Solving Orientation: Contingency approaches promote a problem-solving mindset among management. Instead of relying on pre-determined solutions, managers should analyze problems and make decisions based on the unique situation they face. In finding solutions, this approach encourages adaptability and creativity.

It is possible for managers to gain insight into various aspects of organizational management if they understand and apply these management theories and choose appropriate approaches depending on their unique circumstances. The theories provide frameworks for guiding decision-making, enhancing leadership abilities, and improving organizational effectiveness.

• Contingency Theory – 4 Types of Contingencies Leadership Theories | Theories of Organization
• Recent Posts

• Frito Lay SWOT Analysis – Strengths, Weaknesses, Opportunities & Threats | SWOT Analysis - January 11, 2024
• Fox News SWOT Analysis – Strengths, Weaknesses, Opportunities & Threats | SWOT Analysis - January 5, 2024
• Freshly SWOT Analysis – Strengths, Weaknesses, Opportunities & Threats | SWOT Analysis - January 4, 2024

Share this:

Leave a comment cancel reply.

Notify me of follow-up comments by email.

Notify me of new posts by email.

Classical Theory of Management: Definition, Types, Features, Examples, and Pros/Cons

Table of Contents

What is Classical Theory of Management?

The classical theory of management, which emerged during the 19th century’s Industrial Revolution, is a management approach that prioritizes efficiency and productivity in organizations . It views employees as having primarily economic and physical needs while neglecting their social needs and job satisfaction. The theory emphasizes streamlined operations, specialization of labor, and centralized decision-making under a clear hierarchical structure.

This management theory aims to find the most efficient ways of performing tasks, using scientific management principles. It originated to address challenges in the factory system and to maximize profits through a clear focus on productivity. Although less prevalent in modern times, some of its principles are still applied, especially in small business manufacturing settings.

The classical management theory seeks to optimize productivity and efficiency, viewing employees as instrumental to the production process, with their economic needs as the primary concern.

Objectives of Classical Management Theory

The major objectives of classical management theory include the following six:

• Maximize productivity
• Streamline operations
• Achieve efficiency
• Centralize decision-making
• Specialize labor
• Increase profit

Features of Classical Theory of Management

The followings are the four main concepts upon which the classical theory of management is based on.

Hierarchical Structure

The classical theory of management advocates for a clear and structured hierarchy in organizations. This means dividing the workforce into different levels of management , with top executives setting long-term goals, middle management overseeing departments, and supervisors handling day-to-day operations. This structure ensures smooth communication, well-defined roles, and effective decision-making.

Specialization

In the classical management theory, work tasks are divided into smaller, specialized components. Employees are assigned specific tasks based on their skills and expertise, enabling them to focus on their areas of proficiency.

Related : What is Division of Work?

Specialization aims to increase efficiency and productivity by preventing multitasking and reducing time wasted on task switching.

This management theory relies on financial incentives to motivate employees. The belief is that workers are primarily driven by economic needs, and offering them monetary rewards for increased productivity will boost their motivation to work harder and be more efficient.

Autocratic Leadership

This theory promotes an autocratic leadership style, where decision-making is concentrated in the hands of a single leader or a small group of authority figures. This approach allows for quick decision-making without the need for extensive consultations. The leader’s instructions are communicated downward to the employees, ensuring a clear chain of command .

Related : What is Management Style?

What are Classical Theories of Management?

The classical theory of management is based on the theories of three main classical management thinkers – F.W. Taylor, Henri Fayol, and Max Weber. Let’s look at their management theories.

F.W. Taylor’s Scientific Management

Scientific Management Theory , also known as Taylorism, is a management approach developed by Frederick W. Taylor with the aim of enhancing economic efficiency and labor productivity. It employs scientific methods to analyze work processes and optimize production, focusing on evidence-based practices to achieve higher productivity.

Taylor’s core principles include selecting methods based on scientific research, assigning tasks based on worker aptitudes, monitoring performance, and dividing the workload effectively. By conducting time and motion studies, managers can identify the most efficient ways to perform tasks and improve overall efficiency.

The history of scientific management dates back to the early 20th century when Taylor published “Principles of Scientific Management.” His contributions included emphasizing specialization, training, and optimizing workflows to achieve economic efficiency. Today, scientific management continues to influence modern organizational strategies, promoting systematic approaches to improve efficiency.

Some examples of organizations implementing scientific management include McDonald’s, which uses time and motion studies to optimize food preparation processes, and Amazon, which employs technology and time studies in its fulfillment centers to streamline operations.

The core principles of scientific management are science-based decision-making, cooperation between workers and management, encouraging a mental revolution for embracing change, fostering teamwork, and developing employees’ potential to achieve maximum efficiency.

Time study involves determining the exact time required to complete tasks, while motion study focuses on optimizing physical movements during work. Scientific management theory remains relevant today, seeking to enhance efficiency and productivity through evidence-based approaches in various industries.

Henri Fayol’s Administrative Management Theory

Administrative Management Theory , developed by Henri Fayol, focuses on organizing and managing an organization’s entire structure. It emphasizes formal structures, clear roles, and efficient coordination to enhance productivity. Fayol’s 14 principles of management , such as division of labor, authority, and unity of command, guide effective management practices.

The theory advocates five essential managerial functions: planning, organizing, commanding, coordinating, and controlling. Fayol’s principles continue to influence modern management practices worldwide. However, the approach has limitations, neglecting human behavior and adaptability in dynamic environments.

Administrative Management Theory’s historical roots trace back to the early 20th century, emphasizing the need for improved efficiency in the workplace. Fayol’s principles highlight top-level management’s role as a foundation for overall productivity.

Examples of companies implementing this theory include General Electric, Toyota, and McDonald’s, utilizing formalized structures, coordination, and standardization to optimize efficiency.

Although Fayol’s principles are valuable, they may not suit complex modern businesses. Despite limitations, administrative management principles remain influential, guiding managers in various industries to create functional and productive work environments.

Max Weber’s Bureaucracy Theory

The Bureaucracy Theory of Management , introduced by Max Weber, emphasizes efficient organizational structure and administration. It advocates a hierarchical system with clear authority, strict rules, and impartiality. Task specialization ensures that skilled specialists handle specific responsibilities, promoting efficiency.

Bureaucracies prioritize formal selection, treating all members equally and discouraging favoritism. The principles aim to achieve rational decision-making and effective management in large organizations.

Weber believed that while an ideal bureaucracy may not exist, its principles serve as a framework for effective management. However, critics argue that bureaucracy can be rigid and lack personal touch.

Max Weber’s six principles of bureaucracy include task specialization, formal selection, impersonality, hierarchical layers of authority, rules and regulations, and career orientation.

Bureaucratic organizations, despite their advantages, may suffer from slow decision-making, resistance to change, and impersonal relations.

Also Read: What is Middle Management?

Examples of bureaucratic organizations include government agencies, large corporations, educational institutions, military organizations, and healthcare facilities.

The main contributor to the Bureaucracy Theory is Max Weber, although other theorists like Henri Fayol, Chester Barnard, and Frederick Taylor also discussed related concepts. Their contributions complement the understanding of bureaucracy and efficient organizational management.

Pros and Cons of Classical Theory of Management

Let’s explore some pros and cons of the classical management approach.

• Increased Efficiency : Classical management theory aims to improve efficiency by identifying the most effective ways to complete tasks. This leads to reduced wastage of time and resources, resulting in higher productivity.
• Clear Structure: Classical management provides a clear organizational structure with well-defined roles, responsibilities, and reporting relationships. This clarity helps in avoiding conflicts and confusion within the organization.
• Division of Labor : The theory promotes task specialization and division of labor, allowing employees to focus on specific tasks they are skilled at. This specialization leads to improved expertise and efficiency.
• Time and Cost Savings : By applying scientific methods and standardizing processes, classical management reduces unnecessary movements and errors, resulting in time and cost savings for the organization.
• Applicability in Different Industries : The principles of classical management theory can be applied to various industries and organizations, making it a versatile and widely applicable approach.
• Development of Management Principles : Classical management theory laid the foundation for future management principles and theories. It inspired further research and the evolution of modern management practices.
• Emphasis on Evidence-Based Approaches : Both Scientific Management and Administrative Management prioritize evidence-based decision-making and systematic analysis of processes, promoting a data-driven approach to management.

Also Read: What is Participative Management? Definition, Types, Examples, and Pros/Cons

• Overemphasis on Efficiency : Classical management theory’s primary focus on efficiency and productivity may lead to neglecting other important aspects of the organization, such as employee well-being, creativity, and innovation.
• Rigidity and Inflexibility : The standardized procedures and hierarchical structures in classical management can create a rigid and inflexible organizational environment. This may hinder the organization’s ability to adapt to changing market conditions and emerging challenges.
• Limited Employee Autonomy : Classical management’s top-down approach may limit employee autonomy and decision-making power. This can result in disengaged employees who feel they have little control over their work processes.
• Neglect of Human Factors : Classical management theory tends to overlook the psychological and social aspects of work. Employees may feel devalued, leading to decreased job satisfaction and motivation.
• Inequitable Treatment : The principles of classical management may not account for individual differences, leading to a one-size-fits-all approach that might not consider the diverse needs and strengths of employees.

Who are Contributors to Classical Management Theory?

Classical management theory was developed and shaped by several prominent contributors, each of whom made significant contributions to the field of management . The key contributors to classical management theory are as follows:

• Frederick Winslow Taylor (1856-1915) : Known as the “Father of Scientific Management,” Taylor is one of the pioneers of classical management theory. He focused on scientific methods to improve efficiency and productivity in industrial settings. Taylor’s time and motion studies, along with his principles of management, laid the foundation for scientific management.
• Henri Fayol (1841-1925) : A French mining engineer and management theorist, Fayol is often referred to as the “Father of Modern Management.” He developed the administrative management theory, emphasizing the functions of managers and the principles of management, including division of work, authority, and unity of command.
• Max Weber (1864-1920) : A German sociologist, Weber introduced the bureaucratic theory of management. He emphasized the importance of formalized structures, clear lines of authority, and standardized procedures to achieve efficient and rational management in organizations.
• Frank and Lillian Gilbreth : An industrial engineering couple, Frank and Lillian Gilbreth, made significant contributions to scientific management and time-motion studies. They focused on eliminating unnecessary movements and improving work processes for increased productivity.
• Henry Gantt (1861-1919) : An American engineer and management consultant, Gantt developed the Gantt chart, a visual tool for scheduling and planning tasks in projects. His work contributed to the development of project management principles.
• Harrington Emerson (1853-1931) : An efficiency engineer and management consultant, Emerson introduced the concept of “Efficiency Management” based on scientific principles and functional management.
• Hugo Munsterberg (1863-1916) : A psychologist and pioneer of industrial psychology, Munsterberg applied psychological principles to management practices, emphasizing the importance of understanding and motivating employees.
• Mary Parker Follett (1868-1933) : An American social worker, management consultant, and pioneer in the fields of organizational theory and behavior, Follett emphasized the significance of group dynamics, teamwork, and collaborative decision-making in management.

Examples of Classical Theory of Management

Let’s look at some examples of how different companies have implemented the classical management theory principles in their operation.

• Ford Motor Company : Ford Motor Company, founded by Henry Ford, implemented principles of scientific management in its manufacturing processes. Ford introduced assembly line techniques, breaking down car production into specific tasks, and optimizing workflow to achieve mass production efficiently. This revolutionized the automobile industry, making cars more affordable and accessible to the public.
• McDonald’s : McDonald’s utilizes scientific management principles in its fast-food operations. The company standardizes food preparation processes, implements time studies, and optimizes workflow to ensure consistent quality and service across its numerous locations worldwide. Training programs also focus on efficiency and productivity, enhancing employee performance.
• U.S. Government : The U.S. government incorporates bureaucratic principles in its administrative structure. Various government agencies follow hierarchical structures, well-defined roles, and standardized procedures to efficiently manage public services and implement policies.
• General Electric (GE) : GE adopts classical management principles to streamline its complex operations. The company breaks down tasks into specialized units, implementing formal selection processes to ensure competent leadership. Standardized rules and regulations maintain predictability and accountability within the organization.
• Toyota : Toyota effectively utilizes principles of scientific management in its production systems. The company employs time studies and continuous improvement (Kaizen) to optimize manufacturing processes. Toyota’s emphasis on coordination and teamwork ensures efficiency in its supply chain management and product development.

Read Next: How To Manage Diversity in the Workplace? 10 Tips For it

By profession, Sujan Chaudhary is a BBA (Bachelor in Business Administration) graduate, and by passion a blogger. He loves to share his business knowledge with the rest of the world. While not writing, he will be found reading and exploring the world.

Leave a Comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

Module 1: Introduction to Organizational Behavior

Assignment: management theory timeline .

Step 1:  To view this assignment, click on  Assignment: Management Theory Timeline.

• Management Theory Timeline. Authored by : Lumen Learning. License : CC BY: Attribution

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

ASSIGNMENT MANAGEMENT THEORY AND PRACTICE

Related Papers

Rajshree Mba

The paper deals with the concept of corporate governance, which is very deeply related to the health index of an economy.The subject of corporate governance came to global limelight after collapses of high profile companies like the U.S. energy giant Enron, telecom heavyweight WorldCom, Parmalat and multinational newspaper group Hollinger Inc. The Satyam Scam in 2009 and Reebok scam in 2012 shattered the myth of good corporate governance India.

Junaid Marshall

Natalya Mosunova

Dr. B. S . Navi

In today's globalised world, corporations need to access global pools of capital and to attract and retain the best human capital from various parts of the world. Under such a scenario, unless a corporation embraces and demonstrates ethical conduct, it will not be able to succeed. Ever since India's biggest-ever corporate fraud and governance failure unearthed at Satyam Computer Services Limited, the concerns about good Corporate Governance have increased phenomenally. The rapidly increasing economic growth that corporate India witnessed the high profile governance failure scams since the 1990s brought to the forefront the need for Indian companies to adopt corporate governance practices and standards, which are consistent with international principles and standards. A number of studies in India and abroad have indicated that markets and investors take notice of well managed companies and respond positively to them. The Corporate Governance issue has emerged primarily because of the growing importance of corporations in the national economies and their interaction with the international agencies and institutions. This form of management is also designed to limit risk and eliminate corrosive elements within an organization with haste. Hence, it imperative for a corporation to be fair and transparent to all its stakeholders in all its transactions by adhering to the best corporate governance practices.

Business Preneur: Jurnal Ilmu Administrasi Bisnis

Sopyan Saori

Competitive advantage is the result of a strategy planned by a business, both in the micro, small and medium sectors. Strategic direction is manifested through the ability to generate greater profits than competitors. Many factors are equally important in generating competitiveness. Some of them are strategic factors, human resource development, knowledge management and the role of Information & Communication Technology (ICT). From these factors will create and maintain a superior position from competitors, which is called competitive advantage. However, a thorough understanding of the state-of-art of competitive advantage is still needed. Therefore, this article aims to classify, identify scientific publications and carry out thematic analysis of current literature in order to create an extensive and detailed understanding of the field of competitive advantage. The research method is carried out by means of systematic mapping study (SMS) to examine scientific publications in the fi...

Contributions to Political Economy

Enrico Bellino

IEEE Communications Magazine

Claudine Conrado

Journal of Operations Management

Frontiers in Education

Javier Paricio

This study investigates the difficulties pre-service history teachers face in understanding and implementing a history curriculum focused on historical reasoning. Based on the general hypothesis of beliefs exerting a direct influence on teachers’ actions, this phenomenographic study provides a qualitative analysis of the epistemic and learning/teaching conceptions on which pre-service teachers base their reflections and decisions when they have to produce a teaching plan for a specific situation, taking n = 72 pre-service teachers from the Master’s Degree in Teaching in Secondary Education at the University of Zaragoza (specialty Geography and History) as statistical sample. The outcome of the first phases of the analysis was a new theoretical reference framework that innovated by simultaneously analyzing epistemic and educational conceptions. On the one hand, the analysis results include a considerable number of pre-service teachers who use epistemic beliefs identifying history and...

Proceedings of the 3rd International Conference on Cloud Computing and Services Science

Massimiliano Rak

RELATED PAPERS

Saude E Sociedade

semiarto purwanto

MALINI MAJUMDAR

ghjhggh ggjhkjj

Frontiers in Cellular and Infection Microbiology

Luciana Conde

Water Resources Research

Miles Kennedy

Drug Delivery and Translational Research

Sanjeev Rambharose

Jurnal Ilmiah Hubungan Internasional

Dudy Heryadi

Valiallah Kavusi

Informe 18 OLA

Alejandra Suárez

Procedia Engineering

Viliam Zajicek

tufhfgd hfdfsd

Renewable Energy

Electo E . Silva Lora

Moushumi Sharmin

Para conhecer a Terra: memórias e notícias de Geociências no espaço lusófono

Teresa Valente

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024