There are four general management theories.
1. Frederick Taylor – Theory of Scientific Management.
2. Henri Fayol – Administrative Management Theory.
3. Max Weber - Bureaucratic Theory of Management.
4. Elton Mayo – Behavioral Theory of Management (Hawthorne Effect). 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 fair day's work, and that pay, should be linked to the amount produced. Therefore he introduced the, DIFFERENTIAL PIECE RATE SYSTEM, of paying wages to the workers.
Taylor's Differential Piece Rate Plan.
If Efficiency is greater than the defined Standard then workers should be paid 120 % of Normal Piece Rate.
If Efficiency is less than standard then workers should be paid 80% of Normal Piece Rate.
Principles of Scientific Management.
Four Principles of Scientific Management are:
1.Time and motion study: - Study the way jobs are performed and find new ways to do them.
2.Teach, train and develop the workman with improved methods of doing work. Codify the new methods into rules.
3.Interest of employer & employees should be fully harmonized so as to secure mutually understanding relations between them.
4.Establish fair levels of performance and pay a premium for higher performance. 2. Henri Fayol’s Administrative Management Theory:
Henri Fayol known as the Father Of Management laid down the 14 principles of Management.-
1.Division of Work.
5.Authority and Responsibility.
6.Esprit De Corps.
7.Subordination of Individual Interest to General Interest.
8.Stability of Tenure.
10.Unity of Direction.