Management Theories

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Business Concepts
Management Theories
Scientific Management – an approach that emphasizes the scientific study of work methods in order to improve worker efficiency. Bureaucratic Management – an approach that emphasizes the need for organizations to operate in a rational manger rather than relying on the arbitrary whims of owners and managers. Administrative Management – an approach that focuses on principles that can be used by managers to coordinate the internal activities of organizations. Fayol’s General Principles of Management

1.Division of work. Concept of specialization of work.
2.Authority. Formal(positional) authority versus personal authority. 3.Discipline. Based on obedience and respect.
4.Unity of command. Each employee should receive orders from only one superior. 5.Unity of direction. One boss and one plan for a group of activities having the same objective. 6.Subordination of individual to the general interest. A plea to abolish the tendency to place individual interest ahead of the group of interest. 7.Remuneration. The mode of payment of wages was dependent o many factors. 8.Centralization. The degree of centralization desired depended on the situation and the formal communication channels. 9.Scalar chain (line of authority). Shows the routing of the line of authority and formal communication channels. 10.Order. Ensured a place for everything.

11.Equity. Resulted from kindness and justice.
12.Stability of tenured personnel. Called for orderly personnel planning. 13.Initiative. Called for individual zeal and energy in all efforts. 14.Esprit de corps. Stressed the building of harmony and unity within the organization. Behavioral Science Approach – an approach that emphasizes scientific research as the basis for developing theories about human behaviour in organization that can be used to establish practical guidelines for managers. Quantitative Management Viewpoint – focuses on the use of mathematics, statistics and information aids to support managerial decision making and organizational effectiveness. There are three branches that evolved. Namely:

1.Management Science – an approach aimed at increasing effectiveness through the use of sophisticated mathematical models and statistic methods. 2.Operations Management – the function or field of expertise that is primarily responsible for managing the production and delivery of an organization’s products and services. 3.Management Information Systems – the field of management that focuses on designing and implementing computer-based information systems for use by management. These tend to focus on the interest of the individual they like influencing.

Contemporary Viewpoint
1.Systems Theory – an approach based on the notion that organization can be visualized as systems. 2.Contingency Theory – a viewpoint that argues that appropriate managerial action depends on the particular parameters of the situation. 3.Emerging views – included in this viewpoint are promising approaches that may develop into major viewpoints if research supports their relevance.

Marketing – a societal and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. The ultimate goal of marketing is to match a company’s products and services to the people who need and want them, thereby ensure profitability. Needs – a state of felt deprivation.

Wants – the form taken by a human need as shaped by culture and individual personality. Demands – human wants that are backed by buying power.
Product – anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. Service – any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Customer Value – the difference between the values to customer gains from owning and using a product and the...
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