Management Theories

Topics: Management, Max Weber, Organization Pages: 13 (3101 words) Published: March 21, 2013

Management is the most important part of any organization. No organization can achieve its objectives without proper management. So management is considered the hub of any organization. As society continuously relied on group effort, and as many organized groups have become large, the task of managers has been increasing in importance and complexity. To meet the challenges like competition, efficient and economical uses of sources and maximum output, knowledge of management and theories of management is basic requirement. Henceforth, managerial theory has become crucial in the way managers manage complex organizations.

This article will provide the basic information of main management theories and how they have developed. It also addresses the management objectives, functions, goals, and essentiality as well as the requirement skills of a Manger.

Relating to my current company – AON Vietnam, member of AON Corporation, the article point out which theory of management fit best with the style of management in AON Corporation, one of biggest insurance brokers worldwide and what a Manager at AON should do.

(Topic 1 & 2)



1. Definition of Management

According to Drucker (1974) Management is “the activity of getting things done with the help of others peoples and resources”. It means that management is a process of accomplishing work with the help of other people. According to Weijrich and Koontz (1993) “Management is process of planning, leading, organizing and controlling people within a group in order to achieve goals. It is also the guidance and control of action required to execute a program. It indicates that there should be definite plan/program for affective management (Shied, 2010).

On the basis of these definitions it can be concluded that management is a process that includes strategic planning, setting objectives, managing resources, developing the human and financial assets needed to achieve objectives and measuring results. It also includes recording facts and information for later use upon requirement.

2. Management Theories

Contemporary theories of management tend to account for and help interpret the rapidly changing nature of today’s organizational environments. Several important management theories which are broadly classified as follows:

1. The Scientific Management School.

2. The Classical Organizational Theory School.

3. The Behavioural School.

4. The Management Science School.

5. Recent developments in Management Theory comprising works such as Systems Approach, Situational or Contingency theory, Chaos theory, and Team Building approach.

This discussion will provide a general description of these management theories, how they have developed and the successes that they achieved.

A Timeline Overview of Key Management theories


a. The Scientific Management School

The first management theory is what is popularly referred to as Frederick Taylor’s Scientific Management. Frederick Taylor (1856 - 1915) started the era of modern management. Taylor consistently sought to overthrow management “by rule of thumb” and replace it with actual timed observations leading to “the one best” practice.

“Taylorism” involved breaking down the components of manual tasks in manufacturing environments, timing each movement ('time and motion' studies) so that there could be a proven best way to perform each task. Thus employees could be trained to be 'first class' within their job. This type of management was particularly relevant to performance drives e.g 'Action On' projects.

It has to be acknowledged that from an economic standpoint, Taylorism was an extreme success. Application of his methods yielded significant improvements in productivity. For example, improvements such as his...
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