Management theories

Management theories are attempts to isolate and explain the key elements in the
practice of management, in order to identify the most effective management
methods.

Theories of management

The major theories of management may be classified under four headings:

Classical/scientific approaches
Behavioural/human approaches
Systems/contingency approaches
Political/collaborative approaches

Classical/scientific approaches

Approach Specialised efficiency-oriented systems of management

Timing From the turn of the century, well into the 1930s. A legacy of the Industrial Revolution and
the social structure of the times: a potentially large workforce of relatively uneducated,
disempowered people.
Management principles Hierarchical systems based on principles of specialisation, centralisation and formality.
Specialised tasks exist in specialised departments, with responsibility formally designated.
Span of control is narrow and a unitary line of command is in place.
Relevance Great benefits from a consumer viewpoint, with the availability of a wide range of consumer
goods.
Problems centred on the dehumanising, autocratic nature of the efficiency-driven system and
the assumption that the needs of workers matched those of management.

Behavioural/ human approaches

Approach Changed approach to the way the work situation was seen. Managers dealt with "people"
aspects of their organisation. The "group" played a more significant role.
Timing Became important following the 1922 to 1937 Hawthorne studies of the Western Electric
Company and the Great Depression of the time.
Continued to the 1970s.
Management principles Supportive leadership.
Managerial focus on group support and wide spans of control in a flat organisational
structure, consisting of a hierarchy of interlocking groups.
Relevance The conflict of interest between management and workers was recognised.
Practices appeared to work as prosperity continued into the 1970s, with growing domestic
markets and high family incomes in Western economies.
Behavioural management practices were overwhelmed by the application of systems models
of management.

Systems/ contingency approaches

Approach Systems adopted by management need to be contingent on the stability, or lack of it, in the
organisation's particular environment.
Timing Systems theory, concepts and language were in place in the 1960s and dominated
management thinking in the 1970s.
The rapidly changing, competitive world economy and the crisis facing western enterprises
precipitated the systems approach.
Management principles Differentiation.
The organisation is a system.
The way the separate parts interrelate defines the system. Integration depends on shared
norms, values and beliefs, not on the commands of a superior.
Relevance These approaches recognise that managers are dealing with complicated interactions in a
volatile, competitive, international environment.
Management recognises that there is no ONE way to deal with all circumstances, e.g. formal
processes, such as job descriptions and scheduling, become irrelevant too quickly. Systems
and contingency approaches have resulted in improved practice and significant developments
in organisational design and leadership.

Political/ collaborative approaches

Approach Approaches relate to empowerment in the external environment through loosely structured
networks and alliances.
Timing The current economic environment, which is characterised by high levels of social, economic
and technological discontinuity. Political approaches recognise the speed-up in the rate of
change and complexity of the current external environment.
Management principles Empowerment and collaborative individualism.
The creativity of management and its capacity to innovate are challenged.
Management is increasingly willing to experiment with new strategies and cultures in search
of solutions to unstructured problems.
Alliances are developed inside and outside the organisation.
Relevance The use of political power and influence in the creation of alliances is recognised.
Organisations have moved increasingly towards decentralisation and chunking.
Political approaches are more deliberate strategies to deal with complex and discontinuous
environments.

Management styles

This is the pattern of behaviour of managers in performing their functions and in

their dealings with employees. A manager's style reflects a response to a number of
variables in the external and internal environments, as illustrated below:

• Manager's personality and value system, e.g. education, experience.

• Nature of workers, e.g. skills, needs, attitudes.
• Nature of the internal environment, e.g. structure, stability, physical site.
• Immediate situation, e.g. nature of problem, time and cost constraints.

Management styles can be classified as:

• autocratic,
• democratic,
• collegial,
• laissez-faire.