Evolution of Management Theory

State the importance and relevance of studying management theory

The study of management theory is essential for developing a thorough understanding of the discipline and improving professional competence

Define the concept of theory

A theory is a coherent group of assumptions that explain relationships between observable A theory is a framework of principles that helps explain something and predict future events.

What are the factors which influence the development of management theory

1. Political

2. Economic

3. Social

4. Ecological

5. International force

What are the 5 principles of the various theories of management?

1. Classical Approach

2. Behavioural & Human Relations Approach

3. Quantitative Approach / Management Science Approach

4. Cotemporary Approach

5. Other Theories

Provide a summary of the 2 theories linked to the Classical Approach

The Scientific Management Approach focused on worker productivity, but it neglected human factors, leading to dissatisfied workers and low trust in management. Administrative Management Theory focuses on organizational productivity enhancement.

What was the Behavioural & Human Relations Approach

The main idea was to understand what motivates people to work.

From this came 2 theories:

1. Theory X: Managers think workers are lazy and need to be controlled.

2. Theory Y: Managers believe workers are motivated and can take responsibility.

What was the Quantitative Approach?

The main idea was to use data and math for decision-making.

This approach includes the following :

1. Quantitative management (employs mathematical techniques such as linear programming, modeling, simulation & queueing theory)

2. Operations management

3. Total Quality Management (TQM) – All levels focus on improving quality and, thus, delivering customer satisfaction.

4. Management information systems (MIS)

What were the 3 Contemporary Approach?

1. Systems Theory (Organisational-Environment Theory) - To understand how an organization fits and interacts with its environment

2. Contingency Theory - Managers should tailor their approach to the dynamic environment of organizations by drawing on various management theories

3. Chaos Theory - focuses on how small changes can lead to big, unexpected outcomes in complex systems.  It’s about finding order in disorder and thriving in a fast-changing world

Define the concept of a management fad

A management fad is a popular management concept or approach that become fashionable in the business world but usually lacks long-term effectiveness or scientific validation.

Management fads introduce valuable ideas however they often fall short when applied without factoring in an organization’s specific needs and long-term goals.