Theories of Management

Classical Theory

Human relations theory

Management Science/Operations Research Theory

Modern Management Theories

What are the 4 theories under organization?

Systems Approach

Contingency Approach

Chaos Approach

What are the 3 approaches under modern Management Theories

Classical Theory

It focuses on tasks, structure, and authority

“There is one best way to do each job.”

“There is one best way to put an organization together.”

“The organization should be arranged in a rational and impersonal manner.”

What are the 3 basic tenets of classical theory?

Division of Work

What principles of classical theory is essential for efficiency, and specialization is the most efficient way to use human effort

Authority

Responsibility

__________ is the right way to give orders and obtain obedience. 

_______ is the natural result of authority.

Discipline

What principles of classical theory is judicious use of sanctions and penalties to obtain obedience to rules and work agreements

Unity of Command

What principles of classical theory is specifies that each person should be accountable to only one superior

Unity of Direction

What principles of classical theory is specifies that all units should be moving toward the same objectives through coordinated and focused effort

Subordination of individual to general interest

What principles of classical theory is  interests of the organization should take priority over the interests of individuals

Remuneration

What principles of classical theory is pay and compensation should be fair for both employee and organization

Centralization

What principles of classical theory is subordinates’ involvement through decentralization should be balanced with managers’ final authority through centralization.

Scalar chain

What principles of classical theory is authority and responsibility flow in a direct line vertically from the highest level of the organization to the lowest

Order

What principles of classical theory is people and materials must be in the appropriate places at the proper time for maximum efficiency

Equity

What principles of classical theory is all employees should be treated equally to ensure fairness.

Initiative

What principles of classical theory is workers should be encouraged to develop and carry out plans for improvement

Esprit de Corps

Keep morale high so people work well together.

Stability of Personnel

What principles of classical theory is employee turnover should be minimized to maintain organizational efficiency

Human relations theory

What theory views organization as a social system and recognizes the existence of informal organization

Human relations theory

Employee participation in planning and decision-making boosts morale/productivity

Management Science/ Operations Research Theory

What theory combines classical & human relations theories

Management Science/ Operations Research Theory

Emphasizes research on operations and the use of quantitative techniques to help managers make decisions

System

____ is a collection of parts unified to accomplish common goals

Systems Approach

An approach where a change in one part of the system, will affect all parts

Inputs, operations, outputs, controls, memory, and management functions and linking processes

What elements are used in system approach

Feedback

 _____ between each of these aspects of a system is solicited and used

Interdependency

 A key concepts in systems theory where the elements of a system interact with one another and are interdependent.

Wholism

 A key concepts in systems theory where the doctrine that the whole of a structure or entity is more than the sum of its parts

Interdependency

Wholism

2 Key Concepts in Systems Theory?

Contingency Approach

What approach is when it holds that managerial activities should be adjusted to suit situations

Contingency Approach

Dependent on seeing the organization as a system and emphasizes the need for managers to strategize based on the relevant facts

Chaos Approach

What approach is when a second-order cybernetics, and complexity theory are all terms that attempt to describe the fact that things are not always neat and orderly and can indeed be messy

Chaos Approach

What approach is when it suggests that managers should work with, rather than against, the nonlinearity of the process