Management Theory Study Guide Flashcards

Foundations and Definition of Management

  • Management: The process of planning, organising, leading, and controlling resources to achieve organisational goals efficiently and effectively.
  • Efficiency: Doing things with minimum waste of time, money, and resources.
  • Effectiveness: Achieving the intended goals.

The Four Primary Functions of Management

  • Planning:
    • Meaning: Deciding what should be achieved and how.
    • Example: Setting a monthly sales target.
  • Organising:
    • Meaning: Arranging people, tasks, and resources.
    • Example: Assigning staff to cashier and kitchen duties.
  • Leading:
    • Meaning: Guiding, communicating with, and motivating employees.
    • Example: Encouraging staff during a busy shift.
  • Controlling:
    • Meaning: Measuring results and correcting problems.
    • Example: Comparing actual sales with the set target.

Hierarchical Levels of Management

  • Top-Level Management: Senior executives who make major strategic decisions.
  • Middle-Level Management: Management that translates strategy into plans and coordinates departments.
  • Lower / First-Line Management: Supervisory management responsible for day-to-day employee activities.

Classical Management Theories

  • Frederick W. Taylor — Scientific Management:
    • Focus: Efficiency and productivity.
    • Core Principles: Work should be studied scientifically, tasks standardized, workers trained appropriately, and performance rewarded.
    • Key Question: “How can we perform this job more efficiently?”
  • Henri Fayol — Administrative Management:
    • Focus: How managers should organise and manage an entire organisation.
    • 14 Principles Proposed Include: Division of work, authority and responsibility, discipline, unity of command, unity of direction, equity, initiative, and esprit de corps.
  • Max Weber — Bureaucratic Management:
    • Focus: Formal rules, hierarchy, and clearly defined roles.
    • Core Principle: Positions are organised through authority, procedures, and qualifications rather than personal preference.

Human Relations and Behavioural Theories

  • Elton Mayo — Hawthorne Studies:
    • Focus: Highlighted the importance of social relationships, attention, group behaviour, and employee morale in the workplace.
  • Abraham Maslow — Hierarchy of Needs:
    • Sequential Hierarchy: Physiological→Safety→Love/Belonging→Esteem→Self-actualisation\text{Physiological} \rightarrow \text{Safety} \rightarrow \text{Love/Belonging} \rightarrow \text{Esteem} \rightarrow \text{Self-actualisation}
  • Frederick Herzberg — Two-Factor Theory:
    • Hygiene Factors: Salary, working conditions, policies, and job security. Their absence can cause dissatisfaction.
    • Motivators: Achievement, recognition, responsibility, and advancement. These factors can increase satisfaction.
  • Douglas McGregor — Theory X and Theory Y:
    • Theory X: Assumes employees tend to avoid work and need close direction and control.
    • Theory Y: Assumes employees can be self-directed, responsible, and motivated.

Modern Management Ideas

  • Systems Theory:
    • Concept: An organisation is a system of interconnected parts.
    • Impact: A change in one part can affect other parts.
  • Contingency Theory:
    • Concept: There is no single best way to manage.
    • Impact: The appropriate approach depends on the situation, people, task, and environment.
  • Management by Objectives (MBO):
    • Concept: Managers and employees agree on objectives and evaluate performance against those objectives.
  • Total Quality Management (TQM):
    • Concept: A continuous focus on improving quality, processes, and customer satisfaction throughout the organisation.

Leadership Styles and Approaches

  • Autocratic: Leader makes decisions with little employee input.
  • Democratic: Employees participate in decision-making.
  • Laissez-faire: Employees receive substantial freedom to make decisions.
  • Transformational: Leader inspires people around a vision and encourages change.
  • Transactional: Focuses on performance, rewards, and corrective action.
  • Situational: Leadership approach changes according to the situation and followers' needs.

Motivation Theories

  • Maslow: Needs-based hierarchy.
  • Herzberg: Hygiene factors and motivators.
  • McGregor: Theory X and Theory Y assumptions.
  • Expectancy Theory: Process framework based on effort→performance→reward\text{effort} \rightarrow \text{performance} \rightarrow \text{reward}.
  • Equity Theory: Perceived fairness compared with others.

Organisational Communication

  • Communication Channels & Structures:
    • Formal vs informal communication
    • Upward, downward, and horizontal communication
  • Communication Types & Practices:
    • Verbal and non-verbal communication
    • Feedback mechanism
    • Active listening
  • Barriers to Communication:
    • Unclear messages
    • Language differences
    • Noise
    • Information overload

Planning and Decision-Making Processes

  • Planning Types:
    • Strategic Planning: Long-term direction.
    • Tactical Planning: Departmental and mid-term plans.
    • Operational Planning: Day-to-day activities.
  • Decision-Making Process Steps:
    1. Identify the problem
    2. Gather information
    3. Develop alternatives
    4. Evaluate
    5. Choose
    6. Implement
    7. Review

Organisational Structure Concepts

  • Structural Formats:
    • Functional structure
    • Divisional structure
    • Matrix structure
  • Key Structural Dimensions:
    • Centralisation vs decentralisation
    • Span of control
    • Chain of command
    • Delegation
    • Departmentalisation

Quick Revision Checklist

  • Definitions: Define management, efficiency, and effectiveness.
  • Core Functions: Memorise the four management functions: Planning, Organising, Leading, Controlling.
  • Classical Theories: Understand Taylor, Fayol, and Weber.
  • Behavioural Theories: Understand Mayo, Maslow, Herzberg, and McGregor.
  • Leadership: Compare leadership styles.
  • Motivation: Explain motivation theories with workplace examples.
  • Planning: Know strategic, tactical, and operational planning.
  • Modern Theories: Understand contingency and systems theory.
  • Structure: Learn basic organisational structures.
  • Application: Practise applying theories to real business situations.

Exam Strategy and Application Tips

  • Structure for Theory Questions:
    • Use this sequence: Definition→Main idea→Example→Advantage/limitation→Conclusion\text{Definition} \rightarrow \text{Main idea} \rightarrow \text{Example} \rightarrow \text{Advantage/limitation} \rightarrow \text{Conclusion}
  • Study Approach:
    • Do not only memorise names.
    • Continuously ask three critical questions:
    • “What problem was this theory trying to solve?”
    • “What does it assume about employees?”
    • “How would a manager apply it?”