What are the different management theory?

Answer 1

Recent Developments in Management Theory

Under this category of theory are the Systems Approach, Situational or

Contingency theory, Chaos theory, and Team Building theory.

The systems theory has had a significant effect on management science and

understanding organizations. A system is a collection of part unified to

accomplish an overall goal. If one part of the system is removed, the nature of the

system is changed as well. A system can be looked at as having inputs (e.g.,

resources such as raw materials, money, technologies, people), processes (e.g.,

planning, organizing, motivating, and controlling), outputs (products or

services) and outcomes (e.g., enhanced quality of life or productivity for

customers/clients, productivity). Systems share feedback among each of these

four aspects of the system. 18

The Systems Theory may seem quite basic. Yet, decades of management training

and practices in the workplace have not followed this theory. Only recently, with

tremendous changes facing organizations and how they operate, have educators

and managers come to face this new way of looking at things. The effect of

systems theory in management is that it helps managers to look at the

organization more broadly. It has also enabled managers to interpret patterns

and events in the workplace - i.e., by enabling managers to recognize the various

parts of the organization, and, in particular, the interrelations of the parts.

The situational or contingency theory asserts that when managers make a

decision, they must take into account all aspects of the current situation and act

on those aspects that are key to the situation at hand. Basically, it is the approach

that "it depends". For example, if one is leading troops in Iraq, an autocratic style

is probably best. If one is leading a hospital or University, a more participative

and facilitative leadership style is probably best.

The Chaos theory is advocated by Tom Peters (1942). As chaotic and random as

global events seem today, they are equally chaotic in organizations. Yet for many

decades, managers have acted on the basis that organizational events can always

be controlled. Thus, a new theory, known as chaos theory, has emerged to

recognize that events are rarely controlled. Chaos theorists suggest that systems

naturally go to more complexity, and as they do so, they become more volatile

and must, therefore, expend more energy to maintain that complexity. As they

expend more energy, they seek more structure to maintain stability. This trend

continues until the system splits, combines with another complex system or falls

apart entirely. It will need an effective manager for the latter worst scenario not

to happen. 19

The last management theory is the Team Building approach or theory. This

theory emphasizes quality circles, best practices, and continuous improvement. It

is a theory that mainly hinges on reliance on teamwork. It also emphasizes

flattening of management pyramid, and reducing the levels of hierarchy. Finally,

it is all about consensus management - i.e., involving more people at all levels in

decision-making.

Other Management Theories

In this category are the works of Edward W. Deming and Douglas McGregor.

Edward Deming is the founder of modern quality management and is regarded

by the Japanese as the key influence in their postwar economic miracle. He

postulated several assumptions: create constancy of purpose for continual

improvement of products and service; adopt the new philosophy created in

Japan; cease dependence on mass inspection; build quality along with price;

improve constantly and forever every process planning, production, and service;

institute modern methods of training on-the-job for including management;

adopt and institute leadership aimed at helping people to do a better job; drive

out fear, encourage effective two-way communication; breakdown barriers

between departments and staff areas; eliminate exhortations for the workforce -

they only create adversarial relationships; eliminate quotas and numerical

targets; remove barriers to pride of workmanship, including annual appraisals

and Management by Objectives; encourage education and self-improvement for

everyone; and define top management's permanent commitment to everimproving quality and productivity and their obligation to implement all these

principles.

Douglas McGregor (1906-1964) postulated management ideas as contained in

"Theory X" and "Theory Y". Using human behavior research, he noted that the

way an organization runs depends on the beliefs of its managers. 20

"Theory X" gives a negative view of human behavior and management that he

considered to have dominated management theory from Fayol onwards -

especially Taylorism. It also assumes that most people are basically immature,

need direction and control, and are incapable of taking responsibility. They are

viewed as lazy, dislike work and need a mixture of financial inducements and

threat of loss of their job to make them work ('carrot and stick' mentality).

"Theory Y", the opposite of "Theory X", argues that people want to fulfill

themselves by seeking self-respect, self-development, and self-fulfillment at

work as in life in general. The six basic assumptions for 'Theory Y' are: work is as

natural as play or rest - the average human being does not inherently dislike

work, whether work is a source of pleasure or a punishment (to be avoided)

depends on nature of the work and its management. Second, effort at work need

not depend on threat of punishment - if committed to objectives then selfdirection and self-control rather than external controls. Third, commitment to

objectives is a function of the rewards associated with their achievement.

Satisfaction of ego and self-actualization needs can be directed towards the

objectives of the organization. Fourth, the average human being learns, under

proper conditions, not only to accept but to seek responsibility. Fifth, high

degrees of imagination, ingenuity and creativity are not restricted to a narrow

group but are widely distributed in the population. Lastly, under the conditions

of modern industrial life, the intellectual potentials of the average human being

are being only partly utilized.

There is, however, one theory or approach, the quantitative approach that is

hardly used and known by managers. It emerges from operations research and

management science. It is a mathematical and statistical solution to problems

using optimization models, and computer simulations. It is most effective 21

management decision-making rather than managerial behavior. The

management theories that have been discussed, important as they are, have to be

translated in practice by managers.