What are the different management theory?
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.
