Management Theories
Business Concepts
Management Theories
Scientific Management – an approach that emphasizes the scientific study of work methods in order to improve worker efficiency.
Bureaucratic Management – an approach that emphasizes the need for organizations to operate in a rational manger rather than relying on the arbitrary whims of owners and managers.
Administrative Management – an approach that focuses on principles that can be used by managers to coordinate the internal activities of organizations.
Fayol’s General Principles of Management
1. Division of work. Concept of specialization of work.
2. Authority. Formal(positional) authority versus personal authority.
3. Discipline. Based on obedience and respect.
4. Unity of command. Each employee should receive orders from only one superior.
5. Unity of direction. One boss and one plan for a group of activities having the same objective.
6. Subordination of individual to the general interest. A plea to abolish the tendency to place individual interest ahead of the group of interest.
7. Remuneration. The mode of payment of wages was dependent o many factors.
8. Centralization. The degree of centralization desired depended on the situation and the formal communication channels.
9. Scalar chain (line of authority). Shows the routing of the line of authority and formal communication channels.
10. Order. Ensured a place for everything.
11. Equity. Resulted from kindness and justice.
12. Stability of tenured personnel. Called for orderly personnel planning.
13. Initiative. Called for individual zeal and energy in all efforts.
14. Esprit de corps. Stressed the building of harmony and unity within the organization.
Behavioral Science Approach – an approach that emphasizes scientific research as the basis for developing theories about human behaviour in organization that can be used to establish practical guidelines for managers.
Quantitative Management Viewpoint – focuses on the use of mathematics, statistics
Management Theories
Scientific Management – an approach that emphasizes the scientific study of work methods in order to improve worker efficiency.
Bureaucratic Management – an approach that emphasizes the need for organizations to operate in a rational manger rather than relying on the arbitrary whims of owners and managers.
Administrative Management – an approach that focuses on principles that can be used by managers to coordinate the internal activities of organizations.
Fayol’s General Principles of Management
1. Division of work. Concept of specialization of work.
2. Authority. Formal(positional) authority versus personal authority.
3. Discipline. Based on obedience and respect.
4. Unity of command. Each employee should receive orders from only one superior.
5. Unity of direction. One boss and one plan for a group of activities having the same objective.
6. Subordination of individual to the general interest. A plea to abolish the tendency to place individual interest ahead of the group of interest.
7. Remuneration. The mode of payment of wages was dependent o many factors.
8. Centralization. The degree of centralization desired depended on the situation and the formal communication channels.
9. Scalar chain (line of authority). Shows the routing of the line of authority and formal communication channels.
10. Order. Ensured a place for everything.
11. Equity. Resulted from kindness and justice.
12. Stability of tenured personnel. Called for orderly personnel planning.
13. Initiative. Called for individual zeal and energy in all efforts.
14. Esprit de corps. Stressed the building of harmony and unity within the organization.
Behavioral Science Approach – an approach that emphasizes scientific research as the basis for developing theories about human behaviour in organization that can be used to establish practical guidelines for managers.
Quantitative Management Viewpoint – focuses on the use of mathematics, statistics
References: Bartol, K and Martin, D. (2001). Management, (3rd ed). New York: McGraw-Hill. Courtel, Mary. (2003) Entrepreneurship in action (2nd Edition). New Jersey: Pearson Education, Inc and Upper Saddle River. Kotler, P. (2006). Marketing Management. Upper Saddle River, N.J.: Pearson Education. Kotler, P. and Armstrong, G. (2000). Principles of Marketing, (8th ed.), New Jersey: Prentice-Hall Inc.. Lipnack, J. and Stamps, J. (2000). Virtual teams: people working across the boundaries with technology. New York: Willey. Meigs, R. F. (1996). Accounting: The basis for business decisions. New York: McGraw-Hill