Knowing about management theories is definitely an edge if you want to start and manage any kind of business.
According to Wikipedia, the term Management or managing means the administration of an organization, whether it is a business, a not-for-profit organization, or government body.
Management also includes the activities of setting up an effective strategy of an organization. It also has its roots in coordinating the efforts of its employees or of volunteers to accomplish its objectives and goals through the application of available resources, such as financial, technological, natural, and human resources. All these elements are important part of management of an organization.
People who manage business are also called managers
The term "management" may also refer to those people who manage an organization - managers.
Nowadays, in our modern-day business management we are implementing new plans for management. There are many philosophers, and intellectuals who have developed many business-related theories.
The different management theories are: classical, behavioral, quantitative and quality management theory, systematic and contingency management theory.
Let’s focus on basic management theories...
According to W. Plunkett and R. Attner, G. Allen the classical management theory focuses on finding the “one best way” to accomplish and manage task. In this management theory, the main focus is on finding the best strategy to manage the business.
Behavioral management theory as the name implies recognizes employees as individuals with real human needs. According to this theory, employees are not just machines but they have emotions too.
This theory is based on psychological principals of behavior, attitudes and personality differences. It is very important for the manager to establish trusted relationship with employees of an organization or a business to achieve success.
Scientific management is sometimes known as Taylorism after its founder, Frederick Winslow Taylor. Scientific management is a theory that focuses on analyzing and synthesizing workflows. Its main objective is improving economic efficiency as well as labor productivity also. It was one of the earliest attempts to apply scientific processes to management.
Administrative management theory endeavors to find a rational or logical way to design an organization as a whole. The theory generally calls for a formalized administrative structure, a clear division of labor, and delegation of power and authority to administrators pertinent to their areas of responsibilities.
Henri Fayol (1841-1925) and James D. Mooney (1884-1957) are considered main theorists that evolved and shaped up the management theories.
Fayol was born in France. He started working for a coal-mining business. Later on, he developed 14 administrative principles for organizational structure and management that are widely known and implemented by many organizations worldwide.
Similarly, James D. Mooney studied mechanical engineering and eventually became a key member of General Motors' top management team due to his hard work and dedication. In 1931, he wrote a book called Onward Industry! The book is considered by many scholars to be a significant contribution to administrative management theory and is still implemented.
At the end of the 19th century, it was German sociologist and author of the book ‘The Protestant Ethic and the Spirit of Capitalism’ (1905), Max Weber who was the first to use and describe the term bureaucracy came on the limelight. He invented bureaucratic philosophy which is also known as the bureaucratic theory of management, as well as bureaucratic management theory or in other words, the Max Weber theory.
He believed bureaucracy as the most efficient way to set up an organization, and administration. In a bureaucratic organization, everyone is treated equal. The division of labor is clearly described and implemented for each employee.
In the 1920s, Elton Mayo, an Australian-born psychologist and organizational theorist, began his research on the behavior of people in groups and how it affects individuals in the workplace, known as the Hawthorne studies. He was the first one to view employees as individuals with different needs and expectations working in an organization.
Unlike the philosophy of Taylorism, or the application of science in the workplace to improve productivity which viewed individuals as machines that could work in unethical or unrealistic environments. Mayo popularized the idea of the "social person’’. It means that organizations should treat people as individuals – not machines – with individual needs.
Similarly, Merriam-Webster defines and views "human relations" as the "study of human problems arising from and within an organizational and interpersonal relations or setting (as an industry)."
This definition has referred to business approach focused on supporting and empowering employees in their career development as well as helping an organization to grow in addition to running a profitable company.
A human relations-centric approach to management and business involves a special skill set on the part of employers and managers. To effectively carry out a human relations-focused workplace culture, five skills are essential.
The human relations theory of management is an integral part of every business in today’s business structure and environment and understanding involved skills and theories guarantees employee success in the future.
Having the knowledge of the above 6 management theories can help you and your business to choose the right style of managing the work and the people.
In present times, knowledge and education is the real edge and can make you stand out from the other competitors. Use it to your best advantage.