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Theories and Approaches of Management

Scientific Management (Taylor's Theory): This theory synthesized and evaluates the workflows of an organization. It aims at enhancing labor productivity and economic efficiency. Thus, it applies science, processes and standards in management.

Administrative Theory (Fayol's Theory): Henry Fayol propounded the theory and gave 14 principles for general management and administration. It is also known as administrative theory. It gives a broader concept of the process of management.

Bureaucracy (Max Weber): This theory aims at providing a systematic framework of an ideal organization, which strives at achieving economic effectiveness and efficiency. It also structures a company of institutions in a hierarchical form with defined levels of management.

Hawthrone Experiments: These were a series of experiments that were conducted in the 1920s. It discovered that laborers are extremely responsive to any form of additional attention given to them by their managers. This theory propounds that workers feel motivated when the managers show interest in their work. It gives them a sense of belongingness. It advocates that though financial incentives are motivating social incentives and issues are correspondingly significant in workers' productivity.

System Theory: It is one of the most prevalent organizations in modern management. The institutions are either considered to be an open or a closed system. There is an interaction with the outside environment in an open system whereas there is no such interaction in a closed system. An organization is also a system as it comprises machines, technologies, assets and humans. A closed system is not affected by the external environment, but an open system is affected. Hence, this theory studies an organization as a system.

Chaos Theory: This theory finds its roots in mathematical science and is adapted in management. It treats an organization as a system, but it is complicated, non-linear and dynamic. The non-linear system implies that one variable is not affected by the change in another variable. Dynamism here implies the components of the organization system keep changing over a period of time. Even simple organization systems result in complex behaviors which results in a chaotic and disorderly system. This theory propounds that the management should know how to regulate the patterns of work when an organization exists in a state of chaos. This is usually done by facilitating change in the organization.

Contingency Approach: It is a modern theory of management, also known as the situational approach. It implies that one size does not fit all, i.e, the management's efficiency is dependent on the interaction between behaviors or the management and situations in the organizations. The manager must change his behavior and decisions on the basis of circumstances. Thus, It is a situational approach meaning, managing according to the situation.

Behavioral Management Theory: In this theory, the organization is treated as a social system of humans along with the technical-physical system. It lays emphasis on studying an individual's beliefs, values, attitudes in order to increase his productivity and the organization's efficiency.

Human Relation Approach: It is propounded by Elton Mayo. It focuses on the study of motivation, conflict and informal organization. It focuses on the study of motivation, conflict and informal organization. It focuses on management getting things done with and through the people, thus employees should not be treated like machines rather individuals with different behaviors. The manager must learn the interpersonal relations between the individuals in the workplace.


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