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Jun 30, 2022 · Understanding different management theories help managers prioritize the processes, relationships and information that impact an organization’s success. How should a leader set goals and guide their teams to realize them?
- Overview
- What are management theories?
- Benefits of management theories
- Types of management theories
- Tips for using management theories in the workplace
Video: Top Leadership Styles - Definitions & ExamplesJenn, an Indeed Career Coach, explains the top leadership styles in management and how to identify the one that's right for you and your team.
Understanding and applying the best practices from workplace management theories can help you more effectively guide your team to success. Many of these theories gave rise to the leadership approaches commonly used to lead and grow organizations today, and you can choose from among them to identify the strategies that will work best for you and your team.In this article, we explain the most common management theories and share some tips for how you can apply them in the workplace.
Management theories are a collection of ideas that recommend general rules for how to manage an organization or business. They address how supervisors implement strategies to accomplish organizational goals and how they motivate employees to perform at their highest ability.Typically, leaders apply concepts from different management theories that b...
There are several reasons why leaders should study and apply established management theories in the workplace, including:
•Increased productivity: Using these theories, leaders learn how to make the most of their team members, improving performances and increasing productivity.
•Simplified decision making: Management theories give leaders strategies that speed up the decision-making process, helping those leaders be more effective in their roles.
•Increased collaboration: Leaders learn how to encourage team member participation and increase collaboration among an entire group.
•Increased objectivity: Management theories encourage leaders to make scientifically proven changes rather than relying on their judgment.
Related: Management Styles: Overview and Examples
1. Scientific management theory
Frederick Taylor, who was one of the first to study work performance scientifically, took a scientific approach to management in the last 1800s. Taylor’s principles recommended that the scientific method should be used to perform tasks in the workplace, as opposed to the leader relying on their judgment or the personal discretion of team members.Taylor recommended simplifying tasks to increase productivity. He suggested leaders assign team members to jobs that best match their abilities, train them thoroughly and supervise them to ensure they remain efficient in the role. While his focus on achieving maximum workplace efficiency by finding the optimal way to complete a task was useful, it ignored the humanity of the individual. This theory is not practiced much today in its purest form, but it demonstrated to leaders the importance of workplace efficiency, the value of making sure team members received ample training and the need for teamwork and cooperation between supervisors and employees.Related: What Is a Micromanager? Definition and Signs
2. Principles of administrative management theory
Henri Fayol, a senior executive and mining engineer, developed this theory in the 19th century when he examined an organization through the perspective of the managers and situations they might encounter.Fayol believed leaders had five main functions—to forecast, plan, coordinate, command and control—and he developed principles that outlined how leaders should organize and interact with their teams. He suggested that the principles should not be rigid but that it should be left up to the manager to determine how they use them to manage efficiently and effectively. The principles he outlined were: •Initiative: This refers to the level of freedom employees should have to carry out their responsibilities without being forced or ordered. •Equity: This principle implies everyone in the organization should be treated equally and that it should be an environment of kindness. •Scalar chain: This principle says there should be a chain of supervisors from the top level of management to the lower level and that communication generally flows from top to bottom. He emphasized there is no hard rule regarding the communication process through the chain of command. •Remuneration of personnel: This principle refers to the assertion that there should be both monetary and non-monetary remuneration based on performance levels to create a bond between the employee and the organization. •Unity of direction: This principle asserts that there should be only one manager per department who is in charge of coordinating the group activity to attain a single goal. •Discipline: According to this principle, employees should be respectful and obedient, and an organization should outline rules and regulations that clarify rules, good supervision and a reward-punishment system. •Division of work: This principle asserts that the overall action of management should be divided and that team members should be given responsibilities based on their skills and interests to make them more effective and efficient. •Authority and responsibility: Per this principle, there should be a balance between authority—the right to give commands and make decisions—and responsibility—the obligation of an employee to perform the tasks they’re designated. •Unity of command: This refers to the assertion that employees must get orders from only one immediate supervisor and be accountable to that person only. •Subordination of individual interest to general interests: There must be harmony between the interests of the individual and the organization, although the organizational interest should be given priority since it will bring rewards for the individual. •Centralization: According to this principle, the topmost level of authority should be centralized to the top level of management, who has the power to make the most important decisions in an organization. •Order: This principle asserts that for an organization to run smoothly, the right person must be in the right job and that, therefore, every material and employee should be given a proper place. •Stability of tenure: This principle says employees must have job security to be efficient. •Espirit de corps: This refers to the belief that there must be a unified team contribution and that cooperation is always greater than the aggregate of individual performances. Related: 9 Steps To Create a Collaborative Culture at Work
3. Bureaucratic management theory
Developed by Max Weber, bureaucratic management theory focuses on structuring organizations in a hierarchy so there are clear rules of governance. His principles for creating this system include a chain of command, clear division of labor, separation of personal and organizational assets of the owner, strict and consistent rules and regulations, meticulous record-keeping and documentation and the selection and promotion of employees based on their performance and qualifications. This theory has played a key role in establishing standards and procedures that are at the core of most organizations today.Related: Complete Guide to Bureaucratic Organizations (With Example)
Invest in employee training
As Frederick Taylor proposed in his scientific management theory, you can boost employee productivity by observing work processes and then creating policies recommending best practices. Invest in training for your employees to help them be more effective in their respective roles. You will generally find such training boosts their productivity and improves overall on-the-job performance. Human relations theory can impact productivity as well, since the attention you give team members and the interest you pay in their performances can increase their productivity.Related: 14 Effective Tips for Developing Employees
Give employees power in making decisions
Take a cue from the human relations theory by encouraging interpersonal relationships and creating a collaborate environment. Give your team members more power in making decisions. This could mean giving them more control within their roles or allowing greater contribution to departmental goals and strategies. Consider creating sub-groups within your department and allowing those teams greater decision-making abilities to reach organizational goals.Related: Guide To Delegation in Leadership
Flatten the organizational hierarchy
Research suggests that flattening the hierarchy can increase local innovation and speed up the decision-making process. This could mean getting rid of titles or senior positions to inspire a cohesive, collaborative work environment. It could also mean empowering team leaders with more decision-making capabilities and eliminating the need to fully move up the chain of command to receive approval on decisions. Video: What Makes a Good Leader? Best Tips & Growth StrategiesJenn, a career coach, explains what leadership is, essential leadership behaviors, skills and styles, and how to identify the right approach for your workplace. Share: Twitter LinkedIn Facebook Email
Learn about different management theories that guide how modern organizations manage people. Explore the scientific, systems, contingency, and theory X/Y approaches with examples and applications.
Learn about six management theories that emerged during the Industrial Revolution and influenced the way companies operate today. Compare and contrast scientific, administrative, bureaucratic, human relations, general, and X&Y management theories.
- Scientific theory by Frederick W. Taylor. This one is a classic. Frederick W. Taylor’s scientific theory poses some fascinating questions by diving deeper into the efficiency of work processes.
- Administrative theory by Henri Fayol. Fayol developed six functions of management that work in conjunction with 14 management principles. This theory has a few core ideas that live on today, but you’ll rarely find a workplace swearing by Henri Fayol’s 14 principles.
- Bureaucratic theory by Max Weber. Max Weber created the bureaucratic theory, which says an organization will be most efficient if it uses a bureaucratic structure.
- Human relations theory by Elton Mayo. In stark contrast to Weber’s bureaucratic theory of management, Elton Mayo’s human relations theory emphasizes relationships.
But that success depends, in large part, on the way you lead your employees. That’s why these management theories are so important: they give you concrete ways to inspire greatness in your team. In this article, we’ll give you a brief overview of the management theories every manager should know.
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Feb 13, 2024 · Knowing what theories you agree with helps you to better understand your own management style and biases. In this article, we discover what are theories of management, their benefits, the seven most important management theory types and tips for how to best use them.
