The birth of management theory can be traced back to the Industrial Revolution.

The
Industrial Revolution, which lasted from the late 1700s to the early 1900s, brought about
significant changes in the workplace and forever altered the way businesses are run.

The Industrial Revolution brought better and faster technology, allowing businesses to
perform more efficiently than ever before and dramatically increase output. However,
increased output meant lower prices, which in turn increased demand, necessitating the hiring
of more workers. Companies that once had a few dozen employees were now transforming
into massive corporations. It was no longer feasible for a company to track every last one of
their employees.

While setting productivity goals is simple, managing a team to achieve productivity goals has
not been. For the first time, the owner had to come up with new and creative ways to
motivate a large number of employees to perform. To coordinate these larger organizations,
owners had to rely on others, whom economists refer to as "agents" and the rest of us refer to
as "managers” [9].

The emphasis was solely on mass production execution, and managerial solutions such as
standardized processes, labour specialization, quality control, workflow planning, and basic
accounting were put in place. By the early 1900s, the term "management" was in wide use,
and Adam Smith's ideas were coming into their own. Others, including Frederick Winslow
Taylor, Frank and Lillian Galbreth, Herbert R. Townes, and Henry L. Gantt, developed
theories that emphasized efficiency, consistency of production, and predictability [10]. The
goal was to maximize the number of outcomes that could be produced from a set of inputs.

Management theories have been categorized differently by different scholars, such as Koontz
(1988), who divided them into six groups, such as, i. the management process school, ii. the
empirical school, iii. the human behavioral school, iv. the social system school, v. the
decision theory school, and vi. the mathematical school [11] [12].

on the other hand, categorized it into three broad categories: (a) classical management theory,
(b) neo-classical management theory, and (c) modern management theory [13].

Classical Approach to Management

As a result of the Industrial Revolution, which lasted from the 1700s to the 1900s, the study
of management has become more systematized and formalized. In order to manage all of the
large industries that were a core component of the Industrial Revolution, approaches to
managing work and individuals had to be developed. The classical management approach
incorporates scientific theory, administrative theory as well as bureaucratic Management.

Frederick W. Taylor developed a scientific theory. He was an American inventor and

mechanical engineer known as the "Father of Scientific Management." 

Scientific management focuses on the "one best way" to accomplish a task; that is, it
examines how a task scenario can be structured to enhance worker output. Scientific
management is a method of evaluating the "one best way". Although scientific management
techniques could theoretically be implemented to management at all levels, the research,
research applications, and illustrations mostly pertain to lower-level managers. As a result,
theory is also used to refer to lower level management analysis. The work of Frederick W
Taylor, Frank and Lilian Gilbreth, and Henry L. Gantt is primarily responsible for scientific
management.

The focus of his theory was the application of scientific methods to increase individual
workers’ productivity.

Aiming to make work more efficient, Taylor created four principles to his theory which were
as follows:

1. Each task should be studied to determine the most efficient way of doing the task,
disrupting traditional work processes
2. Workers should be matched to jobs that align with both their abilities and motivation
3. Workers should be monitored closely to ensure they only follow best working practices.
4. Managers should spend time training employees and planning for future needs

administrative theory focuses on the overall organizational structure of a company. Henri

Fayol, a French mining engineer, developed theory. It is important to note that Fayol agreed
with many of Taylor's ideas and ideologies. However, the main difference is that Taylor was
more concerned with the process of completing the work as efficiently as possible. Fayol
outlined fourteen principles that he believed were the foundation for strong and successful
businesses.

A clear division of labour, ensuring each employee had only one direct manager to report to,
and a healthy manager-employee relationship were some of Fayol's principles.
An administrative theory developed by a French mining engineer named Henri Fayol. He
focuses on the entire organizational structure of a company. It is important to note that Fayol
agreed with many of Taylor's ideas and ideologies. However, the main difference is that
Taylor was more concerned with the process of completing the work as efficiently as
possible. Fayol highlighted fourteen principles that he believed were the foundation for
strong and successful businesses.

Bureaucratic Management

Max Weber, the father of modern sociology, pioneered the field of bureaucratic management.
An ideal organization, or bureaucracy, has a hierarchical management structure with clearly
defined rules and regulations, according to this branch of classical theory. Labour is divided,
and relationships are cold. This promotes order and consistency throughout an organization,
resulting in a more specialized workforce.

Although the classical theory of management is no longer widely used, certain principles and
branches of the classical theory, particularly Weber's principles of bureaucratic management,
are still used in today's organizations. The main advantage of this approach is that it
eliminates overlapping duties or conflict, providing clear direction so that organizational
operations gain efficiency and productivity. The approach ensures consistency in patterns,
leading to higher accuracy in tasks and less waste of resources.

Increased emphasis on policies and procedures fosters a cautious approach, causing

employees to avoid risk and demonstrate less creativity, initiative, and growth. Furthermore,
humans are not machines, and thus their approaches and performances will indeed differ,
whereas this school of thought expects behavioural conformity at the expense of
performance.

Neo-Classical Theory

As the name implies, neoclassical is made up of two parts: neo and classical. The term neo
refers to something new, whereas classical refers to the work of a group of economists, as in
the 18th and 19th centuries. The Neo-Classical Theory was more human-oriented, with a
focus on workers' motivations, time needs, attitudes, and behaviours.

The neoclassical organizational theory discusses methods and ideas cantered on the
organization's emotional beings. The human relations movement and the behavioural
science approach are the two primary sources of neoclassical organizational theory.
Human Relations

Organization was viewed as a social system by the human relations movement. In addition to
technical skills, social physiologists and sociologists emphasized group dynamics and
promoted people-management skills.

Elton Mayo, along with Frank Roethlisberger and William Dickson, is the main champion of
the human relations movement, which later evolved into organizational behaviour. They
argued that inter-relationships among group members are an important aspect in
organizational settings [15]. Their "Hawthorne experiment" proved to be a paradigm shifter
in management studies. The "Hawthorne Effect" is a term that describes the phenomenon in
which people work harder and perform better when they are observed. Organization could be
considered as a social system by the human relations movement.

Behavioural Schools

The theory suggests ideas for how managers should act in order to motivate their employees.
And the goal is to motivate employees to accomplish organizational objectives by performing
at the highest level possible. A.H. Maslow, Douglas McGregor, Argyris, F. Herzberg, Rensis
Likert, J.G. Likert, Kurt Lewin, and Keith Davis were among the sociologists and
psychologists who contributed to this. It is an advanced version of human relations theory. 

The behavioral science approach considers human behavior in organizations and promotes
human development and its benefits at both the individual and organizational levels.

Theory X and Theory Y

Theorist Douglas McGregor is credited with developing these two opposing concepts. These
theories particularly refer to two management styles: authoritarian (Theory X) and
participative (Theory Y).

Leaders are more likely to use the authoritarian managerial style if the members of the team
display little passion for their work. However, if employees show a willingness to learn and
are enthusiastic about their work, their manager is more likely to use participative
management. A manager management style could very well impact how well he/she can
motivate his team members.
Theory X views workers as pessimistic in the sense that they cannot work in the absence of
incentives. Theory Y, on the other hand, has a positive attitude toward employees. According
to the latter theory, employees and managers can develop a collaborative and trusting
relationship [16].

Modern Management Theory

According to modern management theory, workers work for different of reasons, which
include achieving satisfaction, happiness, and desired lifestyles. Managers could use this
theory to determine their workers' behaviors as well as needs, and then implement strategies
to meet those needs and support their skill development over time 17.

Management Science Theory

Edward Deming, the "Father of Quality Management," he introduced the most impressive
philosophy of management science. Deming is unquestionably a forefather of quality
management and the use of statistics in management. He pioneered a new management
paradigm, which resulted in significant advancements in quality management.

Management science theory emerged following World War II. This theory's main characters
are mathematics, statistics, and quantitative techniques.

Customer satisfaction, employee engagement, and continuous improvement are three most
important aspects of quality management.

Modern organizational theory employs mathematical analysis in conjunction with an

objective understanding of the range of human emotions and motivation. A manager can use
mathematics and statistics to assess an employee's motivation and performance. Essentially, it
is about determining what motivates an employee.

There are three parts in the modern theory of management: Quantitative, Systems and
Contingency. 

Quantitative Theory

To solve complex problems, the quantitative approach to management implements statistics

and mathematical techniques. Managers may use techniques such as computer simulations or
information models to assess performance, depending on the business. This analysis allows
them to understand what is working and what is not in the business, and then develop
solutions to solve or improve the problems they discover. Managers can also use these
techniques and data to assess the advantages and disadvantages of various ideas. This
approach can assist managers in making objective decisions that support the business based
on facts data rather than personal opinions or feelings.

System Theory

According to systems theory, a confined organization cannot exist. According to systems

theory, a confined organization cannot exist. To operate efficiently, managers need to
consider external variables impacting the organization. Open and closed are two types of
systems.

An open system is that have direct contact with and influenced by its surroundings
environment. according to modern management experts’ organizations are open systems. The
environment can be raw materials, industrial equipment, manpower, innovative products,
regulatory frameworks, and so on. All of these environmental factors enter an organization as
input. They are exchanged into products and walk out of the organization in the form of
output and once again mix with the environment. All the factors of input and output influence
the organization. That is why an organization is called an open system.

A closed system is one that does not have any interaction with its surrounding environment.
It is rather a self-contained, self-maintaining unit with very little communication with its
surroundings. This is because its day-to-day operation is not dependent on external
influences. The assembly line could be perceived as a closed system.

Open and closed are two types of systems.

“An open system interacts with its environment such includes; all biological, human and
social systems whereas several mechanical and physical systems are regarded as closed
systems”. Interestingly, organisation as a closed system is view of traditional organisational
theorists whereas organisation treated as an open system is a viewpoint of modern theorists.
[10] [19]

Contingency Theory

The contingency approach is the most recent addition to the existing management methods.
The goal of contingency theory is to integrate theory and practice in a systems framework.
An organization's behavior is said to be influenced by environmental forces. "A contingency
approach is thus an approach in which one sub-behavior unit's is dependent on its
environment and relationship to other units or sub-units that have some control over the
sequences desired by that sub-unit.

In the present-day some of the earlier management theorists like Fayol (1841 – 1925),
Mintzberg (1939-) and Katz (1926-) are relevant in modern workplace in contravention

manner. Since these theories were produced there have been vast changes in markets,
communication systems, automation and technology. This has led some modern

commentators to question whether their theories have any real value and application in the
21st century.

Every earlier management theory is relevant to managers in one way or the other. All the
management theories address some aspects of management and shed light into the best

way to handle management (Heller 2006). Despite the limitation of earlier management
theories have it still have they form important foundation to management decisions and

practice.

These theories are still of general application but do have their limitations considering the
technological advances since his death in 1925.
Since this was a new concept, research, observations, experiments, and trial
and error were all used to find new and better ways to manage employees.

This is effectively the theme of modern-day organisations too to have structural and
patronized functions in order to avoid wastage of resources and enhance operational
efficiency (Brown, 2014).

Organisations would even continue its functionality even if workers quit, which is visible in
modern day to some extent that organisation stays while employees come and go (Brown,
2014).

Still, there are a couple of instances where Theory X can be applied. For
instance, large corporations that hire thousands of employees for routine
work may find adopting this form of management ideal.