Introduction

Discuss the main principle of classical management, behavioral and modern management
theories.

What are management theories?

Management theories are ideas about how people manage employees in an organization. In order
to lead a business, people must understand what motivates and directs employees in a company.
Management theories explain what motivates employees and how leaders can use these
motivators to control and guide them. Management theories provide management strategies,
frameworks, and guidelines that employers can implement in the office. Companies need
different management for different work settings. For hundreds of years, theorists have
researched the best forms of management for different companies. Now we can use the
frameworks given in these management theories to create a framework for management in
companies today.

Modern Management Theory

Modern Management Theory was created in direct response to the Classical Management Theory
that states employees are only motivated by money. The Modern Management Theory
recognizes that workers are complex and have many reasons for wanting to succeed in their job.
The Modern Management Theory also believes that rapidly changing technology can both cause
and solve many problems in the workplace. 

This theory combines mathematical analysis with an understanding of human emotions and
motivation in order to create a working environment that is maximally productive. A manager
using the Modern Management Theory will use statistics to measure employee performance and
productivity and also try to understand what makes their employees satisfied at their jobs. 

Modern Management Theory is actually comprised of three other management theories —

Quantitative Theory, Systems Theory, and Contingency Theory.
Quantitative Theory
This theory based on efficiency and mathematical equations came out of the necessity for
managerial excellence in World War II. This is a simple number-based theory that relies on
calculating the risks, benefits, and drawbacks of any action before it is taken. This approach
applies statistics, computer simulations, information models, and other quantitative techniques to
the management of a company. This theory is usually not used to manage a business on its own.
Instead, the Quantitative Theory must be used with more humanistic theories, in order to run a
company. 

Systems Theory
This theory treats companies like a living organism, with all parts necessary for the company to
survive. Developed by Ludwig von Bertalanffy, this theory states that all parts of a company,
from the CEO to the entry-level employee, must work in harmony for the company to survive.
Companies using this theory think that departments and employees must work as a collective
group and not an isolated unit. Synergy and interconnectedness between departments are key
with this theory. 

While striving for harmony between departments is important in a company, most companies
don’t need to rely on synergy so much for their day-to-day functions. For example, the
accounting department of a small company doesn’t need to be totally in sync with the HR
department. This management theory is more of a way you can view the company, not an exact
management style.

Contingency Theory
The Contingency Management Theory holds that every situation requires a different leadership
style, and therefore no one theory can work for an entire office. Created by Fred Fiedler in the
1960s, this theory states that it is up to the leaders of a company to assess a situation and use the
best leadership strategy. Fiedler believed there are three main variables for determining what
leadership strategy to employ — organization size, technology being used, and the overall style
of leadership in the company. 
This theory puts a lot of responsibility on the leaders of a company. Fiedler believed that a
leader’s traits directly affected how they managed people. This theory is also a more useable
theory for modern workplaces, as it understands that as technology and companies change, so
must the leadership styles.

Classical Management Theory

The Classical Management Theory system of belief states that employees are only motivated by
physical and economic needs. It calls for a clear structure of management where the workforce is
divided into owners, middle management, and supervisors. This theory views the workplace as
an assembly line, with each worker completing a specialized task instead of multitasking. People
who utilize this theory believe workers are motivated by financial rewards based on the
competency of their work. When companies put this theory to practical use, they will often see
an increase in productivity. It can help streamline a company and make employees focus on the
bottom line. However, as the theory does not consider social needs, job satisfaction, and human
relationships, it can also lead to a sizable amount of burnout among employees. This model
exerts a great deal of control over human behaviours and treats employees as a machine. For
many companies, Classical Management Theory fell out of favour in the past 60 years as more
modern theories emphasized the humanity of the workforce.

Scientific Management Theory

Fredrick Taylor came up with this theory at the end of the 19th century. He believed that using
the scientific method will get the best results out of workers in the office. First, use the scientific
method to determine the best way to perform a specific task. Next, you assign workers to tasks
that match their abilities and train them to maximize their output. Then you must monitor the
workers constantly to ensure they are using the most efficient methods. Finally, managers should
spend their time training and planning for future work. Parts of the Scientific Management
Theory are still in use today. Managers should offer help and advice when needed, and they
should always look towards the future. However, now workers get more say about how they
think their job should be done and are usually not hired to perform just one specific task. The
Scientific Management Theory was best suited to large companies at the turn of the century, not
small modern offices.

Bureaucratic Management Theory

The Bureaucratic Management Theory, created by Max Weber in the late 1800s, states that
companies should be structured in a hierarchical system with clear rules, roles, and procedures.
This theory stresses bureaucracy in six main areas — hierarchical structure, task specialization,
formal selection, rules, advancement based on achievement, and an impersonal working
environment. Under this theory, promotions are not about personal character or relationships, but
strictly based on performance. This management theory has become less popular in the century
due to its rigid structure. While in theory it makes sense for an office to have rules and standards
which everyone must follow, in practice there will always be emotions and personal relationships
in an office which will go against these bureaucratic guidelines.

Theory X and Theory Y

This theory, proposed by Douglas McGregor in 1960, believes that there are two main
management styles and leaders must choose which style to employ based on the perceived
motivation of their employees. Leaders should use Theory X when dealing with a workforce that
is unmotivated and dislikes work. Managers who use Theory X must use an authoritarian work
style to get anything done. Managers should use Theory Y when they believe their workforce is
engaged, self-motivated, and enjoy their job. Managers who use Theory Y use a more
participatory style of management. While this theory provides two different options for
management, both options are quite extreme. Employees fall somewhere between Theory X and
Theory Y, and managers must adjust their management style accordingly. This theory of
management has become less popular over time as managers viewed their employees in less
stark terms and tried to understand their employees.

Discuss the different and similarities among each school of thought

Scientific management
Classical Administrative theory
Behavioral school of thought and Modern theory
Argue modern theory based on your perspective (support or against)

Benefits of the Modern Management Theory

Modern Management Theory is a great management theory for the modern world because it
recognizes and respects the changes that come with technology. This theory understands that
technology changes the workplace and leaders must be able to incorporate these changes
efficiently. For example, a manager that uses the Modern Management Theory will look at a
development such as working from home on two fronts. They will analyze the costs and benefits
of having employees work from home, and they will also ask individuals how working from
home benefits their own lifestyle. 

This two-pronged approach to management allows for the straight facts of hard data, and the
more introspective and personal approach to leadership. This theory treats employees as complex
individuals who are concerned with more than just their salary, while also allowing for some
company decisions to be made by rational and statistical analysis. 

What you draw a lesson from system theory

Which theories are more applicable in public sector ?Why?

Summary
References