Various types of

Management theories
Theory

Theory, singular, is a term which

covers a wide variety of different
things which have in common only the
element of generalized
conceptualization, the two most
important functions of which are the
facilitation of description and analysis.
The Theory of Cooperation

 This theory defines a “foreman organization as

any cooperative system in which there are
persons able to communicate with each other,
and who are willing to contribute action toward a
conscious common purpose.”
 This theory is attributed to Chester Bernard,
acknowledged spiritual father of the social
systems school. Somewhat similar to this theory is
the so-called coordinative principle.
 As coordination the all-inclusive principle of
organization, it must have its own principles and
foundation in authority, or the supreme coordinating
power. A true coordination must be based on a real
community of interest in the attainment of the
desired objective.
 Like Barnard, Herbert Simon who like the former is
associated with the social systems school, views
organization “as systems of interdependent activity,
encompassing at least several primary groups.” These
are usually characterized by a high degree of rational
direction of behavior toward ends that are objects of
common knowledge on the part of the participants.
Group Theories

 Ofequal interest to the study of

management is known as group theories.
According to Elton Mayo, there exists an
important influence of group behavior on
employee motivation and productivity on
the recognition that man is a social being
and acts in accordance with the accepted
norms of the group to which he belongs.
For his part, Rensis Likert contribuited
a number of group-related theories,
one of which deals with the effect of
“employee-centered” versus “task-
centered” supervisors on work-group
productivity. There is observed a higher
level productivity when supervisors are
concerned with the welfare of the
workers than where their immediate
concern is getting the jobs done.
Value Theory

 Unless management places important values to

the individual workingman’s needs while striving
for the attainment of the goals of the company,
initiative, creativity and willingness to work will
suffer if not altogether disappear. Thus, under
that atmosphere, workers will not feel that it is
important to do a good job. Cris Argyris, George
Straus and others have developed the value
theory through the use of “personality versus
organization” hypothesis with respect to human
motivation in industry.
Theory X and Theory Y

Inasmuch as Douglas McGregor’s

Theory X and Theory Y model of
managerial philosophy has had a
distinctive impact upon managerial
thinking, said theories deserve
separate treatment.
The theory X philosophy contends that
by rigidly structuring the work of the
worker and removing from him the
power of making decisions as well as
initiative, just as he is compelled to do
a series of repetitive work, the
ultimate result is apathy, that is,
dissatisfaction with his job, As such,
he becomes indifferent, if not hostile
to organizational goals.
The Theory Y, on the other hand,
makes the assumption that
workers are by their very nature,
ambitious, trustworthy, creative,
and energetic. For this reason,
management has the bounden duty
to restructure by itself the work
situation in order to make use of
such motivations to produce.
Activity

1. Which of the following theories do you believe most?

2. In your own opinion, which of the following theories
will best apply to most organization? Why?
3. Will the absence of one theory affect the organizations
performance? Why?
4. Site an example of an organization with best practices
and assess what theory or theories are being applied.