Management Theories

1. Theories

1.1. Frederic Taylor: Theory of Scientific Managament

1.1.1. Definition

1.1.1.1. improving economic efficiency by the use of money

1.1.2. Differential Rate System

1.1.2.1. Efficiency > Standard: 120% Normal Piece Rate

1.1.2.2. Efficiency < Standard: 80% Normal Piece Rate

1.1.3. Principles

1.1.3.1. Time and Motion Study

1.1.3.2. Teach, Train and Develop

1.1.3.3. Harmonization of the Interest of the Employer and Employee

1.1.3.4. Establish Fair Levels of Performance

1.2. Henri Fayol: Administrative Management Theory

1.2.1. Henri Fayol is the Father of Management

1.2.2. Principles

1.2.2.1. Authority and Responsibility

1.2.2.2. Centralization

1.2.2.3. Discipline

1.2.2.4. Division of Work

1.2.2.5. Equity

1.2.2.6. Espirit De Corps

1.2.2.7. Initiative

1.2.2.8. Order

1.2.2.9. Remuneration

1.2.2.10. Scalar Chain

1.2.2.11. Stability of Tenue

1.2.2.12. Subordination of Individual Interest to General Interest

1.2.2.13. Unity of Command

1.2.2.14. Unity of Direction

1.3. Max Weber: Bureaucratic Theory of Management

1.3.1. Power can make people obey/

1.3.2. Power

1.3.2.1. Traditional

1.3.2.2. Charismatic

1.3.2.3. Bureaucratic

1.3.2.3.1. Feautures

1.4. Elton Mayo: Behavioral Theory of Management

1.4.1. Hawthorne Effect

1.4.1.1. Taking care of one's employees increases their productivity

2. Definition

2.1. It is a set of rules that is made in order for one to properly and efficiently manage an organization.

2.2. A theory is an explanation to aid employees to effectively relate themselves to their business goals and implement means to achieve the same.