ROHANISAH M.

TANGGO
Educational Administration 205
DR. REUBERT L. DECHOS

MANAGEMENT THEORIES
Management theories are the set of general rules that guide the managers
to manage an organization. Theories are an explanation to assist employees
to effectively relate to the business goals and implement effective means to
achieve the same.

Classical management theory

1. Henri Fayol = administrative management theory.
2. Frederick Taylor = scientific management theory.
3. Max Weber = bureaucratic management theory.

1. Henri Fayols Administrative management theory.

- He focused efficiency through management training
behavioural characteristic

and

Henri Fayol Known as the Father of management laid down the 14

principles of management.
Henri Fayol
1. Division of work > allows for job specialization.
> Fayol noted jobs can have too much
specialization leading to poor quality
and works
dissatisfaction.
2. Authority and Responsibility > Fayol included both formal and
informal authority resulting from
special expertise.
3. Discipline > obedient, applied, respectful employees are necessary
for the organization to function.
4. Unity of Command > employees should be one base.
5. Unity of Direction > a single plan of action to guide the organization.
6. Subordination of individual interest to the common interest
> the interest of the organization
takes precedence over that of the individual employee.

7. Remuneration of personal > an equitable uniform payment system

that motivates contributes to organizational success.
8. Centralization > the degree to which authority rest at the top of the
organization.
9. Line of authority (scalar chain) > a clear chain of command forum
top to bottom of the firm.
10.
Equity > the provision of justice and the fair and impartial
treatment of all employees.
11.
Order > the arrangement of employees where they will be of the
most value to the organization and to provide career opportunities.
12.
Stability of Tenure of personnel > long-term employment is
important for the development of skill that improve the organizations
performance.
13.
Initiative > employees should give the necessary level of
freedom to create and carry out plans.
14.
Esprit de corps > comradeship, shared enthusiasm foster
devotion to the common cause organization
2. Frederick Taylors theory of scientific management
Taylors theory of scientific management aimed at, improving economic
efficiency, especially labor productivity. Taylor had a simple view about what
motived people at work-money, he felt that workers should act a fair days
pay for a fair days work, and that pay, should be linked the amount
produced. Therefore he introduced the differential price rate system of
paying wages to the workers.
Taylors differential piece rate plan:
-

If efficiency is greater than the defined standard then workers

should be paid 120% of normal piece rate.
If efficiency is less than standard then workers should be paid 80%
of normal piece rate.

Important component of scientific management include analysis, synthesis,

logic, rationally, empiricism, work, ethic, efficiency, and elimination of waste
and standardized best practices.
Four principle of scientific management
1. Time and motion study
2. Teach, train and develop the workman with improved method of doing
work

3. Interest of employer and employees should be fully harmonized so as

to secure mutually understanding relation between them.
4. Establish fair levels of performance and pay a premium for higher
performance.
Contribution of scientific management
- Develop a science for each element of a job to replace old rule of
thumb method.
- Scientifically select employees and then train them to do the job as
described.
- Supervise employees to make sure the follow the prescribed
methods for performing their jobs.
- Continue to plan the job but use workers to actually get the work
done.
- Taylors differential piece rate system.
3. Max Webers Bureaucratic Theory of management
Weber believed in amore formalized, rigid structured of organization
known as bureaucracy, this non-personal view of organizations followed a
formal structure where the rules, formal legitimate authority and
competence were characteristics of appropriate management practice.
He believe that
supervisions power should be based on an individuals position within the
organization, his or her level of professional competence and supervisors
adherence to explicit the rule and regulation.
Weber presented three types of legitimate
authority:
1. Traditional authority where acceptance of those in authority arose
from tradition and custom.
2. Charismatic authority where acceptance arises from loyalty to,
and confidence in, the personal qualities of the ruler.
3. Rational legal authority where acceptance arises out of the office,
or position, of the person in authority as bounded by the rules and
procedures of the organization.
Characteristics of bureaucratic
organization
1. A well-defined formal hierarchy and chain of command distinguishes
the level of authority within an organization. Individual who hold higher
positions will supervise and direct position within the hierarchy.
2. Management by rules and regulations provide a set of standard
operating procedures that facilitate consistency in both organizational
and management practices.

3. Division of labor and work specialization are used to align employees

with their organizational tasks. This way, an employee will work on
things with which de or she has experience and knows how to do well.
4. Manager should maintain an impersonal relationship with employees to
promote fair and equal treatment of all employees so that unbiased
decisions can be made.
5. Competence, not personality, is the basis for job appointment. An
employee should be chosen, placed and promote within an
organizational based on his or her level of experience and competency
to perform the job.