MANAGEMENT THEORIES

Management theory is defined as a collection of ideas which set forth general rules on how to manage a business or organization. Management theory addresses how managers and supervisors relate to their organizations in the knowledge of its goals, the implementation of effective means to get the goals accomplished and how to motivate employees to perform to the highest standard.

THEORIES OF MANAGEMENT 

Managers in the early 1900s had very few external resources to draw upon to guide them and develop their management practice. But thanks to early theorists like Henri Fayol. Fayol and others like him are responsible for building the foundations of modern management theory.

            Fayol developed what he considered to be the fourteen most important principles of management. The fourteen point principles explained how managers should organize and interact with staff.

            Fayol also created a list of the six primary functions of management which go hand in hand with the principles.

            Fayol’s “fourteen principle” was one of the earliest theories of management to be created and remains one of the most comprehensive. His theory fall under the administrative management school of thought as opposed to scientific management school led by Fredrick Taylor.

FAYOL’S FOURTEEN PRINCIPLES OF MANAGEMENT

v  DIVISION OF WORK: When employees are specialized, output can increase because they become increasingly skilled and efficient.

v  AUTHORITY: Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility. 

v  DISCIPLINE: Discipline must be upheld in organizations but methods for doing so can vary.

v  UNITY OF COMMAND: Employees should have one direct supervisors.

v  UNITY OF DIRECTION: Teams with the same objective should be working under the direction of one manager using one plan. This will ensure that action is properly coordinated.

v  SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTEREST: The interest of an employee should not be allowed to become more important than those of the group. This includes managers.

v  REMUNERATION: Employee satisfaction depends on fair remuneration for employee. This includes financial and non-financial compensation.

v  CENTRALIZATION: This principle refers to how close employees are to the decision making process. It is important to aim for an appropriate balance.

v  SCALAR CHAIN: Employees should be aware of where they stand in the organization’s hierarchy or chain of command.

v  ORDER: The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.

v  EQUITY: Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate.

v  STABILITY OF TENURE OF PERSONNEL: Managers should strive to minimize employee turnover. Personnel planning should be a priority.

v  IMITATIVE: Employees should be given the necessary level of freedom to create and carry out plans.

v  ESPIRIT DE CORPS: Organizations should strive to promote team spirit and unity.

FAYOL’S SIX FUNCTIONS OF MANAGEMENT

·         Forecasting

·         Planning

·         Organizing

·         Commanding

·         Coordinating

·         Controlling