1.0.

0 Introduction
Management theories are implemented to help face these issues and to increase organizational
productivity and service quality. Despite the inexactness and relative crudity of management
theory and science, the development of thought of management dates back to the days when
people first attempted to accomplish goals by working together in groups. We can see that the
many different contributions of writers and practitioners have resulted in different approaches to
management.
In this developing field of management, there have been several theories and experimentations
conducted by theorists and practitioners in order to enhance the understanding that could lead to
improvements to elevated productivity.

1.1.0 Objective of the Study

Broad Objective:
The Broad objective of the repot is to discuss and analyse the four major theories of
management.

Specific Objective:
To discuss the theories of management.
To find the contributions and importance of the theories.
To find the limitations and criticism of the theories.

1.2.0 Motivation
I am pleased to say that I have completed my assignment on Analysis of Management
Theories. My report focuses on the four major theories of management and their Contributions
and criticism. It has been a huge learning experience for me and I have enjoyed preparing this
report and look forward to do more research on these related topics further.

1.3.0 Scope of the study

First of all the scope of this term paper is limited by the secondary sources of data. Secondly this
Assignment mainly covered management theories .This study will help to get a clear idea of the
emergence of management thought, who have made significant contributions in the evaluation of
management thought, major contributions are noted. Finally, it will encourage further study in
this area and will provide useful guidelines for this type of study.

1.4.0 Limitation of the study

The assignment has some limitations as well.
*Data accuracy may be influenced as information was collected from the internet.
*Information was limited to the secondary sources only such as articles, journals, books and the
internet. There is no primary source of data.

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2.1.0 Classical theory of Management

The classical approach on management emerged during the nineteenth and early
twentieth century and to some extent is accepted and practiced by many managers even today.
The classical school actually includes two different areas: lower-level management analysis
(scientific management); and comprehensive analysis of management (administrative theory).
2.1.1 Scientific Theory
Productivity became the serious business problem during the first few years of 19 th
century. Business was expanding quickly and capital was readily available, but labor was in short
supply. Therefore, managers began to search for ways to use existing labor more efficiently. As
per the companies need, experts start to find ways to improve the performance of individual
workers. Their work led to the development of scientific management thepry. Some of the
earliest advocates of scientific management included Frederick W. Taylor (18561915), Frank
Gilbreth (18681924), Lillian Gilbreth (18781972), Henry Gantt (18611919), and Harrington
Emerson (18531931). Taylor played the dominant role.
Frederick Taylor: Frederick Taylor developed the system of scientific management,
which he believed would lead to a more efficient and productive workforce. It was first
successfully implemented into Bethlehem Steel and still practices some parts of it today.
Taylor's four principles are as follows:
1.
Replace working by "rule of thumb," or simple habit and common sense, and
instead use the scientific method to study work and determine the most efficient way to perform
specific tasks.
2.
Rather than simply assign workers to just any job, match workers to their jobs
based on capability and motivation, and train them to work at maximum efficiency.
3.
Monitor worker performance, and provide instructions and supervision to ensure
that they're using the most efficient ways of working.
4.
Allocate the work between managers and workers so that the managers spend
their time planning and training, allowing the workers to perform their tasks efficiently.

Figure 1: Four Steps of Scientific Theory Cengage Learning 2013

Frank and Lillian Gilbreth: Frank and Lillian Gilbreth, were a husband-and-wife. They
were industrial engineers. Frank Gilbreths most interesting contribution was to the craft of
bricklaying. After studying bricklayers at work, he developed several procedures for doing the
job more efficiently. For example, he specified standard materials and techniques, including the
positioning of the bricklayer, the bricks, and the mortar at different levels. The results of these
changes were a reduction from 18 separate physical movements to five and an increase in output
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of about 200 percent. Lillian Gilbreth made equally important contributions to several different
areas of work, helped shape the field of industrial psychology, and made substantive
contributions to the field of personnel management. Working individually and together, the
Gilbreths developed numerous techniques and strategies for eliminating inefficiency. They
applied many of their ideas to their family and documented their experiences raising 12 children
in the book and original 1950 movie Cheaper by the Dozen.
Henry Gantt: Henry Gantt, the inventor of Gantt chart, is another contributor to
scientific management. He was an associate of Taylor. He developed few techniques for
improving worker output. One of them is Gantt chart, is still used today. A Gantt chart is
essentially a means of scheduling work and can be generated for each worker or for a complex
project as a whole. Gantt also refined Taylors ideas about piecework pay systems.
Harrington Emerson: Harrington Emerson was another management consultant. He
came to the light in 1910 when he appeared before the Interstate Commerce Commission to
testify about a rate increase requested by the railroads. As an expert witness, Emerson asserted
that the railroads could save $1 million a day by using scientific management. He was also a
strong advocate of specialized management roles in organizations, believing that job
specialization was as relevant to managerial work as it was to operating jobs.

2.1.2 Administrative theory

Scientific management deals with the jobs of individual employees, administrative
management focuses on managing the total organization. The primary contributors to
administrative management were Henri Fayol (18411925), Lyndall Urwick (18911983), Max
Weber (18641920), and Chester Barnard (18861961). However, the most notable of all
contributors was Henry Fayol. His book, General and Industrial Management, had a major
impact on the emerging field of management.
Henri Fayol: Henri Fayol was administrative managements most articulate
spokesperson. A French industrialist, Fayol was unknown to U.S. managers and scholars until his
most important work, General and Industrial Management, was translated into English in 1930.
16 Drawing on his own managerial experience, he attempted to systematize the practice of
management to provide guidance and direction to other managers. Fayol also was the first to
identify the specific managerial functions of planning, organizing, leading, and controlling. He
believed that these functions accurately reflect the core of the management process. Most
contemporary management books still use this framework, and practicing managers agree that
these functions are a critical part of their jobs. Fayal identifies the following six major activities
of any industrial or business organization:
1. Technical (production and manufacturing)
2. Commercial (buying, selling and exchanging)
3. Financial (search for an optimum use of capital)

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4. Security (safeguarding property and people)

5. Accounting (including statistics)
6. Managerial.
In addition to these six management activities, Fayol identified fourteen universal principles of
management which are aimed at showing managers how to carry out their functional duties. He
himself followed them. His 14 principles of management are as bellow:
I.
DIVISION OF WORK: Work should be divided among individuals and groups to
ensure that effort and attention are focused on special portions of the task. Fayol
presented work specialization as the best way to use the human resources of the
organization.
II.
AUTHORITY: The concepts of Authority and responsibility are closely related.
Authority was defined by Fayol as the right to give orders and the power to exact
obedience. Responsibility involves being accountable, and is therefore naturally
associated with authority. Whoever assumes authority also assumes responsibility.
III.
DISCIPLINE: A successful organization requires the common effort of workers.
Penalties should be applied judiciously to encourage this common effort
IV. UNITY OF COMMAND: Workers should receive orders from only one manager
V. UNITY OF DIRECTION: The entire organization should be moving towards a
common objective in a common direction
VI.
SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL
INTERESTS: The interests of one person should not take priority over the
interests of the organization as a whole
VII.
REMUNERATION: Many variables, such as cost of living, supply of qualified
personnel, general business conditions, and success of the business, should be
considered in determining a workers rate of pay
VIII.
CENTRALIZATION: Fayol defined centralization as lowering the importance of
the subordinate role. Decentralization is increasing the importance. The degree to
which centralization or decentralization should be adopted depends on the specific
organization in which the manager is working
IX.
SCALAR CHAIN: Managers in hierarchies are part of a chain like authority
scale. Each manager, from the first line supervisor to the president, possess certain
amounts of authority. The President possesses the most authority; the first line
supervisor the least. Lower level managers should always keep upper level
managers informed of their work activities. The existence of a scalar chain and
adherence to it are necessary if the organization is to be successful
X. ORDER: For the sake of efficiency and coordination, all materials and people
related to a specific kind of work should be treated as equally as possible
XI.
EQUITY: All employees should be treated as equally as possible
XII.
STABILITY OF TENURE OF PERSONNEL: Retaining productive employees
should always be a high priority of management. Recruitment and Selection
Costs, as well as increased product-reject rates are usually associated with hiring
new workers
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XIII.
XIV.

INITIATIVE: Management should take steps to encourage worker initiative,

which is defined as new or additional work activity undertaken through self
direction
ESPIRIT DE CORPS: Management should encourage harmony and general good
feelings among employees.

Lyndall Urwick: Lyndall Urwick, a noted management theorist and consultant was a
British army officer at the starting of his carrier. He integrated scientific management with the
work of Fayol and other administrative management theorists. He also advanced modern
thinking about the functions of planning, organizing, and controlling. Like Fayol, he developed a
list of guidelines for improving managerial effectiveness.
Max Weber: Max Weber is known for his Bureaucracy Theory. He lived and worked at
the same time as Fayol and Taylor, but his contributions were not recognized until some years
had passed. Weber was a German sociologist. The concept of bureaucracy based on a rational set
of guidelines for structuring organizations in the most efficient manner. The main features of
bureaucracy according to Weber were:

a continuous organization or functions bounded by rules

that individuals functioned within the limits of the specialization of the work, the degree of
authority allocated and the rules governing the exercise of authority
a hierarchical structure of offices
appointment to offices made on the grounds of technical competence only
the separation of officials from the ownership of the organization
the authority was vested in the official positions and not in the personalities that held these
posts. Rules, decisions and actions were formulated and recorded in writing.
Chester Barnard: Chester Barnard, former president of New Jersey Bell Telephone
Company, made
notable contributions to management in his book The Functions of the
Executive. The book proposes a major theory about the acceptance of authority. The theory
suggests that subordinates weigh the legitimacy of a supervisors directives and then decide
whether to accept them. An order is accepted if the subordinate understands it, is able to comply
with it, and views it as appropriate. The importance of Barnards work is enhanced by his
experience as a top manager.

2.1.3 Contribution of the Classical Management Theory

Classical management theory was introduced in the late 19th century. It became widespread in
the first half of the 20th century. While other management theories have evolved since then,
classical management approaches are still used today by many small-business owners to build
their companies and to succeed.
Hierarchical Structure: One of the advantages of the classical management structure is
a clear organizational hierarchy with three distinct management levels. Each management group
has its own objectives and responsibilities.

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Division of Labor: One of the advantages of classical management approach is the

division of labor. Projects are broken down into smaller tasks that are easy to complete.
Employees' responsibilities and expectations are clearly defined. The division of labor approach
leads to increased productivity and higher efficiency, as workers are not expected to multitask.
Monetary Incentive: According to classical management theory, employees should be
motivated by monetary rewards. Employees feel appreciated when being rewarded for hard
work. A small-business owner can take this approach to motivate the employees to achieve
production goals.
Autocratic Leadership: The autocratic leadership approach is the central part of
classical management theory. A single leader will take decision for the company and he will
direct all employees. All decisions are made at the top level and communicated down. The
autocratic leadership approach is beneficial in instances when small-business decisions need to
be made quickly by a leader, without having to consult with a large group of people, such a board
of directors.

2.1.4 Criticism of the Classical Management Theory

Reliance on experience: The classical theory of management was developed by ideas on
the basis of their experiences as managers or consultants with only certain types of organizations.
It may not be applicable to generalize from those situations to others especially to young, hightechnology firms of today.
Untested assumptions: Many of the assumptions made by classical writers were based
not on scientific tests but on value judgments that expressed what they believed to be proper lifestyles, moral codes, and attitudes toward success. These assumptions fail to recognize that
employees may have wants and needs unrelated to the workplace or may view their jobs only as
a necessary evil.
Human machinery: Even though some writers (such as Lillian Gilbreth and Chester
Barnard) were concerned with the human element, many viewed employees as tools rather than
resources.
Static conditions: Organizations are influenced by external conditions that often
fluctuate over time, yet classical management, theory presents an image of an organization that is
not shaped by external influences.
Back Dated: Classical Theory is more appropriate for stable and simple organizations
than for todays dynamic and complex organizations. Classical Theory often told universal
procedures that are not appropriate in some settings.

2.2.0 Behavioral Management theory

The behavioral Theory of management (sometimes called the "human relations perspective")
takes a much different approach from the classical perspective. Typical behavioral school topics
include motivation, communication, leadership, organizational politics, and employee behavior.
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It began in the 1920s with theorists such as Elton Mayo, Abraham Maslow, and Mary Parker
Follett.
Hugo Munsterberg: Hugo Munsterberg (June 1, 1863 December 19, 1916) was a
German-American psychologist. He was one of the pioneers of applied psychology, extending
his research and theories to industrial/organizational (I/O), legal, medical, clinical, educational,
and business settings. According to Munsterberg, Industrial psychology, focuses on topics such
as hiring workers with personalities and mental abilities best suited to certain types of vocations,
as well as on ways to increase motivation, performance, and retention. Many of Munsterberg's
ideas, especially the idea of matching an individual's personality with the correct job set and
skills, are common in the use of industrial/organizational psychology today.
Elton Mayo & Hawthorne Studies: Elton Mayo's contributions came as part of
the Hawthorne studies, a series of experiments that rigorously applied classical management
theory only to reveal its shortcomings. The Hawthorne experiments consisted of two studies
conducted at the Hawthorne Works of the Western Electric Company in Chicago from 1924 to
1932. The first study was conducted by a group of engineers seeking to determine the
relationship of lighting levels to worker productivity. Surprisingly enough, they discovered that
worker productivity increased as the lighting levels decreased that is, until the employees
were unable to see what they were doing, after which performance naturally declined.
A few years later, a second group of experiments began. Harvard researchers Mayo and F. J.
Roethlisberger supervised a group of five women in a bank wiring room. They gave the women
special privileges, such as the right to leave their workstations without permission, take rest
periods, enjoy free lunches, and have variations in pay levels and workdays. This experiment
also resulted in significantly increased rates of productivity.
In this case, Mayo and Roethlisberger concluded that the increase in productivity resulted from
the supervisory arrangement rather than the changes in lighting or other associated worker
benefits. Because the experimenters became the primary supervisors of the employees, the
intense interest they displayed for the workers was the basis for the increased motivation and
resulting productivity. Essentially, the experimenters became a part of the study and influenced
its outcome. This is the origin of the term Hawthorne effect, which describes the special attention
researchers give to a study's subjects and the impact that attention has on the study's findings.
The general conclusion from the Hawthorne studies was that human relations and the social
needs of workers are crucial aspects of business management. This principle of human
motivation helped revolutionize theories and practices of management.

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The Human Relations Movement

The human relations movement grew from the Hawthorne studies. A group of Harvard
researchers, headed by Elton Mayo, conducted a series of experiments on worker productivity in
1924 at the Hawthorne plant of Western Electric Company in Illinois. These experiments have
come to be known as the Hawthorne studies.
The Harvard researchers suggested that the way people were treated had an important impact on
performance; individual and social processes played a major role in shaping worker attitudes and
behavior. Therefore, management must recognize the importance worker's needs for recognition
and social satisfaction. Mayo termed this concept of the social man: individuals are motivated by
social needs and good on-the-job relationships and respond better to work-group pressure that to
management control activities.
Two of the best-known contributors who helped advance the human relations movement were
Abraham Maslow and Douglas McGregor.

Abraham Maslow: Abraham Maslow, a practicing psychologist, developed one of the

most widely recognized need theories, a theory of motivation based upon a consideration of
human needs. His theory of human needs had three assumptions:
1. Human needs are never completely satisfied.
2. Human behavior is purposeful and is motivated by the need for satisfaction.
3. Needs can be classified according to a hierarchical structure of importance,
from the lowest to highest. Maslow broke down the needs hierarchy into five specific areas:
Physiological needs: Maslow grouped all physical needs necessary for maintaining basic
human wellbeing, such as food and drink, into this category. After the need is satisfied,
however, it is no longer is a motivator.
Safety needs. These needs include the need for basic security, stability, protection, and
freedom from fear. A normal state exists for an individual to have all these needs
generally satisfied. Otherwise, they become primary motivators.
Belonging and love needs. After the physical and safety needs are satisfied and are no
longer motivators, the need for belonging and love emerges as a primary motivator. The
individual strives to establish meaningful relationships with significant others.
Esteem needs. An individual must develop selfconfidence and wants to achieve status,
reputation, fame, and glory.
Selfactualization needs. Assuming that all the previous needs in the hierarchy are
satisfied, an individual feels a need to find himself.
Maslow's hierarchy of needs theory helped managers visualize employee motivation.

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Douglas McGregor: Additional theories in the behavioral perspective include Douglas

McGregor's Theory X and Theory Y, which have to do with the perceptions managers have about
their employees and how employees react to those perceptions. In Theory X, managers assume
employees are naturally lazy and, therefore, micromanage. In Theory Y, managers are more
tolerant and allow employees more freedom in their work. McGregor's theory of management is
an example of how behavior-management theory looks more into the "human" factors of
management and encourages managers to understand how psychological characteristics can
improve or hinder employee performance.

2.2.1 Contribution of Behavioral Management theory

The theory provided important insights into motivation, group dynamics, and
other interpersonal processes in organizations.
The theory Focused managerial attention on these same processes.
The theory challenged the view that employees are tools and furthered the belief
that employees are valuable resources.

2.2.2 Limitations of Behavioral Management theory

There are few limitations of the theory as the complexity of individual behavior
makes prediction of that behavior difficult.
Many behavioral concepts have not yet been put to use because some managers
are reluctant to adopt them.
Contemporary research findings by behavioral scientists are often not
communicated to practicing managers in an understandable form.

2.3.0 Quantitative Management theory

The third major branch of management thought began to emerge during World War II. In world
war II, new problems raised related the management system. Submarine warfare was introduced
and the situation to handle and mange is getting complex over time. That time, government
officials and scientists in England and the United States worked to help the military deploy its
resources more efficiently and effectively. These groups took some of the mathematical
approaches to management developed decades earlier by Taylor and Gantt and applied them to
logistical problems during the war. They learned that problems regarding troop, equipment, and
submarine deployment, for example, could all be solved through mathematical analysis. After the
war, companies such as DuPont and General Electric began to use the same techniques for
deploying employees, choosing plant locations, and planning warehouses. Basically, then, this
perspective is concerned with
applying quantitative techniques to management. More
specifically, the quantitative management perspective focuses on decision making, economic
effectiveness, mathematical models, and the use of computers.
There are two branches of the quantitative approach:
Management science
Operations management.
Management Science: Unfortunately, the term management science appears to be
related to scientific management, the approach developed by Taylor and others early in the
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twentieth century. But the two have little in common and should not be confused. Management
science focuses specifically on the development of mathematical models. A mathematical model
is a simplified representation of a system, process, or relationship. At its most basic level,
management science focuses on models, equations, and similar representations of reality. For
example, managers at Detroit Edison use mathematical models to determine how best to route
repair crews during blackouts. Citizens Bank of New England uses models to figure out how
many tellers need to be on duty at each location at various times throughout the day. In recent
years, paralleling the advent of the personal computer, management science techniques have
become increasingly sophisticated. For example, automobile manufacturers Daimler AG and
General Motors use realistic computer simulations to study collision damage to cars. These
simulations give them precise information and avoid the costs of crashing so many test cars.
Operations Management: Operations management is somewhat less mathematical and
statistically sophisticated than management science and can be applied more directly to
managerial situations. Indeed, we can think of operations management as a form of applied
management science. Operations management techniques are generally concerned with helping
the organization produce its products or services more efficiently and can be applied to a wide
range of problems. For example, Rubbermaid and Home Depot each use operations management
techniques to manage their inventories. (Inventory management is concerned with specific
inventory problems, such as balancing carrying costs and ordering costs, and determining the
optimal order quantity.) Linear programming (which involves computing simultaneous solutions
to a set of linear equations) helps United Airlines plan its flight schedules, Consolidated
Freightways develop its shipping routes, and General Instrument Corporation plan what
instruments to produce at various times. Other operations management techniques include
queuing theory, break-even analysis, and simulation. All of these techniques and procedures
apply directly to operations, but they are also helpful in such areas as finance, marketing, and
human resource management

2.3.1 Contributions of Quantitative Management theory

Developed sophisticated quantitative techniques to assist in
decision making.
Application of models has increased our awareness and
understanding of complex organizational processes and
situations.
Has been very useful in the planning and controlling processes.

2.3.2 Criticism of Quantitative Management theory

Cannot fully explain or predict the behavior of people in
organizations.
Mathematical sophistication may come at the expense of other
important skills.
Models may require unrealistic or unfounded assumptions.

2.4.0 Integrated theory of Management

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Integrating Theory of Management is a complete understanding of management requires an

appreciation of Classical, Behavioral and Quantitative approaches. In 1950s, management
theorists attempted to integrate Classical, Behavioral and Quantitative into a holistic vie of the
management process.. The two branches of the theory are, The System and Contingency. The
System and the Contingency theory can help managers integrate the three approaches and
enlarge understanding of all three.
System Theory:
The System theorists focus on viewing the organization as a whole as the
interrelationship of its parts. System theorists began by assumes that an organization is a system
that transforms input into output.
Contingency Theory
The contingency theory focus on determining the best management approach for a given
situation. In the 1960s and 1970s, management researchers wanted to determine how the
environment and technology affected the organization.

3.0.0 Conclusion
Theories are important as organizers of knowledge and as road maps for action. Understanding
the historical context and precursors of management and organizations provides a sense of
heritage and can also help managers avoid repeating the mistakes of others. Evidence suggests
that interest in management dates back thousands of years, but a scientific approach to
management has emerged only in the last hundred years. During the first few decades of this
century, three primary perspectives on management emerged. These are called the classical
perspective, the behavioral perspective, and the quantitative perspective.
The classical management theory has two branches as scientific management and administrative
management. Scientific management is concern with improving efficiency and work methods for
individual workers on the other hand administrative management is more concern with how
organizations should be structured and arranged for efficient operations. Both branches paid little
attention to the role of the worker.
The behavioral management perspective, developed by a concern for individual and group
behavior, emerged primarily as a result of the Hawthorne studies. The human relations
movement recognized the importance and potential of behavioral processes in organizations but
made many overly simplistic assumptions about those processes. Organizational behavior, a
more realistic outgrowth of the behavioral perspective, is of interest to many contemporary
managers.
The quantitative management and its two components, management science and operations
management, attempt to apply mathematic techniques to decision making process and problem
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solving. Mangers contributions have been facilitated by the tremendous increase in the use of
personal computers and integrated information networks.
The three major theories are actually complementary, not a contradictory. Each theory has
importance and value to offer. The key is to understanding how to use them effectively. Two
relatively recent additions to management theory, the systems and contingency perspectives,
appear to have great potential both as approaches to management and as frameworks for
integrating the other perspectives.
Management theories are implemented to help face these issues and to increase organizational
productivity and service quality. Combination of a number of theories, depending on the
workforce, purpose and workplace can lead to organization's success.

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