Introduction


 The aim of business management is to find the most
efficient and productive ways of operating a
business. This usually entails finding strategies to
coordinate the different branches of a business. Each
business management type is determined by an
underlying management theory, which determines
the strategy and long term goals of the business. For
instance, a successful management theory provides
ways to coordinate the financial, marketing, human
resources and information technology of a company.
 Systems Management

 The systems management theory requires business
managers to view their company or organization as a
system as opposed to a monolithic structure. This
forces managers to reflect on how their decisions in
one aspect of the business, such as laying off
workers, will affect other parts of the company, such
as customer service. To do this, business leaders
divide the company into departments, sections and
subsections as part of an overall framework.
 Chaos Theory

 A growing number of business theorists view large
businesses as live creatures which are part of a
complex and erratic world. According to this view,
specific events are rarely ever controlled, and the
energy expended to manage the company must
grow as the business grows. Much like humans,
these trends continue growing, according to the
chaos theory, until the system becomes overly
complex, joins another complex structure and
continues to grow.
Freedom-Based Management
Theory

 The freedom-based management theory suggests
there is no reason why a management system should
be organized in a hierarchical structure where
employees are controlled and restricted by
management. This theory supports the use of fully
empowered employees that are more like
entrepreneurs and act in full freedom while still
functioning with accountability and responsibility.
 Contingency Management
Theory

 The contingency theory is based around the idea there is
no single right answer and that the best choices in a given
situation depend on numerous factors, which must be
considered. A company, according to contingency theory,
should take into account all aspects of a situation when
making a decision, including which type of management
system it chooses. For instance, a leader using
contingency theory may decide an autocratic and
hierarchical management system is the best when leading
soldiers into battle, but not necessarily the best if
managing a group of scientists.