Management Theories and Practices: Evolution and Impact Analysis

This report provides a comprehensive overview of management theories and practices, tracing their evolution from the pre-industrial revolution era through the industrial revolution and into the post-industrial period. It begins by defining management theory and practices, then examines management practices before the industrial revolution, highlighting the role of merchant and craft guilds and the rise of specialization. The report then delves into management practices during the industrial revolution, focusing on classical management theories such as bureaucratic, administrative, and scientific management. The contributions of each theory are discussed. Finally, the report explores management theories after the industrial revolution, including neo-classical theories, Maslow's hierarchy of needs, Herzberg's two-factor theory, system theory, contingency approach, and human relations theory. The report analyzes each theory's principles, contributions, and impact on business management, providing a valuable resource for students studying leadership and management.

Management theories
and practices

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Management theory refers to a concept that incorporates management strategies, tools or
frameworks which provide guidelines which can be implemented in an organization. Hence,
management theories can be described as a collection of ideas that pertains general rules
regarding ways of management of business operations. Management practices can be defined as
a working method that are utilised by managers of an enterprise for enhancing its efficiency and
productivity level (Christensen, Sandholtz and Olsen, 2019). This report is based on evaluation
of management practices of business in context to industrial revolution. It covers demonstration
of management practices evaluation prior to industrial revolution. Further, management practices
at the time of industrial revolution is explained. Practices of management post industrial
revolution is also demonstrated.
MAIN BODY
Industrial revolution refers to a transition of procedures of manufacturing in an organization
from labour intensive productions to incorporation of machineries for the same. It indicates rise
of factory system which is mechanised. Industrial revolution pertains high impact on activities of
business.
Management practices before industrial revolution: Prior industrial revolution,
management practices were not incorporated or focused much in an organization. Here, people
that were engaged in commerce formed groups that is termed as merchant guilds. In this era,
organizations of craft guilds were through regulations (Dholakia, Dholakia and Chattopadhyay,
2018). Guilds limited the supply of labours by controlling of conditions regarding entrance into
crafts. Regulation of working conditions were incorporated by defining tools and techniques,
wages of labours, as well as hours of production process. This intense specialization era was
stated by countermovement regarding amalgamation of various crafts. Here, tendency of growth
in market was reflected and a desire of expanding abilities of trading was incorporated in
enterprising masters. This comes up at a cost of handicraft functions. Craftsmen were highly
dependent on traders, while masters or traders tend to retain craftsmen as a wage worker for
retaining high amount of profit from growing market. This leads to rise in master-ship and
reduction in craftmanship. This comes up as a struggle for labour class. As companies are highly
focused on enhancing economies of scale by business by improvising level of output. This
1

ensures improvement in profit generating capacity of a firm. Due to this reason, companies, for
example Unilever initiated increment in production of factory products. It serves as a reason for
rise in conflicts and issues in working staff of a company as pressure on workers improved.
Management practice during industrial revolution: industrial revolution refers to a
period when economies or business operations have shifted rapidly from handicraft or labour
based manufacturing to machine-based manufacturing. In United Kingdom, industrial revolution
began in 18th century. Management practices during the time of industrial revolution is evaluated
on the basis of ‘Classical theory of management’. Types of contingent theory are stated below:
Bureaucratic management: This theory was introduced by Max Weber in the year 1915.
Bureaucracy refers to a specific form of an enterprise which is defined by labour division,
complexity, professional management as well as hierarchical management control. Two essential
elements of weber’s theory are organizational hierarchy as well as rules-based management. It
emphasizes on requirements of an organization for the purpose of functioning on the basis of
professional and hierarchical management control (Haski-Leventhal, 2018). Hierarchy, division
of work, rules and procedures, records, interpersonal relationships, and administrative class are
some features of bureaucratical theory of management. Enhancement of business efficiency can
be stated as a contribution of bureaucratic management theory. Max Weber states that
bureaucracy serves as a most efficient as well as rational model for operations of business. This
theory of weber prioritizes efficiency factor. While considering contributions of this theory, it
can be stated that bureaucracy management theory enables removal of inefficiencies in a firm
and it undermines culture of patronage. Further, this structure helps in creation of more job
security to employees and improvises their work life balance. In bureaucracy theory, specific
roles as well as duties are assigned which enables managers to effectively supervise business
activities. Apart from it, this theory fosters team-based environment in an enterprise. Overall, it
enhances specialization in a firm and promotes cost efficiencies as well as problem solving in a
business.
Administrative management theory: It indicates principles that can be utilised by
managers for the purpose of coordinating internal activities of a business. Henri Fayol developed
this theory of management. Work stoppage was observed by Fayol and interpreted it to be a
failure of management. As per Henri Fayol, management practices play a crucial role for the
purpose of driving productivity as well as efficiency in an organization. In accordance to Fayol,
2

operations of business can be divided in six activities, that are, technical, commercial, financial,
security, accounting, and managerial. Further, five management elements are planning,
organizing, commanding, coordinating and controlling. Contributions of this theory in business
is that administrative management theory improvises productivity level of an enterprise,
facilitates business to acquire its goals, improvises satisfaction level of customers as well as
employees, and ensures healthy financial situation of business (Mason, Kjellberg and Hagberg,
eds., 2018).
Scientific management theory: This theory was introduced by Taylor and its aim is to
improvise economic efficiency as well as productivity level of labours of a business. Industrial
revolution encouraged development of new approaches for increasing productivity or efficiency
of working staff. Taylor propounded that it is required to develop a scientific way of job
development and hence, workers are required to be trained for performing job in a scientific
manner. This classical theory of management is formulated on a belief that workers pertains
physical as well as economic requirements. It recommends centralization of leadership and
focuses on maximization of profit. There are four scientific management principles that are
training, supervision, differential rewards as well as study of time and motion. Reduction of
production costs, labour division, dispute avoidance, increment in wages and facilitation of
better-quality products are some contributions of scientific management theory.
Management theory after industrial revolution: Neo-classical theory of management
can be defined as an extended version for classical theory. It includes behavioural sciences in
activities of management. In accordance to this theory, enterprise is a social system performance
of which is highly affected by actions of human (Schmidt, 2017). This theory states that an
enterprise incorporates combination of informal as well as formal organizational forms. In
relevance to contributions of neo classical theory, it can be noted that neoclassical management
theory enables motivation of workforce on evaluation of their personal, emotional as well as
social aspects.
Maslow’s motivation theory: This theory is proposed in a year 1943 by Abraham
Maslow. This motivational theory comprises five tier model that evaluates human needs at
different hierarchical level. Physiological, safety, love or belongingness, esteem as well as self-
actualization are components of human needs which are analysed in this model. Here,
physiological needs refers to biological requirements for surviva of human. For example, food,
3

shelter, cloth etc. Further, safety needs indicates requirement of an individual for security as well
as safety. Example of safety needs are financial security, health care, emotional security etc.
Once safety needs of a person is fulfilled, than next concern for them is needs of love or
belongingness. It can be explained as a level of hierarchical model of Maslow theory where
individuals are concerned towards requirement for belongingness or interpersonal relationships
(Sheng, 2018). It involves trust, friendship, etc. Fourth level of Maslow’s theory of motivation is
Esteem needs. This need is classified in two different categories that are esteem for oneself, for
example, mastery, dignity etc. and another is desire for gaining reputation which involves status,
prestige etc. further, highest level of Maslow’s hierarchy is ‘self-actualization’ needs. It indicates
realization of one’s potential which leads to self-fulfilment for seeking personal growth of an
individual. Contribution of Maslow’s theory is that it provides perspective insight to nature of
human. It is an effective approach which facilitates motivation of working staff after industrial
revolution by enabling identification of similarities as well as qualitative differences.
Herzberg two factor motivational theory: This theory argues that two factors can be
adjusted by an organization for influencing workplace motivation. Motivators and hygiene are
these two factors. Former states encouragement of employees for working hard while later
encourages employees for working hard. On the other hand, absence of hygiene factors
demotivates employees which negatively hinders their productivity level. Factors of motivators
includes achievement, recognition, responsibility, advancement, growth, and working on itself.
Apart from it, factors of hygiene involve policies of company, supervision, relationships,
working conditions, status and security. On analysis of consideration of hygiene two factor
theory, it is evaluated that two-factor theory enables elimination of jo hygiene stressors, boosting
of job satisfaction, job enrichment, job enlargement as well as empowerment of employees.
System theory: It can be defined as a dominant theory of organization in management. It
involves various activities such as monitoring of inputs, outputs, evaluation of feedback loops
and throughputs for making required changes in a business for increasing effectiveness of an
enterprise and achievement of goals. It contributes in business by helping in identification of
problems as well as exciting opportunities (Sheng, Sheng and Levine, 2018). It offers potential
ways for innovation and development of creativity and productivity in a firm. It provides unified
direction to business by interrelating and integrating systems at various levels. It provides
holistic view of an enterprise and emphasizes on its adaptive nature. System spproach fosters a
4

framework for the purpose of effective interaction of organizational parts which fosters
attainment of business goals. System approach analyses firm as a dynamic as well as adaptive
entity. It synthesizes theories of classical and behavioural into a framework for solving
managerial problems.
Contingency approach: This theory of management suggests that most adequate or
appropriate management style is highly dependent on situational context. Hence, adoption of
rigid management style proves to be inefficient in longer term. Contingency theory proves to be
beneficial for enterprises as it pertains potential of learning from situations and utilizing such
lessons for influencing future management for similar situations. Therefore, this theory evaluates
immediate contingent circumstances. Overall, it can be stated that idea on which contingent
theory of management is based is that no single and best suitable way exists for management of
business activities. It is of dynamic nature, hence, enables changes in accordance to business
situations. Contingence management theory helps in designing of organizational structure and
planning of systems for information decision.
Human relations theory: This theory was formulated by Elton Mayo and Mary Follet
Parker. In this theory, role of behaviour of a human is determined in context to production. It
also highlights importance or requirements of communication between management team of
business and its workers (Wang and Bain, 2016). Human relations serve as an integral part of an
entity and hence, understanding of skilled as well as theories of human relations comes up as a
key factor for success of business. Researched belief of human resource management theory is
that supportive and effective teams of human resource facilitates development and growth of
company. In accordance to theory of human resource management, concern on managers of an
entity must be on organizational behaviour analysis which indicates interaction of an individual
with an organization.
CONCLUSION
From the above report it can be concluded that management theories and practices
address supervisors or decision makers of a firm regarding implementation of effective strategies
for accomplishment of organizational goals. Concepts are applied by leaders from different
theories of management working culture of business. Management theories work as a beneficial
framework for the purpose of leading teams incorporated in a workplace in an adequate manner.
5

REFERENCES
Books and Journals:
Christensen, R., Sandholtz, K. and Olsen, J., 2019, July. Using the Lens of the Professions to Examine Management
Theories of Sector. In Academy of Management Proceedings (Vol. 2019, No. 1, p. 19054). Briarcliff
Manor, NY 10510: Academy of Management.
Dholakia, R. R., Dholakia, N. and Chattopadhyay, A., 2018. Indigenous marketing practices and theories in
emerging economies: Consumer behavior and retail transformations in India. Journal of Business
Research. 86. pp. 406-415.
Haski-Leventhal, D., 2018. Strategic corporate social responsibility: Tools and theories for responsible
management. Sage.
Mason, K., Kjellberg, H. and Hagberg, J. eds., 2018. Marketing Performativity: Theories, practices and devices.
Routledge.
Schmidt, J., 2017. Effective Management of Creativity and Innovation in Education: Theories and Best Practices.
In Handbook Of The Management Of Creativity And Innovation: Theory And Practice (pp. 117-132).
Sheng, Z., 2018. Mega Infrastructure Construction Management Theories: Overview. Fundamental Theories of
Mega Infrastructure Construction Management. pp. 49-75.
Sheng, Z., Sheng and Levine, 2018. Fundamental theories of mega infrastructure construction management. New
York: Springer.
Wang, V. C. and Bain, B., 2016. CLOSING THE GAPS BETWEEN THEORIES AND PRACTICES IN
SCHOOLS AND ORGANIZATIONS. Educational Leadership and Organizational Management:
Linking Theories to Practice. p. 81.
6