Management Theories Report: Principles, Contributions, and Relevance

This report provides a comprehensive overview of key management theories, focusing on the contributions of Taylor, Weber, and Fayol. It delves into the principles of scientific management, bureaucratic theory, and Fayol's 14 principles, analyzing their impact on organizational structure and management practices. The report examines the evolution of these theories and their continued relevance in the modern business environment, highlighting how concepts such as standardization, formalization, and hierarchical structures, as well as the division of labor and management responsibilities, are still applied today. The analysis includes how these theories influence leadership, organizational efficiency, and the allocation of tasks and resources within contemporary companies. It serves as a valuable resource for students seeking to understand the foundations of management and its application in the real world.

Running head: MANAGEMENT THEORIES 0
MANGEMENT THEORIES

MANAGEMENT THEORIES 1
Table of Contents
Management summary:..............................................................................................................................1
Introduction:...............................................................................................................................................1
Management theories:................................................................................................................................2
Scientific management theories:.............................................................................................................3
Bureaucratic theory of management:......................................................................................................3
Fayol theory of management:.................................................................................................................4
Contribution of these theories in modern world:........................................................................................4
Taylor’s scientific management in modern times:...................................................................................4
Weber’s bureaucratic management theory in modern times:................................................................5
Fayol theory of management in modern times:......................................................................................7
Conclusion:..................................................................................................................................................8
References:..................................................................................................................................................9

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Management summary:
Management is the term that is very well known in day to day life. As far as the organisations are
considered, it has been analysed that management is the very essential and mandate aspect. It can
be defined as the concept that deals with aligning the objectives and the activities that needs to
be performed in order to achieve those objectives (Aswathappa and Reddy, 2009). There are
many theories that have been postulated regarding management by many theorists. Their work
has been appreciated by the management people as these theories are still being used by the
organisations for smooth structuring and functioning of their company. It is required to
understand the meaning of those theories and their relevancy to the modern world (Elkin,
Jackson and Inkson, 2007). The major theories that need to be studies are Weber’s theory, Fayol
theory and Taylor’s theory.
Introduction:
This is the report that focuses on the very important part of management that is management
theories. The report initiates with the discussion of management theories and their requirement in
the organisations of today and tomorrow (Wood, Zeffane, Fromholtz, Wiesner, Morrison,
Factor, McKeown, Schermerhorn, Hunt and Osborn, 2016). The discussion continues with the
arguments supported by some of the major theories such as scientific management theories of
Taylor, Weber’s bureaucratic theory and Fayol management theory. Taylor is the theorist who
suggested that scientific management and systematic structure is very important for the
organisations. Weber on the other hand suggested that formalisation is the basis of the
organisational success. Fayol at the same time has given 14 principles of management that needs
to be followed by the organisations. Evolution of these theories has supported them to have their
existence till now and the organisations are using the same in their management till today. The
later part of the report discusses about the same and examines the relevancy of these three
theories in the modern times of the organisations. These theories have been postulated in the

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early twentieth century and their presence in the structure and environment of modern
organisations suggest that these theories act as the foundation of management.
Management theories:
Theories can be defined as the viewpoints with which the individuals make the sense of all the
experiences they have in the world. It can be explained as the group of several concepts that can
be developed with continuous observation on a subject. As far as the management framework is
considered, there are many theories given by many theorists as per their understanding and
observation regarding management (Pugh and Pugh, 1971). These theories have evolved with
time according to the change in the management system and the culture of the organisations. It
has been identified that the theory of management has been evolved at the time of Second World
War. This is because, it is the time when the concept of industrial revolution developed and this
resulted in raising the aspects of human resource and importance of man-force resources and
them management. In terms of management, there are many principles that act as the
fundamental truths for management that discusses about the relationship of the two of more
variables involved. In the field of management, theories play a very important role because they
help in taking the management decisions in certain situations. Management theories are need to
be studied because they gives a proper framework to the management, they help in making
management techniques and decision and at the last help in maintaining the standardization in
the management processes (Cole, 2004).
Contemporary theories of management have been postulated in order to interpret and analyse the
dynamic nature of the organisational environment these days. Management theory with regards
to the management practices has evolved in the modern times. The first type of theory that has
been emerged in the twentieth century was the classical management theory. This theory
basically involves the concept of scientific management in which the alignment of tasks and the
people is focussed. This theory deals with matching the skills of the people with the tasks in
order to get the efficient results. This is the theory that focuses on developing the principles that
leads to creation of practices that are most efficient for the organisations. Later on, the theory of
behaviour has been postulated. This set of theories concentred on involving behavioural aspects

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of the organisation and the employees. These theories have evolved with time as per the changes
in the demands of the market and the nature of the organisations (George and Jones, 2015).
Many theorists have contributed their experiences and knowledge in order to postulate such
theories and three of them are Fayol, Taylor and Weber. The studies of all these theorists have
been briefly discussed below.
Scientific management theories:
The first theory of management that came into existence and gets the popularity is the theory of
scientific management. This theory was postulated by Frederick Taylor. He was the one who has
initiated the era of modern management by his work (Waring, 2016). He started his work in the
late nineteenth century and focuses on the fact that inefficient movements of workforce are the
reason of national loss. He is the one who believes in the concept of one best practice for
management (Shafritz, Ott and Jang, 2015). He argues that there should be a standard rule for
managing the organisation and the people in order to get the efficient and optimum results. He
suggested that allowing the employees to show their creativity ruins the standardization at the
workplace (Wagner-Tsukamoto, 2007). In addition it, he also argues that involving science in the
organisational management framework neither results in equal distribution of the work and thus
does nor pressurizes some of the employees to work and the allocation of the work should be
such that the task is allocated to the one who is best suited for the same.
Bureaucratic theory of management:
It is the theory of management that deals with formalization of the organisation. It has been
analysed that hierarchy is the basis of development of this theory. Weber suggested that the
organisations need to be formal in nature and has the strict hierarchy to be followed and each and
every level for the hierarchy have set of work and guidelines to perform their tasks. Several
principles have been developed by weber in order to formalize the organisation so that the
optimum results can be achieved (Du Gay, 2000). This theory was developed when Germany
was facing the industrial revolution phase. The first principle of this theory suggests that the
manager or the one who is at the higher authority owns the power of the organisation. This is not
because of his or her experience or knowledge but it is because he or she holds that position.
Thus, position is the sot important criteria for the level of involvement and the work an
individual performs in the company (Downs and Rand Corporation, 1967). A full hierarchical

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structure needs to be followed in the organisation and there should be a line of authority that
needs to be maintained. Weber suggested that the organisation should have the formal
informational flow from higher to lower authority and it should not break at any cost. Clear
specification of the roles and responsibilities of the position is also a major aspect of this theory.
Fayol theory of management:
At the same time when Weber was postulating his theory, Fayol was also working
simultaneously to give his own theory of management with the explanation of 14 principles of
management (Golden Pryor and Taneja, 2010). He believed that these 14 principles are very
much required to be there in the organisation in order to enhance the efficiency of the same.
Some of the principles that Fayola outlined have washed-out from contemporary management
practices, but most have endured. These principles have actually given birth to the modern
management and act as the foundation for the same. The changes and the modifications have
been made as per the requirements of the modern conditions of the organisations. The principles
of Fayol collectively suggested that it is required to develop the organisation which has a
hierarchical system in which the work is divided evenly. Moreover, it also suggested that the
organisations should have policies of teamwork, remuneration, scalar line of communication,
unity of command, order, organisational interests etc. all these principles have been postulated in
order to make the organisational management easy by including such principles in the practices
of the companies. Fayol has involved almost every possible element in its theory except the
element of behaviour which has been included in the later postulated theories. .
Contribution of these theories in modern world:
Taylor’s scientific management in modern times:
Management is the most essential and important part of the organisations these days.
Management is the concept that deals with achieving the aims and goals of the organisation in an
effective manner by conducting set of activities and practices. Since the time, humans are
working together in the organisations, it has been analysed that it is required to manage the

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people for the smooth functioning of the companies (Taneja, Pryor and Toombs, 2011). Taylor
theory of scientific management is one of those theories of earlier times which are still being
practiced in a modified form by most of the organisations. Whether it is the car company or the
hospitals, everyone is using this approach of scientific management for better and efficient
functioning of the organisations. There are four major principles of scientific management that
are still being used in modern management. The first principle is “rule of thumb” which is about
following the scientific methods for performing the task at the organisations. It has been
analysed that in order to achieve the organisational goals, it is necessary for the organisations to
work scientifically (Kanigel, 2005). The second principle argues that it is required to match the
job and the skills of the person before assigning the jobs. The third principle is regarding the
supervision of the workers by monitoring their performance. This is also the practices that have
been used by the people in modern organisations (Merkle,1980). The last principle is related to
the allocation of work between the managers and workers in such a way so that managers can
also play their part as a planner and trainer.
As far as the first principle is considered, it is used in the modern day companies in a way that
the management of the firms dissociate the tasks into several activities and then these activities
are divided amongst the employees as per their skills. The division of work as per the skills of
the employees falls under the second principle which is also used by the companies. The
divisions of various departments such as finance, marketing, HR etc. is the perfect example of
usage of this principle in present day companies (Taylor, 1914). In most of the organisation these
days, supervision is one of the most important factors to be considered in management. Just
because the departmentalisation is done that does not mean that the employees working in such
departments does not require monitoring and support. Thus leadership and monitoring are the
two factors that are again followed in the modern organisations as well. This is stated in the third
principle of Taylor (Taylor, 2004). As far as the last principle is considered, it has been analysed
that it talks about the division of work as per the position. Even today, the companies believe in
dividing the work between the employees and the managers (Locke,1982). Managers are made in
order to plan and train the employees so that the team can be managed properly.

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Weber’s bureaucratic management theory in modern times:
Bureaucratic management by Weber suggests that there should a formal structure of the
organisation then only the organisation can perform effectively. The formal organisations are
based of hierarchical structure and the roles and duties of the employees are clarified for each of
them (Weber, 2009). Weber expanded the theory of Taylor and postulated his own theory that
focuses on hierarchical structure, line of authority and formal line of communication as well. It
has been suggested that the organisations that follow this theory concentrates on marinating the
formal environment in the organisation and develop standard process to perform the routine tasks
(Rubinstein and Maravic, 2010). All these tasks are still performed in the new organisation as
well. Modifications have been done in the principles of Weber as per the organisational
environment. This is because, in today’s organisations, it is required to concentrate on other
things also such as human behaviour, emotional aspects etc. some of the organisations that has
been witnessed of using this theory are Olivine, National foods etc.
Job specialisation is one of the most important characteristic of this theory which is utilising in
modern organisations. It is the characteristic that suggests that the jobs should be broken down
into simpler tasks that can be performed by various employees. Olivine is the company that uses
this theory and dissociates the jobs into simpler tasks. In this organisation a person which is
doing the job of making the soap does not have idea about making the soap. This idea of job
specification helps he organisation to be more effective in performing the particular tasks.
Hierarchy and authority is another important characteristic of the theory that has been followed
by almost all the organisation. Whether the organisation does not follow the strict rule of
communication between the organisations and allow the executives to contain the management
level employees but the hierarchy always remains the important part of the organisational
structure (Dalkir and Beaulieu, 2017). This means that each level has it upper level to control its
activities. Roles and responsibilities of all the employees at all the levels are specified. In the
organisations that are related to Army and Police, it has been analysed that continuous hierarchy
and structure has been followed with proper line of command. Every position in the hierarchical
structure has their own rights and duties. This helps the organisation to manage the employees
and have clear idea about the authority of the person has in the company. Moreover, this theory
also deals with formal and written record maintenance. Almost all the organisations believe in

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keeping records of the action and the plans they implement in the organisation. Earlier those
records were maintained on paper but now because of the technological advancement the way of
keeping such records have changed but maintaining the records is still same. Maintaining records
helps in accountability of the person who is performing a certain task in the organisation. It has
been analysed that all the policies and procedures that are followed in the organisation are
recorded and written somewhere so that it can be used at the time of requirement.
Being impersonal is another characteristic of bureaucratic theory of management. This is the
characteristics that have not been followed by most of the organisation these days. This is
because behavioural concern and emotional consideration is very important these days. It is the
characteristics hat suggests that the managers should have professional relationship with the
employees and they should be impersonal to the while the modern management believes in the
activities and the environment of the organisation that supports flexibility and better interaction.
As per this theory, impersonality in the organisation helps in more efficient work without
biasness. Weber believes that organisation should be right in their structure which is not by most
of the companies in modern times. This is because flexibility is the approach that has been used
by the companies.
Fayol theory of management in modern times:
Henry Fayol is the theorists who have given 14 principles of management in order to be followed
by the organisations. All over the twentieth century and even the organisations today are
following these principles as per their convenience and their organisational structure. His ideas
and theories are still much popular. The businesses and the companies today believes in many
factors that the managers of the company needs to consider in order to perform task and
functions (Wren, Bedeian and Breeze, 2002). These factors help in controlling the function and
the activities at the organisation. Fayol suggested around 14 principles which are still being used
by the management of many organisations.
In order to understand the relevancy of Fayol’s 14 principles in today’s management, it is
required to comprehend the same. The first principle of Fayol is about division of labour. It is the
principle that suggests that the decision of the work or labour in the organisation should be equal
and in such a way so that the efficient result can be achieved out of it. Work specialization is
given as the solution for the same (Wood and Wood, 2002). This is the principle that has still

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being used by the companies in which different teams work for single project and their work is
specialised. The second principle is about the authority. It is the principle that focuses on the
power of the managers over the employees to order them which needs to be obeyed. Even if the
organisation these days are becoming flattened but order and power are still in the hands of the
management of the companies and the policies and decision made by them should be obeyed by
each and every employee. It has been modified in the way that employees also have power to
question the same or have the right to share their views but the ultimate decisions needs to be
observed by all. Discipline is the third principle which is very common and needs to be followed
in every sector. The fourth principle is unity of command. This suggests that there should be one
superior whose orders are need to be obeyed by an employee. This is a little bit contrast to what
happens these days in some of the organisations. This is because every organisation and different
structure and these are very much complex (Smith and Boyns, 2005). There can be two
authorities over one employee at times because of the needs of the project. The subordination of
the organisational interest over the individual interest is another principle that has been
postulated by Fayol. This suggests that the interest of the organisation is very important and
preferred over the interest of the individuals working for the firm. These days, the scenario is
little different as the organisation give equal importance to the individual’s interests as well.
Remuneration is the important part of any organisation that is being considered in the next
principle of Fayol. It has been suggested that it should be fair for all and this is the mandatory
policy in all the originations these days. Centralisation is another important aspect to be
discussed. This is about making the decisions of the organisation from a centralised unit which is
accepted by today’s organisations as well but it is modified in the way that the views of the
subordinates are also considered in the same. If the organisation has to perform effectively, it is
required to have proper communication. If there is no communication between the employees
and the managers then it becomes difficult to perform efficiently. This is another principle of
Fayol about scalar chain hat argues about better information flow from one end to another.
Another important principle is order which means there should be a structure in the organisation
and this principle is followed by the modern management as well. Espirit de corps means team
work. The organisation has to group together in the teams so that the work can be done
effectively. Other principles of Fayol are equity, stability and initiative which are very common
characteristics of each and every organisation whether it is from earlier times or of modern times.

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The overall discussion suggests that almost all the principles of Fayol have been implemented by
the today’s organisation either in their pure form or in modified form.
Conclusion:
It has been concluded from the report that contemporary theories of management have been
postulated in order to interpret and analyse the dynamic nature of the organisational environment
these days. Management theory with regards to the management practices has evolved in the
modern times. The first type of theory that has been emerged in the twentieth century was the
classical management theory. This theory basically involves the concept of scientific
management in which the alignment of tasks and the people is focussed. Weber suggested that
organisations should develop formal structures while Fayol has given 14 principles. These
theories have evolved with time as per the changes in the demands of the market and the nature
of the organisations. Many theorists have contributed their experiences and knowledge in order
to postulate such theories and three of them are Fayol, Taylor and Weber. All the theories of
these theorists are still showing their presence in the organisation’s policies and structures in the
present times.

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