Management

Development of Management Theories

Why Management Theory?

A Theory is a coherent group of assumptions put forth to explain the relationship between two or more observable facts and provide a sound basis for predicting future events.

Theories are perspectives with which people make sense of their world experience.

A theory, by definition, has boundary; once we are aware of it, we ask ourselves if there are other alternative ways of looking at the fact.

Early Thinking about Management

Sun Tzu: The Art of War China, 2000 years ago 1. When the enemy advances, we retreat; 2. When the enemy halts, we harass[1]; 3. When the enemy seeks to avoid battle, we attack; 4. When the enemy retreats, we peruse.

Niccolo Machiavelli – 1531 1. An organisation is more stable if member have the right to express their differences and solve their conflicts within it. 2. While one person can began an organisation, it is lasting when it is left in the care of many and when many desire to maintain it. 3. A weak manager can follow a strong one, but not another weak one and maintain authority. 4. A manager seeking to change an established organisation “should retain at least a shadow of ancient customs.”

Classical Theories:

The classical theories represent departure from the traditional management. The 18th and 19th centuries' industrial revolution necessitated the need for systematic thinking on how people and resources should be managed. The modern factories and mass production could no longer be effectively managed by the traditional ways. Thus, thinkers like Fredric W. Taylor (1856-1915), Henry L. Gantt (1861-1919), and Frank and Lillian Gilbreth (1861-1924, 1878-1972) started to devote their time and energy to thinking, designing and experimenting on new theories and practices of management. The classical management theories are the outcomes of these intellectual efforts. The classical theories are further divided