TOPIC TWO

• At the end of this topic a student should be able to learn;

• To define the term theory
• To state theories of management as presented by Fredrick Tailor,
Henry Fayol, Max Weber and Elton Mayo
• To explain the importance s of each theory of management
Definition of theory
• A theory is a principle that is formed to explain things,
phenomena, or a group of facts already validated by data.

• A theory is believed to be a speculative idea that tells how

things should be done. It is also referred to as a set of
organized and accepted beliefs that can act as a guiding force
for analysis.
 Theories of Management
• Management theories are a collection of ideas that
recommend general rules for how to manage an organization
or business.

• Management theories address how supervisors implement

strategies to accomplish organizational goals and how they
motivate employees to perform at their highest ability.
Benefits of management theories
• There are several reasons why leaders should study and apply
management theories, including:
• Increased productivity: Using these theories, leaders learn how to
make the most of their team members, improving performances and
increasing productivity.
• Simplified decision-making: Management theories give leaders
strategies that speed up the decision-making process, helping those
leaders be more effective in their roles.
Cont.…
• Increased collaboration: Leaders learn how to encourage team
member participation and increase collaboration in the workplace.

• Increased objectivity: Management theories encourage leaders to

make scientifically proven changes rather than relying on their
judgment.
 TYPES OF THEORIES MANAGEMENT
There are several types of management theories but for this module a
learner should learn four (4) types of theories management;
1. Scientific management theory as advocated by Federick W. Taylor.
2. Principles of administrative management theory as developed by
Henri Fayol,
3. Bureaucratic management theory as formed by Max Weber
4. Human relations theory as developed by Elton Mayo.
1. Scientific management theory as advocated by Federick W.
Taylor.

• Scientific management theory

• Scientific management, also often known as Taylorism, is a
management theory first advocated by Federick W. Taylor.
• It uses scientific methods to analyze the most efficient production
process in order to increase productivity.
• Taylor’s scientific management theory argued it was the job of
workplace managers to develop the proper production system for
achieving economic efficiency.
Cont.…
• There are four principles of Taylorism.
• Choose methods based on science:
• Use the scientific method to determine the most efficient way to
complete a task. Focus on increasing productivity and profits.
• Assign workers to tasks based on their natural skillset:
• Get to know your workers, discover what they’re good at, and place
them where their skills will be the most useful.
Cont.….
• Monitor your workers’ performance:
• Observe what your workers are doing while they are on the clock so
that you can quickly address any problems. If some workers are
confused or unproductive, it is up to their managers to step in and fix
the issue.
• Divide workloads appropriately between workers and managers:
• Make sure that managers understand how to plan and train workers
and that workers understand how to implement those plans.
2. Principles of administrative management theory as developed by
Henri Fayol,

• Administrative Management Theory was developed by Henri Fayol, who is

considered to be a founder of management theory. This theory considers all of
the many activities that a business must conduct. Management is considered a
primary business activity and this theory provides detailed guidelines for
managers.
• He believed that leaders had six main functions, to forecast, plan, coordinate,
command and control, and he developed principles that outlined how leaders
should organize and interact with their teams
• He suggested that the principles should not be rigid but that it should be left
up to the manager to determine how they use them to manage efficiently and
effectively
• He provides 14 principles of mgt
3. Bureaucratic management theory as
formed by Max Weber
• Max Weber was a German sociologist who argued bureaucracy was
the most efficient and rational model private businesses and public
offices could operate in.
• His bureaucratic theories influenced generations of business leaders
and politicians well into the 20th century.
• This theory states that there are six principles of bureaucracy,
including
six principles of bureaucracy as proposed by Max Weber.

• 1. Task specialization (division of labor). Weber felt that task specialization

promotes the timely completion of work at the highest level of skill.
• Tasks, therefore, in Weber’s ideal organization are divided into categories
based on team members’ competencies and areas of expertise.
• Employees and departments have clearly defined roles and expectations in
which they are responsible solely for the labor they do best.
• This is designed to maximize efficiency for the organization. Overstepping
one’s responsibilities, such as presenting new ideas outside of your
department’s scope, is generally frowned upon.
Cont..
• 2. Hierarchical management structure. Weber advocated that
management should be organized into layers, with each layer being
responsible for its team’s performance.
• Weber believed that each layer of management should provide
supervision to the layers below them while being subject to the
control of those above them.
• Thus, individuals at the top of the management hierarchy have the
most authority, while those at the bottom have the least power.
• This hierarchical structure clearly delineates lines of communication,
delegation and the division of responsibilities.
Cont..
• 3. Formal selection rules. In the ideal organization, Weber believed that
employees should be chosen based on their technical skills and
competencies, which are acquired through education, experience or
training – no other factors should be considered.
• And since workers are paid for their services, and services are divided
by job position, an employee’s salary is entirely dependent on their
position.
• Contract terms are also entirely determined by the organization’s rules
and regulations, and employees have no ownership interest in a
company.
Cont..
• 4. Principle of Formal Rules and Regulations
• The Formal Rules and Regulations in an ideal bureaucracy are the
guidelines that dictate how things should be done. The documents on
which these rules and regulations rest include manuals, directives,
handbooks, instructions, policies, etc. They provide a clear definition
of what needs to happen for an organization to function
appropriately.
Cont..
• 5. Impersonal environment.
• Bureaucracies require that everyone must play by the same rules and be treated
the same. Personal feelings should not interfere with organizational decisions
• The impersonal environment characterized by bureaucracies is designed to
promote decision-making that is based solely on facts and rational thinking.
• It prevents favoritism or nepotism as well as involvement from outsiders or
political influence, anything that could interfere with the mission of the
organization.
6. Achievement-based advancement.
• Weber felt that promotions within an organization should be based solely on
achievement, experience and technical qualifications. Personal favors,
relationships or personality traits should not factor into personnel decisions.
ELTON MAYO
• This theory was developed by Elton Mayo, who conducted
experiments designed to improve productivity that laid the
foundation for the human relations movement.
• It suggests that employee productivity and motivation can be
increased through positive social bonds in the workplace and
acknowledgement of the worker as a unique individual.
• It holds that improved working conditions (empowerment,
participation, positive treatment) lead to increased productivity.
Human relations theory
• Elton Mayo's management theory promotes the hypothesis
that workers are motivated by social and relational forces more than
financial or environmental conditions.
• It holds that managers can increase productivity by treating
employees as unique individuals rather than interchangeable cogs in a
machine.
PRINCIPLES
• 1. Treat employees well as individuals
• He recognised the importance of human beings in management. The social
and psychological needs of human beings cannot be ignored, if
management wants to enhance productivity.
• 2. Promote positive group values and relationships
• Mayo was of the view that informal relationships in the organisation are
more effective than formal relationships. People form informal groups to
give a bent to their feelings and seek guidance for action from such groups.
• In Mayo’s words, “An organisation is a social system, a system of cliques,
grapevines, informal status systems, rituals and a minute of logical, non-
logical and illogical behaviour.”
Cont..
• Social Man:
• Mayo developed a concept of ‘social man’. He said that man is
basically motivated by social needs and obtains his sense of identity
through relationships with others.
• He is more responsive to the social forces of the informal group
rather than managerial incentives and controls. He also related
productivity to a social phenomenon.
Cont..
• Non-Economic Awards:
• The earlier assumption was that workers will work more if they are
offered more monetary incentives. Taylor was the main proponent of
this approach. Elton Mayo said that the techniques of economic
incentives were not only inadequate but also unrealistic.
• He was able to show that human and respectful treatment, sense of
participation and belonging, recognition, morale, human pride and
social interaction are sometimes more important than pure monetary
rewards.
 TOPIC THREE
•MANAGEMENT TECHNIQUES
• A management techniques is a way in which a manager works to
fulfill their goals. Management style includes the way that a manager
plans, organizes, makes decisions, delegates, and manages their staff.

• It can vary widely depending on the company, level of management,

industry, country, and culture, as well as the person themself.
Factors Affects mgt techniques
• Internal factors include:
• The overall organizational and corporate culture of the company,
• policies,
• priorities,
• employee engagement,
• staff skill levels.
Cont..
• External factors include:
• employment laws,
• the economy,
• competitors,
• suppliers,
• consumers.
• These are factors that are outside of the control of the organization,
but will have an effect on both managers and employees.
TYPES OF MGT TECH
• There are three broad categories of management techniques:

• Autocratic, democratic and laissez-faire.

• Within these categories, there are specific subtypes of management

techniques, each with its own pros and cons.
Autocratic management techniques

• This type of management follows a top-down approach, with one-way

communication from bosses to employees.
• This is the most controlling of the different management styles, with
the management making all workplace decisions and holding all of
the power.
• Employees are treated as drones, to be monitored closely as they
perform within clearly defined perimeters.
Cont..
• Employees are not encouraged to ask questions, submit ideas, or
share their thoughts on improving processes, and are in some cases
actively discouraged from doing so.

• The subtypes of autocratic management techniques are

authoritative, persuasive, and paternalistic.
 1. Authoritative management style

• In this style, managers dictate exactly what they require their subordinates to do
and punish those who do not comply.

• Employees are expected to follow orders, not question the authority of

management, and perform their tasks the same way each time.

• Managers monitor the employees closely, micromanaging their performance

without placing trust or confidence that their employees can achieve their goals
without direct and constant supervision.
• These types of managers believe that without this supervision, employees will not
operate successfully.
• When to use this style: If decisions need to be made and executed quickly, for
example, in a time of organizational crisis, this management style can be used
Cont..
• Pros:

• This management technique allows quick decision making, and

creates clearly defined roles and expectations.

• With unskilled workers or large teams, setting clear and solid

expectations can allow workers to operate without uncertainty.

• Productivity will increase, but only when the manager is present.

Cont..
• Cons:

• The negatives of authoritative management techniques includes

• An increase in the dissatisfaction of employees,
• Higher turnover, resentment,
• A lack of professional development and employee engagement,
• The formation of an ‘us’ versus ‘them’ mentality between employees
and management.
• Innovation is stifled and inefficient processes will remain in place
 2. Persuasive management

• In this technique, managers use their persuasive skills to convince employees that the unilateral
decisions that the manager implements are for the good of the team, department, or organization.

• Rather than simply ordering employees to perform tasks, managers employing this techniques
would invite questions and would explain the decision-making process and rationale behind
policies.
• This can help employees feel as though they are a more trusted and valued part of the staff and
are involved in key business decisions, leading to lower levels of resentment or tension between
management and staff.

• When to use this style: This style can be used when you have more experience on the subject than
the team you are leading. In those cases, you are the expert.
• While it is helpful to explain your thought process, ultimately, you know best. It can also be helpful
when managing upwards.
Cont..
• Pros:
• Management can establish a higher level of trust between themselves
and employees, and employees will accept top-down decisions more
easily.
• Employees respond more positively to reason and logic than they do the
threat of punishment, and may feel less constricted than those managed
with an authoritative style.
• Cons:
• Employees will still chafe under the restrictions they are placed under,
and become frustrated that they cannot give feedback, create solutions,
or upskill in a meaningful way.
 3. Paternalistic management style

• In this technique, the manager acts with the best interests of their subordinates at
heart.
• Usually, the organization will refer to staff as ‘family’ and ask for loyalty and trust
from employees.
• Management using this technique will use unilateral decision making but will explain
to employees that the decision-makers are working from a place of expertise, and
thus, legitimacy.
• Decisions are explained to employees, but there is no room for collaboration or
questioning.
• When to use this style: The use of this style is heavily culture-dependent.
• In Western countries, there is less reliance on hierarchical structures, and employees
will be less accepting of the idea of a benevolent leader.
• Smaller companies may find success in this type of leadership, but it should be
avoided by larger organizations.
Cont..
• Pros:
• A paternalistic manager is focused on the welfare of their employees, and
will base their decisions on what is best for their staff.
• Upskilling and employee education are valued, leading to happier, more
skilled, more productive employees.
• Cons:
• Employees can become too dependent on management, leading to a lack
of innovation and problem-solving.
• There is a high chance of this style breeding resentment among
employees who do not believe in the ‘organization as family’ concept.
• Employees might find this style condescending and infantilizing
Democratic management technique

• In this technique, managers encourage employees to give input

during the decision-making process, but are ultimately responsible for
the final decision.
• Communication goes both ways, top-down and bottom-up, and team
cohesiveness is increased.
• This process allows for diverse opinions, skills and ideas to inform
decisions.
 1. Consultative management technique

• In this technique, managers ask for the opinions and thoughts of their team,
consulting the viewpoints of every member of their team.
• The manager will make the final decision, but they will consider all of the
information given by team members before they do so.
• This technique is often used in specialized fields, where staff are experts and
their input is needed for the management to make informed decisions.
• When to use this technique: This technique should be used when managing
teams with specialized skills or when the manager does not have as much
experience with the subject as the team does.
For example, a manager assigned to run a team of developers who are
creating a new SaaS would want to consult with their team often, to gain the
benefit of their experience.
Cont..
• This technique promotes a deeper bond between staff and management, and builds trust within
teams.
• Management grows with the team, as they learn from the ideas, opinions and experience of the
employees that they lead.
• Innovation and voicing opinions are encouraged, leading to better problem-solving.
• Cons:
• The process of consulting staff can be labor and time-intensive.
• If a manager is not skilled in the time management aspect of this process, they can easily get
bogged down.
• If there is an appearance of favoritism or bosses not listening to opinions, employees may become
resentful and distrustful of the manager.
• Excessive reliance on this style can lead to staff losing trust in their boss, as they will start to wonder
why they are always called on to help solve problems instead of management handling it as part of
their job.
 2. Participative management technique

• In this technique, managers and staff are all active members of the decision
process.
• Staff are given access to more information about the company and its goals, and
are encouraged to innovate solutions.
• Management seeks the thoughts, ideas and opinions of staff, works together
with staff to make decisions and then the company acts on them.
• When to use this technique: When implementing large changes in an
organization, especially one where employees are resistant to new concepts or
strategies, encouraging participation from staff will result in a more positive
outcome and less resistance to new policies.
Organizations that want to drive innovation, such as tech companies, will find
this style useful.
Cont..
• Pros:
• Employees feel as though they are valued by their management team and the
organization as a whole, and will respond with increased motivation and
productivity.
• The more they understand and connect with the organization’s goals, the
higher their engagement will be. Innovation is increased.
• Cons:
• This process can be a slow one, and there is a risk of staff with bigger
personalities steamrolling less assertive staff members, leading to conflicts and
resentment.
• In industries with trade secrets, letting staff have access to sensitive information
can be risky.
• If employees do not want to be involved in this type of decision making, they
can grow to resent managers who employ this technique.
3. Collaborative management technique

• In this technique, management creates an open forum for ideas to be

discussed extensively before making decisions based on majority rule.
Staff is empowered to take ownership of outcomes, which can lead to
increased engagement, innovation and creativity.
• When to use this technique: When a business wants to foster
innovation, drive collaboration, and engage employees, this technique
should be used.
Any organization that wants to increase engagement and trust,
especially in the face of large changes within the organization or
industry, should consider this technique.
Cont..
• Pros:
• Staff feels trusted, valued and heard by all levels of their management
team.
• They are inspired to put forth their best work, find collaborative
solutions to problems, and engage completely with the process.
• Open communication means that workplace conflicts are often solved
before real issues arise.
• Turnover is decreased when employees are engaged, and diverse
voices often lead to better solutions and outcomes.
Cont..
• Cons:
• As with other democratic management styles, this process can be
time-consuming.
• Majority rule can also not always be the best choice for an
organization, and if there is a decision that is not in the best interests
of the business, management will need to step in and change it,
which can breed resentment and mistrust.
 4. Transformational management
technique
• This technique of management is agile and growth-focused.
• Managers focus their efforts on pushing their staff to ever greater
accomplishments through encouragement, pushing them past their comfort
zones regularly, and consistently motivating their teams to raise their bar for
achievements.
• Managers work alongside with their employees, inspiring their team to ever
greater efforts by demonstrating their own work ethic.
• When to use this technique: This style is best used in companies that are in fast-
paced industries, or are anticipating a period of changes within the industry,
organization, or department.
This technique will help teams become more agile, flexible, and innovative while
responding to the outside or inside forces.
Cont..
• Pros:
• Innovation is increased, and employees will more easily adapt to
change, disruptions, or challenging projects.
• Creative thinking is encouraged, and problem-solving and product
development will benefit from the increased flexibility of the staff.
• Cons:
• If not used carefully, this technique will cause staff to burn out.
• Staff may end up spread too thin, worn out from constantly pushing
themselves, and unable to keep up with the pace.
5. Coaching management technique

• In this technique, managers see themselves as the coach and their

employees as the valued members of their team.
• The manager’s job is to develop and guide their team, putting their
team’s professional development at the forefront of their priorities. Long-
term development is valued above short-term failures in this style, and
the manager wants to promote learning, upskilling and growing in the
workplace.
• When to use this technique: This technique is useful when organizations
want to promote and develop talent from within. Industries with
competitive job markets would benefit from this technique, as it can cost
time and money to recruit the right candidates.
Cont..
• Pros:
• Employees feel valued, they know that they will learn and develop
within their roles, and are more likely to be engaged.
• Managers build a strong bond with their employees, who will in turn be
more likely to put forth their best work for their ‘coach’.
• Cons:
• This technique can lead to toxic environments, as staff jockey for
favored roles and development tasks.
• Too much focus on long-term development can leave short-term
projects without proper support.
Laissez-faire management technique

• In this technique, management takes a hands-off approach to

leadership.
• Staff is trusted to do their work without supervision, and they are left
to control their decision making and problem-solving.
• Management is present at the delegation and delivery stages of work,
but otherwise steps back and gives staff the freedom to control their
workflow and outcomes. Management is only involved during the
process if the staff requests their assistance
 1. Delegative management technique

• In this technique, the manager is only present to assign tasks, although they still
are responsible for tasks being completed successfully. Once the task is assigned,
then the employees are empowered to do their work as they see fit.
• After the task is complete, the manager steps back in to review the work and
give advice about how to improve future projects.
• When to use this technique: This technique is best used in organizations with
more decentralized leadership and where the team is much more skilled than
the manager in the tasks.
If the manager has no real experience in producing new cloud management
software, for example, they can step back, allow their team the freedom to
innovate, and offer support if needed.
Cont..
• Pros:
• Innovation and creativity are fostered by this system, especially in organizations with
highly skilled workers.
• Problem solving and teamwork are strengthened, as staff are given space to handle their
own issues and will work together to solve them.
• Job satisfaction may be increased in those who crave autonomy in their workplace.
• Cons:
• Without leadership, productivity may suffer.
• Teams can experience a lack of direction, focus, or uniformity.
• Poorly managed conflicts may flare up and breed resentment.
• Some staff may feel that the management is not contributing anything towards the
team’s success and become resentful.
 2. Visionary management technique

• In this technique, managers lead through inspiring their staff.

• Leaders explain their goals and the reasons behind them, convincing their team
to work towards executing their vision.
• Team members are motivated by their manager, then allowed the freedom to
achieve their tasks with minimal interference. Managers will check in from time
to time, but they trust that their shared vision will keep employees on track and
produce good results.
• Managers offer a lot of constructive feedback during and after the process to
assist their employees, and make sure to give praise liberally.
• When to use this technique: This can be a great technique in tech companies
who are looking to disrupt industries, nonprofits trying to innovate creative
solutions to problems, or companies who have a very strong sense of purpose.
An organization that wants to drive innovation can turn to this technique to
Cont..
• Pros:
• Engagement is heightened because staff believes in what they are creating and
are driven to complete tasks to the best of their ability.
• Employees are more satisfied, motivation is higher and turnover will be
lowered.
• Innovation is higher, and problem-solving can happen quickly within teams.
• Cons:
• Not all managers can be legitimately inspiring. It depends on the job, the
industry, the product, and the person.
• This is not a technique that can be faked, employees must actually be inspired,
or they will not perform as well.