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Management theories help to understand the various complex situations in the organisation. Managers are responsible for the performance of their members and they always try to motivate their team members. Professional use the specific management theory which best suits their company culture.
The scientific theory was developed by American mechanical engineer, Frederick Taylor. The theory explained that the fact that imposing people to work is not the finest way to achieve desired results. Taylor suggested streamlining the tasks as it helps to upsurge the productivity. According to him, money is the best motivator so he developed fair days’ work and fair day’s wages concept. The practice helps to improve employee and employer relationships.
The contingency theory was developed by Fred Fiedler. The theory emphasizes the fact that no one management methods suit various organisations. Internal and external factors affect the management approach. The contingency theory focuses on three variable including styles of leadership, technology, and size of organisation. The theory explained that the trait of a leader directly affects the productivity of the organisation. The leader should be flexible enough to adopt the dynamic situation.
Classical management theory is one of the oldest theories. The theory explained that employees have economic and physical needs. The workplace should be ideal for workers. The classical management theory indicates that complex tasks should be broken into smaller tasks. This will directly improve the efficiency and productivity of the company.
The theory believes that employees are motivated by financial incentives. The autocratic model is a crucial part of classical management theory. In this system the leader can take the final decision and he communicates the decisions to the high authority.
The theory was developed by Douglas McGregor. It is based on two contrasting concepts. The theory focuses on participative and authoritarian management styles. If the employees of one organisation are not showing passion for their work then it should implement the authoritarian style of management. When employees are enthusiastic and passionate about their work than the organisations should implement a participative management style.
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