Management Theories

Schools of Management


The emphasis was on trying to find the best way to get the most work done by examining how the work process was actually accomplished and by scrutinizing the skills of the workforce.

The classical scientific school owes its roots to several major contributors, including Frederick Taylor, Henry Gantt, and Frank and Lillian Gilbreth.


Frederick Taylor


often called the “father of scientific management.” Taylor believed that organizations should study tasks and develop precise procedures. As an example, in 1898, Taylor calculated how much iron from rail cars Bethlehem Steel plant workers could be unloading if they were using the correct movements, tools, and steps. The result was an amazing 47.5 tons per day instead of the mere 12.5 tons each worker had been averaging. In addition, by redesigning the shovels the workers used, Taylor was able to increase the length of work time and therefore decrease the number of people shoveling from 500 to 140. Lastly, he developed an incentive system that paid workers more money for meeting the new standard. Productivity at Bethlehem Steel shot up overnight. As a result, many theorists followed Taylor's philosophy when developing their own principles of management.


Taylor devised four principles for scientific management theory, which were:


1. The development of a true science of management,


2. The scientific selection and training of workers,


3. Proper remuneration for fast and high-quality work


4. Equal division of work and responsibility between worker and manager


School of Human Relations


Elton Mayo founded the Human Relations Movement. Experiments undertaken by Mayo took place at the Hawthorne plant in the USA during the 1930s. His work illustrated that if the company or managers took an interest in employees and cared for them, it had a positive effect on their motivation. When managers took a greater interest in employees they felt more valued and empowered. His work also showed that employees often work best in teams. He also showed that they were more motivated if they were managed and consulted more.


Managers have responsibility for motivating individuals and their teams. Important elements of this include:

• Communicating and explaining the ARM vision, values and strategy to all team members so everyone is working to the same level.
• Providing appropriate training and induction for new employees as well as coaching for all in order to develop skills, confidence and self-reliance.
• Carrying out one-to-one meetings and employee reviews to assess performance and set personal and team objectives.

• Putting in place succession planning for the team and manager roles to ensure long term performance.

Personal development is a key HR strategy at ARM. Regular reviews encourage individuals to reflect upon the contributions that they make whilst providing feedback and support that enables them to develop their professional capability.


System Approach

The major features of the approach to the study of management may be summed up as under:

1. A system consists of inter-related and interdependent parts.

(2) The approach emphasises the study of the various parts in their inter-relationships rather than

in isolation from each other.

(3) The approach brings out the complexity of a real life management problem much more sharply

than any of other approaches.

(4) The approach may be utilised by any of the other approaches.

(5) The approach has been utilised in studying the function of complex organisations and has been

utilised as the base for new kinds of organisation.