2. Modern management Practices and Issues involved
• Understanding and practice of management theories
propounded so far are of great importance in the
success of organizations.
• However, this requires that we have a good idea
about the various management theories put forth
because the management practices are actually
derived mainly from the theories.
• As we know, the first management theory was
propounded by F.W Taylor in early 20th century and
subsquently a number theories were forwarded by
various people highlighting different aspects.
3. Different management theories at a glance
1. Scientific management theory:(F.W.Taylor)-
Worker’s ability could be increased thru’
scientific methods like time and motion
studies or increasing their pay.
2.Administrative management theory:(Henry
Fayol)- known as the father of Modern
Management Theory.
Recognized the need for classifying-
i.activities of business ii.functions of a
manager iii.principles of management to
manage an organization effectively
4. 3.Bureaucracy Theory(Max Weber) –
Emphasized on the formal structure of the
organization.
4.Behaviourial Theory(Elton Mayo)-
Carried out Hawthorne experiments to state
that work performance depends more on
work condition/environment and informal
groups.
5. Modern Theories:
i)QuantitativeTheory(William Churchman)-
Emphasis on application of mathematical
models for problem solving.
5. ii) Systems Theory(Kast,Rosenzwig,C.Barnard)-
Organizations are open systems with sub
systems which interact with each other and
external environment.
iii)Contigency Theory(Joan Woodword and
others)-Application of managerial practice
depends on situation;no bestway of doing
things.
iv)Operational Theory(Koontz and Heinz
Weihrich)- draws the best out of different
theories to do a particular job.
6. Management Practices
• Modern management paractices are drawn from the
theories discussed earlier. While applying the
theories in practice some modifications are essential
to take care of the nature of the
organlzation,situation prevailing, and certain other
factors.
• It is commonly observed that the basic 5
management functions-
planning,organising,staffing,leading and controlling
enunciated by Fayol are universally used by
organizations though with some variations.Further,
the concept of delegating authority with
responsibility is well practised.
7. • Similarly,modern organizations understand
and apply the Behaviourial theory to improve
the performance of employees giving better
work environment,motivating employees thru’
group dynamics and social closeness.
• Modern management practices are not
limited to applying any specific management
principle only but combining all that will help
the realization of the company’s objectives.
• The most successful organizations are those
who follow management practices that not
only lead to profits and growth in the long run
but also create a very positive public image.
8. • Ultimately, organization’s management
practices should lead to acquiring competence
and effectiveness in the following key areas;
a.Problem solving
b.Administration
c.Human resource management
d.Organizational leadership
The basic idea is organizations follow
management practices that best suit them in a
given situation bacause various factors change
over a period of time.
