1.3 Theories of Management

Experts have presented different ideas for the successful running of organization. These ideas are called as theories of management. Different theories of management are as under:

1. Scientific Management Theory

This theory was presented by Frederick W. Taylor. He gave the idea to run the organization in scientific way. The principles of this theory are:

• All work should be done in limited time. The work done should be measured accurately. This aims at how a piece of work could be done efficiently.
• Management should take the responsibility for planning the work. Workers should be made to execute the task.
• Management should scientifically determine the best methods and should train the workers accordingly.
• Management should be trained and should be taught to apply scientific principles of management and control e.g. in selection and training of workers.
• Wages should be according to output.

This theory aimed at lowering the unit cost by increasing the efficiency of management. It is rigid and focused on discipline, high concentration on job and strict incentive pay system.

2. Administrative Management Theory

This theory was presented by Henri Fayol. He focused his attention on manager rather than worker. He emphasized the training of the managers for improving the organization. He defined administration in terms of five functions which are:

• Planning
• Organizing
• Commanding
• Coordinating and
• Controlling