Understanding business organisations with reference to management theories – Unit
Summary
The Management theorists of the past provide valuable insights into current business
practices
The classical-scientific theorist main contribution was the use of the scientific method to
determine the one best way of doing things. They:
Were particularly effective in increasing productivity in manufacturing businesses
Gave insights into the managerial functions of planning, organising and controlling
Put an emphasis on the division of labour and organised people to departments
Suggested a hierarchical pyramid structure to organise the business with small spans of
control and a rigid chain of communication
Supported a leadership style that was highly autocratic
The behaviourists focused on human and organisational behaviour, relationships,
motivation and cooperation (the scientific management theorists treated people as
machines). They:
Looked at organisations in terms of group behaviour and team effort rather than individual
performance
Saw the role of management was to harmonise and coordinate the efforts of all people in
the organisation
Had a human relations view of management
Had a leadership style that was more democratic and encouraged participation in
decision-making by workers
Supported a flatter organisational structure based on teams
The political theorists contributed to our understanding of power and authority as it
affected management interaction with the various stakeholder groups. They recognised
that:
The structure of a business as a coalition of stakeholders
Groups of stakeholders have different views on the objectives of a business
Managers have to identify strongly held views of stakeholders and consider them when
they developed strategies
The classical, behavioural and political approaches to management have their strengths
and weaknesses:
Classical treated people as machines although they significantly improved productivity at
