Management was developed along with human civilization.

Once people started to live in family

unit and society, they required management. Family is taken as the basis of development of
management principles and techniques in traditional era. Even today we are using such
principles in the organizations. Today, management has many principles and well developed
literature. Most of these literatures were developed in the twentieth century. Many scholars and
practitioners have contributed in the development of different management perspectives.

The Classical Theory

Classical perspectives are those which were propounded earlier. These perspectives concern
with efficiency and productivity through the one best way universally applicable management
principles and formal relationship based on hierarchy of job. This is traditional theory which
represents scientific management theory, administrative management theory and bureaucratic
theory.
Scientific Management Theory: This theory is developed by Frederick Winslow Taylor. This
theory focuses on job and states that productivity can be improved endlessly through the use of
scientific principles. Taylor wanted to solve the problems of low quality, low productivity and high
wastage. For this, he suggested that every job should be done scientifically to solve these
problems. Additionally, he emphasized on the need of hiring on the basis of technical
qualification and training workers them to increase specialization, time and motion studies, use
of differential piece rate wage systems, need of standardized tools and equipment’s and enough
rest to reduce fatigue.
Principles of Taylor's Scientific Management: Scientific management is the art of knowing
exactly what is to be done and how it is to be done. Taylor's scientific management concludes
following principles:
• Science, not rule of thumb
• Harmony, not discord
• Cooperation, not individualism
• Maximum output in place of restricted output
• Development of individuals for their greatest efficiency and propensity
Administrative Management Theory: This theory is propounded by Henry Fayol who was
mining engineer profession. He used administration in the management first time. This theory
focuses on universal application management principles, tools, functions and skills.

Principles of administrative management theory

1. Authority and Responsibility
2. Unity of Command
3. Centralization
4. Order
5. Stability of Tenure
6. Subordination of Individual Interest to General Interest
7. Division of Work
8. Discipline
9. Unity of Direction
10. Scalar Chain
11. Remuneration of Personnel
12. Equity
13. Initiative
14. Esprit de Corps
The Bureaucratic Theory: This theory was developed by Max Weber who was a German
sociologist. According to him the ideal model for management is the bureaucratic approach
which ensures efficiency and effectiveness. He described the principles of bureaucracy in his
book titled "The theory of Social and Economic organization". He defined bureaucracy as "an
ideal form of organization whose activities and objectives are rationally thought out and whose
divisions of labor are explicitly spelled out. This theory stressed strictly defined hierarchy
governed by clearly defined regulations and lines of authority. Weber used this method to form
an ideal-type bureaucracy with the following principles:
• Well defined hierarchy of authority
• Job specialization (Division of labor)
• Clearly defined formal rules and regulations
• Impersonality of personal relations (social distance between superior and subordinates)
• Formal selection of manpower and basis of technical qualification and examination
• Career orientation-professional officials rather than ownership of units, career in the
organization.
Human Relations and Behavior Science Theory
Elton Mayo and his research team from Harvard University conducted a series of research
studies during 1922 to 1932 among several group of workers at the Hawthorne Plant of the
Western Electric Company in Chicago. The conclusions of Hawthorne study are:
• Fellowship and self-respect influence the workers' behavior.
• Productivity is not only a technical but also a social aspect.
• Group or team sprit influences individual behavior significant effects on productivity than
working conditions.
• Physical factors and monetary incentives are not enough to decrease efficiency and
productivity.
• This experiment emphasizes on social, psychological and physiological factors of
workers and employees.

Behavioral Science Perspectives: There are many perspectives which deal with behavioral
aspects of workers and their productivity. Some of the important behavioral science
perspectives are explained are described below:
1. Theory of participative management: Mary Parker Follet contributed more to develop
this theory of management. According to Follet human element in the workplace is an
important factor. Management should achieve integrative unity through co-ordination and
co-operation. To make better efficiency and productivity, employees should be involved
in management decision making process.
2. Theory of human needs: This theory is developed by Abraham Maslow. This theory
assumes that needs of human being form hierarchy and workers are motivated to fulfill
their needs. Maslow categorized human needs into five levels as physiological need,
safety need, social need, self-esteem need and self-actualization needs from lower to
higher level needs. According to Maslow, lower order needs like physiological and safety
needs should be satisfied first then only higher order needs like social, ego and self-
actualization needs can be emerged to fulfill them employees get motivation.
3. Theory X and Theory Y: This is a motivational theory developed by Douglas McGregor.
He claims that there are two types of people in organization. These two types of people
are categorized into two groups X (for theory X) and group Y (for theory Y) on the basis
of their nature and attitude. Theory X represents the people with traditional and negative
assumptions about job and organization. According to theory X, most people dislike the
 works and they avoid responsibility. Theory Y represents workers who are naturally
laborious, self-responsible, self-directed and self-controlled. Such people are committed
to objectives and want democratic leadership style. They do not like to avoid work but
want to do more challenging and creative works.
4. Two factors theory: This theory is propounded by Frederick Herzberg as a theory of
motivation. According to this theory, all the factors cannot motivate employees. Some of
the factors just protect from demotivation while some of others can motivate employees.
Thus Herzberg classified factors into two major categories as Hygiene factors and
Motivating factors. Hygiene factors are only protector from demotivation while motivating
factors are motivator.
5. Theory Z: Theory Z is the name applied to Japanese Management Style (based on
Edwards Deming's fourteen principles) popularized during the period of Asian economic
boom of the 1980s. Theory Z focused on increasing employee loyalty towards the
organization. This theory believes on job for life with a strong focus on the well-being of
the employee both on and off the job in order to motivate employees. Theory Z
emphasizes that management must promote stable employment for high productivity,
high employee morale and satisfaction.

The Decision Science Theory of Management

Herbert Simon was main profounder of decision science theory who won the Nobel Prize in
1986 for his outstanding work on decision science. According to this theory, managers should
be involved in decision making process regarding Introduction of new products, selecting new
employees, adjusting organizational structure, setting organizational goals, finalizing plans,
purchasing fixed assets and many others day to day activities. Decisions of managers must be
rational.
Management Science Theory
The concept of operation research was developed during the Second World War by British
government period to find out the unique solution of problems. The focus of this approach is on
planning, designing and implementing strategies through mathematical models. Managers
should predict everything on the basis of proved mathematical and statistical perspectives. This
theory is also known as a mathematical or quantitative approach of management.
The System Theory of Management
A system is defined as a flow of group of inter-related activities or parts working together as a
whole. System theory may be defined as a goal oriented organism composed of parts that are
interacting and interrelated in such a way that the total system is greater than the sum of its
parts operated individually. This theory is the unified view of management and looks at an
organization in its totality. All systems are composed of four basic elements: input, process,
output and feedback. System can be closed or open.
The Contingency Theory
This theory was developed in 1960 jointly by Tom Burns and GM Stalker in Britain and Paul
Lawrence and Jay Lorsch in USA. According to this theory, management concepts are
contingent on a particular situation. This theory is the most recent development in management
school of thought. The conclusion of contingency theory is that there is no one best way to solve
problems uniformly in all the organizations. Each situation may be unique and demands unique
managerial action different from other situation. The major contingency variables for the
organization are:
• Size of organization
• Task technology level of organization
• Environmental uncertainties and
• Individual differences.

Emerging Management Concepts

In order to cope with such complexities, new management concepts are being emerging. Some
of them are discussed below:
1. Work force diversity: Globalization and growing legal concern in the equality in job
position, the complexities of work force variation i.e. diversity is increasing rapidly. In
modern organizations, work force Le. human resources are varying in terms of age,
gender, caste and race, economic status, social status, geographical variation, etc. They
carry different attitudes and needs differently.
Benefits of workforce diversity
• Variety of perspectives
• Increased creativity
• Increased productivity
• Improved performance
• Brand reputation
 • Better decision making
• Higher employee engagement and reduced turnover
• Improved hiring results

Limitations of workforce diversity

• Poor focus on leadership qualities
• Chances of conflict
• Decrement in mutual trust
• Creating communication problems
• Increase in complaint
• Difficult to apply
Knowledge management: Knowledge management is the process of capturing value,
knowledge and understanding of corporate information. This concept creates, uses and reuses
the knowledge by using information technology systems. Knowledge management efforts
typically focuses on organizational objectives such as improved performance, competitive
advantage, innovation, the sharing of lessons learned integration and continuous improvement
of the organization.
Knowledge management process
• Knowledge discovery
• Knowledge sharing
• Knowledge Capture
• Knowledge Application

Core Considerations for a Knowledge Management Program

• People
• Technology
• Culture
• Processes
• Structure

Steps to Knowledge Management Implementation

• Establish knowledge management program objectives.
• Prepare for change management.
 • Define a high-level process as a foundation.
• Determine and prioritize technology needs.
• Assess current state.
• Knowledge capture Knowledge application
• Build a knowledge management implementation roadmap.
• Implementation
• Measure and Improve the Knowledge Management Program
Outsourcing: in this concept, organizations contract for the product or services to the other
organization in which other organizations are more competent. They can contact for whole
process for particular product or parts or for only certain processing in which they low
competency. Nowadays, business organizations are outsourcing for the following sectors:
• Management professionals
• Certain processes of final production
• Distribution, etc.
• Supply of human resources
• Complete production
Learning organization: This concept explains as the organization should be converted into a
learning center to create new knowledge and methods to solve different problems. Only the
knowledge is the way to lead today's competitive market. So, it is most important to give
emphasis on learning different techniques to become more competitive. Knowledge is not
bounded with age, gender, and level of the organization. So managers need to create free
learning environment to its employees within the organization to make them globally competent.
Features of learning organizations
• Systems thinking
• Mental models
• Team learning
• Personal mastery
• Shared vision