THEORIES OF MANAGEMENT: TOWARDS AN EFFECTIVE THEATRE

(BUSINESS) MANAGEMENT

UZOMA .T. NWANAJU

ABSTRACT

C
apital is an essential factor in any business organisation. But beyond this factor,
businesses require human factors to thrive. Among other factors necessary for a
successful business is managerial inputs and administrative know-how,
management/administration then becomes the life wire of any business organisation. Like
other businesses, the 1theatre business requires the ingenuity of a creative manager who
has a lion heart to break even. Profit and at least, sustenance in the modern business is
on the decline today because most managers fail to apply the right principles of
management. This paper then tries to explore the theories/principles of management in
the light of effective theatre (business) management.

INTRODUCTION
Management is an activity that involves tasks and through which the actualisation
of organisation’s objectives are met. From this premise, there is no one style towards
effective management. This will imply that the manager in a management position takes
the credit of whatever he achieves which further implies that in any organisation, every
failure or credit becomes that of a manager. The output of the organisation translates the
vision, dedication and integrity of managers and further determines whether there is
management or mismanagement (Drucker 1974). The manager in a management position
then becomes two dimensional in “skill and performance” (Ogunsanwo, 2000, p.3) and
propels management to denote “work study” or “task study”. To this end Drucker (1974)
notes that within half a century, our society has become a pluralistic society in which
every major social task (from producing economic goods and services to health care,
from social security and welfare to education, from the search for new knowledge to the
protection of the natural environment) is entrusted to large and specialised organisations
and it is the managers and management that make the organisations cum institutions
perform. To this end, Langley (1980, p.283) opines that an ideal manager should not only
be one with an idea but also one who embodies a technical know-how. A good business
manager is interested in his work, as well as the work of the organisation, and he is
willing and able to pay attention to the myriad details that make things run smoothly,
establish financial soundness and make everybody’s job easier and more secure.

UZOMA .T. NWANAJU is of the Department of Theatre and Media Arts, Ambrose Alli University, Ekpoma.
 In this paper, frantic effort has been made to treat the basic principles/theories of
management which foster planning, organising, staffing, leading, controlling, and
directing business organisations for productivity. The basic knowledge and sound
application of these principles make a management/organisation credible or not credible.
These management principles are universally the same and applicable to all human
endeavour and business organisation. The Nigerian theatre business manager, like his
counterparts the world over, should be a great planner. The manager within a professional
(theatre) company or institution must familiarize himself with the decision-making
process and tools so that he can identify the objective of the institution. He should state
the philosophy, define the goals and objectives, outline policies and procedures, analyse,
evaluate and design jobs; prepare budget to implement his plans and manage his time and
that of the organisation (Akomolafe, 1981, p.428).
MANAGERS OF THE THEATRE BUSINESS
The act of management ensures the proper harnessing of resources and
coordination of individual efforts (in an organisation) to achieve goals or meet the
objectives of the organisation. To this effect management becomes “the process of
designing and maintaining an environment in which individuals, working together in
groups, efficiently accomplish selected aims” Weihrich and Koontz (2003:4). If the
Theatre is (a) business with set objectives, then, its numerous resources must be geared
towards the actualisation and realisation of the objectives. From this end, the business of
Theatre management becomes inter alia, “the careful organisation and coordination of
the efforts of various people working together in order to achieve the theatre’s goals and
objectives” Adelugba and Okhakhu (2001:152). Theatre managers therefore come to
impose pattern and order several parts with the right technique to make the Theatre
business a productive venture. Stephen Langley examines the Rockefeller Panel Report,
The Performing Arts: Problems and Prospects, published in 1965 and observes that a
good art (Theatre) manager is:
A person who is knowledgeable in the art with which he is
concerned, an impresario, labour negotiator, diplomat,
educator, publicity and public relations experts, politician,
skilled businessman, a social sophisticate, a servant of the
community, a tireless leader – becoming humble before
 authority – a teacher, a tyrant, and a continuing student of the
arts (Langley 1980.22).

The managers of a theatre include but not limited to the following:

Board of Directors/Trustees
Private non-profit corporation (the most common structure for ongoing resident
theatres) must have a board of directors or trustees. “Trustees” is perhaps a more
appropriate name for a person overseeing funds primarily meant for investment purposes.
In New York State (USA), a board member of a non-profit corporation is legally required
to act “with high degree of diligences, care and skill which ordinarily prudent men will
exercise under similar circumstances in like positions” (Langley, 1980:33). The director
is often expected not to realise any personal financial gain while discharging his job. He
may receive honorarium or get a reimbursement for any official assignment or trip.
A person must investigate before accepting an offer in the board such issues as:
general and specific obligations, the constitution, any by laws, fiscal history and current
position, fiscal and legal management like who the auditor(s) is/are. He should also learn
about the other board members and why each has been invited to join the board. This will
be for his personal and security interests.
The directors and trustees hold positions that are just more than honorary even
though they do not receive salary. Being there, they also concede personal liabilities
(although they may be granted indemnity if they are vindicated of negligence) on the
charges levelled against the theatre. The Musical Society of Nigeria (MUSON) centre,
Lagos, is an example of a theatre company run by board of directors/trustees.
General Manager
In commercial theatre a General Manager is responsible to the producer. He is
responsible to the Board of Directors/Trustees in a non-commercial theatre. Here, the
General Manager is given full authority over the entire operation both administrative and
artistic.
The General Manager oversees all business aspects including the preparation and
control of budgets, accounts, staff and day-to-day running of the theatre. He is assisted by
the theatre manager.
Managing Director
The Managing Director has overall authority in supervising an organisation; he
may play a considerable part in artistic decision-making, though he is never the financier.
Artistic Director
The Artistic Director is responsible for programme structure and performance
standard. The title may imply that he may not have much to do with the overall
administration of theatre building.
Director
This title often represents the person who controls and coordinates the creative
work of the actor(s) or production team. The director can also be a paid administrator
who carries out the policies of the theatre’s board. Here he serves as the liaison between
the board and the other theatre staff. He is often called by the title “Executive Director”.
This title may also empower this manager to supervise the business and the
administrative aspect of the theatre.
Producer
This title originally denotes the person who directed the actors. In the modern
theatre practice especially in commercial theatre, it denotes a packager of a show. The
producer brings together the script, the director, the designers and the actors. Above all,
he finances the theatre. Often the producer originates the idea for a production.
Production Manager
The title is used often in large theatres to denote a person who oversees a multi
theatre plant or busy repertory season. He supervises the use of space, maintenance,
personnel and the like. He does not (often) have anything to do with the artistic. He is
often called the “director of theatre operations”.
House Manager
In a professional theatre, the house manager is the landlord’s representative. He is
responsible for upholding the terms of the producer’s lease with the theatre owner. In
institutional theatre, he supervises domestic arrangement of the audience areas. This
includes cleaning and staffing. He pays particular attention to audience welfare.
Business Manager
He works under the General Manager or the Artistic Director. He is responsible
for the fiscal details of the organisation.
Technical Director
He is the person that supervises the many aspects of assembling the physical
productions. He at times manages a large (technical) staff and budget. The Technical
Director (TD) may also double as master carpenter, lighting designer or electrician.
Marketing Officer/Manager
He is in charge of a coordinated publicity and marketing aspect of a
production/theatre. It is basically a new area in theatre because of the new-face-theatre
business.
Publicity Director/Manager
He takes charge of all advertising and publicity needs of a given production or the
theatre organisation. This also includes prints.
Box Office Manager
The Box Office Manager is responsible for the sale of all tickets for a production
including reservations. He prepares daily returns for all tickets sold for the current and
advance performances. The Box Office Manager balances sales against all monies
received.
An aspiring theatre manager must have great ideas and should posses a sound
technical know-how to make things work. The ideal manager for any theatre business
may not necessarily have a Ph.D. in arts administration or degrees in business
administration/management but must be a business manager who loves the Theatre and
his job with special interest. The type of interest he would posses should be that that is
embedded/coated with the zeal to achieve for the organisation.

THEORIES OF MANAGEMENT
Weihrich and Koontz (2003, pp.14-15) observes the role of theory in the field of
management as providing a means for classifying significant and pertinent management
knowledge. They further note that techniques normally reflect theory and are a means of
helping managers undertake activities. It is the search for ideal and credible management
embedded in new and efficient knowledge to make institutions and business
organisations perform that scholars over the years have evolved theories for effective
management. The theories that will be examined in this paper include:
1. Classical Theory of Management
2. Human Relations Theory of Management
3. The Behavioural Science Theory of Management
4. The Decision Science Theory of Management, and
5. Contingency Theory of Management.

CLASSICAL THEORY OF MANAGEMENT

The advances made in the Scientific Method of Management and the
Administrative Management Theory gave root to the classical Theory of Management.
The classical theory recognises the essence of workers or labour force in an organisation
and advocates the welfare of the labour force.
The Scientific Management came to be in 1911 when Frederick Taylor (1856-
1915) published his Principles of Scientific Management. Although Louis D. Brandeis, in
the meeting of engineers in October 1910 coined the title “Scientific Management”,
Taylor is being recognised as the father of Scientific Management (Ogunanwo, 2000,
p.9). Ogunsanwo stresses the origin of Scientific Management and observes that Taylor
spent more than two decades using scientific method on the shop floor to find out the
‘one best way’ for each job. Until 1911, the concepts and practices which engineers
adopted had been identified variously as ‘efficiency engineering’, ‘Taylorism’,
‘rationalism’ and ‘the science of management’. Taylor rose to the post of a Chief
Engineer having obtained a degree in Engineering in 1883 through evening study.
According to Heyel,
In his [Taylor’s] time as a foreman, Taylor made a determined
effort to change the system of management so that the
relationship between the workman and management would
become less antagonistic. He believed that the workers were
holding back production, he felt that the greatest obstacle to
harmonious relations between labour and management lay in
management’s ignorance as to what really is a proper day’s
work for a workman (1973, p.180).
 To improve production, Taylor advanced what was regarded as revolutionary
guidelines. Weihrich and Koontz (2003, p.33) observe these guidelines or principles
which anchor the scientific theory to include:
1. Replacing rules of thumb with science (organised knowledge),
2. Obtaining harmony in group action, rather than discord,
3. Achieving cooperation of human beings, rather than chaotic individualism,
4. Working for maximum output, rather than restricted input,
5. Developing all workers to the fullest extent possible for their own and their
company’s highest prosperity.

Other management scholars who have helped channel the course of this theory
include: Frank and Lilian Gilbreth, Moris Cooke, Harrington Emerson etc.

FRANK AND LILIAN GILBRETH

Frank and Lilian Gilbreth were known for their work in motion studies. Frank laid
emphasis on the arrangements for work, for instance, reducing unnecessary hands and
body movement, designing and using appropriate tools or equipment to maximize
productivity in labour-intensive schedules. To ensure progress, continuity and
productivity in management, the Gilbreths developed a three-position plan for promotion
of workers. These plans include that
i. a worker should train his successor,
ii a worker should carry out his jobs efficiently and effectively, and
ii. a worker should also prepare for a higher position in the organisation.

Frank Gilbreth further emphasised that in applying the science management

principles, one must first look at the labour force and understand their personalities and
needs. This is to increase productivity since it is not the monotony of work that causes
heightened worker dissatisfaction but, management’s lack of interest in welfare of the
labour force (Weihrich and Koontz, 2003, p.36). This happens to be a major problem in
the theatre business today where most directors (and producers) have failed to recognise
the psychological and financial needs of their staffers. This is a major problem this writer
identified when he took a survey of some theatres including the National Arts theatre,
Lagos, Cultural centre Mokola, Ibadan and MUSON centre, Lagos.
MORIS COOKE
Moris Cooke who wrote Academic and Industrial Efficiency between 1910 and
1920 has been taken to be the first to apply scientific management techniques and
principles to non-industrial sectors. Cooke advocated that the concept of efficiency,
which had gained roots in profit-making organisations, could also be applied to service
and non-service organizations (Ogunsanwo, 2000, p.12) including the theatre.
Henry L. Gantt, Harrington Emerson, and Franklin Bobbitt, were the other
advocates of Scientific Management. Gantt advocates that Overall goals of a programme
of organisation should be regarded as a web of inter-related supporting plans (events)
which people can adopt to achieve desired goals.
Gantt’s charts can be described as the precursor of ‘Time-Event Network
Analysis technique’. Stressing the contributions of Gantt, Weihrich and Koontz (2003,
p.34) observes thus:
He (Gantt) emphasized the need for developing a mutuality of
interests between management and labour, a ‘harmonious
operation.’ In doing this, he stressed the importance of teaching, of
developing an understanding of systems on the part of both labour
and management, and appreciating that ‘in all positions of
management the human element is the most important one’.

HARRINGTON EMERSON
Harrington on his own propounded what he called twelve ‘principles of
Efficiency which are itemized as:
i. A clearly defined ideal
ii. Common sense
iii. Competent advice
iv. Discipline
v. The fair deal
vi. Reliable, immediate, adequate and permanent records
vii. Dispatching
viii. Standards and Schedule
ix. Standardized conditions
x. Codified operations
xi. Written handbook of instructions
xii. Efficiency reward. (Emerson, 1913, p.89).

The application of the Scientific Theory in the business of the Theatre will
harmonise and improve the working relationship amongst the Theatre personnel.
Fostering mutual respect amongst all, this theory will further empower the actors
(through whom the business of the theatre is mainly animated) when adequately
motivated. The business of the Theatre involves chains of rehearsals and activities which
range from individual to group efforts which are all geared towards an end product. The
rehearsal sections, workshops, seminars attended by the theatre personnel are geared
towards efficiency and improving productivity. The managers of the Theatre in their
individual offices work towards this improved productivity. When these people involved
in this chain of production activities are well motivated, there is no doubt that the theatre
business like any other experience a boast.
ADMINISTRATIVE MANAGEMENT THEORY
Administrative Management Theory was also developing when Scientific
Management Theory was at its apex in America. Among the advocates of the
Administrative Management Theory were Henri Fayol, Luther Gulick, Oliver Sheldon
and Lyndall Urwick.

HENRI FAYOL

Henri Fayol organised knowledge of management around managerial functions.

Referred to as the father of what is called ‘Administrative Process’, Fayol brakes down
the functions of management as – planning, organising, commanding, coordinating and
controlling (Fayol, 1949, p.51). Weihrich and Koontz (2003, pp.38-9) lists Fayol’s
fourteen principles of management, which are also referred to as classical principles of
management. These principles include:

1. Division of labour
1. Clear delineation of authority and responsibility
2. Discipline must be maintained
3. There must be unity of command
4. There must also be unity of direction (objective)
5. Individual/personal interest must be subjugated to over-all interest
6. Respectable remuneration must be guaranteed to workers
7. There must be a delicate balance between centralization and decentralization
of authority and power
 8. Order (material and social) must be maintained to avoid chaos and disaster
9. There must be a scalar chain of authority and communication ranging from the
highest to the lowest position
10. Security of jobs must be ensured
11. Initiative: the use of initiative by staff should be encouraged
12. Equity: there should be equity (fairness and justice) in dealing with staff
13. Esprit de Corps: there must exist concentrated effort, total belonging and unity
of purpose and direction.
In addition to the principles, Fayol also noted that industrial activities could be
divided into six basic groups:
1. Technical (production)
2. Commercial (buying, selling, and exchanging)
3. Financial (search for, and optimum use of, capital)
4. Security (protection of property and persons)
5. Accounting (including statistics)
6. Managerial (planning, organising, commanding, coordinating and
controlling).
The Administrative Management Theory is the heart of Theatre operations. The
business of the Theatre centres on group of bodies or individuals (actors, directors,
choreographers, designers, dancers etc) working together for a common objective/goal –
theatrical production. For proper execution/actualisation of this objective, it becomes
absolutely necessary to share the theatre job amongst its personnel with each managing
the unit which he/she is most knowledgeable. Beyond this division of labour and
specialisation, there exists a complete unity of purpose which Fayol appropriately termed
Esprit de Corps. When administrative theory is conscientiously applied in the theatre, the
business becomes a great “enterta-industrial” profit venture.

HUMAN RELATIONS THEORY

This theory emerged from about the early 1930s seeking to meet the defects of the
classical theorists. Elton Mayo led the Human Relations Theorists. The report of the
research on human relations on productivity carried by Mayo and others concluded thus:
a). When special attention is given to workers by management, productivity is likely
 to increase despite changes in working conditions.
b). Informal work group has great influence on productivity (Mayo, 1953, p.80).
Very outstanding in the Human Relations Theory is the X and Y principle
propounded by Douglas McGregor while developing his ideas of leadership and
motivation. McGregor seems to base his Theory X on four assumptions often associated
with efficiency views of management (i.e. the classical theory of management).
These assumptions maintain that:
1). the average employee dislikes work and if it is possible will avoid it;
2). since these employees dislike work, managers have to coerce, control,
manipulate and even threaten them with punishment in order to force them to
achieve organizational goals and objectives;
3). the normal employee shirks responsibility and rather waits for formal direction
whenever possible;
4). Most employees place security ahead of all work and often they display little
ambition about work (McGregor, 1960, p.51).
While Theory X assumptions are negative, McGregor’s other assumptions for
Theory Y are as follows:
i. Physical and mental efforts expanded on work can be seen as natural as
relaxation or play.
ii. The employee will naturally exercise self-direction and control if he is
committed to the objectives/goals of the organization.
iii. The ability to be creative, imaginative and use initiative is widely dispersed
among the population in the solution of organizational problems not limited
only to those holding administrative functions.
Despite the efficiency of this theory, it may not always be effective in Nigeria, the
situation here may demand a theory Y administrator with a theory X assumptions. The
dictates of this theory seems to be considering what is today known as “Nigerian factor”
where people seem to emphasise more what they will get instead of what they will put in.
This also affects the theatre business especially when “passers by” are entrusted with its
business in whatever capacity.
THE BEHAVIOURAL SCIENCE THEORY OF MANAGEMENT
This theory focused on behavioural attitude of workers to work. The theory came
up as the quest/search for organizational goals and deficiency. Most of the adherents who
were social psychologists used experiments and research in their systems approach to
effecting their goals. These adherents recognized that organizations are made up of
human beings who are influenced by many variables both within and outside the
organisation.
HUGO MUNSTERBERG
Weihrich and Koontz (2003, p.40) identify Hugo Munsterberg as “the father of
industrial psychology” whose interest shifted to the application of psychology to industry
in 1910. Hugo saw the need to apply behavioural science to the new scientific
management movement. Hugo stated his objectives as to discover:
(1) How to find people whose mental qualities best fit them for the work they
are to do.
(2) Under what psychological conditions the greatest and most satisfactory
output can be obtained from the work of every person, and
(3) how business can influence workers in such a way as to obtain the best
possible results from them.
The behavioural theorists who advocated the introduction of democracy in
organisations through participative decision-making laid more emphasis on input and
output of an organisation. Their contributions include organizational change, motivation,
conflict management and the integration of the goals of individual workers with those of
the organisation. In the theatre business, this theory may have arguably given rise to the
series of production meetings where ideas and instructions are shared and given.
CHESTER I. BARNARD
Another behavioural theorist was Chester I. Barnard who saw an organisation as a
social system of cooperation that involves the conscious coordination of activities of
persons within it. Barnard advocates personal experience and understanding of the job of
administration to be implicit and adept in executive practice or in the leadership of
organisation (Barnard, 1938, p.viii).
 Barnard identifies ‘effectiveness’ and ‘efficiency’ as inevitable for the success of
an organisation, which he described as a ‘system of cooperation’. He saw effective
communication as a life-wire of an organisation and thought that the personnel must co-
relate. He observes that in an organisation, a person will only accept a communication as
authoritative only when four conditions simultaneously occur. Barnard (1938, p.165) lists
these conditions thus:
A. He can and does understand the communication,
B. At the time of his decisions, he believes that it is not inconsistent with
the purpose of the organisation,
C. At the time of his decision, he believes it to be complete with his personal
interest as a whole, and
D. He is able mentally and physically to comply with it.
MAX WEBER
Max Weber whose greatest contribution to management is the formulation of
bureaucratic concept in an organisation is recognised as the founder of modern sociology.
Weber identifies procedures of carrying out objectives effectively and efficiently in such
bureaucratic organisations to include that:
A. There should be a body of rules that would govern expected behaviour,
B. There should be clearly specified division of labour, powers, and
obligations,
C. There should be a hierarchy of positions,
D. There should be training in the rules and requirements of positions,
E. There should be freedom to assign people to positions according to the
needs of the organisation,
F. There should be wide use of written communication to guarantee continuity
of rules and decisions (Weber, 1947, p.115).
This theory forms one of the bases of theatrical business: the assuming and
playing of roles. The understanding of this theory will empower each manager or
personnel of the theatre to work effectively according to the demands of his office.
THE DECISION SCIENCE THEORY OF MANAGEMENT
The Decision Science Theory is identified simply as ‘decision-making’. Herbert
Simon distinguishes between ‘programmed and non-programmed decisions’.
Programmed decision denotes decisions made by following a pre-arranged set of
instructions or conventions and traditions while non-programmed decision is often
complex and unstructured. This is based on judgment, intuition, experience, training, and
in-sight that allow individuals to arrive at different conclusions given the same subject
and information.
The importance of this movement lies in its ability to help managers make decision.
Decision-making is the process of planning, identifying problems, searching for alternate
solutions, evaluating such solutions and arriving at a judicious choice of option. Peter
Brook emphasised this theory when he spoke of “deadly theatre” which debatably
encourages every theatre manager/practitioner to be creative, innovative as well as
eclectic in his conducts. A “deadly” theatre manager may detrimental to the organisation.

The use of mathematical model(s) (an equation or set of equations that represents
a phenomenon) is essential in decision science theory of management. Two examples can
illustrate such models:
i. A sample of a widely used model is the business model – EOQ (Economic
Order Quantity) models.
EOQ = √2AS/R
Where A = cost of acquiring/Purchasing inventory items
S = annual sales
R = the retention or carrying cost
In effect, the model outlines that EOQ is the quantity of order which strikes
the best (lowest) balance between purchasing and retention cost
ii. There is also the balance sheet equation, with which model most business
scholars were quite familiar:
A = L+P
Where A = total access
L = Total liabilities
P = Total proprietorship
 This equation is further elaborated to:
Pn = P(n-1)+[1(n-1) →En-E(n-1)→n]
= P(n-1)+[1(n-1) →n-E(n-1) →n]
Where Pn = Proprietorship at the end “n” number of year.
P (n-1) = income during the previous year.
E (n-1) = expenditure during the previous year.
The development and practice of Management Information System (MIS),
Decision Support System (DSS) and Expert Systems are greatly influenced by the
Decision Science Theory of Management.
In the theatre, this theory to a great extent, will not only help the theatre access its
progress but will also help the managers plan a better and more efficient ways of
handling management hitches thereby achieving set objectives with the use of models. A
model is often developed for each problem on hand which are relied on a set equations,
which will highlight consequences of actions to be taken.
CONTIGENCY THEORY OF MANAGEMENT
Theorists group common characteristics into models of “X” and “Y” to make such
characteristics stand the test of theory. This theory allows for flexibility in solving
complex problems by managers and whatever success that may be achieved in the
Theatre organisation are products of the situation of the organisation. The adherents of
this theory see the major factor affecting management practice as the organizational
environment, which preclude external influences like economic, political and social
impact on the organisation or internal constraints, which anchor on the resources
(including human/personnel) available to the organisation.
CONCLUSION
The practice of management or managing a theatre organisation obviously
requires people with principles and technical know-how. The principles and theories
examined in this paper are only guides to managers to know and adopt in applicable
situations. It must be re-emphasised that it is only when managers combine expertise with
disciplined character embedded in flexible management theories as well as transparent
progressive communication that management by objectives (MBO) can be met and
company’s goals achieved.
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