AHMADU BELLO UNIVERSITY

ZARIA, NIGERIA
BUAD 801: MANAGEMENT THEORY AND PRACTICE
PROGRAM: MASTER IN BUSINESS ADMINISTRATION
Question: Discuss the development of management theory, contrasting and evaluating
various approaches.

1. INTRODUCTION
Early management practices considered to be largely informative and intuitive were shaped
by authorities traceable to traditional, military and religious institutions (Wren & Bedeian,
2009). However, the industrial revolution birthed a factory system of mechanized and
coordinated labour resulting in the challenges of economics of scale and efficiency, thus
exposing the limitations of informal early management practices and prompted the urgent
need for a well-structured approach of organizational administration. This birthed the
Classical School, where classical theorists like Frederick Taylor developed the Scientific
Management emphasising on productivity via standardization (Nelson, 1980), whilst Henri
Fayol and Max Weber respectively proposed the Administrative and Bureaucratic Models
which collectively birthed the Classical School of Management (Hatch, 1997)

These models which focuses on organizational structure, ignored the social and emotional
needs of workers, birthing the Human Relations Movement in the Hawthorne Studies
focusing on worker’s motivation and interpersonal relations (Roethliisberger, Dickson, &
Wright, 1961). This progressed to the McGregor’s Theory X and Y, introducing participative
leadership grounded in behavioural psychology (McGregor, 1960). Due to the rigidity of
these theories, the Systems and Contingency Theories emerged proposing a more adaptive,
and flexible approaches to management, recognizing that organizations are dynamic and
situationally influenced (Donaldson, 2001). Today, management theories have transitioned
into Contemporary Theories and Modern approaches representing a shift from rigid to
human-centred management theories.

2. CLASSICAL MANAGEMENT THEORY (Maslow, 1943; Mayo, 1933)

Classical Management Theory is a management approach that emerged in the late 19th and
early 20th centuries. It emphasizes on:

 Hierarchy: A clear chain of command with decision-making authority concentrated at

the top.
 Specialization: Division of labour into specific tasks to increase efficiency.
 Standardization: Establishing standard procedures and processes.
  Efficiency: Maximizing productivity and minimizing waste.

Key contributors include:

 Frederick Taylor (Scientific Management): Focused on optimizing work processes
through scientific analysis.
 Henri Fayol (Administrative Theory): Developed 14 principles of management,
emphasizing structure and authority.
 Max Weber (Bureaucratic Theory): Emphasized the importance of a structured, rule-
based organization.

Classical Management Theory has been influential in shaping modern management practices,
but critics identified limitations of the theory as follows:

 Overemphasis on structure and control: Neglecting human factors and employee well-
being.
 Inflexibility: Failing to adapt to changing environments and circumstances.
 Despite these limitations, Classical Management Theory remains an important
foundation for understanding management principles and practices.

3. HUMAN RELATIONS MOVEMENT

The Human Relations Movement came to be in the early 20th century as a response to the
rigid, task-focused nature of classical management theory. Unlike earlier approaches that
viewed workers as parts of a machine, this movement emphasised human needs, emotions,
relationships, and motivation in the workplace.

One of the major turning points was the Hawthorne Studies (1924–1932), led by Elton Mayo.
These studies revealed that workers' productivity improved not just due to physical
conditions, but because they felt observed, valued, and part of a group (Mayo, 1933). This
insight brought attention to the psychological and social dimensions of work. Mary Parker
Follett also contributed significantly, advocating for cooperation over control and for
managers being facilitators rather than dictators (Graham, 1995). Later, Douglas McGregor’s
Theory X and Theory Y (1960) encouraged managers to adopt more positive assumptions
about workers, promoting trust and autonomy (McGregor, 1960).

What stands out about this movement is its humane approach. It highlighted that people bring
more than just skills to their jobs; they bring feelings, perspectives, and a desire to belong.
While critics argue that the movement sometimes overlooked structural factors like pay or job
design, it undeniably laid the groundwork for modern management practices like employee
engagement, motivation theory, and leadership development (Braverman, 1974).

In short, the Human Relations Movement helped reshape management by centring people,
moving from control to connection.

4. BEHAVIOURAL THEORY (Wahba & Bridwell, 1976; Wren & Bedeian, 2009)
Behavioral Theory, also known as Behavioral Leadership Theory, focuses on the study of
observable behaviors and actions of leaders. It suggests that leadership effectiveness is
determined by a leader's behavior, rather than their traits or characteristics.

Key aspects of Behavioral Theory include:

 Task-oriented behaviours: Focus on achieving goals and completing tasks.
 People-oriented behaviours: Focus on building relationships, motivating, and
supporting team members.
Behavioral Theory has been influential in shaping leadership development and training
programs, as it suggests that leaders can learn and develop effective behaviors through
practice and feedback.

5. QUANTITATIVE APPROACH (TheBusinessProfessoor, 2025; Mayo, 1933)

The Quantitative Approach to Management emerged after World War II as a response to the
growing need for effective decision-making in increasingly complex environments (Suzuki,
1967). This approach relies on the use of mathematical models, statistics, and computational
techniques to resolve management problems. The quantitative approach is rigid and relied on
static models and formulas, with emphasis on efficiency and optimization. More so, it
prioritized numerical data and efficiency but failed to balance things with an understanding of
human factors and organizational context (TechnoFunc, 2020).

The core fields of the quantitative approach are Operations Research, Management Science,
and Systems Theory.

 Operations Research which focuses on the optimization of logistics operations and

using mathematical models to develop logistic schedules (Suzuki, 1967).
 Management Science emphasized using mathematical models such as decision trees
and game theories for decision-making (Suzuki, 1967).
 Systems Theory developed the perception that organizations are interconnected
systems where any changes in a component will affect the whole system (Suzuki,
1967).
  Decision Theory developed the use of data to study decisions made under uncertainty,
whilst incorporating these studies with probability and risk assessment (Suzuki,
1967).

Limitations of the Quantitative Approach to Management

Although this approach to management focused on efficiency and optimization, it had some
limitations, which are as follows (TheBusinessProfessoor, 2025; TechnoFunc, 2020):

 Over – Reliance on Data: It relied more on the use of mathematical models for
solving organizational challenges and overlooked the role of human factors such as
employee morale and creativity.
 Highly Complex: It focused more on the use of mathematical models that could be
challenging and complex to apply in real-world situations due to data limitations.
 Rigidity: This is a systematic approach which limits its adaptability in dynamic
environments.

The quantitative approach to management significantly improved efficiency and decision-

making in the business environment, however, for it to be more effective, it needs to be
balanced with it with an application of human factors and organizational context
(TheBusinessProfessoor, 2025).

6. SYSTEMS APPROACH (Wren & Bedeian, 2009; Nelson, 1980)

The Systems Approach views organizations as complex systems composed of interconnected
components that work together to achieve a common goal.
This approach considers:
 Inputs: Resources, information, and energy entering the system.

 Processes: Activities, transformations, and interactions within the system.

 Outputs: Products, services, or results generated by the system.
 Feedback loops: Mechanisms for monitoring and adjusting the system based on output
and performance.

7. The Systems Approach emphasizes (Wren & Bedeian, 2009; Lawrence & Lorsch, 1967;
Barlow & Proschan, 1967)
 Interdependence: Components connect and affect each other.
 Holism: The entire system is more than the sum of its parts.
 Adaptation: Systems must adapt to changes in their environment.

This approach helps managers understand the organization, identify potential bottlenecks, and
make informed decisions to optimize performance.
8. CONTINGENCY APPROACH (Wren & Bedeian, 2009; Hatch, 1997) (Barlow &
Proschan, 1967)
The Contingency Approach suggests that there is no one-size-fits-all management approach.
Instead, the most effective management style or strategy depends on the specific situation or
context.

Key aspects:
 Contextual factors: Consider variables like organizational size, culture, technology,
and environment.
 Adaptability: Managers must adapt their approach to fit the situation.
 No universal best way: What works in one situation may not work in another.

This approach encourages managers to be flexible and responsive to changing circumstances,

rather than relying on a single management style or theory.

9. MODERN APPROACHES (Wren & Bedeian, 2009; Barlow & Proschan, 1967)
Modern approaches to management include:
 Total Quality Management (TQM): Focuses on continuous improvement, customer
satisfaction, and employee involvement.
 Learning Organization: Emphasizes continuous learning, innovation, and
adaptation.
 Knowledge Management: Focuses on creating, sharing, and utilizing knowledge to
improve organizational performance.
 Strategic Management: Involves analyzing the organization's internal and external
environment to make informed strategic decisions.
 Organizational Development (OD): Aims to improve organizational effectiveness
through planned change and development.

These modern approaches prioritize flexibility, innovation, and continuous improvement,

recognizing the complexities and uncertainties of today's business environment
(Roethliisberger, Dickson, & Wright, 1961).
 10. COMPARATIVE EVALUATION OF MANAGEMENT THEORIES
Management theories differ in their views of organizational management. Table 1 summarizes how each of these theories compare to each other.

Table 1: Comparison of Management Theories and Approaches (Nelson, 1980; Nelson, 1980; Wren & Bedeian, 2009; TheBusinessProfessoor, 2025; Suzuki, 1967)
Theory Key Focus View of Workers Motivation Approach Flexibility Major Strengths Major Weakness
Structure, efficiency, task Low - assumes one best Clear structure, efficiency
Classical Tools of productivity Monetary rewards Ignores human/social factors
control way oriented
Scientific Task Optimization, time Mechanistic, Task- Very Low (Rigid Maximizes productivity and Dehumanizing and limited
Financial Incentives
Management (Taylor) studies oriented Structure) task efficiency worker engagements
Administrative Hierarchical structure, Low -top-down Provides organizational clarity Inflexible, assumes static
Functional roles Clear rules and roles
(Fayol) planning approach and managerial principles environment
Role-based, rule - Low- standardized Promoted fairness and Excessively rigid, discourages
Bureaucratic (Weber) Authority, rules, hierarchy Formal system
following procedure consistency innovation
Human Relations Social needs, group Belonging and Moderate - recognizes Improves morale and May overlook structural and
Social beings
Movement dynamics recognition emotional needs teamwork technical needs
Human behaviour, Capable of self- Intrinsic motivation, Moderate to high - Encourages participation and Can be difficult to implement
Behavioural
leadership direction participation supports engagement development in large rigid systems
Interdependence, System - wide High-considers Holistic understanding of Complexity may hinder
Systems
environment Part of a larger system alignment internal/external fit organizations practical application
Very high-no-one-size- Flexible and adaptable to Lack of clear guidelines,
Contingency Situational fit, adaptation Adaptive actors Dependent on context fits-all different situations requires constant assessment
Total Quality Continuous improvement, Committed to quality Recognition, High – built into Enhances customer Long-term commitment and
Management (TQM) quality culture and involvement continuous feedback processes satisfaction and teamwork cultural change
Learning Continuous learning, Learners and Learning, growth, and Very – high – adaptive Encourages innovation,
Organization knowledge sharing contributors shared vision and evolving resilience, adaptability Difficult to create and sustain
Knowledge Capturing and using Knowledge creators Access to information High – tech – enabled Increases efficiency, learning, Needs strong systems and
Management knowledge effectively and users and learning and responsive and innovation culture; risk of overload
Strategic Long-term goals, Analytical thinker and Goal alignment and High – initiative-taking Provides direction and Can ignore human aspects if
Management competitive advantage implementers achievement driven and responsive competitiveness too goal-oriented
Organizational Planned change, culture, Collaborative change Participation, Very – high – people Promotes healthy culture, Time -consuming; needs
Development (OD) and performance agents empowerment, trust and people-oriented sustainable change skilled facilitation
Transformational Visionary leadership, Empowered and Purpose, vision, High – adaptable and Drives innovation and high Leader-dependent, can be
Leadership motivation innovative personal vision inspiring performance unsustainable without support
11. CONCLUSION
Although the various management theories hold different perception on the operations of
business organizations and drivers of human behaviour, each of these theories have impacted
organization management and human behaviours in immeasurable ways. The Classical
Theories focused on efficiency, structure, and control and considered workers as productive
tools. The Human Relations Movement and Behavioural School emphasized on the need for
social and emotions factors and advocated for participative leadership. The Systems Theory
and Contingency Theories highlighted on the complex nature of organizations, proposing the
need to adapt both internal and external factors in organizational management. Today, it has
transitioned into a more flexible and people-centred Contemporary and Modern Theories that
has continuously transformed organizational management to suit and benefit the 21st century
fast-paced business environment.

12. REFERENCE

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