The Theories of Management

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The 4 Key theories of Management

There are 4 key theories that you need to know: 

Taylor (scientific management)

Maslow (Hierachy of needs)

Herzberg (Two factor theory)

Mayo (Human relations theory)

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(+ Fordism. Henry Ford made improvements to the theory)

Taylor believed that each person should be paid on their piece rate (should be paid upon how many items are produced) and believed the workers are only motivated by money. He said that workers have a disliking to work an need close supervision and control. He suggested that production should be broken down into tasks. He also said that staff should be given training to maximise their production. 

Increased Productivity

More pay for workers

Control over workers may upset them

Take away freedom

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Maslow developed the Hierachy of Needs which describes the levels of human needs that motivate us. The principles of his theory are;

  • Every individual starts at the bottom of the pyramid. 
  • Motivated initially for basic needs
  • Once they have achieved their basic needs, they strive to seek the achievements in the next level of the pyramid.

Better understanding of needs

Increased productivity

Too simplistic

No form of measurement

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Mayo looked at the welfare of staff- he initially looked into an electrical plant and improved the conditions.

He suggested that workers wanted more from work that money, meaning that they are more motivated if their social needs are met. His studies concluded;

  • Managers should give more support in the interest of workers
  • They should involve staff in decisions which will motivate them further
  • Improved communication with staff will make them feel more secure in the workplace
  • Working in groups or teams will help with production as greater support is shared

The workers feel more supported

Increased productivity

More time consuming

Costs more

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Herzberg developed the two-factor theory. They were:

1) Hygiene factors - make you work better; legislation, pay, equipment, policies - cause demotivation if not offered. 

2) Motivators - things that can improve your motivation. EG: consultation and improving the content of the job will make it more interesting and therefore they will be more motivated. 

Gave workers a better working environment

More interaction with workers

Not able to handle complex tasks

Theory will not work in every industry

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