More goes into managing a team than meets the eye. To successfully lead a business, you should appeal to employees through numerous methods, including emotional and financial incentives. Employees tend to appreciate authentic managers who value them as people and professionals, whereas some of the earlier management theories didn’t value kindness or work-life balance.
Management is a constantly evolving field, and it’s both an art and a science. Most modern-day workplaces seamlessly integrate multiple management theories to ensure optimal employee output. While many of these systems are hybrids of multiple theories and strategies, there are a few famous strategies that managers have studied for decades.
“Proper management” is a tricky term. Not every employee, and certainly not every group of employees within a company, responds the same way to various managerial tactics. The best managers are able to use a variety of styles when dealing with different people, while still applying one or two major guiding philosophies for leading a team. This can make modern management challenging.
However, managers can use management theories to help guide them through the process. Management theories, or collections of ideas that provide the framework for effective management strategy, are implemented in modern workplaces to motivate and bring out the best in employees.
Theorists have long speculated on what type of management is best for humans in the professional setting. Management theories, at their core, encompass a set of general principles that guide managers in overseeing a business. These theories revolve around supervision, organization and group performance — serving as a tool employees can use to align with business goals and implement the strategies to achieve them.
Early management theories were rooted in a system of rewards and punishments, where success received recognition and failure led to reprimands. These theories have been widely adopted by business leaders to manage their employees’ performances.
Here are the three most commonly used theories in business management today:
It’s common for managers to use more than one theory to achieve productivity or organizational goals. Managers should understand these different theories and know how to implement them, while also realizing past management theories don’t always tell the whole picture when it comes to effective leadership. [Read how to turn change management into personal development]
You can empower your employees through human relations theory by fostering relationships, creating collaboration and giving them the power to make decisions.
Here’s more on the six most popular management theories discussed above in the infographic.
This one is a classic. Frederick W. Taylor’s scientific theory poses some fascinating questions by diving deeper into the efficiency of work processes. Taylor was an engineer, and he experimented to determine the most efficient and effective ways to get tasks done.
On the surface, this theory held great value. The scientific theory aimed to make work more efficient. Unfortunately, it had some major flaws as well.
Taylor created four principles of his scientific management theory. First, each task should be studied to determine the most efficient way to do the task. This disrupts traditional work processes. Second, workers should be matched to jobs that align with both their abilities and motivation. Third, workers should be monitored closely to ensure they only follow best working practices. Fourth, managers should spend time training employees and planning for future needs.
There are a few positives of this theory. Maximizing efficiency is a great idea. Assigning workers to jobs based on their abilities and motivation levels can also have beneficial effects in some areas.
Major flaws in the theory include the de-emphasis on teamwork. An incredible focus on specific and individualized tasks eliminates creative problem-solving and makes teamwork obsolete. The scientific management theory also encourages micromanagement that could drive today’s employees up the wall.
Fayol developed six functions of management that work in conjunction with 14 management principles. This theory has a few core ideas that live on today, but you’ll rarely find a workplace swearing by Henri Fayol’s 14 principles.
The six functions are as follows:
Some people combine forecasting and planning into one function, simplifying the theory down to five functions. The functions are straightforward: Fayol said managers need to plan for the future, organize necessary resources, direct employees, work collaboratively, and control employees to make sure everyone follows necessary commands.
The 14 principles are outlined below.
There are quality aspects of this theory. Remembering all 14 principles can be challenging and makes more sense for a test on management than an entrepreneur running their business. However, the principles apply in today’s workforce. Concepts like equity and remuneration are important aspects of management. Other principles, like scalar chain, aren’t always necessary. Some businesses find success without clear hierarchies, and the organizational setup depends largely on the business and the size of the company.
Max Weber created the bureaucratic theory, which says an organization will be most efficient if it uses a bureaucratic structure. Weber’s ideal business uses standard rules and procedures to organize itself. He believed this strategy was especially effective for large operations.
The theory includes the five principles described below.
Elements of this theory make sense. Some rules and standards are certainly necessary within every organization. On the other hand, it’s not easy to implement many of these ideas. The theory and practice don’t line up. It’s almost impossible to keep emotions out of business decisions, and sometimes emotions are needed.
If your company offers three months of parental leave, but a new mother has complications with her baby near the end of those three months, some managers might offer another few weeks at home to care for the child. With Weber’s mindset, a manager would coldly ask her to return to work after three months like everyone else. Emotions shouldn’t always dictate decisions, but the best managers can relate to their employees on a personal level.
In stark contrast to Weber’s bureaucratic theory of management, Elton Mayo’s human relations theory emphasizes relationships. Mayo believed that productivity increases when people feel like they are part of a team and feel valued by their co-workers.
The human relations theory emphasizes praise and teamwork as motivational factors. This is basically the opposite of the bureaucratic theory. While emphasizing personal factors is a good idea, there can be too much of a good thing. Valuing relationships above all else can lead to tricky situations like office romances and promotions based on personality rather than job accomplishments.
A happy medium between bureaucratic theory and human relations theory might be a better goal for managers. Some rules are necessary, but you shouldn’t dehumanize employees either.
The systems theory of management believes that each business is a system, much like a living organism, with numerous activities going on to keep the operation rolling along. A business isn’t just its CEO, and a person isn’t just a brain. A person needs their other organs and other key features to live. A business needs more than just a CEO to survive.
While the organism idea is a little extreme — most business operations aren’t life-or-death endeavors — the analogy applies. The systems theory says everything needs to work together for a business to succeed.
There is some truth to this theory, as businesses can benefit from ensuring different departments are on the same page. If a business’s sales team is struggling, it can hurt the whole operation. On the other hand, a sales team struggling doesn’t necessarily hurt the accounting department. Many businesses have separate entities within their organization, so this theory isn’t completely accurate.
The X & Y theory of management assumes there are two different types of workers. Theory X workers lack ambition and drive and need to be ordered around by bosses to do anything. Theory Y workers, on the other hand, enjoy work and strive for self-fulfillment.
Both views of employees are extreme, as most workers fall somewhere between X and Y. Employees don’t need to be ordered to do every task, but most have some need for discipline and rules. Many employees do enjoy work, but it doesn’t always come naturally and requires some encouragement at times. There should be a middle ground for implementing this theory.
“This theory is largely considered to be obsolete today, as few managers begin from a starting position of being highly polar or binary in terms of their management style being just one of two options at opposing ends of a spectrum,” said Polly Kay, copywriter and marketing consultant.
Management theories are always evolving — past theories touch on some vital aspects but ignore others. Good managers incorporate different theory elements to effectively manage their teams.
Management theories popularized in the early to mid-1900s weren’t perfect. That’s unsurprising, as different theories of management have gained steam in recent decades. Popular management theories from the past often touch on important aspects of management but ignore other crucial points. When studying or implementing these theories, it’s important to know the pros and cons of each and how those might apply to your business, even if you aren’t directly using a certain style.
“In the real working world, few managers and business leaders consciously use management theories as rigid frameworks to adhere to or as long-term guiding principles,” said Kay. “That said, many do attempt to consciously incorporate individual elements of their preferred management theories into their broader management style.”
When implementing management theories, you should understand that no two employees or businesses are the same. A certain style may offend one employee, while another employee may respond beautifully. Management is both an art and a science, and being an effective manager requires more than an understanding of certain theories. How they put those theories into practice is what separates good managers from bad ones.
Lauren Kubiak contributed to this article. Source interviews were conducted for a previous version of this article.