COLLEGE OF BUSINESS EDUCATION

BASIC CERTIFICATE OF BUSINESS ADMINISTRATION IN HUMAN

RESOURCE MANAGEMENT

MODULE NAME: BASICS OF PRINCIPLES AND PRACTICES OF MANAGEMENT

MODULE CODE: BAT04209

CLASS: BTCHRM

FACILITATOR: MR BRIGHTON BUSEIN

SEO TWO - NOTES

TEACHING NOTES - THEORIES OF MANAGEMENT

Required Skills:

Ability to apply theories of management in work organizations.

Learning Outcomes

By the end of this topic, students should be able to:

1. Define the term theory.

2. State theories of management according to Frederick Taylor, Henry Fayol, Max Weber
and Elton Mayo.
3. Explain the importance of each management theory.
4. Apply management theories in work organizations.

1.0 INTRODUCTION TO MANAGEMENT THEORIES

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Organizations require proper management in order to achieve their goals effectively. Different
scholars developed management theories to guide managers on how to plan, organize, direct
and control organizational activities.

Management theories help managers understand how organizations operate and how
employees should be managed.

Examples of organizations applying management theories include:

 Schools
 Hospitals
 Banks
 Government institutions
 Industries
 Non-government organizations

2.0 MEANING OF THEORY

A theory is a set of ideas or principles used to explain how something works.

In management, a theory is a systematic explanation of how managers can effectively manage

organizations and employees.

According to Koontz and Weihrich (2010), management theories provide guidance for
managerial practices and decision making.

Importance of Management Theories

1. Help managers solve organizational problems.

2. Improve efficiency and productivity.
3. Guide decision making.
4. Improve employee performance.
5. Promote proper coordination in organizations.
6. Help organizations achieve goals.

3.0 FREDERICK TAYLOR’S SCIENTIFIC MANAGEMENT THEORY

Background of Frederick Taylor

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Frederick Winslow Taylor was an American engineer known as the father of Scientific
Management. He focused on improving efficiency and productivity in organizations.

Taylor believed that work should be studied scientifically in order to improve performance.

Main Ideas of Scientific Management Theory

1. Science, Not Rule of Thumb

Managers should use scientific methods instead of guesswork.

Example

Using time studies to determine the best method of performing a task.

2. Harmony, Not Discord

Managers and workers should cooperate instead of fighting.

Example

Employers and employees working together to improve production.

3. Cooperation, Not Individualism

There should be teamwork between management and employees.

Example

Supervisors guiding employees during work activities.

4. Development of Employees to Maximum Efficiency

Employees should be trained according to their abilities.

Example

Organizations conducting staff training programs.

Importance of Scientific Management Theory

1. Increases efficiency in organizations.

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 2. Improves employee productivity.
3. Encourages specialization.
4. Promotes training and development.
5. Improves work methods.
6. Helps reduce wastage of resources.

Limitations of Scientific Management Theory

1. Focuses too much on productivity.

2. Ignores social needs of employees.
3. May reduce employee creativity.
4. Can lead to worker fatigue.

4.0 HENRY FAYOL’S ADMINISTRATIVE MANAGEMENT THEORY

Background of Henry Fayol

Henry Fayol was a French industrialist who developed Administrative Management Theory. He
focused on management functions and principles that managers should follow.

Fayol believed management is a universal activity that can be applied in all organizations.

Fayol’s Functions of Management

1. Planning

Setting organizational goals and deciding how to achieve them.

2. Organizing

Arranging resources and activities effectively.

3. Directing

Guiding and supervising employees.

4. Coordinating

Ensuring activities work together smoothly.

5. Controlling

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Monitoring activities to achieve organizational goals.

Importance of Administrative Management Theory

1. Provides clear management guidelines.

2. Improves coordination in organizations.
3. Helps managers perform their duties effectively.
4. Promotes discipline and order.
5. Helps organizations achieve goals.
6. Improves communication and supervision.

Limitations of Administrative Theory

1. Some principles are too general.

2. Does not consider human emotions.
3. May not fit all organizations.

5.0 MAX WEBER’S BUREAUCRATIC THEORY

Background of Max Weber

Max Weber was a German sociologist who developed Bureaucratic Theory. He believed
organizations should operate through rules, hierarchy and formal procedures.

Characteristics of Bureaucratic Theory

1. Division of Work

Employees perform specialized duties.

2. Hierarchy of Authority

Organizations should have clear levels of authority.

3. Rules and Regulations

Organizations should follow formal rules.

4. Formal Selection of Employees

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Workers should be selected based on qualifications.

5. Impersonal Relationships

Managers should treat employees fairly without favoritism.

Importance of Bureaucratic Theory

1. Promotes discipline and order.

2. Improves accountability.
3. Ensures fairness in organizations.
4. Improves efficiency.
5. Clarifies authority and responsibilities.
6. Encourages professionalism.

Limitations of Bureaucratic Theory

1. Too many rules may delay decisions.

2. Reduces flexibility.
3. Employees may become less innovative.
4. Communication may become slow.

6.0 ELTON MAYO’S HUMAN RELATIONS THEORY

Background of Elton Mayo

Elton Mayo was an Australian psychologist who developed Human Relations Theory after
conducting the Hawthorne Studies.

Mayo believed that employees are motivated not only by money but also by social relationships
and recognition.

Main Ideas of Human Relations Theory

1. Employees Have Social Needs

Workers need good relationships at work.

2. Teamwork is Important

Employees perform better when working together.

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3. Employee Motivation Improves Performance

Motivated employees work harder.

4. Communication is Important

Managers should communicate effectively with employees.

5. Employee Participation Improves Morale

Employees should be involved in decision making.

Importance of Human Relations Theory

1. Improves employee motivation.

2. Encourages teamwork.
3. Improves communication.
4. Reduces conflicts in organizations.
5. Improves employee morale.
6. Increases productivity.

Limitations of Human Relations Theory

1. Focuses too much on social relations.

2. Ignores some organizational structures.
3. May reduce managerial authority.
4. Some employees are motivated by money more than relationships.

7.0 COMPARISON OF MANAGEMENT THEORIES

Theory Main Focus Key Contributor
Scientific Management Theory Efficiency and productivity Frederick Taylor
Administrative Theory Management functions and principles Henry Fayol
Bureaucratic Theory Rules and hierarchy Max Weber
Human Relations Theory Employee welfare and social relations Elton Mayo

8.0 APPLICATION OF MANAGEMENT THEORIES IN ORGANIZATIONS

1. Employee Training

Organizations train workers to improve efficiency.

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Example

Banks conduct customer service training.

2. Organizational Structure

Organizations use hierarchy and reporting systems.

Example

Government ministries follow chain of command.

3. Employee Motivation

Managers motivate employees through rewards and recognition.

Example

Best worker awards in companies.

4. Use of Rules and Procedures

Organizations establish rules to guide operations.

Example

Attendance and disciplinary procedures in schools.

5. Teamwork Promotion

Managers encourage cooperation among employees.

Example

Departments working together in hospitals.

9.0 ADVANTAGES OF MANAGEMENT THEORIES

1. Improve organizational performance.

2. Promote efficiency and productivity.
3. Help managers solve problems.

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 4. Improve communication and coordination.
5. Encourage professionalism.
6. Help organizations achieve objectives.

10.0 SUMMARY

Management theories are important in guiding managers on how to manage organizations

effectively. Frederick Taylor emphasized efficiency, Henry Fayol focused on management
principles and functions, Max Weber emphasized rules and hierarchy, while Elton Mayo
focused on employee relations and motivation. These theories continue to influence modern
management practices.

11.0 REVISION QUESTIONS

1. Define the term theory.

2. Explain Scientific Management Theory according to Frederick Taylor.
3. Describe Fayol’s Administrative Management Theory.
4. Explain the characteristics of Bureaucratic Theory.
5. Explain the importance of Human Relations Theory.
6. Compare any two management theories.
7. Describe applications of management theories in organizations.

12.0 REFERENCES

1. Taylor, F.W. (1911). The Principles of Scientific Management. New York: Harper &
Brothers.
2. Fayol, H. (1949). General and Industrial Management. London: Pitman Publishing.
3. Weber, M. (1947). The Theory of Social and Economic Organization. New York: Free
Press.
4. Mayo, E. (1933). The Human Problems of an Industrial Civilization. New York: Macmillan.
5. Koontz, H., & Weihrich, H. (2010). Essentials of Management. New Delhi: Tata McGraw-
Hill.
6. Robbins, S.P., & Coulter, M. (2018). Management. Pearson Education.
7. Cole, G.A. (2004). Management Theory and Practice. London: Thomson Learning.

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