Identify the different theories of management and discuss their cost benefits for the business you have studied.
Management refers to the coordinating activities in a business via planning, leading, organising and controlling in order to achieve business objectives. To produce effective management skills people have created theories as a basis of structure in the business because every business whether it being profitable or non-profitable, small, medium or large needs effective management to succeed. The main theories include the classical/scientific theory, behavioral theory, systems theory and contingency theory. Currently reconsidering their management approach, due to lack of discipline in classical theory therefore causing a recent decline in sales and customer base is Power Raid Sports. It is a small business with 15 employees and 3 managers, located in the tertiary industry as it is providing a service. Its prime function is to strive to provide good quality sports equipment to its customer base so they can effectively develop the skills necessary in being productive at the sport they are playing.
The classical/scientific theory was pioneered by Max Weber and Henri Fayol but further developed by Frederick Taylor. They suggested that there is one best way to do a job- a bureaucratic approach (set of rules and regulations that control a business).
Four principles of classical/scientific management are: that in a business they must scientifically examine each part of a task to determine the most efficient method for performing a task, to select suitable workers and train them to use the scientifically developed work methods, to cooperate with workers to guarantee they use the scientific methods and to divide work responsibly so that management is r ...