Mini Pharmaceutical MBA

Management as a field has evolved through different theories (sometimes called schools of thought), each reflecting how people believed organizations should be run at that time. Here are the main management theories:

1. Classical Management Theories (late 19th – early 20th century)

These focused on efficiency, structure, and productivity.

• Scientific Management (Frederick Taylor) → Use time-and-motion studies, standardization, incentives to improve worker productivity.

• Administrative Theory (Henri Fayol) → 14 principles of management (division of work, authority, discipline, unity of command, etc.).

• Bureaucratic Theory (Max Weber) → Hierarchy, rules, impersonality, and merit-based advancement.

📌 Example: Early factories where workers were closely monitored to maximize efficiency.

2. Behavioral Management Theories (1930s–1950s)

Shifted focus from machines to people.

• Hawthorne Studies (Elton Mayo) → Showed that social and psychological factors affect productivity.

• Maslow’s Hierarchy of Needs → Motivation depends on satisfying needs (physiological → self-actualization).

• Douglas McGregor (Theory X & Y) → X = employees are lazy and need control, Y = employees are self-motivated if empowered.

📌 Example: Companies introducing teamwork, motivation programs, and employee welfare initiatives.

3. Quantitative / Management Science Theory (1940s–1960s)

Applied mathematics, statistics, and models to decision-making.

• Operations research, linear programming, decision theory, forecasting models.
  📌 Example: Airlines using optimization models for scheduling flights.

4. Systems Theory (1950s–1960s)

Organizations viewed as systems of interrelated parts.

• Inputs → Processes → Outputs → Feedback.
  📌 Example: A hospital where doctors, nurses, equipment, and administration work together as one system.

5. Contingency Theory (1960s–1970s)

“No one best way” → The best management style depends on the situation (environment, size, technology, people).
📌 Example: A startup may need flexible leadership, while a large bank needs structured rules.

6. Modern Theories (1980s–today)

• Total Quality Management (Deming, Juran) → Continuous improvement, customer focus.

• Lean Management & Six Sigma → Efficiency, waste reduction, quality improvement.

• Learning Organization (Peter Senge) → Organizations must continuously adapt and learn.

• Management by Objectives (Drucker) → Setting measurable goals and aligning employees.

• Agile Management → Flexibility, collaboration, and iterative progress (popular in tech).

📌 Example: Toyota using Lean Production; tech firms using Agile and Scrum.

✅ In summary, the main theories of management can be grouped as:

1. Classical (efficiency, structure)

2. Behavioral (human relations, motivation)

3. Quantitative (math & models)

4. Systems (organization as a system)

5. Contingency (situational approach)

6. Modern approaches (TQM, Lean, Agile, etc.).