Theory of management

Business

Management is a professional activity,aimed at achieving the goals by using the optimal use of labor and material resources on the basis of the principles, methods and functions of the economic mechanism of management theory.

In essence, this term is synonymous withthe words "management". However, "management" is a narrower concept and applies only to the management of various social and economic processes in the scale of the enterprise or organization. This concept includes:

  • marketing and market forecasting;
  • the manufacture of goods with minimal costs and obtaining the maximum profit from their sale;
  • the analysis of information and drawing up a plan for achieving the intended goal;
  • personnel management, which implies knowledge of the basics of psychology and sociology.

The main skill of a born manager isability to successfully solve problems. In a small firm, the manager's functions are usually performed by the director himself. But if the firm reaches medium and large sizes, then the manager (manager, organizer, manager) comes to his aid. And often it happens that it is thanks to his professional skills that the manager solves many problems even better than the director.

The theory of management is the science of methods andprinciples of such management. For a better understanding of this scientific discipline, it is useful to consider its historical development. The evolution of management theory began more than a hundred years ago. It is possible to distinguish 5 basic formed schools of management thought:

• A school that focuses on the scientific methods of management (from 1885 to 1920).

• Classical school (1920 - 1950).

• School that studied the impact of human relations (from 1930 to 1950).

• Behavioral school, also called the school of behavioral sciences (from 1950 to the present day).

• Mathematical school or quantitative approach (from 1950 to the present).

The school of scientific management is based on the principles ofand the ideas of Frederick Taylor. This theory of management pays much attention to the scientific study of each type of labor activity, the specialization of labor and the introduction of a differential system of payment. Taylor believed that, using observation, measurement, logic, it is possible to significantly improve manual operations. Other well-known representatives of this direction are Henry Gantt, the wife of Lillian and Frank Gilbret.

The founder of the classical school was HenriFayol. Its representatives for the first time separated management from production, allocating it to an independent type of activity. This theory of management focused on improving and developing the principles of the enterprise management process as a whole. A. Fayol developed 14 universal principles of management, and M. Weber formulated the basis for a bureaucratic approach to management.

The doctrine of "human relations" has becomethe cornerstone of the next school of management - a school that viewed the organization as a specific "social system". The founders of this school (Elton Mayo, Abraham Maslow, Fritz Rothlisberger) noticed that the productivity of labor is influenced by human needs. According to them, the manager should strive for informal leadership and win "people's favor".

Unlike the supporters of the school of humanrelations that emphasized the needs of an individual, representatives of the behaviourist school (F. Herzberg, K. Arjiris, D. McGregor, R. Laynckert) examined and studied the behavior of people in the group, both formal and informal. In these two schools, theories of motivation in management are developed.

In mathematics school management isa specific logical process that can be described by an appropriate mathematical model. Therefore, attention is directed to economic and mathematical methods, the use of statistics and the computerization of organization management. Among the founders of this school are the most famous G. Smoi, D. Woodward, D. March, G. Ackoff, N. Lowre, D. Thompson.

The interconnection of the above schools leads tocreation of highly effective management. Each direction is like a string of control rope, which, intertwining with each other, creates the highest strength. Modern management theory has absorbed and continues to deepen and develop all the best achievements and ideas of each school.

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