Management Theories That Small Business Owners Should Embrace
Most of the leadership approaches used by people today are derived from popular theorists in the history of business and human resource management. They apply to all businesses whether small or big. If you are planning to start a small business anywhere in the world and have made arrangements with the work permit agencies for documentation, then it is time to equip yourself with the relevant management theories. This publication is the perfect document for you.
Henri Fayol’s Principles of Management
This French mining engineer is one of the main contributors to the management theories used in modern times. According to his analysis from the perspective of a manager, there are crucial functions of management, which include planning, forecasting, commanding, organizing and controlling. However, this is not what he is known for. His 14 principles of management are what most, if not all, organizations use to guide their daily tasks.
Scientific Management of Frederick Taylor
He is known for initiating the study of how productive a worker can be and how to increase this productivity in the best way. The principles of scientific management have four pillars, which were derived from his research. He emphasized specialization and specialization in work to make sure that workers perform a job they are capable of doing. One of the drawbacks that came with his arguments was his lack of focus on humanity in favor of a focus on productivity alone. This hinders his theory’s full practice in today’s management of businesses and organizations.
Bureaucratic Management by Max Weber
Another common name in the study of management is that of Max Weber. His theory of management is commonly used because it promotes the use of set rules of governance in a hierarchical manner. What this means is that the top boss forms the apex of the triangle of hierarchy and that every person communicates to their juniors clearly all the way to the bottom. Another notable argument that he made is for a division of labor where each employee understands what she or he needs to do and the procedure for doing it. It rather ignores relationships and freedom among workers in favor of performance.
Theory X and Y of Douglas McGregor
Although this is not a popular theory that people use today, theory X and Y is still applicable. The two theories differ, and managers can choose the one to use in their companies. Theory X is applied if a manager feels that the staff needs an authoritative approach because they do not like the work. On the other hand, the boss can use theory Y if she or he feels that employees are self-driven and take initiative in what they do.
Human Relations Theory by Elton Mayo
The name Mayo is also common in today’s management approaches. The emphasis by this Australian psychologist was on handling employees who are not satisfied with the work they do. When he improved the working conditions, he noted that there was no change in productivity. So, he observed changes to different parameters like those of improved relations with the employees, and this worked well.
As a small business owner, you can take the right steps from the beginning by embracing these theories of management.