Management theory

Management – is a professional activity aimed at achievement of goals through optimal use of human and material resources on the basis of the principles, methods, and functions of the economic mechanism of management theory.

At its core, the term is synonymous with the word “governance”. However, “management” is a more narrow concept and applies only to the management of various social and economic processes across the enterprise or organization. This concept includes:

• Marketing and forecasting of market conditions;
• Manufacturer goods with minimal costs and maximum profits from their implementation;
• Analysis of information and development of a plan to achieve the intended purpose;
• Manage personnel, which includes knowledge of the principles of psychology and sociology.

The Main skill of a born Manager is the ability to successfully solve problems. In a small firm Manager usually performs the Director himself. But if the firm reaches medium and large sizes, he comes to the aid of Manager (Manager, organizer, head). And it often happens that thanks to his professional skills a Manager solves a problem even better than the Director.

Management Theory – the science of the methods and principles of such management. For a better understanding of this scientific discipline is useful to consider its historical development. Evolution of management theory began more than a hundred years ago. It is possible to allocate 5 basic established schools of management thought:

• Schools that emphasize scientific methods of management (from 1885. 1920).

• the Classical school (1920 – 1950).

• the School, who has studied the impact of human relations (1930. 1950).

• the Behaviorist school, which is also called the school of behavioral Sciences (since 1950. today).

• school of Mathematics or a quantitative approach (with 1950. present).

At the heart of the school of scientific management based on the principles and ideas of Frederick Taylor. This theory of management pays great attention to scientific study of each type of work, specialization of labor and the introduction of a differential pay system. Taylor believed that by using observation, measurement, logic, it is possible to significantly improve the operation of manual labour. Other well-known representatives of this trend are Henry Gantt, wife Lillian and Frank Gilbreth.

The Founder of the classical school was Henri fayol. Its representatives for the first time separated the management from the production, select it in the independent activity. This theory of management focused on the improvement and development of principles of process management of the enterprise as a whole. A. fayol developed 14 universal principles of management while Weber outlined the foundations of the bureaucratic approach to management.

The Doctrine of "human relations" became the cornerstone of the next school of management – school, which was considered the organization as a specific "social system". The founders of this school (Elton Mayo, Abraham Maslow, Fritz Roethlisberger) noticed that labor productivity is influenced by human needs. According to their view, the Manager should seek informal leadership and to conquer "the favor of the people”.

In contrast, supporters of the school of human relations that focused on the needs of the individual, representatives of the behavioral school (F. Herzberg, C. Argyris , D. McGregor, R. Linkert) considered and studied the behavior of people in the group both formal and informal. In these two schools developed the theory of motivation in management.

At the school of mathematics management is the specific logical process that can be described by an appropriate mathematical model. Therefore, attention is focused on economic-mathematical methods, the use of statistics and computerization of the management of the organization. Among the founders of this school the most well-known City of My, D. Woodward, D. March, G. Ackoff, N. Lore, D. Thompson.

The Relationship of the above schools leads to the creation of highly efficient management. Every direction like the strands of rope that intertwined to create the highest strength. Modern management theory has absorbed and continues to deepen and develop the best achievements and ideas of each school.