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The document discusses four types of management theories: Systems Management, Chaos Theory, Freedom-Based Management Theory, and Contingency Management Theory, each emphasizing different approaches to business management. It highlights the importance of understanding how decisions impact various aspects of a business and the need for flexibility in management styles. Additionally, it addresses the confusion among management theories and advocates for a Global Theory of Management that unifies various perspectives.

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11 views

Lec 2

The document discusses four types of management theories: Systems Management, Chaos Theory, Freedom-Based Management Theory, and Contingency Management Theory, each emphasizing different approaches to business management. It highlights the importance of understanding how decisions impact various aspects of a business and the need for flexibility in management styles. Additionally, it addresses the confusion among management theories and advocates for a Global Theory of Management that unifies various perspectives.

Uploaded by

ammar.mipad6
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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University of Baghdad

College of Nursing
Community Health Nursing Department
Leadership and Management in Nursing

‫المحاضرة الثانية‬

Management Theories
Four Types of Management Theory

The aim of business management is to find the most efficient and productive ways
of operating a business. This usually entails finding strategies to coordinate the
different branches of a business. Each business management type is determined by
an underlying management theory, which determines the strategy and long term
goals of the business. For instance, a successful management theory provides ways
to coordinate the financial, marketing, human resources and information
technology of a company.

1. Systems Management

o The systems management theory requires business managers to view


their company or organization as a system as opposed to a monolithic
structure. This forces managers to reflect on how their decisions in
one aspect of the business, such as laying off workers, will affect
other parts of the company, such as customer service. To do this,
business leaders divide the company into departments, sections and
subsections as part of an overall framework.

2. Chaos Theory

o A growing number of business theorists view large businesses as live


creatures which are part of a complex and erratic world. According to
this view, specific events are rarely ever controlled, and the energy
expended to manage the company must grow as the business grows.
Much like humans, these trends continue growing, according to the
chaos theory, until the system becomes overly complex, joins another
complex structure and continues to grow.

1
3. Freedom-Based Management Theory

o The freedom-based management theory suggests there is no reason


why a management system should be organized in a hierarchical
structure where employees are controlled and restricted by
management. This theory supports the use of fully empowered
employees that are more like entrepreneurs and act in full freedom
while still functioning with accountability and responsibility.

4. Contingency Management Theory

o The contingency theory is based around the idea there is no single


right answer and that the best choices in a given situation depend on
numerous factors, which must be considered. A company, according
to contingency theory, should take into account all aspects of a
situation when making a decision, including which type of
management system it chooses. For instance, a leader using
contingency theory may decide an autocratic and hierarchical
management system is the best when leading soldiers into battle, but
not necessarily the best if managing a group of scientists.

Global Theory of Management

Today, there are many schools of management. There are also many management
experts. Each school and each expert gives their own theory about management.
They say that their theory is right, and the theories of the other experts are wrong.
There are so many management theories. We cannot say, which one right and,
which one is wrong. This has caused a lot of confusion in the field of management.

Harold Koontz warned all management experts to stop this jungle warfare because
of its destructive nature. He asked them to remove all these confusions. This is
because if confusion exists, then management will not have universal application.
So now all the management theories / thoughts / schools / experts are converging.
That is, they are coming together at a same point. All the experts are agreeing with
each other. This unification or convergence of the management thoughts, now
being adopted globally, is called as the "Global Theory of Management."

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