11 Essential Management Theories for Small Business Success

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11 Essential Management Theories for Small Business Success
[```html 11 Most Important Management Theories for Small Business

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The Importance of Management Theories

There are many management theories floating around in the business world. Some are old, and some are new. But pretty much all of them are based — in one form or another — on one of the 11 management theories on this list.

Why is that important? Shouldn’t you concentrate on running your business instead of reading up on old ideas? Yes, you should focus on making your business a success. But that success depends, in large part, on the way you lead your employees.

That’s why these management theories are so important: they give you concrete ways to inspire greatness in your team.

11 Essential Management Theories

1) Systems Theory

Illustration of systems management theory

At its creation, Systems Theory (or The Systems Approach) had nothing to do with business management and everything to do with biology.

The premise is that a system is composed of interacting elements that are affected by their environment. Because of this interaction, the system as a whole can evolve and self-regulate.

2) Principles of Administrative Management

Henri Fayol (1841-1925) developed his principles of administrative management as a top-down approach to examining a business. Based on managers' responsibilities, he developed 14 principles that influence how managers should lead their teams.

3) Bureaucratic Management

Small business manager's desk

Max Weber (1864-1920) took a more sociological approach when creating his bureaucratic management theory, emphasizing clear rules, roles, and hierarchical organization.

4) Scientific Management

Frederick Taylor (1856-1915) conducted experiments to optimize workers’ productivity, resulting in his belief that the scientific method is the best determiner of efficiency in the workplace.

5) Theories X and Y

Managers discussing management theories X and Y

Douglas McGregor (1906-1964) published his book The Human Side Of Enterprise, outlining two styles of management: Theory X (authoritarian) and Theory Y (collaborative).

6) Human Relations Theory

Small business manager talking on the phone

Elton Mayo (1880-1949) concluded that employees are more motivated by social factors than environmental factors, leading to his Human Relations Theory.

7) Classical Management

Classical Management Theory focuses solely on the economics of organizing workers, advocating principles like labor specialization and centralized leadership.

8) Contingency Management

Example of one of the business management theories

Fred Fiedler proposed that effective leadership is directly related to the traits displayed in any given situation. There is no one-size-fits-all management style.

9) Modern Management

Modern Management Theory responds to rapid change with a combination of technological and human elements, emphasizing mathematical analysis and complex employee needs.

10) Quantitative Management

Example of a numbers-oriented management theories approach

Developed during WWII for managerial efficiency, this theory uses quantitative analysis to calculate the risks, benefits, and drawbacks of specific business actions.

11) Organizations as Learning Systems

This theory focuses on continual learning and adaptation, encouraging teamwork and information sharing to ensure the business functions successfully as an integrated system.

The Change Is Worth The Effort

Implementing changes to your management theory and style is challenging. But accommodating the attitudes and natural habits of your employees will result in improved morale, decreased turnover, and better employee engagement — well worth the effort.

For more free resources to help you manage your business better, organize and schedule your team, and track and calculate labor costs, visit GetSling.com today.

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  • Jordan Van Maanen