• Category:
  • Document type:
  • Level:
  • Page:
  • Words:

Management Theories


Management theories are important because they help in enhancing production and the quality of services in organizations (Cole & ‎ Kelly 2015). Organizations want to get the most out of their employees and the knowledge of how to handle people is imperative (Mahmood, Basharat & Bashir 2012). Managers use a combination of theories to accomplish this goal depending on the organization and the workers as well as the purpose. These management theories include Systems theory, Chaos theory and Contingency theory among others (Ehiobuche & Tu 2012). These theories are essential in management. This paper will discuss the value of management theories to managers.

Understanding Reality

Managers today can significantly improve their management skills if they understand management theories from the past. Managers need an excellent understanding of management theories because they serve as guidelines for managers and by working with them many errors committed while handling people in an organization can be evaded (Sharma & Jain 2013). Management theories are essential because they provide guidelines to managers in accomplishing their managerial tasks. Through these ideologies, managers can develop their knowledge, capacity and perception in diverse administrative circumstances (Ehiobuche & Tu 2012). The management theories assist them in learning from the mistakes they have made and hence direct managers in taking accurate decisions within the organization in due time.

Maximum Resource Use

The management theories focus on designed activities and organized coordination of people and resources in the organization (Cole & ‎ Kelly 2015). The principles are intended to maximize on achieving the best from the organization’s workers and resources. For instance, these theories recommend the reduction uneconomical activities so as to minimize time wastage in completing a task. Saving time, efforts and energy enable an organization to maximize eventually on resources (Sharma & Jain 2013). Managers need to put these theories into practice within their organizations so that they may attain maximum utility of their resources.

Decision Making

Managers are faced with the task of making various choices on a daily basis, and, therefore, they need to evaluate cautiously organization’s resources to make a proper decision using the materials resources at hand in the best way possible (Mahmood, Basharat & Bashir 2012). The management theories allow managers to look into diverse problems within the organization in a scientific and systematic manner (Sharma & Jain 2013). For instance, an organization may want to implement a scientific approach to the effective use of time by conducting a time study so that they may determine the average time needed to perform a task to complete a task rather than leaving it open or at manager’s will (Cole & ‎ Kelly 2015). By using these theories, managers are able to come up with the standard time required to perform a certain task.

Environmental Requirement Changes

All businessmen are required to transform their organizations by making necessary changes in regard to changes being observed in the business environment (Ehiobuche & Tu 2012). Management theories guide managers in executing these changes correctly and at the precise stage within the organization (Cole & ‎ Kelly 2015). Even though these guidelines are universal and comparative, managers can adapt them to make changes suitable for their organization (Sharma & Jain 2013).

Proper Administration

The administration remains a fundamental role of executives through which key ideas and policies are made in the organization (Mahmood, Basharat & Bashir 2012). Management theories, therefore, form the basis for numerous managerial systems to be made so that the organization may function systematically (Ehiobuche & Tu 2012). The management principles help to increase efficiency in administration because they discourage individual biases and presumptions since the theories uphold neutral and systematic decisions (Sharma & Jain 2013). For instance, the theories of unity of command, unity of direction and scalar chain leads to organized smooth running of the organization (Mahmood, Basharat & Bashir 2012).

Unity of command ensures that there is no confusion of managers in the organization, Scalar chain ensures the efficient movement of data and unity of direction unites the efforts of the overall employees in mutual direction (Cole & ‎ Kelly 2015). In other words, all these theories work together towards achieving efficiency in administration within an organization.

Social Responsibility Fulfillment

An industry is a creation of society, and it uses resources from the people and it must give back to the people by accomplishing certain social responsibilities (Ehiobuche & Tu 2012). Management theories will not only help a business in realizing its objectives but will also direct the managers to achieve shared responsibilities (Mahmood, Basharat & Bashir 2012). For instance, the principle of fair remuneration emphasizes sufficient income to workers and also takes into consideration the concern of employees (Sharma & Jain 2013). Managers can attain excellent working relationships with their staff members if they embrace this principle.

Enhancing Management Training

Management theories center on scientific assessments and rational thinking (Cole & ‎ Kelly 2015). Consequently, these theories assist in conducting research and development in management training (Sharma & Jain 2013). The management principles offer structured frame of knowledge which can help in doing research so as to create even more knowledge hence these principles provide a base for new ideas, imagination as well as research and development (Mahmood, Basharat & Bashir 2012). Understanding these theories helps to enhance managerial training and teaching. Certified courses such as BBA and MBA educate these philosophies in their curriculum (Ehiobuche & Tu 2012). The overall team of managers in an organization is tested of their capacity through aptitude tests which are based on management theories (Cole & ‎ Kelly 2015).


In conclusion, this paper has discussed the importance of understanding management theories by managers. This is because management theories enable managers to understand how they can enhance the productivity of the workers in an organization. Through management theories, managers get to understand the reality concerning their organizations and this assists in decision making concerning the organization. Management theories also assist managers in undertaking changes within the organization as well as in providing proper administration. In addition, management theories help in maximizing resource utility, performing social responsibility and enhancing management training. For managers to achieve maximum labor production in the organization they need to study the art of managing people and management theories provide the base for learning how to handle people.


Cole G. & ‎ Kelly P (2015). Management Theory and Practice. Boston: Cengage Learning.

Ehiobuche C. & Tu H. (2012). Towards the Relevance of Classical Management Theories and Organizational Behavior, ASBBS Annual Conference: Las Vegas. Volume 19 Number 1.

Mahmood Z., Basharat M & Bashir Z. (2012). Review of Classical Management Theories, International Journal of Social Sciences and Education, Volume 2 Issue: 1.

Sharma M. & Jain S. (2013). Leadership Management: Principles, Models and Theories. Global Journal of Management and Business Studies.

Volume 3, Number 3 pp. 309-318