Management Theories, Approaches and Chronology
Submitted by: SIYA GOYAL - 2211001146
Subject: PROJECT MANAGEMENT
Adam Smith (1776)
Adam Smith, though not a management theorist directly, played a huge role in shaping early
management thought through his iconic book “The Wealth of Nations.”
• He introduced the idea of division of labour, which made processes more efficient and laid
the foundation for specialization.
• His views supported the rise of factory systems and mass production, which became key
components of industrial management.
• While his work was more economic in nature, it heavily influenced how work was structured
in the early stages of organizational development.
Early 20th Century: This era gave birth to the formal field of management.
F.W. Taylor – Scientific Management
• Known as the father of scientific management.
• Believed in increasing productivity by analysing tasks scientifically.
• Introduced ideas like time studies, standardized work methods, and worker training.
• However, his approach was often criticized for being too mechanical and ignoring human
aspects.
Henry Fayol – Administrative Theory
• Took a more top-down, organizational perspective than Taylor.
• Proposed 14 principles of management (e.g., unity of command, division of work, etc.).
• Defined management functions: planning, organizing, commanding, coordinating, and
controlling.
• Believed management was a universal process and could be taught.
Max Weber – Bureaucratic Management
• Focused on designing formal structures with rules, hierarchy, and authority.
• Advocated for a professional, impersonal workplace with clear responsibilities.
• While efficient, his model was later criticized for being too rigid and rule-bound.
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(1930s–1950s): In reaction to mechanical views of Classical theorists, newer thinkers focused on the
human side of work.
Elton Mayo (1880–1949) – Hawthorne Studies
• Discovered that employee morale and relationships affected productivity more than
physical conditions.
• Laid foundation for the Human Relations Movement.
Abraham Maslow – Hierarchy of Needs
• Emphasized the importance of fulfilling psychological and self-actualization needs of
employees.
Douglas McGregor – Theory X and Theory Y
• Theory X: Assumes employees dislike work.
• Theory Y: Assumes employees are self-motivated and seek responsibility.
• Influenced modern leadership styles.
Systems and Contingency Approaches (1960s–1980s)
• Systems Approach: Saw an organization as a system of interrelated parts working together
(inputs → processes → outputs).
• Contingency Approach: Rejected “one best way” mindset. Emphasized that management
practices should vary based on the situation.
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Modern Approaches (1990s–Present)
A. Total Quality Management (TQM)
• Promoted by W. Edwards Deming and Joseph Juran.
• Focuses on continuous improvement, customer satisfaction, and quality at every stage.
B. Lean & Six Sigma
• Emphasize efficiency, waste reduction, and data-driven decision-making.
C. Agile Management
• Especially used in IT and project-based industries.
• Prioritizes collaboration, customer feedback, and flexibility over rigid planning.
D. Emotional Intelligence in Leadership (Daniel Goleman)
• Recent focus has shifted toward soft skills, emotional intelligence, and empathy in leadership.
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what is the function of an organization in terms of project management.
In terms of project management, the function of an organization involves systematically planning,
coordinating, and managing resources and processes to achieve specific project goals aligned with
the organization's strategic objectives. Key functions include:
• Planning and Scheduling: Defining project scope, timelines, milestones, and deliverables.
• Resource Management: Efficient allocation and utilization of human, financial, and material
resources.
• Governance and Compliance: Establishing frameworks, policies, and standards to ensure
projects adhere to organizational best practices and legal requirements.
• Risk Management: Identifying, analyzing, and mitigating potential risks to ensure project
stability.
• Communication and Stakeholder Management: Ensuring effective information flow and
engagement with all relevant parties.
• Monitoring and Control: Tracking project progress, quality, and performance to ensure goals
are met on time and within budget.
• Knowledge Management: Capturing and sharing lessons learned and best practices for
continuous improvement.
Overall, organizations provide the structure, processes, and support needed to execute projects
successfully while aligning them with broader strategic goals, ensuring effective coordination across
multiple projects or portfolios, and enhancing project outcomes.
levels of management: top level management, middle level management and first line management
and NON MANAGEMENT Staff
Here is an overview of the levels of management and non-management staff in an organization:
1. Top Level Management
• Who: Board of directors, CEO, Managing Director, President, CFO, COO, and other C-level
executives.
• Role: Sets overall goals, policies, vision, and strategic direction of the organization.
• Functions: Planning, organization-wide decision making, policy formulation, resource
allocation, and liaison with external stakeholders.
• Focus: Long-term and big-picture management of the entire organization.
2. Middle Level Management
• Who: Department heads, branch managers, division managers, regional managers, and other
mid-tier managers.
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• Role: Acts as a bridge between top management and first-line managers.
• Functions: Implements strategic plans from top management, supervises departments,
coordinates activities, manages resources at departmental level, and resolves day-to-day
issues.
• Focus: Translating strategies into operational plans, team supervision, and organizational
coordination.
3. First Line Management (Lower Level Management)
• Who: Supervisors, foremen, section officers, team leaders, and office managers.
• Role: Direct supervision of non-managerial staff.
• Functions: Assigns daily work, monitors employee performance, trains new employees,
maintains discipline, and ensures operational efficiency.
• Focus: Day-to-day operations and direct management of the workforce.
4. Non-Management Staff
• Who: Employees without supervisory or managerial responsibilities like clerks, account
assistants, operators, salespersons, technicians, and other operational workers.
• Role: Execute assigned tasks in line with organizational goals.
• Functions: Carry out routine tasks aligned with their roles, support managers, and contribute
to department productivity.
• Focus: Task execution and productivity without decision-making authority.
This hierarchy ensures smooth functioning by dividing authority, responsibility, and communication
in the organization from strategic to operational levels.
STRATEGICAL PLAN
TACTICAL PLAN
OPERATIONAL PLAN
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Top Level Management
├─ CEO
├─ Board of Directors
├─ CFO (Chief Financial Officer)
└─ COO (Chief Operating Officer)
▼ (downward flow of authority)
Middle Level Management
├─ Department Heads
├─ Branch Managers
└─ Regional Managers
▼ (downward flow of authority)
First Line Management
├─ Supervisors
├─ Team Leaders
└─ Section Officers
▼ (downward flow of authority)
Non-Management Staff
├─ Clerks
├─ Technicians
└─ Operators
Upward Communication and Feedback loops connect each lower level back to the higher level.
Cross-functional Coordination Arrows exist between:
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- Middle Level Management and First Line Management
- Different Departments within Middle Level Management
In project management:
Planning
Planning is the process of defining the project objectives, scope, tasks, timelines, resources, and
activities required to achieve the project goals. It involves setting clear goals, identifying deliverables,
estimating time and costs, assessing risks, and developing a detailed roadmap (project plan) to guide
the execution, monitoring, and control of the project. Planning ensures that all aspects of the project
are organized in advance to achieve success efficiently.
Organizing
Organizing in project management involves arranging and structuring resources (human, financial,
material) and tasks in a way that facilitates the implementation of the project plan. It includes
defining roles and responsibilities, establishing the project team and communication channels,
allocating resources, and setting up workflows and processes. Organizing ensures that the project
environment is structured for coordinated execution and collaboration among team members.
In summary, planning defines what to do and how while organizing arranges who will do it and with
what resources
Authority vs. Power
• Authority is the formal, legitimate right given to a person or position to make decisions, give
orders, and allocate resources within an organization.
• Power is the ability to influence or control the behavior of others, which can come from
formal authority or other sources.
Types of Authority and Power
1. Staff Authority
• This refers to advisory or supportive authority given to staff specialists who assist line
managers.
• Staff authority gives the right to advise or recommend but not to command or make
final decisions.
• Example: A human resources manager advising department managers on staffing
issues.
2. Coercive Power
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• Power based on the ability to punish or sanction others.
• It stems from fear of negative consequences or penalties.
• Example: A manager imposing disciplinary action or demotion.
3. Reward Power
• Power derived from the ability to give rewards or incentives.
• Rewards can be monetary, promotions, recognition, or other benefits.
• Example: A supervisor awarding bonuses or praise.
4. Expert Power
• Power based on specialized knowledge, skills, or expertise.
• People obey or follow because they respect the person's competence.
• Example: An IT specialist guiding a project team due to technical expertise.
5. Referent Power
• Power that stems from personal traits, charisma, or the respect and admiration
others have for an individual.
• Followers identify with and want to emulate the person.
• Example: A charismatic leader who inspires loyalty and trust.
Leading in Project Management
Leading is the process of influencing, motivating, and guiding team members toward achieving
project goals. It involves interpersonal skills that inspire and direct people to perform at their best.
Leading creates a positive work environment and aligns the team's efforts with the project vision.
Key aspects of leading include:
• Motivation: Encouraging and inspiring team members through recognition, support, and
incentives.
• Communication: Clearly conveying goals, expectations, feedback, and listening actively to
build trust.
• Conflict Resolution: Managing disputes amicably to maintain team harmony and
productivity.
• Influence: Using interpersonal skills and power ethically to gain commitment and
cooperation.
• Vision and Direction: Providing purpose and clarity to help the team understand how their
work contributes to the project.
• Team Building: Fostering collaboration, trust, and mutual support among team members.
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Effective leadership fosters engagement, creativity, and resilience in teams, crucial for project
success.
Directing in Project Management
Directing focuses on giving specific instructions, managing day-to-day activities, and ensuring tasks
are executed according to the plan. It is more task-oriented and operational compared to leading.
Key aspects of directing include:
• Assigning Tasks: Delegating responsibilities clearly to appropriate team members.
• Supervision: Monitoring work progress to ensure standards and deadlines are met.
• Providing Guidance: Offering technical or procedural instructions to help team members
perform.
• Coordinating Activities: Ensuring all parts of the project work together smoothly.
• Problem Solving: Addressing immediate issues or obstacles that arise during execution.
• Performance Management: Reviewing work quality and providing corrective feedback when
needed.
Directing ensures that the project plan translates effectively into action, maintaining control over
execution.
Summary
• Leading is about inspiring and motivating the team, focusing on people.
• Directing is about managing and controlling tasks, focusing on processes.
Both are essential for successful project management, with leading cultivating commitment and
energy, and directing organizing and controlling work to deliver results
a) Team Building
• The process of creating a cohesive, collaborative group where members trust and support
each other.
• It involves activities and strategies to improve communication, cooperation, and
relationships among team members.
• Effective team building enhances productivity, morale, and problem-solving within the group.
b) Consensus Building
• A collaborative process to arrive at a general agreement among all team members or
stakeholders.
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• It involves open discussion, negotiation, and compromise to ensure everyone’s views and
concerns are considered.
• Consensus building fosters unity and commitment to decisions, reducing conflicts and
resistance.
Needs (Primary, Secondary, Tertiary)
• Primary Needs: These are fundamental human needs required for survival, such as food,
water, shelter, and safety.
• Secondary Needs: These are psychological or social needs that arise after primary needs are
met, such as belonging, esteem, recognition, and friendship.
• Tertiary Needs: These are higher-level needs related to self-fulfillment, personal growth,
creativity, and achieving one's full potential.
In organizational and project contexts, understanding these needs helps in motivating individuals and
designing supportive work environments.
Control (Measurement of Accomplishment Against Standards and Deviations)
• Control in management refers to the process of monitoring performance to ensure that
activities are being completed as planned.
• It involves setting standards or benchmarks, measuring actual performance, and comparing
it to these standards.
• Deviations occur when there is a variance between actual performance and the set
standards.
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• Corrective actions are then taken to address these deviations to keep the project or
organization on track.
Control ensures that organizational goals are met efficiently and effectively.
Output (Only Visible Factor of the Work)
• Output refers to the finished product, service, or result produced by a process, project, or
organization.
• It is the visible and tangible outcome of the work done.
• In project management, output might be deliverables like reports, software, buildings, or any
completed work product.
• Outputs are used as key indicators to assess productivity and success.
Understanding outputs helps evaluate project effectiveness and customer satisfaction.
1. Conceptual Skills (Soft Skills)
• These skills enable a manager to understand complex situations, think critically, and see the
“big picture.”
• They involve abstract thinking, problem-solving, decision-making, and strategic planning.
• Soft skills like creativity, emotional intelligence, adaptability, and vision fall under this
category.
• Essential for top-level managers who must conceptualize organizational goals and long-term
strategies.
2. Interpersonal Skills (Communication Skills)
• Skills that involve interacting effectively with others.
• Can be:
• One-way communication: Sending information without immediate feedback (e.g.,
giving a speech or issuing instructions).
• Two-way communication: Interactive exchange where feedback is received and
addressed (e.g., discussions, meetings).
• These skills include empathy, active listening, negotiation, conflict resolution, and teamwork.
• Vital at all management levels for motivating, leading, and coordinating people.
3. Technical Skills (Hard Skills)
• The specific knowledge and abilities required to perform specialized tasks.
• Include proficiency with tools, techniques, procedures, and technologies related to the job or
industry.
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• Examples include programming, engineering, accounting, machinery operation, or use of
project management software.
• Most needed by first-line managers who supervise technical work and guide team members.
In summary, all three skills are critical for effective management, with their emphasis varying by
managerial level and role.
MANAGEMENT THEORIST HENRY MINTZBERG
These roles, as defined by management theorist Henry Mintzberg, collectively describe how
managers interact with people, process information, and make decisions critical for organizational
success.
1. Interpersonal Roles (Information is Provided)
• Figurehead: Represents the organization in ceremonial and symbolic activities/ formal
manner.
Eg: going for inaugurations, hosting receptions
• Liaison: Establishes and maintains networks of contacts outside the immediate work unit to
gather information and Favors.
Eg: meetings, letters, gatherings, business correspondence
• Leader: Directs and motivates subordinates, fostering teamwork and performance.
Relationship b/w manager and employees
2. Informational Roles (Information is Processed)
• Monitor: Seeks and receives information about internal and external conditions relevant to
the organization.
Seminars, research, surveys, correspondence, tours
• Disseminator: Shares important information within the organization to influence and educate
employees.
• Spokesperson: Transmits information to outsiders on behalf of the organization, representing
its interests.
Eg: public relations officer- press conferences, press releases, meetings, reports
3. Decisional Roles (Information is Used)
• Entrepreneur: Initiates and manages change projects to improve the organization.
• Disturbance Handler: Takes corrective action during unforeseen problems and conflicts.
Disruption in demand supply, correcting activities, handling threats to the organisation
• Resource Allocator: Decides where organizational resources (time, money, personnel) are
best applied.
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• Negotiator: Represents the organization in major negotiations affecting resources and
operations.
Mentoring in Project Management
Mentoring in project management is a developmental relationship where an experienced project
manager (mentor) provides guidance, support, and knowledge to a less experienced manager or
team member (mentee). It aims to enhance the mentee’s skills, confidence, and ability to
successfully manage projects.
Key Aspects of Mentoring in Project Management:
• Knowledge Transfer: Mentors share insights on project methodologies, tools, risk
management, stakeholder communication, and problem-solving based on real-world
experience.
• Skill Development: Mentoring helps mentees build technical skills, leadership abilities, and
decision-making competence in a project environment.
• Career Growth: Mentors guide mentees on career planning, navigating organizational
culture, and networking opportunities.
• Support and Motivation: Provides emotional support, encouragement, and constructive
feedback, helping mentees overcome challenges and build resilience.
• Improving Project Outcomes: By developing competent project managers, mentoring
contributes to better project planning, execution, and success rates.
• Continuous Learning: Encourages a culture of learning and professional growth within the
project team.
Mentoring is a strategic tool in project management to build capacity, enhance team performance,
and foster leadership development. It benefits both mentor and mentee through shared learning and
collaboration.
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