There are five management theories that can be applied in order to achieve the goal of a certain business. These theories are the Classical Management theory, the Behavioral Theory, the Contingency Management Theory,the Quantitative Management Theory and the System Management Theory.
The school of Classical Management Theory was started in England during the Industrial Revolution. In that time, the steam-powered machinery was invented. Because of the introduction of modern technology and the existence of large supply of raw materials, as well as labor force, management is very well needed.
There are two branches of classical management theories, namely; the Classical Scientific and the Classical Administrative.
The first branch (classical scientific) is focused on experimenting about the best way on how to increase productivity. The second branch (classical administrative), is more focused on the principles of management.
The Behavioral Management Theory believes that the workers conditions affect the quantity and quality of their works, therefore, the management must be concerned with the workers condition.
The Contingency Management Theory focuses on legal aspects, cultural consideration and emerging field of public administrations. According to this theory; there are no two situations are exactly alike and therefore, no two solutions should also be exactly the same.
The Quantitative Management Theory is considered as the strong foundations in making decisions. This theory emphasized the creation of models that states, assumptions, purpose, and necessity, it is usually expressed in mathematical or measurable data.
The System Management Theory conceptualized a system that has an interrelated parts. These parts works or operates as one or a whole in order to achieve a specific goal. This theory signifies that the manager of an organization should be able to understand the various parts or system that makes up the entire operation.
Mary Parker Follett was considered as the first psychologist who applied business psychology. Follett recommends teaching social services in business settings.
Douglas McGoger also recommended theory X and theory Y. According to Douglas McGoger, theory X illustrates an assessment by the manger to the employees believing that the people or the employees do not want to work hard and that they must be guided and force to work.
The theory Y on the other hand, anchored with the presumptions of the people or the employee that take their jobs as the jobs are part of their lives. Theory Y further explained that the jobs, motivated the people to be able to realize their goals and make them perform well in their careers.