Theories of Business Essay

Submitted By Jenn-Hogue
Words: 658
Pages: 3

Theories Of Business
Jennifer Hogue
AB140-Unit 2 Assignment
There are different methods of approach when it comes to running a business. There are no cookie-cutter business plans for a successful company. It takes a lot of hard work and determination to even get a business off the ground and running, but to keep it running smoothly requires a number of methods to one’s madness. The following are the varieties of theories and methods that will help guide one on their business venture.
The first theory presented was the classical approach. This approach focused on the roles and responsibilities of a manager or person in a leadership role. In order to perform the task efficiently, there needed to be focus on the task, as well as the machines and systems used, in order to perform tasks efficiently. The classical approach involves two different components. These components were the administrative management and the scientific management. The classical approach looked at being the most efficient by studying the work methods, tools and performance standards, and mirroring their concepts.
The second theory presented was the behavioral approach. This approach focused on the fact that there was no acknowledgement of the workers progress by management and it caused unproductivity and laziness among workers. Frederick Taylor believed that soldiering existed for the following reasons: management did not put themselves in the position of the worker to see how much work could be done, workers’ thought that if they completed their jobs beforehand there would be no work left for them to do, thus putting themselves out of work, and the workers were not trained to do their jobs effectively and properly in the first place.
The third theory presented was the systems approach. This approach saw organizations as one, with everyone working towards achieving a common final outcome. In order to achieve the systems approach, there must be transformation processes, inputs, outputs and feedback. This approach was constantly reviewing the way things were done and improving them upon the feedback, regardless of whether it was negative feedback or positive input.
The fourth theory presented was the contingency approach. This approach focused on the key main variables in every situation and trying to figure out the relationships among the variables. This would then result in finding out the cause and the effect of the management decisions and acting accordingly.
Each theory built upon the next theory. There needs to be management in place that are all agreeable to the general standards and guidelines set forth by management, you cannot have one set of