When studying or implementing these theories, it's important to know the pros and cons of each and how those might apply to your business, even if you aren't directly using a certain style. Contingency Theory Contingency Theory was developed by sociologist Joan Woodward after she examined why some companies performed better than others.
Weber's ideal business uses standard rules and procedures to organize itself. Remuneration Pay should be fair to both the employee and the firm 8.
It cannot be stated strongly enough that the Weber theory has the advantage of being used as a 'gold standard' on which to compare and develop other modern theories. It's almost impossible to keep emotions out of business decisions, and sometimes emotions are needed. Centralization — There should be a balance between decision-making power.
There should be a middle ground for implementing this theory.
Equity A combination of kindliness and justice towards the employees For example, a company's board of directors should have a say, but the midlevel managers shouldn't be overpowered.
Managers have been an integral factor for business success since the Industrial Revolution. Managers deal with human beings whose behavior cannot be reduced to formulas.
They have evolved considerably over time from traditional top-down authoritarian paradigms to more human-centered contemporary adaptations. If a business's sales team is struggling, it can hurt the whole operation.