Core Concepts and Theories of Modern Management

Posted on Jan 2, 2026 in International Business Economics

Module 1: Fundamentals of Management

1. Management Definition

The process of planning, organizing, directing, and controlling resources efficiently and effectively to achieve organizational objectives.

2. Characteristics of Management

  • Goal-oriented
  • Universal
  • Continuous
  • Social
  • Multidisciplinary
  • Coordinated

3. Management: Science Versus Art

  • Science: Based on systematic knowledge and cause-effect relationships.
  • Art: Requires creativity, personal skill, and is practice-based.

4. Taylor’s Scientific Management

  • Scientific selection and training of workers.
  • Cooperation between management and labor.
  • Clear division of responsibility.
  • Differential piece rate system.

5. Fayol’s 14 Principles of Management

  1. Division of Work
  2. Authority and Responsibility
  3. Discipline
  4. Unity of Command
  5. Unity of Direction
  6. Subordination of Individual Interest to General Interest
  7. Remuneration of Personnel
  8. Centralization
  9. Scalar Chain (Line of Authority)
  10. Order
  11. Equity
  12. Stability of Tenure of Personnel
  13. Initiative
  14. Esprit de Corps (Team Spirit)

6. Hawthorne Studies

Demonstrated that social factors, supervision, and attention significantly improve productivity.

7. Managerial Skills

  • Technical skills
  • Human (Interpersonal) skills
  • Conceptual skills

8. Mintzberg’s Managerial Roles

Interpersonal Roles:

  • Figurehead
  • Leader
  • Liaison

Informational Roles:

  • Monitor
  • Disseminator
  • Spokesperson

Decisional Roles:

  • Entrepreneur
  • Disturbance Handler
  • Resource Allocator
  • Negotiator

9. Forms of Business Organization

  • Sole Proprietorship
  • Partnership
  • Company (Corporation)

Module 2: Planning, Organizing, and HRM

1. Planning

Establishing a predetermined course of action for achieving specific objectives.

2. Types of Plans

  • Single-use plans
  • Standing plans
  • Strategic plans
  • Tactical plans
  • Operational plans

3. The Planning Process

  1. Setting Objectives
  2. Analyzing the Environment
  3. Identifying Alternatives
  4. Evaluating Alternatives
  5. Selecting the Best Alternative
  6. Implementing the Plan
  7. Monitoring and Reviewing

4. Organizing

Establishing the structure of roles, authority, and responsibility within the organization.

5. Types of Organization Structures

  • Formal organization
  • Informal organization

6. Departmentalization Methods

  • Functional
  • Product
  • Geographic
  • Customer
  • Matrix

7. Authority, Responsibility, and Accountability

  • Authority: The right to give orders.
  • Responsibility: The duty or obligation to perform assigned tasks.
  • Accountability: The answerability for the results achieved.

8. Centralization Versus Decentralization

  • Centralization: Authority is concentrated at the top level.
  • Decentralization: Authority is systematically distributed.

9. Human Resource Planning Steps

  1. Defining Objectives
  2. Current HR Assessment
  3. Forecasting HR Demand and Supply
  4. Gap Analysis
  5. Developing an Action Plan
  6. Monitoring and Evaluation

10. Recruitment Versus Selection

  • Recruitment: Inviting and encouraging potential candidates to apply.
  • Selection: Choosing the most suitable candidate from the applicants.

11. Types of Training

  • On-the-job training
  • Off-the-job training
  • Technical training
  • Soft skills training
  • Leadership development

Module 3: Directing, Communication, and Group Behavior

1. Directing

The managerial function of guiding and motivating employees.

2. Factors Influencing Individual Behavior

  • Personality
  • Attitudes
  • Values
  • Perception
  • Motivation

3. Key Elements of Group Behavior

  • Group Norms
  • Roles
  • Cohesion
  • Status

4. Tuckman’s Stages of Group Development

  1. Forming
  2. Storming
  3. Norming
  4. Performing
  5. Adjourning

5. Advantages of Group Decision Making

  • Access to more information and knowledge.
  • Diverse views and perspectives.
  • Increased acceptance of the solution.

6. The Communication Process

  1. Sender
  2. Message
  3. Channel (Medium)
  4. Receiver
  5. Feedback

7. Communication Barriers

  • Sender-related barriers
  • Receiver-related barriers
  • Mechanical barriers (e.g., noise)
  • Language and semantic barriers

8. Overcoming Communication Barriers

  • 7 C’s: Clarity, Correctness, Conciseness, Courtesy, Concreteness, Consideration, and Completeness.
  • 4 S’s: Shortness, Simplicity, Strength, and Sincerity.

Module 4: Motivation, Leadership, and MBO

1. Motivation

The intensity, direction, and persistence of effort a person shows in achieving a goal.

2. Types of Motivation

  • Intrinsic (internal rewards)
  • Extrinsic (external rewards)

3. Maslow’s Hierarchy of Needs

  1. Physiological Needs
  2. Safety Needs
  3. Social Needs (Belongingness)
  4. Esteem Needs
  5. Self-Actualization Needs

4. Alderfer’s ERG Theory

  • Existence Needs
  • Relatedness Needs
  • Growth Needs

5. Herzberg’s Two-Factor Theory

  • Motivators: Factors leading to satisfaction (intrinsic).
  • Hygiene Factors: Factors preventing dissatisfaction (extrinsic).

6. McGregor’s Theory X and Theory Y

  • Theory X: Assumes employees are lazy and need strict control.
  • Theory Y: Assumes employees are self-motivated and seek responsibility.

7. Leadership Styles

  • Autocratic
  • Democratic
  • Laissez-faire
  • Transformational
  • Transactional
  • Charismatic
  • Paternalistic

8. Blake and Mouton’s Managerial Grid

  • 1,1: Impoverished Management
  • 1,9: Country Club Management
  • 9,1: Task Management
  • 5,5: Middle-of-the-Road Management
  • 9,9: Team Management

9. Management by Objectives (MBO) Steps

  1. Setting Organizational Goals
  2. Developing Action Plans
  3. Monitoring Performance
  4. Performance Evaluation and Feedback