George R. Terry's Management Theory

Introduction; definitions and outlines of concepts

In his illustrative definition of management, George R. Terry highlighted critical components required in defining management. He stated that it is a cyclical activity that entails planning, organizing, directing (actuating) and controlling. The final desired outcome of this, he states is to identify and achieve set objectives within available resources (Terry, 1977).

Figure showing the management cycle (Terry, 1977).

Henri Fayol outlined five functions that are achieved through the management cycle (Fayol, 1916);

1. Planning or forecasting i.e. forward thinking, integrated and harmonised at different strata of the organisation and within the organizations available resources.

2. Organizing;

The scientific management theory or “Taylorism” particularly focused on work flows in order to improve the organisation economic efficiency in labour productivity (Boundless.com). The administrative theory of management or “Fayolism” differed from Taylor’s scientific management theory in that it focused on management (top-bottom approach) and regarded workers as a capital asset. Weber’s bureaucratic or organisational theory stressed efficiency by using standard procedures and clear command structures (Lea , 2011). Its emphasis was on an organisation’s focus on the office (workplace). His was an impersonal and objective approach to management, entailing clearly defined rules and hierarchical structures of power (or Authority). Appointment was viewed as merit based with commensurate salaries (Daria ,

Examples of entities where this would apply include the aviation industry where pilots are required to meet stiff requirements such as specific number of flight hours. The human relations theory would inversely be best suited in planning for a business entity that requires ingenuity in order to meet objectives of organisations e.g. in the sales and marketing industry, in on-line businesses.

II. Organising

In this management function, the manager sets clearly thought out plans that are documented and the required resources mobilized (money, materials, human resources etc.). In this function, power and authority relations are set up which, in the classical theory are more autocratic (top-to-bottom relations) rather than democratic (bottom-top relations). In addition to setting up authority, the manager goes through processes of Identifying activities/roles, classifying these activities, assigning duties, and coordinating the authority and power relationships (Managment study guide, 2016).

III.