Six major types of management are : 1. Authoritarian Management, 2. Centralized Management, 3. Unified Management, 4. Decentralized Management, 5. Bottom-up management, 6. Enterprise Management!
1. Authoritarian Management:
In family and proprietary concerns management is authoritarian.
The owners themselves are responsible for the entire management. The growth of business depends upon the skill and competence of proprietor.
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With better talents, brains, and specialised abilities, the proprietary or family business will convert itself into partnership or a joint stock company.
2. Centralized Management:
The authority is centralized to facilitate wide spread application of knowledge and judgement of the top executives, to unify and integrate the total operations of the enterprise and to bring uniformity in action and risks.
Authoritarian and centralized management represents revolution stage. The revolutionary stage reaches with the emergence of unified and decentralized management.
3. Unified Management:
In this type of management, professional manager start asking for dispersal of responsibility with authority in a manner that will help each member in the management to feel responsible for his assignment.
4. Decentralized Management:
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In this type of management, authority is decentralized. Fayol observes that everything that goes to increase the importance of subordinate’s role is decentralization.
5. Bottom-up management:
The extreme form of decentralisation is bottom-up management. In the words of William Given, “It gives people all along the management line a stimulating feeling of personal freedom; freedom to think and plan boldly; freedom to venture along new and untried paths; freedom to take calculated risks; freedom to fail.”
The success of decentralized and bottom-up management provides conditions for the culmination of managerial revolution.
6. Enterprise Management:
It is type which belongs to post revolution stage. Peter Drucker observes that mass production has already led to the formation of giant industrial enterprises in the U.S.A. bringing in their wake a new society.
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“The emergence of the enterprise has radically altered the pattern of society by creating two new classes the new ruling group of the executives and union leaders, and the new middle class ; neither existed sixty or seventy years ago.” The creation of this new society as a result of the growth of giant corporations is itself a revolution of different kind.
Whatever be the type, certain circumstances inside an enterprise like size and problems force management to rely more and more on the professional managers. The recognition of professional managers is the first sign of managerial revolution and the beginning of the end of status quo regarding reservation of authority.