Final answer:
Henri Fayol proposed that the four key concepts of management are Planning, Organizing, Leading, and Controlling, which are foundational to understanding how to efficiently run a firm and maximize productivity.
Step-by-step explanation:
Henri Fayol, writing on management theory in the early 20th century, identified four key concepts of management: Planning, Organizing, Leading, and Controlling. This builds upon the work of other management theorists such as Frederick Taylor, who focused on increasing productivity through scientific management, which includes the study of management theories, personnel selection, training, and conducting time and motion studies. Similarly, Douglas McGregor's Theory X and Theory Y illustrate different management styles, with Theory X aligning with an autocratic approach.
Whereas Theory Y suggests a more democratic, participative style. Both Taylor's and McGregor's theories have contributed to our understanding of managerial behavior in the context of the theory of the firm. Firms aim to maximize the value of outputs over inputs through efficient production involving important decisions about labor, capital, land, and materials, with managerial techniques influencing productivity.