Lesson 3: Management Theories

Site-Based Management

Site-Based Management (SBM) usually is associated with educational institutions.


It is sometimes referred to as School-based Management. The theory of Site-based Management can be applied to other institutions as well (such as hospitals). With schools, Site-based Management involves decentralization of decision-making by transferring authority and resources from district education offices to individual schools or decision units. The school or decision unit makes its own decisions in relation to finances. Decisions are made with input from all stakeholders: principal, teachers, parents, and community members. When appropriate, students may sit on school councils and have input into decision-making. Membership of school councils often is mandated from a higher level of government.

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Click the tabs below to explore the Advantages and Disadvantages.


  • Increased accountability
  • Greater sharing of power
  • Valuable input from parents, teachers, and community members
  • Increased professional development
  • Improved student performance
  • Loss of authority for school boards and district superintendents
  • More responsibilities and accountability of principals
  • Reduction of time and resources for instructional and curriculum responsibilities
  • Additional duties for teachers
  • Varied and problematic parent roles in decision-making