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PERSPECTIVES OF MANAGEMENT

Management theories are explanations of why a

particular practice is effective or ineffective

Management theories are explanations of why a

particular practice is effective or ineffective

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MANAGEMENT THEORIES

Pre-scientific Theory

Classical Theory

Behavioral Theory

Modern Management Theory

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PRE-SCIENTIFIC THEORY

They were primarily related to their organizational

set ups.

Oriented towards solving specific organizational

problems.

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CLASSICAL THEORY

Oldest Theory (Traditional Theory)

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FEATURES OF CLASSICAL THEORY

1. It includes some of the early works on

management which provide foundation to the

modern management theory.

2. It attempts to find ways and means to increase

out put of each worker.

3. Employees have predominant economic needs

which they satisfy through financial incentives.

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FEATURES OF CLASSICAL THEORY

4. It stresses on formal structure of jobs and work

schedules to satisfy individual and organizational

needs.

5. It views organizations as closed systems which

do not interact with the external environment.

6. It develops a set of Management Principles

which are universally application to all

organizations: business and non-business.

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CONTRIBUTION OF CLASSICAL THEORY

1. This theory originated when organizations werestable and simple in structure. They had very little

interaction with the external environment. The

modern organizations are complex and changing

in form and, therefore, do not fully comprehend

the principles of classical theories. The theorywas therefore, more practical in the past than in

the present.

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CONTRIBUTION OF CLASSICAL THEORY

2. The principles of management are not universallyapplicable in the organizations today. The

universality of concepts, does not always hold

good. The principle of unity of command, for

example, does not apply in todays organizationswhere jobs are highly specialized. People receive

orders from more than one boss.

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CONTRIBUTION OF CLASSICAL THEORY

3. Employees are viewed as tools rather thanresources for contributing to management

objectives. Their social and psychological needs

are altogether ignored.

4. The focus of theory is more on task than people;

human behaviour and desires are ignored.

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CONTRIBUTION OF CLASSICAL THEORY

5. Monetary rewards are considered more important

than non-monetary rewards which are not alwaystrue. Non-monetary rewards like status, power

recognition etc, can be more powerful than

money in many cases.

6. Initiative and creativity of employees are totallyignored. Overemphasis on rules and regulations

made these rules an end in themselves. People

strictly followed rules forgetting why these rules

were framed.

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LIMITATIONS OF CLASSICAL THEORY

1. This theory was more practical in the past than in

the present.

2. The principles of management are not universally

applicable in the organizations today.

3. The social and psychological of employees are

totally ignored.

4. The focus is on task than people.

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LIMITATIONS OF CLASSICAL THEORY

5. Human behaviour & desires are ignored.

6. The monitory rewards are considered more

important than non-monitory rewards.

7. Initiative and creativity of employees are totally

ignored.

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BEHAVIORAL THEORY

This theory focused on human relations &attributed organizational success to

1. Organizational Goals

2. Personal Needs of Human Beings

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It recognized that employees behaviour was notaffected by job conditions alone there were

internal reactions to the job situation also that

affected their behaviour.

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MODERN MANAGEMENT THEORY

1. Management is responsive to environmentalchanges.

2. Business organizations are dynamic institutions

composed of inter-related divisions and sub-divisions.

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MODERN MANAGEMENT THEORY

3. Business firms have multiple objectives.

4. Management is multi disciplinary in nature.

5. Management is future oriented.

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SCHOOLS OF THOUGHT

1. Management Process School Henri Fayols

2. Quantitative School Frederick Taylors

3. Behavioural School

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CONTEMPORARY ISSUES IN

MANAGEMENT

1. Contemporary Management Theory

2. Contemporary Management Challenges

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CONTEMPORARY

MANAGEMENT THEORY

Theory Z

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CONTEMPORARY

MANAGEMENT CHALLENGES

1. Globalisation

2. Quality & Productivity

3. Ownership

4. Environment

5. Strategy Formulation

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6. Ethics and Social Responsibility

7. Workforce Diversity

8. Change

9. Empowerment

10.Information Technology

CONTEMPORARY

MANAGEMENT CHALLENGES

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DIFFERENCES BETWEEN MODERN

THOUGHT SYSTEM & ALTERNATIVE

THOUGHT SYSTEM

Modern Thought System Alternative Thought System

1. Its value orientation isefficiency and competition

1. Its value orientation is equality,non-violence and sacrifice

(Tyag).

2. It aims at self-actualisation 2. It aims at self-realisation.

3. It is a value-neutral thought

system

3. It is a value-laden thought

system.4. It is based on secular values 4. It is based on spiritual values.

5. it results in a valueless society 5. It results in a value-based

society.