Perspective of Management

Management Theories 

PrePre-Scientific Management theories Classical Theory Behavioural Theory Modern Management Theory

PrePre-Scientific Theory 

Monumental Examples of management can be traced in history. Egyptian, Chinese, Greek, roman civilisation represent significant management practices. No significant information about the way these civilisations were managed. In 1494 the technique of double entry bookbookkeeping was introduced. In 1800 s the management theories developed as systematic field of knowledge.

Classical Theory   

Oldest theory of management. Also, called as traditional theory of management. Classical view point is a perspective on management that finds ways to manage business organisations effectively With increase in size and complexity of organisations the need for systematic approach to management became inevitable.

Features of Classic theory 

It includes some of the early works on management which provides foundation to the modern management theory. It attempts to find ways and mean sto increase output of each worker. Employees economic needs are satisfies through financial incentives. It stresses on formal structure of jobs and work schedules to satisfy individual and organisational needs. It views organisations as closed systems which do not interact with the external environment. It develops a set of management principles which are universally applicable to all organisations : business and non-business. non-



This theory was generated when organisations were stable and simple structure. The modern organisations are complex and changing in form and therefore, do not fully comprehend the principles of classical theories. Principles of management are not universally applicable in the organisations today. The principle of Unity of command for example you may receive orders from more than 1 boss. Employees are seen as tool rather than resources for contributing to management objectives. The focus of theory was more on task rather than human beings. Monetary rewards are considered more important than nonnonmonetary rewards which is not always true. Initiatives and creativity of employees are totally ignored.

Behavioural Theory  


It is focussed on human relations and attributed organisation s success to 1) Organisational goals, and 2.) personal needs of human beings. In behavioural theory, the focus shifted from workplace conditions to human side of the organisation. Production oriented approach was substituted by peoplepeopleoriented approach. It emphasis on various factors that affect human behaviour in organisations. It is not always practical to deal with human behaviour the way theory suggests because of complex nature of human beings.

Modern Management Theory   

Management is responsive to environmental changes. Business organisation are dynamic institutions composed of sub-division. subBusiness firms have multiple objectives. Management is future oriented (Using scientific techniques).

Contemporary issues in management  


Managers of today strive for better understanding of the management theory to improve organisational effectiveness and compete with firms in national and international markets. It can be studied under 2 heads: 1.) Contemporary management theory 2.) Contemporary management challenges.

Contemporary management theory 


2 theories which have attracted the attention of managers are: A) Theory Z It aims at to establish a common set of business practices which will improve the effectiveness of business firms. It combines the features of American style of Management with Japenese style of management. B) Excellence movement suggests a set of principles which will lead to excellent performance. These features are: Getting things done on time. Staying close to customer Maximising productivity through people Doing what the company knows best. Maintaining simple, lean organisational structure.

Contemporary management challenges
Challenges faced by managers today are: a) Globalisation b) Quality and productivity c) Ownership d) Environment e) Strategy formulation f) Ethics and social responsibility g) Workforce diversity h) Change i) Information technology

Challenges for International Management   

Economic Environment: Consumers are free to buy what they want and producers are free to produce what they want. Natural resources (oil, iron coal etc) in a country also attracts foreign enterprises that need these resources to manufacture goods for domestic and international markets. Infrastructural facilities like roads, schools, hospitals etc affect economic development of a country. An economically developed country attracts and support foreign enterprises. Political and legal environment: Policies doesn t change frequently in a developed economy and thus are better for organisation where incentives (reduced rate of interest on loans, tax subsidies etc.) are offered to attract foreign business. Cultural environment: The value systems, social and ethical beliefs, understanding and interpretation of symbols and languages of people different cultures have direct impact on business practices.

Management Challenges in the International/Global economy 

Planning Organising Staffing Directing Controlling

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