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”
MANAGEMENT THEORIES

Pre-scientific Theory

Classical Theory

Behavioral Theory

Modern Management Theory

PRE-SCIENTIFIC THEORY

They were primarily related to their organizational

set ups.

Oriented towards solving specific organizational

problems.
CLASSICAL THEORY

Oldest Theory (Traditional Theory)

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.
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.
CONTRIBUTION OF CLASSICAL THEORY

1. This theory originated when organizations were

stable 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 theory was therefore, more practical in the
past than in the present.
CONTRIBUTION OF CLASSICAL THEORY

2. The principles of management are not universally

applicable 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 today’s organizations
where jobs are highly specialized. People receive
orders from more than one boss.
CONTRIBUTION OF CLASSICAL THEORY

3. Employees are viewed as tools rather than

resources 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.
CONTRIBUTION OF CLASSICAL THEORY

5. Monetary rewards are considered more important

than non-monetary rewards which are not always
true. Non-monetary rewards like status, power
recognition etc, can be more powerful than
money in many cases.

6. Initiative and creativity of employees are totally

ignored. Overemphasis on rules and regulations
made these rules an end in themselves. People
strictly followed rules forgetting why these rules
were framed.
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.

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.
BEHAVIORAL THEORY

This theory focused on human relations &

attributed organizational success to

1. Organizational Goals

2. Personal Needs of Human Beings

It recognized that employees’ behaviour was not
affected by job conditions alone there were
internal reactions to the job situation also that
affected their behaviour.
MODERN MANAGEMENT THEORY

5. Management is responsive to environmental

changes.

6. Business organizations are dynamic institutions

composed of inter-related divisions and sub-
divisions.
MODERN MANAGEMENT THEORY

3. Business firms have multiple objectives.

4. Management is multi disciplinary in nature.

5. Management is future oriented.

SCHOOLS OF THOUGHT

3. Management Process School – “Henri Fayol’s”

4. Quantitative School – “Frederick Taylor’s”

5. Behavioural School
CONTEMPORARY ISSUES IN
MANAGEMENT

1. Contemporary Management Theory

2. Contemporary Management Challenges

 CONTEMPORARY
MANAGEMENT THEORY

Theory Z
 CONTEMPORARY
MANAGEMENT CHALLENGES

1. Globalisation

2. Quality & Productivity

3. Ownership

4. Environment

5. Strategy Formulation
 CONTEMPORARY
MANAGEMENT CHALLENGES

6. Ethics and Social Responsibility

7. Workforce Diversity

8. Change

9. Empowerment

10.Information Technology
DIFFERENCES BETWEEN MODERN
THOUGHT SYSTEM & ALTERNATIVE
THOUGHT SYSTEM
Modern Thought System
1. Its value orientation is
efficiency and competition
2. It aims at self-actualisation
3. It is a value-neutral thought
system
4. It is based on secular values
5. it results in a valueless society
Alternative Thought System
1. Its value orientation is equality,
non-violence and sacrifice
(Tyag).
2. It aims at self-realisation.
3. It is a value-laden thought
system.
4. It is based on spiritual values.
5. It results in a value-based
society.