Critical Comparison of Classical, Neo-Classical, and Modern Theories of Management

1. CRITICAL COMPARISON OF
CLASSICAL
NEO-CLASSICAL
MODERN
THEORIES OF MANAGMENT
DEPARTMENT OF PHARMACY
UNIVERSITY OF PESHAWAR

2. NEED OF CLASSICAL THEORIES
Management is needed in order to facilitate a coordinated effort
toward the accomplishment of an organization's goals.
LARGE SCALE ORGANIZATIONS RAISED
MASS PRODUCTION OF PRODUCTS
WAYS TO MOTIVATE EMPLOYEES-IMPROVE PRODUCTIVITY

4. CLASSICAL THEORIES
SCIENTIFIC
MANAGEMENT THEORY
Frederick Tyler
ADMINISTRATIVE
MANAGEMENT THEORY
Henri Foyel
BUREAUCRATIC
MANAGEMENT THEORY
Max Weber

5. SCIENTIFIC MANAGEMENT THEORY
WORK-BEST WAY
LOWER LEVEL MANAGMENT
WORK ON SCIETIFIC BASIS
TRAINING
RULES BE FOLLOWED
DIVISION OF WORK
CONECPT OF WAGES

6. ADMINISTRATIVE MANAGEMENT THEORY
Work Division
Authority &
Responsibility
Discipline
Unity Of
Command
Unity Of
Direction
Subordination
Remuneration Centralization Scalar Chain
Order Equity Tenure Stability
Initiative Esprit De Corps

7. BUREAUCRATIC MANAGEMENT THEORY
Impersonal Approach
Job Specialization
Written Rules
Proper Hierarchy
Written communication & Records
Labor division

8. APPRAISAL OF CLASSICAL APPROACH
1. • Increased Productivity
2. • Increased Efficiency
3. • Focused On Position
4. • Scientific method for problem
5. • Cooperation B/W Employer & Employee
6. • Base For Neo-Classical & Modern Theories

9. LIMITATIONS OF CLASSICAL APPROACH
1. • Too Formal
2. • Simple & Stable Organizations
3. • Universal Procedure x Some Settings
4. • Economic Rationality Criticism
5. • Economic Reward Alone Not Applicable Nowadays
6. • Rigid, Variables In Organizations
7. • Empirical Observation Based

10. NEED OF NEO-CLASSICAL THEORIES
Increased Social Awareness
Complex Organizations
Contradictory Views
Lack Of Decision Making
Industrial Psychology Development
Increase Workload In Routine
Human Relation Movements Of 1940-50

11. NEO-CLASSICAL THEORIES
HUMAN RELATION
THEORY
Elton Mayo
BEHAVIOURAL
THEORY
Abraham Maslow

12. HUMAN RELATION MOVEMENT
Focused On
Social
Context Of
Workplace
Normative &
Productivity
Interpersonal
Dynamics

13. BEHAVIOURAL THEORY
Multidimensional, Interdisciplinary Aspects
Anthropology, Psychology & Sociology
Attitude, Behavior & Performance In Group

14. APPRAISAL OF NEO-CLASSICAL APPROACH
1. • Psychological Need Satisfaction
2. • Manager As Helper
3. • Fulfill Workers Desire & Increase Output
4. • Human Factor Role-1st Time
5. • Organization As Social System
6. • Group Dynamics & Motivation

15. LIMITATIONS OF NEO-CLASSICAL APPROACH
1.
• Lack Of Precision
2.
• Variable Human Nature
3.
• No Scientific Validity
4.
• Ignored Other Variables But Humans
5. • Workers Come To Work Not For Affection
6.
• Unrealistic Demand From Supervisor
7. • Conflicting Needs
8.
• Less Management Oriented, More Motivational Outcome

16. NEED OF MODERN THEORIES
COMPLEXITY OF ORGANIZATIONS
DIVERSITY OF INDIVIDUAL NEEDS
UNIVERSAL MANAGEMENT IS IMPRACTICLE
COMPLEX EMPLOYEE VIEW

17. MODERN THEORIES
SYSTEM THEORY
ORGANIZATIONAL
HUMANISM
MANAGEMENT SCIENCE
THEORY
CONTINGENCY THEORY

18. SYSTEM THEORY
INTER-DEPENDENCE IN ORGANIZATION
ORGANIZATION AS OPEN SYSTEM
IMPACT OF CHANGE IN ONE PART ON OTHERS IN AN
ORGANIZATION
INTER-DEPENDENCE COMPLICATES MANAGERS JOB
MANAGEMENT IS BOUNDRY LINKING PIN
SYNERGY & ADAPTATION THROUGH FEEDBACK

19. CONTINGECY THEORY
SITUATIONS SHOULD BE
DEALTH ACCORDINGLY
(MANAGER)
MANAGERS SHOULD BE
SELECTIVE, OBJECTIVE &
SENSITIVE IN HIS APPROACH
COMPLEX ORGANIZATIONS-
FLEXIBLE SHOULD BE
STRUCTURE (R&D,
PRODUCTION

20. ORGANIZATIONAL HUMANISM
EXTENSION OF BEHAVIOURAL SCHOOL OF THOUGHT
INTERNALLY MOTIVATED INDIVIDUALS
ATTAIN SELF ACTUALIZATION
TO ADDRESS FLAWS OF RATIONAL ORGANIZATIONAL
DESIGN (RIGIDITY, SELF MOTIVATED EMPLOYEE)
MANAGERS ROLE-GIVE CHALLENGES, RESPONSIBILITIES &
DECISION MAKING SKILLS

21. MANAGEMENT SCIENCE THEORY
QUANTITATIVE MANAGEMENT APPROACH
2ND WORLD WAR-COMPLEX SITUATIONS
EVOLVED FROM CLASSICAL SCHOOL OF THOUGHT
USE OF TECHNOLOGY-PROCESSING INFO &
DECISSION MAKING
BASED ON IMAGINARY MODELS-REAL LIFE
SITUATIONS
FACT BASED DECISSION-NO EMOTINAL
INVOLVEMENT
PRECISION & PERFECTION BUT NOT APPLICABLE IN
MOTIVATION, STAFFING, LEADING

22. APPRAISAL OF MODERN APPROACH
1. • BEST SUITED FOR COMPLEX ORGANIZATIONS
2. • FULFILL WORKERS DESIRE & ORGANIZATIONAL GOAL
3. • USE OF MATHEMATICAL TOOLS-REAL SITUATIONS
4. • ENVIRONMENTAL EFFECT ON ORGANIZATIONS
5. • PRECISE & ACCURATE DECISION MAKING
6. • HARMONY WITHIN AN ORGANIZATION
7. • INNOVATIVE (CONTINGENCY)

23. LIMITATIONS OF MODERN APPROACH
1.
• CAN’T ELIMINATE NEED OF JUGDMENT & EXPERINCE
2.
• SLOW DECISION MAKING
3.
• LACK THEORITICAL BASE
4.
• ALL VARIABLES ARE NOT MEASURABLE & INTER-DEPENDENT
5.
• LACK OF INNOVATION (MANAGEMENT SCIENCE)
6.
• VARIABLES MAY NOT BE UPTO DATE-WRONG DECISION

24. DISTINCTION POINT CLASSICAL NEO-CLASSICAL MODERN
FOCUS Functions & economic
demand of workers
Emotion & human
of workers
Blend
STRUCTURE Impersonal & mechanistic Social system Flexible
APPLICATION Autocratic, strict rules Democratic process Democratic process
EMPHASIZE Discipline & rationality Personal security & social
demand
Simulation tools &
situation based decision
WORK GOAL OF
WORKERS
Max remuneration &
reward
Social satisfaction &
productivity
Attainment of
organizational goal
CONCEPT ABOUT MEN Economic being Social being Blend
RELATION Formal Informal Informal
NATURE Mechanistic Social Organistic
DRIVERS Capitalism, Capitalism,
Industrialization,
Democracy
Capitalism,
Industrialization, Warfare