The document discusses both classical and modern theories of organization and management. Classical theories include scientific management by Frederick W. Taylor, administrative management by Henri Fayol, and bureaucratic management by Max Weber, focusing on clear structures and divisions of labor to enhance efficiency. Modern theories encompass quantitative, contingency, and systems theories, emphasizing adaptability, interdependence, and organizational culture to improve productivity and decision-making.

1. THEORIES ON ORGANIZATION
AND MANAGEMENT
UNIT 3

2. CLASSICAL THEORIES
ON ORGANIZATION
AND MANAGEMENT
•TOPIC 1

3. Classical Theories -organizations establish clear
labor divisions that plainly outline an
employee’s expectations and duties.
1. Scientific Management
2. Administrative Policies
3. Bureaucracy

4. Scientific Management
- the proponent is Frederick W. Taylor who believed that
business inefficiency stemmed from worker autonomy
(workers decide on their own working methods and
management which causes company to be less productive).
- Taylor promoted the idea that a specific power structure
should be imposed and the mode of operation should be
changed.

5. Scientific Management
- using empirical research and the scientific method, Taylor
believed that the most efficient methods to accomplish
specific tasks should be examined.
- the goal is to assign jobs based on employee competency
and skill set to extract the best out of every worker.
- employees perform their assigned roles, and managers
strategize, train and suspense workers.

6. Administrative Management
- the proponent is a French industrialist, Henri Fayol.
- the goal is to improve organizational productivity via
methods can utilize to make internal processes work
synchronically.
- Fayol believed that managerial practices were one of the
main keys of driving organization efficiency.
- to elevate the performance of managers not focusing on
the efficiency of individual workers.

7. Bureaucratic Management
- was influenced by the ideas of Max Weber, a German Sociologist.
- work responsibilities are clearly defined in this model and all
employees aretreated equally.
- there is a clear hierarchy to the management system under this
theory, with a clear division of labor and defined lines of
communication.
- individual’s achievements and qualifications are the only things
that help to determine their potential for advancement within the
company.

8. Bureaucratic Management
- this is opposed to a person being promoted due to factors other
than their qualifications or because they are personally connected
with someone influential.
- uniformity, efficiency and well-defined distribution of power are
essential parts of ideal bureaucracy.
- work relationships are strongly discouraged and the environment is
ideally impersonal and professional.
- employees should only be chosen based on their competencies
and technical skills and no additional factors should be utilized to
make a hiring decision.

9. Advantages of Classical Management Theory
1. Decision-Making by a Single Leader - autocratic leadership approach
(leaders choose how employees will be organized and directed).
2. Increased productivity via incentives - employees will work harder and be
more productive when motivated by monetary rewards(offering bonuses or
salary increase based on an employee’s productivity.
3. Clear division of labor - help reduce confusion and time loss regarding who
is responsible for what duties (responsibilities are clearly communicted).
4. Easy to understand organization hierarchy - each individual’s expectations,
responsibilities and objectives are made clear to reduce confusion.

10. Disadvantages of Classical Management Theory
1. More employee pressure - if managers aren’t careful to set
reachable goals can be discouraging to employees
2. Less focus on human relations and employee job satisfaction -
this theory doesn’t see the importance of forming social
connections can cause low morale, decreased productivity and
high turnover.
3. Stifles creativity and Innovation- employees can feel that there
is no opportunity to share creative or innovative ideas.

11. MODERN THEORIES
ON ORGANIZATION
AND MANAGEMENT
•TOPIC 2

12. Modern Theories
1. Quantitative Theory
2. Contingency Theory
3. Systems Theory

13. Quantitative Theory
- number-based theory that relies on calculating the
risks, benefits, and drawbacks of any action before it
is taken.
- applies statistics, computer simulations, information
models o the management of a company.

14. Contingency Theory
- every situation requires a different leadership style and
therefore no one theory can work for an entire office.
- based on theory that management effectivesness is
contingent or dependent upon the interplay between
the application of management behaviors and specific
situations,
- the way you manage should change depending on
the circumstances.

15. Systems Theory
- arts that any organization is a single, unified system of interrelated
parts of subsystems.
- considers an organization as a network of systems
- each part of the overall system is dependent on the others and
cannot function optimally without them.
Example:
Computer - made up of many smaller systems that have to work in coordination
with one another like the processor, motherboard and power supply.

16. Culture Theory
- companies with strong organizational cultures tend to have
smoother on boarding experiences.
- repeatable systems are in place to ensure that new employees
have access to the resources they need to adapt and integrate with
the culture of the organization.
- the organizational culture (values, beliefs, attitudes, systems and
rules that influence employees behavior within an organization)
reflects how employees,customers and stakeholders experience the
organization and its brand.

17. Advantages of Modern Theories of Organization and
Management
1. Increases Productivity - educate leaders on
maximizing the value of human resources.
2. Strenghtensdecision-making activities
3. Increases Employee Engagement
4. Increases adaptability

18. Disadvantages of Modern Theories of Organization
and Management
1. Constant changes to environment/culture of the
organization
2. Dificult to accurately choose the most suitable
contingency approach.
3. No clear procedures or guidelines to follow

19. TASK
• What is/are the theory/theories on
organization and management that
exist in your organization?
•Explain your answer and cite situations
to prove that the theory exists.
Note: This is an individual task.