Classical Theory

Classical Theory It is also known as the functional or empirical approach. The main contributors to these theories are Henri Fayol , Taylor, Max Weber Salient features Management is viewed as a systematic process of interrelated functions. Principles of management are used as a guideline for the executives. Functions , Principles and skills of management are universal. Formal education and training is needed for the development of the required skills. Emphasis is placed on the economic efficiency. People are motivated by economic gains and other incentives. Classical theory pillar mainly stands on three pillars :Bureaucracy, Scientific management and Administration. Though this approach provides Specialization, structure, rationality, predictability and democracy but at the same time a lot of paperwork , compartmentalization of work rigidity and Goal displacement is there.

Neo classical Theory Neo classical theory is the sum total of three parts Hawthorne experiments, Human relation movements and behavioral approaches. Elton Mayo , Herzberg, Mc Gregor were the major contributors toward this theory.

Work Environment

Leader

Individual

Work Group

Salient Features A work group is the sum total of the Techno economic system and social system. Workers are motivated by many others factor as per the situation. People may show different behavior when act separately and different when act in group. Performance is affected due to the factors inside and outside the work place. Interpersonal relation is more important. Social and psychological needs play an important role in the performance of the employee. People working in the organization may have different goals than the organizational goal/s but they should be guided towards the pre stated objectives. Own informational group plays an important role in the determination of future course of action. Individual may react differently in different situations so they should be carefully managed toward the common goal.

Behavioral Approach Pioneered by Elton Mayo and his associates Salient Features Focus on individual, his needs and behavior Highlight interpersonal relations Emphasis on motivation morale and job satisfaction Conflict in an organization is always destructive and should be always avoided. Based on Hawthorne experiments. Emphasis on improving the working condition, interpersonal relation, supervisory styles and communication systems. People working in the organization may have different goals but it is the work of management to guide them toward the common goal. People behavior as a individual may be different than his behavior in a group. People working in the organization form their own informal groups and these groups have a significant influence on the attitude and values of people.

Contingency Approach Contingency approach tells that organization is an open system and there is no single best way of managing in all situations. The best solution is that which is responsive to a particular situation under a cost and time limit. The management , therefore, should deal with different situations differently. Salient Features Management is situational. Management should ,therefore ,match and fit its approaches to the requirements of the particular situation. Management should sharpen its diagnostic skills and analytical skills. Management should not consider management principles and techniques universal