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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

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