5. 1. Classical theory
Emphasizes structure,has such features as a clear division of labor and
unity of command and direction.
Developed during industrial revolution.
Management is viewed as systematic process of interrelated functions.
8. 2. Scientific theory
Tyllor began the theory’s development in United States during 1880s and
90s.
Emphasizes efficiency and productivity, and is strict regarding time and
space usage.
10. Disadvantages
High costs
Small firms cannot afford to adopt it.
If the workers fail to respond good, the system shall fail to bring the desired
results.
Do not consider the health and well-being of workers
Creates unemployment and hits the workers hard as a consequence of the
adoption of labor saving devices both in machinery and in arrangement of
work.
11. 3. Bureaucratic theory:
Max Weber in 1905 used the term bureaucracy and described it.
He believed bureaucracy was the most efficient way to set up an
organization, administration and organizations.
Max Weber believed that Bureaucracy was a better than traditional
structures. In a bureaucratic organization, everyone is treated equal and
the division of labor is clearly described for each employee.
Bureaucracy is the basis for the systematic formation of any organization
and is designed to ensure efficiency and economic effectiveness.
12. Advantages of Bureaucratic Theory:
The great benefit of a bureaucracy is that large organizations with many
hierarchical layers can become structured and work effectively.
It is precisely the established rules and procedures that allows for high
efficiency and consistent execution of work by all employees.
13. Disadvantages of Bureaucratic Theory:
Bureaucracy is characterized by a large amount of red tape, paperwork,
many desks, certain office culture and slow bureaucratic communication
due to its many hierarchical layers. This is the system’s biggest
disadvantage of a bureaucratic organization.
It is also unfortunate that employees remain fairly distanced from each
other and the organization, making them less loyal.
14. 4. Human relation management theory
This system focuses on human factors such as motivation- both in
individuals and in groups.
15. 5. Contingency theory:
The contingency school of management can be summarized as an “it all
depends” approach.
The appropriate management actions and approaches depend on the
situation. Managers with a contingency view use a flexible approach, draw
on a variety of theories and experiences, and evaluate many options as
they solve problems.
Contingency theory is a recognition of the extreme importance of individual
manager performance in any given situation.
The contingency approach is highly dependent on the experience and
judgment of the manager in a given organizational environment.
16. Limitations:
Ignores universally applicable principles.
Fails to enlist all contingency variables.
Focusses only on situation and not on tools and resources.
It ignores human behavioral aspects.
17. 6. System theory:
It was proposed by the biologist Ludwig von Bertalanffy in 1940. System
theory provides approach to understanding, analyzing and thinking about
organizations.
System theory views an organization as an organism made up of
numerous parts (sub-systems) that must work together in harmony for the
larger system .
It focuses on the complexity and interdependency of systems by combining
all components and analyzing their overall impact to the productivity.
18. Limitations:
It is not a perspective management theory as it does not specify tools and
techniques for practicing managers.
Too abstract-difficult to apply in practical problems.
