15CHE473

Principles of management and accounting

Assignment 2
What, in your opinion, is the role/importance of the classical management theories in
modern management theory?
Its my understanding that Classical theories of management is general and modern theories are
more specific.

Classical theories attempt to identify general rules of management or organization that should
apply to all types of enterprises. Modern theory of management is called contingency theory. It
takes the view that management and leadership vary according to circumstances, and what is
best in one situation may not be the best in another.

Classical management theory is based on the concept that workers need only physical and
economic needs. It does not include social and job satisfaction of the workers. Classical
management theory has the main aim to maximize the profit of the company. For example,
when problems arose, managers developed solutions to increase management efficiency under
the following three categories: administrative principles, implementation of bureaucratic
organizational structures and scientific management.

classical approach approaches are based on task, organizational structure and efficiency; and
emotions and human behaviour respectively

The modern management theory is based on complex employee perspective which describes
individuals as both complex and variable. The modern management theory assumes that
employees have several motives and they learn new dynamic motives as they continue to gain
experience, and these motives differ in different companies. So, it can be deduced that different
managerial strategies should be applied to different organizations according to the conditions in
which they operate.

The modern management theory delivers a more holistic approach to solving management
problems by looking at the organization as a whole.

It can be concluded that Modern management theory focuses on meeting the individual needs
of an organization and solving its complex problems in the best possible manner. On the other
hand, the previous approaches like a classical theory were more business and production
centric, and were more about how to increase efficiency of the business without consideration
of employees.

Thank you,

RITHIK.