Thursday, 12 March 2020

Development of Management Theories


Development of Management Theories

In this unit, an overview of various management theories was provided.
The key characteristics of classical organisation theory being: (a) Division of Labour (b)
Functional Process (c) Structure and (d) Span of Control.
The neo-classical approach was developed as a reaction to the classical principles, it did
not abandon the classical approach altogether, rather it pointed to the limitation of classical
The major facts discovered by these experiments include the important role of groups in
determining the attitude of workers; need for communication among ranks; increasing
satisfaction leads to effective organisation and that people in an organisation are motivating
higher level needs.
It also provided an overview of systems approach and the modern organisational theory.

Bureaucracy: Highly specialized organisation structure
Classical Approach: It emphasises organisational efficiency to increase organisational success.
Hawthorne studies: A group of studies conducted at the Hawthorne plant of the Western Electric
company during the late 1920s and early 1930s whose results ultimately led to the human
relations view of management.
Human Relations Theory: A movement in management thinking and practise that emphasised
satisfaction of employees' basic needs as the key to increased worker productivity.
Scientific management: Scientific study of work to improve efficiency.
Systems theory: It tries to solve problems by diagnosing them within a framework of inputs,
transformation processes, outputs and feedback.

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