What is the difference between classical management theory and modern management theory?

What is the difference between classical management theory and modern management theory?


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 varies according to circumstances, and what is best in one situation may not be the best in another.

What is the difference between classical management theory and modern management theory?

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Q: What is a comparison between classical and modern management theories?

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Modern theory is basically an improvement over classical theory. There are some difference between classical theory and modern theory those theory identify modern theory as a superior position over classical theory. These differences are given as follows:
1. Basis of theory: modern theory seeks to explain the phenomenon of international terms of general theory of value. On the other hand, the classical theory seeks to explain the phenomenon of international terms of labour theory of value.
2. Necessity of a separate theory: The classical theory asserts that there is a need for a separate theory of international trade. On the other hand, the modern theory asserts that there is no need for a separate theory of international trade.
3. Realistic: The modern theory is more realistic than the highly abstract classical theory. Because, the modern theory is the multiple market theory of pricing.
4. Existence of factors of production: The modern theory recognizes the existence of all factors of production (land, labour, capital, organization). But the classical theory takes into account only one factor of production that is labour.
5. Part of the economics: The modern theory can be said as the part of positive economics. On the other hand, the classical theory can be said as the part of welfare economics.
6. Acceptability: The modern theory is more acceptable than the classical theory because the modern theory laid emphasis on all the factor of production whereas the classical theory laid emphasis on the quality of a single factor labour.

Some management theories have been around for over 100 years. Here are some of the most common management theories and why they may or may not work in the modern office.

Classical Management Theory

The Classical Management Theory system of belief states that employees are only motivated by physical and economic needs. It calls for a clear structure of management where the workforce is divided into owners, middle management, and supervisors. This theory views the workplace as an assembly line, with each worker completing a specialized task instead of multitasking. People who utilize this theory believe workers are motivated by financial rewards based on the competency of their work. When companies put this theory to practical use, they will often see an increase in productivity. It can help streamline a company and make employees focus on the bottom line. However, as the theory does not consider social needs, job satisfaction, and human relationships, it can also lead to a sizable amount of burnout among employees. This model exerts a great deal of control over human behaviors and treats employees as a machine. For many companies, Classical Management Theory fell out of favor in the past 60 years as more modern theories emphasized the humanity of the workforce.

Scientific Management Theory

Fredrick Taylor came up with this theory at the end of the 19th century. He believed that using the scientific method will get the best results out of workers in the office. First, use the scientific method to determine the best way to perform a specific task. Next, you assign workers to tasks that match their abilities and train them to maximize their output. Then you must monitor the workers constantly to ensure they are using the most efficient methods. Finally, managers should spend their time training and planning for future work. Parts of the Scientific Management Theory are still in use today. Managers should offer help and advice when needed, and they should always look towards the future. However, now workers get more say about how they think their job should be done and are usually not hired to perform just one specific task. The Scientific Management Theory was best suited to large companies at the turn of the century, not small modern offices.

Bureaucratic Management Theory

The Bureaucratic Management Theory, created by Max Weber in the late 1800s, states that companies should be structured in a hierarchical system with clear rules, roles, and procedures. This theory stresses bureaucracy in six main areas — hierarchical structure, task specialization, formal selection, rules, advancement based on achievement, and an impersonal working environment. Under this theory, promotions are not about personal character or relationships, but strictly based on performance. This management theory has become less popular in the century due to its rigid structure. While in theory it makes sense for an office to have rules and standards which everyone must follow, in practice there will always be emotions and personal relationships in an office which will go against these bureaucratic guidelines.

Theory X and Theory Y

This theory, proposed by Douglas McGregor in 1960, believes that there are two main management styles and leaders must choose which style to employ based on the perceived motivation of their employees. Leaders should use Theory X when dealing with a workforce that is unmotivated and dislikes work. Managers who use Theory X must use an authoritarian work style to get anything done. Managers should use Theory Y when they believe their workforce is engaged, self-motivated, and enjoy their job. Managers who use Theory Y use a more participatory style of management. While this theory provides two different options for management, both options are quite extreme. Employees fall somewhere between Theory X and Theory Y, and managers must adjust their management style accordingly. This theory of management has become less popular over time as managers viewed their employees in less stark terms and tried to understand their employees.

What is the difference between classical theory and modern theory?

(viii) The classical theory is a normative or welfare-oriented theory, . whereas the modern theory, is a positive theory. The classical theory tries to demonstrate the gains from international trade, while the; modern theory concentrates on the basis of trade.

What is the difference between classical neo classical and modern management theories?

Classical and neoclassical approach to management made outstanding contribution to the development of management thought. Under classical approach, attention was focused on job and machine. On the other hand, neoclassical approach to management emphasizes on increasing production through an understanding of people.

What is the difference between classical management theories and behavioral management theory?

Classical management theories focus on execution and maximising productivity through external rewards. Behavioural management theories view the workplace as a social environment. The theory seeks to increase human potential through skills training and promoting collaboration.

What is modern management theory?

The modern management theory believes that employees work for numerous reasons, including to achieve satisfaction, happiness and desired lifestyles. With this theory, managers understand employees' behaviors and needs and can implement strategies to meet those needs and support their skill development over time.