Classical and Contemporary Management

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International Information Technology University|
Classical and Contemporary Management
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Made by: Aidyn Zhumabekov|

DZHeyD
15.11.2012
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Contents

Introduction...........................................................................................................................3 The Classical School of Management....................................................................................4 Strengths and weaknesses of classical management………………………………………..5 The Contemporary School of Management…………………………………………………7 Conclusion..............................................................................................................................9 References………………………………………………………………………………….10

Introduction
The world of managing people and processes continues to change dramatically. Managers are faced with the conflicting challenges of understanding and motivating an increasingly diverse workforce, being open and accountable to a wide variety of stakeholders, planning for the future in an increasingly changing environment and considering the ethical implications of decision-making. Nevertheless there is a basis of knowledge that was experienced in the years of production boom which is called classical theory of management. In this paper I will describe them both and provide advantages and drawbacks of each.

The Classical School of Management
The classical school is the oldest formal school of management. Its begins to develop from the 20th century. The classical school of management generally concerns ways to manage work and organizations more efficiently. Three areas of study that can be grouped under the classical school are: scientific management, administrative management, and bureaucratic management.

The classical school of management has sought to define the essence of management in the form of universal fundamental functions. These, it was hoped, would form the cognitive basis for a set of relevant skills to be acquired, by all would-be managers through formal education. Body of the classical school's management thought was based on the belief that employees have only economical and physical needs, and that social needs and need for job-satisfaction either don't exist or are unimportant. Accordingly, this school advocates high specialization of labor, centralized decision making, and profit maximization. See also behavioral school of management, contingency school of management, quantitative school of management, and systems school of management. The classical management theory is a school of management in which theorists delved into how to find the best possible way for workers to perform their tasks. The classical management theory is divided into two branches, the classical scientific and the classical administrative. The classical scientific branch comes from the scientific mindset of attempting to increase productivity. During the height of the classical scientific theory, theorists would use almost mechanical methods towards labor and organization to achieve goals of productivity and efficiency. Some of the basic techniques of the classical scientific theory include creating standardized methods for a task and dividing work between employees equally. On the other hand, the classical administrative theory focuses on how management can be organized to achieve productivity. Henri Fayol, a leading figure in management theory, devised several management theories geared towards efficiency, such as creating a unified direction among managers, centralization, and discipline. Other management theories focused on building team confidence, such as establishing teamwork, using initiative, and equity.

Strengths of Classical Management Theory
Current management organization and structure can find much of its roots from the classical management theory. One of the main advantages of the classical management theory was to devise a methodology for how management should operate....
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