AIOU Course Code 1427-1 Solved Assignment Spring 2022
B.A Solved Assignment Spring 2022
Assignment No. 1
Q.1 Differentiate between economic environment and cultural environment.
The cultural environment consists of the influence of religious, family, educational, and social systems in the marketing system. Marketers who intend to market their products overseas may be very sensitive to foreign cultures. While the differences between our cultural background in the United States and those of foreign nations may seem small, marketers who ignore these differences risk failure in implementing marketing programs. Failure to consider cultural differences is one of the primary reasons for marketing failures overseas.
This task is not as easy as it sounds as various features of a culture can create an illusion of similarity. Even a common language does not guarantee similarity of interpretation. For example, in the US we purchase “cans” of various grocery products, but the British purchase “tins”. A number of cultural differences can cause marketers problems in attempting to market their products overseas. These include: (a) language, (b) color, (c) customs and taboos, (d) values, (e) aesthetics, (f) time, (g) business norms, (h) religion, and (i) social structures. The importance of language differences cannot be overemphasized, as there are almost 3,000 languages in the world. Language differences cause many problems for marketers in designing advertising campaigns and product labels. Language problems become even more serious once the people of a country speak several languages. For example, in Canada, labels must be in both English and French. In India, there are over 200 different dialects, and a similar situation exists in China. Colors also have different meanings in different cultures. For example, in Egypt, the country’s national color of green is considered unacceptable for packaging, because religious leaders once wore it. In Japan, black and white are colors of mourning and should not be used on a product’s package. Similarly, purple is unacceptable in Hispanic nations because it is associated with death.
An individual’s values arise from his/her moral or religious beliefs and are learned through experiences. For example, in America, we place a very high value on material well-being and are much more likely to purchase status symbols than people in India. Similarly, in India, the Hindu religion forbids the consumption of beef, and fast-food restaurants such as McDonald’s and Burger King would encounter tremendous difficulties without product modification. Americans spend large amounts of money on soap, deodorant, and mouthwash because of the value placed on personal cleanliness. In Italy, salespeople call on women only if their husbands are at home.
The term aesthetics is used to refer to the concepts of beauty and good taste. The phrase, “Beauty is in the eye of the beholder” is a very appropriate description for the differences in aesthetics that exist between cultures. For example, Americans believe that suntans are attractive, youthful, and healthy. However, the Japanese do not.
Americans seem to be fanatical about time when compared to other cultures. Punctuality and deadlines are routine business practices in the US. However, salespeople who set definite appointments for sales calls in the Middle East and Latin America will have a lot of time on their hands, as business people from both of these cultures are far less bound by time constraints. To many of these cultures, setting a deadline such as “I have to know next week” is considered pushy and rude.
A person’s religious beliefs can affect shopping patterns and products purchased in addition to his/her values, as discussed earlier. In the United States and other Christian nations, Christmastime is a major sales period. But for other religions, religious holidays do not serve as popular times for purchasing products. The key concepts of economics are supply and demand, the rate of interest, the rate of exchange, production, inflation, international trade, balance of payment, and more. Economics enables individuals to think with logical reasoning and to read theories, so that they can be applied in understanding the mechanism of economies around the world.
It allows people to be able to comprehend the complex issues of an economy in such a way that they are able to gain benefit out of it. Microeconomics deals with economic decisions at a micro level. It is about people and firms in any given economy and evaluating the element of human behavior. For example, micro economics tells you the impact of price on purchasing decision of a consumer. On the other hand, macroeconomics deals with decisions at a large level. It deals with aggregate decisions taken by people of a particular country, for example, it caters the questions like the influence of the change in interest rates on national savings. Both micro and macro-economics are connected with each other, and can be helpful for individuals and the overall economy to make informed decisions. Industrial economics is a study of corporate sectors, industries and markets, which includes the firm of all sizes and levels, from a small grocery store to a superstore or shopping malls. It includes different industries, such as, car production, electricity generation, or food industry. Financial economics is a branch of economics that focuses on monetary activities. It is concerned with the relationship of various financial variables, including rates of interests, asset prices and shares. It comprises the key issues faced by individuals and countries around the world, including poverty, recession, tax decisions, economic downturn, globalization, pollution, and trading. It is basically about why individuals or the government makes certain choices. It also includes the likely impact of government decisions on the economy of that country as well as on the global economy.
The ecosystem encompasses both social and natural systems. There is a permanent relationship between these two systems based on their impacts on each other. These impacts are a result of social, political, economic and cultural conditions in society. These factors are also important for the determination of the environmental awareness in any region. In order to show the relationship between environmental awareness and these factors, a study of questionnaire has been made in Küçükçekmece Watershed. This area is the basin of one of the most important water resources, called Küçükçekmece Lake, in İstanbul. The majority of people coming to live in Istanbul have chosen to settle in this area. Today, the watershed is under a very serious pollution load. The results of the study made in the region have showed that socio-economic and cultural structures of the people affect their environmental awareness and their impacts on the region. Keywords: environmental awareness, socio-economic factors, cultural structure, natural system, social system. 1 Introduction Ecosystem is a whole covering different kinds of biotic organisms and their abiotic environment.
Q.2 Describe different kinds of managers from both horizontal and vertical perspective and provides examples.
Managers function in a number of roles including leading, sharing information, and making decisions. How often they play a particular role depends on the level they occupy and the type of organization. We’ll talk about the differences between top managers, middle managers, first-line managers, and team leaders.
A main disadvantage of vertical management is that it limits information flow from the lower levels of the organization to the upper levels (like water, information flows downhill easily). Without easy two-way communication, top management can become isolated and out of touch with how its plans affect core processes in the organization. It also fosters vertical thinking. Vertical thinking refers to using traditional and recognized methods to solve particular problems. It is the opposite of “thinking outside of the box.” The digital age exposed the shortcomings of management that addressed problems in formal or bureaucratic approaches at the expense of creativity and innovation. Today, many organizations use “flatter” structures, with fewer levels between the company’s chief executives and the employee base. Most organizations, however, still have four basic levels of management: top, middle, first line, and team leaders.
As you would expect, top-level managers (or top managers) are the “bosses” of the organization. They have titles such as chief executive officer (CEO), chief operations officer (COO), chief marketing officer (CMO), chief technology officer (CTO), and chief financial officer (CFO). A new executive position known as the chief compliance officer (CCO) is showing up on many organizational charts in response to the demands of the government to comply with complex rules and regulations. Depending on the size and type of organization, executive vice presidents and division heads would also be part of the top management team. The relative importance of these positions varies according to the type of organization they head. For example, in a pharmaceutical firm, the CCO may report directly to the CEO or to the board of directors.
Top managers are ultimately responsible for the long-term success of the organization. They set long-term goals and define strategies to achieve them. They pay careful attention to the external environment of the organization: the economy, proposals for laws that would affect profits, stakeholder demands, and consumer and public relations. They will make the decisions that affect the whole company such as financial investments, mergers and acquisitions, partnerships and strategic allia Middle managers have titles like department head, director, and chief supervisor. They are links between the top managers and the first-line managers and have one or two levels below them. Middle managers receive broad strategic plans from top managers and turn them into operational blueprints with specific objectives and programs for first-line managers. They also encourage, support, and foster talented employees within the organization. An important function of middle managers is providing leadership, both in implementing top manager directives and in enabling first-line managers to support teams and effectively report both positive performances and obstacles to meeting objectives. Alliances, and changes to the brand or product line of the organization.
First-line managers are the entry level of management, the individuals “on the line” and in the closest contact with the workers. They are directly responsible for making sure that organizational objectives and plans are implemented effectively. They may be called assistant managers, shift managers, foremen, section chiefs, or office managers. First-line managers are focused almost exclusively on the internal issues of the organization and are the first to see problems with the operation of the business, such as untrained labor, poor quality materials, machinery breakdowns, or new procedures that slow down production. It is essential that they communicate regularly with middle management.
In a vertical organization, your business has a pyramidal top-down structure, with a CEO, president or owner at the top, a middle section of managers and supervisors, and a bottom section of regular employees. As a business owner, you would make all the major decisions about marketing, sales, and customer service standards, then communicate those decisions to your middle management. These managers would then be responsible for telling your employees the work processes that will achieve desired goals. The word “vertical” refers to the fact that the organization works from the top to the bottom, and that employees are not required or expected to contribute to the choices that you make regarding how the company operates. In a horizontal organization, your business has a flat structure, which means there are very few managers and more authority is granted to rank-and-file employees. This system allows employees to feel empowered, because they can make important decisions without needing approval from a manager. Rather than having to satisfy a manager, employees in a horizontal organization are motivated and driven by company goals, which can improve efficiency and morale.
One of the main differences between vertical and horizontal business organizations is that in a vertical system, upper-level management issues orders and employees follow those orders without input or objection. In contrast, employees in a horizontal organization are encouraged to make suggestions and offer ideas that can improve workplace processes, and are given the authority to implement changes without having to obtain authorization.
Another difference is that the multiple layers of management can hamper communication in a vertical organization. For example, if a CEO issues an order that employees simply can’t execute, it can take weeks before employees tell their managers why they can’t achieve the order they’ve been given, and then another week before managers communicate this information back up to the top of the chain. In a horizontal organization, communication flows freely between team members, because there is no rigid hierarchy, and this can boost efficiency and productivity. Employees in a horizontal organization are also more collaborative because they can communicate freely with each other. In a vertical organization, collaboration only occurs when managers schedule meetings with employees.
Vertical organizational structures define a clear chain of command. The highest levels of managers make decisions about sales, marketing, customer service and other standards and communicate them to middle managers. Middle managers assign work to employees and communicate processes and goals. Employees complete the work, and the work goes through middle management and upper management for approval. Decision makers vary in each company and organizational structure. However, in vertical organizational structures, it’s often only the highest level of managers who have the authority to make decisions. Conversely, horizontal organizational structures often empower employees to make decisions about certain things, and they may rarely require manager approval. Different organizational structures may have different levels and types of employees. Vertical structures often have many managers. These structures include middle-level managers and upper-level managers. Horizontal structures, however, often have a few managers with many autonomous employees.
Different organizational structures embrace different levels of employee input. Horizontal organizational structures encourage employees to share their ideas or suggest ways to improve processes. Some organizations allow employees to implement changes without authorization from managers. However, vertical organizational structures rarely ask for input from employees, expecting employees to follow orders from their managers without objecting to them.
Q 3. Discuss the main kinds of managerial roles with examples.
In carrying out the responsibilities of planning, organizing, leading, and controlling, managers take on many different roles. A role is a set of behavioral expectations, or a set of activities that a person is expected to perform. Managers’ roles fall into three basic categories: informational roles, interpersonal roles, and decisional roles.
In an informational role, the manager may act as an information gatherer, an information distributor, or a spokesperson for the company. A manager’s interpersonal roles are based on various interactions with other people. Depending on the situation, a manager may need to act as a figurehead, a company leader, or a liaison. When acting in a decisional role, a manager may have to think like an entrepreneur, make decisions about resource allocation, help resolve conflicts, or negotiate compromises In every function performed, role taken on, and set of skills applied, a manager is a decision maker. Decision-making means choosing among alternatives. Decision-making occurs in response to the identification of a problem or an opportunity. The decisions managers make fall into two basic categories: programmed and non-programmed. Programmed decisions are made in response to routine situations that occur frequently in a variety of settings throughout an organization. For example, the need to hire new personnel is a common situation for most organizations. Therefore, standard procedures for recruitment and selection are developed and followed in most companies.
Infrequent, unforeseen, or very unusual problems and opportunities require nonprogrammed decisions by managers. Because these situations are unique and complex, the manager rarely has a precedent to follow. The earlier example of the Norfolk Southern employee, who had to decide the best way to salvage a five-mile-long piece of railroad track from the bottom of Lake Pontchartrain, is an example of a nonprogrammed decision. Likewise, when Hurricane Katrina was forecast to make landfall, Thomas Oreck, then CEO of the vacuum manufacturer that bears his name, had to make a series of nonprogrammer decisions. Oreck’s corporate headquarters were in New Orleans, and its primary manufacturing facility was in Long Beach, Mississippi. Before the storm hit, Oreck transferred its computer systems and call-center operations to backup locations in Colorado and planned to move headquarters to Long Beach. The storm, however, brutally hit both locations. Oreck executives began searching for lost employees, tracking down generators, assembling temporary housing for workers, and making deals with UPS to begin distributing its product (UPS brought food and water to Oreck from Atlanta and took vacuums back to the company’s distribution center there). All of these decisions were made in the middle of a very challenging crisis environment.
Whether a decision is programmed or nonprogrammer, managers typically follow five steps in the decision-making process
Recognize or define the problem or opportunity. Although it is more common to focus on problems because of their obvious negative effects, managers who do not take advantage of new opportunities may lose competitive advantage to other firms.
Gather information so as to identify alternative solutions or actions.
Select one or more alternatives after evaluating the strengths and weaknesses of each possibility.
Put the chosen alternative into action.
Gather information to obtain feedback on the effectiveness of the chosen plan.
It can be easy (and dangerous) for managers to get stuck at any stage of the decision-making process. For example, entrepreneurs can become paralyzed evaluating the options. For the Gabby Slome, the cofounder of natural pet food maker Ollie, the idea for starting the company came after her rescue dog began having trouble digesting store-bought pet food after living on scraps. Slome decided that the pet food industry, a $30 billion a year business, was ripe for a natural food alternative. She laments, however, that she let perfect be the enemy of the very good by indulging in “analysis paralysis.”
- Transmits information to people outside the organization
- Representing the company at a shareholders’ meeting
Specialized areas of knowledge and expertise and the ability to apply that knowledge make up a manager’s technical skills. Preparing a financial statement, programming a computer, designing an office building, and analyzing market research are all examples of technical skills. These types of skills are especially important for supervisory managers because they work closely with employees who are producing the goods and/or services of the firm. Human relations skills are the interpersonal skills managers use to accomplish goals through the use of human resources. This set of skills includes the ability to understand human behavior, to communicate effectively with others, and to motivate individuals to accomplish their objectives. Giving positive feedback to employees, being sensitive to their individual needs, and showing a willingness to empower subordinates are all examples of good human relations skills. Identifying and promoting managers with human relations skills are important for companies. A manager with little or no people skills can end up using an authoritarian leadership style and alienating employees. Conceptual skills include the ability to view the organization as a whole, understand how the various parts are interdependent, and assess how the organization relates to its external environment. These skills allow managers to evaluate situations and develop alternative courses of action. Good conceptual skills are especially necessary for managers at the top of the management pyramid, where strategic planning takes place.
Create an unforgettable customer experience” may sound like a cliché, but this is our golden rule. Despite waist-high water and treacherous conditions, we had several international orders that needed to be shipped the Wednesday after Hurricane Harvey hit. FedEx and UPS had ceased operations around the Houston area during the storm, but our CEO Brian Gavin was determined to deliver an outstanding customer service experience. That’s why he drove with the packages in hand to the nearest FedEx store that was open: College Station. The standard three-hour round trip ended up taking five hours.
Q.4 Explain the following:
- a) Classical Management theory
The classical management theory was introduced during the Industrial Revolution as a way to improve productivity within factories and other businesses. While less common in today’s society, this type of management may still provide benefits for some organizations. In this article, we will discuss what the classical management theory is as well as the pros and cons of this form of management in the modern workplace.
The classical management theory is a style of management that emphasizes hierarchy, specialized roles and single leadership for optimized efficiency in the workplace.
The classical management theory is based on the following principles:
Scientific management should be used to determine the most efficient way to do a job. Employees are selected to perform tasks based on their skills and specializations. Operations should be streamlined as much as possible. Decisions are made by a single person or by a select few authority figures. Productivity is the primary goal. Increased profit is given priority. Additionally, the classical management theory holds that an ideal workplace is one that implements the following concepts:
Centralized structure of leadership
The classical management theory holds that a workplace should be overseen by three levels of leadership. The first level is composed of the business owners and/or executives of the company. These individuals are given the highest level of authority and set the long-term goals of an organization. The second level of leadership consists of middle management. Individuals considered to be middle management are in charge of overseeing managers and setting department-level goals. The third level is composed of supervisors or managers who oversee the day-to-day operations of a company.
This concept focuses on an “assembly line” set up within an organization. This structure involves breaking down large tasks or projects into smaller tasks that are assigned to employees. Workers are typically responsible for only one specific task to prevent multitasking and increase productivity.
The classical management theory places emphasis not on employees’ job satisfaction or social needs but rather on physical needs. This theory holds that these physical needs can be met through income and monetary incentives and uses the opportunity for wage increases to motivate employees.
Advantages of the classical management theory
While not as common within the modern workplace, the classical management theory can provide several benefits in the appropriate business setting. The following are a few advantages of this type of management:
Clear organization hierarchy
As discussed above, the classical management theory includes three distinct levels of management within an organization. This provides a clear outline of responsibilities and objectives for each member of management and reduces any confusion as to what a particular manager should focus on.
An easy-to-understand division of labor
Under the classical management theory, organizations establish clear divisions of labor that plainly outline the expectations and duties of an employee. Tasks are typically easier to understand and employees are given specific projects to complete that fall within their abilities and specializations. As a result, productivity is often increased and workers avoid having to multitask to fulfill their duties.
- b) Behavioral management theory
The behavioral management theory is often called the human relations movement because it addresses the human dimension of work. Behavioral theorists believed that a better understanding of human behavior at work, such as motivation, conflict, expectations, and group dynamics, improved productivity.
The theorists who contributed to this school viewed employees as individuals, resources, and assets to be developed and worked with — not as machines, as in the past. Several individuals and experiments contributed to this theory.
Elton Mayo’s contributions came as part of the Hawthorne studies, a series of experiments that rigorously applied classical management theory only to reveal its shortcomings. The Hawthorne experiments consisted of two studies conducted at the Hawthorne Works of the Western Electric Company in Chicago from 1924 to 1932. The first study was conducted by a group of engineers seeking to determine the relationship of lighting levels to worker productivity. Surprisingly enough, they discovered that worker productivity increased as the lighting levels decreased — that is, until the employees were unable to see what they were doing, after which performance naturally declined.
A few years later, a second group of experiments began. Harvard researchers Mayo and F. J. Roethlisberger supervised a group of five women in a bank wiring room. They gave the women special privileges, such as the right to leave their workstations without permission, take rest periods, enjoy free lunches, and have variations in pay levels and workdays. This experiment also resulted in sign In this case, Mayo and Roethlisberger concluded that the increase in productivity resulted from the supervisory arrangement rather than the changes in lighting or other associated worker benefits. Because the experimenters became the primary supervisors of the employees, the intense interest they displayed for the workers was the basis for the increased motivation and resulting productivity. Essentially, the experimenters became a part of the study and influenced its outcome. This is the origin of the term Hawthorne effect, which describes the special attention researchers give to a study’s subjects and the impact that attention has on the study’s findings.
The general conclusion from the Hawthorne studies was that human relations and the social needs of workers are crucial aspects of business management. This principle of human motivation helped revolutionize theories and practices of management.
Abraham Maslow, a practicing psychologist, developed one of the most widely recognized need theories, a theory of motivation based upon a consideration of human needs . His theory of human needs had three assumptions:
Human needs are never completely satisfied.
Human behavior is purposeful and is motivated by the need for satisfaction.
Needs can be classified according to a hierarchical structure of importance, from the lowest to highest.
Maslow broke down the needs hierarchy into five specific areas:
Physiological needs. Maslow grouped all physical needs necessary for maintaining basic human well‐being, such as food and drink, into this category. After the need is satisfied, however, it is no longer is a motivator.
Safety needs. These needs include the need for basic security, stability, protection, and freedom from fear. A normal state exists for an individual to have all these needs generally satisfied. Otherwise, they become primary motivators.
Belonging and love needs. After the physical and safety needs are satisfied and are no longer motivators, the need for belonging and love emerges as a primary motivator. The individual strives to establish meaningful relationships with significant others.
Esteem needs. An individual must develop self‐confidence and wants to achieve status, reputation, fame, and glory.
Self‐actualization needs. Assuming that all the previous needs in the hierarchy are satisfied, an individual feels a need to find himself.
Maslow’s hierarchy of needs theory helped managers visualize employee motivation.
Douglas McGregor was heavily influenced by both the Hawthorne studies and Maslow. He believed that two basic kinds of managers exist. One type, the Theory X manager, has a negative view of employees and assumes that they are lazy, untrustworthy, and incapable of assuming responsibility. On the other hand, the Theory Y manager assumes that employees are not only trustworthy and capable of assuming responsibility, but also have high levels of motivation.
Mary Parker Follett
Although she was a contemporary of Taylor and the Gilbreths, author and advisor Mary Parker Follett had a very different frame of reference and her ideas form the basis of our understanding of modern organizational behavior. A former social worker, she understood power dynamics and stressed the importance of human psychology and human relations rather than a mechanical or scientific approach to work and management-employee interactions. In its biography, ThoughtCo. notes that “Follett was one of the first people to integrate the idea of organizational conflict into management theory.” And, indeed, her idea of conflict as a place of opportunity is even more relevant today. Specifically, Follett proposed that conflict, rather than requiring compromise, could be a stimulus for innovation. In an essay written in 1924, Follett coined the terms “power-over” and “power-with,” differentiating between coercive and participative power and demonstrating how “power-with” can be greater than “power-over.” Although her work is rarely or only marginally covered, her ideas have shaped theories in psychology and management, including Abraham Maslow’s work. For perspective, management consultant Peter Drucker, whom BusinessWeek referred to as “the man who invented management” called Follett the “prophet of management” and his “guru.
Q.5. Why knowledge of the evaluation of management theories is important to managers? Explain it.
Management theories help organizations to focus, communicate, and evolve. Using management theory in the workplace allows leadership to focus on their main goals. When a management style or theory is implemented, it automatically streamlines the top priorities for the organization. Management theory also allows us to better communicate with people we work with which in turn allows us to work more efficiently. By understanding management theory, basic assumptions about management styles and goals can be assumed and can save time during daily interactions and meetings within an organization.
Theories can only reach so far, and management theories are no exception. There is no such thing as a one-size-fits-all management theory. What may work for one organization may not be relevant for another. Therefore, when one theory does not fit a particular situation, it is important to explore the option of developing a new theory that would lead in a new, more applicable direction. While some theories can stand the test of time, other theories may grow to be irrelevant and new theories will dev The Industrial Revolution brought better and faster technology allowing companies to perform more efficiently than ever before and gave them the ability to dramatically increase their output. However, increased output meant lower prices which increased demand which in turn required more employees. Companies that once had a couple dozen employees were now growing into gigantic corporations. No longer was it possible for a manager to know each and every one of their employees on a friendly level. In order to meet demand, company leadership had to ensure their employees were productive. Sounds simple, right? Not exactly.
While productivity goals can be set easily, managing a team to meet productivity goals was not so simple. For the first time, managers had to find new and innovative ways to motivate a sizable number of employees to perform. Since this was a new concept, research, observations, experiments, and trial and error were all used to find new and better ways to manage employees. The Industrial Revolution gave birth to a variety of management theories and concepts, many of which are still relevant and essential in today’s workforce. In addition, many management theories have developed since the end of the Industrial Revolution as society continues to evolve. Each ma People who create management theories rely upon observation and mathematics in order to construct a model for business activities. Management practice relies upon case studies and the individual experiences of managers when dealing with workplace situations. Since both schools of management have flaws and benefits, a business owner should study both styles of management in order to improve profitability. Employees most commonly leave their jobs due to poor management practices, a situation that increases costs and lowers the talent present in a business. Business owners should understand good management practices through personal research or formal education in order to create a business model that can improve employee productivity, eliminate redundancy in processes and increase retention rates.
Management theories face limitations, because models of human behavior in a business do not consider all of the variables that can impact profitability. Different businesses face different issues with employees, financial resources and the use of technology.
For example, a workplace of single mothers requires a company to focus more on family leave, a consideration that a theorist might not work into a general business model. Management practice can also result in flawed management behavior, because managers cannot see the business as a whole and instead rely solely upon their own experience.
Management theories work best from a macro perspective, such as when a business determines the appropriate model for management as a whole or starts a large project that it has never attempted before. The formal structure of this type of management works best for large corporations that have a top-down management structure which requires uniformity in order to accomplish goals, even if this model slightly decreases productivity. Since management practices rely upon the opinions of managers and employees or a case study in a particular area of business, they work best for informal organizations. Little doubt exists as to whether a management model will work, because the track record of the model speaks for itself. Management practices focus more on dynamics between groups, which allows managers more flexibility in making decisions and helps employees function together as a unit when they work together on a project.
Every management theory is relevant to managers in one way or the other. All the management theories address some aspects of management and shed light into the best way to handle management (Heller 2006). It is many years since some of the management theories but they form important foundation to management decisions and practice.
The world today is very much different from the world when classical management theories were developed. Advancement in knowledge and technology, and globalization make management aspects today to be different. However, the classical management theories form important base for managerial practice despite of various criticism against them. The situation during industrial revolution made close supervision, impersonal bureaucracy and focus on rules and regulation, to be necessary.
When assessing classical theories, one should therefore consider the period and conditions on which they were developed. For instance, Taylor’s scientific management was developed when United States was moving from a state of civil war to industrialization. Taylor’s recommendation for every segment of an organization to be specified and management to be impersonal and neural can be understood in context of the time in which the theory was formulated
Managers can take advantage of well tested and upcoming management theories. The main reason as to why managers lose confidence on management theories is multiplicity of the theories and various criticisms to the theories. It is prudent to appreciate that management is more an art than science and there are many channels to good management.
Management theories therefore try to suggest the best approach to management in a particular context. Managers must not reject a management theory just because it has been shown not to be accurate or applicable at a particular situation. In context of technological advancement and global environment, modern organizations have to adopt management practices that are consistent with their situations.