1.
Classical Management
Contingency Management
Modern Management
Presentors: Group 3 Abuan, Dianne Kareen
Boado, Rhea Joy
Boquil, Kimberly
Potingan, Kate
Ubando, Myla

2.
Classical
Management
introduced during the Industrial Revolution as a
way to improve productivity within factories and
other businesses.
Three Main Concepts
 Centralized structure of leadership / hierarchical
structure
 Labor specialization
 Wage incentives
This 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.

3.
ADVANTAGES
Clear Organization Hierarchy
An easy-to-understand division of labor
Increased productivity through
monetary rewards
Single-leader decision making
DISADVANTAGES
Limited emphasis on employee
job satisfaction and human relations
Increased levels of pressure
placed on employees
Restricts the implementation of new ideas and
concepts

4.
Tips for implementing
the classical
management theory in
your business
Establish a standard operating
procedure
Complete the task selection process
in a considerate way
Regularly provide worker incentives

5.
Contingency
Management
often called the Situational Approach that is
based upon the premise that all management
is essentially situational in nature. All
decisions by managers will be affected (if not
controlled) by the contingencies of a given
situation.
Environmental contingencies:
• Internal contingency factors –size,
people, technology, structure
• External contingency factors – socio-
cultural factors, legal/political factors,
economic factors, technological factors

6.
Primary characteristics of the Contingency Approach
 Non-universality of management theory
 Information and Communication
 Contingency
 Environment
 Diagnostics
 Human
How do Contingencies Affecting
Organizational Structure?
According to theorists Burns and Stalker, in their text
"Management of innovation" (1968), there are two
types of organizational structure (mechanistic) and
(organic) and two categories of the environment
(stable and dynamic).

7.
ADVANTAGES
It provides a realistic view of management and
organization.
It discards the universal validity of principles.
Managers are situation-oriented and not
stereotyped.
Lends itself to an innovative and creative
management style.
DISADVANTAGES
It does not have a theoretical base.
Executive is expected to know all the alternative
courses of action before taking action in a situation
that is not always feasible.
It does not prescribe a course of action.
A situation can be influenced by many factors. It is
difficult to analyse all these factors.

8.
The contingency approach to management is based on the
idea that there is no single best way to manage.
Contingency refers to the immediate contingent
circumstances. Effective organizations must tailor their
planning, organizing, leading, and controlling to their
particular circumstances. In other words, managers should
identify the conditions of a task, the requirements of the
management job, and people involved as parts of a
complete management situation. The leaders must then
work to integrate all these facets into a solution that is
most appropriate for a specific circumstance.

9.
Modern Management
This theory recognizes that workers are
complex and have many reasons for
wanting to succeed in their job.
This theory also believes that rapidly
changing technology can both cause and
solve many problems in the workplace
employees work for numerous reasons:
to achieve satisfaction
Happiness
desired lifestyles

10.
Modern management theory gives more attention
on the satisfaction of employees.
It does not only focus on working setup, strategies and
techniques but also pay attention on employees
satisfaction area to enhance the productivity of
organization.

11.
Benefits of the modern theory of management
● Boosts productivity
● Aids decision-making
● Improves employee engagement
● Promotes objectivity
● Enables adaptability

12.
Types of Modern Management Theories
1. Quantitative Theory. uses statistics and
mathematical techniques to solve complex
problems. Depending on the business area,
managers may use techniques like computer
simulations or information models to assess
performance.
2. Contingency Approach. every situation requires
a different leadership style, and therefore no one
theory can work for an entire office.
3. Systems Approach. all parts of a company, from
the CEO to the entry-level employee, must work in
harmony for the company to survive.

13.
Evaluation of the Types of Modern Management Theories
1. Quantitative Theory. helps in defining
and solving complex problems but too
narrow
2. Contingency Approach. the manager is
expected to know all the alternative
courses of action before making a
decision
3. Systems Approach. Cannot be easily
applied to large and complex
organizations .
Has an edge over the other
approaches because it is very close to reality.

14.
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