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Classical Management Theories

The Bureaucratic Management continues to be used in the USA by service-based organizations such as libraries. One concrete example where Fayols Bureaucratic Management ideas remain in use reaches the Wichita Express School Libraries. Bureaucracy is also still being used in the US Postal Service.

In Mauritius, mass production lines and piece rate systems are being used in the garment and production establishments. Another industry where the Classical Management Theories are still in use is in the sea-food hub, more specifically at the Mauritius Tuna Processing Plant.

Mauritius and its own economy are in a pivotal point. The speed of change is exhilarating. That's the reason in his budget conversation 2008-2009, Hon. Rama Sithanen, Minister of Finance described the urgency for our current economic climate to switch from the original pillars to a service-oriented current economic climate also to a knowledge-based contemporary society. For example, he advocated that the ICT sector must enhance the pillars of the Mauritian current economic climate. Business leaders expect ICT to truly have a greater effect on their business. The sectors experiencing the best change are the technology, telecommunications and financial services. The Minister also stressed on the development of the SMEs as he formulated that in conditions of job creation, new careers will come typically from smaller businesses and medium-sized companies.

But since the formulation of the Classical Management Ideas in the 18th century, the monetary landscape has altered. Businesses do not exist in vacuum pressure. They are actually wide open systems with constant and dynamic interaction with the surroundings. Today's business environment is global and highly competitive. Managers are becoming ever more aware of the effects of the business enterprise environment

There are two areas of the business environment, namely the inner and the external environment. The internal environment pertains to those factors that the company can relatively control. These are the owners, employees, customers, suppliers, regulators and pressure categories. But the external environment that constitutes the PEST (Political, Economical, Friendly and Technological) factors is relatively remote from the particular company can control. Without the capability to analyse the strength and weaknesses of the internal and the opportunities and dangers of the external environments, managers risk making decisions that are not in the best interest of the company. At exactly the same time, worldwide concern about the environment has emerged. Current natural environmental concerns are pollution, weather changes, ozone depletion and other global issues like biodiversity, sufficient water supplies, population and food security. As McDonald's concluded, today's managers have to be concerned not only with the clinical facts but with public perception.

Today's business environment is characterized with changes, innovations and uncertainty. It is becoming more difficult amid global monetary slowdown and turmoil in the financial sector. Businesses must at all cost adapt or pass away. Out of five businesses experiencing a tragedy or expanded outage,

a) Two never re-open their entry doors.

b) One of the remaining three will close within 2 yrs.

The business environment is exceedingly difficult and competitive. Competition is intensifying in many sectors. Technology is continually creating new opportunities and risks. You will discover changes to the regulatory environment: the arrival of the Equal Opportunities Act being truly a clear example. Customer preferences are also changing - providing a moving aim for. Smart companies operating in highly competitive business conditions are working hard to boost efficiency and output, test high-yielding new initiatives, and distinguish themselves from rivals.

Command and Control Management style (as mentioned in the Classical Management Ideas) is effective in an environment where both change and competition are limited and there is enough room for mistake (high profit margins). Such is not the case in the age of computing and marketing communications. In the current business environment, things change rapidly and income are reducing. Furthermore, more things are occurring on a continuing basis. Due to the speed at which things are changing, it is important to drive decision-making down in the organization to the level that has all the information at that time whenever a decision must be produced. This demands completely different management behaviour, it calls for a democratic and flexible viewpoint and of course accountability must be delegated. All these are not within the Classical Management Theories.

Rapid change that is sweeping through every aspect of the business enterprise environment today prompts professionals to rethink the ways they do things. But the Classical Management model has improved quite a bit, it is still targeted at a rigid structure and command-and-control mentality. This model was well tailored to an environment where change was gradual and evolutionary somewhat than fast and ground-breaking. It helped organise operations and foster a feeling of accountability, order and willpower. What it lacks is flexibility, making the company irresponsive to continuous internal and exterior environment changes. We have come to a limit to what can be accomplished using the Classical Management strategies. But by changing just how managers do things, that constraint can be removed. This is not to state that the fundamentals of Classical Management should be disregarded, nonetheless they are just not enough to complete the job in the current business environment.

Although Classical Management Theories are very useful in the early stages of economic development, they are not an adequate justification of how to manage organisations in a sophisticated, developed society. With regards to seeking cost, efficiency, production and profitability advancements, the Classical Management Ideas have a restricted field of action. Managers have to get used to the idea that what did the trick yesterday won't tomorrow. They need to work on tomorrow today. When the business enterprise environment becomes more difficult, it really is an opportune time for managers to take into account ways to reinvent their business. We find that new managers are willing to investigate innovative answers to business problems because they're unhampered by the limits of tools and methods of the past. It is not a lot that established professionals are not eager to change; they have more to do with that fact they are using methods which were suitable for different circumstances. And they worked. So, established managers need to be prepared to discard something that is effective for the coffee lover. Managers need to work with today's tools to resolve today's problems. They must be ready to learn about new means of doing things.

To compete efficiently in the global world, managers must now act as internet marketers and create home based business models - rethink, re-plan, strategize, innovate and find out continuously. Invention is the most crucial source for organisations to get competitive benefit, and advanced development management is crucial to a business's ecological development. Classical Management theories can't catch up with the dramatic changes of the business environment. Once-reliable guides for managerial activities no longer are present. Within an environment nearly bereft of the old rules of doing business, there is absolutely no back-up. Every process, process, guideline and standard ratio has been challenged, re-engineered and morphed into a fresh form. This important change has brought a daunting new certainty to the challenge of growing and managing business.


Today, organizations are largely affected by the external environment (brutal market show competition, constant technology change, globalisation, hiring and retaining certified executives and leading line individuals) that often fluctuate as time passes. Yet Classical Management Theories present an image of an organisation that's not shaped by exterior influences. Classical Management Theories are now slowly but surely fading for the principal reason that individuals and their needs are believed by Classical theorists as supplementary to the needs of the organisation. Nowadays, The Scientific strategy is very critically challenged by Human Source Management. Furthermore, The Bureaucratic Management is fast presenting way to the Matrix Framework in organisations. However, Classical Management ideas are essential because they released the concept of management as a topic for intellectual evaluation and provided a basis of ideas that have been developed by subsequent institutions of management thought.

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