Question

Evaluate the following statements regarding the differences between Classical and Modern theories of management:

1. Classical Theory primarily views the organization as a closed system, focusing on internal efficiency through structure and control, while ignoring the external environment.
2. Modern Theory, particularly the Systems Approach, sees the organization as an open system that is heavily influenced by and must adapt to its external environment.
3. The principles of Classical Theory are no longer relevant in today's dynamic business environment and have been completely replaced by the Modern Theory.

• A. All
• B. ii, iii
• C. i, ii
• D. i only

Answer 1

Answer:

C. i, ii

• While modern theories have evolved and expanded upon the classical principles, the core ideas of classical theory, such as a hierarchical structure and division of labor, are still widely used and relevant in today's organizations, forming the foundation of modern management.