...Critique of Classical Theory & The Rise of Keynesian Theory Classical Economic Theory Classical theory of economics states that a free market economy is self-regulating and that with full employment, the economy would reach equilibrium. The classical theory is fundamentally based on the Say's Law which states that "Supply creates its own Demand". This also made the classical economists believe that there was nothing to prevent an economy from growing and hence attaining a state of full employment. This would be achievable as long as employees are willing to work for a wage that was no more than their productivity and in this situation, the profit-seeking businesses would want to employ everyone. According to the Classical economists, full employment of real GDP stays the same regardless of the price level. During a recession or a depression, the aggregate demand in the economy would fall and in the current price levels, consumption reduces and thus there would be an excess of goods in the market. This excess supply would result in the fall of the prices as well as wage rates and hence go back to the state of equilibrium. The Great Depression & critique on the classical economic theory But this theory was proven wrong by the Great Depression as it was seen that when output is below the full employment level, price levels did not fall because wages and resource prices did not fall as they were sticky. In order to have more employees, the employers needed to earn...
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...the rule of the thumb, with scientific management 5. There was transfer of knowledge between the workers and from workers into tools 6. Enumerations were according to work produces. 7. Dictatorship was necessary because humans are lazy in nature and the scientific management required strict supervision 8. Scientific theory ensured efficiency and minimized waste. Applications of the scientific theory in Education Management 1. Members of staff, teaching and non- teaching, should know the aims and objectives of the school. With well-defined aims and objectives, better performance is expected and accountability is facilitated. 2. In school, all teachers must know the direction in which to move and work together for a joint objective specified in their mission statement. 3. He specified that staff should be specialised and this is evident all teachers and even the support staff are employed on basis of subject specialization with college qualification. 4. Provision of appropriate tools and materials to workers and teachers enables them to perform well. Criticism of the scientific theory 1. Humans were...
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...The Classical (Structural) Organizational Theory was introduced in the early 1900s, with an emphasis on the efficiency of the work process. Within this theory there are three schools of thought that include scientific management, bureaucratic management, and administrative management. Scientific Management looks at the best way to perform a job. Frederick Taylor is credited for the development of this principal. Taylor’s approach emphasized increasing productivity by focusing on the efficiency of the production process. Taylor believed that the only way to expand productivity was to raise the efficiency of the workers. He believed that doing this would create more work for more workers and increase production while shortening hours for workers. His theory states that jobs should be designed so that each worker has a well-specified, well-controlled task and specific procedures and methods for those jobs have to be strictly followed (Shafritz & Ott, 2001). This approach would keep workers mentally focused on the task at hand and eliminate the feeling of just putting in time. Production came first and works came second. Taylor developed four principals of scientific management: (1) discover the most efficient way to complete tasks, 2) designate workers to tasks which they are the most qualified to complete, 3) workers must be supervised and either rewarded or punished based on their performance, and 4) managements position consisted of planning and controlling (Shafritz &...
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...10/24/2012 Econ 2 Classical Political Economy and Rise to Dominance of Supply and Demand Theories Supply and demand describes how prices vary as a result of a balance between product availability at each price and the desires of those with purchase power at each price. When supply and demand comes into effect, Capitalism is well expected to be presented upon the economy. That’s the only way for our economy to progress and gain wealth within our nation. In order to progress and grow as an economy Surplus in prices of goods and other products exist, may very well be listed under capitalization in some cases. Surplus means being more than or in excess of what is needed or required. Surplus was said to have originated in production in a competitive capitalist system. I found this very true to believe due to the fact that it is a major deal in society today. I take surplus today to be based solely on greed of the capitalist. America is a Capitalist country itself, seizing any opportunity it can. I’ll get to the supply and demand controversy of that later. When breaking down which one of the surplus-sharing classes during any particular historical phase were ‘progressive’ in the sense of furthering the process of accumulation and how the emerging and accentuating conflict of classes determined the dynamics of the system, I immediately began thinking about who the process of the surplus system was really progressive for. Seeing how purchase power for the higher class of society...
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...In “The Theory of Leisure Class,” Thorstein Veblen’s talks about conspicuous consumption. He explains how people show their class through the clothes that that they wear. The type of clothes that people wear show how much they do or do not work for a living. People’s appearance also shows how much other people work for them. The article, “In Defense of Our Wicked, Wicked Wicked Wicked Ways,” written in the New York Times, explains how conspicuous consumption in the present future is a positive outlet for people to express what type of lifestyle they want and can live. The writer describes how people now can enjoy luxurious things and pieces of the lifestyle through purchases. It gives the industrious class a chance to be or enjoy this of the predatory class for a certain amount of time. The writer also explains how the lower class an occasionally purchase and enjoy conspicuous leisure. People can buy opportunities for discounted leisure activities and enjoy in small increments. Conspicuous consumption also allows people who work a lot show their hard work publically and enjoy from it. I have conflicting views on conspicuous consumption. I believe it is unnecessary, a waste of money, and shows people how insecure you are about yourself. Wasting money on items feeds into the capitalistic society and prevents the unfortunate to prosper. I think people should invest any extra money they have on helping society like donating to charities, feeding/housing the homeless, helping...
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...Introduction Classical theorists strived to develop one all encompassing theory that would improve management’s effectiveness within an organization and methods for dealing with the challenges they faced (Hartman, n.d.). There are three primary “classical” theories: Scientific Management, Bureaucratic Management / Autocratic management, and Administrative Management. This paper will discuss the three primary management theories as well as discuss several other theories relating to some of the primaries, and some that were slight precursors to the classical movement such as Change Management and Autocratic Management (Sridhar, n.d.). Classical Perspective The oldest of the "formal" viewpoints of management emerged during the late nineteenth and came to be known as the classical perspective. The classical perspective roots in management occurred rapidly through expanding manufacturing organizations that typified U.S and European industrialization. Early contributions were made by management practitioners and theorist from several corners of the world (Eastern, n.d.). The classical perspective consists of three main subfields: 1. Scientific Management (by Frederick Taylor) 2. Bureaucracy Management (by Max Weber) 3. Administrative Management (by Henry Fayol) Scientific Management Theory In the 19th century machinery was changing the means of production, and managers needed to find more efficient ways of production. Traditional methods of production, where a worker...
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...I. Classical Management Theory The Evolution of Classical Management Theory The Industrial Revolution was a time where innovation really began to change the way that products were produced and sold. The invention of machines to produce goods in the 19th century drastically improved productivity, which in turn lowered the cost to the consumer. The lower price resulted in a greater demand for products and thus a greater need for more factories and workers. Responsibilities of a manager As factories increased in number, managers continued to search for ways to improve productivity, lower cost, increase quality of their products, improve employee/manager relationships and increase efficiency. The focus shifted from using machines to increase productivity to how they could increase employee productivity and efficiency. When they did this, they began to notice some new problems inside their factory systems. Employees were dissatisfied with their current working conditions, and many lacked the necessary training for how to do their work efficiently. Managers then began to formulate and test possible solutions, one of which was to find the best possible way for workers to perform and manage their tasks. The research resulted in the development of classical management theory. Factory workers must be placed in suitable job roles. Expansion of Classical Management Theory Classical Management theory expanded throughout the first half of the...
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...assumption about key relations. In business life theories tell us what to look out for, what our first step ought to be, and what to expect results from our action. The four theories of strategy were and still very important until this time of day. But the 21st century is all about the game of power, how is powerful than whom, and who is dominating. So if you want to generalize thing, some theories can be used and others cant but eventually these approaches have expired because of the development that have been made until now, that were not common in Whittington’s days . Now a day we see a new phenomenon known as “game of power” which is the struggle or conflict over power because power means on dominance and...
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...Social Responsibility Classical Theories of Morality Walden University Nicomachean Ethics viewpoint by Aristotle, the Metaphysics of Morals by Immanuel Kant and the Utilitarianism Theory of morality view by John Stuart Mill are the three classical theories of morality. An individual’s acts did not define who they were morally, but the person’s life as a whole did according to Aristotle. Meaning, the things a person did over their lifetime would determine if they had morals or not. This was known as the Nicomachean Ethics viewpoint. In today’s society, this could relate to someone who was an overall moral citizen, but one day that changed for them and they did something horribly wrong. For example, a husband or a wife killing their spouse and the spouses lover because they were found cheating. Aristotle believed the action that was an abnormality should not be considered when considering whether the person was good or bad, but that their good works over their lifetime should be considered. Aristotle believed there were three types of life: one devoted to sensual pleasures, one seeking out political interests and the other being a life of thoughts (Arthur, J. and Scalet, S., 2014). With very different beliefs Immanuel Kant believed that if an action is wrong it will forever be wrong, and there is no justification for those specific actions. However, he does make note that most decisions are based on a sense of duty and people’s rights, and felt that those decisions...
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...The Sociological Method and Suicide “Collective life did not arise from the individual life; on the contrary, it is the latter that emerged from the former” (Durkheim in McIntosh 1997:197). This might be hard to understand because we are an individually motivated society, but what Durkheim is saying is that individual life occurs as a result of the collective life, that society is not made up of individuals. Through theories based on observation, society is treated as a fact. Each person has a function in order to keep society together. Durkheim calls this the Sociological Method, and explains this method through social facts. These social facts are the collective phenomena existing independent of us individually. Collective conscience is spread throughout society delivering solidarity through common beliefs. With everyone playing a role Durkheim is telling us that everyone is necessary. People end up doing things in relation to one another and act on their duties and roles such as a citizen. What drives the individual to conform with the rest of society are the social forces outside of them. It is instilled in us to pay attention to the patterns in society. The degree to which an individual is a part of society tells us about their social integration, whereas the degree of an their actions and wants are controlled by their society tells us about their social regulation. Durkheim uses social integration and social regulation throughout his study of suicide to describe...
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...THE COMPARISON OF CLASSICAL APPROACH AND HUMAN RELATION APPROACH IN ORGANISATION STUDIES 1. What is Organisation and Organisational Behaviour? Organisation is a cooperative interaction dynamic in social system with the purpose of satisfying individual needs (Barnard, 1938). This is not a sole definition about organisation, there are many other terms about organisation such as, Mintzberg (1983) Organisation is "Every organized human activity -- from the making of pots to the placing of a man on the moon -- gives rise to two fundamental and opposing requirements: The division of labor into various tasks to be performed, and the coordination of these tasks to accomplish the activity". Organisational behaviour focuses on the study of the people behaviour within the organisation (Luthans, 1995). The Organisational Behaviour commonly known as the study and understanding of individual and group behaviour, and the path of structure towards improvement of organizational performance and effectiveness (Robbins, 1998). Another term of Organisational behaviour is a major discipline towards description, understanding, and prediction of human behaviour within formal organisation. Organisational behaviour as discipline is the clear recognition that organisations make internal settings that influence the behaviour of people within it and to some point the internal condition of an organisation is influenced by the large components such as economic, politic, social, and technology which...
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...traveling lecturer. He later became a professor of logic, ethics, rhetoric, jurisprudence and political economy.[3] [edit]Introduction Adam Smith has not received as much recognition for his theory of growth as he has for his theory of value and rent, but the fact still remains that he does provide a consistent dynamic model. Adam Smith identified three major sources of growth: (i) growth in the labour force and stock of capital (ii) improvement in the efficiency with which capital is used in labour through greater division of labour and technological progress (iii) promotion of foreign trade that widens the market and reinforces the other two sources of growth.[citation needed] To understand the final growth process as stated by Adam Smith in this theory, we first need to look into the individual components, which have laid the foundation of the theory. These are Adam Smith's Production Function, his views on the process of growth of labour force and capital accumulation in the economy. [edit]The production function Adam Smith recognized only three factors of production: land, labour and capital. Considering these three factors, his production function may be expressed as Y=ʄ(K,L,N) where, K represents the capital L denotes labour force N stands for land Adam Smith, in his theory, has not assumed his production function to have Diminishing marginal productivity. However, his production function is subject to increasing returns to scale (which means that, output increases...
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...What is Reliability? * Consistency * It is not a characteristic of the test but a property of the scores obtained when the test is administered to a particular group of people on a particular occasion under specific conditions * Not the same thing as stability Classical Reliability Theory * By Charles Spearman (1904) * Also called the Theory of true and error scores * It assumed that a person’s observed score on a test is composed of a “true” score plus some unsystematic error of measurement * TRUE SCORE – the average of the scores a person would obtain if he/she took the test an infinite number of times 2 Factors that influence test scores: * 1. Factors that contribute to consistency - consist of those stable attributes of the individual which the examiner is trying to measure (TRUE VARIANCE) * 2. Factors that contribute to inconsistency – these include the characteristics of the individual, test, or situation which have nothing to do with the attribute being measured but affects the scores (ERROR VARIANCE) EQUATION: * X = T + e * Where: * X is the obtained score * T is the true score * e is the errors of measurement * Errors in measurement –represent discrepancies b/n obtained scores and the corresponding true scores (E=X – T) SOURCES OF MEASUREMENT ERROR (ERROR VARIANCES) * Item Selection(Intrinsic Error Variance) * Found in the instrument itself * Test items may not be equally fair to all...
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...the classical and human relations approaches of management theory. One of the most important human activities is managing. Since the development of the first human civilizations managing has been essential to accomplish aims and objectives and ensure the coordination of individuals Olum (2004). Management is defined as the combination of the skills and talents of individuals concerned with getting things done through people by taking into account the resources for profitable activities Pettinger (1994). In the early twentieth century, Henry Fayol defined management as the process of “forecasting, planning, organizing, commanding, coordinating and controlling” Fayol (1949). Subsequently, Koontz and O’donell (1988) suggested the definition of management as “an operational process dissected by analyzing the managerial functions such as planning and organizing”. Over the last centuries management has been studied with the view of establishing what constitutes a successful manager Petinger (1994). The search for applicable principles of management initiated in the last years of nineteenth century in Europe and America Cole (2004). Like any other social practice, at the heart of management is theory that managers can deploy to achieve competition advantage and use more incisive interventions McAuley et al (2007). In addition the basic requirement of managers for meeting the challenges like competition, use of sources and maximum output is the knowledge of management theories Mahmoud...
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...Sula Cottman Individual Assessment Martin Gilbert Psy.D. Personality/Behavioral Test Administration Reaction Paper: The test that was administered was the Beck youth Inventories Second edition, which is a test that is designed for children and adolescents ages 7 through 18 years. There are 5 self-report inventories which can be used separately or in combination. The goal is to assess symptoms of depression, anxiety, anger, disruptive behavior, and self- concept. The Beck Inventories are validated tools that can be used to measure progress in both research, and clinical Having the opportunity to meet with Christine, and administer the Beck Youth Inventories Second Edition, she appeared to be a bright and intelligent young lady. She seem to be very withdrawn at times. Her counselor and mother discussed the testing process in the beginning, so she was prepared. Keeping Christine engaged at times was somewhat a challenge at times, but knowing some of her home life situations gave me a better way to know how to help her. The test time is 5-10 minutes per inventory, and 30-60 minutes for a full scale. I believe this instrument is a good for measure of self-concept and psychological well-being of children and adolescents. The Beck Inventories can also be used as a measure to identify children and adolescents that are in need of further intervention or evaluation, and as an assessment to the severity of their symptoms. Research shows that there have been many studies...
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