Organization facing competition need to take care of different dimensions of
management to perform effectively such as style of leadership, motivational factors, and
the importance of informal relations. The classical theory of organization suffers
superficiality, over simplification and lack of realism in terms of problems faced by
competitive organizations. Taylor and theorists of scientific management over rated
scientific methodology as a value free integrating force that could bring about total
managerial revolution. However the present forces of organizational change facing open
ended competitive challenges are not prepared to accepts the principles of scientific
management. Organizations facing competitive situations must have good managementlabor
relations to improve productivity, must work towards fulfillment of social needs,
along with financials needs which were all but ignored in the framework of scientific
management. Hence it must be understood.