Traditional process of learning is either through obsevation and experiment. Nature or environment is considered uniform and when we observe certain phenomenon or events uniformly leading to the same result or results, we conclude a cause and effect relationship between the two. This is learning by observation or in other words by experience.

Earlier thinkers on management followed this approach in developing theories of management. Learning principally is through emphirical process and through analysis of the data collected through observation. Draw the principles of managment by looking at and anyalysing the jobs that all managers commonly do. This approach served as a starting point for pioneers on management science to verify the validity and improve the applicability of the principles and practices of management. Analysis of observd data is what constitute a case study. The observational method of case study helps arriving at logical conclusions about past experience and to test the same as standards for future events.

The theory of scientific management developed by F.W.Taylor and others accepted the emphirical methods for arriving tyhieir conclusions. Other thinkers like Henry Fayol following the functional approach (also called Administrative theory) emphasised on the importance of managerial functions and principles for universal application. They followed a wider perspective by focussing on the efficiency of the total organisation rather than technical efficiency alone. The German sociolists, Max Weber followed the classical approach and developed his theory of Bureaucracy, which portrays the structure anddesign of organisation charqacterised by a hierarchy of authority, formalised rules and regulations that serve to guide the coordinated functioning of an organization.