Management Theories Neo-Classical Approach

Presented by:

Nazir Ahmad #110215

Raja Faheem #110216

Evolution of Management

Classical Approach

Neo-Classical Approach

Modern Approach

Neo-Classical Approach

Human Relations Movement

Behavioral theory

Human Relation Movement

• Elton Mayo (1880–1949) was an

Australian psychologist, sociologist,

went to Harvard University.

• spent most of his career at Harvard

Business School as Professor of Industrial

Research.• main focus was on the people working in an organization.

Human Relations Movement

Elton Mayo conducted a research activity in Hawthorne

Electric Plant in 1924 to research effect of physical conditions

on productivity called as Hawthorne Studies.

Research activities had been conducted between 1924-1930.

Researchers tested the effects of:

Lightning

Heating

Job breaks

Physical arrangements;

on productivity, But, they could not found any relation

between.

Contribution of HRM

A business organization is also a social system.

A worker does not work for money only.

Employee-centric, democratic and participative style

of leadership is more efficient.

A worker’s production norm is set and enforced by his

group not by time and motion study.

Behavioral Theory

Mature version Human Relations theory.

Mary Follet, Abraham Maslow and others contributed to it.

How managers should personally behave to motivate

employees and encourage them to perform at high levels and

be committed to the achievement of organization goals.

Favor participation in the establishment, evaluation of

standards of performance.

Makes an effort to make managers more sensitive to their

employee needs.

Contribution of Behavioral Theory

advocates situational approach

Builds confidence among employees

A conducive environment is created

Conclusion

Organization is a social system also.

Human resource is the most important

asset of any organization

Thank you