Neoclassical theory_of_management
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Transcript of Neoclassical theory_of_management
Neoclassical theory of management
To: Rajiv Gupta
By: Poonam SomraSakshi Bishnoi
History of neoclassical theory
Neo classical approach was first set out by Alfred Marshall in his book principles of economics, published in 1890’s.
George Elton Mayo is considered as founder of neo classical theory.
INTRODUCTION The word neo means “new”
The word classical refers to work done by group of economists in the back (18 & 19) century
Neo classical approach Human relation movement behavioral system
Human relation movement Proposed by Elton Mayo.
He mainly focused was on the people working in an organization.
Human relation development contributed to:
Employee-centric, democratic and participative style of leadership is more efficient.
Behavioral system It can also be called as mature version of
human relation theory. This theory is how the managers should behave
to motivate the employees and encourage them to perform at high levels and be committed to the achievement of organizational goals.
Points of distinction Classical approach Neoclassical approach
Focus functions and economic demand of workers
Emotion and human qualities of workers
Structure Impersonal and mechanistic
Social system
Application Autocratic management and strict rules
Democratic process
Emphasize Discipline and rationality Personal security and social demand
Work goal of worker Maximum remuneration and reward
Attainment of organizational goal
Concept about men Economic being Social being Content Scientific management,
administrative management, and bureaucratic management
Hawthorne experiment , human relation movement and organizational behavior
Relation Formal InformalNature Mechanistic Organistic
conclusion Hereby I conclude that neo classical
theory is adopted by all economists of management.
As neo classical is based on employees its more acceptable.
In this theory all are benefitted not the manager the firm, and specially the employees.