Neoclassical theory_of_management
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The document discusses the neoclassical theory of management. It states that the neoclassical approach was first established by Alfred Marshall and that George Elton Mayo is considered the founder of the neoclassical theory. The document outlines key distinctions between the classical and neoclassical approaches, noting that the neoclassical approach focuses more on human qualities and treats workers as social beings rather than just economic functions. It also describes the human relations movement proposed by Mayo which emphasized employee-centric and participative leadership styles to motivate workers.
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Neoclassical theory_of_management
- 2. 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.
- 3. The word neo means “new” The word classical refers to work done by group of economists in the back (18 & 19) century
- 4. Human relation movement behavioral system
- 5. 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.
- 6. 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.
- 15. 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 Informal Nature Mechanistic Organistic
- 16. 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.