Notes on Principles of Management
NA 220 /CAA 220
FIRST B.COM.
BUSINESS MANAGEMENT - MAY/JUNE-2008
1. What are the contributions of Neo-classical theories to the evolution of Management?
ANS: The neo classicists focused on the human aspect of industry. They modified the classical theory by emphasizing the fact that organization is a social system and the human factor is the most important element within it. They conducted some experiments (known as Hawthorne Experiments) and investigated informal groupings, informal relationships, patterns of communication, patterns of informal leadership, etc. this led to the development of human relations approach. Elton mayo is generally contributors to this school include Roethlisberger, Dickson, Dewey, Lewin, etc.
It revealed the importance of social and psychological factors in determining workers productivity and statisfaction.
The human relationsts argued that achievement of organizational objectives is impossible without the willing cooperation of people and such cooperation cannot be automatically secured or ordered. It has to be consciously achieved. The neo-classical approach advocated people oriented organization structure which will integrate both informal and formal organizations.
The basic tenets of neo-classical theory or human relations approach are as under :
1. the business organization is a social system. 2. the behaviour of an individual is dominated by the informal group of which he is a member. 3. an individual employee cannot be motivated by economic incentives alone. His social and psychological needs must be satisfied to improve the level of motivation. 4. in an organization, it is ultimately cooperative attitude and not the mere command which yields result. 5. management must aim at developing social and leadership skills in addition to technical skills. It must take interest in the welfare of workers. 6. morale and productivity go hand
FIRST B.COM.
BUSINESS MANAGEMENT - MAY/JUNE-2008
1. What are the contributions of Neo-classical theories to the evolution of Management?
ANS: The neo classicists focused on the human aspect of industry. They modified the classical theory by emphasizing the fact that organization is a social system and the human factor is the most important element within it. They conducted some experiments (known as Hawthorne Experiments) and investigated informal groupings, informal relationships, patterns of communication, patterns of informal leadership, etc. this led to the development of human relations approach. Elton mayo is generally contributors to this school include Roethlisberger, Dickson, Dewey, Lewin, etc.
It revealed the importance of social and psychological factors in determining workers productivity and statisfaction.
The human relationsts argued that achievement of organizational objectives is impossible without the willing cooperation of people and such cooperation cannot be automatically secured or ordered. It has to be consciously achieved. The neo-classical approach advocated people oriented organization structure which will integrate both informal and formal organizations.
The basic tenets of neo-classical theory or human relations approach are as under :
1. the business organization is a social system. 2. the behaviour of an individual is dominated by the informal group of which he is a member. 3. an individual employee cannot be motivated by economic incentives alone. His social and psychological needs must be satisfied to improve the level of motivation. 4. in an organization, it is ultimately cooperative attitude and not the mere command which yields result. 5. management must aim at developing social and leadership skills in addition to technical skills. It must take interest in the welfare of workers. 6. morale and productivity go hand