Evolution continued_Neo classical.pptxxx

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1. Neo Classical Theory The word ‘neo’ means new. Neo Classical Theory give greater emphasis to man behind the machine and stressed the importance of individual as well as group relationship in the workplace. The neo- classical or human relations approach deals with the human factor. This theory modified the classical theory by emphasizing the fact that organisation is a social system and the human factor is the most important element within it. Elton Mayo is considered as the father of Human Relations School or Neo Classical approach.

2. Neo- classical theory tries to find out the social factors affecting the working of an organsation. Neo Classical approach may be analyzed in three parts, namely, Hawthorne Experiments Human Relations Movement Behavioural Approach

3. Features of Neo-Classical Theory Social System: Organisation in general is a social system. Human Factor is the most important element in the Social System. Social factors affect the people more than the organizational factors. Informal Groups: Informal groups exists in an organisation in which the employees fulfill their social needs of entertainment, mutual The s e i n f orma l g r ou p s h a v e di r e ct impact c oope r a t i o n f o r fulf i lling pe r son a l need s e t c. on formal organisation.

4. Leadership: Leadership is important for directing group behaviour. However, leadership cannot come only from formal positions. There may be informal leaders can be identified through human relations approach. Commu n i c a tio n : Both Commu n i c a t i o n is way it carries necessary because i n f orm a t i o n dow n w a r d f o r the necessary proper functioning of the organisation and transmits upward the feelings and sentiments of people who work in the organisation.

5. Role of Money: Money is only one of the motivators, but not the sole motivator of human behaviour. Conflict: There is always a conflict between organizational and individual goals. For the smooth running of the organisation, it is necessary to achieve the integration between the goals of the organisation and those of the individuals. Need for adjustments. Flat Structure: Neo- Classical Theory suggests “flat structure ” in comparison to tall structure. Flat structure with wide span of Control is more suitable for motivating employees. In this structure , communication chain is shorter.

6. De-centralisation: The decentralized structure offers people to decide their own plans of action to take responsibility for their work.

7. Classical Approach Vs Neo-Classical Approach Classical Approach Neo- Classical Approach It was propounded by F. W. Taylor, Henri Fayol and Max Weber. It w as p r op o unde d b y El t on Mayo. It suggested an Engineering Approach to management problems. It applied scientific method. It suggested human relation as a method of achieving higher productivity. It discarded the engineering approach. It focused on the study of the productivity problems of industry. It focused on the study of individual , his need and behaviour.

8. The main concepts are division of work, span of control. Organisation structure , centralization of authority etc The main concepts are job satisfaction, motivation and employee morale. It originated from the experience of Taylor and others in dealing with the problems of factories. It originated from the H a w t hor n e e xper i m e n t s conducted by the psychologist and sociologists. It c once n t r a t e d on improvement in productivity and efficiency. It c once n t r a t e d on improvements in inter- personal relations and human relations in industry.

9. George Elton Mayo (1880-1949), the “Father of the Human Relations Approach,” led the team which conducted a study at Western Electric’s Hawthorne Plant between 1927 and 1932 to evaluate the attitudes and psychological reactions of workers in on-the-job situations.

10. 1. Illumination Experiment: Th e p urpos e of this e x p eri m e n t w as t o asse s s the effect on illumination on employee output. T w o g r ou p s w e r e s el e c t ed f r o m am o n g the employees. On e g r o u p w as place d i n the r oo m whe r e l i g h ting remained constant. ( Non-Experimental Group) The other group was placed in another room where lighting varied periodically. ( Experimental Group) The output of both the groups increased steadily. It was concluded that lighting was a minor factor and there were other important factors influencing the output.

11. 2. Relay Assembly Test Room Experiment: The test group consisted of six female workers . Frequent changes were made in their working conditions such as shorter working hours, rest periods, friendly and informal supervisors, free interaction among the members of the group, etc. Productivity of the group increased even when the improvements in the working conditions were withdrawn. It was concluded that socio-psychological factors , e.g, special attention, recognition and sense of group belonging exercise a greater influence on productivity than working condition .

12. 3. Mass Interview Programme: A large number of workers were interviewed to judge their attitudes and opinions on the factors influencing productivity. It was found that the opportunity to talk freely about things that are important to workers, has a positive effect on their morale and productivity.

13. 4. Bank wiring Observation Room Study: These experiments were conducted to find out the impact of small groups on the individuals . 14 male workers were formed into a small group and intensively observed for 7 months in a bank wiring room. Placed an observer full time in the room to record everything that happened The workers in the group were paid not only on the basis of their individual performance but promised a group incentive based on the group performance . It was found that the group had developed its own norms of performance, standards of output etc. As a result output could not increase despite group incentive plan.

14. Conclusion Hawthorne Experiments proved a landmark in the evolution of Management Thought . Hawthorne Experiments revealed that informal organization as well as socio psychological factors exercise a much higher influence on human behavior. These experiments directed attention towards social and psychological needs, informal groups, motivation, informal communication, leadership etc. New Disciplines like Industrial psychology, Individual sociology, social psychology and group dynamics emerged.

15. HUMAN RELATIONS MOVEMENT Hawthorne experiments laid the foundations for Human Relations Movement in Management. Employee Counseling, participative decision making, cordial supervision and other techniques have been suggested for keeping the workers happy and satisfied. The Human Relations School is based on the following ideas:

16. a) I n div i d u al: E a ch indivi d ua l i s uniqu e and his beh a vio u r i s a f f ec t ed b y hi s emot i o ns , v a lues a nd attitude. Management should c ons i de r a t i o n t o th e ir e c onomic, g i v e d ue soci a l and psychological needs. b) The Work Group : Work is a social experience and most workers find satisfaction in social and informal groups. Managers should maintain good inter-personal and inter-group relations to maximise productivity.

17. Work environment: There should be a positive work environment where organizational goals are achieved through employee satisfaction. The leader: as the leader of a work group, a supervisor/manager should provide a pleasant work climate. Leader can gain respect and obedience by adjusting to various personalities and situations.

18. BEHAVIOURAL SCIENCE APPROACH It is a refined form of Human Relations approach. This approach focus on individual behaviour, group behaviour, motivation, leadership, communication etc. This approach is the basis of management discipline Organizational Behaviour. Behavioural scientists attach greater importance to participative and group decision making.

19. Features Indi v idu a ls w orkin g i n an o r g anis a ti o n h a v e g oals which may differ from organizational goals Indi v idu a ls di f f er i n pe r sonalit y , a t titude, b eli e f s , perception etc. Motivated workers are key to productivity. Hig h per f ormanc e c an b e t t er b e a chi e v ed b y self direction and control. A n op e n a n d tr u s ting o r g ani z a t i on a l cl i m a t e improves productivity.

20. Major Contributors to Behavioural Science Approach are Frederick Herzberg Abraham Maslow Douglas Mc Gregor David Mc Clelland

21. Maslow was a psychologist. In 1954, Maslow created the hierarchy of Human needs and expressed his theories in his book” Motivation and Personality”. Human beings have needs that are never completely satisfied. Needs fit into a hierarchy, ranging from primary and lower level needs at the bottom to higher level needs at the top.