Neoclassical Theory of management thought.pptx

Management Thought

1. Neoclassical theory of management

2. 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.

3. INTRODUCTION The word neo means “new” The word classical refers to work done by group of economists in the back (18 & 19) century

4. Neo classical approach Human relation movement behavioral system

5. 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.

6. 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.

7. 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

8. 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.