Class 7: Neo-Classical and Modern Approaches to Management

Classical theories focused on "work " and "organizations". They treated business enterprise as "technical " and "commercial" entities. The neo-classical approaches- Human Relation movements stressed that business is a "social system" and as such much attention should be accorded to "humans" working in the enterprise. The Hawthorne experiments conducted by Dr. Elton Mayo tested worker productivity in relation to physical conditions such as illumination, working hours, rest pauses, and social settings. The experiments conducted were

• Illumination experiments
• Relay assembly test room
• Interview Programme
• Bank wire room test

These studies concluded that factors such as informal groups, peer attitude have impact on individual productivity.

Behavioural Models proposed by Maslow, McGregor tried to study workers in terms of their behaviour. Maslow proposed a theory of hierarchy of needs which stated that human needs can be represented in hierarchy and people needs change to next level of hierarchy as soon as current level of needs are met. At the lowest level of needs are (1) Physiological Needs- comprising of food, shelter . The next level (2) Security needs - which consists of job , social and other securities, the next in the line is (3) Esteem needs- refer to those needs perceived to be desirable by the individual or group and the last stage is (4) Self actualization needs that have inner motive from the individual.

Modern approaches.

These approaches take a comprehensive view at management process. They include

1. Quantitative approach- data based analysis and decision approach
2. System approach- focusses on inter-related issues among various elements invovled
3. Contigency approach- a ad-hoc approaches