MBA and B.tech class notes
Evolution of Management Thought
Neo- Classical Theory
Neo- classical theory is also referred to as behavioral science
approach to modifying and
improving the classical theory. While classical theories focused more on structure
and physical aspects of the worker and Neo-classical theory gives importance to
human and social aspects of the worker and his relations in the organization.
The neo-classical theory is based on the Hawthrone
experiments.
Elton Mayo conducted the Hawthrone experiments at Hawthron plant of General
Electronic Company (GEC) between 1927 and 1993 at Chicago with 30,000 workers.
The Hawthron plant was manufacturing telephone system bell. The objective of
the experiment was to find out the behavior and attitude of workers at
workplace under better working conditions. In the company, when management
provide the benefits of medical allowance and pension with recreational
facilities. Even thought workers get all facilities but the productivity was
not up to expectation. So, in 1924, the professor Elton Mayo and his research
team investigate the reasons for dissatisfaction of employees and
decrease in productivity.
Four Phase of
Hawthrone experiments:
Prof. Elton Mayo and his team conducted
researches in four phases.
- Illumination experiments (1924
– 1927)
- Relay assembly room experiments
(1927 – 1928)
- Mass interviewing programme
(1928 -1930)
- Bank wiring room study (1931 –
1932)
Result of Hawthrone Experiments:
- Motivation: Employees are not
motivated by only money (bonus scheme and incentive).
- Communication: communication helps the
management and employees to have better mutual understanding. Through
proper communication, management can easily identified the
problem faced by its employees and can easily solve out.
- Social factors: Social factors are
responsible for deciding the level of output.
- Behavior of
workers: workers
are not as individual identity but as members of a group in an
organization and they have their own norms and beliefs. Workers behavior
depends upon his mental level and emotions. Workers began to influence
their group behavior towards management.
- Relationship: Employees do not like
order and command. They preferred to maintain amicable relationship with
their co-workers. They want co-operative attitude from their superiors.
- Production level: Teamwork and Group psychology increases productivity.
Criticism of Hawthrone
Experiments:
- Hawthrone experiment was not
conducted scientifically.
- In the experiment,
various format and structure are not feasible.
- Eltone Mayo gives more
importance to human aspect and ignoring other important aspects.
- Group conflict is
prevalent in an organization.
- Hawthrone experiment did not
give any recognition to the forces which are responsible for productivity
in the organization.
- During experiment, Eltone Mayo has assumed that a satisfied employee would be productive. But the finding was different. There is no link between working condition and productivity.
Major contributors of
Neo-classical theory are:
Chris Argyris- He recommended
that worker should be given freedom to make their own judgments.
Mary Praker Follett: He referred group
influence.
Dougals Me Gorgor: he referred two
views.
X-theory- it is based on
classical theory and
Y-theory- it is based on
neo-classical theory.
Abraham Maslow: He referred individual
needs.
Note: This post shared here
are base on my study in case you find anything wrong and missing points than
please bring it to my notice.
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