HISTORY of MANAGEMENT

THOUGHTS
The NEO-CLASSICAL Theory of
Management
The Neo-Classical Theory
• Also called “Behavioral Science Approach”

• Human and Social Aspects of the Worker

• Relations in the Organization

• Better pay, increased benefits, and improve working

conditions

• People have needs, embrace values and desire respect

Robert Owen
• According to Owen, increased profitability for
the firm and reduced hardships for the workers
are the positive results of showing concern for
workers.

• He disapproved of his colleagues’ failure to

appreciate the human element, which when
given careful attention can result to 50% return
on investment
Mary Parker Follet
• Social worker by profession

• Management is a continuous process

• Inclusion of workers in decision-making and the

dynamism of management

• Maintaining good working relations with workers

by managers and good communication are the keys
to a harmonious workplace
Three Ways of Dealing With Conflict
• Domination is a victory of one party over the other.

• Compromise is both sides giving up something in

order to have peace

• Integrative conflict resolution is both parties

considering their preferences and working together
to find the best option that meets the needs of both
groups
Cherster Barnard
• Authored the book “The Functions of Executives”

• 2 Significant Contributions
▫ The organization as social systems needs cooperation and
communication among workers to be effective and achieve
goals and objectives. The examination of the external
environment and adjusting the internal structure situation
must be done for balance.

▫ The acceptance theory of authority posited that a worker

has free will to disobey the orders of his manager.
Elton Mayo
• Harvard psychologist

• Famous contributor in the “Hawthorne Studies”

• Authored the book “The Human Problems of an

Industrial Civilization” which contained the
results of Hawthorne Studies.
Hawthorne Studies
• Conducted from 1924-1932 at the Western
Electric Company in Chicago

• Illumination experiments
• Relay Assembly Room experiments
• Mass Interviewing Program
• Bank Wiring Room Study
Results of the Hawthorne Experiments
• Employees are not motivated by only money like bonus schemes and incentives.

• Communication helps the management and employees to have better mutual

understanding that will help in problem solving

• Social factors are accountable for deciding the level of output

• Workers behavior depends upon their mental levels and emotions. Workers
began to influence their group behavior towards management.

• Employees do not like order and command, preferred to maintain amicable

relationship with their co-workers and want cooperative attitude from their
superiors

• Teamwork and group psychology increases productivity.

Douglas McGregor
• Made two sets of assumptions regarding work
attitudes and behaviors called Theory X and
Theory Y.
Theory X Assumptions Theory Y Assumptions
The average employee is lazy, dislikes work Employees are not inherently lazy. Given
and will try to do as little as possible the chance, employee will do what is good
for the organization.
To ensure the employees work hard, To allow the employees to work in the
managers should closely supervise team organization’s interest, managers must
create a working setting that provides
opportunities for workers to exercise
initiative and self-direction.
Managers should create strict work rules Managers should decentralize authority to
and implement a well-defined system of employees and make sure employees have
rewards and punishments to control the resources necessary to achieve
employees organizational goals.
Abraham Maslow
• Hierarchy Of Needs

▫ Physiological needs
▫ Safety needs
▫ Love and belongingness needs
▫ Esteem needs and self-actualization needs

• American Psychologist and Father of Modern

Management Technology
Management
Science Theory
Management Science Theory

• Highlights the use of precise statistical model

and systematic mathematical techniques to help
management solve problems on maximum use of
resources to produce goods and services.