PRINCIPLES OF MANAGEMENT — OCM STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceOCMPRINCIPLES OF MANAGEMENT5 Marks
Question
Explain the thoughts of neo-classical theory.
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Answer
Thoughts of Neo-Classical Theory:
By the end of $19th$ century, formats and size of industries started growing due to industrial revolution. The classical theory proved to be less effective , on these large industries and so there rose a need for changes in these principles.
So, to remove some limitations of classical theory, some management experts made changes to the existing principles and established new approaches. These new approaches or principles were called thoughts of Neo-Classical Theory.
In the start of $201h$ century, Australian Industrial psychologist Elton Mayo gave the concept called the ‘Hawthorne Effect’ based on the study that he did in Hawthorne Works, America.
This theory gave a new birth to behaviour oriented thought. Hence, Elton Mayo is called promoter of Thoughts of Neo-Classical Theory’:
Thoughts of neo-classical theory emphasizes on behavioural approach and group behaviour.
Later, certain additions were made to the thoughts of neo-classical theory.
Keeping in mind the concepts of classical theory, certain additions were made in the neo-classical theory which included informal organization, human behaviour, human relations, inspiration, etc.
Elton Mayo, Herzberg, Rensis Likert, Chris Argyris, McGregor and Maslow are main contributors to these thoughts.
The thoughts of neo-classical theory especially focus on human relations or human behaviour thoughts, thoughts of social mechanism and social arrangement.
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