1. Management
Theories
Neo-Classical Approach
Presented by:
Nazir Ahmad #110215
Raja Faheem #110216

2. Evolution of Management
 Classical Approach
 Neo-Classical Approach
 Modern Approach

3. Neo-Classical Approach
 Human Relations Movement
 Behavioral theory

4. Human Relation Movement
• Elton Mayo (1880–1949) was an
Australian psychologist, sociologist, went
to Harvard University.
• spent most of his career at Harvard
Business School as Professor of Industrial
Research.
• main focus was on the people working in
an organization.

5. Human Relations Movement
 Elton Mayo conducted a research activity in Hawthorne Electric
Plant in 1924 to research effect of physical conditions on
productivity called as Hawthorne Studies.
 Research activities had been conducted between 1924-1930.
 Researchers tested the effects of:
 Lightning
 Heating
 Job breaks
 Physical arrangements;
on productivity, But, they could not found any relation between.

6. Contribution of HRM
 A business organization is also a social system.
 A worker does not work for money only.
 Employee-centric, democratic and participative style of
leadership is more efficient.
 A worker’s production norm is set and enforced by his
group not by time and motion study.

7. Behavioral Theory
 Mature version Human Relations theory.
 Mary Follet, Abraham Maslow and others contributed to it.
 How managers should personally behave to motivate
employees and encourage them to perform at high levels and
be committed to the achievement of organization goals.
 Favor participation in the establishment, evaluation of standards
of performance.
 Makes an effort to make managers more sensitive to their
employee needs.

8. Contribution of Behavioral Theory
 advocates situational approach
 Builds confidence among employees
A conducive environment is created

9. Conclusion
 Organization is a social system also.
 Human resource is the most important
asset of any organization

10. Thank you