Lecture-2

• Development of Industrial Management• Production• Productivity • Production System (Probably in the

next lecture)

Development of Industrial Management.

Three Basic Approaches :

• Classical Approach• Neo Classical • System Approach

Classical Approach

Contributions• Emphasis on division of

work, specialization and processes.

• Efficiency of the organization can be increased by making each individual efficient.

• Based on centralization of authority

Criticism• Ignores human

relations• Strict rules and

regulations• Closed system

organization

Neo Classical Approach

Contributions

• Social System• Social Environment• Leadership• Communication

Criticism

• Limited Application• Lack of scientific Validity• Invalid Assumption• Fragmental Approach

Systems Approach

TRANSFORMATION PROCESS

ENVIRONMENT

INPUTOUTPUT

FEEDBACK

System Approach Contd.

Contribution

• Interacting Elements

• Vulnerable to changes in the Environment.

Critics

• Failed to specify the nature of Interaction and Interdependencies.

• Does not apply tools and techniques for analysis.