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
ENVIRONME
NT

INPUT

TRANSFORMA
TION
PROCESS

FEEDBACK

OUTPUT

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.