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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
INPUT
OUTPUT
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.

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