Neoclassical Organizational Theory An Overview - 536 Words

Neoclassical Organizational Theory: An Overview Neoclassical organizational theory was born around World War II. In a way, it could be viewed as reactionary to the classical organizational theory which developed earlier in the twentieth century as industry exploded. The rise of classical organizational theories had emphasized the organization as the machine and the workers as the gears (Yang, Liu, Wang, 2013). Once employee education improved and productivity developed, then the strict, rigid, and mechanical approach of the classical theories began to create problems (Yang et al., 2013). Thus, the neoclassical theory was introduced. This paper will define neoclassical organizational theory, credit the major contributors, and describe some examples of how organizations can implement strategies from this theory. Defined and Developed Experiments called the Hawthorne Studies, led by Elton Mayo, opposed some of the ideas of the classical theory and used sociology and psychology to explain employee workplace behavior (Pryor, Humphreys, Oyler, Taneja, Toombs, 2011). Describing the result of these studies, McElyea (2003) stated that â€Å"these experiments concluded that working conditions impacted productivity and morale† (p. 58). As a result, Mayo is considered the founder of the neoclassical theory. Other studies in the human relation movement, by Abraham Maslow, made contributions (Sarker Mohammad, 2013). The three primary elements of this theory include the HawthorneShow MoreRelatedThe Neoclassical Organizational Theory Essay633 Words   |  3 PagesThe neoclassical organizational theory, which evolved as a reaction to the rigid, authoritarian structure of the classical organizational theory, focuses on the importance of human relations and behavior in the workplace (Docherty et al., 2001). 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