The Neo-Classical Organizational Theory

The Neo-Classical Organizational Theory

Length: 515 words (1.5 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
There are various organizational theories that attempt to evaluate the behavior of people in organizations, whether as a group or individually. The neo classical theory focuses on the needs of the workers and puts a premium on empowering employees in an effort to maximize their production (Colorado State University-Global Campus, 2010). Research by Sultana and Manivannan (2009) concludes that workers with institutional knowledge are a company’s most important company assets. A company needs to do what it can to retain these valuable assets, and neo classical thinking helped to spawn a new emphasis on job satisfaction and the social aspect of the workplace.
History of Neo Classical Theory
The neo classical theory became prevalent in the early to mid 20th Century, and was a shift in how management and organizational behavior was viewed. The previous prevailing thought was that a tough, authoritarian structure was best for productivity (Regina, 2012). Neo classical thinking theorized that this was not the case, but rather, productivity was best achieved through worker satisfaction and empowerment.
One important early contributor to the neo classical theory was Elton Mayo. Mayo’s group conducted a study known as the Hawthorne study at an electric company plant. They studied working conditions at the plant and investigated the role that social elements played in worker satisfaction and productivity (Mayo, 1933). The study concluded that employees are more productive when motivated by recognition and praise than by financial reward, and that management needs to be cognizant of the role that social elements play in affecting productivity (Almusaileem, 2012).
Others who made important contributions to this movement were Chester Bernard and Herbert Simon. Bernard attempted to create a comprehensive theory of behavior in organizations based on the need for cooperation. Simon theorized that previous held classical beliefs were not applicable to most management situations. The neo classical theory helped to usher in a new way of thinking about productivity and the importance of worker satisfaction (Regina, 2012). This led to other theories that continued to emphasize the correlation between worker satisfaction and productivity.
Applications of Neo Classical Theory
Elements of the neo classical theory, namely the importance placed on worker satisfaction, are applied to many areas of management. It influences hiring, evaluation, motivation, rewarding and disciplining practices. It is also one of the reasons why many managers and leaders put such an emphasis on creating and cultivating a culture that encourages employee creativity and innovation.

How to Cite this Page

MLA Citation:
"The Neo-Classical Organizational Theory." 123HelpMe.com. 17 Feb 2020
    <https://www.123helpme.com/view.asp?id=313968>.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Three Major Schools Of Thought Management And Organizational Theory Essay

- Ans. The three major schools of thought in management and organizational theory are: 1. Classical Management theory 2. Neo- Classical Theory 3. Modern Management Theory 1. Classical Management Theory: The classical theory was first introduced in 1900’s by F W Taylor and Henry Fayol. This theory recognize the role of management plays in particular organization. They state machine like properties of organization and their purpose is to define the limited goals of the organization. So, that the production process of organization in such a way so that they achieve organizational desired goals....   [tags: Management, Organization]

Research Papers
1733 words (5 pages)

Postmodern Organization Theory Essay

- Introduction As the theme of my essay I have chosen to find out what our contemporary society must not forget in order to be able to make organizational theory evolve well into the 21st century. For this task I have decided to take a look back to Aldous Huxley’s modern dystopia “Brave new world”, that warned against totalitarian regimes that intended to suppress individuality in order to advance the interest of the state in its time. Even as those regimes might not be a direct threat nowadays we can eerily conclude that some aspects of it are quite accurate for the times we live in....   [tags: Postmodern Management]

Research Papers
1460 words (4.2 pages)

Classical Theory : Administrative Principles Essays

- Another example of classical theory is administrative principles. Even though scientific management and administrative theories fall under the same category, both of them are very different. Administrative theory is identified to have five general rules used in today’s modern society such as foresight, organisational, command, coordinate and control (Schermerhorn et al. 2014). Mary Parker Follet is well known for her contribution she made towards administrative approach her ideas included things like freedom of speech living in a diverse community, equality for all workers, resolve conflict situations and no dominated authority required (Schermerhorn et al....   [tags: Management, Theory, Organization, Science]

Research Papers
917 words (2.6 pages)

Essay on The Organizational Behavior And Systems Theory

- The four contemporary approaches to management are sociotechnical systems, quantitative management, organizational behavior and systems theory. Each approach is unique, and each approach can be used in many types of management. The sociotechnical systems theory looks at two things. The social system in the work environment and the technical system in the work environment. The combination of these two things can lead to an organizations effectiveness in keep customers satisfied. The social system consists of the organizations workers and the technical system looks the workers training, tools and knowledge....   [tags: Management, Organization, Systems theory]

Research Papers
703 words (2 pages)

Fear of Flying and Classical Conditioning Theory Essays

- How Lauren may have learned of her Fear of Flying. How Lauren learned she had a fear in flying. Using the Classical Conditioning theory the possibilities could be endless. Classical conditioning in simple terms is the method in which one determines why and the cause of a condition as well as what has brought it about. There are many stimulus both conditioned and unconditioned that can cause fear or other problems, but the major reason for causes regarding the fear of flying has been mentioned in several articles regarding anxiety disorders....   [tags: Classical Conditioning Theory Psychology]

Research Papers
692 words (2 pages)

The Theory Of Classical Conditioning Essay

- Whenever the bell rings in any school in any nation you are guaranteed to see students and teachers file into the hallway. This automatic response comes from something that has been around for a long time called classical conditioning. Classical conditioning was discovered and researched by Ivan Pavlov, a Russian physiologist. His famous experiment with his dog is known to nearly everyone who has had a middle school or higher education. He fed his dog in a pattern, every time he fed his dog he rang a bell....   [tags: Classical conditioning, Ivan Pavlov, Behaviorism]

Research Papers
1148 words (3.3 pages)

Essay on Classical Organization Theory

- Classical Organization Theory The classical school of organization theory dominated administrations from the early 1900’s well into the 1930’s, and it is still relevant today in many of the contemporary organization theories. Shafritz states that classical organization theory was the first theory of its kind, and serves as the foundation of other schools organization theory (Shafritz, Ott, & Jang, 2011, p. 32). Classical organization theory includes scientific management approach, bureaucratic approach, and administrative management approach....   [tags: machinery, workforce]

Research Papers
1570 words (4.5 pages)

Solow's Neo-Classical Model Essay

- Solow's Neo-Classical Model The neo-classical growth model assumes that the economy converges towards a steady-state rate of growth. Given a neo-classical production function: Y=A×F(K, N) Assuming a constant rate of labor force growth (DN/N=n) and no technical progress (DA/A=0) then in a steady state rate of growth of output (DY/Y) equals rate of population growth which implies there is no growth in per capita income unless technical progress takes place. A critical difference between the Harrod-Domar model and the neoclassical growth model lies in the effect the savings rate has on growth rates....   [tags: Economics]

Free Essays
286 words (0.8 pages)

Classical Management Theory Essay

- Classical Management Theory Early Management Theories Early Theories of Organizations emerged mainly for military and Catholic Church. The metaphor of the machine was dominant, where organizations are viewed as machines. Therefore, the organizational application was, since workers behave predictably (as machines do rarely deviate from the norm), management knows what to expect, and workers operating outside expectations are replaced. Classical Management Theories There are three well-established theories of classical management: Taylor?s Theory of Scientific Management, Fayol?s Administrative Theory, Weber?s Theory of Bureaucracy....   [tags: Classical Management Theories Essays]

Research Papers
1964 words (5.6 pages)

Those Backwards Neo-Classicalists Essay

- Those Backwards Neo-Classicalists One of the principal themes of our class was that Neo-Classicalism is wrong, not only wrong but backward. It seemed that everywhere we turned we found one example after another that supported this conclusion. In a nutshell Neo-Classicalists believe that Capitalism is completely fair and that in a Capitalist system one can never be cheated. This erroneous theory extends even into the environment and pollution. The movie "Erin Brockovich" does a wonderful job of illustrating just how wrong the Neo-Classicalists are when it comes to this particular subject....   [tags: Neo-Classicalism Capitalism Capitalist Essays]

Free Essays
1077 words (3.1 pages)

In studying I.T. organizations, Zhihong, Zhu, & Fang found that an emphasis on supporting the innovation and creativity of your employees contributed to knowledge sharing behavior (2010).
Google is an example of a company known for emphasizing the creativity and innovation of their workers. They go to great lengths to create a comfortable work environment and assure employee innovation with their “20% time” policy. This policy held that employees could spend 20% of their work time on side projects. Gmail and other innovations were born out of this practice. Traditionally, because Google has become known for having a culture that created high job satisfaction, they were able to attract and retain great workers. They’ve also been highly innovative and productive as a company. Neo-classical theorists would surmise that this emphasis on the well being of the worker is a big reason for that.




Works Cited

Almusaileem, M. (2012, March). Towards a new theory in school management: the theory of positive containment. Education, 132(3), 576-587.
Colorado State University-Global Campus (2010). Module 3a – Management theories [Blackboard ecourse]. In ORG 502 – Effective organizations: theory and practice (p. 4). Greenwood Village, CO: Author.
Mayo, E. 1933. The Human Problems of Industrial Civilization. New York, NY: Macmillan.
Regina, M. (2012, October). Neo-classical organizational theory [Prezi slides]. Retrieved from http://prezi.com/yvxr7ktjeocg/neo-classical-organizational-theory/
Sadika Sultana, M., & Manivannan, L. (2009, March). Knowledge management in pharmaceutical marketing: theoretical models. ICFAI Journal of Knowledge Management, 7(2), 62-76.
Zhihong, L., Zhu, T., & Fang, L. (2010, April). A study of the influence of organizational climate on knowledge-sharing behavior in IT enterprises. Journal of Computers, 5(4), 508-513.

Return to 123HelpMe.com