The Neoclassical Organizational Theory Essay - 633 Words

The 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). According to the classical organizational theory, there is a single best method to designing an organization. Based on this theory, a manager must have close control over their subordinates, resulting in an organization with tall hierarchies and a narrow span of control (Scott, 1961). In contrast, the neoclassical organizational theory argues that both economic effectiveness and employee satisfaction should be priorities in an organization. Based on this theory, a manager should have loose control†¦show more content†¦The behavioral movement was designed to help employees find satisfaction in their jobs. The pioneers of the behavior movement, Abraham Maslow, Douglas McGregor, Frederick Herzberg and David McClelland, all researched fo r ways to help motivate employees based on their individual skills, capabilities and needs (Hindle, 2008). In the 1960s, Douglas McGregor developed two contrasting theories on human motivation called Theory X and Theory Y. Theory X assumes that the average employee is lazy, has an inherent dislike for work and therefore, will try to do as little as possible and/or avoid it whenever possible (Hindle, 2008). Based on this assumption, managers must closely supervise and control their employees with a precise system of rewards and punishments. In contrast, Theory Y assumes that the average employee is not lazy and will do what is best for the organization when given the opportunity (Hindle, 2008). As a result, managers should develop a work environment that produces sufficient opportunities for employees to exercise initiative and self-direction. This approach of decentralizing authority should not only help increase their participation levels but also empower them to become personally invested in the success of the organization. After all, human beings haveShow MoreRelatedNeoclassical Organizational Theory: An Overview536 Words   |  2 PagesNeoclassical 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). 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