The neoclassical organization theory evolved from 1920-1950s in response to the authoritarian structure of classical theory. It recognized that workers have both economic and socio-psychological needs, as shown by the Hawthorne studies. Theorists like Barnard, Merton, and Simon contributed new perspectives on leadership, bureaucracy, and bounded rationality. While neoclassical theory acknowledged human elements in organizations, it did not establish a unified body of theory and mostly revised classical perspectives.
The neoclassical organization theory evolved from 1920-1950s in response to the authoritarian structure of classical theory. It recognized that workers have both economic and socio-psychological needs, as shown by the Hawthorne studies. Theorists like Barnard, Merton, and Simon contributed new perspectives on leadership, bureaucracy, and bounded rationality. While neoclassical theory acknowledged human elements in organizations, it did not establish a unified body of theory and mostly revised classical perspectives.
The neoclassical organization theory evolved from 1920-1950s in response to the authoritarian structure of classical theory. It recognized that workers have both economic and socio-psychological needs, as shown by the Hawthorne studies. Theorists like Barnard, Merton, and Simon contributed new perspectives on leadership, bureaucracy, and bounded rationality. While neoclassical theory acknowledged human elements in organizations, it did not establish a unified body of theory and mostly revised classical perspectives.
• Evolved from the tough and authoritarian structure of the classical theory • It revises and criticizes the classical perspective citing the “humanness of organizational members”. • suggested that workers have social and psychological needs along with economic needs in order to be motivated to complete their assigned tasks. George Elton Mayo • Hawthorne Study (1920) [Elton Mayo] – Began in the 1920s with the Hawthorne studies: gave emphasis to “affective and socio-psychological aspects of human behavior in organizations.” – proposes that sense of belonging in the workplace is important to increase productivity levels in the workforce – helped conclude that “a human/social element operated in the workplace and that productivity increases were as much an outgrowth of group dynamics as of managerial demands and physical factors.” CHESTER ROBERT HERBERT BARNARD MERTON SIMON • Chester Barnard – Defines the role of the executive: • To create a sense of purpose and moral code for the organization • To establish systems of formal and informal communication • To ensure the willingness of the people to cooperate • To employ different strategies for inducing cooperation • Robert Merton – Proclaimed that an “ideal type” of bureaucracy has inhibiting dysfunctions. • Herbert A. Simon – Asserted that organization theory is about the bounded rationality of a human being who “satisfice” since they do not have the intellectual capacity to maximize. PHILIP RICHARD JAMES MELVIN TALCOTT WILLIAM SELZNICK CYERT MARCH DALTON PARSONS WHYTE • Philip Selznick – Stated that “organizations consist not simply of a number of positions for management to control, but of individuals, whose goals and aspirations might not necessarily coincide with the formal goals of the organization” • Cyert and March – Discussed the formation and activation of coalitions – Reasoned that corporations tend to “Satisfice” rather than to engage in “economical rational profit maximizing behavior” • Melvin Dalton – Focused on the structural frictions between line and staff units and between the central office and its branches. • Talcott Parsons – Defined an organization as a social system that focuses on the attainment of specific goals and contributes • William Whyte – studied “stresses” that result from interrelations and status differences in the workplace Its Fine Point and Flaws • Fine Point • Flaws – Attempted to revise the – Did not develop a body classic perspective, of theory. It just urging the schools who modified the classical followed theory. – Incorporated professions such as sociology into organization theory