Neoclassical Theory

• Neoclassical Theory – recognizes the importance of individual or group behavior and emphasized human relations

  • also known as Behavioral Theory of Organization, Human Relations, or New Classical Theory of Management
• Based on Elton Mayo, Chester Barnard, and Herbert Simon’s Theories
• Adds a personal or human element to the study of organization, considering the interrelationship between an organization’s requirements and the characteristics of its members
• Productivity was achieved as a result of high morale, which was influenced by the amount of individual, personal, and intimate attention workers received
• Introduced informal organization and emphasized the: individual, work group, and participative management