Neoclassical Organizational Theory: An Overview

Classical organization theory evolved during the first half of this century. It represents the merger of scientific management, bureaucratic theory, and administrative theory.

Classical organizational theory supports two views. Scientific management which focuses on managing work and employees and administrative management which addresses issues which

Behavioral Management Theory is the understanding and response of employee needs to enforce motivation. This theory guides management in a better understanding of the human aspect. It involves management to treat employees as important resources in the workforce. The goal is to raise productivity and to do this by motivating employees. Motivating employees can involve incentives like employee bonuses, promotions, and the collection and redeeming of points for rewards. As the management takes interest in employees, it makes them feel like an important part of the puzzle, and in turn motivates employees to work harder. Like in most cases, if the employees are satisfied and working conditions are good, productivity raises automatically. A theorist by the name of Mayo Hawthorne devised an experiment that allowed a group of telephone line workers to be separated and observed in a private room. The controlled group of employees increased greatly in productivity. This brought the human relations movement that involved management spending time, showing interest, and rewarding employees to increase productivity. Employees felt management was

Classical organizational theories: As a group, we do not feel that the classical organizational theory complies with the six core values of the NASW code of ethics. We did not feel that the classical organization theory provided any help, support, or benefits to help the members reach their maximum potentials, other than those who are already at the top. We also felt that this theory did not provide equal rights, protection, or social benefits as a part of the social justice perspective of the core values. Where the power and resources rest at the top of the agencies who utilize this theory, we feel that those at the bottom are not held in high esteem, valued, or appreciated. We also feel that the importance of human relationships is dismissed

Elton Mayo- is considered the pioneer of the human relations approach to improve levels of productivity and satisfaction. This approach was first highlighted by the improvements known as Hawthrone Experiments. The Hawthorne studies centered on how workers reacted to actions of management, how variations in physical working conditions affected output, and how social interactions among workers affected job performance (Milakovich and Gordon, 2013). A number of experiments were conducted on the workers to find out the impact of different situations on their efficiency. Mayo advocated for the understanding of personnel problems in the context of growth of science and technology. He wanted the management to understand the problems of workers and make efforts to compensation them. As such, the Mayo’s research established the human relations school of organization theory, which stressed the social and

The shifting paradigm trends describe by Schermerhorn, Hunt, and Osborn (2008) can be used to delve further into the understanding of the organizational behavior that exists

The classical or traditional approach to management was generally concerned with the structure and the activities of formal organization. The utmost importance in the achievement of an effective organization were seen to be the issues such as the establishment of a hierarchy of authority, the division of work, and the span of control.

Organizational theory studies the various variables that influence the behavior of an individual(s) working within an organization, but also, “prescribes how work and workers ought to be organized and attempts to explain the actual consequences of organizational behavior (including individual actions) on work being performed and on the organization itself.” (Milakovich & Gordon, 2013, p.145). Of the many approaches to organizational analysis, Classical Organizational theory has been, even to this day, extremely influential by focusing on more formal concepts such as bureaucracy, rationalization and scientific management. Although, over the decades organizational management has taken on a more human relations approach to getting more productivity out of employees, it is contributors like Max Webber, Fredrick Taylor, and Luther Gulick that laid down the basic foundation organizational theories by recognizing the need for control and procedures.

Elton Mayo is best known for the Hawthorne effect. Mayo was well educated, studying at several different universities including engineering at the University of Glasgow. Mayo faced a lot of rejection during his career but his work greatly influenced our working environments today. He believed that industries were destroying communal harmony and that production would increase if the workers were better taken care of. He is quoted as saying that workers must rise above “indignation and frustration which the…new industrial society forced on workers” (Hoopes 130). These new managerial styles in addition to a capitalist leaning society created an unfriendly environment for the majority of workers. Despite his attempts, his theories and ideas often fell

The twentieth century has brought in a number of management theories which have helped shaped our view of management in the present business environment. These emerging theories have enabled managers to appreciate new patterns of thinking, new ways of organising and new ways of managing organisations and people. Over the years these different theories have enabled the study

George Elton Mayo is credited with founding the human relations movement. Mayo conducted an experiment in the 1920’s and 1930’s know as the Hawthorne study. Two of the main aspects of the study centered around illumination in the work place and varying levels of break time and work hours (Wickström, 2000). The illumination study consisted of four different experiments over the course of three years. In each experiement, there was a control group and a study group. In the varying studies, the researchers experimented with varying levels of light and varying sequences of increasing and decreasing the level of light (“Hawthorne effect”). Throughout the experiments, researchers would often find patterns of increased productivity, leading them to believe that they had

Assumptions of Organizational Economics Theory: organizations are superior to markets in managing complex and uncertain economic exchanges because they reduce the cost of transactions; different approaches to organizational economies share a common attention to explaining the emergence and expansion of organizations, hierarchies,

The studies failed to prove any positive correlations between workplace conditions and productivity. The results of the studies demonstrated that innate forces of human behavior may have a greater influence on organizations than do mechanistic incentive systems. The legacy of the Hawthorne studies and other organizational research efforts of that period began to emphasize the importance of individual and group interaction, humanistic management skills, and social relationships in the workplace.

The history of management includes multiple theories and understanding them can help individuals identify the ideas their organization is built upon. Classical organizational theory encompasses several major approaches to management that continue to be influential even today. The early to mid-twentieth century included the introduction of many concepts of management theory such as scientific management, bureaucratic and administrative theory. Most of these early approaches revolved around control of employees and processes in order to achieve more

In the early 1900’s, some of the first ideas were thrown together to allow an organization to flourish in the upcoming modern era. The first theories were known as scientific and classical management, which focused on three separate theories from Frederick Taylor, Henri Fayol, and Max Weber. The three theories have similar ideology in the fact that organization is driven by management authority, employees only source of motivation is money, and organizations are machinelike with employees making up the parts of the machine (Papa, Daniels, & Spiker, 2008). In the Prophecy Fulfilled case study, Mary Ann (senior auditor) takes on a management role with subordinates similar to that of Weber’s Bureaucratic Theory (Daniels 1987, pp. 77-78).