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NEO CLASSICAL SCHOOL OF MANAGEMENT
Topic 37: Theory Framework
Key ideas
– Neo-classical thought emerged in response to the Scientific Theory of
Management, which focuses on “Standardization” of activities, processes and
technology to increase economic yields.
– Focus shifted to the human side of organizations.

1. The best way to motivate, organize and support employees.
2. The need for employees to find inner value in their work.
3. The positive impact of public relations on labor productivity.
– The neoclassical theory was an attempt to incorporate moral science
management idea.

– Instead of focusing on production, infrastructure or technology, the neoclassical theory was
work-related.
Topic 38: Hawthorn Lessons
Hawthorn Effect
– Productivity increases when workers believe they are being looked down upon.
– Employees work best when managers and co-workers make them feel important.
– Financial rewards are not associated with increasing productivity of workers.
– Employees care about self-fulfillment, independence, empowerment, social status and
personal relationships with co-workers.

Article 39: Elton Mayo (1933)
Human Relations Theory of Management
Man’s Problems of Industrial Civilization
– Humans are creatures of society and are motivated by the needs of society.
– People develop a sense of self-worth in interpersonal relationships.
– Employees are more interested in the welfare of peer groups than in financial compensation
and management controls.

– Employees respond well to the attention of managers, co-workers as well
customers

EDU 304 MIDTERM PAST PAPERS

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