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ORGANIZATION THEORY – OTHER THEORIES

➢ Neoclassical Perspective – Experts believe that management exists in a social system wherein human factors have roles to perform. Employees can play crucial roles in the decision-making process. In addition, Human Relations and Behavioral Science have become two important approaches of neoclassical theories.

o Human Relations Theory / Hawthorne Studies – Spearheaded by Elton Mayo from 1924 to 1932 at the Hawthorne Plant of Western Electric Company, the team concluded that the business organization also includes social and psychological factors. It considered organization as a social process where feelings, sentiments and attitudes were given due importance. Mayo and Roethlisberger of Harvard Business School postulated that efficiency and productivity could increase if the attitudes of employees were well regarded.

▪ Individual workers cannot be treated in isolation, but must be seen as members of a group.

▪ The need to belong to a group and have status within is more important than monetary incentives or good physical working conditions.

▪ Informal/Unofficial groups at work exercise a strong influence over the behavior of workers

▪ Supervisors and managers deed to be aware of these social needs and cater for them if workers are to collaborate with the official organization rather than work against it.

o Behavioral Science Theory – Experts believe in inter-personal relations. While human relations concentrate on morale and productivity, behavioral science lays emphasis on inter-personal roles and relationships. Unlike the beliefs of the classical theory, behavioral science believes that human beings like work but it should not be super-imposed and should instead be self-realized. They enjoy work and believe in

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