Neo-classical or human relation approach
In the classical theory concentrated on formal organization and ignored the human factor, the neo classical or human relation approach was proposed as a reaction to classical approach. Neo-classical theory may emphasis on the fact that organization is a social system and human factor is most important in it. Elton Mayo is considered human relation school.
1) SOCIAL SYSTEM:
Organization in general is a social system composed of various interacting parts. The social
system defines individual roles and establishes norms that may be different from formal
2)SOCIAL ENVIRONMENT-In this on the job affects the workers and is also affected by
3) INFORMAL ORGANISATION:-It also exists with in the framework of formal
4)GROUP DYNAMICS-At a work place workers do not act or react as an individual but as
a member of group.
5)INFORMAL LEADER-There is an emergence of informal leadership against formal
leadership that sets and enforces group norms.
Also Read: Henry Fayol 14 – Principles of Management
- More importance to workers not to work.
- The human relations due conclusions from Hawthorne study. These conclusions were based on clinical insight then on scientific evidence.
- Limited application, this application is limited. There is no particular structure which may serve the purpose of all organization.
- Limited focus on work, it lacks adequate focus on work. Human relation approach put all emphasis on interpersonal relation and informal groups.
- Over concern with happiness, the theory has been critized for a single minded attention to the concept of happiness. The Hawthorne studies suggested that happy employee will be a productive employee.
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neo-classical or human relation approach neo-classical or human relation approach neo-classical or human relation approach