neo-classical or human relation approach

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. 



   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 


  1. More importance to workers not to work.
  2. The human relations due conclusions from Hawthorne study. These conclusions were based on clinical insight then on scientific evidence.
  3. Limited application, this application is limited. There is no particular structure which may serve the purpose of all organization.
  4. Limited focus on work, it lacks adequate focus on work. Human relation approach put all emphasis on interpersonal relation and informal groups.
  5. 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.       
neo-classical or human relation approach

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By Hassham

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