What is the different between human relations theory & neo classical ?

Vikas Gupta

Everything you need to know about the neo-classical theory of management. Neo-Classical theory is called human relations and behavioural science approach. It is built on the base of classical theory. It modified, improved and extended the classical theory. Classical theory concentrated on job content and management of physical resources. Neo-Classical theory gave greater emphasis to man behind the machine and stressed the importance of individual as well as group relationship in the plant or workplace. Neo-Classical approach may be analysed in three parts, namely — 1. Hawthorne Experiment 2. Human Relation Movement 3. Behavioural Approach. The basic features of neo­classical approach are: (i) The business organisation is a social system. (ii) Human factor is the most important element in the social system. (iii) It revealed the importance of social and psychological factors in determining worker productivity and satisfaction. (iv) The behaviour of an individual is dominated by the informal group of being a member. (v) The aim of the management is to develop social and leadership skills in addition to technical skills. It must be done for the welfare of the workers. (vi) Morale and productivity go hand-to-hand in an organization Human relations theory: a school of organizational thought which focuses on worker satisfaction, informal workplace organizations, and a means of influencing employee productivity. Unlike scientism, human relations theory does not view workers as essentially interchangeable parts. Human Relations Approach: Hawthorne experiment led to the development of human relations approach. It revealed the importance of social and psychological factors in determining workers, productivity and satisfaction. This movement is marked by informal grouping, informal relationship and leadership Pattern of communication and philosophy of industrial humanism. The values of human relation are exemplified in the work of Douglas McGregor and A. H. Maslow. Human relation approach is a social psychological approach and suggests business enterprise is a social system in which group norms play a significant role.