Classical And Neoclassical Management Case Study

765 Words 4 Pages
1.0 Introduction
Organizational theories have tried to shape management practices in organizations and even till now still does. I will attempt to evaluate two organizational theoretical approaches, its merits and demerits and its relevance to human resources professionals in the new world of work.
2.0 Classical and Neoclassical Management Approaches
The neoclassical organization theory also called (Theory-Y) was brought upon by the “human relations movement” Walonick (1993) and “reflects the behavioral science approach” (Chand 2015). This theory displays sincere concern for human needs” (Walonick, 1993) and also points out “the relevance of our human resources in the effective co-ordination of activities” (Chand 2015). The neoclassical theory
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This theory helps give an accurate description of the different levels within an organization. The CEO makes the decisions and steps it down the lower levels. While this would benefit a SME (Small and Medium Enterprise), I don’t see this being beneficial in a larger organization which can be a challenge as employees are being told what to do, how to do it and have no say in their own work processes. I agree with Chand on his perception of the demerits of the classical theory which include; “absence of intrinsic rewards, lack of flexibility and adaptability, suppressing creativity and innovation and absence of free and fair channels of …show more content…
The demerits of the Neoclassical to my perception do not outweigh its merits. Whatever competitive advantage an organization has or will have and foremost depends on its human capital, its employees. You need your employees to run with and own your organization’s strategy but how will they do that if there are no effective HR practices in place? While the Neoclassical theory has its limitations, I strongly feel it provides an explanation for the “social and psychological satisfaction” our employees need to be productive (Sarker, Md. & M., Khan, 2013)’ and in return be committed to aligning their objectives with organizational

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