Difference Between Classical And Neo Classical Theory

Neo-classical Theory
The neo-classical approach developed as a reaction to the classical principle, but it did not abandon them altogether. It pointed out the limitations of the classical approach and tried to remove the deficiencies through highlighting certain things which were not considered by the classical writers. That is why, it is classical theory.
The classical organisational functioning in order to increase the efficiency and productivity. But positive aspects of these variable could not produce the positive results in work behavior and the researches tried to investigate the reasons for human behavior at work. This discovered that the real cause of human behavior is somewhat more than the physiological variable. These findings generated a new phenomenon about the organizational functioning and focused attention on human beings in the organisations. These exercises were given new name such as “behavioural theory of orgnisation”, human view of organisation’ or ‘human relations approach …show more content…
Though neo-classical approach developed as reaction to the classical principles but they did not abandon them altogether, rather they pointed the limitations of the classical approach and attempted to fill in the deficiencies through highlighting certain things which were not given due place in classical Contingency approach is an improvement over the systems approach. It not only examines the relationship between sub-system of the organization, but also the relationship between the organization and its promise for the future development of management theory and practice. The other approaches to management can all be incorporated into the contingency framework. However, the contingency approach suffers from two limitations. Firstly, it does not recognize the influence of management concepts and techniques on environment, secondly, literature on contingency theory is not yet