What are the differences between classical theory and neo-classical theory of organisation?
Difference between classical theory and neo-classical theory of organisation: The classical theory consists of its origin into the writings of Taylor. Convesely, the major ideas of the theory have been developed through Mooney, Allan, Brech as well as Urwick. Neo-classical theory was inspired by the Hawthorne experiments conducted by Elton Mayo and his relatives.
The classical theory considers organization structure as impersonal and mechanical, whereas Neo-classical theory considers organization as a social system.
The consideration of classical theory is upon work and economic requirements of workers, while Neo-classical theory focuses upon small groups and upon emotional and human qualities of workers.
The Emphasis of classical theory is as orderly and rationality, while, the emphasis of Neo-classical theory is upon personal security and social requirements of workers.
As per classical theory, organizational behaviour is type of a product of rules and regulations, while Neo-classical proponents view organizational behaviour like a product of feelings and attitudes and sentiments.
Classical theory involves authoritarian practices, involved rules and regulations to acquire results, while, Neo-classical theories propagate democratic practices and promote involvement of workers in decision-making. All they recognise the significance of human values and dignity.
Classical theory results within dissatisfaction and work alienations in between workers, while, Neo-classical theory results within happy and satisfied workers trying to raise production.