Scribd
Upload
1K views

Neoclassical Theory

1) Neoclassical theory emphasizes practical management and general principles of administration. It reaffirms classical postulates while incorporating modern concepts. 2) Neoclassical theorists focus on objectives, results, and establishing rules of administrative behavior. A key contribution was management by objectives. 3) The theory takes an eclectic approach, drawing from various management theories to present an updated model for managers.

Uploaded by

4gen_7
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
1K views

Neoclassical Theory

1) Neoclassical theory emphasizes practical management and general principles of administration. It reaffirms classical postulates while incorporating modern concepts. 2) Neoclassical theorists focus on objectives, results, and establishing rules of administrative behavior. A key contribution was management by objectives. 3) The theory takes an eclectic approach, drawing from various management theories to present an updated model for managers.

Uploaded by

4gen_7
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
You are on page 1/ 3

Neoclassical Theory

The authors (Peter F. Drucker, Ernest Dale, Harold Koontz, Cyril O'Donnell, Mich
ael Jucius, William Newman, Ralph Davis, George Terry, Morris Hurley, Louis Alle
n). The authors neoclassical form a relatively heterogeneous movement.
KEY FEATURES of neoclassical theory

Emphasis on the practice of management. Reaffirmation of the classical postulate


s. Emphasis on general principles of administration. Emphasis on objectives and
results. Eclecticism.
1. Emphasis on the practice of management
Neoclassical theory is characterized by a strong emphasis on the practical aspec
ts of the administration, pragmatism and the search for concrete and tangible re
sults, considering the administrative action. The theory only has value when ope
rationalized in practice. This theory represents an enormous contribution to the
American pragmatic spirit.
2. Reaffirmation of the classical postulates concerning
Authors neoclassical retake much of the material developed by the classical theo
ry, downsizing and restructuring in accordance with the contingencies of the tim
es, giving a wider and more flexible configuration.
3. Emphasis on general management principles

The authors are concerned to establish neo-classical rules of administrative beh


avior. The study of administration is based on the presentation and discussion o
f general principles on how to plan, how to organize, how to lead, how to contro
l, etc. The neo-classical writers were also concerned to establish the general p
rinciples of administration, able to guide the administrator in carrying out its
duties. The principles in the administration seek to demonstrate a cause-effect
relationship. A principle is a general proposition applicable to certain phenom
ena to provide a guide to action. The general principles of management, be appli
ed in general situations, in a manageable and flexible, based on common sense of
the administrator. Common sense is the criterion for choosing the most appropri
ate principle to a particular situation.

4. Emphasis on objectives and results

Every organization exists to achieve goals and produce results. It is in their r


ole as the organization must be focused, structured and oriented. The objectives
are displayed values or results desired by the organization. The organization h
opes to achieve through efficiency of operation. The objectives justify the exis
tence and operation of an organization. One of the best products of neoclassical
theory is called management by objectives (APO).

5. Eclecticism in neoclassical theory


The authors are eclectic neoclassical and collect the content of virtually all m
anagement theories:

From the theory of human relations: the concept of informal organization, group
dynamics, communication, leadership, and democratic openness initiated by admini
strative theory. From the theory of bureaucracy: the emphasis on formal rules an
d principles of hierarchical organization and aspects of the authority and respo
nsibility. Of structuralist theory: the perspective of the organization within a
society of organizations, the relationship between organization and external en
vironment, the comparative study of organizations through their structures. From
behavior theory: recent concepts on human motivation, management styles, decisi
on theory, human behavior in organizations. In the mathematical theory: as an at
tempt to apply operational research and its methods of quantification, the appro
ach of measuring results, the study of quantitative decision and programmable. F
rom the theory of systems: the approach of the organization as a system composed
of multiple subsystems, integration and reciprocity, the demands of the externa
l environment, the feedback of the consequences, the cycle of events constitutin
g the administration. Because of this eclecticism, the neoclassical theory is co
nsidered a classic updated with modern management concepts and in the eclectic m
odel that represents the manager's training today.

ADMINISTRATION AS A SOCIAL TECHNIQUE


Management is a widespread activity and essential to all collective human effort
. Man needs, increasingly, to cooperate with men to achieve its objectives in th
is regard, the administration is basically the coordination of group activities.
€One of the phenomena that make the present century is the emergence of a societ
y of organizations. This society of organizations tends to a plurality of object
ives, a variety of institutions and a diffusion of power. Increasingly, every or
ganization uses the other agents to carry out its tasks.
ADMINISTRATIVE MATTERS COMMON TO ORGANIZATIONS
In formulating a theory of organizations Drucker highlights three main aspects:
in terms of objectives: organizations do not live for themselves, are media are
corporate bodies that seek the creation of a social theory. on the administratio
n: all large organizations are different in their goals, their purposes, but the
y are essentially similar in the administrative area. All require the gathering
of many people who must act together and integrated in a common effort. in terms
of individual performance: the field where there is less difference between the
organizations. Individual performance is the efficiency of personnel working wi
thin organizations.
Each company should be considered from the point of view of effectiveness and ef
ficiency simultaneously. Efficiency is a measure of the extent of performance st
andards, while efficiency is a normative measure of resource use in this process
. The efficiency shows the relationship between resources used and the final pro
duct: the ratio between effort and result, between income and expense between th
e cost and benefit. However, not always the effectiveness and efficiency go hand
in hand. A company can be efficient in its operations and may not be effective
or vice versa. The effectiveness is concerned about doing the right things to me
et the needs of the business and the environment that surrounds it. Meanwhile, t
he efficiency is focused on operations and have their attention directed toward
the internal aspects of the organization, effectiveness focuses on success.
Centralization versus decentralization advantages of centralization
2)
3)
4)
5)
6)
Decisions are made by managers who have a global vision of the company. Decision
makers and are located in high positions are generally better trained. The deci
sions are more consistent with overall business objectives. Eliminates duplicati
on and reduces operational costs of decentralization. certain functions, achieve
greater specialization and increased skills.

You might also like