1.

Introduction

The review critically reviewed the articles that are dealt with respect to the contribution of
neoclassical approach to management which is written by Ozgur Onday(PhD
student).Purposefully we prefer to review an article of neoclassical management theory,
because, neoclassical management theory introduced the behavioral sciences (interpersonal
relations) into management thought. Besides these, to compensate the neglect of human
interaction in the classical school, neoclassical approach also contributes the implementation of
behavioral science at work place and it has its own logically analyzed main
propositions(considerations) that are different from other management theories. From the listed
main proposition of neoclassical theory some of them are analyzed under this article analysis.
The classical theory laid emphasis on the physiological and mechanical variables and considered
these as the prime factors in determining the efficiency of the organization.

But, when the efficiency of the organization was actually checked, it was found out that, despite
the positive aspect of these variables the positive response in work behavior was not
evoked.Consequently, the author tried to identify the reasons for human behavior at work. This
led to the formation of a neoclassical theory which primarily focused on the human beings in the
organization. This approach is often referred to as “behavioral theory of organization” or “human
relations” approach in organizations.

The Neoclassical theory asserts that an individual is diversely motivated and wants to fulfill
certain needs.That is why we intentionally select and going to review articles written based on
neoclassical management theory. Therefore, questions like what motivates human, how humans
are fulfill their need, how communication is an important yardstick to measure the efficiency of
the information and why teamwork is the prerequisite for the sound functioning of the
organizations are detail discussed in this article review in the form of strength and weakness that
is presented in this article.
 2. Summery

Critics argued that classical management might look for standardized skills and method. It could not
expect perfectly standard emotionless behaviour from its employees. (Bowditch, buono and
stewart.2008).The recognition that workers had social needs led to a new set of assumptions about human
nature. Rather than viewing people solely as rational, economic creatures, social considerations were now
seen as the prime motivator of behaviour and work performance. Since the increasing mechanization of
work was stripping jobs of their intrinsic value, people would seek out meaning in their work through
social relationships on the job. Management, it was argued, must therefore support people to satisfy these
natural desires. Although these arguments may appear to be somewhat moralistic, they were tied to
prescriptions for organizational effectiveness and efficiency. If managers did not answer to these socially
oriented needs with greater consideration and warmth, lagging work performance and resistance to
authority were viewed as likely outcomes. (Ibid.)
eoclassical approach to management is a set of heterogeneous ideas on the management of
organizations that evolved in the mid-19th century. When factory production became in
escapable and large scale organizations raise, people have been looking for ways to motivate
employees and improve productivity. To do so,organization came upto schools of neoclassical
theory with a more human-oriented approach and emphasis on time needs, drives, behaviors and
attitudes of individuals. Two important groups, namely, human relations school and behavioral
schools emerged during 1920s and 1930s under the neoclassical theory. Our article review is
concerning on strength and weakness of neoclassical management theory that is analyzed in
detail below.

3. Analysis
3.1. Strength

The author of this article put’s some use full idea that strongly support neoclassical management
theory listed below

 This article convince as by siting the idea of Frederic Winslow Taylor principles on the
bases of a <<mental revolution that would take place in the attitude of management and
labor. Since management and labor are human, neoclassical management theory
reviewed under this article is consider human interaction (behavioral aspect of human)
that was neglected in the classical theory.
Before we start to talk about change, we have to first what we need to change? In any
organizational change, the first changed aspect is mental revolution of managers and
 workers (humans). After change in mental is emerged in an organization the next step of
change will be almost all very simple and not sophisticated to run any activities in that
organization.
 The writer of this article think that “workers exert a greater influence on work behavior
than the economic incentives offered by management” and he argued that “workers are
somewhat moralistic” in their nature. This means most of human beings are lovely,
consciously, and morally performing their daily duty without enforced by any external
factors like………..
 Philip Selznick the Founder of the Theory of Organization idea putted bellow is very
interesting idea that strongly convince as “Organizations exist to serve human needs
(rather than the reverse). Organizations and people need each other. (Organizations need
ideas, energy, and talent; people need careers,salaries, and work opportunities.) ”we
appreciate this idea it is logically analyzed in this article. We observe that existence of
organization is nothing without existence of people.

3.2. Weakness
 Chester Bernard the pioneer of management theories deals about the “economic of
incentive” in his theory of authority and incentive. Writer of this article also try to tie the
idea of “incentive and persuasion” together by siting the idea of Chester Bernard
“economic of incentive”. Here, we disagree with the idea of “incentive and persuasion”
as the same factors that an organization used to attract employees and subordinates.
Whatever incentives attract employees and subordinates toward the organization but,
persuasion is completely different from the idea of incentive. Because, incentive in its
character:-
 It is cannot sustainably motivate employees toward organizational goal.
 It is situational and time dependent
 It is extrinsic motivation by it self

If worker got better incentive they may withdraw from one organization and go to other
organization that provide better incentive for his employees but if they were persuaded very well
and they have purpose and morale to serve their organization they were still stay in their
organization even if they got better incentive from other organization.

Unlike incentive, persuasion is:-

 Persuasion sustainably motivates career and development of employee toward

organizational goal.
 It is intrinsic motivation that is installed in moral of employees
 It is permanently emerged in employees brain for long period of time
 One of contribution of neoclassical approach is the implementation of behavioral
science at work place. From the listed main proposition of neoclassical theory we
disagree with idea of “man’s behavior can be predicted in terms of social and
psychological factor”

In our opinion “man’s behavior cannot be predicted” in any case. The main thing that we
have to always bear in mind is “human beings are highly flexible in nature”. Human beings
brain is not adjusted like machine and computer. Unlike machine and computer human
beings brain is highly flexible and changed within a second and minutes, because of this we
cannot predict behavior of human.

 Neoclassical theory introduced the behavioral sciences into management thought that is
centered on understanding interpersonal relations. Within this context; the neoclassical
school of thought can be viewed as an analysis of the classical doctrine.
From the listed analysis we disagree with the idea of “a manager’s span of control is a
function of human factors and cannot be decreased to a precise, universally applicable
ratio.” Because sophisticated span of control leads organization to employing many managers
who control and supervise each and every scattered span of management. In this elongated span
of management there will be existence of:-
 Surplus use of organizational resource
 It consumes much time to supervise each and every activity.
 It opens way for unnecessary bureaucratic way of doing
Therefore, uncompromisingly it is possible to minimize span of control so as to closely supervise
each and every activities performed in an organization efficiently and effectively.

4. Conclusion

This review has made an effort to critically investigate an article entitled neoclassical
organization theory which is written by Ozgur Onday(PhD student).Generally, from this article,
we have analyzed the weakness and strength of the article. On the side of strength part of this
analysis we have broadly discussed, the necessity of mental revolution of human being is the
primary step to overcome any type of problem that may be appeared in an organization and it is
necessary to step up change activities within the organization. Accordingly, incentive is not the
only factor that increase morality of an employee but also loving one’s own profession is a core
for maximizing profitability of an organization efficiently and effectively. Besides this, existence
of organization is meaningless without existence of people i.e. organization is exist to serve
people not the reverse is true.

We have also analyze the weakness of this article as summarized below, the article was
believed that, span of control cannot be decreased to a précised, universally applicable ratio. But,
this idea was wrong according to as because, the idea is not logical and reasonable for as. Not
only this, we were also disagree with idea of man’s behavior can be predicted in terms of social
and psychological factors. Since human beings character is highly flexible and changed it is
difficult to accept predictability of human behavior. Lastly,we have seen that, the idea of
incentive is totally different from the idea of persuading according to our logic.Finally the
conclusions that we mentioned above were reached by our group,