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The Neo-classical Theory, particularly stemming from the Hawthorne Experiments, significantly shifted management's focus. Which of the following is a primary insight gained from this theory?

AOptimal efficiency is achieved primarily through strict supervision and economic incentives.

BThe social and psychological needs of employees significantly influence productivity.

COrganizations should be viewed as closed systems, unaffected by external factors.

DWork should be broken down into the smallest possible tasks for maximum specialization.

Answer:

B. The social and psychological needs of employees significantly influence productivity.

Read Explanation:

  • The Neo-classical Theory, driven by the Hawthorne Experiments, concluded that factors beyond physical working conditions are crucial for productivity. These include social satisfaction, feelings, emotions, and group norms. It highlighted that human beings are motivated not only by economic incentives but also by social and psychological factors. Optimal efficiency through strict supervision and economic incentives is more aligned with classical views. Viewing organizations as closed systems is contrary to modern systems theory. Breaking down work into small tasks is a tenet of scientific management (Classical Theory).

Related Questions:

Evaluate the following statements concerning F.W. Taylor's elements of Scientific Management:

  1. "Scientific Task and Rate-setting" includes "Work Study," which comprises Method Study, Motion Study, and Time Study.
  2. Under Functional Foremanship, the "Inspector" is responsible for teaching workers the quickest and best way to perform their personal motions.
  3. "Mental Revolution" primarily refers to the management's responsibility to identify and eliminate wasteful motions in production.

    Consider the following statements regarding the evolution of management thought:

    1. The roots of management can be traced back to ancient civilizations, where people lived and worked in groups.
    2. The Industrial Revolution significantly reduced the need for a formal, systematic theory of management.
    3. The Neo-classical theory, also known as the Behavioral Approach, emphasized a rigid, hierarchical structure with clear rules and procedures.
    4. Modern management theory views the organization as a complex, interconnected system.

      Which of the following statements accurately reflects a difference between the Pre-scientific Management period and the Classical Theory? Which of the above statements is/are correct?

      1. The Pre-scientific period saw no application of management techniques, whereas the Classical Theory was the first to implement them.
      2. Robert Owen, a figure from the Pre-scientific period, introduced welfare measures, which foreshadowed the focus on human relations in the Neo-classical Theory.
      3. The Pre-scientific period was characterized by a systematic and data-driven approach to management, unlike the Classical Theory which was based on broad administrative principles.
        According to Max Weber's Bureaucratic Approach, which of the following characteristics is essential for the efficient functioning of an organization, but can also lead to rigidity and depersonalization?

        Consider the following statements regarding the principles of organization: Which of the above statements is/are correct?

        1. Unity of Command is the principle that an employee should receive orders from only one superior, which prevents confusion and conflict.
        2. Unity of Direction is the principle that all members of the organization should work towards a common goal under a single plan, which facilitates coordination.
        3. Scalar Chain refers to the chain of command that runs from the top of the organization to the bottom, linking all members.