Question

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?

• A. Optimal efficiency is achieved primarily through strict supervision and economic incentives.
• B. The social and psychological needs of employees significantly influence productivity.
• C. Organizations should be viewed as closed systems, unaffected by external factors.
• D. Work should be broken down into the smallest possible tasks for maximum specialization.

Answer 1

Answer:

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

• 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).