The inspiration of the neoclassical school of management thought were the Hawthorne studies. As a reaction to schools of classical theory which over-emphasized the mechanical and physiological characters of management, came up the schools of neoclassical theory with more human oriented approach and emphasis on time needs, drives, behaviors and attitudes of individuals.
The neoclassical school or neoclassical theory, also referred to as the human relations school of thought reflects a modification to and improvement over the classical theories. While classical theories focused more on structure and physical aspects of work (notwithstanding Taylor’s concern for mental revolution), the neoclassical theory recognizes the primacy of psychological and social aspects of the worker as an individual and his relations within and among groups and the organisation. Though neoclassical philosophy could be traced to ancient times, it gained currency only after the World War I, particularly in the wake of the “Hawthrone experiments” at Western Electric Company by Elton Mayo during 1924 to 1932.
Main groups of neoclassical management school are
1. Human relations school
2. Behavioural School