Question & Answer: How does neoclassical management theory differ from classical theory?…

Expert Answer

Difference between classical and Neo-classical management theory:-

The development of management thoughts were significantly promoted by Classical and neoclassical approach to management. The main focus of classical approach was on job and machine, while in case of neoclassical approach increasing production with the help of better understanding of manpower is the main focal point. The scholars who favor this theory tries to emphasis on the fact that if the managers are able to understand their manpower well and adapt their organsiations to them, it will result in organizational success. Thus in neoclassical theory, the main focus is on employees while in case of classical theory, the focus is on task and structure.