The test group achieved higher morale due to special attention given to the employees as individuals and also the social structure of the work group. The Hawthorne experiments further revealed that a worker’s feeling about himself and in work group matter most. The third set of experiments which began in 1931 attempted to understand how group norms affect group effort and output. It was noted that the informal organization of workers controlled the norms established by the groups in respect of each member’s output.


These and subsequent findings concerning human behaviour at work focused on worker as an individual and considered the importance of caring for his feelings and understanding the dynamics of the informal organization of workers-which affect the formal organization structure, its activities, processes and output. The neoclassical viewpoint thus gave birth to human relations movement and provided the thrust toward democratization of organizational power structures and participative management. The emerging changes in social, economic, political and technical environment of organizations also seems to have provided the rationale for such shift in emphasis.


The neoclassical viewpoint does not replace classical concepts. The need for order, rationality, structure, etc. have been modified to highlight the importance of relaxing the rigid and impersonal structures and consider each person as an individual with feeling and social influences that effect performance on the job.


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