Modern Organizational Theory: Beyond the Human-Centered Approach

Introduction

Modern organizational theory represents a significant evolution in the field of management. While focusing on individual differences, Neoclassical Organizational Theory embraces a perspective that integrates the biological, physiological, psychological, and social aspects of human beings. In this article, we will delve into the neoclassical management era and explore key areas such as human behavior, interpersonal relationships, group formation and behaviors, informal organization, perception and attitudes, motivation, leadership, organizational change, and development.

Hawthorne Studies

Research conducted at the Hawthorne factories from 1923 to the mid-1930s, led by psychologists under the guidance of Elton Mayo, laid the foundation for the human relations movement. The Hawthorne Studies comprised six different experiments, spanning a decade, including the following:

• Illumination Experiment:Discovered that increasing workplace illumination could enhance productivity, emphasizing the significance of lighting levels.
• Relay Assembly Test Room Experiment:Showed that employees needed better coordination for more efficient task performance, highlighting the importance of teamwork.
• Second Relay Assembly Test Room Experiment:Demonstrated that applying lessons learned from the previous experiment led to more efficient task performance, reinforcing the idea that collaboration enhances productivity.
• Mica Splitting Test Room Experiment:Aimed to determine material properties through specific load application, widely used to measure properties like tensile strength in various materials.
• Bank Wiring Observation Room Experiment:Studied the behavior and operation of electromechanical systems, essential for understanding mechanical system vibrations.

3. Results of the Experiments

The Hawthorne Studies yielded two fundamental results: the importance of the individual and the significance of work or social groups, forming the basis of neoclassical organizational theory.

• The studies indicated that personal issues significantly affected employees’ performance, highlighting the importance of social needs for employees.
• The crucial role of informal organizations within formal organizations was revealed. Employees valued acceptance and appreciation from peers as much, if not more than, financial incentives.
• Employee responses to changes depended on the meaning of those changes to them. Responses may not always follow a logical path.
• Organizations are social systems where human and group relationships are vital. There are two aspects in businesses: the technical and the human.
• Humans cannot be treated like machine parts, as every person is unique. Actions and behaviors are influenced by situations, expectations, and desires, affecting productivity.
• Non-economic rewards are crucial in motivating and satisfying personnel. Employees are not merely “economic humans” who act solely based on financial incentives.
• Division of labor and specialization may not always lead to increased efficiency. On the contrary, they can cause monotony and occupation-specific illnesses, reducing productivity.

X and Y Theory

The X and Y Theory aims to explain employee behavior and management approaches. According to X theory, employees are inherently lazy, tend to avoid work, and are motivated solely by money. Therefore, proponents of X theory believe that an authoritative approach is necessary.

X Theory Characteristics:

• Employees are naturally lazy and avoid work.
• Employees work solely for money.
• Without control, the work environment becomes disorganized and inefficient.
• Managers should adopt an authoritative approach.

In contrast, Y theory asserts that people are inherently creative and seek self-realization. Accordingly, managers should support employee autonomy, trust, and motivation.

Y Theory Characteristics:

• Employees are naturally creative and seek self-realization.
• Employees are motivated by factors beyond money.
• Employees should be supported, trusted, and motivated.
• Managers should adopt a democratic approach.

Chris Argyris’s Maturity Model

Chris Argyris developed several models to understand and explain human behaviors in organizations. The Maturity Model is one of these models.

• The Maturity Model predicts that an individual’s ability to self-manage and make decisions will increase as a result of experiences throughout their lives. This model establishes that an individual’s maturity level depends on problem-solving skills, emotional control, self-awareness, and responsibility. An individual’s abilities and experiences determine their maturity level. For example, if someone has enough experience in a specific area, we can consider them more mature in that field.
• According to the Maturity Model, organizations can use methods like open communication, supportive leadership, training, and development programs to encourage individual maturity. Additionally, as an individual’s maturity level increases, they should play a more significant role in participation and decision-making processes.

In Conclusion:

Neoclassical Organizational Theory sheds light on a perspective that emphasizes the human-centric evolution in the business world. Concepts from Hawthorne Studies, X and Y Theory, and Chris Argyris’s Maturity Model redirect organizations to view themselves not only as machines and equipment but also as social systems where human and group relationships come together. The impact of these theories continues to influence contemporary organizations, shaping the success of leaders, employees, and the organizations themselves.