Human relations in management: A critical analysis of neo-classical theory

The field of management sciences has introduced numerous philosophy relevant to both theoretical and practical applications. One such approach is the Neo-Classical Management Philosophy, which emphasizes the human aspect of organisations. This study critically examines the application of neo-classical theory and their relevance to the practice of human relations. Drawing from a comprehensive review of literature and empirical research, the study explores the core concepts of neo-classical management philosophy, highlighting its significance in shaping modern management practices. The findings reveal that the strength of the neo-classical theory lies in its emphasis on individuals, work groups, and participative management, which are pivotal for achieving organisational goals. The study concluded that the neo-classical theory principles are relevant in human relations practice. These principles of addressing human issues, encouraging staff participation in decision making, emphasis on workers motivation plays an important role in effectively addressing human issues and ensuring managerial effectiveness. However, the study also concluded that limitations such as overlooking other important organisational factors such as organisational structure, procedures, and technology hinders the practical application of the theory in modern managerial practice. Consequently, the study recommends adopting a holistic and integrated management strategy that incorporates both structural elements and human-centric principles for effective managerial outcomes.