Main Assumptions of Neo-Classical Theory of Administration

1. Importance of Human Relations:

• Focuses on human behavior and interpersonal relationships within organizations.
• Example: Motivation and job satisfaction are key to employee productivity.

2. Flexibility in Structure:

• Acknowledges the need for flexibility in organizational structures.
• Example: Teams can adapt based on project needs, rather than strictly following hierarchical rules.

3. Informal Organizations:

• Recognizes the influence of informal groups and communication channels.
• Example: Employees may form informal networks to share ideas outside official channels.

4. Emphasis on Employee Motivation:

• Stresses the importance of meeting employee needs to increase efficiency.
• Example: Offering incentives and positive work conditions to boost morale.