Neoclassical organizational theory, which evolved in reaction to the rigid and authoritarian structure of classical organizational theory, focuses on the importance of human relationships and behavior in the workplace (Docherty et al., 2001). According to classical organizational theory, there is one best way to design an organization. According to this theory, a manager must exercise close control over subordinates, resulting in an organization with high hierarchies and a narrow scope of control (Scott, 1961). In contrast, neoclassical organizational theory argues that economic efficiency and employee satisfaction should be priorities in an organization. Based on this theory, a manager should have loose control over his subordinates, which results in an organization with flat hierarchies and a wide span of control (Scott, 1961). In turn, neoclassical organizational theory gave rise to two movements known as the human relations movement and the behavioral movement. The human relations movement is based on how people interact with each other within a group while the behavioral movement focuses on the individual behavior of employees (Docherty et al., 2001). The human relations movement, which developed from the work of the Hawthorne studies of Elton Mayo and Fritz J. Roethlisberger, which focused on social factors, such as management's treatment of employees and interpersonal relationships among coworkers, rather than economic factors, as the driving forces of human behavior in the workplace (Sonnenfeld, 1985) . The studies took place at the Western Electric plant in Hawthorne, New York, where Mayo and Roethlisberger measured employee productivity while manipulating light levels...... middle of paper .... .. it is essential that managers create an environment that is conducive to individual growth and achievement with the goal of increasing employee satisfaction and maximizing productivity. This can be done by encouraging employee participation in decision-making processes and providing them with the resources needed to succeed personally and professionally. Works Cited Docherty, J., Surles, R. and Donovan, C. (2001). Manual of administrative psychiatry. (2nd ed.). Washington, DC: American Psychiatric Publishing, Inc. Hindle, T. (2008). Guide to management ideas and gurus. New York, NY: Economist Intelligence Unit. Scott, W. G. (1961, April 1). Organization theory: An overview and evaluation. Journal of the Academy of Management, 4(1), 7-26.Sonnenfeld, JA (1985, April 1). Shedding light on the Hawthorne studies. Journal of Professional Behavior, 6(2), 111-130.