Neoclassical Theory The authors (Peter F.

Drucker, Ernest Dale, Harold Koontz, Cyril O'Donnell, Mich ael Jucius, William Newman, Ralph Davis, George Terry, Morris Hurley, Louis Alle n). The authors neoclassical form a relatively heterogeneous movement. KEY FEATURES of neoclassical theory

Emphasis on the practice of management. Reaffirmation of the classical postulate s. Emphasis on general principles of administration. Emphasis on objectives and results. Eclecticism. 1. Emphasis on the practice of management Neoclassical theory is characterized by a strong emphasis on the practical aspec ts of the administration, pragmatism and the search for concrete and tangible re sults, considering the administrative action. The theory only has value when ope rationalized in practice. This theory represents an enormous contribution to the American pragmatic spirit. 2. Reaffirmation of the classical postulates concerning Authors neoclassical retake much of the material developed by the classical theo ry, downsizing and restructuring in accordance with the contingencies of the tim es, giving a wider and more flexible configuration. 3. Emphasis on general management principles

The authors are concerned to establish neo-classical rules of administrative beh avior. The study of administration is based on the presentation and discussion o f general principles on how to plan, how to organize, how to lead, how to contro l, etc. The neo-classical writers were also concerned to establish the general p rinciples of administration, able to guide the administrator in carrying out its duties. The principles in the administration seek to demonstrate a cause-effect relationship. A principle is a general proposition applicable to certain phenom ena to provide a guide to action. The general principles of management, be appli ed in general situations, in a manageable and flexible, based on common sense of the administrator. Common sense is the criterion for choosing the most appropri ate principle to a particular situation.

4. Emphasis on objectives and results

Every organization exists to achieve goals and produce results. It is in their r ole as the organization must be focused, structured and oriented. The objectives

are displayed values or results desired by the organization. The organization h opes to achieve through efficiency of operation. The objectives justify the exis tence and operation of an organization. One of the best products of neoclassical theory is called management by objectives (APO).

5. Eclecticism in neoclassical theory The authors are eclectic neoclassical and collect the content of virtually all m anagement theories:

From the theory of human relations: the concept of informal organization, group dynamics, communication, leadership, and democratic openness initiated by admini strative theory. From the theory of bureaucracy: the emphasis on formal rules an d principles of hierarchical organization and aspects of the authority and respo nsibility. Of structuralist theory: the perspective of the organization within a society of organizations, the relationship between organization and external en vironment, the comparative study of organizations through their structures. From behavior theory: recent concepts on human motivation, management styles, decisi on theory, human behavior in organizations. In the mathematical theory: as an at tempt to apply operational research and its methods of quantification, the appro ach of measuring results, the study of quantitative decision and programmable. F rom the theory of systems: the approach of the organization as a system composed of multiple subsystems, integration and reciprocity, the demands of the externa l environment, the feedback of the consequences, the cycle of events constitutin g the administration. Because of this eclecticism, the neoclassical theory is co nsidered a classic updated with modern management concepts and in the eclectic m odel that represents the manager's training today.

ADMINISTRATION AS A SOCIAL TECHNIQUE Management is a widespread activity and essential to all collective human effort . Man needs, increasingly, to cooperate with men to achieve its objectives in th is regard, the administration is basically the coordination of group activities.€O ne of the phenomena that make the present century is the emergence of a society of organizations. This society of organizations tends to a plurality of objectiv es, a variety of institutions and a diffusion of power. Increasingly, every orga nization uses the other agents to carry out its tasks. ADMINISTRATIVE MATTERS COMMON TO ORGANIZATIONS In formulating a theory of organizations Drucker highlights three main aspects:

in terms of objectives: organizations do not live for themselves, are media are corporate bodies that seek the creation of a social theory. on the administratio n: all large organizations are different in their goals, their purposes, but the y are essentially similar in the administrative area. All require the gathering of many people who must act together and integrated in a common effort. in terms of individual performance: the field where there is less difference between the organizations. Individual performance is the efficiency of personnel working wi thin organizations. Each company should be considered from the point of view of effectiveness and ef ficiency simultaneously. Efficiency is a measure of the extent of performance st andards, while efficiency is a normative measure of resource use in this process . The efficiency shows the relationship between resources used and the final pro duct: the ratio between effort and result, between income and expense between th e cost and benefit. However, not always the effectiveness and efficiency go hand in hand. A company can be efficient in its operations and may not be effective or vice versa. The effectiveness is concerned about doing the right things to me et the needs of the business and the environment that surrounds it. Meanwhile, t he efficiency is focused on operations and have their attention directed toward the internal aspects of the organization, effectiveness focuses on success. Centralization versus decentralization advantages of centralization 2) 3) 4) 5) 6) Decisions are made by managers who have a global vision of the company. Decision makers and are located in high positions are generally better trained. The deci sions are more consistent with overall business objectives. Eliminates duplicati on and reduces operational costs of decentralization. certain functions, achieve greater specialization and increased skills.