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The neo-classical approach in management emerged in the early to mid-20th century, emphasizing the importance of human relations and social factors in the workplace. It built upon classical management theories by incorporating insights from psychology and sociology, focusing on employee motivation, group dynamics, and the informal organization. This approach highlighted that worker satisfaction and social needs significantly impact productivity and organizational effectiveness. Key figures, such as Elton Mayo, contributed to this perspective through studies like the Hawthorne Experiments, which underscored the role of social interactions in enhancing work performance.

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