Which approach views workers in formal organizations as primarily motivated by economic rewards?

The classical theory of organization is centered on the idea that workers are primarily motivated by economic rewards. This approach, developed in the early 20th century, emphasizes efficiency, productivity, and a clear hierarchy within organizations. It posits that employees will respond positively to monetary incentives and structured work environments, leading to increased output.

In classical theory, the belief is that individuals in the workplace are rational beings who will make decisions based on self-interest, primarily financial gains. This perspective is well illustrated by Frederick Taylor's principles of scientific management, which aimed to optimize tasks and boost productivity through financial rewards as the main motivator for workers.

In contrast, human relations theory focuses on the psychological and social aspects of work, highlighting the importance of employee satisfaction and interpersonal relationships rather than just monetary incentives. Behavioral theory emphasizes the impact of behavior, motivation, and individual differences in the workplace, while systems theory looks at the organization as a whole, with an emphasis on interrelationships between different parts rather than solely on economic motivations. Thus, classical theory is the one that clearly correlates economic rewards with worker motivation in formal organizations.