Which theory emphasizes the role of economic factors in motivating worker behavior?

The classical theory of management emphasizes the role of economic factors in motivating worker behavior by focusing on the principles of efficiency and productivity. This theory, developed in the early 20th century, posits that workers are primarily motivated by financial incentives and that organizations can maximize productivity by optimizing the allocation of labor and machinery. It suggests that clear structures, hierarchy, and standardized procedures are vital in enhancing organizational performance.

By concentrating on economic motivation, classical theory indicates that workers will be more productive when their basic economic needs are met, thereby aligning their interests with those of the organization. The emphasis on financial rewards directly correlates with increased output, illustrating how economic factors are foundational in shaping work behavior in this framework. This perspective is pivotal in understanding motivations within workplaces, especially in the context of early industrial and manufacturing settings.