Mayo emphasized on human aspect or emotional aspect of person's in an organization. It is a Neo-classical theory i.e. revival of classical approach. Both accepted efficiency, productivity as values of the organization and role of management in production.

Hawthorne Studies
  1. Illumination experiment to study effect of light on productivity.
  2. Effect of various changes on working conditions on workers output and morale.
  3. Explore employee feelings.
  4. To understand how the norms that controlled each members output were established by his social groups.

  1. Social, psychological conditions affect morale, output not physical conditions.
  2. Organization is a social system.
  3. Non economic rewards and motives are present.
  4. Workers are social animals.
  5. Division on labor i.e. specialization not always best.
  6. Workers form informal organizations and production norms are set by such groups.
  7. Workers react to management as members of informal groups.
  8. Leadership, style of supervision, participative management plays an important role in behavior, satisfaction and productivity.
  9. Supervisor should take personal interest in his subordinates. Workers should bring out needs freely without fear.

Elements of Human Relations Approach

Individual: Each person brings to job certain skills, attitudes, beliefs. He has his own expectations, hopes from job. His emotions, perceptions are important. These determine the output of workers rather than physical, emotional aspects.

Informal organization: Man is a social animal and he needs to be accepted in his social group. Informal organizations is a set of work relationship that grows out of mutual interactions of persons working together over a period of time.

Role of informal organization in organizational efficiency

Influence of work groups is more on productivity. Man's social situation in his work group comes first then his work. Thus management should follow a new technique like motivation, communicate with workers, lead them and handle situations well. Supervision style, morale, productivity are linked.

Participative Management

Here the management should take opinion of workers before changing any decision that affects them. The informal organizations should be consulted. The workers will feel involved. This shall boost their morale, productivity. No alienation between workers and management. So participative management is contrast to classical management.

Classical theory Human relations theory
focus on formal organization informal
organization is rational, impersonal system emotional, social
economic man social man
focus on physiological, mechanical aspects of organization social, psychological
organization behavior is a product of rules, regulations by management organization behavior is due to attitude, sentiment of workers
people are homogeneous heterogeneous
authoritarian supervision democratic
atomic view of man i.e isolated from environment social view
physical work environment is focus of study social
organization structure is important for efficiency workers satisfaction, morale is important

Evaluation of Human relations theory:
  1. Lack of scientific base and unreliable sample size. Sweeping conclusions drawn from studies.
  2. Workers were not natural but affected due to observation in Hawthorne studies.
  3. Pro management and anti union as it tried to replace union representatives with HR oriented supervisors. Didn't understand role of unions in free society. De-emphasized economic motives.
  4. Less focus on formal structures and articulation of formal and informal organizations.
  5. Neglected nature of work, environment of workers, attitudes and behavior of workers, multi dimensional human behavior.
  6. Manipulative as it manipulates man into achieving higher productivity.