Human relations was the first major approach to emphasize which of the following?

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Human Relations Theory focuses specifically on the individuals needs and resultant behaviors of individuals and groups. It takes an interpersonal approach to managing human beings. It presents the organization is made up of formal and informal elements. 

The formal elements of an organization are its structure. The informal aspects of the organization include the interactions between individuals. In this way, the organization is a type of social system. 

This system should be managed to create individual job satisfaction and the resultant motivation of the individual. 

Notably, much emphasis is placed on how individuals interact within groups and the result group behavior and performance. 

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Elements of Human Relations Theory

At the core of human relations theory are these six basic propositions:

• A focus on people, rather than upon machines or economics
• The organizational environment is not an organized social context
• Human relations are important in motivating people
• Motivation depends upon teamwork, requiring co-ordination and cooperation of individuals involved.
• Human relations within teams must fulfill both individual and organizational objectives simultaneously
• Individuals and organizations desire efficiency by achieving maximum results with minimum inputs

Also, central to the understanding of Human Relations theory is the concept of individual motivation. The drawback of this theory is that it requires the acceptance of numerous assumptions about human behavior.

Who are the Primary Contributors to Human Relations Theory?

The primary contributors to Human Relations Theory are:

• Elton Mayo - Mayo is best known for his contribution to human relationships management through the Hawthorne experiments.
• Mary Parker Follet - Follet employed psychological tools to understand the efficient use of people. She introduced the concept of de-personalized authority and responsibility. The also advocated for the integration of decision making through communication channels.

What are the Hawthorne Experiments?

Professor Elton Mayo is known as the Father of the Human Relations Approach to Management Theory. From 1924 - 1932, he, along with Fritz Roethlisberger, T.N. Whitehead and William Dickson, conducted the Hawthorne studies (so named for the location of the studies - the Hawthorne Plan of Western Electric Company). 

In these experiments, Mayo evaluated the attitudes and psychological reactions of workers in on-the-job situations. It began by examining the impact of illumination levels on worker productivity. Eventually, the study was extended through the early 1930s and addressed a broader range of workplace conditions. 

The results, however, identified a unique identifier of group performance - attention. The control and experimental groups' performance improved irrespective of the environmental conditions. 

The theory became known as the Hawthorne Effect - individuals perform better when given special attention. 

The study also addresses other major concerns, such as: individual vs group job performance, worker motivation, and production standards. 

The findings were as follows:

• Group dynamics (Social Factors) are important determinants of job performance and output.
• Groups have their own norms and beliefs, independent of the individual members.
• Individuals are not solely motivated by compensation. Perceived meaning and importance of ones work are the primary determinants of output.
• Employees prefer a cooperative attitude from superiors, rather than command and control.
• Communication between management and employees is essential to understand employee issues.
• Workplace culture sets production standards - despite standards set by managers.

The work of Mayo, through the Hawthorne studies, was instrumental in understanding the roles of group behavior and individual psychology in management practice.

Who is Professor Mary Parker Follet?

Follet research classical management principles in the context of human elements. She employed psychology to understand employee interactions and to promote the efficient use of people in the organization. 

In her collective works, Dynamic Administration, Follet used psychology to explore various aspects of the organizational environment:

• Workers must participate in the decision-making process through defined communication channels.
• Employees prefer to be integrated into the decision-making process rather than subject to the command and control of managers.
• Working in groups is generally more productive than working individually.
• Authority and order in an organization should be de-personalized. The facts of a situation determine the basis of authority and responsibility.
• Managers must integrate employee input in the resolution of conflicts that provide a benefit to all interested parties.
• Integration between departments or groups within the organization is preferable.

Related Concepts

1. Career Development
2. Classical, Behavioural and Modern Management Theories: Here's the Difference

By Indeed Editorial Team

Published 26 May 2021

Management theories equip business leaders with strategies to improve productivity and the job satisfaction of their team members. Over the years, management theories have evolved to address changes in motivation in the workplace. They aim to improve communication between leaders and their team, to increase efficiency and collaboration towards organisational goals. In this article, we discuss what management theories are and the different types of classical, behavioural and modern management theories.

What are management theories?

Management theories are a collection of concepts and rules that guide business leaders about how they should handle processes, people, information and other duties in the workplace. The theories aim to address how managers can implement strategies to achieve organisational goals. There are several types of management theories that leaders can either combine or choose between, to best suit their management style and company culture. Typically, they fall into three categories, classical management theories, behavioural management theories and modern management theories:

• Classical management theories focus on execution and maximising productivity through external rewards.

• Behavioural management theories view the workplace as a social environment. The theory seeks to increase human potential through skills training and promoting collaboration.

• Modern management theories build on the previous two theories while incorporating modern scientific methods and systems of thinking. It recognises diversity, understanding that different people in different settings need distinct tools.

Related: Management Styles: Overview and Examples

Why are management theories important?

Management theories are important because they help organisations focus, communicate and grow. It streamlines one vision throughout a business, ensuring that each individual's contribution is in alignment with the larger mission. Learning about management theories and putting them into practise helps enhance communication between leaders and their team members. When your co-workers feel appreciated, they will also feel more motivated to produce quality work.

Management theories are also important because they encourage you to be adaptable. What may work for one organisation, may not work for another. Thus, they help you become a more versatile leader, who isn't afraid to change tactics or explore more relevant strategies. Being flexible increases an organisation's growth potential, allowing you to evolve with the times and market demands.

Related: Management Skills: Definition and Examples

Classical management theory

Classical management theory is the oldest management theory. First coined in the industrial age, this theory seeks to create standards to increase production output. It considers compensation to be the major motivation of employees. Thus, a leader that implements this strategy will reward high-performing team members with incentives, such as wages and bonuses, as a means to boost output.

There are three primary theories that comprise the classical management theory:

Scientific management theory

In the early 1900s, Frederick Taylor performed controlled experiments to measure his workers' productivity. He found that a scientific approach was the most accurate predictor of efficiency in the workplace. His research formed the basis of the scientific management theory. It put great emphasis on the following three principles:

• Standardisation

• Specialisation

• Supervision

Managers who use this theory seek to improve productivity by assigning tasks based on ability and providing adequate training to streamline the work process.

Administrative management theory

The administrative management theory uses a top-down management approach. It highlights that leaders in the workplace have six major responsibilities. They include:

• Organisation: Managers need to set goals and objectives for team members to follow.

• Command: They need to effectively communicate expectations to their team.

• Control: Leaders should supervise workers to ensure they remain on target.

• Coordinate: They need to distribute financial and labour resources so that individuals can meet their objectives.

• Plan: Leaders should work on the larger picture. They need to create a detailed plan that uses the resources available to them strategically.

• Forecast: Managers should have good foresight to identify potential problems and assign achievable deadlines.

Bureaucracy theory

The bureaucracy theory emphasises structuring a business in a hierarchy with clearly defined roles and responsibilities. According to the theory, organisations that operate efficiently, implement the following aspects:

• Hierarchal chain of command

• Clear division of labour

• Consistent rules and regulations

• Hiring and promotion based on qualifications and performance

Behavioural management theories

After the industrial revolution, management theories moved from an output-centric approach to a more people-oriented strategy. It gave rise to behavioural management theories that were concerned with addressing the interpersonal needs of professionals. Leaders shifted their focus from external to internal rewards, such as promoting a collaborative atmosphere or encouraging employees to take on projects that fit their personal development goals.

Here are three types of behavioural management theories:

Human relations theory

The human relations theory was developed to improve the productivity of dissatisfied employees. Psychologist Elton Mayo tried a variety of techniques to test how the environment contributed to job satisfaction, such as lighting, temperature and break time. He discovered that all three variables had a significant impact on the mood and outlook of employees. However, the factor that made the most difference to worker satisfaction was the attention researchers gave to workers.

The human relations theory suggests that no matter the working conditions, professionals are more likely to feel satisfied and perform better if their supervisors value their effort. It states that people respond more to social factors, such as personal attention or being part of a group, than environmental factors, such as compensation.

Behavioural science theory

The behavioural science theory focuses on the psychological and sociological processes that influence employee performance. It explains how three concepts interact in a socially charged work environment:

• Information processing describes how people process stimuli in their environment.

• Relationships in behavioural science are composed of interactions, communication networks and associations between co-workers.

• Organisational development is an ongoing, systematic process of implementing effective organisational change.

The behavioural science theory believes that every team member has an important role in an organisation's culture. If a manager understands how a professional views the world and how they prefer to interact with others, they can then successfully motivate them to contribute to organisational development.

Theory X and Y

Theory X and Y outlines two distinct styles of management. Each style is determined by a leader's perceptions and a follower's motivations.

Theory X takes the stance that professionals are not invested in their work. Supervisors who adhere to theory X are usually authoritarian and tend to micromanage their team members. It shows their lack of trust in their co-workers, explaining how toxic culture takes hold in workplaces.

Theory Y assumes professionals are self-motivated. Managers with this approach believe their team members are responsible and can contribute to the decision-making process. This style of management encourages innovation and creativity.

Modern management theories

Modern management theories aim to combine traditional and human management theories so that they are relevant in the workplace today. It uses mathematical techniques to analyse the relationship between managers and employees. The theory recognise that employees don't work for money alone; instead, they work for happiness and a desire to grow.

Organisations are constantly encountering change and need to find novel ways to deal with volatility. Technology is both the cause and solution to this dilemma. Here are three types of modern management theories that balance both scientific and social variables in the workplace:

Related: 14 Leadership Qualities That Are Found in Great Leaders

Quantitative theory

The quantitative theory to management uses statistics, models and computer simulations to inform the managerial decision-making process. The three major branches of the qualitative approach are:

• Management science refers to the mathematical methods of decision-making.

• Operations management is an applied form of management science that ensures the timely delivery of an organisation's products and services.

• Management information system refers to the tools that help with the coordination, control, analysis, and visualisation of information in an organisation.

Systems theory

The systems theory suggests that businesses function as a system with elements that interact and respond to their environment. It encourages you to view a business like any other biological system because it's governed by the same principles. Here are key components that the system theory states about how business activities should run:

• Entropy: Systems run down and go obsolete. This is something businesses should aim to avoid.

• Synergy: The belief that people should work together because they can achieve more as a team than as individuals.

• Subsystem: Businesses are built on subsystems, which themselves are built on more subsystems too.

According to this theory, managers should evaluate patterns and events within the organization to determine the best management approach. They need to collaborate and work together on programs to ensure success.

Contingency theory

Contingency theory believes that a leader's effectiveness depends on the skills and traits they draw upon in a situation. It recognises that different circumstances require a different leadership approach. Researchers determined three factors that managers should consider when making this decision:

• Organisation size

• Technology employed

• Leadership at different levels of the business

The theory states that leaders should consider the resources available to them when identifying a particular management style for a situation. They should be able to respond quickly and effectively whenever necessary.