Human Relations Management Theory / Behavioural Approach Theory

Unit I: Business Management and Managerial Economics

Human Relations Management Theory is not a single theory but a collection of related ideas that emerged in the early 20th century, focusing on the human and social aspects of work.

Emerging in the early 20th century—especially through the work of Elton Mayo and the Hawthorne Studies—this theory challenged earlier mechanistic views by showing that social relationships and employee well-being significantly impact productivity.

These theories emphasize that employee well-being, motivation, communication, and group dynamics significantly impact productivity and organizational success.

Here are the main components and key contributors to Human Relations Management Theory:

1. Elton Mayo – Hawthorne Studies

Main Idea: Workers are motivated more by social and psychological needs than by physical working conditions or money.
Key Concept: Hawthorne Effect – productivity improves when employees feel observed, valued, and involved.
Contribution: Recognized the role of informal work groups, employee morale, and interpersonal relationships.

2. Abraham Maslow – Hierarchy of Needs (1943)

Main Idea: Humans have a hierarchy of needs that must be fulfilled in order:
1. Physiological
2. Safety
3. Social (Belonging)
4. Esteem
5. Self-actualization
Application: Managers should create conditions that fulfill these needs, especially the social and esteem levels, to boost motivation.

3. Douglas McGregor – Theory X and Theory Y (1960)

Theory X: Assumes employees are lazy, avoid responsibility, and need close supervision.
Theory Y: Assumes employees are motivated, enjoy work, and seek responsibility when given the right environment.
Application: Promotes a participative and supportive management style that aligns with Theory Y for better performance.

Summary Table:

Theorist	Key Concept	Contribution to Human Relations
Elton Mayo	Hawthorne Effect	Importance of attention, social needs, informal groups
Abraham Maslow	Hierarchy of Needs	Motivation through fulfillment of psychological and social needs
Douglas McGregor	Theory X and Y	Encouraging participative leadership (Theory Y)
Chris Argyris	Maturity-Immaturity Theory	Need for employee growth and involvement
Rensis Likert	Participative Management Systems	Supportive management improves productivity
Mary Parker Follett	Integration and Conflict Resolution	Collaboration and empowerment in the workplace

📌 Note

While Human Relations Theory and Behavioural Approach Theory are two similar yet different theories, in the context of the Examination, we will consider them one and the same.
Students are advised to use them interchangeable during the UGC NET exam.
A short description is given below about the differences between the two.

Aspect	Human Relations Theory	Behavioural Approach
Focus	Primarily on improving employee morale and social interactions in the workplace.	Broader focus on understanding human behaviour in organizations, including motivation, leadership, and emotional factors.
Main Idea	Workers are motivated by social needs, and improving social relationships boosts productivity.	Human behaviour is influenced by psychological, social, and emotional needs; management needs to understand these for better organizational outcomes.
Origins	Originated from the Hawthorne Studies, particularly focusing on the social aspects of work.	Originated from the broader field of behavioural science, incorporating multiple aspects of human behaviour.
Key Influences	Emphasis on communication, group dynamics, and employee well-being.	Draws from psychology, sociology, anthropology, and motivational theories like Maslow and Herzberg.
Focus of Improvement	Employee satisfaction, group interactions, and social context of work.	Improving motivation, leadership, and understanding behaviour in both individual and group contexts.
Scope	More narrow—focused on social needs and group dynamics.	More comprehensive—examines individual needs, psychological motivation, and organizational behaviour.