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This theory mainly focused on the human relations and attributed organizations success to: 1)Organizational goals. 2)Satisfaction of human needs In this theory, the focus shifted from workplace conditions to human side of the organization. It recognizes that employees behavior is not affected by job conditions alone. The two main theories of this school are: Human Relations Theory Behavioural Science Theory

This theory finds the impact of Management does not do it, it gets others to do it. It mainly refers to the ways in which managers interact with their subordinates.  ELTON MAYO(1880-1949) Regarded as the father of Human Relations Approach. Conducted a series of experiments at the Hawthrone Plant of the Western Electric Company at Chicago between 1927 and 1932. The Hawthrone studies are divided into three groups: 1)Test Room Studies 2)Interviewing Studies 3)Bank Wiring Observation Studies

The Test Room Studies had two important experiments: a) Illumination Experiment This experiment was conducted to establish relationship between output and illumination. The output tended to increase every time as the intensity of light was improved but the output again showed an upward trend when the illumination was brought down gradually from the normal level. Thus, it was found that there is no consistent relationship between output and illumination.
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b) Relay Assembly Test Room Experiment In this a small group of six girls was asked to work in a test room. Several new elements were introduced in the work atmosphere of this group. These included shorter working hours, rest pauses, improved physical conditions, friendly and informal supervision etc. Morale and productivity were maintained even if improvements in working conditions were maintained. The researchers concluded that socio-psychological factors such as feeling of being important ,recognition , attention, participation and non directive supervision held the key for higher productivity

Interviewing Studies Thousands of workers were interviewed to get information about their superiors, jobs and jobs conditions. Responses revealed if employees were allowed to represent their views and problems openly to managers,their morale and productivity went up.The importance of social factors was once again validated through this interview

Bank Wiring Observation Studies A group of 14 workers was selected to attach wire switches for some equipment that was used in telephone exchange. No changes were made in their working conditions as were made in earlier experiments. However, existence of informal cliques in the group and informal production norms were observed by the researchers.

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There is no direct relationship between worker productivity and physical factors. Their productivity increased because they received attention from researchers. Worker is not a rational man motivated only by financial incentives but a social man with strong desire for interaction and non financial incentives. Informal groups are as important as formal groups in influencing the human behaviour Work is considered as a group activity and not as operations performed by individual workers.

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Workers work like one family in the organization. Human and social factors lead to growth and development of human resource. Non financial incentives(morale,security,recognition,praise) are more important than financial incentives in determining the attitude of workers towards their superiors and job related tasks. Production norms are set by social norms and not by official structures.

Focused on organisations efficiency through satisfaction of social and psychological needs of the workers more than other needs. Workers are part of group where informal rather than formal communication and leadership are more effective. Managers can get better results by changing their management style;participative approach is better than authoritative approach. Financial incentives are not always as rewarding as non financial incentives in affecting the human behaviour.

The human relations theory lacked scientific vision to the study of human behaviour. Eg: Maslow, Mc Gregor, Blake , Dalton Features of this theory are as under: 1) Emphasizes on participative and group decision making rather than individual decision making. 2) Emphasizes on self direction and self control rather than control by top managers. 3) Suggests positive measures to improve the performance of sub standard workers rather than taking negative actions against them. 4) Introduces the concept of complex man over social man. According to this theory, human behaviour is need based and therefore people react differently in different situations.
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Scientifically contributed to understanding of the human element. Human nature is not predictable. It is not guided by the same motivational forces. This theory asserts that since people do not react to same situation in the same way, general principles of management cannot always be applied to organisations.

Human Relations Approach 1. Laid emphasis on individual, his needs and behaviour. 2.Focussed on inter personal relationships. 3. Based only on Hawthorne experiments so its scope is limited 4. Pioneered by Elton Mayo and his associates

Behavioural Sciences Approach 1. This school stressed upon group and group behaviour 2. Focused on group 3. It refined the Human Relations Approach and has a wider scope 4. It is based on the work of authors like Maslow, Mc Gregor, Davis, Blake etc.