HUMAN RELATIONS THEORY.

The human relations theory of organisation came into existence in 1930s as a reaction
to the classical approach to organisational analysis and also known as Humanistic
theory, Socio – Economic theory and Neo – classical theory.
Elton mayo is regarded as the ‘father of human relations theory’ and described by
D.S. Pugh as a ‘behavioural scientist’ long before. He concentrated on the study of
worker’s behaviour and the production capacity, taking into consideration
physiological, physical, economic, social and psychological aspects and called this
approach as ‘clinical method’. His major works are The Human Problems of an
Industrial Civilization (1933), The Social Problems of an Industrial Civilization
(1945) and The Political Problems of an Industrial Civilization (1947). His 1st work
was THE FIRST ENQUIRY in 1923 near Philadelphia.
The writers who contributed to the growth of this theory includes F.J. Roethlisberger,
William J. Dickson, T. North Whitehead, W. Lloyd, E. Warner and L.J. Henderson.
The classical thinkers (Taylor, Fayol, Luther Gulick, Urwick and Max weber) stressed
formal organizational structure and neglected human element.

HAWTHRONE STUDIES. (Explained in the Management and the worker by

Roethlisberger in 1939)
The basis for the rise of human relations theory and shook the foundations of classical
approach. The studies were in 4 phases as:
Illumination Experiment (1924 – 27) – determining the levels of illumination, relay
Assembly Test Room Experiment (1927) – observe the changes in conditions of
worker - output and morale,
Mass Interviewing Program (1928 – 31) – to explore employee’s feelings by
ventilation therapy,
Bank Wiring Experiment (1931 – 32) – to analyse norms that controls member’s
output by worker’s social group (informal organization).
THE CONCLUSIONS:
The organisation is a social system and thus workers are social animals and not inert
and isolated.
The social and psychological factors at the workplace and not the physical conditions
of work determine the employees’s output.
Non - economic rewards and sanctions affect the worker’s behaviour.
Division of labour on specialization is not mandatory.
The production norms and behavioural patterns are set by the small social groups by
workers (informal organisation) and they react to management only through this and
not as individuals.
Leadership, style of supervision, communication and participation play a central role
in worker’s behaviour, satisfaction and productivity.

3 ELEMENTS:
1. THE INDIVIDUAL.
 The theory gives importance to individual’s emotions and perceptions (i.e), the human
relations at work determine the organisational output and worker production.
2. INFORMAL ORGANISATION (determines the organisational efficiency).
Distinction.
Informal Formal
customary enacted
Unwritten Written, manualized and portrayed.
Emotional and personal Rational and impersonal
Spontaneous and societal Planned and legal
This group sets the norms as seen in bank wiring experiment (1931 – 32)
a) One is rate – buster, if turned out too much work.
b) One is chiseler, if turned out too little work.
c) One is squealer, if tell to supervisor anything that will react to detriment
associate.
d) One should not attempt to maintain social distance or act officious.
Authors spells:
A. Mayo – 1st man’s social situation than work.
B. L.D. White – set of work relationships that grow out of mutual interactions
of persons over a long time.
C. David Ricardo – rabble hypothesis.
D. Roethlisberger – human problems to be solved with non – human tools in
terms of non – human data.
3. PARTICIPATIVE MANAGEMENT.
Means participation of worker in decision – making with regard to their work
conditions. The merits are: develops sense of participation, results higher
productivity, discuss with supervisors and influence decision, makes pleasant work
environment, restricts alienation of workers from management and facilitates
acceptance of organisational goals by workers.

CLASSICAL V. HUMAN RELATIONS.

The human relations does not totally dismiss classical theory rather filled the lacuna
and added to it. But rejected 2 concepts viz, the concept of economic man and formal
institutionalisation. As rightly observed by Mohit Bhattacharya, they differed from the
tradionalists in their basic approach to the organisation which they characterised as a
social system consisting of individuals, informal groups and inter – group
relationships in addition to the formal structure.

CRITICAL EVALUATION / CRITICISMS:

Evolution of administrative thought basis – Hawthorne studies and human relations theory.
Hawthorne effect – workers react positively and give their best when they know that they are
being observed. (artificial experiment which hided natural instincts)
Loren Baritz – human relationists as pro – management and anti – union.
The united auto worker’s criticised as – cow sociologists.
Peter. F. Drucker – this neglected the nature of work and only focussed on interpersonal
relations.
Bendics and fisher said – mayo failed to define sharply the ethical pre – suppositions of his
scientific work.
Alex carey - lacked scientific base and unreliable small sample of 5 or 6 girls to generalise.