II.

ORGANIZATIONALTHEORIESANDHUMAN RESO
URCES

2.4THEHUMANRELATIONSMOVEMENT:
DEFINITIONANDSIGNIFICANCETO
ORGANIZATIONALBEHAVIOR

P R E PA R E D B Y :
N O R M A L L O V I T M A G D AT O E D D
BICOLUNIVERSITY
C O L L E G E O F E D U C AT I O N

Organizational theory is the sociological study of formal

social organizations, such as businesses and bureaucracies,
and their interrelationship with the environment in which
they operate.
➢the study of the structure, functioning and performance of
organization and the behavior of individual and groups
within it.

THEORIES….
1. Classical or Traditional Theory
2. Human Relations or Neo-Classical
Theory 3. Decision-Making Theory
4. Systems Approach
5. Weber’s Ideal of Bureaucracy
6. Modern Theory
THEORIES…
7. Hawthorne Study
8. Contingency Theory
9. Motivation Theory
10. Decision Theory
11. Scientific Management
Theory 12. Administrative
Theory.

NEOCLASSICAL THEORY
Neoclassical Approach was first set out by Alfred Marshall
in his boom principles of economics, published in 1890’s.
George Elton Mayo is considered as founder of Neoclassical
theory.
Neo means new.
Classical refers to the work done by group of economists in
the 18th and 19th century.

HUMAN RELATION
 MOVEMENT/THEORY
Proposed by Elton Mayo
➢His focus is on the people working in an organization
➢Human relation development contributed to:
employee-centric, democratic, participative style of leadership is more
efficient.
➢emerged after the Hawthorne experiment at Western Electric Plant during
1920. Behavioral scientists were seriously taking initiative in the work
related problems such as – fatigue, disliking routine work, principles of
doing a single segment of a particular work by the workers in factories etc.
• In short, Hawthorne experiment of Elton Mayo did arouse new
hopes and opened avenues in management principles like Role of
 leadership, Job satisfaction, Job rotation, Job enrichment, Work
motivation etc.

• The above principles of management made a significant shift from

economic incentive motivation to the understanding of ‘Human
factor’ at work. It is not the monetary incentive or any privilege
that makes an individual work. The real factor motivating a person
to work is the recognition of the management that the employee is
a human being.
• Henry A. Landsberger defined the Hawthorne effect as a
 short-term improvement in performance caused by
observing workers.
➢a term referring to the tendency of some people to work
harder and perform better when they are participants in an
experiment.
➢ is often used to suggest that individuals may change their
behavior due to the attention they are receiving from
researchers rather than because of any manipulation of
independent variables.
The effect was first described in the 1950s by
researcher Henry A. Landsberger during his analysis
of experiments conducted during the 1920s and
1930s.
➢ named after the location where the experiments
took place, Western Electric’s Hawthorne Works
electric company just outside of Hawthorne,
Illinois.
 The Hawthorne effect
The social concern for workers was one of the significant
findings of the Hawthorne studies. Another was the Hawthorn Effect
which states that changes in employee behavior happen when
management decides to monitor them.
In the real sense, when someone is watching you while you are
working on a task, then you may even be more focused and perform a
lot better. You will also change your behavior too. So going back to the
previous Hawthorne lighting studies, you can understand why the
productivity of employees improved when the lighting was increased
and decreased is apparent. But a very significant discovery from the
Hawthorne study is the fact that when employees are treated well,
they may turn out to be more productivity for the said organization.
➢Behavioral system can also be called as mature version of
human relation theory.
➢This theory is how the managers should behave to
motivate the employees and encourage them to perform at
high levels and be committed to the achievement of
organizational goals.

ELEMENTS OF NEOCLASSICAL THEORY •

Individual
• Work group
• Participative Management
• Orientation
• Motivation
• Leadership
• Employee development
INDIVIDUAL
• Neo classical Theory recognized individual differences
which were ignored by the classical theory. • Every
individual has emotions, feelings, attitudes, hopes,
aspirations, and expectations

•A
individual in a group develops Social wants. •As he is
social being, he develops a desire to belong and to
be accepted by his work group.
PARTICIPATIVE MANAGEMENT

• Participative management: neo-classical theory

suggested workers participation in management for
improving their productivity.
ORIENTATION
• Orientation
• Classical theory was job oriented while neo-classical
theory is employee oriented.
•There is a shift in managerial style from product
oriented approach to employee and group centered
approach.
MOTIVATION
•Neo-classical writers considered business
organization as a social system;
•The employees could be motivated by social and
psychological wants and not solely by economic
incentives.
LEADERSHIP

•Democratic style of leadership is essential to

 develop co-operative attitude of employee towards
management.
REFERENCES

• https://www.economicsdiscussion.net/organisational-structure/organizational-theories/31783
• https://www.verywellmind.com/what-is-the-hawthorne-effect-2795234 •
https://www.managementstudyhq.com/elton-mayo-theories.html

• https://www.toolshero.com/management/human-relations-theory-elton-mayo/