HUMAN RELATION APPROACH

THEORY
 - The Human Relation Approach concentrates on
acknowledging and supporting each employee to encourage
growth and fulfillment as well as healthy bottom line. The
objectives of this method are designed to yield higher morale
enthusiasm creativity and good health.

- Mayo’s ideas were a milestone and turning point in Human

Relation Approach of Management. He recognized the
importance of human beings are complex and influential input
into organizational performance. The social and psychological
needs of human beings cannot be ignored if management wants
to enhance productivity.
THE IMPORTANCE OF HUMAN
RELATION APPROACH
1. Organization is a Social System
- The organization is a Social System lays down roles of
individuals and establishes norms that may differ from those of the
formal organization. The workers follow social norms determined
by their co-workers, which define the proper amount of work, rather
than try to achieve the targets that management thinks they can
achieve.

2. Existence of Informal Group

- The informal groups also exist within the framework of the
formal organization, and it affects the formal organization
3. Influence of Group Behavior
- At the workplace, the workers often do not act to react as
individuals, but as members of groups. The group play an
important role in determining the attitudes and performance of
individual workers.

4. Emergence of Informal Leadership

- There is an emergence of informal leadership as against
formal leadership and that sets and enforces group norms. It helps
the workers to function as a social group, and the formal leader is
rendered ineffective unless they confirms to the norms of the group
of which they are supposed to be in charge.

5. Two-way Communication
- Two-way communication (upward and downward) is
necessary to know the sentiments of employees in the organization.
6. Influence of Psychological Factors
- The human is diversely motivated, and socio-psychological
factors (non-monetary rewards) act as important motivators.

7. Integration of Organizational and Individual Goals

- There is always conflict between organizational and
individual goals. For smooth functioning of the organization, it is
necessary to achieved the integration between the goals of
organization and those of individual.

8. Relate Work and the Organizational Structure to the Social

Needs
- Believes that it is necessary to relate to work and the
organization will obtain their full cooperation and effort and
increase its efficiency.
ELEMENTS OF HUMAN
RELATION APPROACH
1. Individual
- it recognizes importance of individual emotions and perceptions.
According to this theory, each person bring his own set of attitudes and
skills to the job. The workers production depends upon the human
relation at the work and not the physical or the economic conditions.

2. Informal Organization
- It recognizes the existence and influence of informal organization.
It is a set of work relationship that grow out of the mutual interaction of
persons working together over a long period of time.

3. Participative Management
- Human Relation theory advocate participation of workers in
decision making with regard to their working conditions.
NEOCLASSICAL THEORIES
 The X and Y Theory of Management
- of Douglas McGregor

- ideas suggest that there are two fundamental

approaches to managing people. Many managers tend
towards Theory X, and generally get poor results.
Enlightened managers use Theory Y, which produces
better performance and results, and allows people to grow
and develop.
Theory X - 'Authoritarian Management' Style
- The average person dislikes work and will avoid it if he/she can.
- Therefore most people must be forced with the threat of punishment to work towards
organizational objectives.
- The average person prefers to be directed; to avoid responsibility; is relatively
unambitious, and wants security above all else.

What are the characteristics of a Theory X manager? Typically some, most or all
of these:
 Intolerant

 Issues deadlines and ultimatums

 Short temper

 Shouts

 Issues instructions, directions, edicts

 Issues threats to make people follow instructions

 Demands, never asks

 Poor listener

 Anti-social

 Does not invite or welcome suggestions

 Unhappy
Theory Y - 'Participative Management' Style
- Effort in work is as natural as work and play.
- People will apply self-control and self-direction in the pursuit
of organizational objectives, without external control or the threat
of punishment.
- Commitment to objectives is a function of rewards associated
with their achievement.
- People usually accept and often seek responsibility.

• In result. Theory remains a valid basic principle from

which to develop positive management style and
techniques. McGregor's XY Theory remains central to
organizational development, and to improving
organizational culture.
 The Hierarchy of Needs Theory
- of Abraham Maslow
 Maslow (1943, 1954) stated that people are motivated to achieve certain
needs and that some needs take precedence over others.

 Our most basic need is for physical survival, and this will be the first thing
that motivates our behaviour. Once that level is fulfilled the next level up
is what motivates us, and so on.

 Maslow's hierarchy of needs is a motivational theory in psychology

comprising a five-tier model of human needs, often depicted as
hierarchical levels within a pyramid.

 Looks at the relationship between internal needs and the resulting effort
expended to fulfill them.
 Needs lower down in the hierarchy must be satisfied before individuals
can attend to needs higher up.
1. Physiological Needs - these are biological requirements for human survival, ( e.g. air,
food, drink, shelter, clothing, warmth, sleep)
- If these needs are not satisfied the human body cannot function optimally. Maslow
considered physiological needs the most important as all the other needs become
secondary until these needs are met.

2. Safety Needs - protection from elements, ( security, order, law, stability, freedom from
fear)

3. Love and Belongingness Needs - the third level of human needs is social and
involves feelings of belongingness. The need for interpersonal relationships motivates
behaviour
- Examples include friendship, intimacy, trust, and acceptance, receiving and giving
affection and love. Affiliating, being part of a group (family, friends, work).

4. Esteem Needs - which Maslow classified into two categories: (1) esteem for oneself
(dignity, achievement, mastery, independence) and (2) the desire for reputation or respect
from others (e.g., status, prestige).
- Maslow indicated that the need for respect or reputation is most important for
children and adolescents and precedes real self-esteem or dignity.

5. Self-actualization Needs - realizing personal potential, self-fulfillment, seeking

personal growth and peak experiences.
 Expectancy Theory of Motivation
- of Victor Vroom

- Vroom's expectancy theory assumes that behavior results from

conscious choices among alternatives whose purpose it is to
maximize pleasure and to minimize pain.

- Vroom realized that an employee's performance is based on

individual factors such as personality, skills, knowledge, experience
and abilities.

- He stated that effort, performance and motivation are linked in

a person's motivation.
 Expectancy
- is the belief that increased effort will lead to increased performance i.e. if I work harder
then this will be better. This is affected by such things as:

 Having the right resources available (e.g. raw materials, time)

 Having the right skills to do the job

 Having the necessary support to get the job done (e.g. supervisor support, or correct
information on the job)

 Instrumentality
- is the belief that if you perform well that a valued outcome will be received. The degree to
which a first level outcome will lead to the second level outcome. i.e. if I do a good job, there
is something in it for me. This is affected by such things as:
 Clear understanding of the relationship between performance and outcomes - e.g. the rules of

the reward 'game'

 Trust in the people who will take the decisions on who gets what outcome

 Transparency of the process that decides who gets what outcome

 Valence
- is the importance that the individual places upon the expected outcome. For the valence to
be positive, the person must prefer attaining the outcome to not attaining it. For example, if
someone is mainly motivated by money, he or she might not value offers of additional time off.
 Expectancy theory predicts that employees in an organization will
be motivated when they believe that:

- Putting in more effort will yield better job performance.

- Better job performance will lead to organizational rewards,
such as an increase in salary or benefits.

 The implication of Vroom's expectancy theory is that people

change their level of effort according to the value they place on
the bonus they receive from the process and on their perception
of the strength of the links between effort and outcome.
 The Two Factor Theory or The Motivator-
Hygiene Theory
- of Frederick Herzberg

- Frederick Herzberg developed the model in 1959. He did this by

interviewing over 200 professionals. The interviews delved into when
the interviewees were at their most and least happiest with their jobs.

- Herzberg’s Motivation Theory model, or Two Factor Theory,

argues that there are two factors that an organization can adjust to
influence motivation in the workplace.

These factors are:

1. Motivators: Which can encourage employees to work harder.

2. Hygiene factors: These won’t encourage employees to work harder

but they will cause them to become unmotivated if they are not
present.
1. Motivating Factors
- The presence of motivators causes employees to work harder. They
are found within the actual job itself.

Motivating factors include:

 Achievement: A job must give an employee a sense of achievement. This will
provide a proud feeling of having done something difficult but worthwhile.
 Recognition: A job must provide an employee with praise and recognition of their
successes. This recognition should come from both their superiors and their peers.
 The work itself: The job itself must be interesting, varied, and provide enough of a
challenge to keep employees motivated.
 Responsibility: Employees should “own” their work. They should hold themselves
responsible for this completion and not feel as though they are being micromanaged .
 Advancement: Promotion opportunities should exist for the employee.
 Growth: The job should give employees the opportunity to learn new skills. This
can happen either on the job or through more formal training.
 Hygiene factors include:
 Company policies: These should be fair and clear to every employee. They must
also be equivalent to those of competitors.
 Supervision: Supervision must be fair and appropriate. The employee should be
given as much autonomy as is reasonable.
 Relationships: There should be no tolerance for bullying or cliques. A healthy,
amiable, and appropriate relationship should exist between peers, superiors, and
subordinates.
 Work conditions: Equipment and the working environment should be safe, fit for
purpose, and hygienic.
 Salary: The pay structure should be fair and reasonable. It should also be
competitive with other organizations in the same industry.
 Status: The organization should maintain the status of all employees within the
organization. Performing meaningful work can provide a sense of status.
 Security: It is important that employees feel that their job is secure and they are not
under the constant threat of being laid-off.
1. High Hygiene and High Motivation
- This is the ideal situation and the one which every manager should strive
for. Here, all employees are motivated and have very few grievances.

2. High Hygiene and Low Motivation

- In this situation, employees have few grievances but they are not highly
motivated. An example of this situation is where pay and working conditions
are competitive but the work isn’t very interesting. Employees are simply there
to collect their salary.

3. Low Hygiene and High Motivation

- In this situation, employees are highly motivated but they have a lot of
grievances. A typical example of this situation is where the work is exciting and
really interesting but the pay and conditions are behind competitors in the same
industry.

4. Low Hygiene and Low Motivation

- This is obviously a bad situation for an organization or team to find itself
in. Here, employees aren’t motivated and the hygiene factors are not up to
scratch.
Some common criticisms of Herzberg’s Motivation
Theory:
 The theory only applies to white collar workers.
 It doesn’t take an individuals situation or perception into
consideration. We have attempted to address this above by applying
the theory at an individual level.
 The theory focuses on improving employee satisfaction. That
doesn’t necessarily translate into increased productivity.
 There is no objective way to measure employee satisfaction within
the theory.
 Two Factor Theory is subject to bias. For example, when an
employee is satisfied they will give themselves credit for that
satisfaction. Conversely, when they are dissatisfied they will blame
external factors.
 The Human Relation Management Theory
- of Elton Mayo

- The human relations management theory is a researched belief

that people desire to be part of a supportive team that facilitates
development and growth.

- Therefore, if employees receive special attention and are

encouraged to participate, they perceive their work has significance,
and they are motivated to be more productive, resulting in high
quality work.
THE HAWTHORNE EXPERIMENT
 Hawthorne plant of the Western Electric Company from 1924 to
1932.

 National Research Council of the National Academy of Sciences

along with George Pennock, supervisor of the company, and his
associates.

 To know and understand the factors affecting efficiency and

productivity of workers.
1. The Illumination Experiment
 Concerned with the Physical Factor
 Conducted to find out how varying levels of amount of light at the
workplace affects productivity.
 The experiment was divided into two groups, the first group was
exposed to varying illumination while the other group were remain
constant.
 As a result, when the illumination is high, the productivity increases,
and when the illumination is low, the productivity still increases; the
productivity only decreases when the illumination became dim. Thus,
when the illumination remained constant, still the productivity
increased.
 The illumination did not have any effect on productivity. It means no
physical factors affecting productivity.
2. Relay Assembly Test Room Experiment
 to determine the effect of changes in various job conditions on
productivity.
 A group of 6 women were selected to work in a assembly of
telephone relays. The experiment started various changes on such rest
and other benefits. The duration ranged from 4-6 weeks.
 When various changes was introduced, absenteeism decreased,
morale increased and less supervision was required.
 Then, the researcher decided to revert back to original position, which
has no rest and benefits but productivity increased further instead of
going down.
 It was concluded that productivity increased not because of positive
changes in physical factors but because of a change in the girls
attitude towards work and their work group.
3. Mass Interviewing Programme
 To study the human behavior in the company by determining employees attitudes
towards company, supervision, insurance plans, promotion and wages.

 First interviewing system conducted which is Direct Interviewing wherein the

employees were given limited answers to the given question such saying either
yes or no and they notice that the employees where not able to give their proper
feedback or attitude and ending up to poor result on experiment.
 They’ve change it to Non-Directed Interviewing wherein the employees given the
privilege to answer freely and the interviewer was asked to listen instead of
talking, arguing or advising.
 In result, the interview program gave valuable insights about human behavior in
the company like ‘social demand of the workers are influenced by social
experience and approach in groups both inside and outside the work plant’.
 The activity improved the productivity of the employees.
 One should not ignore the human aspect of organization
4. Bank Wiring Room Experiment
 To analyze the functioning of small group and its impact on individual
behavior.
 The hypothesis was that in order to earn more, workers would produce
more.
 But workers, decided the target for themselves lower than the company
target.
 The study suggested that informal relationships are an factor in
determining the human behavior.
 The employees targeted to lower their productivity rather than high
productivity because of the following reasons:
- Fear of unemployment.
- Fear of raising standard
- Protection of slower workers
- Satisfaction on the part of management
 In brief, the significance of Mayo studies lies in discovering
the informal organizations to encourage spontaneous
cooperation and realization of human factor in work situations
so as to achieve the objectives of the undertaking without any
difficulty.
IMPORTANCE OF HUMAN
RELATIONS IN THE WORKPLACE
CRITICISMS ON HUMAN
RELATION APPROACH
1. It lacks scientific validity.

2. Behavior of the workers during the experiments was not

natural. It was actually the Hawthorne effects which
give their best when observed.

3. It is pro-management and anti-union.

4. It gave little attention the formal relation while putting

emphasis on the informal relations.

5. This theory is not aware of the economic dimension and

neglected the nature of work.
6. It could not explore the multi-dimensional phenomenon of
human motivation.

7. Marxist says that it is new technique to exploit workers as it de-

emphasized economic factors.

8. It is over concerned with happiness.

9. It does not recognize the conflict as a creative force.

10. It ignored the environmental factors of workers attitudes.