State and explain human relations theory in management.

 Human Relations Theory

Concept of Human Relations Theory

As the name suggests, the human relations theory puts human beings at its center. Its development began in the early 1920's during the industrial revolution when productivity was the main focus of organizations. Professor Elton Mayo and his associates began the experiments to prove the importance of people than the machines for productivity. He is often known as the father of the human relations movement. The experiment was conducted in the Hawthorne plants of the Western Electricals in the spring of 1927 in Chicago, USA.

1. Illumination experiments: The illumination experiments began in 1924 and continued for three years. They were conducted to measure the effects of lighting on productivity of the workers. It consisted of a series of studies of test groups in which the levels of illumination varied but the hner) conditions were held constant. These experiments revealed that productivity could be increased not only by improving the working new environment, but also through informal social relations among the members of the working group.

2. Relay assembly test room experiment: Relay assembly test room experiments were designed to determine the effect of changes in job conditions on group productivity. In these experiments, a small homogeneous working group of five girls was constituted. Several new elements were introduced in the working environment such as shorter working hours, proper rest periods, improved physical conditions, friendly supervision, and free social interaction among the group members.

During the period of the experiment, productivity and morale increased. The researchers concluded that workers' output increased as a response to attention, feeling of being important, cohesive work group and non directive supervision. They were influenced by the need for recognition, security and a sense of belongingness.

3. Mass interviewing program: The researchers initiated a three year long interviewing program with more than 21,000 employees to find out the reasons for an increase in production. The questions were related to supervision, insurance plans, promotion, and salaries. The results of the interviewing program recognized the importance of informal groups for the first time. It was discovered that workers behavior was influenced by group behavior.

4. Bank wiring observation room experiment: In this experiment, a group of 14 male workers was formed into a small work group. The workers were involved in attaching wire with switches for certain equipment used in telephone exchanges in the bank wiring room. The workers were placed under observation for six months. The workers' pay was dependant on the performance of the group as a whole. It was thought that the efficient workers would put pressure on the less efficient workers to complete the work. Contrary to this, it was found that the group established its own standards of output, and social pressure was used to achieve the standards of output.

Contributions/Advantages of Human Relations  Theory 

The following are some of the notable contributions of the human relations theory.

• The human relation theory highlighted the importance of social and psychological factors for workers' productivity and job satisfaction, not only good physical working conditions. 

•  The informal relations among workers influence the workers' behavior and performance more than the formal relations in the organization.

• Employees will perform better if they are allowed to participate in decision-making affecting their interests. 

• When employees are treated with respect and dignity, their performance will improve. Financial incentives alone cannot increase the performance.

•  Social and psychological needs must also be satisfied in productivity.

• Good communication between the superiors and subordinates can improve the relations and the productivity of the subordinates.

• Special attention and freedom to exp workers' views to improve their express performance.

Limitations/Disadvantages of Human Relations Theory 

The following are some of the major limitations of the human relation theory.

•  The Hawthorne experiments were conducted under controlled situations. Hence, the findings may not be applicable in real organizational situations.

•  They have given too much importance to human aspects of productivity improvement. However, productivity also depends on technological and other factors.

•  The Hawthorne experiments have placed much emphasis decision-making. In many situations, organizations make individual decisions.