Human relations approach to Management
A "relational strategy of organizing" is more commonly called the "human relations approach" or "human relations school" of management by organizational theorists. This human relations approach can be seen as being almost entirely antithetical to the principles of classical management theory. Where classical management focused on the rationalization of work routines, human relations approaches stressed the accommodation of work routines and individual emotional and relational needs as a means of increasing productivity. Scientific management remained concerned tithe the efficiency and productivity of workmen at the shop floor. Fayol’s functional approach to management aimed at improving the managerial activities and performance at top level in the organization. Between 1925, opinion of many experts was directed towards the human element or aspect of the organization. They drew their attention from “work” emphasis to “worker” emphasis. It was clearly felt that earlier approaches to management were incomplete and insufficient in that there was little recognition of the importance of workers as human beings, their attitudes, feelings, needs and requirements. In fact, the technical approach to work methods in scientific management did not produce durable and desirable results in all cases. Individual and group relationships in the work place often prevented maximum benefits to be derived from planning and standardization of work or monetary rewards offered for efficiency. Elton Mayo is the founder of this theory.
- Decentralization - The strict notion of hierarchy employed by classical management theorists is replaced with the idea that individual workers and functional areas (i.e., departments) should be given greater autonomy and decision-making power. This requires greater emphasis on lateral communication so that coordination of efforts and resources can occur. This communication occurs via informal communication channels rather than the formal, hierarchical ones.
- Participatory Decision Making - Decision making is participatory in the sense that those making decisions on a day-to-day basis include line workers not normally considered to be "management." The greater autonomy afforded individual employees and the subsequent reduction in "height" and increase in span of control of the organizational structure requires that they have the knowledge and ability to make their own decisions and the communication skill to coordinate their efforts with others without a nearby supervisor.
- Concern for Developing Self-Motivated Employees - The emphasis on a system of decentralized and autonomous decision-making by members of the organization requires that those members be highly "self-motivated" (that is, able to set their own task-related goals and monitor their own performance in achieving them). So, one goal of managers in such an organization is to design and implement organizational structures that reward such self-motivation and autonomy. Another is to negotiate working relationships with subordinates that foster effective communication in both directions.
Hawthorne Experiments
Human Relations Concepts or Findings of Hawthorne Studies
- Physical environment at work place (i.e., working conditions) do not have any material effect on the efficiency of work.
- Social or human relationship influenced productivity more directly than changes in working conditions.
- Favorable attitudes of workers and work-teams towards their work were more important factors determining efficiency.
- Fulfillment of workers social and psychological needs have a beneficial effect on the morale and efficiency of workers.
- Employee groups formed on the basis of social interactions and common interest exercised a strong influence on workers, performance. In other words, informal organization controlled the norms established by the groups in respect of each member’s output.
- Workers cannot be motivated solely by economic reward. More important motivators are job security, recognition by superiors and freedom to take initiative and to express their individual opinions as matters of their own concern.