Introduction
The Human Relations Theory of organization came in to existence in 1930s as a reaction to the classical approach to organizational analysis. This is because the classical theorists neglected the human factor in the organization. The Classical theorists took a mechanical view of organization and underemphasized the sociopsychological aspects of individual’s behaviour in organization. It is this critical failure of the classical theory that gave birth to the human relations approach. Human relations theory is also known by various names like Humanistic Theory, Neoclassical Theory, etc. Elton Mayo, an American Sociologist is the founder of the Human Relations Theory. The other writers who contributed to the growth of this theory are William Dickson, North Whitehead, W. Lloyd, and L. J. Henderson, among many others. The Hawthorne Experiment (1924-1932) conducted in the Western Electric Company at Hawthorne near Chicago by the Harvard Business School under the leadership of Elton Mayo formed the basis for the rise of the Human Relations Theory of Organization.
Features
Human Relations Theory has three elements or features. They are, the Individual, the Informal Organization, and Participative Management. * The Individual: The Theory recognizes the importance of emotions and perceptions of individuals. It holds the view that the level of workers’ production and organizational output is determined by the human relations at work and not so much by the physical and economic conditions of work. * Informal Organizations: The Human Relations Theory emphasizes the informal organizations. According to Hicks and Gullet, “ The informal shadow organization that exists within the structure of the formal organization is emphasized. Attention is focused on the social aspects of man whose overriding need is seen as a desire to belong, to be accepted by and stand well in his work group.” * Participative Management: Human Relations