The human relations approach

Whereas the classical approach focuses largely on structure and on the formal organization, the huan rlation approach tomanagement emphasizes the importances of people in the work stuation and the influences of social and psychological factors in shaping organizational behavior. Human relation theorist have primally been concerned wth issues such as individual motivationa keadership, communications and group dynamincs and have stressed the significance of the informal pattern of relationship which exist ithin the formal structure. The factors influencing human behavior have accordingly been portrayed as a ey to achieving greater organizational effevtiveness, thus elevating the ‘management of people’ to a prime position in the determinations of managerial strategies.

The early work in this field is associated with Elton Mayo (1880-1949) and with the famous Hawthorne Experiments , conducted at the Western Elctric Company (USA) between 1924 and 1932. What these experiments basically showed was that individuals at work were members of informal to explaining individual behavior. Later work by writers such as Maslow, McGregor, Argyris, Likert, and Hertzberg, continued to0 stress the importance of the human factor in determining organizational effectiveness, but tended to adopt a more psychological orientation, as exemplified bu Maslow’s ‘hierarchy of needs’ and McGregor’sTheory X and Theory Y’, Maslows central basic physiological requirement (e.g. food, sleep, sex) through safety, love and esteem, to self-actualissation (i.e. self-fulfilment); progressing systematically up the hierarchy as each lower level need is satisfied. To McGregor  individuals at work were seen by management as either inherently lazy (Theory X) or commited to the organisatiosn objectives and often actively seeking responsibility (Theory Y). these perception consequently provided the basis for different styles of management, which ranged from the coercive to the supportive.

McGregr’s concern with management syle is reflecte  in later studies, including Ouichi’s national of “Theory Z”. according to Ouichi ne of the key factors in the success of Japanese manufacturing industries awas their approach to the management of people. Theory Z organizations were those which offered long-term (often lifetime) employment, a share in decision-making, opportunities for training, development and promotions, and a number of other advantages which gave them a positive orientations towards the organizations. For Ouichi, the key to organizational effeveness lay in the development of Japanese-style. Theory Z environment, adapted to western requirements.