Human Relations Theory

In the United States between 1881 and 1905, there were 37,000 strikes involving 7 million workers in a total workforce of 29 million

When and Where

Tragedies such as the Ludlow massacre in 1915 and the 1911 Triangle Shirtwaist Factory fire in New York City raised public consciousness about labor conditions.

When and Where

In both the United States and Europe, the decades of the late 19th and early 20th centuries, Highly authoritarian and coercive working conditions had led to increasing unrest amongst workers and a considerable rise in organized action against factory owners

Hawthorne Studies commence: a series of experiments conducted from 1924 to 1933 at the Western Electric Hawthorne plant in Cicero, Illinois

(Mumby, 82

Through the Hawthorne experiments, researchers attempted to investigate the importance of a variety of physical, economic, and social variables in terms of their effects on employee behavior and attitudes

Discovery of the informal work group

Through four different experiments, key observations were made

Progress

Development of Human Relations Management Theory

Importance of informal communication

Mary Parker Follett makes contributions

Douglas McGregor and Rensis Likert further develop the theory

HRMT addressed workplace control by paying attention to the attitudes, feelings, and relational concerns employees brought to their work

Human Relations Management Theory shifted focus to the psychological and social aspects of work

Human Relations Theory is an approach to management that combats unfavorable conditions for the worker

Basic Tenets

This method is usually framed as a genuine effort to motivate workers by reorganizing their value to the company

(Mumby)

informal or formal social group within workplaces such as team effort, social conformity and group loyalty determines individual and group behaviors

the needs, such as belonging, inclusiveness and recognition, determine workers’ morale more than physical conditions of work environments

Underlying Assumptions of Human Relation Management Theory

Underlying

Assumptions

people develop affinity for one another in the group that comprises individuals with various affinities

employees are motivated by social and psychological needs coupled with economic incentives

(Omodan, et al.)

Employees saw work as the place where they took care of their lower-level needs (physiological and safety) but not as the place where their higher-order needs (love/belonging, esteem, self-actualization) were satisfied; these were reserved for life with friends and loved ones. HRM, then, represents an attempt to tap into these higher-order needs and make work relevant to the achievement of human potential

How it Works

(Mumby, 97)

Hawthorne Studies results

• The HRM theory recognizes that a happy worker is a productive worker. Which, is an important aspect to understand, for better organizational management.

Conducted: 1924-1933

Group cohesion leads to a more productive workforce

Informal communication leads to greater worker satisfaction

• One of the many goals of the HRM theory is to create a supportive environment that enables employees to realize their potential. This allows for better organizational management because of the healthy environment and happy employees.

The Hawthorne Effect suggests a happy worker is a productive worker

Reasons HRM is an effective approach to organizational management

Furthered and inspired Leadership research

Showed the importance of systems in the workforce

• This theory is a genuine effort to motivate workers by recognizing their value to the organization.

Qualitative Methods

Psychological focus lead to solutions in industrial conflict