The Other types of Organisation or human relations Theory of Organisation

In the early 20th century, the Human Relations Theory of organization provided a new perspective on how to manage and motivate people, moving from a mechanical and efficiency-focused approach to a more humanistic and socially-oriented paradigm. It was most notably developed via the Hawthorne Studies, an initiative involving a series of trials at the Western Electric Company’s Hawthorne Works in Chicago between 1924 and 1932.

Key Principles:

One of the basic focus of the theory is Social Needs and Group Dynamics: The theory states that employees are not only an economic entity driven by financial motivation, but they also have social needs and social complexities. These interactions play an important role in facilitating group dynamics and improving the overall psychological well-being of employees in the workplace.

Identification of the Key Factors The Hawthorne Studies identified several key factors that can affect employee performance at work, including:

Employee Satisfaction and Productivity: The Hawthorne Studies revealed that employee satisfaction and morale significantly impact productivity. We perform better when we feel appreciated and supported by our employeers. This discovery challenged the then-prevailing Taylorist ethos that productivity was best optimized through tight control and standardization.

Collaboration and Involvement: Organizational success relies heavily upon collaboration and involvement of employees in decision-making processes. According to the theory, managers must open communication channels and include employees in decisions and discussions that influence their work.

Leadership and Management: The work atmosphere is greatly influenced by leadership.

Impact:

The Human Relations Theory has a long-lasting influence in the field of management, paving the way for more participatory and employee-focused management styles. It has shaped the fields of human resource management, industrial psychology, and organizational behavior, stressing the need for an integrated method in managing organizations that takes into account the social and psychological dimensions of work.

In conclusion, the Human Relations Theory of organization emphasizes the importance of human behavior, social relations, and the psychological well-being in improving organizational efficacy.