In today’s corporate world, businesses not only compete for larger market shares, rising sales

and amazing advertising campaigns, but also in terms of efficient management and skilled
labour. People are not being treated as inputs who will generate economic benefits due to a
modern style of management. The Human Relations theory, developed by Professor Elton
Mayo, showed the importance of people for productivity in business. The researches carried
out by Elton was called The Hawthorne studies and still considered as a major progress in
administrative theory.

Excellent human relations at the workplace make businesses work. Open communication
gateways are established to foster inter-personal communication and relations and for better
functioning of the organization. A horizontal style of management is being adopted to
discourage and autocratic structure and encourage workers to communicate their ideas and give
feedback to top management. Hence even lower management is included in decision-making.
This reflects to the Bank Wiring Experiment carried out by Elton in 1931 where A group of
workers who had inter-related work were given the job of solder, fix the terminals and finish
the wiring. The group had set informal production rules, which were strengthened by peer
pressure and an unofficial group leader. It showed that informal aspects of management are
equally important as formal aspects.

Another experiment call the Illumination Experiment was carried out. Two groups of female
workers were put in different rooms and were given the same task. Levels of lighting were
varied for one room, while lights for the other room remained unchanged, acting as a control.
Standard temperature and humidity were maintained in both rooms. Both groups showed same
level of productivity. Other factors affected the level of output. But, these days, the needs of
people are catered for so that they produce constructive and quality work. A comfortable
workplace and atmosphere are established for workers to work at ease and increase motivation
and creativity. Health and safety assurance are given to employees. Employees of Google enjoy
free meals, employee trips, financial bonuses and open- presentation by high-level executives.

The performance management procedure is conducted by the human resources department to

monitor performance of workers. Encouragements, recognitions, and promotions are given on
quality performance. Counselling, further training and follow-up programmes are discussed in
case of poor delivery. Employees are encouraged to bring out the best of their skills and polish
them. Based on the Hawthorne effect, it was believed that people will be more productive when
appreciated. In 1928 the Mass Interview programme to obtain point of views and attitudes
towards working life, 21,126 workers were interviewed. The importance of friendly
relationship, social and psychological needs and their effects on the behavior of workers was
studied.

New components such as shorter working hours, proper rest periods, improved environmental
conditions, unauthoritative supervision, free social interaction among per groups were
introduced in another experiment called The Relay Assembly Test Room experiment. The aim
was to observe effects of several alterations in working conditions on workers’ output and
morale. Similarly, modern any organisations adopt the 40-hour week movement to regulate the
length of a working day. This prevents over-worked staff. With a stable and friendly work
culture, rate of absenteeism and labour turnover is reduced. Greater productivity, efficiency
and competitiveness is achieved with employees who are satisfied with their jobs and who are
motivated to work towards corporate goals and show commitment towards the organization.
For example employees of the U.S federal government engage in work sharing programs where
specialized professionals form a partnership to fulfil one job.

However, Mayo’s human relations theory was criticised because the theory was not supported
scientifically and lacked economic edge. Role of unions in a free society was underrated and
was not considered in the theory. The focus was on inter-personal relations rather than nature
of work. Little attention was given to formal relationships. Effects of conflicts and internal
friction between workers was ignored. Results from experiments were not enough to provide
generalisation.

The Hawthorne studies concluded that an organization is a social system where non-economic
recompenses and penalties influence workers’ behavior, morale and performance. Physical,
psychological, inter-personal relations and attitude of seniors impact on the latter. Workers
naturally tend to form peer groups and follow their values. Division of labour based on
specialization is not always efficient and effective. Inter-personal relations should be
recognised and understood by managers.

In Mayo’s words, “an organization is a social system, a system of cliques, grapevines, informal
status systems, rituals and a minute of logical, non-logical and illogical behavior.”
[https://www.cleverism.com/management-theory-of-elton-mayo/]
References:
https://www.ukessays.com/essays/business/hawthorne-contribution-to-
organisational-management-business-essay.php (published on 05 Dec 2016)

www.business.com/articles/human-relations-management-theory-basics/ [BY
GAIL L. PERRY, 03 OCT 2017]

www.yourarticlelibrary.com/management/elton-mayos-human-relations-
approach-to-management/70014 [by Priyali Sharma]

https://polticsmania.wordpress.com/2016/10/06/human-relations-theory-elton-
mayo/ [06 Oct 2016]

https://www.entrepreneur.com/article/249174 [by Sujan Patel, 06 Aug 2015]

https://www.fastcompany.com/3058344/5-flexible-work-strategies-and-the-
companies-who-use-them [by Ann Diab, 30 March 2016]

https://tutor2u.net/business/reference/motivation-taylor-scientific-management