Making the most of human relations management theory means focusing on the human aspect of business, and how to utilize humans as a valuable resource. Without people, your business would not exist, so consider restructuring your organization with a focus on employee relations. Spend the time and money to invest in developing employees and see higher productivity and more success within your organization.

Your time and investment supports the human relations theory of management paradigm which summarizes as: people who feel good about their work seek development and growth, so the individual and the organization benefits. Developing an environment that fosters employee valuation shows trust, respect and support for your employees. When utilizing human relations management, consider the following:

1. Begin following theories of human relations and rid yourself of the hierarchy within your organization.

2. Realize the value of all employees' experience and knowledge using human relations in business.

3. Empower employees to develop motivation using the motivational theory.

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Teach lateral communication skills to emphasize human relations in management

Human relation theorists believe a formal hierarchy leaves you unable to utilize all of your resources, so lose the hierarchy and incorporate lateral communication. Lateral communication puts everyone on the same level and encourages employees to problem-solve and coordinate decisions with their team. The freedom to make suggestions and communicate with everyone leads to autonomy and improved decision-making abilities.

I recommend: Graphic.org provides a visual of a simple hierarchy design, and you may notice how your business hierarchy is similar. In contrast, BNET CBS Interactive provides a definition and explanation of how lateral communication works in the business environment of today.

Discover the problem-solving abilities of your staff through human relations theories

The human resources theory is an umbrella for the human relations management theories, because both value employee experience and knowledge to improve the organization. More than likely, human resources personnel teach and model how employees can participate in decision-making activities. This participation lets employees utilize their knowledge practically to make decisions and improve their communication skills.

I recommend: For more information about participatory decision-making, see People & Planet and Community At Work.

Learn and utilize the motivational theory

Self-motivated employees develop through a decentralized system that encourages them to make autonomous decisions. Implement the structures within your organization that empower employees to negotiate working relationships and effective communication, and these changes result in employees who feel valued and respected. In turn, this leads to a self-motivated desire to achieve and produce.

I recommend: For an overview of the motivational theory see EdPsyc Interactive. At Trimitra Consultants, you find an interesting article about employees and different types of motivation.

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Helpful advice for making the most of this Guide

• •  Using human relations theories means changing the organizational structure and relationships within your business to improve productivity.

The human relations school of management has been around for quite some time, enjoying fairly wide acceptance. And while, even today not every company or manager embraces this management model, there's little doubt that it has changed overall management practice for the better.

Often referred to as motivational theory, human relations management theory views the employee differently than the more autocratic management theories of the past. Based on Douglas McGregor's X and Y Theories, HR management theory (Theory Y), assumes that people want to work, that they're responsible and self-motivated, that they want to succeed and that they understand their own position in the company hierarchy. This is the exact opposite of Theory X, which presumes that employees are lazy and unmotivated, that they seek nothing more from their jobs than security and that they require discipline from without. In short, human relations theory, rather than viewing the worker as merely one more cog in the company wheel, asserts that the organization will prosper as it helps the employee prosper. According to human relations management theory, some positive management actions that lead to employee motivation and improved performance are these:

1. Treating employees as if work is as natural as play or rest, just as motivational theory states

2. Sharing the big-picture objectives toward which their work is aimed

3. Empowering them to innovate and make as many independent decisions as they can handle

4. Training and developing them, increasing freedom and responsibility as their capabilities grow

5. Providing appropriate recognition and rewards when they achieve company goals

6. Using any other helpful theories of human relations that will keep them motivated toward excellence

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Learn all you can about human relations in business as it relates to human resource theory

Various types of courses are available in the different areas of employee management theory. Some are offered online and some at numerous seminar locations, some may be brought to your site and still others are combinations of the above methods which are known as blended learning.

I recommend: The AMA (American Management Association) offers numerous on-location Management and Supervisory Skills seminars. The organization also offers self-study courses in Managerial Skills. Blended learning is a third option that AMA offers to help you find the human relations management program that works best for you. ACCEL Team also provides an online Supervisor's Guide to Employee Motivation, which leads you step-by-step through the various practical applications of the best theories of human relations in business.

Acquire the HR tools and resources necessary to develop, empower and reward employees

When it comes to human resources, theory isn't enough. And though your positive attitude and supportive management style will be important, you'll also benefit from a few tools and other resources that have been designed to make your job easier.

I recommend: AMA offers a helpful e-newsletter which guides managers in employee training and development. OnlineOrganizing.com provides a helpful Delegation Checklist that makes it easier for you to effectively delegate tasks, while motivating and empowering employees and increasing their level of accountability at the same time. RewardsNation software can also simplify the rewards process through automation, making employee accomplishments easier to track.

Seek guidance as you incorporate human relations management theory into your company's program

The personal touch of a consultant, coach, or trainer can go a long way toward helping you put the human relations theory of management to work at your business.

I recommend: Liebowitz & Associates offers consulting and leadership training services in management and other areas. They also have programs customized for family-owned businesses (FOBs). The Winning Edge offers life and business coaching, helping you integrate the two spheres and fulfill your desire to implement human resources theory as part of your business strategy. Mike Stewart, of Sales Dynamics, also offers management training and executive coaching, along with other types of training for sales teams.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  As you implement your new HR management theory and begin testing the tools and resources you've chosen to make your job easier, always remember that your key human relations asset is you. Whatever other support methods you use, ultimately it will be your own supportive interaction with your employees that will make the greatest difference.

The human relations theory of management began development in the early 1920's during the industrial revolution. At that time, productivity was the focus of business. Professor Elton Mayo began his experiments (the Hawthorne Studies), to prove the importance of people for productivity - not machines.

The human relations management theory is a researched belief that people desire to be part of a supportive team that facilitates development and growth. Therefore, if employees receive special attention and are encouraged to participate, they perceive their work has significance, and they are motivated to be more productive, resulting in high quality work. The following human relations management theory basics became evident during human relation studies:

1. Individual attention and recognition aligns with the human relations theory.

2. Many theorists supported the motivational theory.

3. Studies supported the importance of human relations in business.

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Understand the human relations theory of management

The results of Professor Elton Mayo's Hawthorne studies proved that the factor most influencing productivity are relationships. The researchers realized productivity increased due to relationships and being part of a supportive group where each employee's work had a significant effect on the team output. As a side result, the researchers noticed that the increased attention the workers received by the researchers increased motivation and productivity, which resulted in what is the Hawthorne Effect.

I recommend: For more details regarding the Hawthorne Experiments and the Hawthorne Effect see the personal website of R. Kannan and InformaWorld.

Know how the motivational theory fits with human relations in management

After the Hawthorne experiments, Abraham Maslow and Douglas McGregor revealed how the motivational theory ties in with theories of human relations. Maslow suggested five basic needs (physiological, safety, love, esteem and self-actualization) were motivating factors when viewing an employee's work values, because the employee is motivated to ensure the most important of these individual needs are met. McGregor supported motivation beliefs by realizing that employees contribute more to the organization if they feel responsible and valued.

I recommend: More information and an explanation of Maslow's motivational theory is available at Envision Software, and NetMBA.com offers a compact version of McGregor's theories and results.

Use the bottom line results of human relations management theories

The result of the studies regarding human relations in the workplace show that people want to have a sense of belonging and significance while being treated with value and respect. Treat an employee with respect and value, and their individual productivity and quality increases to support the organizational team.

I recommend: For an overview of human relations theories, see CliffsNotes. To see how human relations theories are a base for management today, see Lots of Essays.com.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Remember, human relations falls under the umbrella of human resources; therefore, the human resources theory is different from the human relations management theory.

Human relations management theories were created based on the Hawthorne studies conducted by Professor Elton Mayo. The Hawthorne Effect is the increased motivation and productivity found in employees when placed in a team or group setting. The human relations movement was propelled by the Hawthorne studies. Many theorists such as McGregor, Herzberg, Vroom and others have developed their own employee motivation beliefs and concepts. The varied hypothesis consist of behavioral models that state the most efficient, effective and inspiring means of inciting self motivation and high performance from employees.

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Hawthorne studies

The Hawthorne studies were conducted from 1927 until 1932 by Professor Elton Mayo at the Western Electric Hawthorne Works in Chicago. Professor Mayo examined work conditions and productivity. The conclusion of the research led to the discovery that relationships largely influenced productivity. Being part of a group or team affected the performance of each employee. The researchers dubbed the increased motivation and productivity The Hawthorne Effect.

I recommend: Accel-Team covers the variables, feedback conditions and results of the Hawthorne studies.

Human relations movement

The human relations movement originated from Dr. Elton Mayo's Hawthorne studies. The movement stated that personal development and growth as well as employee goal setting are essential to effective businesses. The movement also emphasized the fact that affirmative motivation derived from team goals and greater production resulted from encouragement and positive reinforcement from employers.

I recommend: Encyclopedia.com gives an overview of the human relations movement.

Theory X and Theory Y

Theory X and Theory Y were proposed by Douglas McGregor in his 1960 book, The Human Side of Enterprise. The two theories are opposing methods by which supervisors perceive employee motivation. Theory X states that people dislike work and need the constant threat of job loss and financial incentives to work hard. These workers are irresponsible and need to be controlled. Theory Y states that people are self-motivated, responsible, creative and need to work. Theory Y has been adopted by more progressive management intellects that follow Elton Mayo's human relations approach.

I recommend: Envision Software explains Douglas McGregor's X and Y theories.

Hierarchy of needs

According to Maslow, McGregor's Theory Y did not completely work because it ignored the need individuals had for Theory X. Maslow used his hierarchy of needs theory to explain human motivation. The five levels of needs according to Maslow are physiological needs, safety needs, needs of belonging, esteem needs and self-actualization needs. Maslow believed that people cannot fulfill the higher needs of esteem and self actualization without fulfilling the basic physiological and safety needs of an individual first.

I recommend: Management-Models.com discusses Abraham Maslow's hierarchy of needs theory and its relation to the human relations management theory.

Expectancy theory of motivation

Victor Vroom developed the expectancy theory of motivation. It is based on outcomes. Vroom surmises that effort, performance and motivation must be linked. He proposes three variables, valence, expectancy and instrumentality. Expectancy is the thought process that increased effort will lead to better performance. Instrumentality is the belief that you will be rewarded for hard work, and valence is the significance an individual places on an outcome. Vroom's theory is based on perceptions of equity or fairness in the workplace.

I recommend: Goliath reviews Victor Vroom's human relations and motivational expectancy theory.

Two factor hygiene and motivational theory

Frederick Herzberg stated that hygiene factors such as quality of management, safety, status, relationships, company, working conditions and company policies are necessary to keep employees satisfied. Motivational factors like advancement, achievement, recognition, job interest and responsibility are needed in order to motivate employees to a higher performance level.

I recommend: 12Manage reviews Herzberg's two factor theory.