Thehuman relations approach to managementdeveloped in the 1930s and 1940s as a reaction against earlier mechanistic approaches such as Taylorism and bureaucracy. It emphasises that employees are not just motivated by money and rules, but also bysocial needs, relationships, and recognition. The approach highlights the importance of communication, teamwork, leadership style, and employee well-being in achieving organisational success.
The foundation of this school came from theHawthorne Studies(Elton Mayo), which showed that productivity improved not just because of physical conditions, but because workers felt valued and observed. This demonstrated the importance of social factors such as morale, group belonging, and management attention.
Key principles of the human relations approach include:
Focus on people rather than just processes– recognising employees as individuals with social and emotional needs.
Motivation through recognition and belonging– linking to theories such as Maslow’s hierarchy of needs and Herzberg’s motivators.
Leadership style matters– supportive, participative leadership fosters engagement, unlike autocratic control.
Team dynamics are critical– informal groups, communication patterns, and cooperation influence productivity.
Job satisfaction drives performance– happy, respected employees are more productive and loyal.
Advantagesof the human relations approach include higher employee engagement, improved morale, stronger teamwork, and reduced turnover. It recognises employees as assets rather than costs.
Disadvantagesinclude the risk of overemphasising relationships at the expense of efficiency or results, and the possibility of managers manipulating employees through “false concern.” It can also be less effective in highly standardised, rule-bound environments where compliance is critical.
In procurement, the human relations approach may be applied by creating strong team cohesion, involving staff in decision-making, recognising contributions, and offering development opportunities. For example, involving buyers in supplier strategy discussions and giving recognition for successful negotiations can boost morale and performance.
In conclusion, the human relations approach recognises that people are motivated by social and psychological needs, not just financial incentives. It highlights the importance of communication, leadership, and teamwork in driving performance. While it should be balanced with attention to efficiency, it remains highly relevant for modern managers in creating motivated and productive teams.