Human Relations Theory And Organization Theories

Organisational theory explains the structure of the company. This theory is the study of the relationships between the people working in an organisation and the overall effect of their performances on the organisation. Organisational theories helps an organisation to increase its productivity and growth considering various factors. The relationship between the parties can also be understood but understanding the organisational theories.

Out of many theories of organisation the one is Human Relations theory which deals with the relationship between the persons working in an organisation and also the relationships between the organisation with third party who are not employees. All the theories in an organisations have different agenda which either helps a company directly or indirectly. The combination of various theories helps company to influence people working in the organisation which further helps a company grow.

Organisational theory includes study of the environment and its people. By observing and researching it helps an organisation to develop a generalise way in which an organisation is interacting. The main reason for applying organisational theory in an organisation is that it helps in describing management style and structure of the company. There are many theories which can be studies and applied by an organisation. They are: the classical or traditional theory, the human relations or Neo classical theory, the decision making theory and the system approach.

Human Relations Theory

An organisational theory which mainly aims at reaching satisfactions of the workers, making an informal workplace, means by which the productivity of employees can be influenced is termed as Human Relations Theory. This theory emphasis on the individual's importance. This theory helps an organisation to make the employees realise that they are important for the organisation. This will help increase the productivity of all the employees and also will help an organisation to grow. This theory also focuses on creating an informal environment at workplace to influence their productivity level and performances.

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Human Relations Theory mainly deals with the relationships between management and employees, employees and employees and also the relationship between human resource of an organisation and the third party such as: suppliers, clients, etc. Human resource is considered as the most import asset of the company. Healthy relations at the organisations leads to increase in the productivity of an organisation and also its efficiency.

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There are many importance of the Human Relations Theory in an organisation as it is very important to have healthy relations at workplace. They are:

• Performance and Productivity: An employee's performance and the productivity is partly dependent on the relations which they have with the management and other employees of the company. Interest of the management in the well- being of the employees influence the productivity of the employees. It gives employees motivation to work in a focused way. Positive environment around the employee motivates them to work which directly increases the productivity. This increment in the productivity will further help company to grow.
• Job satisfaction:This theory provides with the job satisfaction to the employees when they have good relationship with the management and other employees. If the relationship of an employee is not good then this affects the performance and the employee do not feel satisfied with his job. Communication and good understanding between all the people working in an organisation results in higher productivity and increased performance.
• Reduction in Disputes:It is important to have healthy relations with the management and human resource to have less disputes. Good communication and better understanding between the people at organisations influence productivity, but misunderstandings between the employees or management affects the productivity of an organisation adversely. Disputes create negativity which creates an atmosphere not suitable for work. It gets difficult for people to work efficiently and the productivity of the company is also affected.
• Increased employee participation:An employees morale boosts up if there exist healthy relationship between all the employees and the management. Participation of an employee is increased by involving them in group discussions and by asking employees for their suggestions while making important decisions for the organisation.

Innovation: Employees having good relations with other employees and the management engage in discussions. This results in exchange of various innovative ideas and information between the employees of the company and the management. This type of environment in an organisation motivates employees as they come up with various innovative ideas which help organisations to face the competition effectively in the market.

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