Human Relations vs. Human Resources

Discuss the differences between the human relations and human resource approaches to management. Pay particular attention to how they approach the issue of worker participation. 


The foundation of the human relations approach began in the 1920s-1930s when Mary Parker Follett, Elton Mayo, and Chester Barnard started examining the employee-manager relationship in a completely new way (Eisenberg, Goodall Jr., Tretheway 82). Their work became the precursor of contemporary thinking about management and leadership. “Human relations thinking emphasized the interpersonal and social needs of individual and marked a clean break from earlier points of view” (Eisenberg, Goodall Jr., Tretheway 82).

The human relations approach starts with the assumption that “all people want to feel united, tied, bound to something, some cause, bigger than they, commanding them yet worthy of them, summoning them to significance in living” (Eisenberg, Goodall Jr., Tretheway 82). The key to the human relations approach is to persuade individuals to accept a common purpose, from which all else would follow. The role of management is largely communicative and persuasive. (Eisenberg, Goodall Jr., Tretheway 82). Effective managers thus strive to communicate in ways that encourage workers to identify with the organization. Management is seen as more interpersonal than economic.

In the human relations approach to management, workers are offered incentives, and they are given positive reinforcement. Under the human relations approach, workers are studied to discover what their maximum potential is. This concept is called the Hawthorne effect. When workers are given increased attention, it raises productivity (Eisenberg, Goodall Jr., Tretheway 85). Simple things such as changing the room color, or the intensity of the lights in a room can increase worker productivity.

The human relations approach identifies many important issues but falls short of truly valuing employee perceptions, worldview, and voice (Eisenberg, Goodall Jr., Tretheway 87) The human resources approach is concerned with the total organizational climate as well as with how an organization can encourage employee participation and dialogue. Three theorists were behind the original human resources movement: Abraham Maslow, Douglas McGregor, and Rensis Likert.

“According to Abraham Maslow’s hierarchy of needs people’s basic needs for food, shelter, and belonging must be satisfied before they can move toward achieving their full human potential” (Eisenberg, Goodall Jr., Tretheway 87). Conditions that foster individual health are often good for the prosperity of an organization. Under the human resources approach, management sets up social conditions in the organization so that the goals of the individual merge with those of the organization (Eisenberg, Goodall Jr., Tretheway 87). If designed correctly, “the workplace becomes a site where individuals can realize their full potential and remain continually motivated to do so” (Eisenberg, Goodall Jr., Tretheway 87).

Douglas McGregor came up with Theory Y which “builds on the best of the human relations approach to offer a fundamentally different view of employees and of their relationship with management” (Eisenberg, Goodall Jr., Tretheway 90). When employees are given more responsibility and given the ability for autonomy, they are going to perform better. “The Theory Y manager has a more participative and facilitative management style that treats employees as valued human resources” (Eisenberg, Goodall Jr., Tretheway 90). The most important part of management is to arrange things so people can accomplish their own goals by accomplishing the goals of the organization.

The third theorist Rensis Likert came up with the principle of supportive relationships. “All interactions within an organization should support individual self-worth and importance, with emphasis on the supportive relationships within work groups and open communication among them” (Eisenberg, Goodall Jr., Tretheway 90).

Another aspect to human resources is performance management: “any system that tracks and gives feedback to employees about how well they are accomplishing objectives tied to each of their key dimensions” (Eisenberg, Goodall Jr., Tretheway 312).Managers establish project teams in which people come together to create a project. Human resources approach to management works on team building throughout a company.

Human relations and human resource approaches to managements are additions to the workplace. Employees are given a high value in the company and their needs and wants are taken into consideration. Overall both approaches provide a more pleasant atmosphere for employees.