Human Relations Theory: According to Hawthorne studies conducted in 1920s, I will define human relations management theory as a motivation theory which aims to raise employees moral, performance and productivity. As stated by the study, “This and other early studies suggested that workers’ needs for achievement, recognition, and social interaction could affect their productivity.”
Theory X and Theory Y: These theories define how managers perceive their subordinates (employees) and how it affects motivation and behaviors. According to Douglas McGregor, managers with theory X perception supervise their workers closely while managers with Y theory perception allow their employees more freedom to make decisions, focus on developing workers’ skills, and encourage participation.