Rational Goal Model

Human Relations Model

The human relations model, which Elton Mayo (1880–1949) popularized in the second quarter of the twentieth century, stresses the importance of the managerial internal flexibility that results from the exercise of facilitator and mentor role responsibilities in order to improve human relations at work and enhance extraorganizational stakeholder responsiveness. Stakeholder responsiveness is achieved by showing managerial consideration for employees' psychosocial needs to belong, fostering informal group collaboration, and providing recognition at work as well as promoting managerial social responsibility and humane community building in society (Mayo 1933). Mayo's research at the Hawthorne Works demonstrated that management consideration, employee group affiliation, and special recognition motivated can increase productivity.

Peter Drucker (b. 1909), although critical of Mayo's perceived psychological manipulation of employee loyalty, promotes the value of the socially responsible use of managerial power and humane community building. He argues that in a global knowledge society managerial power can and should be applied to the nonprofit sector because that appears to be the primary sector that is focusing on creating socially responsible citizens and giving knowledge workers a sphere in which they can make a positive difference and re-create meaningful communities.

The strength of this model is that it accounts for managers' showing consideration and facilitating supportive interaction with intraorganizational and extraorganizational stakeholders. The exclusive and extreme emphasis on the human relations model, however, creates the risk of slowing production at work and abdicating decision-making authority in society.