Human relations model of management

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The Human Relations Model of Management

The human relations model of management was created during the industrial revolution in the 1920s and is still applicable in today's economic climate (Mayo, 2014). Until Professor Elton started conducting his tests to show the importance of people for productivity and not the machines, productivity was the main emphasis of the company at that time. According to the hypothesis, people yearn to be a supportive team that has a positive impact on the organization's growth and development. When staff members are given special consideration and encouraged to participate, they regard their work as vital and are encouraged to be more productive, which results in high-quality work (Mayo, 2014).

Industry Related to Human Relations Theory

Automotive industry relates to human relations theory in that there is an interaction between people and machines throughout the procedures involved in the process (Lin et al, 2013). The auto industry comprises of companies and workers who manufacture and deliver cars, trucks and other types of vehicles to businesses that are tasked with selling. Enterprises in the automotive industry fall into one or two segments such as vehicle manufacturers and spare parts manufacturers. Contemporary cars are more complex and involve much more parts such as electronics when compared to the past years (Lin et al, 2013).

An Organizational Structure that is Optimal

An organizational structure that is optimal can improve the alignment of the business objectives and priorities as well as reducing the total cost of ownership for the learning and development. Learning and development exist to deliver value to the firm. Companies must have well-developed learning programs that properly align with the strategies and outcomes. Similarly, organizational structure must not simply include organizational chart but also a connection between business strategy, goals and execution (Lin et al, 2013).

Enhancing Industry Performance

Expansion of leadership positions through constantly working to improve a good cost structure assists in industry performance (Lin et al, 2013). It is apparent that some market leaders achieve reasonable profit margin but fail to fully exploit their potential. Such companies are referred to as happy underperformers. Similarly, companies are often confronted with drastic changes in the conditions of the market. In capital intensive sectors, structural market weaknesses will quickly lead to the loss in revenues dwindling of profits (Lin et al, 2013). In such a situation, the industry must optimize operational business under time constraints. Emerging markets both locally and globally have dampened the prospects of the automotive industry. Therefore, the industry is working towards new technologies and concepts to transform the industry with ideas such as a connected car that is fully digitalized (Lin et al, 2013).

Impact of Shifting Business Mindset

A good example of how a shift in business mindset is likely to affect the performance level of a particular organization is by embracing e-business systems (Ajayi, 2015). It because more consumers are turning and embracing the ease in which products are purchased online. Therefore, companies involved in e-commerce are experiencing drastic growth in revenues. Amazon is a practical example of a company that has mastered the e-business concept by offering products to customers quickly as well as predicting the purchasing habits of the customers (Ajayi, 2015). Various industries have also invested in intellectual capital through collaborating with other potential partners that are like-minded to ensure they give the best to the customers in the midst of system dynamics that is speeding up transformation.

Redesigning an Existing Organization to have High-performance

The industry chosen deals with a range of activities and different professionals are involved across the globe (Ajayi, 2015). The organization provides clients with programs and manufacturing techniques in a variety of business lines such as transportation and federal and state governments. However, the team is lacking marketing professionals that are assigned evenly across the globe. It is a big challenge since not all the products produced by the company are not able to reach potential customers in all corners of the world (Ajayi, 2015).

To enable the marketing strategy to be effective, the organization needs to embrace e-business which is the new ready available infrastructure that can cut cost through replacing the physical structures such as warehouses and deliver reasonable returns for the company. Besides, capitalizing on new technologies that are environmentally friendly will change the customers' perception of the organization because most of the potential customers currently have become environmentally sensitive. They will go for a product that does not pollute their environment since they are aware of the damages that the industry has brought to the world when it comes to pollution (Ajayi, 2015).


It is apparent that an organization cannot be complete without human effort and skills that are used to guide the machines to accomplish various tasks (Mayo, 2014). Therefore, it is important for organizational leadership to note the importance of human relations theory as a way to encourage the workers to give their best in the work place. An organization can shift the business mindset or enhance performance only if there are a conducive environment and excellent relations between the staff and the leaders of the team. The business must, therefore, give much attention to the workers because they facilitate all the other processes such as e-business, teamwork, and communication since they have the intellectual capital and capacity to do so.


Ajayi, S. O. (2015). Transforming HR to a Strategic Business Partner: Meaning, Required Competencies; Mindset; Challenges and Prospects.

Lin, R. J., Tan, K. H., & Geng, Y. (2013). Market demand, green product innovation, and firm performance: evidence from Vietnam motorcycle industry. Journal of Cleaner Production, 40, 101-107.

Mayo, E. (2014). The social problems of an industrial civilisation. Routledge.

February 01, 2023

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