The method propounded by the Classical theory treated worker as an isolated individual and made them compete amongst themselves for perks and incentives. This feeling of competition and individualism often resulted in reduced output.
Introduction of human relations approach scientifically proved that a worker is not happy being an isolated individual but he likes to be a part of an informal group for appreciation and recognition. HRT gives him a chance to be socially identifiable.
This freedom of being a part of a group allows him to have informal and friendly relations with fellow group members. This informal group relation removes the tendency of competition among group members and makes them more cooperative.
So human relation approach works in the basis of group wage system. This system of informal group in addition to removing competition among group members encourages group performance and when if any member for any reason is not present they do not allow the work to suffer.
HRT does this without compromising the efficiency and profitability of the organization and it becomes a win situation for everyone with some exceptions.
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