human relations theory
An approach to management based on the idea that employees are motivated not only by financial reward but also by a range of social factors (e.g. praise, a sense of belonging, feelings of achievement and pride in one's work). The theory, which developed from empirical studies carried out in the 1920s and 1930s (see Hawthorne studies), holds that attitudes, relationships, and leadership styles play a key role in the performance of an organization. See motivation; self-actualization.