Although the Human Relations sector used to be considered almost irrelevant in companies, people started understanding how a successful HR sector can improve the results through the management of people and other social resources. Understanding these processes and applying them in real time can lead to companies prospering or a lack of understanding can lead to complete failure.
The human relations theory was developed during the 1930s
and aimed at understanding how psychological and social processes impact
performance. The theory suggests that management should treat workers as
individuals, with individual needs. In doing so, employees are supposed to gain
an identity, stability within their job and job satisfaction which will result
in increased productivity
