| Classical Theory | Human Relations Theory |
| Gives importance to Formal organization structure | Gives importance to Informal organization and individual worker dynamics |
| It emphasizes the physical environment of work. | It emphasizes the social environment of work. |
| It lays more emphasis on the mechanical and operational aspects of the organization. | It focuses on the social and psychological aspects of the organization. |
| Workers seen as cogs in a machine and Economic men | Workers seen as social beings forming informal groups |
| Motivation: Economic rewards and physical conditions | Motivation : Social-psychological factors and sanctions |
| Supervision : Authoritarian Style | Supervision: Democratic and participative |
| It considers the structure of organization based on principles as the basis of work efficiency. | It considers employee satisfaction and human relations as the basis of organizational efficiency. |
| It emphasizes facts (Rationality) | It emphasizes values (Non-rationality) |
| Supporter : Max Weber, Henri Fayol | Supporter: Elton Mayo, Mary Parker Follett |
