Human Relations Theory emphasizes the importance of social factors in the workplace, suggesting that employee satisfaction and motivation are crucial for productivity. Developed in the 1930s by Elton Mayo, this theory arose from the famous Hawthorne Studies, which highlighted how social interactions and group dynamics influence worker performance. The theory posits that understanding human behavior and fostering positive relationships among employees can lead to improved morale and efficiency. By prioritizing communication and collaboration, organizations can create a more supportive environment that enhances overall performance and job satisfaction.