Established by Elton Mayo and associates during a study in 1933, recognizes the importance of human interaction and that social factors are significant in achieving goals organizational. The research demonstrated that technical rationality, such as procedures, processes and structures, was not sufficient to ensure maximum productivity. They concluded that social factors were as important, if not more important, than technical factors. They based their findings on the observation that productivity appeared to be linked to worker morale and a sense of social responsibility towards colleagues (Hutchison 2011). The theory suggests that the nature and quality of the company's leaders are an important factor in the performance and job satisfaction of their subordinates (Glisson 1989). The theory implies that managers while in control must be able to maintain the cooperation of their employees. In this type of leadership style, employees would be encouraged to share opinions and ideas. Staff would feel involved in the decision-making process and creativity would be rewarded. The leader would be flexible, open to communication and respectful of the new
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