Behavioral management theory emerged when employee behavior and motivation was ignored at the time of classical theory. In any organization, relationship is termed as an important set of areas that should be handled with care in order to make every single organization an effective one. Expectations, conflicts, motivations, level of productivity and group behavior are important areas that should be handled carefully.

Behavior is an important area that surely affects the working of an organization. After the Hawthorne studies, Harvard researchers, F.J Roethlisbergers & Mayo evaluate the behavior of five women in a bank who were allowed to leave the workplace without any permission, who can enjoy free lunches and can enjoy many other benefits too. Because of this experiment, Roethlisberger & Mayo concluded that by all this, the rate of productivity increases. When employees working in any organization do enjoys free lunches or any other activities while rest of the employees do not, then conflicts do arises and thus change in the behavior emerges out. This is not healthy for any organization because if behavior of employees changes, then it will surely affect the working of an organization.

Behavioral management theories do revolve around Abraham Maslow theory. The hierarchy depicts five major areas:

1. Physiological Needs
2. Safety Needs
3. Belonging & Love Needs
4. Esteem Needs
5. Self Actualization Needs

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