The behavioural theory of management emphasizes understanding the various factors that affect human behavior in organizations. The Hawthorne studies conducted by Elton Mayo at Western Electric found that social and psychological factors, rather than just physical work conditions, influenced productivity. The studies showed that informal social groups within the workplace were important, and non-financial incentives could be more motivating than financial incentives alone. The human relations approach focused on how management interacts with workers and improving social and morale factors.