Human Relations Human Relations

and and

Interpersonal skillInterpersonal skill

People have varieties of needs irrespective of one’s People have varieties of needs irrespective of one’s status, age, achievementsstatus, age, achievements

In order to fulfill their needs they have learnt to organize In order to fulfill their needs they have learnt to organize themselves into group. themselves into group.

Similarly organization has many objectives to achieve.Similarly organization has many objectives to achieve.

To maximize profit To maximize profit Quality product and serviceQuality product and service Compete with other industriesCompete with other industries Ensure employees’ welfareEnsure employees’ welfare Efficient use of resources Efficient use of resources

Lets look at various angles to Human Relations. Lets look at various angles to Human Relations.

• It deals with the interaction of people in a work situation that helps to generate team spirit.

• It explains behavior of individuals in the working system.

• It sets effective group working to satisfy both organizational goals and personal needs.

• It makes people work together effectively.

Historical Development of Human Relations Historical Development of Human Relations and Organizational Behavior. and Organizational Behavior.

Prior to Industrial revolution, people worked in small groups and had simple work relationship.

They were however subjected to unhealthy working condition, and scarcity of resource, so that they hardly had any job satisfaction.

During early industrial revolution; no sign of improvement, but gradually led to job satisfaction and improvement.

A. Scientific management movement:A. Scientific management movement: (1900s) – (1900s) – (Frederick W. Taylor)(Frederick W. Taylor)

Tried to bring about;Tried to bring about;

* improvement in working condition,* improvement in working condition,

* enhancing productivity, * enhancing productivity,

* sound mgmt practices, * sound mgmt practices,

* division of labor,* division of labor,

* worker training,* worker training,

* different piece rate system.* different piece rate system.

(First attempt to improve working condition)

B. Research Studies: B. Research Studies:

* (1920s and 30s) many industrial experiment done. * (1920s and 30s) many industrial experiment done.

* (1940s and 50s) number of research project, * (1940s and 50s) number of research project, conducted to understand human behavior at work. conducted to understand human behavior at work.

C. Inter-disciplinary Studies: C. Inter-disciplinary Studies:

* Various research studied carried out on human * Various research studied carried out on human relations. relations. (the idea was to understand social and (the idea was to understand social and psychological problems of industrial workers- because psychological problems of industrial workers- because human recourse is instrumental in improving human recourse is instrumental in improving organizational performance). organizational performance).

D. The Mature Outlook:

* The study on OB took in-depth attention to add * The study on OB took in-depth attention to add maturity to organizational practice. maturity to organizational practice.

E. Emergence of Human Relation & OB: E. Emergence of Human Relation & OB:

* Many theories of human behavior were tested * Many theories of human behavior were tested in real life situation under controlled in real life situation under controlled experimental condition. experimental condition.

* The attempt was made on human behavior to * The attempt was made on human behavior to solve complex organizational problems. solve complex organizational problems.

Contribution of other disciplines to Human Relations and Organizational Behavior

Most significant contributors are;Most significant contributors are;

a. Psychology: a. Psychology: It helps explain, measure and remodel It helps explain, measure and remodel human behavior. (psychologists study individual human behavior. (psychologists study individual human behavior) human behavior)

b. Social Psychology: b. Social Psychology: This field provide insight in;This field provide insight in;

> attitude change,> attitude change,

> communication pattern, > communication pattern,

> group processes, > group processes,

> group decision making.> group decision making.

c. Industrial Psychology: c. Industrial Psychology: It has contributed to OB by It has contributed to OB by providing a better understanding of;providing a better understanding of;

> individual difference > individual difference

> various process of selection & placement> various process of selection & placement

> influence of physical environment on human > influence of physical environment on human performanceperformance

> accident and safety> accident and safety

> Morale> Morale

> Mental health> Mental health

d. Sociology: d. Sociology: Study on society and social behavior. Study on society and social behavior. Major contribution to;Major contribution to;

Understanding of group dynamicsUnderstanding of group dynamics Work teamsWork teams NormsNorms RolesRoles StatusStatus Formal org structureFormal org structure Org cultureOrg culture CommunicationCommunication SocializationSocialization Power, conflict and inter-group behavior. Power, conflict and inter-group behavior.

e. Anthropology: e. Anthropology: (study of mankind)(study of mankind) Impact of cultural factor on OBImpact of cultural factor on OB Org culture & environmentOrg culture & environment Cross-cultural analysisCross-cultural analysis Behavior of people from different countriesBehavior of people from different countries Concepts of interaction Concepts of interaction Comparative normsComparative norms

f. Economics: f. Economics: (study of suitable option, policies that affect the (study of suitable option, policies that affect the economic growth of a firm)economic growth of a firm)

Distribution and consumption of goodsDistribution and consumption of goods Aspects of decision and choiceAspects of decision and choice

g. Political science: g. Political science: (involves the study of group behavior (involves the study of group behavior within a particular political environment)within a particular political environment)

11––1212

Behavioural Science Contribution Unit of analysis Output

Psychology

Individual

Sociology

Group Dynamics, Work Teams, PowerCommunication, Conflict,Intergroupk Behaviour

Formal organization theoryOrganizational TechnologyOrganizational change and culture

Behavioural change, Attitude change, Communication, Group ProcessesGroup Decision making

Comparative valuesComparative attitudesCross-cultural analysis

Organizational cultureOrganizational environment

LearningMotivationPersonalityPerceptionTrainingLeadership EffectivenessJob SatisfactionAttitude measurementEmployee selectionWork designWork stress

ConflictIntraorganizational Politics

Social Psychology

Anthropology

Political Science

Group

OrganizationSystem

Study of

Organiza-Tional

Behavi-our

Significance of Human RelationsSignificance of Human Relations

and and

Organizational BehaviorOrganizational Behavior

A. Development of Skills A. Development of Skills

Constraints: Constraints:

Rapid change in business environment Rapid change in business environment

More work stress and frustrationMore work stress and frustration

Higher level of expectation Higher level of expectation

Needs: Needs:

Knowledge and skill acquirement Knowledge and skill acquirement

Enhancing ability Enhancing ability

Opportunity for training Opportunity for training

Motivation and provision for opportunity Motivation and provision for opportunity

Improvement of inter-personal relations Improvement of inter-personal relations

Requirement of greater managerial skills Requirement of greater managerial skills

B. Organizational Performance: B. Organizational Performance:

• Knowledge x Skill = AbilityKnowledge x Skill = Ability

• Attitude x Situation = MotivationAttitude x Situation = Motivation

• Ability x Motivation = Potential PerformanceAbility x Motivation = Potential Performance

• Human performance x Resources = Organizational Human performance x Resources = Organizational performance performance

C. Research Foundation For OB: C. Research Foundation For OB:

Various research studies conducted that create a strong Various research studies conducted that create a strong base and served as landmark in the field of OB. base and served as landmark in the field of OB.

11. Hawthorne Studies: . Hawthorne Studies: Case examples (exhibit- OB case) Case examples (exhibit- OB case)

i. Illumination experimentsi. Illumination experiments

ii. Relay assembly room experimentsii. Relay assembly room experiments

iii. Bank wiring observation room experimentsiii. Bank wiring observation room experiments

2. Theory “X and Theory “Y”: (Douglas McGregor)2. Theory “X and Theory “Y”: (Douglas McGregor)

Theory X* Work is inherently distasteful to most people

* Most people are not ambitious, have little desire for responsibility, and prefer to be directed

* Most people have little capacity for creativity in solving organizational problems

* Motivation occurs only at the physiological and security levels

* Most people must be closely controlled and often coerced to achieve organizational objectives

Theory Y * Work is as natural as play if the conditions are favorable

* Self-control is often indispensable in achieving organizational goals

* The capacity for creativity is spread throughout organizations

* Motivation occurs at affiliation, esteem, and self-actualization levels, not just security, physiological levels

* People can be self-directed and creative at work if properly motivated

3. Theory “Z”: 3. Theory “Z”: (William Ouchi) combination of American (William Ouchi) combination of American and Japanese mgmt practices. and Japanese mgmt practices.

Japanese PracticesJapanese Practices: : > Believe in providing lifetime employment > Believe in providing lifetime employment

> Don’t fire unless crime committed> Don’t fire unless crime committed

> More time give to understand co’s functioning before promoted> More time give to understand co’s functioning before promoted

> Therefore promotions are slow > Therefore promotions are slow

> Employees are trained in all aspects of org functioning> Employees are trained in all aspects of org functioning

> They believe in taking collective decision and responsibility> They believe in taking collective decision and responsibility

> Better relationships between org and employees, suppliers and > Better relationships between org and employees, suppliers and creditors based on trust / goodwillcreditors based on trust / goodwill

> Mgmt’ concerns for family & much facilities extended to them> Mgmt’ concerns for family & much facilities extended to them

American Practices:American Practices: Short-term employment is more commonShort-term employment is more common

Co tend to downsize if downturn in economy or employees’ Co tend to downsize if downturn in economy or employees’ performance is dissatisfactory.performance is dissatisfactory.

Believe in going fast track Believe in going fast track

Explicit control process and systemExplicit control process and system

Well-defined rules and policies to regulate employee behaviorWell-defined rules and policies to regulate employee behavior

Focus on individualFocus on individual

Manager takes decision for entire group Manager takes decision for entire group

Americans are only concerned about employee’s work and Americans are only concerned about employee’s work and professional life. professional life.

William Ouchi recommended American companies to William Ouchi recommended American companies to make changes in HR Mgmt. make changes in HR Mgmt.

They should offer more secure and better career They should offer more secure and better career prospects. prospects.

They should involve employees in decision-making They should involve employees in decision-making process.process.

They should emphasize team sprit They should emphasize team sprit

They should recognize individual’s contribution to They should recognize individual’s contribution to team effort.team effort.

Managers and their subordinates should have mutual Managers and their subordinates should have mutual respect for each other. respect for each other.

Other prominent studies are:Other prominent studies are:

• Lippitt and White Leadership Studies.Lippitt and White Leadership Studies.

• The coach and French Study. The coach and French Study.

• The Ahmedabad ExperimentThe Ahmedabad Experiment

• Milgram’s Obedience to Authority Study Milgram’s Obedience to Authority Study

(Annexure – OB studies) (Annexure – OB studies)

Trend and prospects in OBTrend and prospects in OB1.1. Reduction in number of middle mgmt personnel.Reduction in number of middle mgmt personnel.

2.2. Increasing use of computer & Information Tech.Increasing use of computer & Information Tech.

3.3. Entry of women & minority in the workforce.Entry of women & minority in the workforce.

4.4. Cooperation between mgmt and unions.Cooperation between mgmt and unions.

5.5. Innovative work approaches special needs of Innovative work approaches special needs of employees.employees.

i. change in composition of the workforcei. change in composition of the workforce

ii. Spread of globalizationii. Spread of globalization

iii. Change in workplace values and ethicsiii. Change in workplace values and ethics

iv. Change in employee-employer relationship. iv. Change in employee-employer relationship.

Reading and referencesReading and references