Development in Development in Organization Organization

TheoryTheory

Human Relations Human Relations ApproachApproach

Learning ObjectivesLearning Objectives1. Understand the reasons for emergence

of Human relations approach2. Identify the key features and

proponent of Human relations approach

3. Describes the differences between the Human relations approach and Classical approach to organizational design

The Human Relations The Human Relations ApproachApproach

The main precepts of HR approach are :1. People are emotional rather than

economic rational beings2. Organizations are co-operative, social

systems rather than mechanical ones3. Organizations are composed of

informal structures, rules and norms as well as formal practices and procedures

The Hawthorne ExperimentsThe Hawthorne ExperimentsFeatures : Elton Mayo (1880-1949)He is the founder and leading light of the

human relations movement.Hawthorne Experiments carried out at

Western Electric’s Hawthorne Works in Chicago in 1920 and 1930.

Hawthorne Experiments have 2 phases :1. Hawthorne Illumination Tests (HIT)

which design to examine the effect of various levels of lighting on workers productivity.

2. The company wanted to establish the effects on productivity of increased rest periods, free refreshment, change payment system, better & friendly communication etc.

The result put forward 2 major propositions:1. The importance of informal groups within

the formal structures of organizations2. Human have a deep need for recognition,

security and belonging.

Co-operative SystemCo-operative SystemFeatures : Chester Barnard (1886-1961)Book : The Functions of the ExecutiveHe is one of the first to treat organization

as system rather than a machines.A organization is a co-operative system :1. Without willingness of its members to

make contributions and goals, it cannot operate effectively

2. The flow of authority is not from the top down but from bottom up

3. A communication as being the key function of the executive

4. Workers needed to be supported by other psychological and sociological motivators than material incentives.

Hierarchy of NeedsHierarchy of Needs

Features : Abraham Maslow (1908 – 1970)He (1934) identified 5 distinct forms of human

need which placed in a hierarchical order :1. Physiological needs; hunger,thirst, sleep etc2. Safety needs; desire for security and

protection3. Social needs; need to belong, beloved,

friends4. Esteem needs; to be respected, esteemed5. Self-actualization needs; achieve one’s full

potential.

Theory X – Theory YTheory X – Theory YFeatures : Douglas McGregor (1906-1964)Book : The Human Side of Enterprise

(1960)The best way to manage people were based

on their assumption about human nature.

There are 2 basic views of human nature :1. Theory X – negative view2. Theory Y – positive view

Theory X, which dominated the literature and practice of manager, has assumptions :

• The average person dislike work and will avoid it wherever possible

• Employee must be coerced, controlled with punishment

• Most people try to avoid responsibility• Workers place security above others

factors relating to employment and have little ambition

Theory Y, comprises a group of assumptions :

• Most people can view work as being as natural as rest or play

• Workers capable of exercising self direction and self control

• The average person will accept and seek responsibility if they are committed to the objectives being pursued

• Ingenuity, imagination,creativity,and the ability to make good decisions are widely dispersed among population

The Death of BureaucracyThe Death of Bureaucracy

Features : Warren Bennis (1925-)Victorian age were dead and new conditions

were emerging to which bureaucracy was no longer suited. These condition were follows :

1. Rapid and unexpected change2. Growth in size3. Increasing diversity4. Change in managerial behavior

Job Design: Operationalising Job Design: Operationalising Human RelationsHuman Relations

Job design is a direct attack on the precepts of the Classical approach.

In practice, there are 3 variants of job design:

1. Job enlargement2. Job enrichment3. Socio-technical systems theory

In 1950s and 1960s, job design emerged and attracted so much attention for 3 reasons :

1. The first flow from the work of Maslow (1943); Job have to be designed to meet their psychological needs

2. As markets have become more global, competitive and volatile, organizations need to be more responsive to the needs of their customers

3. Low unemployment in 1950 – 1970 led to high rates of labour turnover, endemic industrial unrest and organization with poor design

SummarySummaryThe Human Relations model stresses 3

elements :1. Leadership and communication2. Intrinsic job motivation (as well as extrinsic

rewards)3. Organization structures and practices which

facilitate flexibility and involvementThe elements are underpinned by 2

propositions :1. Organizations are complex social systems2. Human beings have emotional as well as

economic needs