Chapter 3 Part II Human Relations Theory

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1 Chapter 3 Part II Human Relations Theory Underlying metaphor: Organizations are the sum of human relationships. It argues that employees want to be led, but also want to feel they are part of some larger cause, commanding them yet worthy of them. To be valued by the organization. A. Three major events led to development of theory: 1. The Great Depression a. Massive unemployment b. Movement of workers to jobs (west, north) (Paul Parson s family moved to Texas) c. Abuses of workers by employers (More looking = lower wages, etc.) d. Growth of labor unions in response to abuses 2. World War II a. Needed to coordinate work of military, government, and educational researchers/scientists b. Hierarchy, chain of command, impeded flow of information 3. New theories and observations about human behavior a. General Semantics b. Psychology of Motivation (and Maslow) 1. Society is made up of groups, not individuals 2. Individuals are influenced by the groups to which they belong, and thus do not act solely in accordance with self-interest. 3. Our individual decisions are not entirely rational; rather they are influenced by emotion. (Advertising is BASED on this observation!) [To What groups do you belong? Who influences your decisions?] 1

2 B. Research & Theory behind Human Relations Approach: 1. Elton Mayo and the Hawthorne Studies a. Western Electric (AT & T) facility Three phases: Increased/decreased lighting on a group of workers; Observed a group working in a wiring room for interaction (sanctioned and nonsanctioned); conducted open-ended interviews with these employees. No matter what they did, production went up (until it was too dark to see). Hawthorne Effect: paying attention to employees increases production. b. Conclusion: Individuals are complex beings, sensitive to group norms and possessing multiple motives, values, and emotions. 2. Chris Argyris: the principles of formal organizations, such as hierarchy and task specialization, are incongruent with the development needs of healthy adults. a. When the organization needs a square peg to fill a square hole, it doesn t care what the peg wants to be in five years! 3. Criticism: Replaces Protestant work ethic and entrepreneuralism with a social ethic of look good, play nice, fit in. We want to believe that openness, selfdisclosure, and supportive relationships have positive effects on organizational productivity, but research does not provide adequate support. The individual situations are too complex and too unique for extrapolation. Good chart comparing Classical and Human Relations on p

3 Research Based on Human Relations A. Leadership Style 1. WWII Poor worker performance is the result of poor management. Increasing worker productivity is the job of management. (A paradigm shift) 2. Ohio State 10-year study Identified two factors a. Initiating Structure planning, communicating, scheduling, and organizing b. Consideration shows concern for the feelings of subordinates, promoted mutual trust, fostered twoway communication. c. Can score high in one or both, but traditional initiating skills were seen as important as interpersonal skills in promoting worker productivity 3. Frederick Herzberg Two Factor theory of job satisfaction a. Two independent sets of needs 1. To avoid pain (Reducing pain can decrease dissatisfaction) 2. To Grow Psychologically (Changing the task to make it more rewarding) Money does not equal happiness. 3. Leaders must maintain a clear distinction between the two sets of needs. (and pay attention to both) 4. Fred Fiedler Contingency Theory a. Different leadership styles are appropriate for 3

4 different situations. b. When group is either extremely favorable or unfavorable toward a leader, a task-oriented style of management is most effective. c. in less extreme cases, an interpersonal style may be more effective. d. The Truth? A mix of both is usually what s needed. B. Simon s Decision-Making Model 1. In organizations, people attempt to make rational decisions. 2. Their ability to do so is hindered by both the situation and their limited processing ability. 3. SATISFICING: People settle for the first acceptable solution rather than looking for the optimal solution or a novel solution to a problem. 4. Organizations can exert unobtrusive (hidden) control over employees by limiting alternatives and shaping decision premises. a. Card Trick as an example of limiting Red Black Spades Clubs Picture (Face) Numbers ( 2 10) Two Lower (Queen, Jack) 2 Higher (Ace, King) Jack Queen Jack 4

5 C. Intuitional Theory 1. Philip Selznick a. Case study method is needed to identify how organizations differ from one another. b. Organizations are not the sum of individual actions, but rather have a gestalt an energy that gives them a life of their own. c. The relationship between an organization and its environment is critical to its survival. (A paradigm shift.) d. Not all organizations become institutions. 1. Libraries, universities, medical centers. 2. People associate these organizations with what it means to live in a good society. 3. Institutions are invested with community values. 4. Survival depends on public perception, rather than performance, productivity, effectiveness. a. A shift is occurring, as schools, hospitals are being held accountable for outcomes. Human Resources Approach A. Maslow s Hierarchy of Needs 1. Basic needs of food, clothing, shelter, belonging must be satisfied before people can move toward achieving their full human potential. 5

6 2. The goal of management is to set up social conditions in the organization so that the goals of the individual merge with those of the organizations. B. McGregor s Theory Y Management 1. Employees are viewed as wanting to work, and having the capacity to self-motivate and self-direct. 2. Employees commitment to organizational objectives is directly related to the rewards associated with their achievement. 3. Employees have a greater capacity for creative problemsolving than the organization asks them to use. C. Likert s Principle of Supportive Relationships 1. All interactions within an organization should support individual self-worth and importance. 2. Work groups should develop a supportive climate, and attempt to have an open, trusting communication network. a. System I: Exploitative/Authoritative b. System II: Benevolent/Authoritative c. System III: Colnsultative d. System IV: Participative 3. Research on this psychobabble has been inclusive. Does not allow for company politics, or the difficulty in allowing everyone to have a voice, whether or not they have insight. 6

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