Principles of Human Relations Theory

Human relations theory is characterized by a shift in emphasis from

TASK to WORKER Go beyond physical contributions to include creative, cognitive, and emotional aspects of workers Based on a more dyadic (two-way) conceptualization of communication. SOCIAL RELATIONSHIPS are at the heart of organizational behavior--effectiveness is contingent on the social well-being of workers Workers communicate opinions, complaints, suggestions, and feelings to increase satisfaction and production Origins (Hawthorne Studies & work of Chester Barnard) Human Relations School of Management - Elton Mayo (Harvard

Origins of Human Relations Theory

The Hawthorne Studies
Hawthorne Works of Western Electric

Company 1924 - Chicago Research focus: Relation of quality and quantity of illumination to efficiency in industry Four Important Studies

Hawthorne Studies - Implications

Illumination Study (November 1924)
The mere practice of observing

peoples behavior tends to alter their behavior (Hawthorne Effect)

 Relay Assembly Test Room Study (1927-1932) Relationships between workers and their supervisors are powerful Human interrelationships increase the amount and quality of worker participation in decision making

 Interviewing Program (1928-1930) Demonstrated powerful influence of upward communication Workers were asked for opinions, told they mattered, and positive attitudes toward company increased

 Bank Wiring Room Observation Study (November 1931 - May 1932)

Led future theorists to account for the existence

of informal communication
Taken together, these studies helped to

document the powerful nature of social relations in the workplace and moved managers more toward the interpersonal aspects of organizing.

The Emergence of Communication

Chester Barnard
Considered a bridge between classical and

human relations theories The Functions of the Executive (1938) Argues for . . . strict lines of communication - classical theory a human-based system of organization The potential of every worker and the centrality of communication to the organizing process

Six Issues Relevant to Organizational Communication

Formal vs. Informal Organization Cooperation Communication Incentives Authority Zone of Indifference

Six Issues Relevant to Organizational Communication

Formal vs. Informal Organization Formal Organization - a system of consciously coordinated activities or forces of two or more persons. (definite, structured, common purpose) Persons are able to communicate with one another Willing to contribute action To accomplish a common purpose

 Informal Organization - based on myriad

interactions that take place thourghout an organizations history. Indefinite Structureless No definite subdivisions of personnel Results: customs, mores, folklore, institutions, social norms, ideals -- may lead to formal organization

 Cooperation Necessary component of formal organization The expression of the net satisfactions or dissatisfactions experienced or anticipated by each individual in comparison with those experienced or anticipated through alternative opportunities

 Communication
Critical to cooperation The most universal form of human cooperation, and perhaps the

most complex, is speech The most likely reason for the success of cooperation and the reason for its failure System of communication: known, formal channels which are as direct (short) as possible, where the complete line of communication is used, the supervisory heads must be competent, the line of communication should not be interrupted, and every communication should be authenticated. Barnards system lacks relationship formation and maintenance mechanisms

Six Issues Relevant to Organizational Communication

Incentives
Should be available Not discussed in detail

Authority
Associated with securing cooperation for

organizational members The interrelationship among the originator of the communication, the communication itself, and the receiver Authority of position OVER Authority of Leadership (knowledge & ability).

 Zone of Indifference - orders followed Marks the boundaries of what employees will consider doing without question, based on expectations developed on entering the organization.

Barnard drew attention away from formal organizational structures toward communication, cooperation, and the informal organization. His work was integrated by other theorists in the human relations movement.

Theory X and Theory Y: Douglas McGregor

Douglas McGregor (1906-1964)
Articulated basic principles of human relations

theory The Human Side of Enterprise (1960, 1985) To understand human behavior, one must discover the theoretical assumptions upon which behavior is based Especially interested in the behavior of managers toward workers Every managerial act rests on assumptions, generalizations, and hypotheses--that is to say, on theory . . . Theory and practice are inseparable.

 Two Objectives:

Predict and control behavior Tap Unrealized potential Theory X - Classical Theory Theory Y - Human Relations Theory FOCUS: Managers assumptions about HUMAN NATURE

Theory X and Theory Y: Douglas McGregor

Theory X - Classical Theory
Three Assumptions

The average human being has an inherent dislike of work and will avoid it. Most people must be coerced, controlled, directed, and threatened with punishment The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, wants security. Neither explains nor describes human nature

Theory Y Human Relations Theory

Theory Y - Human Relations Theory
Assumptions

Physical and mental effort in work is similar to play / rest. External control and the threat of punishment are not the only strategies Commitment to objectives is a function of the rewards associated with their achievement The average human being learns, under proper conditions, not only to accept but to seek responsibility The capacity to exercise a high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely distributed in the population Intellectual potentialities of the average human being are underutilized

Theory Y Prototype: The Scanlon Plan

Participative Management Two Central Features

sharing the economic gains from improvements in organizational performance Effective participation - a formal means of providing opportunities to every member of the organization to contribute ideas for improving organizational effectiveness. Must be implemented appropriately Wastes time and undermines managerial power? Magic formula for every organizational problem? CONCERN for RELATIONSHIPS in the organization. As the need to increase commitment grows, so does the need to develop strong, communication-based relationships among organizational members, particularly between supervisor and subordinate.

Cost-reduction sharing for organizational members -

Human Resources Theory

Difficult to adopt principles of human relations theory --

misapplications and misunderstandings of both classical theory and human relations theory led to Human Resources Theory
The key element to Human Relations Theory, participation, was

used only to make workers feel as if they were part of the organizational decision-making processes
Key to classical and human relations theory is compliance with

managerial authority
Workers are told that they are important but were not treated as

such

 Major Distinctions between Human Resources and Human

Relations Theory All people (not just managers) are reservoirs of untapped resources managers responsibility to tap physical and creative resources Many decisions can be made more effectively and efficiently by workers most directly involved with their consequences Relationship between employee satisfaction and performance - improved satisfaction and morale contribute back to improved decision making and control

Human Resources Theory

Increased satisfaction is related to the improved decision making and self-control that occurs due to participation that is genuinely solicited and heard
Two prevalent Human Resources Theorists Rensis Likert
Blake & Mouton

Four Systems of Management: Rensis Likert

Management is critical to all organizational activities

and outcomes Continuum that ranges from more classically oriented system to one based on human resources theory Of all the tasks of management, managing the human component is the central and most important task High producing departments and organizations tend toward System IV; low producing units favor System I System I - Exploitative Authoritative System II - Benevolent Authoritative System III - Consultative System IV - Participative

Blake and Moutons Managerial Grid

Stresses interrelationship between production (task) and people Managements main purpose is to promote a culture in the organization that allows for high production at the same time that employees are fostered in their professional and personal development Managerial Grid - now Leadership Grid

 FOCUS: Managers Assumptions about CONCERN for

PEOPLE and CONCERN for PRODUCTION Concern for PEOPLE Degree of personal commitment to ones job Trust-based accountability (vs. obedience-based accountability) Self-esteem for the individual Interpersonal relationships with co-workers Concern for PRODUCTION Use of people and technology to accomplish organizational tasks Concern for is not about quantity or quality Assessment instrument does not represent personality traits of the manager -- instead, indicate a specific orientation to production and people

Blake and Moutons Managerial Grid

Authority Compliance (9,1) Classical theory

Country Club (1,9)

Informal grapevine Impoverished (1,1) Laissez-faire

Middle-of-the-Road (5,5)
Compromise (carrot & stick) Team (9,9) Human Resources Approach

Promote the conditions that integrate creativity, high productivity, and high morale through concerted team action

Humanistic Theories of Organizations

Human Relations Theory

The Hawthorne Studies Chester Barnard McGregors Theory X and Theory Y Human Resources Theory Likerts Systems Theory (Four Systems of Management) Blake and Moutons (Blake and McCanse) Managerial Grid

The principles of human resources theory attempt to

integrate the concern for production from classical theory with the concern for the worker from human relations theory -- more effective and satisfying!

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