PHILOSOPHY OF MANAGEMENT

Discussion 10
20-12-2016

Dr Sajid Hussain Awan

Associate Professor, LBS
Contents contd.
Sartre: Radical Freedom
Behavioral Psychology: Skinner on Conditioning
Evolutionary Psychology: Lorenz on Aggression
Conclusion: Toward a Unified Understanding: Nine
Types of Psychology

3
Points to ponder!
Philosophy is more an activity than a discipline.
Academic philosophy has become increasingly
irrelevant to the actual conduct of peoples lives,
Philosophy is the art of thinking and its chief
instrument is reason. Each human being possesses the
potential for thinking and for insight. Accordingly,
philosophy should strengthen that capacity.
Philosophy aims to contribute to the creation of a
better life as a result of an individuals improved
thinking (Esa Saarinen, 2008).

4
 Sigmund Freud
(1856 -1939)
The Unconscious Basis of
Mind

5
Sigmund Freud

Austrian Neurologist
He revolutionized our understanding of human nature.
He spent nearly fifty years developing and modifying
his theories, writing so vast an amount of material that
only a specialist could hope to digest it all.
He developed an original hypotheses about the nature
of neurotic problems and developed his distinctive
theory and method of treatment.
He introduced his distinctive theoretical concepts of
resistance, repression, and transference.
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Sigmund Freud
Beyond the Pleasure Principle, in which he first
introduced the concept of the death instinct (to
explain aggression and self-destruction) as well as
the life instincts (self-preservation and sexuality).
Another late development was the tripartite
structure of the mind - id, ego, and superego

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Sigmund FreudId, Ego and Super Ego

Freud introduced a new structural concept of the

mind into his theory in the 1920s
He distinguished three systems within the mental
apparatus.
The Id is said to contain all the instinctual drives that
seek immediate satisfaction like a small child (they
are said to operate on the pleasure principle)
Everything in the Id is permanently unconscious.

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Sigmund FreudId, Ego and Super Ego

The ego contains the conscious mental states, and its

function is to perceive the real world and to decide
how to act, mediating between the world and the
Id (it is governed by the reality principle).
The superego is identified as a special part of the
mind that contains the conscience, the moral norms
acquired from parents and others who were
influential in ones early childhood;

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Sigmund Freud

In The Future of an Illusion (1927), he treated

religion as a system of false beliefs whose deep
root in our minds must be explained
psychoanalytically.
His constant hope was to explain all the
phenomena of human life scientifically.
He made no assumptions about theology,
transcendent metaphysics, or the progress of
history.
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Sigmund Freud
His thorough training in physiological research, he
assumed that all phenomena are determined by
the laws of physics, chemistry, and biology and
that human beings, too, are subject to these.
He was convinced with biological science, after
the advent of Darwins theory of evolution
Accepted that human beings are one species of
animal, and he accordingly proposed that our
problems could be diagnosed and enriched by
the methods of science.
He has recently been described as a biologist of
the mind
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Freuds Theory of Human Nature
First Assumption

His first basic assumption is materialism.

He acknowledged a distinction between mental
states and physiological states of the nervous
system, but this was for him only a difference in
language, not a dualism of two substances (mind
and body).
Many (though not all) philosophers would now
agree that, in talking of states of consciousness
(thoughts, wishes, and emotions), we are not
committed to metaphysical dualism, and there is no
reason to suppose that the case is any different for
the unconscious mental states that Freud postulates.
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Freuds Theory of Human Nature
First Assumption

After his bold early attempt to identify a

physiological basis for all mental states.
In his Project for a Scientific Psychology, Freud came to
think such theorizing too far ahead of the knowledge of
the time.
For the rest of his life he was content to leave the
physical basis of psychology to the future development
of science - and research in this area has indeed made
enormous progress in recent years.
But that all the complicated mental states and processes
he postulated had some physiological basis, he did not
doubt.
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Freuds Theory of Human Nature
Second Assumption
The second point is a strict application of determinism -
the principle that every event has preceding causes - to
the realm of the mental.
Thoughts and behavior that had formerly been assumed
to be of no significance for understanding a person -
such as slips of the tongue, faulty actions, dreams, and
neurotic symptoms Which are determined by hidden
causes in a persons mind.
He thought these could be highly significant, revealing in
disguised (covert) form what would otherwise remain
unknown.
Nothing that a person thinks or does or says is really
haphazard or accidental.
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Freuds Theory of Human Nature
Second Assumption
Everything can in principle be explained by something in the
persons mind.
This might seem to imply a denial of free will, for, even when
we think we are choosing perfectly freely (even arbitrarily).
Freud claims that there are unknown causes that determine our
choice.
There is an interesting parallel with Marx here, in that he and
Freud both believed that the contents of our consciousness, far
from being perfectly free and uniquely rational are
determined by causes of which we are not normally aware.
But whereas Marx said that these causes are social and
economic in nature, Freud claimed that they are individual and
psychological, rooted in our biological drives.

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Freuds Theory of Human Nature
Third Assumption
The third and perhaps most distinctive feature of
Freuds theorizing - the postulation of unconscious
mental states - thus arises out of the second.
There are lots of mental states, for instance,
memories of particular experiences or facts, of
which we are not continually conscious but that can
be recalled when appropriate.
These Freud calls preconscious (meaning that
they can readily become conscious; he reserves
the term unconscious for states that cannot
become conscious under normal circumstances.

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Freuds Theory of Human Nature
Third Assumption
His crucial assertion is that our minds are not co-extensive
with what is available to conscious attention but include
items of which we can have no ordinary knowledge.
To use a familiar analogy, the mind is like an iceberg,
with only a small proportion of it visible above the
surface but with a vast hidden bulk exerting its influence
on the rest.
Freud would be happy to accept the findings of recent
cognitive science that much information-processing is
involved in the recognition of objects; we are unaware of
these processes in our own minds, but psychologists can
infer them as the best explanation of the facts of
perception (and misperception).
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Themes
A background theory about the world
Basic theory of the nature of human beings
Diagnosis of what is wrong with us, and
Prescription for putting it right.

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Some important questions!

What is personality?
What makes us what we are?
What are the key elements of personality?
Are there generic types or classes?
Is this personality good or bad?
Is diversity a curse or a blessing?
Application of what we have learnt.

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KNOW THYSELF

AN UNEXAMINED LIFE IS
NOT WORTH LIVING!
Think!

Self-awareness
People are the most important organizational resource
Improving predictability and self-confidence
Building relationships
Effective utilization of human resources
Avoiding or managing conflicts
Improving the quality of life and work environment

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Reflection!

Have you ever faced a person whom you failed to

understand?
Have you ever been misunderstood (as a person)?
Have you ever been frustrated by people who
looked, behaved, thought or felt very different than
you?
Have you ever looked down on someone who
behaved, thought or felt differently?

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Why Study Human Nature?

When the philosophy of man (his nature, his goals,

his potentialities, his fulfillment) changes, then
everything changes, not only the philosophy of
politics, of economics, of ethics and values, of
interpersonal relations and of history itself, but
also the philosophy of education.
(Light, 1985; Maslow, 1962)

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Human Nature
Questioning is in the human nature
McGregors beliefs about human nature have
had a strong following.

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Philosophers on HN
Aristotle
Stoicism: (Indifference to pleasure or pain; impassiveness,
following the teachings of the ancient Greek philosopher Zeno)
Islam: How do we understand human nature? Al-Farabi, Al-
Ghazzali, Ibn Rushd, Ibn Arabi, Ibn Khaldun, etc.
Thomas Aquinas (1225-74):
combined Aristotelianism and elements of Neo-
Platonism within a context of Christian thought
Hobbes: The only way to secure civil
society is through universal submission to the absolute authority
of a sovereign.

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Philosophers on HN

Benedict Spinoza (1632-77). Ethics: an intellectual love of God

David Hume (1711-76): human knowledge arises only from sense experience,
shaped 19th- and 20th-century empiricist philosophy.

Friedrich Wilhelm Nietzsche (1844-1900):

Christianitys emphasis on the afterlife makes its believers less able to cope with ea
rthly life. He suggested that the ideal human, the Ubermensch, would be able to
channel passions creatively instead of suppressing them.

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Philosophers on HN

Martin Heidegger (1889-1976): human existence in a world of objects

Noam Chomsky (1928): His theory of language structure, transformational

grammar, and Transformational generative grammar

Feminism and post-modernism demand more of a response.

Kant: Much of his writing is formidably abstract and technical. The basis of his
approach lies in ethics, politics, and religion, and his recognition of radical evil
in human nature, and his hopes for progress in human affairs.

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Rival Conceptions of HN
So much depends on our conception of human nature:
For individuals, the meaning and purpose of our lives, what we ought
to do or strive for, what we may hope to achieve or to become;
For human societies, what vision of human community we may hope
to work toward and what sort of social changes we should make.
Our answers to all these huge questions depend on whether we
think there is some true or innate nature of human beings.
If so, what is it? Is it different for men and women? Or is there
no such essential human nature, only a capacity to be molded
by the social environmentby economic, political, and cultural
forces.

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Disagreements on HN

On these fundamental questions about human nature

there are disagreements aplenty.
The Bible sees human beings as created by a
transcendent God with a definite purpose for our life.

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Karl Marx on HN
Wrote in the mid-nineteenth century: the real nature
of man is the totality of social relations,
He denied the existence of God and held that each
person is a product of the particular economic stage
of human society in which he or she lives.

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Jean-Paul Sartre on HN
An existentialist
Man is condemned to be free, writing in German-
occupied France in the 1940s.
He was an atheist too, but he differed from Marx
in holding that our nature is not determined by our
society, nor by anything else.
He held that every individual person is completely
free to decide what he or she wants to be and do.
In contrast, recent socio-biological theorists have
treated human beings as a product of evolution,
with our own biologically determined, species-
specific patterns of behavior.
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Contradictions
The previous three quotations from the Bible, Marx,
and Sartre all use the masculine word man (in
English translation), where presumably the intention
is to refer to all human beings, including women
and children.
Such usage has been widespread and is often
defended as convenient shorthand, but it has
recently come under criticism for contributing to
questionable assumptions about the dominance of
male human nature and the consequent neglect or
oppression of female nature.
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Guiding our way through

Different conceptions of human nature lead to

different views about:
What we ought to do and how we can do it?
If an all-powerful and supremely good God made us, then
it is His purpose that defines what we can be and what we
ought to be, and we must look to Him for help?
If, on the other hand, we are products of society, and if we
find that our lives are unsatisfactory, then there can be no
real solution until human society is transformed?
If we are radically free and can never escape the necessity
for individual choice, then we have to accept this and make
our choices with full awareness of what we are doing.
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Rival Theories
Rival beliefs about human nature are typically
embodied in different individual ways of life, and in
political and economic systems.

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 Rival Theories
Marxist theory (in some version) so dominated public life in the
communist-ruled countries of the twentieth century that any
questioning of it could have serious consequences for the
questioner.
A few centuries ago, Christianity occupied a similarly dominant
position in Western society: heretics and unbelievers were
discriminated against, persecuted, even burnt at the stake.
Even now, in some countries or communities, there is a socially
established Christian consensus that individuals can oppose only
at some cost to themselves.
In the Republic of Ireland, for example, Roman Catholic doctrine
has (until recently) been accepted as limiting policy on social
matters such as abortion, contraception, and divorce.
The Catholic Church exerts similar strong influence in Post-
communist Poland.
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Rival Theories
An existentialist philosophy like Sartres may seem less likely
to have social implications, but one way of justifying modern
liberal democracy is by the philosophical view that there are
no objective values for human living, only subjective individual
choices.
This assumption (which is incompatible with both Christianity
and Marxism) is highly influential in modem Western society,
far beyond its particular manifestation in French existentialist
philosophy of the mid-century.
Liberal democracy is enshrined in the American Declaration of
Independence, with its separation of politics from religion and
its acknowledgment of the right of each individual freely to
pursue his or her own conception of happiness.
It should be noted, however, that someone who believes there
are objective moral standards may still support a liberal social
system if he or she thinks it unwise to try to enforce them. 36
Christianity and Marxism
Christianity and Marxism are rival theories of human nature.
Although they are radically different in content, they present
some remarkable similarities in structure, in the way that the
parts of each doctrine fit together and give rise to ways of life.
First, they each make claims about the nature of the universe as
a whole.
Christianity is, of course, committed to belief in God, a personal
being who is omnipotent, omniscient, and perfectly good, the
Creator, Ruler, and Judge of everything that exists.
Marx condemned religion as the opium of the people, an
illusory system of belief that distracts them from their real
social problems.

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Christianity and Marxism
Both Christianity and Marxism have beliefs about history.
For the Christian, the meaning of history is given by its relation
to the eternal.
God uses the events of history to work out His purposes,
revealing Himself to His chosen people (in the Old Testament)
but above all in the life and death of Jesus.
Marx claimed to find a pattern of progress in human history
that is entirely internal to it.
He thought that there is an inevitable development from one
economic stage to another so that just as the economic system
of feudalism had been superseded by capitalism, so capitalism
would have to give way to communism.
Both views see a pattern and meaning in history, though they
differ about the nature of the moving force and the direction.
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Christianity and Marxism
Second, following from the conflicting claims about the
universe, there are different descriptions of the essential
nature of individual human beings.
According to Christianity, we are made in the image of
God, and our fate depends on our relationship to God.
All people are free to accept or reject Gods purpose
and will be judged according to how they exercise that
freedom. This judgment goes beyond anything in this life,
for we each survive physical death.
Marxism denies life after death and any such eternal
judgment. It also plays down individual freedom and
says that our moral ideas and attitudes are determined
by the kind of society we live in. 39
Christianity and Marxism
Third, there are different diagnoses of what goes wrong
with human Life and humankind.
Christianity says that the world is not in accordance with
Gods purposes, that our relationship to God is disrupted
because we misuse our freedom, reject Gods will, and
are infected with sin.
Marx replaces the notion of sin by the concept of
alienation, which also suggests some ideal standard
that actual human life does not meet.
But Marxs idea seems to be of alienation from oneself,
from ones own true nature: his claim is that human beings
have potential that the socioeconomic conditions of
capitalism do not allow them to develop.
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Christianity and Marxism
The prescription for a problem depends on the diagnosis.
So, last, Christianity and Marxism offer completely different
answers to the ills of human life.
The Christian believes that only the power of God Himself can
save us from our state of sin.
The startling claim is that in the life and death of Jesus, God
has acted to redeem the world.
Everyone needs to accept this divine forgiveness and can then
begin to live a new, regenerate life. Human society will not be
truly redeemed until individuals are thus transformed.
Marxism says the opposite: that there can be no real
improvement in individual lives until there has been a radical
change in society.
The socioeconomic system of capitalism must be replaced by
communism. 41
Differing visions of a future
Implicit in these rival prescriptions are differing visions of a
future in which humankind is redeemed or regenerated.
The Christian vision is of people restored to the state that
God intends for them, freely loving and obeying their Maker.
The new life begins as soon as the individual accepts Gods
salvation and joins the Christian community, but the process
must be completed beyond death, for individuals and
communities are forever imperfect in this life.
The Marxist vision is of a future in this world, of a perfect
society in which people can become their real selves, no
longer alienated by economic conditions but freely active in
cooperation with one another.
Such is the goal of history, although it should not be expected
immediately after the revolution; a transitional stage will be
needed before the higher phase of communist society can
come into being. 42
Differing visions of a future
They are said to be two systems of belief that are total
in their scope.
Traditionally, Christians and Marxists claim to have the
essential truth about the whole of human life;
They assert something about the nature of all human
beings, at any time and in any place.
And these worldviews claim not just intellectual assent but
practical action;
If one really believes in either theory, one should accept
its implications for one's way of life and act accordingly.
In case of Christianity, allegiance is to the Church, and in
case of the Marxism, to the Communist party. 43
Other Ideologies about HN

The theories of Plato and Aristotle, still influence us today.

Since the rise of modern science in the seventeenth
century, a variety of thinkers has tried to apply the
methods of science (as they understood them) to human
nature.
For example, Hobbes, Hume, and the French thinkers of
the eighteenth-century Enlightenment.
More recently, Darwins theory of evolution and Freuds
psychoanalytic speculations have fundamentally affected
our understanding of ourselves.
Modern biology and psychology offer a variety of
allegedly scientific theorizing about animal and human
nature. 44
Other Ideologies about HN
Outside the Western tradition, there have been Chinese,
Indian, and African conceptions of human nature, some of
which are still very much alive.
Islam, often seen as oriental, is closely related to Judaism
and Christianity in its origins.
Islam in particular is undergoing a resurgence of popular
strength, as the peoples of the Middle East express their
rejection of some aspects of Western culture, and it has also
gained influence among African Americans.
As the influence of Marxist theory wanes, some in Russia have
looked for guidance to their Orthodox Christian past and
others to a variety of modern forms of spirituality;
In China, Confucianism has been given some official revival.

45
Other Ideologies about HN
Some of these views are embodied in human societies
and institutions, as Christianity and Marxism have been.
If so, they are not just intellectual theories but ways of
life, subject to change, to growth and decay.
A system of beliefs about human nature that is held by
some group of people as giving rise to their way of life
is standardly called an ideology.
Christianity and Marxism are certainly ideologies in this
sense; even value-subjectivism can form an ideological
basis for political liberalism.

46
Other Ideologies about HN
An ideology, then, is more than a theory, but it does involve some
theoretical conception of human nature.
The discussion above gives rise to the following fundamental issues:
1. A background theory about the world;
2. A basic theory of the nature of human beings;
3. A diagnosis of what is wrong with us; and
4. A prescription for putting it right.
Only theories that combine the above constituents offer us hope of
solutions to the problems of humankind.

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Other Ideologies about HN
Everyone is selfish
This may be a brief diagnosis but offers no
understanding of:
Why we are selfish and no suggestion as to
whether or how we can overcome selfishness.
The statement that we should all love one
another is a brief prescription, but it gives no
explanation of why we find it so difficult and
no help in achieving it.

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Other Ideologies about HN
Are we really free and responsible for our actions?
Or
Is everything about us determined by our heredity,
upbringing, and environment?
Can the individual person continue to exist after
death?
Can the materialist view that human beings are
made of nothing but matter be true, in the light of
our distinctive mental powers to perceive and feel,
think and reason, debate and decide?
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Other Ideologies about HN

The Christian churches down through the

ages, and the various communist-ruled
countries in the twentieth century, show a
mixture of good and evil like that
evident in all other human history.
Neither Christian nor communist practice
has eliminated disagreement, selfishness,
persecution, tyranny, torture, murder,
and war.
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Other Ideologies about HN
Some would argue that the regimes of Eastern Europe
did not properly put Marxs theory into practice and
that his basic ideas may still be valid.
Religious, cultic, political, national, ethnic,
psychotherapeutic, and gender-based dogmas are
asserted with various degrees of aggression or
politeness, crudity or sophistication.
The media of the so-called global village seem to
bring different cultures together in the sense only of
confrontation, not of dialogue.
The attractions of certainty, commitment, identity, and
membership in a strongly defined community are as
strong as ever.
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Skepticism
As a reaction to such theories, skepticism is tempting.
These days it tends to take the intellectual form of
cultural relativism or postmodernism, that maintains:
no particular cultural tradition or conception of human
nature has any more rational justification than any other.
One of the most influential prophets of this trend was the
nineteenth-century German philosopher Friedrich
Nietzsche, who has been described as a master of
suspicion.
He was always ready (like Marx before him and Freud
after him) to diagnose an unacknowledged ideological
commitment or psychological need behind supposedly
objective claims to truth or morality.
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Skepticism
Nietzches is skeptic about the theory of knowledge and moral
philosophy
But he displays a double standard at work in his own thought,
when he asserts that
the falseness of a judgment is to us not necessarily an
objection to a judgment, the question is to what extent it is life-
advancing, life-preserving, species-preserving, perhaps even
species-breeding.
On the one hand he describes a judgment as false, and on the
other he suggests that it can have some other sort of life-
enhancing virtue.
But how does he know that it is false?
There has to be reasoning and justification in the light of
evidence available to us.
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Validity of Statements
Explaining or only explaining away
Value Judgments: A statement may be a value
judgment, saying what ought to be the case, rather
than a factual assertion about what is the case.
Analytic Statements: There is a second, quite
different, way in which a statement may be
impregnable to contrary evidence, and that is if it
is a matter of definition.
Allhumans are animals: they live, feed, breed, and
die.
But are all animals human?

54
Validity of Statements
Empirical Statements, Including Scientific Theories:
If a claim can be confirmed or disconfirmed by such
investigation- ultimately involving perceptual
experience, what we can observe by our senses- it
is called by philosophers an empirical statement.
Science certainly depends crucially on empirical
reports of observable fact.
But scientific theorizing extends to the far reaches
of space and time and to the microstructure of
matter.

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Validity of Statements
Philosophers of science have tried to elucidate
what it is that enables scientific theories to give us
reliable knowledge about such humanly
unobservable aspects of the world.
Certainly, science must depend on what we can
perceive, for example, when an experiment is
conducted, but how can scientific theories about
imperceptible entities command rational assent?
The answer is that they can be tested indirectly
they have consequences (in conjunction with other
empirical assumptions) whose truth or falsity can be
observed.

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Validity of Statements

The twentieth-century philosopher of science Karl

Popper put the emphasis on falsification rather
than verification here.
He held that the essence of scientific method is that
theories are hypotheses, which can never be known
for certain to be true but which are deliberately
put to the test of observation and experiment, and
revised or rejected if their predictions turn out to
be false.

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Why Study Human Nature?

Since managers must deal with people,

ideas regarding the basic nature of the
individual naturally assume importance in
management.
(Saha, 2007)

58
Values Concerning Individuals in the
Organization

59
Western Philosopher
Thomas Hobbes was the first philosopher in modern
times to adopt a negative view of human character.
According to Hobbes, man is
completely egocentric,
aggressively violent and

motivated by price, greed, and fear of death.

60
Western Philosophers
Hence, in a natural state mans life was solitary,
poor (lonely and unsocial), nasty (bad), brutish
(insensitive) and short.
Locke, Kant and Rousseau present the opposite
view of human nature as basically good,
cooperative and rational.
But even these philosophers conceived of mans
goodness as a quality secondary to his innate
rationality.

61
Western Philosophers

In the 20th century, the neo-Freudian

psychoanalysts, Erich Fromm and Karen Horney,
have adopted a middle position,
They theorized that a persons inclinations are not
fixed or biologically determined, as Freud thought.
The individual comes into the world with a set of
instincts, but he becomes good or bad depending
predominantly on the social process, on the quality
of his relationship with others.
62
The Organization Theories and HN

These theories are labeled as:

A. classical
B. neoclassical

C. contemporary

Each of these is fairly distinct but they are not

unrelated.

63
The Classical Theories
Max Weber, Henri Fayol, Gulick and Urwick, Taylor, and Mooney
and Reiley,
Core element between the classical organization theorists is the
efficiency and productivity.
It is clearly evident in the writing of Gulick when he wrote in 1934;
In the science of administration, whether public or private, the
basic good is efficiency. The fundamental objective of the
science of administration is the accomplishment of the work in
hand with the least expenditure of manpower and material. This
theory entirely consistent with the norms of technical rationality
and ignored social and psychological variables.
They stressed their rational and physical dimensions.

64
The Classical Theories

Assumptions
Hobbes model of man, Rational Economic man and
Theory X
Hobbes - if man left of his own devices, will do evil;

Because the two psychic forces which dominate his behavior, the
first was fear of death, the second force, was man's drive to
accumulate power to protect himself. T
Hobbes, the only rational solution for man is to create an

environment to control him.

65
The Classical Theories
Economic Man
He is rationalistic (able to calculate what will

maximize his utility), self-centered,

Mechanistic (a factor in the production process),

individualistic (responsible for taking case of

himself), and materialistic (with an overriding
concern for his material welfare).

66
The Classical Theories
Assumptions
Theory X
This theory (McGregor, 1960) represents the old-style, authoritarian
type of management and is based on three primary assumptions about
human beings:
1. The human belong has an inherent dislike of work and will avoid it if he
can.
2. Because of this human characteristic of dislike of work, most people
must be coerced, controlled, directed threatened with punishment to
achieve organizational objective.
3. The average human being prefers to be directed, wishes to avoid
responsibility, has relatively little ambition and wants security above all.
Accordingly (Northrop & Perry, 1985) the role of the manager would be to
create an atmosphere of dependency and fear if the worker is to produce to
their maximum. 67
The Classical Theories
Implications
Managers assumption will not only determine to some degree
the form of organization but will also determine the
management strategies and organization design (Edger Sehien,
1980).
Max Weber when assumed is irrational and self-utility

maximizing, the answer to him is by control the human being

through rationalism, regulations, impersonality and the
bureaucratic machinery.
Weber was looking for conformity and loyalty, which is

pessimistic approach toward the-human freedom, especially

when bureaucratization gained the upper hand the world in
his view would be nothing but an iron cage (Wrong, 1970). 68
The Classical Theories
Implications
Thus, one organization operating by these
principles has to worry:
First,
about the organization itself, the structure and
process.
Second, it will re-examine its incentive plans.
Third, it will re-examine its control structure. Workers
are viewed (Cleveland, 1985) as raw material for the
construction of organization

69
The Neoclassical Theory

Human Relation
This movement was born out of a creation to the
classical formal approach which their idea was
organization without people.
The Hawthorn study by Elton Mayo and his associates

discovered that, the amount of work carried by workers

is not determined by his physical capacity, but by his
social capacity, and workers do not react to
management and its norms and rewards as individual
but as members of groups (Etzioni, 1964).

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The Neoclassical Theory
Assumptions
Elton Mayo had based his assumption of human
nature on John Locke model of man.
Locke was not pessimistic about man
Locke believed that men are born morally neutral, not
inclined for good or evil, but they do have active minds,
the ability for rational thought and strong passions.
Since man was open to influence, the institutions within he
was reared would determine the kind of person he would
be come.
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The Neoclassical Theory
With Locke, Elton Mayo came with the same idea when
he dismissed the inherent evil of man.
Mayo discussed the role of the elite in society and he
predicted that this elite would come from the ranks of
organizational administration, and they would have to
have "social skills" and the ability to influence the
behavior of men. The new elite had to be behavioral
managers to get the cooperation necessary to make an
industrial society work.

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 The Neoclassical Theory
Assumptions
Elton Mayo (Hawthorne studies) and his associates
came with different assumptions about the nature of
man:
1. Man is basically motivated by social needs and obtains
his basic sense of identity through relationships with others.
2. Man is more responsive to the social forces of the
peer group than to the incentives and control of
management.
3. Man is responsive to management to the extent
that a superior can meet a subordinate's social needs
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(Schien, 1980).
The Neoclassical Theory

Implications
Managers here should give more attention to
the needs of employees rather than to the task, and

should be concerned with the worker's feelings and

accept work group.
Less emphasis on formalized organization.
Logic of efficiency vs. logic of sentiments

Maintain an equilibrium between the technical

organization and the human one (Korten, 1984).

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The Neoclassical Theory
In short, the strategy of this approach was a call for
a new mix of managerial skills. These skills were:
Diagnostic skills in understanding human
behavior and second,
Interpersonal skills in consoling, motivating,
leading, and communicating with workers.
Technical skills alone were not enough to cope
with the behavior discovered at the Hawthorne
works.

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The Behavioral Science School
The Behavioral Science School evolved gradually from
the Human Relations School (Argyris, Herzberg, Maslow,
McGregor, Likert and Warren Bennis)
Constantly changing set of learned behavior, influenced by
reinforcements
The loss of meaning in work is not related so much to mans social
needs,
Mans inherent need to use his capacity and skills in a mature and
productive way,
human dignity and self-actualization and
Totally affective and non-rational man.

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The Behavioral Science School
Argyris, McGregor, and Likert suggest
unleashing this energy to promote
development of the individual personality, which
will improve organizational productivity.
They argued that past notions based on Freud
were inaccurate, and when adopted into a
managerial strategy often resulted in sub-
optimal performance.

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The Behavioral Science School
McGregor (1960) re-examined how to provide effective
motivation of human effort towards organizational objectives,
and articulated a new set of assumptions about human nature
which he called Theory Y:
The expenditure of physical and mental effort in work is as natural
as play or test.
Man will exercise self-direction and self-control in the service of
objectives to which he is committed.
Human being learns under proper condition, and seek responsibility.
The potentialities of the human being are only partially
utilized under the conditions, of modern organization life.

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The Behavioral Science School

Behavioral Science School worker behavior as:

A function of both the individual (ideas, feelings,
goals). and
The environment (structure management style,
expectations).

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Implications
Assuming these new premises about human nature, one may predict
an alternative management style that relies heavily on self-
control and self-direction.
... a managers view of human nature powerfully influences his
selection of a (management) strategy. His strategy in turn,
powerfully influences the behavior of subordinates. (McGregor, p.
215).
Argyris later turn to Maslows theory of motivation to analyze
the interface between organizational structure and human need
fulfillment, with the two premises that:
1. humans have self-actualizing needs, and
2. individuals are strongly influenced by the organizational
environment 80
Contemporary Theories
Humans are innately good, and there is nothing inherently evil or
negative in individuals. Basic human nature can therefore be trusted.
Humans are influenced by their environment and they will progress
towards
fulfillment only if the conditions are favorable.
Human Behavior is a function of personality and environment
(interacting, reinforcing and constantly changing.
The human organism has an actualizing tendency as its single, basic,
underlying motive.
Humans are growth oriented and tend to strive for fulfillment and
actualization.
Favorable organization environment is required
Modern Trend: The Knowledge Worker
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 A way-forward

Knowledge worker

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The final thought

Assumptions about human nature guide

our thoughts, but no one set of
assumptions is going to cover all the
people all the time.

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Thank You!

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Thank You

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