Edad 201 Humanistic Theories

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Principles of Human Relations Theory

Human relations theory is characterized by a shift in emphasis fromTASK 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 organizationalbehavior--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


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Origins of Human Relations Theory

The Hawthorne Studies

Hawthorne Works of Western Electric

Company 1924 - Chicago

Research focus: Relation of quality andquantity of illumination to efficiency inindustry

Four Important Studies


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Hawthorne Studies - Implications

Illumination Study(November 1924)

The mere practice of observing

peoples behavior tends to alter theirbehavior (Hawthorne Effect)


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Relay Assembly Test Room Study(1927-1932)

Relationships between workers and theirsupervisors are powerful

Human interrelationships increase the amountand quality of worker participation in decisionmaking


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Interviewing Program (1928-1930)

Demonstrated powerful influence of upwardcommunication

Workers were asked for opinions, told theymattered, and positive attitudes towardcompany increased


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

Led future theorists to account for the existenceof informal communication

Taken together, these studies helped todocument the powerful nature of socialrelations in the workplace and movedmanagers more toward the interpersonal

aspects of organizing.


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The Emergence of Communication

Chester Barnard

Considered a bridge between classical andhuman 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 thecentrality of communication to the organizingprocess


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Six Issues Relevant to

Organizational Communication Formal vs. Informal Organization

Cooperation

Communication Incentives

Authority

Zone of Indifference


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Six Issues Relevant to Organizational Communication

Formal vs. Informal Organization

Formal Organization - a system ofconsciously coordinated activities or forcesof two or more persons. (definite,structured, common purpose)

Persons are able to communicate withone another

Willing to contribute action

To accomplish a common purpose


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Informal Organization - based on myriadinteractions that take place thourghout anorganizations history.

Indefinite

Structureless

No definite subdivisions of personnel

Results: customs, mores, folklore,institutions, social norms, ideals -- may leadto formal organization


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Cooperation

Necessary component of formal organization

The expression of the net satisfactions ordissatisfactions experienced or anticipated byeach individual in comparison with thoseexperienced or anticipated through alternativeopportunities


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Communication

Critical to cooperation

The most universal form of human cooperation, and perhaps themost complex, is speech

The most likely reason for the success of cooperation and the reasonfor its failure

System of communication: known, formal channels which are asdirect (short) as possible, where the complete line ofcommunication is used, the supervisory heads must be competent,

the line of communication should not be interrupted, and everycommunication should be authenticated.

Barnards system lacks relationship formation and maintenancemechanisms


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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, andthe receiver

Authority of position OVER Authority ofLeadership (knowledge & ability).


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Zone of Indifference - orders followed

Marks the boundaries of what employees willconsider doing without question, based onexpectations developed on entering theorganization.

Barnard drew attention away from formalorganizational structures toward communication,cooperation, and the informal organization. His

work was integrated by other theorists in the

human relations movement.


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Theory X and Theory Y: Douglas McGregor

Douglas McGregor (1906-1964)

Articulated basic principles of human relationstheory

The Human Side of Enterprise (1960, 1985) To understand human behavior, one must

discover the theoretical assumptions upon whichbehavior is based

Especially interested in the behavior of managerstoward workers

Every managerial act rests on assumptions,generalizations, and hypotheses--that is to say, ontheory . . . Theory and practice are inseparable.


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Two Objectives:

Predict and control behavior

Tap Unrealized potential Theory X - Classical Theory

Theory Y - Human Relations Theory

FOCUS: Managers assumptions about HUMAN

NATURE


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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 relativelylittle ambition, wants security.

Neither explains nor describes human nature


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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 onlystrategies

Commitment to objectives is a function of the rewards associatedwith their achievement

The average human being learns, under proper conditions, notonly 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 areunderutilized


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Theory Y Prototype: The Scanlon Plan

Participative Management Two Central Features

Cost-reduction sharing for organizational members -sharing the economic gains from improvements in

organizational performance Effective participation - a formal means of providing

opportunities to every member of the organization tocontribute 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 amongorganizational members, particularly between supervisor andsubordinate.


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Human Resources Theory

Difficult to adopt principles of human relations theory --misapplications and misunderstandings of both classical theoryand human relations theory led to Human Resources Theory

The key element to Human Relations Theory, participation, wasused only to make workersfeel as if they were part of theorganizational 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 assuch


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Major Distinctions between Human Resources and HumanRelations Theory

All people (not just managers) are reservoirs of

untapped resources managers responsibility to tapphysical and creative resources

Many decisions can be made more effectively andefficiently by workers most directly involved with theirconsequences

Relationship between employee satisfaction andperformance - improved satisfaction and moralecontribute back to improved decision making andcontrol


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Increased satisfaction is related to the improveddecision making and self-control that occursdue to participation that is genuinely solicited

and heard

Two prevalent Human Resources Theorists

Rensis Likert Blake & Mouton


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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 tendtoward System IV; low producing units favor System I

System I - Exploitative Authoritative

System II - Benevolent Authoritative

System III - Consultative

System IV - Participative


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Blake and Moutons Managerial Grid

Stresses interrelationship between production(task) and people

Managements main purpose is to promote aculture in the organization that allows for highproduction at the same time that employees arefostered in their professional and personaldevelopment

Managerial Grid - now Leadership Grid


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FOCUS: Managers Assumptions about CONCERN forPEOPLE and CONCERN for PRODUCTION

Concern for PEOPLE Degree of personal commitment to ones job

Trust-based accountability (vs. obedience-basedaccountability)

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 personalitytraits of the manager -- instead, indicate a specificorientation to production and people


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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


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Organizations

Human Relations Theory

The Hawthorne Studies

Chester Barnard

McGregors Theory X and Theory Y


Likerts Systems Theory (Four Systems ofManagement)

Blake and Moutons (Blake and McCanse)Managerial Grid

The principles of human resources theory attempt tointegrate the concern for production from classicaltheory with the concern for the worker from humanrelations theory -- more effective and satisfying!


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Edad 201 Humanistic Theories