Human relations approach Account for individual needs of employees Non-financial reward Social interaction

1. Human Relations &
Human Resources
Approach
Chapter 3
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2. Classical Approach
Doesn’t:
 Account for individual needs of
employees
 Non-financial reward
 Social interaction

3. Human Relations
Approach

4. Hawthorne Studies
 Influenced transitions from classical
approach to human relations approach
 Illumination Studies
• Mayo interested in how changes in work
environment would impact productivity
• Found unexpected results
 Hawthorne Effect
• The more attention given to someone, the more
likely their behavior will change
• Social factors influence productivity

5. Maslow’s Hierarchy of
Needs Theory
 Humans are motivated by basic needs
 Five Levels-lower order needs must be
met before reaching higher needs
 Continue shift of emphasis to social
interaction and managerial attention in
the workplace

6. Maslow’s Hierarchy of
Needs Theory
 1. Physiological
– “living wage” to purchase food and clothing
 2. Safety
– Free from danger (safe working conditions)
 3. Affiliation
– Need to belong, social relationships with co-workers
 4. Esteem
– Sense of achievement and accomplishment (internal)
– Compensation and reward (external)
 5. Self-Actualization
– Job that allows growth and creativity

7. Mcgregor’s Theory X
and Theory Y
 The assumptions managers have about
the function of an organization
– Theory X postulates the negatives about
human nature (pg. 40)-Classical approach
– Theory Y postulates the positive about
human nature (pg. 41)-Human relations
approach
– These categories are not mutually exclusive
– Principles highlight human needs and
satisfaction with those needs being met

8. Human Relations
Approach
 Need for attention
 Social interaction
 Individual achievement
 If management pays attention to these,
worker productivity will increase!

9. Human Resources
Approach

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Human Resources Approach
 Acknowledges contributions of the
classical and human relations
approaches to organizing
 Recognizes that individual labor is
crucial in meeting organizational goals
 Recognizes that individuals have
feelings & needs
 Emphasizes the employees’ cognitive
contributions

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Recap on Human
Relations
 Lack of research and data to support
relationship b/w fulfilling needs &
satisfaction.
 Hawthorne Studies served as
springboard to Human Relations
 Managers still control-fear of misuse &
manipulation by management
 Problem with relationship b/t worker
satisfaction and productivity

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Flow Chart on H.R.
Principle
Work
Factors
Satisfaction
For Higher
Order Needs
Job
Satisfaction
Produc-
tivity

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Flowchart Disconnect?
 The relationship b/w “job satisfaction” &
“productivity” is suspect
 Is “satisfied” the same as “content?”
 Are there other “things” that motivate us
to be productive besides satisfaction?
 Can you be satisfied and not
productive?
 Misuses of principles? (EX of PDM)

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Blake and Mouton’s
Managerial Grid
 Tool for training managers in leadership
styles that would enhance
organizational efficiency while
stimulating individual creativity
 Leaders are most effective when they
exhibit a concern for workers and
production (combines classical &
human relations)

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Blake and Mouton’s
Managerial Grid
 5 prototype styles (pg. 52)
– Impoverished (1,1)
– Country Club (1,9)
– Authority-Compliance (9,1)
– Team (9,9)
– Middle of the Road (5,5)

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Likert’s System IV
 Focus on organizational form that can
incorporate ideals of human resources
 Motivational factors, decision making, goal
setting, influence, performance
 Four types are more or less effective in
satisfying org. and individual goal
– System I- Exploitive/Authoritative
– System II- Benevolent/Authoritative
– System III- Consultative
– System IV- Participative organization
 Linking Pin: An individual with membership in
various work groups

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Communication
Implications
 Content-task, social, & innovation
 Direction-all directions, team based,
free flow from various locations
(challenge is to be able to access &
utilize)
 Channel-all sorts, value on which ever
channel fits best to content
 Style-informal-congruent with “all-
direction team based” communication

18. Human Resource
Organizations Today
Learning organizations
– Emphasize mental flexibility
– Team learning
– A shared vision
– Complex thinking
– Personal mastery
– Emphasizes participation and dialogue in the
workplace
– Knowledge management (creation,
development, application)

19. Pfeffer’s Seven Practices of
Successful Orgnizations
 Employment security
 Selective hiring
 Self-managed teams & decentralization
 Comparatively high & contingent
compensation
 Extensive training
 Reduction of status differences
 Sharing information

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So, When is HR
Appropriate?
 Examples of Programs that stress team
management and employee
involvement
– Japanese management systems
– Scanlon Plan
– TQM
– Just in Time management

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When Doing HR, Consider
This!
 Know when team-based management is
appropriate.
 Consider the attitudes of top (and bottom)
management.
 Deal with cynicism about change.
 Understand the nature of empowerment.
 Facilitate the translation program (how to
create a new climate within the
organizational culture.