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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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Human Resources Theory
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
Human Resources Theory
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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