1. Development in Organization Theory Human Relations Approach

2. Learning Objectives 1.Understand the reasons for emergence of Human relations approach 2.Identify the key features and proponent of Human relations approach 3.Describes the differences between the Human relations approach and Classical approach to organizational design

3. The Human Relations Approach The main precepts of HR approach are : 1.People are emotional rather than economic rational beings 2.Organizations are co-operative, social systems rather than mechanical ones 3.Organizations are composed of informal structures, rules and norms as well as formal practices and procedures

4. The Hawthorne Experiments Features: Elton Mayo (1880-1949) He is the founder and leading light of the human relations movement. Hawthorne Experiments carried out at Western Electric’s Hawthorne Works in Chicago in 1920 and 1930. Hawthorne Experiments have 2 phases : 1. Hawthorne Illumination Tests (HIT) which design to examine the effect of various levels of lighting on workers productivity.

5. 2. The company wanted to establish the effects on productivity of increased rest periods, free refreshment, change payment system, better & friendly communication etc. The result put forward 2 major propositions: 1.The importance of informal groups within the formal structures of organizations 2.Human have a deep need for recognition, security and belonging.

6. Co-operative System Features : Chester Barnard (1886-1961) Book : The Functions of the Executive He is one of the first to treat organization as system rather than a machines. A organization is a co-operative system : 1.Without willingness of its members to make contributions and goals, it cannot operate effectively

7. 2. The flow of authority is not from the top down but from bottom up 3. A communication as being the key function of the executive 4. Workers needed to be supported by other psychological and sociological motivators than material incentives.

8. Hierarchy of Needs Features : Abraham Maslow (1908 – 1970) He (1934) identified 5 distinct forms of human need which placed in a hierarchical order : 1.Physiological needs; hunger,thirst, sleep etc 2.Safety needs; desire for security and protection 3.Social needs; need to belong, beloved, friends 4.Esteem needs; to be respected, esteemed 5.Self-actualization needs; achieve one’s full potential.

9. Theory X – Theory Y Features : Douglas McGregor (1906-1964) Book : The Human Side of Enterprise (1960) The best way to manage people were based on their assumption about human nature. There are 2 basic views of human nature : 1.Theory X – negative view 2.Theory Y – positive view

10. Theory X, which dominated the literature and practice of manager, has assumptions : The average person dislike work and will avoid it wherever possible Employee must be coerced, controlled with punishment Most people try to avoid responsibility Workers place security above others factors relating to employment and have little ambition

11. Theory Y, comprises a group of assumptions : Most people can view work as being as natural as rest or play Workers capable of exercising self direction and self control The average person will accept and seek responsibility if they are committed to the objectives being pursued Ingenuity, imagination,creativity,and the ability to make good decisions are widely dispersed among population

12. The Death of Bureaucracy Features : Warren Bennis (1925-) Victorian age were dead and new conditions were emerging to which bureaucracy was no longer suited. These condition were follows : 1.Rapid and unexpected change 2.Growth in size 3.Increasing diversity 4.Change in managerial behavior

13. Job Design: Operationalising Human Relations Job design is a direct attack on the precepts of the Classical approach. In practice, there are 3 variants of job design: 1.Job enlargement 2.Job enrichment 3.Socio-technical systems theory

14. In 1950s and 1960s, job design emerged and attracted so much attention for 3 reasons : 1.The first flow from the work of Maslow (1943); Job have to be designed to meet their psychological needs 2.As markets have become more global, competitive and volatile, organizations need to be more responsive to the needs of their customers 3.Low unemployment in 1950 – 1970 led to high rates of labour turnover, endemic industrial unrest and organization with poor design

15. Summary The Human Relations model stresses 3 elements : 1.Leadership and communication 2.Intrinsic job motivation (as well as extrinsic rewards) 3.Organization structures and practices which facilitate flexibility and involvement The elements are underpinned by 2 propositions : 1.Organizations are complex social systems 2.Human beings have emotional as well as economic needs