Philosophy of Human Resources
Before we begin to consider the concepts, tools, and skills involved in Human
Resource Management, it is essential to critically examine the underlying
philosophy which influences our perceptions of people and the assumptions implicit
in our thinking. Over 40 years ago, a social scientist, Douglas McGregor in his
ground breaking book, The Human Side of Enterprise, challenged us to examine
such assumptions or beliefs about human nature and differences.
Some of his threshold assertions were:
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Every managerial act rests on theory.
Conventional management thinking focuses on control and the notion
that authority is the central, indispensable means of control.
Influence and persuasion can be equally effective means of social control.
Behind every managerial decision or action are assumptions about
human nature and behavior.
THEORY X: The assumptions implicit in the traditional management philosophy
of direction and control are referred to as “Theory X” by McGregor and are:
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The average human being has an inherent dislike of work and will avoid
if he/she can.
Because of this human characteristic of dislike of work, most people must
be coerced, controlled, directed, threatened with punishment to get them
to put forth adequate effort toward the achievement of organizational
objectives.
The average human being prefers to be directed, wishes to avoid
responsibility, has relatively little ambition, wants security above all.
The above assumptions reflect a more general assumption about the
“mediocrity of the masses”.
Essentially, people cannot be trusted to act responsibly and will likely
take advantage of situations with few controls to enhance their own self
interest. (Added by SJM)
Such largely negative assumptions about people may be reinforced by philosophical,
political, and religious belief systems which view human nature in a negative light,
e.g., man is inherently evil or sinful or the human condition is ultimately hopeless.
McGregor, however, challenged such assumptions based on social science theory
and research, and offered a more positive view of people. He asserted a radically
different set of assumptions which challenged prevailing management theory, theory
which continues to be reflected in management practices today.
THEORY Y: The assumptions implicit in the modern management theory of
influence, empowerment, team performance, and high performance organizations
are referred to as “Theory Y” by McGregor and are:
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The expenditure of physical and mental effort is as natural as play or
rest.
External control and the threat of punishment are not the only means for
bringing about effort toward organizational objectives. Man will exercise
self-direction and self-control in the service of objectives to which they
are committed.
Commitment to objectives is a function of the rewards associated with
their achievement.
The average human being learns, under proper conditions, not only to
accept but to seek responsibility.
The capacity to exercise a relatively high degree of imagination,
ingenuity, and creativity in the solution of organization problems is
widely, not narrowly, distributed in the population.
Under the conditions of modern industrial life, the intellectual
potentialities of the average human being are only partially utilized.
Essentially, most people can be trusted to act responsibly and ethically in
balancing personal interests with those of an organization.
These Theory Y assumptions involve sharply different implications for managerial
strategy than do those of Theory X. They are dynamic rather than static: they
indicate the possibility of human growth and development; they stress the necessity
of selective adaptation (and the use of influence and persuasion) rather than a single
absolute form of control; they are framed in terms of a human resource which has
substantial potentialities rather than one which is unworthy of trust and confidence.
Theory Y emphasizes “integration”, i.e., the creation of conditions such that the
members of an organization can achieve their goals BEST by directing their efforts
toward the success of the enterprise.
PYGMALION EFFECT: The concept of self-fulfilling prophecy or “Pygmalion
Effect” is useful in understanding the power of such assumptions in influencing the
selection of managerial methods and tools, and the effect they have on human
behavior.
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Theory X assumptions that people are inherently lazy and avoid
responsibility often lead managers to use methods of tight control and
coercion, and if people don’t comply with directions, the use of
punishment. Such methods when used often influence people to resist
their use, to comply with but not commit to organizational objectives, and
to provide a level of effort adequate to protect themselves from
punishment, but one that is often well under potential. Such behavior
tends to confirm the underlying assumptions. And so, the cycle of
assumptions > treatment > efforts is reinforced and becomes a selffulfilling prophecy. Such a Pygmalion Effect is subtle and powerful in
shaping the work culture, employee attitudes, and of course, management
perceptions and philosophy.
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Theory Y assumptions that view people in a more positive light, justified
by social science research, create the same type of Pygmalion Effect, but
with dramatically different results. Studies of high performance
organizations clearly indicate that their management philosophy is based
on Theory Y assumptions and the work culture reinforces such.
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Exercise: Just ask yourself to describe the “boss” for whom you have
done your best work? List the characteristics of this person and the work
culture they are in, and then infer from those characteristics, what the
underlying assumptions about people were. Surprised to discover mostly
Theory Y assumptions? Most people tend to assume that they need to be
Theory X managers to be effective and to “maintain control” or else their
employees will take advantage of them……BUT most people also prefer
to work in a Theory Y culture for a Theory Y manager. Why do you
suppose? What type of manager do you want to be?
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Challenge: How can an organization change from a Theory X to Theory
Y management philosophy and style? It generally takes a comprehensive
organizational assessment and a long-term intervention to openly address
the patterns of behavior in each phase of the self-fulfilling prophesy cycle:
assumptions > treatment > efforts. It entails realigning the entire HRM
system to support such change, and often rethinking the business strategy
of the firm itself. In promoting work culture change, consider the 7
characteristics of high performance organizations (Pfeffer, 1998): (1)
openness of information; (2) reduction of status differences; (3)
employment security; (4) selective hiring; (5) extensive training; (6) team
management; and (7) performance based compensation.
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Perception Checking: This skill is useful in inviting another person to
disclose their feelings and assumptions to you. When someone acts in a
certain manner, simple state your perception of what may be motivating
their behavior as accurately as possible and ask if it is accurate. For
example, if someone hesitates to give you a certain task to perform, you
could state: “I sense that you may be uncomfortable in having me
perform that task; is that correct?” If you have a reasonably authentic
relationship with them, they may respond: “No, it’s just not a priority
right now.” Or “Yes, I am concerned that you may become consumed by
it and take effort away from the primary task.” Clearly, this skill entails
some social risk taking. If the response is less honest, then that’s a clear
sign that some relationship building is needed.