Development in
Organization Theory
Human Relations
Approach
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
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
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.
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.
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
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.
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.
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
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
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
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
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
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
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