Human Relations Era of Management 1930-1964

Prepared by:Chris Ahearn, Mary Jo Conery, Keith Greer, Linda Griffin, Cliff Moon, Ann Zeches

Leadership Eras

1900-1929: Scientific Management 1930-1964: Human Relations 1965-1980: Systems/Situational 1981-present: Emerging Theories

Historical Context

The Human Relations Era emerged after the Depression when

institutions failed people. people were treated as if superfluous and

expendable. having to do without was commonplace.

Transition from Scientific Management to Human Relations

Scientific Management– focused on productivity

and profit– workers were viewed as

extensions of the machine

– time/motion studies– fragmentation of work

OUTCOME– did not address the

emotional and social needs of employees

– resulted in worker apathy, boredom, low creativity, wasted human resources

Human Relations Theory

Essential Concept

Leaders need to understand workers as human beings with social and emotional needs.

Key Principles

Employee satisfaction increases productivity.

Key Principles

Employee satisfaction increases productivity. A network of human relations exists in any

workplace environment.

Key Principles

Employee satisfaction increases productivity. A network of human relations exists in any

workplace environment. The workplace environment should focus on

needs of employees.

Key Principles

Employee satisfaction increases productivity. A network of human relations exists in any

workplace environment. The workplace environment should focus on

needs of employees. The feelings of people are as important as

the logical and economic aspects of an organization.

Key Principles

Employee satisfaction increases productivity. A network of human relations exists in any

workplace environment. The workplace environment should focus on

needs of employees. The feelings of people are as important as

the logical and economic aspects of an organization.

Management requires effective social skills.

Assumptions

Human beings are motivated by needs.

Assumptions

Human beings are motivated by needs. Human beings are not always logical.

Assumptions

Human beings are motivated by needs. Human beings are not always logical. Human beings are interdependent and

behavior is shaped by the social context.

Assumptions

Human beings are motivated by needs. Human beings are not always logical. Human beings are interdependent and

behavior is shaped by the social context. The informal group impacts job roles.

Assumptions

Human beings are motivated by needs. Human beings are not always logical. Human beings are interdependent and

behavior is shaped by the social context. The informal group impacts job roles. There is no automatic correlation between

the individual and organizational needs.

Assumptions

Human beings are motivated by needs. Human beings are not always logical. Human beings are interdependent and

behavior is often shaped by the social context. The informal group has a strong impact on job

roles. There is no automatic correlation between the

individual and organizational needs. Teamwork is essential.

Human Relations Theorists

Mary Parker Follett Elton Mayo Abraham Maslow Douglas McGregor Chester Barnard Frederick Herzberg

Mary Parker Follett

1868-1933 Known as a visionary genius Creative Experience (1924) Influenced theorists of the Human

Relations Era and beyond

“Just about everything written today about leadership and organizations comes from Mary Parker Follett’s writings and lectures.”

Warren Bennis

Her Revolutionary Ideas

Relationships matter. Mutual influence is developed when people work together.

Management is a function, not a toolbox. Leadership is a dynamic force between and

among people. Do not try to control people. Control the

situation together.

Ahead of Her Time

Conflict can be constructive. There is no progress without conflict.

All organizations are social organizations including business and government.

The individual in the organization must have a measure of control.

Quotes from Mary Parker Follett

“Whereas power usually means power-over, …it is possible to develop the conception of power-with.”

“The best leader has no followers, but men working with him. The great leader wants to be a leader of leaders.”

George Elton Mayo

1880-1949 Successful Academic Clinical Psychologist Public Speaker Hawthorne Studies

Hawthorne Studies

1927-1932 Western Electric Hawthorne Works in Chicago Purpose: to study productivity and work conditions Researchers desired to find what kind of changes

would influence productivity Six women from assembly line were segregated with

friendly supervisor so they could be evaluated for productivity using the following work condition variables: breaks, temperatures, hours, humidity

Results of Studies

The women became a team Developed an increased sense of

responsibility Greater productivity

THE HAWTHORNE EFFECT

The need for recognition, security and sense ofbelonging is more important than the physical conditions under which the employee works.

ATTENTION = PRODUCTIVITY

Mayo’s Contribution

Mayo had discovered a fundamental concept. Workplaces are social environments and within them, people are motivated by much more than self-interest.

Thus,

THE HUMAN RELATIONS ERA HAD BEGUN!

Abraham Maslow

1908-1970 Neo-Human Relation

Theorist Investigations of human

behavior occurred between 1939 and 1943

Individuals are born with innate needs

The Humanistic Psychologist

Hierarchy of Needs Theory

Physiological Safety Love Esteem Self-Actualization

Characteristics of needs When lower-order need is satisfied, a higher-order need appears that needs to be satisfied Order of needs from lowest to highest The lower the need, the > its strength, potency, or priority Higher needs also appear later in one’s life

Hierarchy of Needs

Basic Needs Hunger, thirst, sleep… Safety Needs Protection against

danger

Love Need Gregariousness Esteem Need Desire for self-respect Self-Actualization Job satisfaction

Contributions

In the past, management reward systems have attempted to satisfy an individual’s lower level needs, safety, psychological, and the threat to a worker or his family

Management reward systems are now endeavoring to satisfy the individual’s high level needs for esteem and self-fulfillment

Douglas McGregor

1906-1964 Wrote The Human Side

of Enterprise (1960) Coined the terms

Theory X and Theory Y: Ways of viewing people and their motivation

Contributions

Theory X Assumptions: Work is inherently distasteful to most people; will

avoid it if at all possible Most people must be controlled and threatened

before they will work hard enough Most people prefer to be directed, dislike

responsibility, are unambiguous, desire security

Contributions

Theory Y Assumptions: Work is as natural as play if conditions favorable People will direct themselves if committed to the

aims of the organization If a job is satisfying, the result will be commitment to

the organization The average person learns and seeks responsibility Imagination, creativity, and ingenuity can be used to

solve problems; the average mind is underutilized

Chester Barnard

1886-1961 Sociological Theorist The Functions of the

Executive Progressive Contributions

on the Organization

Barnard’s Influence on Executive Education

Role of the Executive Theory of Authority Zone of Indifference Reinventing Leadership      Unforeseen Outcomes of the Liberal Arts

Educational Approach

 Human Relations in Management

Role of the Executive (superordinate) and the employee (subordinate)

Human Relations Management – advancing democratic ideals– advantages and problematic issues

Barnard’s Cautions for Future Organizations

In His Own Words. . .– Human and cultural diversity awareness– Abnormality of organizational success– Constraints on the “executive art”– Teachings applied to modern education (K-12)

Frederick Herzberg

1923 – 2000 Pioneer of Motivation Work itself can be a

motivator

“One of the most influential management teachers and consultants of the postwar era. . .”

Accomplishments

•Originator of Motivation-Hygiene Theory

•Researched work-related motivations of thousands of employees

•Father of Job Enrichment

•Authored influential books and articles:

- The Motivation to Work

- Work and the Nature of Man

- “One More Time: How Do You Motivate Employees?”

- “Managers or Animal Trainers?”

Herzberg’sMotivation-Hygiene Theory

Hygiene Factors (Job Environment/Animal Needs/Extrinsic)

Company Policy & Administration

Supervision Interpersonal Relations Working Conditions Salary, Status, and Security

Motivation Factors(Job Content/Human Needs/Intrinsic)

Achievement Recognition Work Itself Responsibility Advancement and Growth

Herzberg’s Contributions

Two Factor Theory: hygiene and motivation Satisfaction and dissatisfaction at work arose from different

factors; were not opposing reactions to same factors Shaped modern thinking about reward and recognition in the

workplace Motivation comes from job content Job Enrichment versus Job Rotation (management by motivation

v. management by movement)

“If you want people to do a good job for you, then you must give them a good job to do.”

Conclusions About the Era

Lingering Impacts– management had a positive

attitude towards workers– efforts to enrich jobs to

keep them interesting– gave rise to the Human

Resources approach

Criticisms– too concerned with worker

satisfaction– not much actual evidence

supporting it, although it held popular appeal

– sometimes implemented superficially

Conclusions About the Era

“One best way” approaches to management not the answer

Scientific = focus on production

Human Relations = focus on personnel

Social Systems/Situational Era-interaction of people and production

-situation as determining factor in

management approaches