Strategic Planning and Goal Setting
Chapter 24Chapter 24
Human relations means interactions
with people
Myths of Human Relations
Myth 1: Technical skills are more important than human relations skills
Myth 2: Human relations is just common sense
Myth 3: Diversity is overemphasizedMyth 4: Leaders are born, not made
Goal of Human Relations
Create a win-win situation by:satisfying employee needswhile achieving organizational objectives
Win-win situation:occurs when the organization and the employees
get what they want
The Total Person Approach
Realizes that an organization employs the whole person, not just his or her job skills
People play many rolesthroughout their livesthroughout each day
Organizations are trying to give employees a better quality of work life
Levels of Behavior
Human relations take place at the group and organizational
levels GroupGroup
OrganizationalOrganizational
IndividualIndividual
Individual and Group Level Behavior
Group behavior – consists of the things two or more people do and say as they interact
Individual behavior – influences group behavior
Organizational Level Behavior
Organization – a group of people working to achieve one or more objectivesCreated to produce goods and services for the
larger society
Organizational behavior – the collective behavior of an organization’s individuals and groups
Group, Individual and Organizational Levels of Behavior
Exhibit 1.1
Human relations has
an effect on performance
Performance (1 of 2)
Performance – the extent to which expectations or objectives have been metMeasured on a continuum contrasted by high and
low levels of performanceRanked on a scale of 1 through 10
Performance is absolute when objectives are met
Performance is a relative term
Performance (2 of 2)
Performance levels are more meaningful when compared to:past performance the performance of others within and/or outside the
organization
The Systems Effect (1 of 2)
A system is a set of two or more interactive elements
The systems approach focuses on the whole systememphasis is on the relationship between its parts
Systems effect all people in the organization are affected by at
least one other personeach person affects the whole group/organization
The Systems Effect (2 of 2)
The organization’s performance is based on the combined performance of each individual and groupTo have high levels of performance, the
organization must have high-performing individuals and groupsThe destructive behavior of one individual/ group hurts
other groups, departments, and in turn the organization
The Relationship Between Individual and Group Behavior and Organizational Performance
Organization
Individual Group
Group
Group
Individual
Individual
Organizatio
n Organization
Ineffective groupsIneffective individuals Exhibit 1.2
Systems thinking is needed
to understand performance
The Relationship Between Behavior, Human Relations, and Performance
PerformancePerformance
BehaviorBehavior Human Human RelationsRelations
Human Human RelationsRelations
Human Human RelationsRelations
BehaviorBehavior
BehaviorBehavior
Perform
ance
Perform
ance Performance
Performance
Ineffective behavior Ineffective human relationsExhibit 1.3
Human Relations: Past, Present, and Future
The 1980s The 1990s21st CenturyChallenges
Elton Mayo andthe Hawthorne
Studies
The 1930s tothe 1970s
The Early Years:Frederick Taylor
andRobert Owen
The Early Years: Frederick Taylor and Robert Owen Frederick Taylor
Father of Scientific Management
Focused on production, not people
Assumed workers always acted rationally and were motivated simply by money
Robert OwenFather of personnel
administrationBelieved that profit
would be increased if employees:
worked shorter hourswere paid adequatelywere provided with
sufficient food and housing
Elton Mayo (1 of 2)
The father of human relationsConducted research at the Western Electric
Hawthorne PlantHawthorne effect – refers to an increase in
performance caused by the special attention given to employees, rather than tangible changes in work
Elton Mayo (2 of 2)
Other key conclusions from his studies:Employees have many needs beyond those
satisfied by moneyInformal work groups have a powerful influence
within the organizationSupervisor-employee human relations affects the
quality and quantity of employee outputMany employee needs are satisfied off the jobEmployee relations affect employee performance
The 1930s to the 1970s
Growth of labor unionsLeadership and motivation studiesManagement-by-ObjectivesTheory X and Theory YTransactional analysis (TA) and sensitivity
trainingQuality circlesThe term human relations replaced by the
term organizational behavior
The 1980s to the 1990s (1 of 2)
1980sTheory Z - integrates common business practices
in the United States and Japan into one middle-ground framework appropriate for use in the United States
The 1980s to the 1990s (2 of 2)
1990sTrend toward increased participation of employees
to improve human relations and organization performance continued
Movement from participative management to high-involvement managementHigh-involvement management – greater levels of
participation at the lowest levels of the organizationUse of groups and teams increased
Current and Future Challenges in the 21st Century
Globalization, change, innovation, and speedKnowledge is the key resourceEthicsGlobalization, productivity, quality, and
teamsDiversity: aging, gender, and work-family
issuesTechnology: Internet and e-business and the
virtual office
Human Relations Guidelines
1. Be optimistic1. Be optimistic3. Be genuinely
interested in others
3. Be genuinely interested in others
5. Call people by name
5. Call people by name
7. Help others7. Help others
9. Create a win-win situation
9. Create a win-win situation
8. Think before you act
8. Think before you act
6. Listen to others6. Listen to others
2. Be positive2. Be positive
4. Smile and develop a sense
of humor
4. Smile and develop a sense
of humor
Exhibit 1.4
Handling Human Relations Problems (1 of 2)
Psychological contract – the shared expectations between people
Human relations problems often occur when the psychological contract is not met
Handling Human Relations Problems (2 of 2)
Three alternatives to resolving human relations problems:1. Change the other person
2. Change the situation
3. Change yourself