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