People and Organizations Chapter 6 People and Organizations

Chapter Overview Human resource frame Human needs Maslow’s Needs Hierarchy Theory X and Theory Y Personality and organization Human capacity and the changing employment contract Lean and mean: More benefits than costs? Investing in people

Human Resource Frame Human Resource Frame: This perspective regards people’s skills, attitudes, energy, and commitment as vital resources capable of either making or breaking an enterprise.

Human Resource Frame HR Frame Assumptions: Organizations exist to serve human needs People and organizations need each other: ideas, energy, & talent When the “fit” between individuals and systems is poor, both suffer A good “fit” benefits both the individual & systems

Human Needs Needs Energize and guide behavior and vary in strength at different times Needs are a product of both nature and nurture. People are capable of enormous amounts of learning and adaptation Individual differences are present at birth Human behavior results from interplay between heredity (nature) and environment (nurture)

Maslow’s Need Hierarchy Needs arrayed in a hierarchy Lower needs are “prepotent”- to be satisfied first Higher needs become more important after lower needs are satisfied. Maslow’s hierarchy: Self-actualization Esteem Belongingness, love Safety Physiological

Maslow’s Need Hierarchy cont… Self-actualization Need to develop to one’s fullest potential Esteem Need to feel valued and to value oneself Belongingness, love Need for positive and loving relationship with others Safety Need to be safe from danger Physiological Need for oxygen, water, food, physical health

McGregor’s Theory X & Y Theory X Theory Y Workers are passive and lazy Prefer to be led Resist change Theory Y Management’s basis task is to ensure that workers meet their important needs while they work. Either theory can be a self-fulfilling prophecy for managers.

Argyris: Personality and Organization Argyris felt that: Organizations often treat workers like children Traditional management principles produce conflict between people and organizations. Task specialization produces narrow, boring jobs that require few skills. Directive leadership makes workers dependent and treats them like children.

Argyris: Personality and Organization Argyris felt that: Workers adapt to frustration in several ways: Withdraw—absenteeism or quitting Become passive, apathetic Resist top-down control through deception, featherbedding, or sabotage Climb the hierarchy Form groups (such as labor unions) to redress power Train children to believe work is unrewarding

Human Capacity and the Changing Employment Contract Handy’s “shamrock” form: Core group of managers & professionals with critical skills Basic workforce – increasingly part-time improve organization’s flexibility Contractual fringe – use of independent contractors Lean and mean (win through low costs): downsize, outsource, hire temps and contractors Invest in people (win with talent): build competent, well-trained workforce Shift from production economy to information economy produces skill gap

Conclusion Organizations need people, and people need organizations, but the trick is to align their needs. Dilemma: lean and mean vs. investing in people