Understanding Behavior, Human Relations, and Performance 1 Understanding Behavior, Human Relations, and Performance

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 overemphasized Myth 4: Leaders are born, not made

Goal of Human Relations Create a win-win situation by: satisfying employee needs while 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 roles throughout their lives throughout each day Organizations are trying to give employees a better quality of work life

Human relations take place at the group and organizational levels Levels of Behavior Human relations take place at the group and organizational levels Individual Group Organizational

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 objectives Created 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

an effect on performance Human relations has an effect on performance

Performance (1 of 2) Performance – the extent to which expectations or objectives have been met Measured on a continuum contrasted by high and low levels of performance Ranked 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 system emphasis is on the relationship between its parts Systems effect all people in the organization are affected by at least one other person each 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 group To have high levels of performance, the organization must have high-performing individuals and groups The 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 Ineffective individuals Exhibit 1.2 Ineffective groups

Systems thinking is needed to understand performance

The Relationship Between Behavior, Human Relations, and Performance Ineffective behavior Exhibit 1.3 Ineffective human relations

Human Relations: Past, Present, and Future The 1980s The 1990s 21st Century Challenges Elton Mayo and the Hawthorne Studies The 1930s to the 1970s The Early Years: Frederick Taylor and Robert Owen

The Early Years: Frederick Taylor and Robert Owen Father of Scientific Management Focused on production, not people Assumed workers always acted rationally and were motivated simply by money Robert Owen Father of personnel administration Believed that profit would be increased if employees: worked shorter hours were paid adequately were provided with sufficient food and housing

Elton Mayo (1 of 2) The father of human relations Conducted research at the Western Electric Hawthorne Plant Hawthorne 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 money Informal work groups have a powerful influence within the organization Supervisor-employee human relations affects the quality and quantity of employee output Many employee needs are satisfied off the job Employee relations affect employee performance

The 1930s to the 1970s Growth of labor unions Leadership and motivation studies Management-by-Objectives Theory X and Theory Y Transactional analysis (TA) and sensitivity training Quality circles The term human relations replaced by the term organizational behavior

The 1980s to the 1990s (1 of 2) 1980s Theory 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) 1990s Trend toward increased participation of employees to improve human relations and organization performance continued Movement from participative management to high-involvement management High-involvement management – greater levels of participation at the lowest levels of the organization Use of groups and teams increased

Current and Future Challenges in the 21st Century Globalization, change, innovation, and speed Knowledge is the key resource Ethics Globalization, productivity, quality, and teams Diversity: aging, gender, and work-family issues Technology: Internet and e-business and the virtual office

Human Relations Guidelines 1. Be optimistic 2. Be positive 3. Be genuinely interested in others 4. Smile and develop a sense of humor 5. Call people by name 6. Listen to others 7. Help others 8. Think before you act 9. Create a win-win situation 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: Change the other person Change the situation Change yourself