Reframing Organizations, 3 rd ed.

Chapter 6 People and Organizations

Human Resource Frame Human Needs What Needs do People Have? Theory X and Theory Y Personality and Organization Human Capacity and the Changing Employment Contract

People and Organizations (II) Lean and Mean: More Benefits than Costs? Investing in People

Human Resource Assumptions Organizations exist to serve human needs People and organizations need each other When the fit between individual and system is poor, one or both suffer A good fit benefits both

Human Needs The concept of “need” is controversial Economists: people’s willingness to trade dissimilar items disproves usefulness of concept Psychologists: need, or motive is a useful way to talk enduring preferences for some experiences compared to others Needs are a product of both nature and nurture Genes determine initial trajectory Experience and learning profoundly influence preferences

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

McGregor’s Theory X and Theory Y Theory X 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 self- fulfilling prophesy

Argyris: Personality and Organization 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 Workers adapt to frustration: 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) Train children to believe work is unrewarding

Human Capacity and the Changing Employment Contract Handy – Shamrock form Core group of managers Basic workforce – part-time or on shifts to increase organization’s flexibility Contractual fringe – temps, 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 work force 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. invest in people