2. Understanding Behavior, Human Relations, and Performance1
Understanding Behavior, Human Relations, and Performance

3. Human relations means interactions
with people

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. Group, Individual and Organizational Levels of Behavior
Exhibit 1.1

11. an effect on performance
Human relations has
an effect on performance

12. 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

13. Performance (2 of 2)
Performance levels are more meaningful when compared to:
past performance
the performance of others within and/or outside the organization

14. 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

15. 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

16. The Relationship Between Individual and Group Behavior and Organizational Performance
Ineffective individuals
Exhibit 1.2
Ineffective groups

17. Systems thinking is needed to understand performance

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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. Handling Human Relations Problems (2 of 2)
Three alternatives to resolving human relations problems:
Change the other person
Change the situation
Change yourself