Human Relation Aaproach

Scientific management remained concerned with the the efficiency and productivity of workmen at the shop floor.

Fayol’s functional approach to management aimed as improving the managerial activities and performance at top level in the organization.

The classical school did not give importance to the human aspects of the workers.

Therefore, they did not achieve a high level of production efficiency and co-operation between the management and workers

New experts drew their attention from “work” emphasis to “worker” emphasis.

earlier approaches to management were incomplete and insufficient.

little recognition of the importance of workers as human beings, their attitudes, feelings, needs and requirements.

Behavioral theorists viewed it from the individuals point of view.

i.e. attitudes behaviour group processes etc.

standardization of work or monetary rewards offered for efficiency.

Elton Mayo is the founder of this theory.

The human relations experts tried to integrate (combine)

Psychology and Sociology with Management.

According to them, organisation is a social system of interpersonal and inter group relationships.

They gave importance to the management of people. They assumes that happy workers are productive workers.

They felt that management can get the work done from the workers by satisfying their social and psychological needs.

PRINCIPLES OF HUMAN RELATIONS APPROACH Human beings are not interested only in financial gains. They also

need recognition and appreciation.

Workers must be treated like human beings and not like machines.

Managers should try to understand the feelings and emotions of the workers.

An organisation works not only through formal relations, but also through informal relations.

Therefore, managers should encourage informal relations in the organisation along with formal relations.

Workers need a high degree of job security and job satisfaction. Therefore, management should give job security and job satisfaction to the workers.

Workers want good communication from the managers. Therefore, managers should communicate effectively without feelings of ego and superiority complex.

In any organisation, members do not like conflicts and misunderstandings.

Therefore, managers should try to stop conflicts and misunderstandings among the members of the organisation. Trade union

Workers want freedom. They do not want strict supervision. Therefore, managers should avoid strict supervision and control over the workers.

Employees would like to participate in decision making, in those matters affecting their interests.

Therefore, management must encourage workers' participation in management.

This will increase productivity and job satisfaction.

HAWTHORNE EXPERIMENTS The human relations approach to management

developed as a result of a series of experiences conducted by Elton Mayo and his associates at the Hawthrone plant of the Western Electric Company at Chicago in United States.

The Hawthrone studies were aimed at finding out what factors really influenced the productivity

and work performance of workers.

These experiments were made with respect to – different levels of illumination in the work place

changing in working conditions like hours of work, lunches, rest periods and how group norms affect group effort and output.

Mayo (human relations approach) Elton Mayo founded the Human Relations Movement.

Experiments undertaken by Mayo took place at the Hawthorne plant in the USA during the 1930s.

His work illustrated that if the company or managers took an interest in employees and cared for them, it had a positive effect on their motivation.

When managers took a greater interest in employees they felt more valued and empowered.

His work also showed that employees often work best in teams.

He also showed that they were more motivated if they were managed and consulted more.

Human Relations Concepts: Findings of Hawthorne Studies

1. Physical environment at work place (i.e., working conditions) do not have any material effect on the efficiency of work.

2. Social or human relationship influenced productivity more directly than changes in working conditions.

3. Favourable attitudes of workers and work-teams towards their work were more important factors determining efficiency.

4. Fulfillment of workers social and psychological needs have a beneficial effect on the morale and efficiency of workers.

5. Employee groups formed on the basis of social interactions and common interest exercised a strong influence on workers, performance.

In other words, informal organization controlled the norms established by the groups in respect of each member’s output.

6. Workers cannot be motivated solely by economic reward. More important motivators are job security, recognition by superiors and freedom to take initiative and to express their individual opinions as matters of their own concern

Modern Approach to Management

APPROACHES TO MANAGEMENT

1. Classical Approach to mgt.Scientific AdministrativeBureaucraticHuman relation Approach

2. Modern Approach to mgt. Behavioral Quantitative Systems Contingency approach

Behavioural Aaproach

Goal and efficiency oriented. explain the behavior of individual

employees. Considers the understanding of human

behaviour to be the major means to that end. Emphases on human resource in an org. Divided into 2 groups – inter-personal

behavioual approach and group behaviour approach.

Study Individual psychology and social psychology.

The behaviour of the members of an organization clearly affect both its structure and its functioning, as well as the principles on which it can be managed.

Several individual differences in perceptions, aspirations, needs, feelings, abilities and values of people excite in the organization, such difference along with their changing nature over periods of time have to be recognized.

Behavioral theorists believed that a better understanding of human behavior at work, such as motivation, conflict, expectations, and group dynamics, improved productivity.

Stress management seminars, personality development.

MASLOW (HIERARCHY OF NEEDS) In the early 1950s Abraham Maslow developed a theory of

motivation. This was arranged in the form of a hierarchy of needs.1. basic needs: At the bottom of the hierarchy are the basic needs. For

example, these reflect that people work primarily to provide basic things that enable them to live, such as food and accommodation.

2. safety needs: This is followed by safety needs that enable individuals to protect themselves and their families. Job security, sickness

3. Social needs: These are followed by social needs as individuals develop a sense of belonging. Recognition, exchange feelings and grievances,

4. Esteem - higher order needs such as those of esteem and status needs – self confidence, independence, competence, success .

These needs are concern with prestige and respect for the individuals.

Employees take responsibility for their own jobs and are constantly involved in improvement and change. An individual must develop self‐confidence and wants to achieve status, reputation, fame, and glory.

5. Self-actualisation - through challenging and interesting work. It is the desire to become what one is capable of becoming.

Maslow’s Hierarchy of Needs

Psychological needs

Security/safety needs

Esteem Needs

Social needs

Self-Actualisation

Maximum use of potential,

achieving goal.

status, prestige,

belongingness

Family, friends,

Safety about job, old age, insurance

Food, clothing, shelter

DOUGLAS MC GREGOR

He developed two assumptions abt. Human behaviour.

“Theory X and theory Y Theory X presents negative view of ppl. managers assume that workers are lazy,

have little ambition, dislike work. Want to avoid responsibility and need to

be closely directed. Not very intelligent Lacks creativity in problem solving.

Theory Y Positive and presumes that workers are

creative and innovative, willing to take responsibility, exercise self

control and enjoy they work. If properly.

HERZBERG AND 2-FACTOR THEORY His theory is sometimes called the two-factor theory. He looked at motivators and hygiene factors.

Hygiene factors, often referred to as ‘dissatisfiers’, are elements in the work environment that could make employees

unhappy. creates favourable environment for motivation and prevents

job disatisfaction. Co. policies, administration, supervision, salary, job security,

employee benefits. They relate to the conditions under which a job is performed.

Motivators, often referred to as ‘satisfiers’, work environment that provide employees with job

satisfaction. For example, recognition for effort and performance.

Satisfied employees then become more productive. challenging work, chance for advancement.

This is a satisfier as employees develop a genuine attachment to the teams in which they work.

employees receiving shares in the company as well as bonuses based on how well the business as a whole is doing.

The aim is for employees to act and feel like owners of the business.

These also help them to be recognised for their contribution.

CONCLUSION People donot dislike work. If the objectives are

set they would like to achieve them.

Job is a source of motivation and satisfaction.

Use the untrapped human potential.

Operating efficiency be improved subordinate influence, self-direction and self control.

Managers should create healthy environment so that subordinate can contribute to the best of their capacity.

Informal leadership rather than the formal authority of supervisors is more important for increase in employee performance.

Democratic leadership style and participative managerial style encourage positive attitude of employee towards work and faster’s high moral and initiative among them.

A wide range of factors influences work and interpersonal behaviour of people in the organization.

Quantitative

Aaproach

The quantitative approach to management involves the use of quantitative techniques, such as statistics, information models, and computer simulations, to improve decision making.

Management science school Operations Management Management information systems

THE MANAGEMENT SCIENCE SCHOOL Actions which can be expressed in terms of mathematical

symbols, relationships, and measurements of data, Also known as Operational reserarch Managers can use computer models to figure out the best way

to do something — saving both money and time.

Mathematical forecasting helps make projections that are useful in the planning process.

Techniques used are : capital budgeting cash flow management production scheduling development of pdt. strategies human resource planning maintain optimal inventory levels

Mathematical Tools : Inventory modeling helps control inventories

by mathematically establishing how and when to order a product.

linear programming PERT program evolution review technique CPM – Critical path method. Probability theory Queuing theory helps allocate service

personnel or workstations to minimize customer waiting and service cost.

OPERATIONS MANAGEMENT It deals with the effective management of the production

process and timely delivery of pdts or services. It focuses on managing the process of transforming materials,

labor, and capital into useful goods and/or services. Operation mgt. is concerned with: (i) inventory mgt. (ii) work scheduling (iii) production planning – photocopier (iv) quality assurenceTools used by operation managers are:(i) Forecasting(ii) Inventory analysis(iii) Materials reqirenment plannning system(iv) Network models (v) Statistical quality control(vi) Projective planning.

The transformation process is set of operations through which various resources are utilized to produce finished goods or services of value to customers or clients.

Operations management today pays close attention to the demands of quality, customer service, and competition.

The process begins with attention to the needs of customers:

What do they want? Where do they want it? When do they want it? Based on the answers to these questions, managers

line up resources and take any action necessary to meet customer expectations

MANAGEMENT INFORMATION SYSTEMS A management information system organizes past,

present, and projected data from both internal and external sources and processes it into usable information,

which it then makes available to managers at all organizational levels.

The information systems are also able to organize

data into usable and accessible formats.

managers can identify alternatives quickly, evaluate alternatives by using a spreadsheet program, pose a series of “what‐if” questions, and finally, select the best alternatives based on the answers to these questions.

2.SYSTEMS MANAGEMENT THEORY

Large and external environment. An organization as a system is composed of four

elements: Inputs — material or human resources - such as

raw materials, money, technologies, and people

Transformation processes — technological and managerial processes- planned, organized, motivated, and controlled to ultimately meet the organization's goals.

Outputs — products or services Feedback — reactions from the environment-

outcome and position of the org. - comments from customers or clients using the products

there are two types of systems:

An organization that interacts little with its external environment (outside environment) and therefore receives little feedback from it is called a closed system.

An open system, interacts continually with its environment. Therefore, it is well informed about changes within its surroundings and its position relative to these changes.

Synergy is the ability of the whole system to equal more than the sum of its parts.

CONTINGENCY Also known as the situational theory. The contingency school of management can be

summarized as an “it all depends” approach.

The appropriate management actions and approaches depend on the situation.

there is no one best way to manage all situations. Managers with a contingency view use a flexible

approach, draw on a variety of theories and experiences, and evaluate many options as they solve problems.

Contingency management recognizes that there is no one best way to manage.

managers are faced with the task of

determining which managerial approach is likely to be most effective in a given situation.

For example, the approach used to manage a group of teenagers working in a fast‐food restaurant would be very different from the approach used to manage a medical research team trying to find a cure for a disease.

Contingency thinking avoids the classical “one best way”.

The contingency approach is highly

dependent on the experience and judgment of the manager in a given organizational environment.