Reframing Organizations, 3rd ed.

Chapter 6

People and Organizations

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