Human Relations Model: The Best Approach in Addressing Organisational Challenges - Literature review Example

Human Relations Model: The Best Approach in Addressing Organisational Challenges Introduction In the current rapidly changing business environment of the developed economies, organisations must learn to adapt or die. The world is witnessing one of the rapidest changes in technological and economical developments. Change features constantly in an organisation’s life, and the organisation’s ability to manage it is considered to be the core competence of successful organisations (Burnes 2004, p. 309). Organisations are desperately seeking to increase their competitiveness through more and more radical forms of change. The change outside requires an organisation to have a reciprocal change from inside in order to increase its chances of survival. The relationship existing between different parties in such organisations is the main driver of change. Organisations must be open and willing to change. In order to have an effective change, they have to put concerted efforts in order to manage this change. In any change, a shift has to take place, and this shift is not easy to manage. According to Carter (2008, p. 66), a successful change requires appropriate strategies, competent personnel with skills to adapt to change and a good structure. The challenges in the current business environment can be effectively approached from the perspective of the human relations model of management. The human relation concept has brought effective changes in the leading companies in the world. Most organisations in the current business world attribute their successes to the degree of human relations approach in their strategies. This paper, therefore, views the human relation conceptualisation as an ideal approach to adopt. The Scientific Management Theory The scientific management model is criticised because it views workers as working machines. The scientific management theory does not give any value to the human factor within the organisation. According to Taylor (1911, p. 3), an organisation cannot satisfactorily gain any value from its workers. He further asserted that programming of work should be re-regulated by scientific analysis. Celik and Dogan 2011, p. 66) draw a number of conclusions about workers in relation to scientific management model. Taylor viewed workers as unproductive, lazy, having an inclination to less work, de-motivated, and lacking defined mission and vision. He also concluded that workers do nothing towards contributing to the progression of a firm. A firm that follows such an approach and adopts these assumptions is bound to fail in managing change. An organisational change starts with the human factor and is driven by the same. The scientific model of management overlooks subjects such as solidarity, emotional responsibility, motivating the workers, and faithfulness to the employer. It focused on the material side but ignored the human factor. The only motivating factor that Taylor considered was the payment factor (Taylor 1911, p. 34). Organisations operating in the current business environment cannot afford to ignore the issue of the relationship. Therefore, the scientific management model application in an organisation cannot bring success. Companies in the current business environment cannot achieve success without workers’ motivation, solidarity within the organisation and emotional responsibility. They cannot ignore the human relations factor. The Human Relations Theory Human relations theory is seen to have its roots in the Hawthorne Studies in 1920s and 1930s at Western Electric Company. George Elton Mayo became the chief populariser of these studies, and identified the importance of the human factor in organisations. The lifeblood of an organisation is its people. According to George Elton Mayo (1880-1949), a workplace should resemble a social environment where good relationships are cultivated for the common good of the organisation (Mayo 1933, p. 10. This was Mayo’s fundamental concept. This is a human relations era and any organisation that ignores this aspect can fail. Human Relations theory examines individual and group interaction and human motivation. Human relations approach enhances human feelings. There is departure from scientific management thought and organisations have departed from this thought and are embracing human relations as their driver to change. The classic assumptions of Taylor who is considered to be the father of scientific management did not emphasise much on human importance in the organisation system. Human factor gained importance with the introduction of industrial psychology into the organisational management by the behaviourists. Addressing human needs stimulate better-working environment and relationship leading to increased productivity (Ugwulashi and Archibong 2012, p. 50). Human beings are viewed as life-givers to the organisation. Human relationships and interactions within the organisation have a value-adding effect because they create opportunities for problem-solving and knowledge sharing. Human relations approach seems to have received support from Bandura’s (1997) notion of goal commitment and collective efficacy where human beings share resolve to pursue actions that bring change. In order to manage change within the organisation, one has to manage the social psychology within the workplace. Management of social psychology is critical for successful organisational change. Literature studies have recognised that change has consequences for the people. Therefore, a firm should anticipate and handle human resource effectively. Literature studies have also discussed the importance of involving employees effectively in organisation decision-making and change initiatives (Ugwulashi and Archibong 2012). All areas in an organisation require some form of human factor involvement. Human Relations versus Scientific Management The major flaw in scientific management model is that it tends to doubt the contribution of human beings in organisational life. It appreciates human efforts like machines. It alienates the informal grouping and human importance as an important facilitating factor in accomplishing the organisation’s goal. This scientific approach is not ideal for an organisation. Without human element, no organisation can realise effective change. Even the behaviourists introduced industrial psychology into the business arena arguing that human beings are crucial in stimulating a better work environment. They also emphasised that human relationships within the organisation contribute to increased productivity. The idea of human relations empowers people to work with freedom in order to meet their needs and at the same time contribute to the accomplishment of organisation’s goals. There are many other schools of thought that rose in defence of the aspect of human factor in an organisation and eroded the machine man idea. These schools of thought include MacGregory (theory X and Y), Maslow (Need hierarchy), Simon (decision-making process) among others (Ugwulashi and Archibong 2012, p. 50). The Psychological Contract According to Rousseau (1989), psychological contract is a person’s belief regarding the terms and conditions of an exchange relationship with another person. As it was observed earlier in this paper, the human factor gained importance with the introduction of industrial psychology into the organisational management. Many factors entail psychological contract beside remuneration such as the provision of training, work-life balance and security. The employer in exchange for flexibility, loyalty, innovation, and commitment offers all these benefits to the employee. As a result, a firm benefits from the mutual relationship between the employer and the employees. An empirical study found out that a positive relationship exists between a balanced psychological contract and employees commitment (Coyle-shapiro and Kessler 2000, p. 923). It is evident that human factor is the most important change agent in any organisation. Human Relations Theory and Organisation’s Performance According to Kitchen and Daly (2002, p. 19) organisations are operating in a fast changing environment. As a result, they are under much pressure to change in order to develop. Over the past few decades, the development of organisation perception regarding human management has changed. In order to achieve the set out goals, there is need to integrate informal aspects into organisational thinking. Proper decision-making is an important aspect of organisational development process. With the departure from the scientific management thought, an organisation needs to harness the cooperative efforts of each member in order to ensure that there is effective group goal achievement. This concept serves as a tool for performance motivation. It is based on Mary Parker Follet’s value and belief that democratic procedures provide a foundation for achieving individual fulfilment within groups (Babcock 1998, p. 76). Follet believed that only through such groups does the employee feel involved and responsible. In today’s organisation, the management needs to establish why the employees act differently and the factors that motivate them to work. A well articulated, integrated and mutualised member effort facilitates effective group goal achievement and efficient individual role performance. Human relations theory and Management Human relations theory opened a new arena into which the management could be inserted. HRT entered the world of organisations and introduced a new knowledge about people at work. It brought things such as motivation, personality type, group dynamics, job satisfaction, and leadership among many other things. One of the greatest success stories has been the management. A social organisation has ceased to be pre-ordained and become an arena for intervention and control. Managements integrated with human relations theory traverses the tracks of modern thought – the systematic control of nature and society. While management brings the notion of control, HRT brings the notion of human interactions. The management’s major role in the change process is ensuring that it creates a healthy human relations climate. The management needs to understand employees as human beings who possess social and emotional needs. Human relations in the management play roles such as eliminating conflicts between employees and the organisation, eliminating individual differences, and ensuring a good workplace. Human relations also ensures that there is coordination between different departments and increases the quality and quantity of products and services. Importance of Human Relations Theory in organisations Mayo made some conclusions from the Hawthorne’s studies and these include: i. Social groups are important to the functioning of the organisation. ii. The impact that a peer group has on the organisation is more important than financial incentives iii. Peer groups exert pressure on workers and make them conform to the standards of dominant clique. iv. Although it is important, specialisation is not the most effective form of organisation. v. Human beings in a peer groups support one another against arbitrary management decisions (Mayo 1933). Mayo finally concluded that workers are not motivated by money, desirable working conditions, and opportunities for participation or material things. From the above conclusions, this paper draws its conclusions: i. Success is achieved through shared decision-making techniques ii. The management should manage by objectives iii. The management should focus on morale iv. There is need for organisational development v. Group dynamics is an important ingredient for success in an organisation. vi. Successful organisations value the importance of conflict resolution. Human groups in an organisation form system and subsystems. Organisations need these systems and sub-systems to survive. Effective systems are characterised by tight coupling of sub-systems. Today, successful organisations attach value to the notion of systems and sub-systems Demartini, 2013. This can be better explained through an open system with feedback loop. Environment Inputs Transformation Outputs People process Products Materials Services Finances Feedback Figure 1. Open system with feedback loop Human relations theory emphasises on cooperation and people leadership. Therefore, from this observation, it could be assumed that HRT provides an avenue for other aspects of organisation such as leadership. Today’s organisations are achieving their goals through team building, participative decisions, and conflict management. Organisations are relying on these facilitators in order to be successful. Today’s organisation cannot survive without conflict management strategies; neither can it survive without good communication within the organisation. Human beings in today’s organisations act as mentors. That is they understand self, ensure that there is flow of communication between them, develop and motivate each other. All these factors are emphasised by the human relations theory. Conclusion The dream of any organisation is an effective process within the organisation that can help it achieve its goals. According to Ugwulashi and Archibong (2012, p. 52), organisational success is a measure of human relations framework that enables the subordinates to buy the vision of the oragnisation leaders. Success starts with people buying the organisation’s vision and possessing it as their own. Good human relations in the organisation facilitate cooperation between the employees and the management, and between the employees themselves. Workers who possess good human relations skills lead the organisation to success and profitability. In an environment with good human relations, conflicts are prevented. The most successful organisations today ensure good relations are maintained within the organisation. Good human relation also helps to reduce personal stress and complications that may arise in decision-making. The group dynamics have also been found to be popular with successful organisations. Therefore, this paper concludes that human relations model is the most ideal model in driving the organisation to success. References Babcock, M. 1998. Book Review Mary Parker Follett – Prophet of Management: A celebration of Writings from the 1920. Evanston: Symphony Orchestra Institute. Bandura, A. 1997. Self-efficacy: the exercise of control. New York: W.H. Freeman. Burnes, B. 2004. Kurt Lewin and Complexity Theories: back to the future? Journal of Change Management, 4 (4), pp. 309-325. Celik, M. and Dogan, E. 2011. A Theoretical Approach to the Science of Management. International Journal of Humanities and Social Sciences. 1 (3), pp. 65-69 Coyle-Shapiro, K. and Kessler, I. 2000. Consequences of the psychological contract for the employment relationship: A large scale survey. Journal of Management Studies. 37, pp. 903-930. Kitchen, P. and Daly, F. 2002. Internal Communication during change management. Corporate Communications: An International Journal, 7 (1), p. 46-53. Mayo, E. 1933. (Reprint, 2007). Human Problems of an Industrialised Civilisation. New York: Routledge. Taylor, F. W. 1911. Principles of Scientific Management. New York and London: Harper & Brothers Co. Ugwulashi, C. and Archibong, F. 2012. Human Relations Concept: A Dynamic Approach to Achieving Effective Goals in School Administration. Journal of Educational and Social Research. 2 (8), p. 49-55. Demartini, C. 2013. Performance management systems: Design, diagnosis and use. Heidelberg : Physica-Verlag Read More