MGMT 191 Study Guide: Understanding Human Relations in Management - Prof. Peter Cain, Study notes of Introduction to Business Management

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CHAPTER 1 –“The Nature of Human Relation”  Human relations, p. 5. - the process by which management and workers interact and attain their objectives.  Scientific Management (approach in America), p. 7 – sought to merge the people and the work and increase work efficiency by measuring “one best man” for each job and employing such measures as plant design, plant layout, time study, and motion study.  Traditional and Human Resources Models, see Table 1.1, p. 11 – traditional (the old way of managing people) with the emergence of industrialism (started in England in mid-1800’s); viewed all worker viewed as factors of production rather than as human beings; (the new way) HR era views people as having untapped potential.  Behavioral Management movement (circa 1920’s), p. 7 – concern for production bringing about people-related problems and that the effective manager had to be interested in both personnel and work; had its genesis in: o The Hawthorne Studies, pp. 7 – 9 – started the modern behavioral management movement; conducted in 1924 at the Hawthorne plant of Western Electric, located near Cicero, Illinois. There were four phases to the studies: 1. Phase I - researchers sought to examine the relationship between illumination and output; concluded that variables other than illumination were responsible for the increases (at this point Elton Mayo and a number of other Harvard researchers took an interest in the problem). 2. Phase II – researchers isolated a group of female workers from the regular workforce and began to study them; researchers began to introduce test breaks to see what effect this would have on output; researchers; an observer was encouraged to create a friendly atmosphere with the operators to assure their cooperation; shorter workdays and workweeks were instituted, and output again went up; when the original conditions were restored, output still remained high – the change in the physical environment could not have been the only reason for increases in output. 3. Phase III - investigators changed from direct to indirect questions (allowing employees to choose their own questions) in interviews with workers and found a wealth of information about employee attitudes; researchers began to focus on human relations; started to realize that both the person and the group members influenced an individual’s performance, position, and status in the organization. 4. Phase IV – investigators decided to examine a small group of workers engaged in one type of work; no changes in the working conditions were made; an observer was stationed in the test room to record employee interactions and conversations: a. The group had an informal production norm that restricted output. 1 b. There were 2 informal groups or cliques in the room, and individual behavior was partially dictated by the norms of the groups. c. To be accepted by the group, one had to observe informal rules, such as not doing too much work, not doing to little work, and never telling a superior anything thatmight be detrimental to an associate. o Hawthorne Studies conclusions (conducted 1924), pp. 8 - 9: 1. Organizations are social networks, in which people interacted, sought acceptance from and gave approval to fellow workers, and found enjoyment in the work and in the social exchange that occurred while they were doing the work. 2. People will act differently when they know they are being observed. 3. Quality of supervision has an effect on the quality and quantity of work.  Rensis Likert’s Four Systems of Management: see Figure 1.2, p. 13 o System 1-- exploitive autocratic. Management has little confidence in subordinates & are seldom involved in decision-making …the traditional method. o System 2 -- benevolent autocratic. Management acts in a condescending manner toward subordinates o System 3 – consultative democratic. Management has quite a bit of confidence and trust in subordinates. o System 4 – participative democratic. Management has complete confidence and trust in subordinates; interaction takes place in a friendly environment and is characterized by mutual confidence and trust…the human resources model.  At present there is a swing towards Systems 3 and 4; managers must be aware of the changing attitudes and values of their personnel.  The scientific method – an objective approach to gaining knowledge. o Steps include: 1. Identify the problem,; 2. Obtain background information (through questionnaire, interviews); 3. Pose a tentative solution; 4. Investigate the problem area; 5. Classify the information; 6. State a tentative answer; and 7. Test the answer (with test and control groups).  Emerging HR challenges: 1. Managing” knowledge workers” – create an environment that encourages employees to share what they know. 2. Managing diversity – guidelines needed for ensuring equality for all people in their workplaces. a. Glass ceiling (see Table 1.2) 3. Ethics and social responsibility concerns a. Ethics definition – “…the study of standards and moral judgment.” 2