II. HUMAN RELATIONS THEORY
Human relations aspect of management is the second link n the management chain, as suggested by Robert M. Fulmer. He says that the discussion of management evolution is incomplete without this important link. This aspect f management is human-oriented, while scientific management is production and work oriented. The following authors are the pioneers of human relations in management.
1. Robert Owen
2. Dr. Hugo Munsterberg
3. Elton Mayo
Robert Owen supported the human aspect of management. He was the successful manager of a textile mill in Scotland in 1800’s. He valued his workers as essential machines. He said that human machines are more important than inanimate machines. Keeping humans in proper and working order is as necessary as machines, so that they can perform the work efficiently. By focusing his attention on human psychology, needs, and motivation he managed to receive more than fifty percent return on the amount spent on his employees. According to him, expenditure over employees is actually investment which pays back itself. If employees social and personal needs are satisfied, the companies overall profit position will improve.
Dr. Hugo Munsterberg
Dr. Munsterberg is popularly known as lather of industrial psychology. He received his Ph.D. degree from the Lipzig University of Germany in 1885. At 27 years of age he received a medical degree in 1887. In 1892 he was hired by Experimental Psychology Department of Harvard University,USA. By 1908 he was the recipient of the highest salary at the University. Americans treated him as the authority on everything. He wrote thirty books, articles, and monographs.
Dr. Munsterbergs contribution to industrial psychology and management is of tremendous value. He focused his attention on the following psychological factors of the workers.
1. How to find such people whose ability and capabilities are in harmony with the demand and nature of work?
2. What are those psychological factors under which a worker performs and utilizes his potentialities and capabilities best?
3. How can a business affect a worker to produce the maximum?
3. Elton Mayo
Elton Mayo is titled as the father of human relations. He became celebrated for hisHawthorneexperiments. He strongly advocated human side of management. He conducted many researches, experiments, and studies to find the impact of working conditions and environments on the efficiency and quality of the workers. His these studies are popularly known asHawthorneexperiments. Under them he conducted the following
(i) Illumination experiments
These experiments were conducted to know the relations between the strength of tight and the volume of work.
(ii) Relay room experiments
These were conducted to learn the impact of place of work, length of rest hours, length of working hours, method of payment and free lunch on the workers’ productivity. These experiments lasted for five years.
(iii) Bank-wiring room experiments
This study started in November 1931 and tasted till May 1932. Its primary objective was to make an observational analysis of the informal work group. The work group comprised nine wirers, three soldiers, and two inspectors.
(iv) Mass interviewing at Hawthorne
Through the questionnaire the following factors were analyzed in relation to productivity.
Absence, advancement, dirt, fatigue, furniture, fans. education, working hours, medical, overtime, monotony, light, interest, thrift, vacation, ventilation, washrooms, welfare, working space, and many more.
The results of the studies atHawthornewere as follows:
(i) In business and industrial matters human side is far more important than the machines and methods.
(ii) Social factors affect workers productivity. Business is a part of over all social system.
(iii) The efficiency of the working groups can be improved by effective leading, motivation, counseling, communicating, and guiding.
(iv) Special attention or behavior whether positive or negative, improves productivity of the employee.
(v) Productivity is the result of employee behavior.
(vi) Respectful behavior with the subordinate will increase his productivity.
The results ofHawthornestudies are referred to as Howthorne effects.
4. Chester I. Bernard
Chester Bernard is the founder of systems theory. System has been defined as “a set of things connected or interdependent, and interacting so as to form a complex unity.” A system is a whole composed of parts in orderly arrangement according to some plan or scheme. The systems theory puts that the whole is greater than the sum of its parts.
According to Bernard, no activity can be electively performed until it is organized under a system. Due to mental, biological limitations, a human cannot do things alone. These limitations lead him to achieve the cooperation of others. This cooperation gives rise to formal or informal organization. Formal organization is defined as a system of well-defined jobs with a definite measure of authority, responsibility and accountability. The whole consciously designed Informal organization is what people do in term of needs, emotions, and attitudes, not in terms of procedures and regulations.
Semard suggests that the survival of formal organization depends on the following.
(i) People are able to communicate with on another.
(ii) The group interest is facilitated.
(iii) The group members have the same objectives. Their goals should not be conflictory.
A formal organization should have the following characteristics.
(i) It must have a system of functions, as marketing, accounting, purchasing, public relationing, odds and sods.
(ii) There should be a motivation system, as salary, bonus allowances, promotion, commendation, etc.
(iii) There should be authority and decision making systems. Barnard concludes that people like to be organized and led rather than managed.