LESSON TWO

QUALITIES OF A GOOD HUMAN RELATIONS MANAGER

 Knowledge and expertise in human resource

 Good communication skills
 Good time management
 Self-discipline
 Trustworthy
 Impartial/objective (neutral)
 Honesty
 Integrity
 Truthfulness
 Loyalty
 Tolerant
 Fairness
 open-mindedness
FUNCTIONS OF A HUMAN RELATIONS MANAGER

 resolving conflicts
 encouraging diversity
 representing the workers to trade unions and to the management
 policy development on human resources and human relations issues
 organizing education and training programmes
 communicating all necessary information to workers
 organizing team building activities
 formulating employee salaries and benefits.

EMERGENCE OF HUMAN RELATIONS

Human Relations Movement

Human relations movement was founded by sociologist George Elton Mayo in the 1930’s
following a series of experiments known as the Hawthorne studies.

It involved the work of several sociologists and social physiologists concerned with how people
relate and interact within a group. The movement used theories and approaches that focus on the
human side of an organization.

Human relations movement resulted from a direct result of Elton Mayo and Fritz J.
Roethlisberger’s Hawthorne studies which as designed to find ways to increase worker
productivity at Western Electric’s Hawthorne workers factory by assessing working conditions
related to things such as lighting levels, rest periods, and the length of work a day.

The movement viewed workers in terms of their psychology rather than interchangeable parts. It
resulted to the creation of the Human Resource Management discipline.
 a) Hawthorne Studies
The Hawthorne studies focused on exploring the link between employee satisfaction, well-being
and workplace productivity.

This study had four stages:

The illumination experiments

Lighting was used as a factor to analyze the productivity of the staff. Employees were arranged
in two groups one of which was a control group and the other an experimental group. The
control group had the same amount of lighting throughout and the experimental group had
lighting constantly changing. In both groups productivity increased even when lighting
conditions became poor. As the results were inconclusive, other experiments were arranged on
factors other than the changes in working conditions.

The relay assembly test

Six women workers were assessed. They changed working hours, lunch times and rests. Their
observer was also using a friendly approach, listening to the employees’ complaints. The
production increased again and this is when Mayo recognized that it was the fact that they were
given attention and noticed by management that the productivity increased.

The interviewing program

This assessed how workers felt towards their supervisors. They used a non-directive approach
and interviewers would listen in a friendly non-judgmental manner. This found out more about
the employees feelings and attitudes with more specific information about the management
supervisor, company working relations and even the workers lives and views.

The bank wiring observation room

Fourteen men were chosen to work in an observation room with working conditions that changed
slightly over six months or more. The group began to form their own organization and rules with
their own informal social relations.

Analysis of the study

Those participating in the Hawthorne studies were watched closely by the researchers during the
experiment. Their productivity levels increased but not directly due to the conditions that mayo
and Roethlisberger were imposing on them.

The researches attributed the increase in productivity to the higher morale that was witnessed in
the group during the experiment. This was caused by changes made to the working conditions.
Elton Mayo stressed on the following:

1. The power of natural groups in which social aspects take precedence over functional
organizational structures.
2. The need for reciprocal communication which is two-way from worker to employer and
vice versa.
3. The development of high-quality leadership to communicate goals and to ensure effected
and coherent decision making.
Conclusions of the study

The Hawthorne studies concluded that;

 When employers take an interest in works and makes decisions based on their natural
needs and psychological makeup, productivity increases.
 People work best when organized into groups when they can have effective two-way
communicating with their leaders and when leaders communicate and share information
freely as part of an overall cohesive decision-making process.
 The aptitude of individuals is imperfect predictors of job performance – although they
give some indicators of the physical and mental potential of the individuals, the amount
produces is strongly influence by social factors.
 Informal organizations affect productivity – the Hawthorne researchers discovered a
group life among the workers. The studies showed that the relations that superior
developed with workers tend to influence the manner in which workers can carry out
directives.
 Work group norms affected productivity – the study gave a systematic description and
interpretation that group norms determine a fair day’s work.
 The work place is a social system – it is made up of interdependent parts.
Relationship between social factors and productivity
Hawthorne studies revealed that social factors such as employee relationships were important
because:

 Manager who fail to account for the social needs of employees would expect to deal
with resistance and lower performance
 Employees need to find some intrinsic value in their jobs which they certainly were
not getting from the job that was highly standardized.
 Rather than placing employees into job roles, where they completed one specific
takes all day with little or no interaction with co-workers, employees could be
structured in such a way that they would frequently share tasks, information and
knowledge with one another.

Informal Organizations and Acceptance Theory

Informal organizations: Chester Barnard believed that formal organizations are made up of
informal groups. These informal groups evolve to become the informal organization. The group's
beliefs and values establish the organizational culture and determine, to a large extent, formal
acceptance of authority.
He believed organizations need to be both effective and efficient. Effective means meeting
organizational goals in a timely way. Efficient, in his opinion, means the degree to which the
organization can satisfy the motives of its employees. In other words, the organizational goals
will be accomplished and authority will be accepted when workers feel satisfied that their
individual needs are being met. This is known as the acceptance theory of authority.

Acceptance theory of authority states that a manager's authority rests on workers' acceptance of
his right to give orders and to expect compliance. Workers have to believe that the manager can
legitimately give orders and there is a legitimate expectation that the orders will be carried out.
There are a few reasons for this expectation:

1. Workers will be rewarded for compliance

2. There will be discipline for non-compliance
3. Workers respect the manager for his experience

b) Douglas McGregor Theory X and Theory Y

Theory X

In this theory, management assumes that employees are inherently lazy and will avoid work if
they can. According to this theory employees will show little ambition without an enticing
incentive program and will avoid responsibility whenever they can. Because of this, workers
need to be closely supervised and comprehensive systems of control put in place.

The managers influenced by Theory X tend to blame employees in most situations, without
questioning the systems, policy, or lack of training which could be the real cause of failures.
They tend to take a rather pessimistic view of their employees. Theory X managers naturally
adopt a controlling style based on the threat of punishment.

Theory Y

Management influenced by this theory assumes that employees are ambitious, self-motivated and
anxious to accept greater responsibility and exercise self-control, self-direction, autonomy and
empowerment. Management believes that employees enjoy their work. They also believe that
employees have the desire to be creative at their work place and become forward looking.

Theory Y manager believes that, given the right conditions, most people will want to do well at
work and that there is a pool of unused creativity in the workforce. Theory Y manager will try to
remove the barriers that prevent workers from fully actualizing themselves.

Progressive Assessment Test – (PAT) - TWO

1. Outline three ways a HR manager can respond to conflict according to Constructive

Conflict (3marks)
2. Explain five factors that influence human behavior at workplace (10 marks)
3. State three aspects that motivate employees according to Elton mayo(3marks)
4. Give three reasons why it is important for employees to relate well among themselves in
an organization (5marks)
5. List four indicators of good human relations in an employee (4marks)
6. Outline three measures that can be adopted to improve human relations in an
organization (3 marks)
7. Highlight four characteristics that a supervisor should possess (8 marks)
LESSON THREE
c) Human Relations Theory
This theory originated in 1930’s Hawthorne studies which examined the effect of social
relations, motivation and employee satisfaction on factory productivity. The theory focuses on
interpersonal relationships. It is the analysis of people’s issues that arise due to interpersonal
organizational relationships.

The theory analyzes the impact of what is achieved how it is achieved, why it is achieved on
people in the organization (Terry& Franklin)

The approach emphasis that management does not do it, it gets other to do. The focus of
management should there be on human beings and human relations in order to boost the morale
of the employees and productivity and efficiency is increased. Managers should therefore know
the factors that motivate the employees so that good human relations is developed.

The theory considers the organization as a social system that looks after socio-psychological
needs of the workers.

It looks beyond rewarding employees by financial incentives alone.

Workers have to feel satisfied in the work place therefore managers adopt participative decision
making, job enrichment, cordial work relationships etc. These will promote individual goals,
provide them with work satisfaction and positively contribute to organization goals.

Human Relations Management Theory considers positive actions by management to be vital to

help lead to employee motivation and improved performance. These positive actions include the
following:

1. Treat employees in a manner that promotes work as a natural event

2. Share the management’s objectives of which the employees’ work is actually part of
3. Empower employees to be innovative and make as many independent decisions as they
can handle
4. Train staff and helping them develop their skills
5. Reward staff with increasing freedom and responsibility as their competency grows
6. Provide awards/rewards and recognition when they achieve company goals
7. Make use of various theories that are applicable to help keep people motivated for
excellence.

Assumption of the Human Relation Theory

 Understanding human factors is very important in improving productivity in any

organization.
 Human management is an attitude of mind. Rather than substantially a new set of
techniques for personnel managers to use – the attitude required is a belief in the
 importance of people as key resources with strategic planning process of the organization.
 Social needs are important than money in motivated people – Maslow’s hierarchy of
needs theory – presents human beings as psychological struggling to satisfy needs.
 Management should consider workers essentially as social beings who have the tendency
to form informal groups in the work situations.
 Social psychological factors are important motivators to work.
 Every worker should have an equal chance to contribute ideas to the development of the
organization so as to promote productivity.
Evaluation of the Human Relation Theory

1. Human relations theory focused on promoting organizational efficiency through

satisfaction of social and psychological needs of workers more than other needs.
2. Workers are part of the group where informational rather than formal communication
leadership are more effective.
3. Managers get better results by changing their management styles – a participative
approach is better than an authoritarian approach. Management skills are more important
than technical skills.
4. Financial incentives are not always as rewarding as non-financial incentives in affecting
human behavior.
5. Workers should be treated as human beings and not a hired labour.
6. They have to be treated with dignity and respect. Their values and beliefs have to be
respected.
Limitations of the Human Relation Theory

1. Design of the theory:

The theory is based on experiments of a group of people which is not representative of
the general population. Social and psychological needs are not always met as important
as emphasized upon. They are secondary to physiological needs and unless workers are
satisfied with their pay packages and working conditions they are not motivated to work
for their social needs.
2. Analysis of the theory:
It analyses group dynamics and decision making a more important variable than unity of
command to increase productivity. This may not always be true.
3. Interpretation of the theory:
It over emphasizes the fact that objectives can be if cordial relations are maintained in the
organization. Differences of opinion among people can also generate new ideas and
innovations.
4. Human Relations Philosophy:
It says that informal groups satisfy workers and promote productivity which is not always
true. It is proved empirically that informal groups at the work place are a very simple
assumption about workers contribution to their jobs. Factors like motivation,
communication and leadership also contribute to organizational efficiency. These factors
are considered in the behavioral science theory.
5. Scientific method and human relations approach:
Human relations approach is not based on scientific methods. Workers are viewed as
mere means to contributions to organizational goals. The needs they want to fulfill
throughout work and work environment are ignored.
HUMAN BEHAVIOUR

Human behavior is the responses of individuals or groups of humans to internal and external
stimuli. It can also be said to be the array of every physical action and observable emotion
associated with individuals, as well as the human race.

Behaviour is important as it shapes our personality and helps us in building a good character.
You develop the skills of good communication and learn how to maintain the decor of the room
whilst being with another hundreds or thousands of people in a room. You actually learn to
present yourself in a better way for the other person to understand you and for you to be able to
understand him/her.
It's important, because it helps you relate to others. It can be a difficult thing to do sometimes,
because each person is different and thinks and acts differently then everyone else in the world.
If you understand (to the best of your ability), then you're more likely to get along with others
and to be able to offer help to those who need it, instead of coming across as awkward or
conceited.

Factors that influence human behaviour

Genetics

Patterns of behavior are somehow influenced by inheritance from parents. Studies of identical
twins as compared to less closely related human beings, and of children brought up in adoptive
homes, have helped scientists understand the influence of genetics on human behavior.

Social norms

Social norms, the often-unspoken rules of a group, shape not just our behaviors but also our
attitudes. An individual’s behavior varies depending on the group(s) they are a part of, a
characteristic of society that allows to norms heavily impact society. Without social norms,
human society would not function as it currently does; humans would have to be more abstract in
their behavior, as there would not be a pre-tested 'normal' standardized lifestyle, and individuals
would have to make many more choices for themselves.

The institutionalization of norms is, however, inherent in human society perhaps as a direct result
of the desire to be accepted by others, which leads humans to manipulate their own behavior in
order to 'fit in' with others. Depending on their nature and upon one's perspective, norms can
impact different sections of society both positively (e.g. eating, dressing warm in the winter) and
negatively (e.g. racism, drug use).

Creativity
Creativity is assumed to be present within every individual. Creativity pushes people past their
comfort zone. Creativity has kept people alive during harsh conditions, and it has also made
certain individuals wealthy. We use creativity in our daily lives as well, such as finding a
shortcut to a destination.

Core faith and culture

Another important aspect of human behavior is their “core faith”. This faith can be manifested in
the forms of religion, philosophy, culture, and/or personal belief and often affects the way a
person can behave. It is only natural for something that plays such a large role in society to
have an effect on human behavior.

Morals

These are other factor of core faith that affects the way a person behaves. Emotions connected to
morals including shame, pride, and discomfort and these can change the way a person act. Most
importantly, shame and guilt have a large impact on behavior.

Culture

Culture highly affects human behavior. The beliefs of certain cultures are taught to children from
such a young age that they are greatly affected as they grow up. These beliefs are taken into
consideration throughout daily life, which leads to people from different cultures acting
differently. These differences are able to alter the way different cultures and areas of the world
interact and act.

Attitude –

An attitude is an expression of favor or disfavor toward a person, place, thing, or event. It differs
between each individual. Everyone has a different attitude towards different things. The main
factor that determines attitude is likes and dislikes. The more one likes something or someone the
more one is willing to open up and accept what they have to offer.

Attitudes can sculpt personalities and the way people view who we are. People with similar
attitudes tend to stick together as interests and hobbies are common. This does not mean that
people with different attitudes do not interact, the fact is they do. What it means is that specific
attitudes can bring people together (e.g., religious groups).

Attitudes have a lot to do with the mind which highly relates to human behavior. The way a
human behaves depends a lot on how they look at the situation and what they expect to gain from
it.

Positive attitudes are better than negative ones as negativity can bring on negative emotions that
most of the time can be avoided. It is up to humans to make sure their attitudes positively reflect
the behaviors they want to show. This can be done by assessing their attitudes and properly
presenting them in society.

Other factors influencing behavior include:

 Age
 Genetics
 Ethics
 Authority
 Rapport
 Persuasion
 Coercion
 Emotions

Reasons for understanding human behavior

 To know why people act the way they do.

 To know how to treat different individuals
 To relate with others in a positive way
 To know the approach to take when dealing with theme
 To understand other people’s challenges
 To provide solutions to people’s problems
 To know the employees qualities
 It shapes personality – enhances understanding of different personalities
 It helps one to know how to deal with others.
 To enable people to communicate effectively
 To avoid conflicts

Behavioral science theories

These theories take complex views of work situations. they focus on the performance of
individuals and groups.

They also focus on individual behavior (human relations approach) and on group behavior as
well as the relationships amongst different groups affected by varied social and cultural beliefs.

The behavioral science theories include:

 Maslow’s hierarchy of needs theory

 McGregor Theory X and Theory Y.
These theorists believe that more than a social man, a worker is a self-actualizing man. Workers
want their lower level needs to be satisfied before higher order needs.

They believe that people should be motivated according to their needs perceptions and that they
differ with respect to their needs, values, attitudes, and perception therefore act differently
indifferent situations.
Managers must understand the needs and values and satisfy them through motivators and
synchronize their individual goals with organizational goals.

Since people do not react to the same situation in the same way, general principles of
management cannot always be applied in organizations.

Managers should crate social and friendly environment at the work place, allow participative
decision making and integrate individual goals so that employees cooperate with managers as a
group to increase productivity.

Features of behavioral science theories

 Emphasizes on participative and group decisions making rather than individual decision
making.
 Emphasizes on self direction and self control rather than control by mangers.
 Suggests positive measures to improve the performance of sub-standard workers rather
than taking negative actions against them.
 Considers organizations as a group of individuals and indentifies the reasons why
individuals join groups and factors that influences the group behavior. Informal groups
and group norms are considered important.
 While working together people form informal groups which have their own norms.
Group norms have powerful influence over organizations efficiency.
 Introduces the concept of ‘complex man’ over ‘social man’ with varied needs. Human
behavior is need-based. People react differently to different situations.
 Appreciates the conflict in the organization. Conflict of opinion is considered desirable
for human development.

Progressive Assessment Test – (PAT) - THREE

1. Distinguish between McGregor’s Theory X and Y managers (4 marks)

2. Explain how a theory Y manager achieves positive results from employees. (6 marks)
 TOPIC TWO
SOCIAL ORGANIZATION
LESSON FOUR
Introduction
Elton Mayo and his associates in their Hawthorne experiments pointed out the importance of
social variable in work organizations. The research by Kurt Levin in 1930 pave the way for
groups and group dynamics in organizations.
These studies point out that man is a social animal who prefers to live in a group rather than in
isolation. Each individual is a member of one or other group in the sense that he lives and
performs most of his meaningful activities in or through groups.
The behavior of an individual is conditioned to a marked extend by the group norms, beliefs,
values and the taboo of the group to which the individual belongs. Every manager should be
concerned with formation, membership and characteristics of groups in work organizations.
Social organization
The concept of social organization comprehends the system of obligation-relations existing in a
given society at a given time; this system of obligation-relations is most adequately evidenced by
the commonly held sets of behavior anticipations. These groupings of individuals in terms of
significant patterns of obligation-relations can be termed social structure.

Social organization comprises the people in a society who are considered as a system organized
by a characteristic pattern of relationships. It is the structure of social relations within a group,
usually the relations between its subgroups and institutions. It is a sociological concept, defined
as a pattern of relationships between and among individuals and groups.
Characteristics of social organization
Social organization can include qualities such as:
 size,
 sexual composition,
 spatiotemporal cohesion,
 leadership,
 structure,
 division of labor,
 communication systems etc. (Discuss each in relation to the context/subject)

A social system is a complex set of human relationships interacting in many ways. Each small
group is a subsystem within larger groups that are subsystem within even larger groups. The
behaviour of any one member can have an impact which is large or small, directly or indirectly
on the behaviour of any other as all parts of the system are mutually interdependent. Any social
system engages in exchanges with its environment, receiving input from it and providing output
to it.

A system is said to be in social equilibrium when its interdependent parts are in dynamic
working balance. When minor changes occur in the social system they are soon absorbed by
adjustments within the system and equilibrium is regained but single significant change or a
series of smaller rapid changes may throw the organization out of balance.

Any actual or proposed change in the social system or any behaviour of employee may have a
short term and long term effect on the system and its stakeholders as measured by the soft and
hard criteria .When these effects are favourable for the system it is said to have a functional
effect, but when the effects are unfavourable in nature it is said to have dysfunctional effect.

The dyad is the smallest level of organization that exists. It consists of two people and each
individual has total veto power over any aspect of the relationship. Dyads have the following
characteristics:
 Interaction is very personal and intimate.
 require continuing active participation and commitment of both members
 People make up rules during the interaction.
 are the most unstable of social groups

SOCIAL STRATIFICATION
Definitions
“Social stratification refers to “arrangement of any social group or society into hierarchy of
positions that are unequal with regard to power, property, social evaluation and psychic
gratification”.
It can also be said to be the process of ranking of individuals on a scale of superiority-inferiority-
equality, according to some commonly accepted basis of valuation.
Types of Social Stratification:
Social stratification is based upon a variety of principles that result to different type of
stratification.
The major types of stratification are
 Caste
 Class
 Estate
 Slavery

Caste is a hereditary endogamous social group in which a person’s rank and its accompanying
rights and obligations are ascribed on the basis of his birth into a particular group.
Class-Stratification on the basis of class is dominant in modern society. In this, a person’s
position depends to a very great extent upon achievement and his ability to use to advantage the
inborn characteristics and wealth that he may possess.
Estate system of medieval Europe provides another system of stratification which gave much
emphasis to birth as well as to wealth and possessions. Each estate had a state.
In slavery, every slave had his master to whom he was subjected. The master’s power over the
slave was unlimited.
Characteristics of Social Stratification:
Social stratification is universal: There is no society on this world which is free from
stratification. Modern stratification differs from stratification of primitive societies. It is a
worldwide phenomenon. According to Sorokin “all permanently organized groups are stratified.”
Stratification is social: It is true that biological qualities do not determine one’s superiority and
inferiority. Factors like age, sex, intelligence as well as strength often contribute as the basis on
which statues are distinguished. But one’s education, property, power, experience, character,
personality etc. are found to be more important than biological qualities. Hence, stratification is
social by nature.
It is ancient: Stratification system is very old. It was present even in the small wondering
bonds. In almost all the ancient civilizations, the differences between the rich and poor, humble
and powerful existed. During the period of Plato and Kautilya even emphasis was given to
political, social and economic inequalities.
It is in diverse forms: The forms of stratification is not uniform in all the societies. In the
modern world class, caste and estate are the general forms of stratification. In India a special type
of stratification in the form of caste is found. The ancient Aryas were divided into four varnas:
the Brahmins, Kshatriyas, Vaishyas and Sudras. The ancient Greeks were divided into freemen
and slaves and the ancient Romans were divided into the particians and the plebians. So every
society, past or present, big or small is characterized by diversed forms of social stratification.
Social stratification is Consequential: Social stratification has two important consequences
one is “life chances” and the other one is “life style”. A class system not only affects the “life-
chances” of the individuals but also their “life style”. The members of a class have similar social
chances but the social chances vary in every society. It includes chances of survival and of good
physical and mental health, opportunities for education, chances of obtaining justice, marital
conflict, separation and divorce etc.
Life style denotes a style of life which is distinctive of a particular social status. Life-styles
include such matters like the residential areas in every community which have gradations of
prestige-ranking, mode of housing, means of recreation, the kinds of dress, the kinds of books,
TV shows to which one is exposed and so on. Life-style may be viewed as a sub-culture in which
one stratum differs from another within the frame work of a commonly shared over-all culture.
Principles of social stratification
 It is a trait of society, not simply a reflection of individual differences – people born in a
wealthy family = better chance of doing well in life not because they are better individual
but because they have more opportunity.
 It carries over generation t generation – most people stay in the same social class as their
parents but some can experience social mobility, either upward downwards
 It is universal but variable – it is found everywhere in the work but is unequal and how
unequal it is depends on the place
 involves not just inequality but beliefs as well - It does not involve only the differences
but also the why there are differences.
Factors that determine social stratification
 Education
 Income
 Occupation
 Wealth
 Power & authority
 Prestige & popularity
 Social status
 Age
 Economic background
 Religion
 Culture
 Skill

Social Status
Status implies the position or the rank one holds in a social group, and role refers to the specific
functions that one is expected to perform in that society.
Characteristics of status
 The status is determined by the cultural situation of the particular society
 The status is determined only in relevance of the other members of the society
 Every individual has to play certain role in accordance with status
 Status is only a part of the society as a whole
 As a result of status the society is divided into various groups
 Every status carries with it some prestige
 According to status people may be divided into various categories.

Factors that determine social status

 Occupation
 Education
  Income
 Wealth

Social class
This is made up of people of similar social status who regard one another as social equals. Each
class has a set of values, attitudes, beliefs, and behavior norms which differ from those of the
other classes.
A social class is a stratum of people of similar position in the social status continuum.
A class is a number of people sharing one or more causes of life chances typical chances for a
supply of goods external living conditions and personal life experiences (Max Weber)
A social class is an aggregate of people who have same status, rank or common characteristics
(lifestyles). This aggregate of people is defined on the basis of their relationship to the economic
market who have different access to wealth, power and certain styles of life.

Progressive Assessment Test – (PAT) - FOUR

1. State three factors that determines the social group that an employee may join in an
organization (3 marks)
2. Outline six factors that determine social stratification in an organization (9 marks)
3. State three circumstances that fun social stratification (3marks)
4. State three features which may portray social status differences among employees in an
organization (4 marks)
5. Highlight four measures that may be taken by an organization to minimize the effect of
social stratification among its employees (8 marks)
LESSON FIVE
BUREAUCRACY

Bureaucracy is the basis for the systematic formation of any organization. It is designed to
ensure efficiency and economic effectiveness.

It forms the basis for decision making through a chain of manager before decisions are agreed
upon.

Bureaucracy constitutes the most efficient rational way in which one can organize the human
activity and the systematic processes and organized hierarchies are necessary for maintaining
order, maximizing efficiency and eliminating favoritism.

It is has a set of rules regulations, processes, procedures, patterns etc formulated to reduce the
complexity of management functioning.

Bureaucratic organization

A bureaucratic organization is a form of management that has a pyramidal command structure.

It is the most rational way to exercise vital control over the individual workers. It is very
organized with a high degree of formality in the way it operates.

Organizational charts generally exist for every department and decisions are made through an
organized process.

Max Weber a German sociologist was the major contributor of the bureaucratic organization and
bureaucratic management approach which were developed from his bureaucratic management
theory (Max Weber Theory).

This theory is related to the structure of administrate process of the organization which was
earlier described by Henri Fayol in his Administrative management theory.

According to the theory, there is a hierarchy in the organization which represents the clear lines
of authority to enable an individual to know his immediate superior to whom he is directly
accountable.

The theory is impersonal and the performance of the individual is judged through rule based
activity and promotions are based on merit and performance.

It has two essential elements.

1. It entails structuring an organization into a hierarchy. the organization

2. its members are governed by clearly defined rational legal decision-making rules.
Principles/features of bureaucratic organization/management
 1. Hierarchical management structure (hierarchy of authority/chain of command)
Managers are organized into hierarchical levels each level is responsible for its staff and overall
performance. There is downward delegation of authority where each superior exercises control
over his subordinates.

Levels show the lines of communication, degree of delegation, division of power and
responsibilities.

Each level controls the levels below and is controlled by the level above. Authority and
responsibility are clearly defined for each position.

2. Division of labor/division of work/task specialization

Tasks are clearly defined and employees become skilled by specializing in doing one thing.
There is clear definition of authority and responsibility. Tasks are divided into simple routine
categories on the basis of competences and functional specialization. Each employee is
responsible for what he does best and knows exactly what is expected of him and his powers in
the organization.

Each employee performs his specialized work in a predictable manner.

3. Formal selection process (technical competence)

Employee selection and promotion are based on experience, competence and technical
qualification demonstrated by examinations, education or training. The selection is done on the
basis of technical skills and competencies, acquired formal training, education and experience.
There is no nepotism.

4. Formal rules and regulations

The rules and regulations regarding the behavior, rights and duties are documented to ensure
reliable and predictable behavior. Managers must depend on formal organizational rules in
employee relations.

The rules and regulations are required to ensure uniformity and consistency such that employees
know what is expected of them.

5. Impersonality
Rules are applied uniformly to everyone. There is no preferential treatment or favoritism.
Regulations and clear requirements create distant and impersonal relationships between
employees.

The formal ways of dealing with subordinates by the superiors also make the system informal.

6. Career orientation
Employees are selected on the basis of their expertise which ensures right job placement.
Workers fare protected from arbitrary dismissal. There is also separation of personal and official
property (separation from ownership and managers as the managers are career employees.
 7. Record keeping (paperwork)
Every decision and action is recoded in its original as well as draft form.

features of bureaucratic organization/management

 Many rules
 Procedures and requirements
 Division of labor and responsibilities.
 Clear hierarchies
 Impersonal interactions.
Criticism of bureaucratic organization/management

 Emphasizes only on rules and regulations

 Unnecessary delays in decision making due to formalities and rules of bureaucratic
organization
 Coordination and communication is hindered because of too much formalities and rules.
 A lot of paperwork and too much levels of authority which results in a lot of wastage of
time, effort and money. Not ideal for efficiency.
 It has too much formalities and not suitable for business organizations. However, it is
suitable for government organizations.
 Too much importance is given to technical qualifications of the employee for promotion
and transfers. Dedication and commitment of employees are not considered.
 Limited scope of human resources. No importance is given to informal groups and no
initiative given to form one.
Advantages of bureaucratic organization/management

 Central authority in bureaucracy makes it effective in organizations.

 It supports the hiring of specialized officials.
 It follows a standard operating procedure.
 It sets room for no favoritism
 It allows for merit – based hiring and promotion
 It plays an important role in policy making
 It encourages specialization
 There is a formal structure which sets the pace and framework for the functioning of the
organization.
 It enables predictability – rules, regulations, specialization, structure and training enhance
productivity therefore ensure stability in the organization.
 Expectations are clear
 It promotes equal treatment
Disadvantages of bureaucratic organization/management

 It can hinder achievement of results in time specially because of the need to follow a
chain of command in decision making
 Leads to boredom and accepts productivity (repetitive tasks)
 Results to passive and rule-based human beings
 Result to inefficiency as there is less completion since hiring is based on merit and
qualifications
  Rigidity – rules and regulations are rigid and inflexible which discourages initiative and
creativity.
 Impersonality – there is a mechanical way of doing things. Organization rules and
regulations are given priority over ran individuals needs and emotions.
 Paperwork (records) – it involves excessive paperwork as every decision must be put into
writing. All documents have to be maintained in their draft and original forms. This
leads to greater wastage of time, stationery and space.
 Empire building – people in bureaucracy tend to use their positions and resources to
perpetuate self-interests. Every superior tries to increase the number of his subordinates
as if this number is considered a symbol of power and prestige.
 Red tape- bureaucratic procedures involved cause delays and frustration in the
performance of tasks.
PRINCIPLES OF ORGANIZING

i. Principle of Specialization
According to the principle, work should be divided amongst the subordinates on the basis of
qualifications, abilities and skills. It is through division of work specialization can be achieved
which results in effective organization.

ii. Principle of Functional Definition

According to this principle, all functions should be clearly defined to the managers and
subordinates. This can be done by clearly defining the duties, responsibilities, authority and
relationships of people towards each other. For example, the functions of production, marketing
and finance and the authority should be clearly defined to every person attached to these
department.

iii. Principles of Span of Control/Supervision

According to this principle, span of control is a span of supervision, i.e. the number of employees
that can be handled and controlled effectively by a single manager. There are two types of span
of control:-

Wide span of control- It is one in which a manager can supervise and control effectively a large
group of persons at one time. The features of this span are:-

i. Less overhead cost of supervision

ii. Prompt response from the employees
iii. Better communication
iv. Better supervision
v. Better co-ordination
vi. Suitable for repetitive jobs
Narrow span of control - According to this span, the work and authority is divided amongst
many subordinates and a manager doesn't supervises and control a very big group of people
under him. Its Features are:-
 1. Work which requires tight control and supervision, for example, handicrafts, ivory work,
etc. which requires craftsmanship, there narrow span is more helpful.
2. Co-ordination is difficult to be achieved.
3. Communication gaps can come.
4. Messages can be distorted.
5. Specialization work can be achieved.
Factors influencing Span of Control

1. Managerial abilities- Where managers are capable, qualified and experienced, wide span
of control is always helpful.
2. Competence of subordinates- Where the subordinates are capable and competent and
their understanding levels are proper, the subordinates tend to rarely visit the superiors
for solving their problems. In such cases, the manager can handle large number of
employees. Hence wide span is suitable.
3. Nature of work- If the work is of repetitive nature, wide span of supervision is more
helpful. On the other hand, if work requires mental skill or craftsmanship, tight control
and supervision is required in which narrow span is more helpful.
4. Delegation of authority- When the work is delegated to lower levels in an efficient and
proper way, confusions are less and friendliness of the environment can be maintained. In
such cases, wide span of control is suitable and the supervisors can manage and control
large number of sub- ordinates at one time.
5. Degree of decentralization- Decentralization is done in order to achieve specialization in
which authority is shared by many people and managers at different levels. In such cases,
a tall structure is helpful. In such cases, wide span again helps.

iv. Principle of Scalar Chain

Scalar chain is a chain of command or authority which flows from top to bottom. A scalar chain
of command facilitates work flow in an organization which helps in achievement of effective
results. With a chain of authority available, wastages of resources are minimized, communication
is affected, overlapping of work is avoided and easy organization takes place. As the authority
flows from top to bottom, it clarifies the authority positions to managers at all level and that
facilitates effective organization.

v. Principle of Unity of Command

It implies one subordinate-one superior relationship. Every subordinate is answerable and
accountable to one boss at one time. This helps in avoiding communication gaps. Feedback and
response is prompt. Unity of command also helps in effective combination of resources, i.e.
physical, financial resources which helps in easy co-ordination and effective organization.
Authority Flows from Top to Bottom.

Progressive Assessment Test – (PAT) - FIVE

1. Explain Four Characteristics of bureaucracy system of organization (8marks)
2. Highlight five principles of organization (5marks)
3. Outline six Criticism of bureaucratic organization/management (6 marks)
4. Highlight six limitations of bureaucracy as a management style. (6 marks)
5. Explain five factors that influence span of control (5marks)
 TOPIC THREE

MOBILIZATION AND EMPLOYEE MORALE

LESSON SIX

Definition

The term motivation is derived from the word ‘motive’ which means needs, desires, wants or
drives within the individual.

It is the process of stimulating people to actions to accomplish the goals, the process of inducing
people to perform them their best ability to accomplish their goals.

Motivation stimulates, inspires and induces the employees to their best capacity. Motivation is
psychological term which means it cannot be forced to employees. It comes automatically from
inside the employees as it is the willingness to do the work

Motivation is a general desire, need or want that generates the energy required for someone to
behave in a particular way.

It is the reason or reasons for acting or behaving in a particular way.

Importance of motivation

 Enables the management to meet the company’s goals,

 Leads to increased productivity and allows an organization to achieve higher levels of
output
 Helps to change negative attitudes to positive attitudes. Motivated employees make the
best use of resources.
 Motivation improves performance level of employees – they perform jobs to the best of
their ability with minimum wastages of time and other resources.
 It bridges the gap between the ability to work and willingness to work.
 Helps in achieving the organizations goals – they contribute their best efforts for the
realization of the organizations goals as they know with the achievement of such, then
they are capable of achieving their individual goals.
 It creates a supportive work environment - improves superior and subordinate relations.
When employees get their needs satisfied or get the recognition and respect in the
organization, then they always offer a supportive hand to superiors. there is more
cooperation and coordinating within the organization and all the employees work with a
team spirit.
 It helps the managers to introduce changes – the motivated employees show less
resistance in accepting the changes according to changes in the business environment
because they know if the changes are not implements in the organization it will lose
employees and will not fulfill their needs.
 Motivated employees are supportive and cooperative in accepting changes to the
organization.
  Reduction in employee turnover – motivation creates confidence in the employees to get
their needs satisfied in the organization itself therefore they will not leave.

Features/characteristics/nature of motivation

Motivation is a psychological phenomenon

It is an internal feeling (need, desire, aspiration) which means it cannot be forced on employees.
It influences human beings to behave in a particular way e.g. desire to have a new house, respect,
and recognition.

Motivation produces goals directed behavior

Motivation induces people to behave in such a manner so that they can achieve their goals. A
motivated person does not need supervision or direction. He will always work in a desired
manner e.g. if a person has a motive to get promotion so he will work efficiently to get
promotion.

Motivators can be positive as well as negative

To motivate employees, managers use various motivators. Some are positive e.g. promotion,
increment, bonus, respect, recognition while others are negative e.g. warning, issue of memo,
demotion, fear, stopping increment.

Motivation is a complex process

It is a difficult task therefore mangers must understand various types of human needs

Motivation is dynamic

Human beings are unlimited and go on changing continuously. Satisfaction of one need gives
rise to another so managers have to continuously perform the function of motivation.

Benefits of motivation

 Increased employee commitment – workers give their best effort in tasks assigned
 Improved employee satisfaction – leads to positive growth of the organization.
 Ongoing employee development – facilitates self – development of an individual
 Improved employee efficiency – leads to increased productivity
 Cost saving employees work faster and use their creativity to recommend process
improvement that can lead to cost saving.
 Increased quality - better production.
 Reduced turnover
 Satisfaction of needs – personal needs are met
 Productivity
  Promotes self – discipline.

Ways of increasing employee morale

1. Communication – positive communication, interpersonal relationships/interactions e.g.

coffee breaks
2. Value individual contributions – engage employees in decision making and make use of
their suggestions
3. Positive workplace environment – create a friendly work environment that is welcoming
and comfortable.
4. Acknowledge employees achievement – give credit when it is due. Rewarding
employees.
5. Encourage friendly competition – this makes employees more productive as they become
more engaged and participative.
6. Have a meaningful and worthwhile goal – have a vision and plan at a corporate and
individual level. Set achievable goals as they give employees the drive to work harder
without being asked to.
7. Create career paths – employees should understand the incentive to be provided therefore
they become further motivated.
8. Lead by example
9. Encourage creativity – encourage ideas and suggestions
10. Encourage teamwork- remove bureaucracy and hierarchy within the company. Create
openness to new ideas at any level and working together as a team.
11. Welcome all ideas.
12. Make expectations clear
13. Provide continuous feedback
14. Correct privately
15. Praise publicly
16. Recognize great work
17. Set small measurable goals
18. Applaud results
19. Stay positive
20. Provide security

Progressive Assessment Test – (PAT) - SIX

1. Explain six ways in which a manager may motivate employees in an organization (9

marks)
2. Explain six non-monitory factors that may motivate employees in an organization (9
marks)
LESSON SEVEN

Theories of motivation
Content theories of motivation

They focus on WHAT motivates human behavior

These are:

1. Maslow’s need hierarchy theory

2. Alderfer’s ERG theory
3. McClelland’s achievement motivation
4. Herzberg’s two factor theory
5. McGregor’s theory X and theory Y

Process theories of motivation

They focus on HOW human behavior is motivated

1. Skinner’s reinforcement theory

2. Victor Broom’s expectancy theory
3. Adam’s equity theory
4. Locke’s goal setting theory

Motivation is a psychological phenomenon and the needs of employees play a very important
role in motivation.

1. Maslow’s Hierarchy of needs theory

This is the earliest and most widely knows theory of motivation, developed by a psychologist
Mr. Abraham Harold Maslow (1943) in the 1940’s and 1950’s.

According to Maslow, human behavior is related to his needs. It is adjusted as per the nature of
needs to be satisfied.

There are five sets/types of human needs arranged in a hierarchy of their importance and priority.
When one set of needs is satisfied, it ceases to be a motivating factor. The next set of needs
takes its place. These needs take the form of a pyramid. The theory condenses needs into five
basic categories.

The lowest unsatisfied need becomes the dominant or the most powerful and significant becomes
dominant or the most powerful and significant need. The most dominant need activates an
individual to act to fulfill it. Satisfied needs do not motivate. Individual pursues to seek a
higher need when lower needs are fulfilled.
Attention to all needs is important and essential for the motivation of different categories of
employees.

Maslow’s need hierarchy theory is a theory helps to develop an understanding on the

human needs. These are the desires of the workforce which must be fulfilled for the worker to
be motivated to work.

This theory is described in five levels:

1. Physiological needs/basic/biological
These needs include basic requirements for survival and maintenance of human life. The
common physiological needs are food, shelter, clothing and sexual satisfaction. The employees
develop these needs for their survival that is why they are at the top in the sequence. These
needs can be satisfied when the monetary incentives are offered by the employers. This includes
the most basic needs for human to survive, such as air, water and food. They are the most
dominant of all needs.

2. Safety and security needs (secure source of income, place to live health and well-being.
(security of income, salary, body employment, to have a place to live, good health, financial aid,
and permanent scholarship.

When the physiological needs are fulfilled, they wish to meet the next level of needs. Safety and
security needs:

It is the desire for safety, security or protection. It is connected with the psychological fear of
loss of job, property, criminal assaults, murder, natural catastrophes such needs can be met by
provision of insurance policies, savings accounts, job security, and pension for old age, safety
against accidents, illness and adverse impacts.

a) Physical security: this is safety from illness, accident, fire etc.

b) Economic security: this means having sufficient funds to meet the future physiological
needs. These needs are motivated by monetary incentives.

3. Social needs assimilation/belonging needs/Belongingness and love (integration into

social groups)
These are the need for love, affection, companionship, friendship etc. Once the people satisfy
their physiological and safety needs then the social need becomes more active and to fulfill them,
managers prefer team – work, arrangement formal and informal get-togethers so that employees
can develop social relationships.

A human being is a social animal. he desires to stay in group. He feels that he should belong to
one or the other group and the member of the group should accept him with love and affection.
Every person desires to be affiliated to such groups. This is a sic social need of an individual.
He feels that he should be loved by other members. He needs friends and interaction with his
friends and superiors of the group such as fellow employees or superiors. Social needs occupy
third position in the hierarchy of needs.

4. Esteem needs/ego needs

The need to be valued, respected and appreciated by others, need to have power and prestigious
position.

These needs are related to the respect and recognition. They can be satisfied through non-
monetary incentives.

The need is divided into two:

i) Self-esteem needs: need for self – respect - independence, freedom and self-
confidence, competence etc.
ii) Esteem of others: Need for respect from others, e.g. reputation, attention, recognition
and appreciation of others, prestige, status and loving their opinion (lower esteem
need)
These needs can be satisfied by giving recognition to the goods work of employees

5. Self-actualization needs
It is the desire to become what one is capable of becoming (growth need). This need refers to
realizing or reaching to the aim of your life.

An individual’s desire to grow and develop to his/her fullest potential - to be what one must be/
to accomplish everyone one can, to become the most that one can be

It reflects an individual’s desire to grow and develop to hi/her fullest potential e.g. challenging
potions, or creative tasks. Creativity, spontaneity, problem solving, lack of prejudice, acceptance
of facts.

Assumptions of Maslow’s need hierarchy theory

 People’s behavior depends on their need. Human behavior can be changed or motivated
by fulfilling their needs
 Needs follow the hierarchy starting from physiological needs.
 Man is a wanting being i.e. his wants are growing continuously even when some wants
are satisfied. Human needs are of varied and diversified nature. They can be arranged in
a hierarchy of importance progressing from a lower to a higher order of needs.
 Needs have a definite hierarchy of importance. As soon as needs on a lower level are
fulfilled, those on the next level will emerge and demand satisfaction. (Bread/food) is
essential and is a primary need of every individual. When the psychological needs are
fulfilled, man feels the other needs.
 A satisfied need does not act as a motivator.
 As one need is satisfied, another takes its place/replaces it.
Advantages of Maslow’s need hierarchy theory

 the theory is simple to understand and relate with the theory (it can easily be applied)
 It takes into account the human nature – there is a correlation with stages of individual
human development.
 It is relevant in all fields.
 the theory has helped managers to understand the behavior of their employees.
 It has helped the managers to provide the right financial and non financial motivation to
their employees.
 It has helped to increase the overall efficiency, productivity and profitability of the
organization.
Limitations of Maslow’s need hierarchy theory

 Maslow’ theory is over simplified and is based on human needs only. There is lack of
direct cause and effect relationship between need and behavior.
 The theory has to refer to other motivating factors like expectations, experience and
perception.
 Needs of all employees are not uniform. Many are satisfied only with physiological
needs and security of employment.
 The pattern of hierarchy needs as suggested by Maslow may not be applicable uniformly
to all categories of employees.
 Maslow’s assumption of need hierarchy does not hold good in the present age as each
person has plenty of needs to be satisfied, which may not necessarily follow Maslow’s
need hierarchy.
 Maslow’s theory is widely accepted but there is little empirical evidence to support it. It
is largely tentative and untested. His writings are more philosophical than scientific.
 Not all individuals think in the same way hence some individuals social affection and
respect is more important than safety needs
 It is difficult to measure the satisfaction which one gets after satisfying each level of need
as it is subjective in nature – it deals with human mind which cannot be predicted by any
machine or method.

2. Alderf- ERG theory (existence needs, relatedness needs and growth needs
American psychologist Clayton Alderfer redefined Maslow’s need hierarchy theory by re-
categorizing the needs into three simpler and border classes of needs (distinguished three steps or
classes of needs)

 Existence - Maslow’s physiological and safety needs belong to their to existence needs.
 Relatedness - Relatedness can be harmonized to belongingness and esteem of others.
 Growth - Growth is the same as self-esteem plus self-actualization.
Both Maslow and Alderfer try to describe how these stages of needs become more or less
important to individuals:
Existence needs: these include needs for basic material necessities. i.e. individual’s
physiological and physical safety needs. To exist every individual needs extrinsic values such as
food, drink, warmth and love. These are the basis for human existence.

Relatedness needs: individuals need significant relationships (with family, peers or superior)
love and belongingness, getting public fame and recognition. They strive toward public fame and
recognition. It is the social needs and external component of esteem needs.

Human beings are social animal and need appreciation form the people directly involved in their
lives such as family, friends, colleagues and employers.

Interpersonal relationships are important for a person’s social status and interaction with other
people.

Growth needs: need for self-development, personal growth and advancement. This class of
needs contain Maslow’s self-actualization needs and intrinsic component of esteem needs.

Alderfer agrees with Maslow that unsatisfied needs motivate individuals and individual general y
move up the hierarchy in satisfying their needs. i.e. they satisfy lower order before higher-order
needs.

According to Alderfer, it is possible for people to regress down to a lower level even though their
needs in this level have been satisfied before from this level people can climb to a higher level
again.

As the lower order needs are satisfied, they become less important. However, as higher –order
needs are satisfied why become more important.

Differences between Maslow need hierarchy theory and Alderfer’s ERG theory

 ERG theory states that at a given point of time, more than one need may be operational.
 ERG theory show that if the fulfillment of a higher-level need is subdued, there is an
increase in desire for satisfying a lower-level need.
 According to ERG theory, different needs categories can be satisfied simultaneously.
Therefore, the necessary order proposed by Maslow no longer applies.
 According to Maslow, an individual remains at a particular need level until that need is
satisfied. While according to ERG theory, if a higher-level need aggravates, an individual
may revert to increase the satisfaction of a lower-level need. This is called frustration-
regression aspect of ERG theory. For instance when growth needs aggravates, then an
individual might be motivated to accomplish the relatedness need and if there are issues
in accomplishing relatedness needs then he might be motivated by the existence needs.
Thus, frustration/aggravation can result in regression to a lower-level need.
 Maslow’s need hierarchy theory is rigid as it assumes that the needs follow a specific and
orderly hierarchy and unless a lower-level need is satisfied, an individual cannot proceed
to the higher level need, ERG theory is very flexible as he perceived the needs as a
range/variety rather than perceiving them as a hierarchy. According to Alderfer, an
 individual can work on growth needs even if his existence or relatedness needs remain
unsatisfied. Thus, he gives explanation to the issue of “starving artist” who can struggle
for growth even if he is hungry.
Advantages of ERG theory

 The theory is more consistent our knowledge of theory individual differences among
people. Every individual will have different importance for different group of needs
depending upon his education, family background and cultural environment.
 ERG theory takes the strong points of the earlier content theories but is less restrictive
and limiting as compared to the others.
Limitations of Maslow’s need hierarchy theory

 ERG theory does not offer clear cut guidelines. It says that an individual can satisfy any
of the three needs first. But how will we determine which of the three needs is more
important to that person.
 The theory is new in concept as compared to the Maslow’s theory.