Week 6: The Humanistic Perspective on Management

Clive explains how human concerns and management can work together and that managers look for the best way to motivate and keep the workforce active

WHAT IS PATERNAL PHILANTHROPIC MANAGEMENT

When a company acts as a father figure towards employees and local communities as they take care of their welfare and needs

WHAT IS PATERNALISM?

When a company behaves in a protective way making decisions for employees or communities, believing it knows what’s best for them (like a parent)

WHAT IS PHILANTHROPY?

The company gives back to society through donations, community projects, or social programs especially in countries where it operates

WHAT DOES PATERNAL PHILANTHROPIC MANAGEMENT HELP WITH?

·       Build a good reputation and trust with local communities.

·       Show corporate social responsibility (CSR).

·       Reduce conflicts with local governments or workers.

·       Strengthen employee loyalty and morale.

HOW DOES HUMANISTIC MANAGEMENT VIEW LONG TERM WELLBEING OVER SHORT TERM PROFIT?

Humanistic management sees success as creating value for people and planet, not just shareholders

WHAT IS ROBERT OWEN’S QUOTE ON WORKING CLASS?

“Working class may be injuriously degraded and oppressed, when they are overworked by their employer and when they are paid low wages for their labor”

WHAT DID MICHEAL GARRIGAN SAY ABOUT HUMANISTIC MANAGEMENT?

“They were so concerned about attrition and

losing people that they rolled back all the

policies that us as managers had to enforce,”

WHAT WERE MARY PARKER FOLLET’S CONCERNS ABOUT THE HUMANISTIC APPROACH?

o   Concerned for ethics and power

o   Showed interests in social work, philosophy, politics, and management

o   She defined management as “the art of getting things done through people”

o   Identified importance of organization as a community

o   Replaces orders with teaching

o   Give reason and purpose behind orders

o   Showed importance of common superordinate goals (mission/vision)

WHAT WERE CHESTER IRIVNG BARNARD’S CONCERNS ABOUT THE HUMANISTIC APPROACH?

o   Focused on the concept of informal organization

o   Informality can be a benefit for the organization if managed well

o   Organization employees aren’t machines rather systems of cooperative human activity

o   Workers have free will

o   Choosing to follow orders will determine success

o   How much workers contribute will depend on management encouragement rate

WHAT IS THE HUMAN RELATION’S MOVEMENT?

A research-based movement focusing on the understanding of individual/group psychology and how it improves working output in organizations; associated with the Hawthrone effect

WHAT WERE THE HAWTHORNE STUDIES?

Studied how social and emotional factors affect productivity

Found that attention and care improve performance more than money

WHAT WERE THE KEY EXPERIMENTS OF THE HAWTHORNE STUDIES?

·       Illumination study:

The study was set up to see if changing in lighting changes workers’ productivity, Workers felt more noticed, more watched

 

·       Relay Assembly Test:

Small team setting boosted morale and output

 

·       Bank Wiring Room (Mayo and W. Lloyd Warner):

Peer pressure and informal rules shaped behavior more than pay

 

·       Employee interviewing Project:

Listening to workers improved satisfaction and performance

WHAT WRE ELTON MAYO’S CONCERNS ABOUT THE HUMANISTIC APPROACH?

o   Connected his interests in shell shock

o   Workers are humans and humans are psychological and social beings so need to consider psychology of workers in their social setting

WHAT WERE FIRTZ ROETHLISBERGER’S CONCERNS ABOUT THE HUMANISTIC APPROACH

o   Wrote up findings from the research

o   Classical influential management theory book: Management and the Worker (1939)

WHAT IS THE HAWTHORNE EFFECT?

·       People change behavior when they know they’re being observed

·       Workers are motivated by social belonging, not just money

 

WHO QUOTED THIS?:

“Man’s desire to be continuously associated in work with his fellows is a strong, if not the strongest, human characteristic. Any disregard of it by management or any ill-advised attempt to defeat this human impulse leads instantly to some form of defeat for management itself”

(Mayo, 1945)

WHAT WAS ABRAHAM’S MASLOWS HIERACHY OF NEEDS?

Workers have layered needs:

1.    Physiological- food, water, rest

2.    Safety- job security, safe environment

3.    Belonging- friendship, teamwork

4.    Esteem- recognition, achievement

5.    Self- actualization- personal growth, creativity

WHAT IS DOUGLAS MCGREGOR’S THEORY X AND THEORY Y?

o   Theory X: Assumes workers dislike work, need control

o   Theory y: Assumes workers want to do well, seek responsibility

WHAT WAS FREDRICK HERZBERG’S TWO FACTOR THEORY?

Herzberg studied what makes people satisfied/dissatisfied at work. He found that two different sets of factors affect motivation:

 

1.    Motivators (Cause Satisfaction)

These are factors that make people feel happy and fulfilled at work. They relate to the nature of the job itself

o   Achievement

o   Recognition

o   Meaningful work

o   Responsibility

o   Personal growth

o   Promotion

E.g. if an employee is given a challenging project and praised for doing it well, they feel motivated

 

2.    Hygiene Factors (Prevent Dissatisfaction)

These are factors that make people feel happy and fulfilled at work. They relate to the nature of the job itself

o   Salary

o   Company policies

o   Job security

o   Working conditions

o   Relationships with boss

o   Supervision