Human Relations: A Background PDF

1 C HA P TE R ON E HUMAN RELATIONS A Background LEARNING OBJECTIVES After studying this chapter, you will be able to: LO 1-1 Define human relations. LO 1-2 Explain the importance of human relations in business....

1 C HA P TE R ON E HUMAN RELATIONS A Background LEARNING OBJECTIVES After studying this chapter, you will be able to: LO 1-1 Define human relations. LO 1-2 Explain the importance of human relations in business. LO 1-3 Discuss the challenges of human relations as these factors affect success in business. LO 1-4 Identify what the study of human relations does not include. LO 1-5 Describe the areas of emphasis for human relations in today’s workplace. LO 1-6 Discuss a short history of the study of human relations. S T R AT EG I ES F O R SUCCESS Strategy 1.1 Develop Mutual Respect Strategy 1.2 Build Your Communication Skills 2 Flying in Rough Weather SITUATION certain, though, that a serious human rela- The pilot hesitated. Weather conditions were tions problem was involved in this tragedy. terrible on that day in 1982. Freezing rain was Once it became clear that the plane was in falling in Washington, D.C., and his young trouble, the two men, who had previously copilot was bugging him. The younger man been formal with each other, began to call kept asking puzzling questions. “Why does each other by first names. But it was too late this gauge read like this? Are you sure we’re for a better relationship to help this situation. all right to take off? Is it safe?” If communication lines had remained open between the two men—if the younger man had felt confident enough about DISCOVERY himself to speak out forcefully and the older man more will- The pilot had to decide. “Let’s go!” he finally grunted. Less ing to listen—this tragedy would likely have been avoided.1 than 30 minutes later the plane had crashed. The crew and most of the passengers were dead, drowned in the icy THINK ABOUT IT Potomac River. When the airplane’s black box was exam- Think about how human relations affect most ined, FAA investigators heard that a young copilot with some situations. Can you think of a circumstance that might honest misgivings about take-off was ignored by an older have been improved by better human relations in your pilot—for reasons no one could fully explain. We can be own life? 3 4 PART I Human Relations and You WHAT IS HUMAN RELATIONS? Not all human relations decisions involve life-or-death outcomes, but they can have very serious impacts. The importance of human relations in our personal and work lives cannot be exaggerated. The skills that are necessary for good relations with others are the most important skills anyone can learn in life. human relations Human relations is the skill or ability to work effectively through and with The skill or ability to work other people. Human relations includes a desire to understand others, their effectively through and with needs and weaknesses, and their talents and abilities. For anyone in a work- other people. place setting, human relations also involves an understanding of how people work together in groups, satisfying both individual needs and group objec- tives. If an organization is to succeed, the relationships among the people in that organization must be monitored and maintained. In all aspects of life, you will deal with other people. No matter what you do for a living or how well you do it, your relationship with others is the key to your success or failure. Even when someone is otherwise only average at a job, good human relations skills can usually make that person seem better to others. Sadly, the opposite is also true: Poor human relations skills can make an otherwise able person seem like a poor performer. A doctor who respects patients, a lawyer who listens carefully to clients, a manager who gets along well with others in the workplace: all of these people will most likely be thought of by others as successful. THE IMPORTANCE OF HUMAN RELATIONS SKILLS Other reasons for studying human relations include the following: 1. Human rights. Today, managers and employees have more about... a greater awareness of the rights of employees. This awareness calls for more skillful relations among Internal customers can be defined as a employees, using tact, trust, and diplomacy with department’s employees, or as employees in other departments within an organization. greater skill. The rights of all others involved in the dealings of an organization must be respected and protected as well. In today’s workplace, the term internal customer is often used. This identifies a new trust attitude toward employees as the other customers To rely on, or have confidence in a company. Companies must also protect the human rights of tradi- in, the honesty and integrity tional customers, managers, and even competitors. of a person. 2. The global marketplace. The United States seems to have fallen into disfavor in many countries—even countries we had long considered to be our friends. Often, when anti-American stories are told, they involve Americans using poor human relations skills when doing business with people from other cultures. Improving interpersonal skills (the skills asso- ciated with getting along with others) can be a factor in fighting the wide- spread anti-Americanism that sometimes seems to be growing worldwide.2  Human Relations: A Background CHAPTER 1 5 3. Emphasis on people as human resources. Two decades ago, many fore- casters predicted that by this time in history, strong computer skills would be the number one factor in the workplace. However, now, perhaps more than ever, managers and corporate planners are placing great emphasis on the human factor. The two sets of behaviors now considered the most important for new job applicants are communication skills and human relations abilities.3 This trend, emphasis on what are often called busi- ness “soft skills,” will likely continue in the future. 4. Renewed emphasis on working groups. Today’s employees tend to like working as teams and being involved in making decisions as a group. Group work is a necessity Helping groups work well together in such endeavors (as either a team in today’s workforce. member or leader) requires a great deal of human relations skill. Both managers and employees need to understand the dynamic of group interaction if such participation is to be effective. 5. Increasing diversity in the workplace. Few countries on earth contain the diversity of race, religion, and culture that exists in the United States. The number of foreign-born Americans in the United States in 1970 was estimated at 10 million. By the year 2000 the number had grown to 28 million (about 10 percent of the total population), and the number is projected to reach 48 million by the year 2020.4 The United States gains an international migrant every 25 seconds.5 Add to this reality the increase in the number of women in the workplace today compared with past years, and the number of employees staying in the workplace past typical retirement age. Experts predict that the number of older workers will increase more than five times faster than the overall labor force over the next several years, and that ethnic and racial diversity will continue to increase as well.6 A deep understanding of the differences that diver- sity brings is one of the most important skills in human relations. Human Relations and You The study of human relations can help you in several ways. Human relations skills can help you get a job, enjoy your work, be more productive at it, and stay there longer with better chances for advancement. An understanding of yourself and others can help you be happier and more productive in all areas of your life. You, the Manager A percentage of students who read this book will one day become managers. For a manager, no skill area is more important than human relations abilities. A manager with good human relations skills will retain employees longer, be more productive, and provide employees with an enjoyable environment. The most common reason for failure in the job of manager is faulty human relations skills.7 Because interpersonal skills are so important, experts often suggest that new managers should put as much effort into studying people as they put into developing technical skills.8 6 PART I Human Relations and You You, the Entrepreneur more about... In the 21st century, an increasing number of today’s An entrepreneur is someone who organizes business students are entering the exciting realm and assumes the risks of beginning a business of entrepreneurship: owning their own businesses. enterprise. When you are the owner and operator of a busi- ness, your people skills—or human relations—are the most important factors in your success. In an e-commerce business, although there is less face-to- face contact with customers and suppliers, the ability to work with people and to fulfill their needs remains extremely crucial to success. In a larger sense, your knowledge of human relations helps the work you do—or the business you own—provide fulfillment. Famed Russian author Fyodor Dostoyevsky wrote, “If it were desired to reduce a man to nothing- ness, it would be necessary only to give his work a character of uselessness.”9 Many entrepreneurs become business owners to escape the feeling of use- lessness associated with their former jobs. The entrepreneur is in the posi- tion of being able to control the human climate of the business he or she owns and operates. You, the Employee Underdeveloped interpersonal skills represent the single most important reason for failure at a job. This is especially true in the early days and weeks on a new assignment.10 Making a good impression on your superiors, your peers, and all other co-workers will set you on a good track. Developing inter- personal skills is extremely important to the advancement of your career and will affect the ways in which your fellow employees, supervisors, and customers view your overall performance.11 CURRENT CHALLENGES IN HUMAN RELATIONS Today’s Generation Y, the generation now enter- more about... ing the job market, can tend to find that good, Generation X is the generation of Americans sustainable-wage jobs are hard to come by, and born between 1965–1980, following the Baby advancement is very difficult. The problems faced Boomers who were born during the years by this group and by Generation X are often 1946–1964. blamed on the “Baby Boomers,” the late-middle- Generation Y, also called the “Millennial aged people who are mostly in management posi- Generation,” generally refers to Americans born after 1980, especially students who are now tions above them. Although a “generation gap” graduating from high school and either going to is nothing new in our history, this one affects college or entering the job market. The Millennial human relations in the workplace directly and Generation is a fast-growing segment of today’s forcefully.12 You will learn more about this topic workforce. in Chapter 14, which discusses issues of workplace diversity.  Human Relations: A Background CHAPTER 1 7 Increased Competition in the Workplace Competitiveness reaches into all areas—urban, suburban, and rural—and affects all businesses, large and small. Small businesses feel pressure to meet the high international standards of the foreign market, and of the huge multinational companies that dominate the economy. When a chain retailer such as Walmart moves into a small town, the competition felt by local business owners is very real. Likewise, the increasing number of people doing business on the Internet has created a source of competition unlike anything else in human history. Higher paying jobs for all age groups are more competitive than before. Having a college degree is no longer a ticket to a meaningful career, as it was only a generation ago. This new reality causes a great deal of frustration for many people in the workplace, and many human relations problems result. Another very important factor in competition is the current strength of some Asian countries, especially China, which have an ever-increasing share of the world economy. During the past two decades, for example, China developed economically at the average rate of 9.2 percent annually.13 Economic factors that have made this power position possible are lower labor costs, a nationwide desire to compete, and a government role that allows potent government help to businesses. Experts predict that countries such as China, India, Japan, and other Asian nations will continue to have a major impact on world markets, and continue their growth and competition with the traditionally dominant West.14 Dual-Career Families Most families now need income from both adult members to survive comfort- ably. This reality has placed a strain on the family and its members—a strain that is felt in the workplace in several ways. First, additional financial pres- sures cause workplace stress. Second, the time needed for the everyday reali- ties of child rearing—such as visits to the family doctor and transportation to Divorce: a heavy impact on employees’ lives and from school—create difficulties for everyone involved. Single-Parent Families and Divorce Two important factors have contributed to the existence of a higher number of single parents than was prevalent among the baby boomer generation: a high divorce rate and an increase in the number of never-married parents. The parent—often the mother—must be the provider, taxi service, spiritual guide, and emotional support source. These many roles often result in a spillover effect of frustration and stress in the work- place. This type of worker can be truly overloaded. A divorced person typically has to go through a period of emotional recovery, during which many emotional issues can form. Such issues often negatively affect job performance and attitudes, harming relationships with 8 PART I Human Relations and You co-workers, bosses, and fellow employees. Besides the already-heavy bur- dens of single parenthood that divorced, single workers have, they are often dealing with challenging issues of self-worth and self-esteem. Two Generations of Dependents People are living longer now than ever before.15 This rise in life expectancy, along with fewer high-income jobs for senior citizens, and cuts to pension funds and post-retirement health insurance, means that many middle-age adults now find themselves helping to support their own children along with their aging parents and parents-in-law–all at the same time. These middle- aged adults who find themselves squeezed for time and finances are often referred to as the “sandwich generation” (with the elderly dependent parents as one piece of bread, and the dependent children as the other). The added responsibilities exist when parents or in-laws live with the adult children and their families, but also when elderly parents live alone or in retirement homes. The emotional impact affects all involved, including the dependent parent who usually would prefer self-sufficiency. WHAT HUMAN RELATIONS IS NOT Now that you know what human relations is, and how it has developed into what it is, it’s time to look at some characteristics it does not have. First, human relations is not a study in understanding human behavior in order to manip- ulate others. Good human relations means being real, positive, and honest. Practicing effective human relations means being yourself at your very best. Second, learning better human relations skills is not a cure-all. Nor is it a quick-fix for deep and ongoing personal problems. The skills you will learn in this book are skills to be built upon, developed, and tried out whenever you can as part of your own experience on the job and throughout your life. Last, human relations is not just common sense. This argument is often used by people who think a book like this in unnecessary. “Common sense,” they may say, “will carry you through!” In the area of human relations, how- ever, common sense (meaning ordinary good sense and judgment) is all too un common. The abuses of many workers on the job today, the misunder- standings that cost thousands of companies millions of dollars every year, the unhappiness of many workers with the jobs they have: all of these factors illustrate the need for a strong foundation in human relations–even if much of it seems like simple common sense. Despite all of the progress in human relations during the past decades, the 21st century has produced some “nay-sayers” who will argue that mistreat- ing employees actually works. According to Bloomberg Businessweek magazine, Dish Network’s boss, Charlie Ergan makes that claim. He says that “ruling with an iron hand” is one of his success secrets.16 Perhaps then, it is not sur- prising that his company was named “America’s worst company to work for” by a watchdog Web site.17  Human Relations: A Background CHAPTER 1 9 We invite you to track the Dish Network and see if they continue to thrive. If they do, perhaps we’ll make room for an exception. Only time will tell. Rarely, if ever, does an abusive attitude pay off for any manager. AREAS OF MAJOR EMPHASIS In the broadest sense, the study of human relations has two goals: personal development and growth, and achievement of an organization’s objectives. (See Figure 1.1.) All of the following areas of emphasis take both of those goals into consideration. You will notice that each of the areas is further developed in the following chapters of this book. Most of them overlap, and some are dependent upon others. Those relationships will become clearer as you read further. Self-Esteem Self-esteem is your feeling of confidence and worth as a person. Psychologi- self-esteem cal research has shown that lower self-esteem is related to a variety of men- A person’s feeling of tal health problems, including alcoholism, anxiety, and depression—all of confidence and worth as a person. which cause problems on the job. Higher self-esteem, on the other hand, improves attitudes, job morale, and overall quality of life. In the workplace, healthy self-esteem is the key to top performance and high-quality work— especially when the work directly affects other people. Self-esteem is a buzzword in business circles today. Most Americans seem to have discovered this important part of themselves and its influence on every other factor in their lives. More than a mere buzzword, though, self-esteem is at the core of most issues in human relations. Because it is so important, Chapter 2 is dedicated to that subject. figure 1.1 Personal Satisfying the development objectives of MAJOR GOALS AND and growth the organization EMPHASIS AREAS OF HUMAN RELATIONS Which of these areas do you personally consider most important to effective human relations? Self-esteem Communication Mutual respect Skills Self-awareness Group dynamics and self-disclosure Motivation 10 PART I Human Relations and You Mutual Respect mutual respect Notice that this isn’t simply respect, but mutual respect. Mutual respect, the The positive consideration or positive consideration or regard that two people have for each other, can regard that two people have exist only when your self-esteem is stable. If your self-esteem is too fragile, you for each other. will have little energy left for cultivating mutual respect. Also, without trust, mutual respect is meaningless. Many human relations specialists rate trust as the single most important element in human relations.18 People at all levels of an organization need trust and mutual respect to perform at their best. self-awareness Self-Awareness and Self-Disclosure The knowledge of how you are being perceived by others. These two concepts are interconnected. Self-awareness is the knowledge self-disclosure of how you are being perceived by others. Self-disclosure is the process of The process of letting other letting other people know what you are really thinking and feeling. Self- people know what you are awareness allows one to know what in one’s own behavior is being perceived really thinking and feeling. as real by other people; self-disclosure involves “being real” with others. In The Seven Habits of Highly Effective People, author Stephen Covey said, “Until we take how we see ourselves (and more about... how we see others) into account, we will be unable to Stephen Covey, author of numerous understand how others see and feel about themselves books, is known globally for his emphasis and their world.”19 Self-disclosure, on the other hand, on personal and professional integrity. He cofounded the Franklin Covey Company, reflects the positive side of human relations: By allowing which is the largest leadership development others to see what feelings and thoughts you really have organization in the world. in a given instance, you can promote genuineness in the other person. A positive side effect is that your relation- ship with the other person is likely to become closer. Communication Skills communication Communication is the process of sending ideas, thoughts, and feelings from The process of sending and one individual or group to another, and having them received in the way receiving ideas, thoughts, and you intended.20 The communication process is at the heart of all manage- feelings from one individual to another. rial functions, and it is directly related to success or failure at the managerial level. It is also a vital part of all personal interactions. When a human rela- tions problem emerges, miscommunication is usually involved. If you are to grow either as an individual or in groups, effective com- munication is essential.21 Much of your success depends on your ability to express ideas and concepts precisely. Part of that ability is based on your listening level, which includes listening for feelings and emotions as well as for objective content. Group Dynamics Whenever two or more people form a relationship, there is, in effect, a group. Once a group is formed, it immediately requires understanding, plan- ning, and organizational tactics appropriate to groups. Thus, understanding  Human Relations: A Background CHAPTER 1 11 group dynamics —the ways in which groups operate— more about... is a cornerstone in the study of human relations.22 Peter Drucker (1909–2005), a management As important as our individuality is, nearly every- expert for over 60 years, authored several thing that people value in life can be achieved only books that still carry the same strong impact through groups.23 For success, people learn how as they did when he was still alive. His first to make group processes more effective. In The influential work was the 1945 study The Con- New Realities, well-known management expert Peter cept of a Corporation, which compared his Drucker said, “Management is about human beings. ideal of management with the management Its task is to make people capable of joint performance, of General Motors. to make their strengths effective and their weaknesses irrelevant.”24 Knowledge of group dynamics includes under- group dynamics standing conflict management. Much of good human The set of interpersonal relations involves preventing negative conflict. relationships within a group that determine how group members relate to one Motivation another and that influence task performance. People often use the term motivation to describe the force that gets them motivation to do their tasks. It is no longer enough to threaten punishment or even to A force that gets people to do reward a job well done. Motivation derives from the needs of an individual their tasks or activities, based on the needs of an individual and of a group. It is also a major element in understanding human relations. or group. A BRIEF HISTORY OF HUMAN RELATIONS One cannot fully appreciate the present state of human relations without at least a partial understanding of the past. The history of human relations is essential to a thorough understanding of its place in today’s world. Human relations has been important ever since human beings began to live together in groups. Of course, attitudes toward power—especially the sharing of power—have changed through the centuries. Most societies no longer tolerate slavery, nor do most cultures blindly follow powerful leaders as they once did. Thus, the history of human relations problems can be viewed in different ways during different times. The Early Years Human relations began to be an issue as we know it today around the early- to mid-1800s. Figure 1.2 on more about... page 12 gives a thumbnail view of major events in the field. The Knights of Labor, founded in 1869, was an Robert Owen (1771–1858) was a Welsh- born social reformer who influenced both organization much like the labor unions that came English and American employers. His philoso- later. The founders of this group denounced the bad phy was known as “Owenism” and his fol- working conditions and unfair treatment in many lowers Owenites. workplaces of the time.25 The labor union movement might never have started if human relations between 12 figure 1.2 A HUMAN RELATIONS TIMELINE What are the major changes you see in human relations over the years? World War I The Depression World War II Frederick Taylor Elton Mayo Frank & Lillian Gilbreth Doug McGregor Robert Owen Knights Mary Parker Follett Abraham Eric Berne W. Edwards Deming Andrew Ure of Labor Max Weber Maslow Carl Rogers 1830 1870 1900 1920 1930 1940 1950 1960 1970–90s 2013 “The Philosophy Organized Bureaucracy Scientific Labor unions End of WWII Hierarchy Theory X & Y Growth in classroom of Manufacturers” pre-labor union management gaining power Birth of human of needs Transactional study of human relations relations analysis Medical help Bad working Optimum shovel Required courses Tea breaks conditions “One Best Way” Conflict in human relations Ventilation Unfair treatment Wagner Act 1935 management Sick leave Growth of Total Quality Hawthorne Studies: Group dynamics Management Informal organization Needs of workers  Human Relations: A Background CHAPTER 1 13 managers and workers had been better, and if working more about... conditions had been more tolerable. Anyone who is Andrew Ure (1778–1857) was, like many of blindly antiunion needs to understand that negative his time, an avid enthusiast of the Industrial management and poor working conditions pushed Revolution. He was the first person to write workers to organize into unions. a detailed study of manufacturers and their In early 19th-century England, a man named Robert management processes. Owen came up with the amazing idea that treating Max Weber (1864–1920), who was a soci- workers better would actually increase productivity and, ologist, philosopher, and political economist, thus, profits. Owen introduced many reforms in the is best known for writing The Protestant Ethic industry of the time. For example, he stopped employ- and the Spirit of Capitalism (1904). ing young children in his factory. He also encouraged his workforce to stay sober. Although by today’s stan- dards these measures might seem quite basic, Owen was quite progressive for his time.26 Like Robert Owen, Andrew Ure (also from Great Britain) was interested in human relations in manufacturing companies. In 1835, Ure published a book called The Philosophy of Manufacturers. This book suggested that workers should have medical help, hot tea on a regular basis, good ventilation, and even sick leave—again, all ideas that were advanced for their time.27 Owen and Ure were definitely not typical. Both in Europe and in the United States, the first decades of the Industrial Revolution were full of abuses by bosses against workers, especially workers with few skills. Many of the immigrants to America during that time were forced to face inhumane working conditions. Some of the better employers built “company towns.” These were settle- ments, owned by the company, where workers would live in company housing, buy supplies at the company-owned store, and even send their children to a school owned by the firm. Though not popular today, this setup produced happier and more loyal workers in many cases, especially when the quality of the company town was considered high. In Germany, a sociologist named Max Weber saw human relations prob- lems as being caused by favoritism, nepotism (playing favorites with family members), and other unfair practices. In Weber’s time, most European com- panies were managed like extended families. Employees were loyal to a single person, rather than to the company goals or mission statement. Weber came up with the bureaucratic organizations approach,28 a system that was meant to be impersonal and rational. In Weber’s model, called bureaucracy, each person had specific duties and responsibilities that were to be assigned on the basis of ability and talent only. Also, the work of the people in an organization was to be done in an orderly way, with only one supervisor to whom each worker must answer.29 This approach reduced favoritism and many other unfair practices. bureaucracy A formal organization Human Relations as a Science in which each person has specific duties and Today the word bureaucracy often has a negative connotation. The word is responsibilities and is assigned often associated with government inefficiency (“red tape”) and paperwork. to only one supervisor. 14 PART I Human Relations and You Bureaucracy actually started out as a method of improving not only effi- ciency, but human relations as well. Scientific Management In the early years of the 20th century, Frederick Taylor and others began a scientific management movement called scientific management. Most people today who have heard A management system of Taylor think of him as an industrial engineer who tried to find the “one based upon scientific and best way” to do a job. He is often criticized as someone who cared more about engineering principles. production than about the needs of workers. However, Taylor is important to the history of human relations because he showed how crucial the human element is in the performance of any organization.30 Like others in the scientific management movement, Taylor was con- cerned with increasing efficiency while getting as much work as possible out of employees. Taylor’s approach contained two major features: 1. Managers should carefully select and train workers for specific tasks. 2. Managers should try to motivate workers to increase productivity. Care- ful hiring and in-depth training do not seem very earthshaking today, but Taylor was among the first to recognize the importance of both. Also, in Taylor’s time, motivation was believed to be induced only through increased pay. Though shortsighted and a bit simplistic, his view of moti- vation at least focused attention on the issue. Increased pay was likely a larger incentive during Taylor’s time than it is today. Today’s workers tend to value humane treatment and increased job satisfaction more than was the case a few generations ago. One of Taylor’s best-known victories was the invention of the optimum shovel. At an eastern steel mill, Taylor watched men shoveling coal for the large smelters. Using the same shovel, these men would also load cinders into waste containers. After carefully studying both more about... processes, Taylor came up with two shovels: a much Frederick Winslow Taylor (1856–1915) was larger shovel for the light cinders and an optimum also renowned as an inventor; the optimum shovel is perhaps his best-known invention. shovel for the coal. This shovel was exactly the right By experimenting with different materials, he size and weight to allow the maximum work without was able to design shovels that would permit the need for frequent rest periods. The productivity workers to shovel for the whole day. of the steel mill rose immediately, making Taylor and scientific management both very popular.31 Frank and Lillian Gilbreth Living around the same time period as Taylor, Frank and Lillian Gilbreth were a married couple who were both industrial engineers—and scientific managers. The Gilbreths became especially well-known for their research study of bricklayers. Frank Gilbreth identified 18 different motions that had been used by bricklayers, apparently for as long as people had been laying bricks. By inventing some labor-saving devices and by changing  Human Relations: A Background CHAPTER 1 15 FRANK AND LILLIAN GILBRETH Pioneers in scientific management, especially time and motion study, in the late 1800s and early 1900s. the basic routine, the Gilbreths reduced those 18 more about... motions to 5. The result was a system of bricklaying Frank Gilbreth (1868–1924) with more than double the productivity of the old system. Lillian Gilbreth (1878–1972) Lillian Gilbreth was especially interested in study- Frank & Lillian Gilbreth were pioneers in time ing workers and their reactions to working under and motion study. Besides their early work stressful conditions. She taught the importance of refining the bricklaying process, they had a standard work days, relaxed and regular lunch breaks, great impact on medicine by significantly and periodic rest periods. Her life’s work helped influ- reducing the amount of time patients had ence Congress to pass child labor laws. The mother to spend on the surgical table. Thus the Gil- of 12 children, Lillian was among the first women in breths were also responsible for saving many America to receive a Ph.D. in psychology. In her later people’s lives. life, she became known as “The First Lady of Manage- Source: Daniel A. Wren, The Evolution of Manage- ment.” She was an important early force in the human ment Thought, 2nd ed. (New York: Wiley, 1979), p. 171. relations movement as well.32 Mary Parker Follett In the early years of the 20th century, Mary Parker Follett became known for her lectures and writings on what we would now call human relations issues. Follett was a member of the upper class—not someone with a work-related background. She lectured widely on issues of human relations among work- ers, however, and was quite influential. Follett taught three concepts that were ahead of their time. First, she held that workers should be allowed to be involved in decisions affecting them. 16 PART I Human Relations and You To her it was logical that the people closest to the more about... Mary Parker Follett (1868–1933) action could make the best decisions. Second, she Mary Parker Follett attended the college known stressed that the workplace is dynamic—that is, today as Radcliffe. She studied philosophy and constantly changing. She felt that inflexible, static political science but became deeply interested in rules were potentially harmful to maintaining a management. Always the advocate of humanizing productive workforce. Finally, Mary Parker Follett the workplace, she stressed people over technology. believed that the main job of managers at all levels One of her pieces of advice to engineers was “Don’t was to maintain positive relationships with workers. hug your blueprints!” Happy workers with a sense of belonging, she said, Source: Henry Metcalf and Lyndall Urwick, eds., would end up making more money for the com- Dynamic Administration: The Collected Papers of Mary pany and would remain at the same job for a lon- Parker Follett (New York: Harper & Row, 1940). ger time. These three concepts define Follett as a very important early pioneer of the human rela- tions movement, and definitely ahead of her time.33 The Hawthorne Experiment In the late 1920s, a group of scientific management scholars went to Haw- thorne, Illinois, to study the effects of physical factors on workers and their pro- ductivity. Each time they would try an experiment, productivity would go up. However, when they reversed the experiment, productivity would still increase. The most popular of these experiments was with lighting. When the lights in this Western Electric assembly plant were brightened, productivity increased. However, when the lights were more about... dimmed, productivity went up again. Elton Mayo (1880–1940) was born in The researchers were really confused. Why would Australia and relocated to the United States workers work even harder under such poor conditions in 1922. He was the driving force behind the as very dim lighting? The problem confronting these Hawthorne Studies, and translations of his scientific management scholars attracted the atten- work appeared in German, Spanish, Italian, tion of Elton Mayo, a social psychologist from Harvard Japanese, and Arabic. University. He traveled to Hawthorne and stayed. For nearly five years, from 1927 to 1932, he and his Harvard colleagues studied the Hawthorne Experiment.34 Hawthorne Experiment Two important discoveries came from this five-year study. First, Mayo A five-year study conducted showed that the workers at Hawthorne performed better because someone at the Western Electric plant in Hawthorne, Illinois that was paying attention to them. This attention was more than they had been showed—among other accustomed to receiving at work, and they responded with extra motiva- findings—that workers tion. Second, Mayo found that the relationships that had formed natu- performed better when someone was paying rally in the workplace made up what he called the informal organization. attention to them. On days when a worker would not be as motivated as usual, the expecta- informal organization tions of the group would make up the difference, and productivity would The ever-changing set of remain high. relationships and interactions Recent research has shown that the Hawthorne workers were very likely that are not formally put motivated by fear as well as by attention. Whether or not this new interpre- together; they form naturally in the workplace. tation is true, the findings of Elton Mayo influenced decades of thought on the role of human relations on the job. Much of what has been written  Human Relations: A Background CHAPTER 1 17 and practiced since Hawthorne has been influenced by what Mayo himself concluded—and although the findings have been reexamined, the original shape of those findings still influences people today.35 Human Relations and Management Probably the most important improvement Elton Mayo brought about was to change the way management looked at workers. Rather than seeing workers mostly as people who need wages, managers now began to understand that the complex needs of workers include a unique combination of values, atti- tudes, and desires. By the time Elton Mayo left Hawthorne, the Great Depression was sev- eral years old. Although the interest in human relations still existed, the stubborn fact was that a ruthless manager could mistreat workers now with- out much fear of losing them. After all, jobs were very hard to find. During the Great Depression, labor unions began to gain power. Congress passed the Wagner Act in more about... 1935, giving unions and union members more rights The Wagner Act, also called the National than they had enjoyed before. For example, businesses Labor Relations Act, made it illegal for were now forced to negotiate contracts with union employers to use scare tactics or other tech- representatives.36 Although this new union activity niques to prevent employees from forming or was good for workers, it did not necessarily mean that joining unions. human relations issues were being emphasized. Many managers still had the attitude that one need only to “fire the problems and hire the solutions.” Unions usually emphasized salary and benefits for workers rather than the more abstract issues of employee treatment and workplace morale. By the time the Japanese bombed Pearl Harbor in 1941, the Depression was showing some signs of lifting. Once the country began gearing up its man- ufacturing sector for World War II, the workplace was affected drastically. With hundreds of thousands of young workers going overseas to fight, employers were forced to hire nearly anybody who would work. Sadly, human relations in The Great Depression: an era of human relations the workplace always seems to be affected by the job market, and the onset of setbacks World War II was no exception. Managers knew their employees would be very hard to replace, so treatment of workers tempo- rarily improved. Cases of sexism, racism, and sexual harassment, however, were all too common. Throughout the war, and in the years immediately follow- ing, many studies were being done on human relations factors. The noted psychologist Abraham Maslow devised a “hierarchy of needs,” which teaches that people tend to satisfy their needs in a certain order; you will read more about this in Chapter 5. Studies continued through the 20th century, and in 1960, psychologist Douglas McGregor wrote The Human Side of Enter- prise, considered by some to be the most important book on human relations ever written. 18 PART I Human Relations and You McGregor introduced the concepts of Theory X more about... and Theory Y. These two theories are held by differ- Douglas McGregor (1906–1964) was a pio- ent types of managers, based on their ways of look- neer in industrial relations. His creation of Theory X and Theory Y allowed management ing at workers. Theory X managers see workers as to understand their influence on employee lacking ambition, disliking work, and wanting secu- morale and productivity. Although well- rity above all else. Theory Y managers, on the other respected in his lifetime, his peak popularity hand, see workers as happy to work, able to assume did not come until 1993, nearly 30 years after responsibility, and overall quite creative. These two his death. theories—especially Theory Y—have influenced think- ing in both management and human relations since the year of their creation. Theories X and Y Theory X managers see Human Relations, History, and the Individual workers as lacking ambition, disliking work, and wanting The second half of the 20th century brought a great deal of attention to the security above all else. Theory Y study of the workplace from psychologists and other social scientists. In the managers see workers as enjoying work, being able to early 1960s, Eric Berne had created his famous Transactional Analysis method assume responsibility, and of understanding interpersonal communication. Carl Rogers published his being creative. findings on the development of the personality, group dynamics, and con- flict management. Some managers began experimenting with participative decision making and other human relations-based management. By the late 1960s, an era had started that would affect human relations for years. A new emphasis was placed on the rights and needs of the indi- vidual person. For the first time, it was popular in this culture to “do your own thing.” Perhaps even more importantly, other people were allowed to do their own thing as well. Also new was the revolutionary attitude toward success as having to do with people, rather than just with money. Many of today’s middle managers were members of an emerging youth subculture at that time, sometimes referred to as hippies. As many of those young people grew into leadership roles, influence from that era has still not peaked. Total Quality By 1980 Total Quality Management (TQM) had been introduced in the Management or TQM United States as it had been three decades earlier in Japan. The man respon- An organizational philosophy sible for this new movement was an American named W. Edwards Deming. that quality must be present in the product or service This important school of thought held that the process of whatever happens in produced and in all support an organization is more important than the product. Doing away with targets, activities related to it. “zero defects” programs, and slogans, the TQM people concentrated on the process—which inevitably includes people and relationships. The work that was pioneered by Elton Mayo and others became refocused with a process emphasis. People in organizations participated at work to an extent unimag- ined before. Working conditions had come to be seen as the most important single issue in many companies.37 By the late 1980s, Total Quality Management had changed industry both in America and abroad. From the mid-1990s to the present, the label “TQM” has been heard less frequently. However, the process of TQM survives under other names—sometimes simply “quality”—and remains an important part of many successful organizations. There must be quality in the process itself,  Human Relations: A Background CHAPTER 1 19 as well as in the final product. Of course, TQM covers many other organi- zational issues besides human relations, but the positive effect of the quality movement on human relations promises to be lasting. The 1970s through the 2000s saw a tremendous growth in the academic study of human relations. Today, an increasing number of college business and industrial education departments require courses in human relations. This trend reflects the growing awareness of the importance of understand- ing, and working with, others effectively. As the global economy continues to develop, human relations assumes a broader significance. ST R ATEGY F O R SUCCESS Strategy 1.1 Develop Mutual Respect 1. Develop your self-esteem. 2. Develop your self-awareness. 3. Develop trust. 4. Learn to self-disclose. 5. Cultivate mutual respect. Although these are big tasks, they can be achieved by anyone with a clear under- standing of human relations. 1. Develop your self-esteem. First, you must develop your self-esteem. Self-esteem can be encouraged or damaged very early in life, and some people who have self-esteem problems do not even realize it. However, no matter what your age or self-esteem level, you can always learn to like yourself more. Chapter 2 will cover self-esteem in great detail and provide tips on how you can build your own self-esteem. 2. Develop your self-awareness. Without self-awareness, you will find it hard to develop self-esteem or any of the other issues that are important to successful human relations. This is because you must know yourself before you can value yourself highly and express yourself honestly to others. You will learn more about how to develop self- awareness in Chapter 3. 3. Develop trust. Without adequate self-esteem, you will find it difficult to trust. With trust, however, you will find that your relationships will grow deep and meaningful, and that you will be able to tell other people what’s in “your gut” without unnecessary fear. 4. Learn to self-disclose. As you develop trust, you will be able to disclose more about yourself. Self-disclosure and trust are areas that you can develop simultaneously: As you learn to self-disclose appropriately, you will develop deeper trust in your relationships. Chapter 3 will cover self-disclosure in greater detail. 5. Cultivate mutual respect. Developing trust will lead to mutual respect, as you forge relationships that are based on honesty. You will learn more about talking “from your gut” also called self-disclosure, in Chapter 3. Strategy 1.2 Build Your Communication Skills 1. Learn to communicate honestly. 2. Learn what effective communication is and how to develop this skill. 3. Know what you are communicating to others by increasing your self-awareness. 20 PART I Human Relations and You 4. Know what you are communicating to others by your nonverbal signals. 5. Learn to deal effectively with conflict. 1. Learn to communicate honestly. When you communicate honestly by learning to say what you feel, by establishing trust, and by using effective and appropriate self- disclosure, your listeners will learn to respect and trust you more. 2. Learn what effective communication is and how to develop this skill. Effective communication is communicating so that your listener receives the message you intended to send. When you use honesty and appropriate self-disclosure, and state your message in a clear way that shows high self-esteem, you will send your message more effectively. 3. Know what you are communicating to others by increasing your self-awareness. If you have low self-awareness, you may communicate so that your true meaning is unclear. By working on your self-awareness, you will improve your communication skill. 4. Know what you are communicating to others by your nonverbal signals. If you give nonverbal signals that are unintended, your message will be different than what you expect. This can lead to confusion and mistrust. Nonverbal communication is cov- ered in more detail in Chapter 6. 5. Learn to deal effectively with conflict. Effective communication skill involves the ability to deal with conflict. Chapter 11 will show you how to deal with conflict to restore trust and mutual respect. CHAPTER ONE SUMMARY Chapter Summary by Learning Objectives LO 1-1 Define human relations. Whatever direction your life takes— whether you become a manager, an entrepreneur, or an employee— you will always have to deal with other people, and human relations skills will be essential. Human relations is the skill or ability to work effectively with and through other people. LO 1-2 Explain the importance of human relations in business. Human relations skills are especially important today for several reasons: greater awareness of human rights, current fluctuations in interna- tional markets, growing emphasis on the human resource in com- panies, current emphasis on teamwork, and increased diversity in the workplace. LO 1-3 Discuss the challenges of human relations as these factors affect success in business. Today’s problems make workplace survival an even greater challenge. Increased workplace competition, the rise of the dual-career family, the divorce rate, and the problem of two generations of dependents: All of these factors increase personal stress and complicate the issues of human relations. LO 1-4 Identify what the study of human relations does not include. Skill in human relations does not mean being phony or manipulative. It is neither a quick fix nor a cure-all; and it is not just common sense. It is a skill area that is learnable, though growth continues for a lifetime. LO 1-5 Describe the areas of emphasis for human relations in today’s workplace. The main areas of human relations are self-esteem,  Human Relations: A Background CHAPTER 1 21 mutual respect, self-awareness and self-disclosure, communication skill, group dynamics, and motivation. LO 1-6 Discuss a short history of the study of human relations. Starting with the scientific managers in the early part of this century, and finding a focal point in the Hawthorne Experiment, the human relations movement began in the 1800s and spanned the entire 20th century. Names to remember include Robert Owen, Andrew Ure, Max Weber, Frederick Taylor, Frank and Lillian Gilbreth, Mary Parker Follett, and Elton Mayo. In 1960 Douglas McGregor wrote about Theory X and Theory Y managers, showing the latter as both more effective and more humane. key terms bureaucracy 13 informal organization 16 self-disclosure 10 communication 10 motivation 11 self-esteem 9 group dynamics 11 mutual respect 10 Theories X and Y 18 Hawthorne scientific Total Quality Experiment 16 management 14 Management (TQM) 18 human relations 4 self-awareness 10 trust 4 review questions 1. In your own words, write a one- or two-sentence definition of human relations as you would have defined it before reading this chapter. Then, assuming your definition has changed a bit, write a new one. 2. Explain the importance of Elton Mayo and his work in the Hawthorne Studies to the history of human relations. 3. How can the development of human relations skills help you on the job as a manager? As an entrepreneur? As an employee? 4. Explain the role of W. Edwards Deming in the further development of human relations concepts during the past two decades. 5. List three reasons why human relations issues are more important today than ever before. 6. Why is self-esteem important to the development of human relation skills? 7. List the six “areas of emphasis” in the study of human relations and explain each one briefly. 8. Why did the human relations movement not make much progress dur- ing the Great Depression? Discuss the relevance that experience might have to today’s workplace.  critical thinking questions 9. Explain the importance of the work of Frederick Taylor, and Frank and Lillian Gilbreth and the scientific management movement to the devel- opment of modern industry. 10. What are the problems of today’s society that cause greater stress on the job, thus increasing the need for human relations skills? List and explain the importance of each. 11. With the widespread use of the Internet in conducting business world- wide, do you think human relations skills are becoming more impor- tant, or less so? Explain your answer. working it out 1.1 COMMUNICATING WITH A SUPERVISOR School-to-Work Connection: Interpersonal Skills, Thinking Skills, and Personal Qualities Skills Situation: Doris Johnston is the president of Elko Manufacturing Company. Workers are in short supply in the town where Elko is located. Doris noticed that the turnover rate has been extremely high in one department. The supervisor in this department, Janet Kent, has been having problems relating to her workers. Janet has become known as someone who abuses her power by intimidating her workers, and purposely conducting herself in a way that makes them constantly concerned that they will lose their jobs. Many workers never voice their complaints and simply find work elsewhere. Doris has asked Janet six times during the past five months why the turn- over is so high in her department. She also tells Janet that she has overheard workers complain about the way Janet treats them. Janet answers that the workers leave because they can’t handle her demands and maintains that she is “tough, that’s all, not unreasonable.” Procedure: Four volunteers should play Doris and Janet in two separate role plays. The first will present how Doris should not confront Janet with her concerns. Then, without class discussion, play the second role play, showing a better way that Doris can communicate her concerns with Janet. Finally, the class should discuss both role plays, sharing what they have learned from the process. a. How could those differences create human relations issues? b. How can effective human relations prevent or solve misunderstandings related to these differences? 22  case study 1.1 Software Tug-of-War P eter Hopkins was facing some problems for which he hadn’t been prepared. Of all of the departments at the small software manufacturing countered Wilson. “One thing I never used to worry about was our relationship with customers. Now I seem to be getting an increasing number company where he worked, his group of workers of complaints that customers are being treated seemed to be causing the most problems. “When rudely, both by phone and by e-mail. That just I hired these people,” Peter told his boss, Howard can’t be allowed.” Wilson, “they seemed like the most savvy, compe- “Well, something has to be done to change tent employees a guy could hope for. Now, look at things, and soon,” replied Hopkins. “Let’s start by them: eleven men and women who seem to have talking to people on both sides to see what can be formed two teams, each determined to wipe the done.” other one out.” “I’m all for that. We’ve got to start commu- “I guess things could be worse,” Howard coun- nicating with our people or this mess is going to tered. “They seem to have chosen sides. At least it’s turn into a disaster.” not just one big free-for-all.” “Yeah, but the most important problem is how Case Study Questions this situation seems to be affecting productivity. 1. Which emphasis areas of human relations We have six orders that should have been shipped does this case mostly address? two days ago, and at least two orders that will need more debugging before we can even think of send- 2. Besides getting some communications lines ing them to the customers. One of them is our big- in place, what can Peter do to improve the gest customer, by the way.” situation? “What really has me concerned is that we seem 3. What could Peter and Howard have done to to be getting a spillover effect with our customers,” prevent things from getting this bad? 23  case study 1.2 That “Stupid” Team of Mine W hen Joaquin Salcedo received the phone call that he was hired, he could barely believe it. “Frankly, I didn’t expect even to be a finalist,” “Oh, I guess so,” Joaquin sniffed. Rick walked slowly back to his office, not convinced that he had gotten through to his new employee. he admitted to one of his friends. Joaquin’s new Rick’s suspicions were confirmed during position was in the IT department of a midsized the next three weeks when he began receiving company. He went in feeling less than adequate an increasing number of complaints about Joa- for the position. Very soon, however, he discovered quin’s performance. Not even one complaint men- just how much more qualified he was for the job tioned anything about his technical knowledge or than originally he had thought. Nearly everyone abilities—only about his interpersonal relations. on his team, it seemed to Joaquin, was an “idiot.” Most co-workers accused Joaquin of being “arro- That was Joaquin’s word, and he used it more fre- gant” and “overbearing.” An employee in another quently as time went by. department, not one of his own team complained, Every day, Joaquin felt his time was taken “He called me a turkey and told me to ‘figure it up answering questions that “anyone qualified out yourself.’” to work here shouldn’t have to ask.” There were, Another employee produced an e-mail from indeed, questions that would fall into the “every- Joaquin that said, “If you had a single brain cell, one should know” category. However, there were you wouldn’t bother me with things like this.” other questions that Joaquin was uniquely quali- Rick Jarwood sat at his desk trying to decide fied to answer; he was equally annoyed by both. what to do next. “I know I need to do something, “These idiots are wasting my time—hours but I’m not sure how to show Joaquin that he is of it every day,” Joaquin told his supervisor, Rick destroying his own position. He needs to see the Jarwood. light, and right away.” Rick replied, “Nevertheless, answering their questions is a part of your job. As the job descrip- Case Study Questions tion says, you are to clarify the plant computer sys- 1. How self-aware does Joaquin seem to be? tems to others in the company.” “I’m fine with that part of the job,” countered Joaquin. I am upset 2. What advice would you give Rick Jarwood in with the people on my own team. They are sup- dealing with Joaquin’s human relations prob- posed to know some thing, aren’t they?” lems? Remember that his high level of exper- “Yes, but they need to be talked to with tise makes Joaquin valuable in other ways. respect, even when they don’t know as much as 3. How could this situation have been they should.” Rick added. prevented? 24