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Chapter
1
Understanding Behavior,
Human Relations, and
Performance
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Human relations means
interactions with people.
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Goal of Human Relations
 Create
a win-win situation by:
 satisfying
employee needs
 while achieving organizational objectives
 Win-win
situation:
 occurs
when the organization and the employees
get what they want
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Four Myths of Human Relations
 Myth
1: Technical skills are more important
than human relations skills
 Myth
2: Human relations is just common
sense
 Myth
3: Diversity is overemphasized
 Myth
4: Leaders are born not made
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The Total Person Approach
 Realizes
that an organization employs the
whole person, not just his or her job skills
 People play many roles
 throughout
their lives
 throughout each day
 Organizations
view employees as total
people
 Organizations are trying to give employees a
better quality of work life
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Levels of Behavior
Individual
Group
Organizational
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Human relations
take place at the
group and
organizational levels
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Individual and Group Level Behavior
behavior –
consists of the things
two or more people do
and say as they
interact
 Group
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behavior –
influences group
behavior
 Individual
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Organizational Level Behavior
– a group of people working to
achieve an objective
 Organization
 Created
to produce goods and services for the
larger society
behavior – the collective
behavior of an organization’s individuals and
groups
 Organizational
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Human relations has an
effect on performance
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Performance (1 of 2)
– the extent to which
expectations or objectives have been met
 Performance
 Performance
is absolute when objectives are
set
 Performance
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is a relative term
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Performance (2 of 2)
 Performance
levels are more meaningful
when compared to:
 past
performance or,
 the performance of others within and / or outside
the organization
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The Systems Effect (1 of 2)
A
system is a set of two or more interactive
elements
 The systems approach focuses on the
whole system
 emphasis
is on the relationship between its parts
effect – all people in the
organization are affected by at least one
other person
 Systems
 each
person affects the whole group/organization
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The Systems Effect (2 of 2)
 The
organization’s performance is based on
the combined performance of each individual
and group
 The
destructive behavior of one individual hurts
the group and other departments
 The destructive behavior of one department
affects the other departments and the
organization’s performance
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The Relationship Between Individual and
Group Behavior and Organizational
Performance
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Organization
Individual
Group
Individual
Ineffective individuals
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Group
Individual
Group
Ineffective groups
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Systems thinking is
needed to understand
performance
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The Relationship Between Behavior,
Human Relations, and Performance
Performance
Behavior
Human
Relations
Behavior
Ineffective behavior
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Human
Relations
Behavior
Human
Relations
Ineffective human relations
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Human Relations: Past, Present, and Future
The Early Years:
Frederick Taylor
and
Robert Owen
Elton Mayo and
the Hawthorne
Studies
The 1980s
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The 1930s to
the 1970s
The 1990s
21st Century
Challenges
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The Early Years: Frederick Taylor and
Robert Owen
Frederick Taylor
 Father of Scientific
Management
 Focused on production, not
people
 Assumed workers always
acted rationally and were
motivated simply by money
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Robert Owen
 Father of personnel
administration
 Believed that profit would be
increased if employees:
worked shorter hours
 were paid adequately
 were provided with sufficient
food and housing

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Elton Mayo (1 of 2)
 The
father of human relations
 Conducted research at the Western Electric
Hawthorne Plant
 Hawthorne effect – refers to an increase in
performance caused by the special attention
given to employees, rather than tangible
changes in work
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Elton Mayo (2 of 2)
 Other
key conclusions from his studies:
 Employees
have many needs beyond those satisfied by
money
 Informal work groups have a powerful influence within the
organization
 Supervisor-employee human relations affects the quality and
quantity employee output
 Many employee needs are satisfied off the job
 Employee relations affect employee performance
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The 1930s to the 1970s
 Growth
of labor unions
 Leadership and motivation studies
 Management-by-objectives
 Theory X and Theory Y
 Transactional analysis (TA) and sensitivity training
 Quality circles
 The term human relations replaced by the term
organizational behavior
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The 1980s
Theory Z
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Peters & Waterman
In Search of
Excellence
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Peters & Waterman: Characteristics of
Successful Organizations
1. They have a bias for action
2. They are close to the customer
3. They use autonomy and entrepreneurship
4. They attain high productivity through people
5. They are hands-on and value driven
6. They stick to their knitting and do not diversify
greatly
7. They use a simple organization form with a lean staff
8. They have simultaneous loose-tight properties
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The 1990s
 Trend
toward increased participation of
employees to improve human relations and
organization performance continued
 Movement
from participative management to
high-involvement management
 Use
of groups and teams increased
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Current and Future Challenges in the
21st Century
 Change,
innovation, and speed
 Knowledge is the key resource
 Ethics
 Globalization, productivity, quality, and teams
 Diversity: aging, gender, and work-family
issues
 Technology: Internet and e-business and the
virtual office
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Human Relations Guidelines
2. Be positive
1. Be optimistic
3. Be genuinely
interested in others
4. Smile and
develop a sense
of humor
5. Call people by
name
6. Listen to others
8. Think before you
act
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7. Help others
9. Create a win-win
situation
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Handling Human Relations Problems
(1 of 2)
contract – the shared
expectations between people
 Psychological
 Human
relations problems often occur when
the psychological contract is not met
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Handling Human Relations Problems
(2 of 2)
 Three
alternatives to resolving human
relations problems:
1. Change the other person
2. Change the situation
3. Change yourself
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