Human Resources Management ( I )

1. Human Resources Management ( I )

2. Lead-in Effective Human resources management is essential for the success of organizations. For the whole 20th century, people had been studying ways to improve management. A number of theories were put forth at that time among which Maslow’s and McGregor’s theories were greatly grounded in modern human resources management. After studying this unit, you will be able to: ◇ Understand Maslow’s and McGregor’s theories. ◇ Discuss the relationship between human needs and human resources management. ◇ Explain why McGregor’s Y Theory is still stressed by modern organizations.

3. Maslow’s Hierarchy of Needs 1. Abraham Maslow 2. Human Needs 3. Maslow’s Hierarchy of Needs 4. Maslow’s Points 5. Exceptions out of Maslow’s Theory 6. Maslow’s Notice 7. What do managers learn from Maslow’s theory? 8. Managers’ Goals

4. Maslow’s Hierarchy of Needs Abraham Maslow Abraham Maslow was born in 1908 and died in1970. He was a famous American psychologist. His famous theory --- Hierarchy of Human Needs --- has contributed much to understanding human relations and management.

5. Human Needs Maslow’s Hierarchy of Needs According to Maslow, human needs are of two aspects: 1. basic needs a. physiological satisfaction, such as food, water, and sleep; and b. psychological satisfaction such as love, safety, and self-esteem. 2. higher needs also called meta needs or being needs (i.e. growth needs ) which consist of fairness, kindness, beauty, order, and unity.

6. Maslow’s Hierarchy of Needs • Physiological needs – wishing for food, water, housing, sleep, etc. • Safety – feeling free from immediate danger. • Love – expecting for love and being loved. • 4. Self-esteem – taking pride of oneself with self-respect. • 5. Self-actualization – understanding and fulfilling oneself.

7. Maslow’s Points • A person would want and be forever struggling to meet various needs. • Lower level needs are more direct and important. If they are not satisfied, they will come to play as the source and direction of a person’s goals. • 3. A need higher in the hierarchy will likely become the purpose of one’s behavior. • 4. Knowing what level a person is located on helps him settle on a clear motivation.

8. Exceptions out of Maslow’s Theory Some artists, religious leaders, and creative people seek to satisfy higher-level needs without first fulfilling lower-level needs. These people work hard despite lack of enough housing, safety, or social life.

9. Maslow’s Notice Almost no one stays in one particular hierarchy for a long time. People always try to move up.

10. What do managers learn from Maslow’s theory? People will be motivated to contribute to organizational goals only when they are first able to satisfy their physiological, safety and social needs through their work.

11. Managers’ Goals • Help employees obtain the skills and knowledge that will push them up the hierarchy on the constant basis. • Make the employees concentrate on fulfilling the targets put forth to them instead of keeping on struggling for their life.

12. Theory X and Theory Y 1. Douglas McGregor 2. Theory X and Theory Y 3. Theory X’s Principles 4. McGregor’s Remarks on Theory X 5. Theory Y’s Principles 6. McGregor’s Remarks on Theory Y 7. McGregor’s Suggestions to Perform Theory Y

13. Theory X and Theory Y Douglas McGregor In 1957, Douglas McGregor (1906-1964), a famous American psychologist, published his article "The Human Side of Enterprise" in which he introduced what came to be called the new humanism, Theory X and Theory Y.

14. Theory X and Theory Y Theory X and Theory Y Theory X and Theory Y are two sets of assumptions about human nature and behavior that are related to the practice of management. Theory X Representing a negative view of human nature that assumes people generally are naturally irresponsible for their work and require close supervision to do jobs. Theory Y Indicating a positive view of human nature that assumes people are generally hard-working, creative and responsible for exercising self-control over their jobs.

15. Theory X’s Principles Theory X and Theory Y • Management is responsible for organizing the elements of enterprise including production, capital, materials, facilities and employees. • 2. In terms of employees, management is a process of directing their efforts, motivating them, controlling their actions, and modifying their behavior to fit the needs of the organization. • 3. Without effective management, employees would be passive – even resistant – to organizational needs. Hence, they must be advised, rewarded, punished, and controlled. Their activities must be directed.

16. Theory X and Theory Y McGregor’s Remarks on Theory X It is of "hard" management whose methods involve close supervision, rigid control and compulsion. It would lead to restriction of output, mutual distrust and even sabotage.

17. Theory Y’s Principles Theory X and Theory Y • Employees are not by nature passive or resistant to organizational needs. They have become so as a result of experience in organizations. • 2. Employees, by nature, have the motivation, potential for development and capacity for assuming responsibility and readiness to direct behavior toward organizational goals. It is the responsibility of management to make it possible for employees to recognize and develop these human characteristics for themselves. • 3. The essential task of management is to arrange organizational conditions and methods of operation so that employees can achieve their own goals by directing their efforts toward organizational objectives.

18. McGregor’s Remarks on Theory Y Theory X and Theory Y It is of "soft" management whose methods as tolerance and need satisfaction. It can lead to more effective management of employees in the organization.

19. McGregor’s Suggestions to Perform Theory Y Theory X and Theory Y • Management should have employees’ higher level needs met in the workplace. • 2. Close supervision and the threat of punishment are not the proper means for encouraging employees to exercise productive efforts. • 3. Some opportunities should be provided such as allowing employees to make decisions, redesigning jobs to make them more challenging or emphasizing on good working relations.

20. Practice of Theory X and Theory Y 1. Significance of Theory X and Theory Y 2. Arguments: Which is More Effective, Theory X or Theory Y? 3. Effects on Management 4. Criticism of Theory Y 5. Theory X and Theory Y in the 21st Century

21. Significance of Theory X and Theory Y Practice of Theory X and Theory Y In the late 20th century, Theory X & Theory Y was considered as the basis for management style and employees’ motivation. When it comes to the 21st century, Theory X & Theory Y is still studied as to develop greater understanding of modern management ideology such as job enrichment, job-characteristics model and self-managed work teams.

22. Arguments: Which is More Effective, Theory X or Theory Y? Arguments: 1. Organizations putting Theory Y into practice tend to go back to Theory X in hard economic times. 2. Theory Y is not always more effective than Theory X. 3. Unforeseen events of each managerial situation determine whether Theory X or Theory Y was proper.

23. Effects on Management Theory X: 1. Managers’ leadership styles are autocratic and the communication flow is downward from managers to the employees. This may cause resistance from employees. 2. The upper setting of objectives gets little or no participation from employees. 3. It results in outside, control, with the manager acting as a performance judge who focuses generally on the past.

24. Effects on Management • Theory Y: • 1. It may lead to cooperative objectives designed with input from both employees and managers, resulting in a stronger responsibility by employees for accomplishing the shared objectives. • It encourages leadership styles to be more participative and allows employees to seek responsibility for achievement of goals. Theory Y’s leadership is likely to improve communication flow, especially in the upward direction. • It leads to control processes based on employees’ self-control. The manager is more likely to act as an instructor rather than a judge who focuses on how performance can be improved in the future rather than on who is responsible for past performance.

25. Criticism of Theory Y • Rather than concern for employees, Theory Y style managers are simply engaged in an attractive form of management. • Sometimes, managers better match work tasks to basic human motivation through participative management, job enlargement and other programs based on Theory Y. • Actually, managers still focused on measures of productivity rather than employees’ interests. • It is a patronizing plan for bringing increased productivity from employees. Unless employees shared in the economic benefits of their increased productivity, they are just fooled into working harder for the same pay.

26. Theory X and Theory Y in the 21st Century • McGregor’s works on Theory X and Theory Y have had a great impact on management ideology and practice. They have been included in most basic management books. These books are still facing people of management today. • As for the practice of management, the workplace of the 21st century, which emphasizes on self-managed work teams and other forms of worker involvement programs, generally goes with the principles of Theory Y.