IMPORTANCE

Human Relation School

• The main feature of the classical school is its concentration on structure not on other human aspects (mechanistic).
• In mechanistic view it was noted that although the technical features are all there, something is missing. We need to consider the human dimension – the people who fill the posts in the organisation and their behavior.
• This approach allows the theorists to propose ideal types of org and management unencumbered by the problems that arise from actually having people involved in them.
• To understand and improve an organisation, you need to understand the people who work for it, take account of their various needs, build on their strengths and ensure their weaknesses are either overcome or prevented from having an adverse effect on the organisation's working.

Elton Mayo and the Hawthorne Studies

The background was that the researchers were trying to find the optimum level of lighting in the plant in order to maximize productivity. As such, it started out as a strictly scientific management approach. However, the surprising finding was that productivity increased among the group of workers being studied both when the level of illumination was increased and when it was decreased. Subsequent studies by Mayo led to the conclusion that what was affecting performance was the special attention being paid to the group of workers rather than any external physical factors. Their working lives had suddenly become more interesting because of the experiments which were taking place, they felt important and valued, and the result was increased enthusiasm for their jobs and a higher output.

''Hawthorne effect''

Workers are strongly motivated by social needs (for social interaction, self-esteem and recognition, a sense of belonging and security) and seek satisfaction of those needs over and above any others, including the need for money once a certain level of remuneration as been achieved; 

Individual workers belonged to groups at the workplace which had their own codes of behavior, leaders and means of enforcement of the group norms (which included notions of what appropriate output standards were), constituting a whole "informal“ organisation within the formal one.

Mayo demonstrated that human attitudes and behavior seem to be what govern activity at the workplace, and what was required was to examine the needs and interaction of individuals, the ways in which groups operate and what this means for management.

Key Insights of the Human Relations School

1.The informal organisation

Formal structure, org, values & goals are by no means the only determinant of behavior.There will always be an informal network & interactions which constitute an alternative form of org for the workers.

This "informal org" determines, to a large extent, workers' attitudes to formal org & therefore, how they view the formal structure of authority. It is work group norms which tend to set standards of perform, such as timekeeping, output, quality, attitudes towards customers & dress codes & management can’t impose standards which are not acceptable in this alternative culture.

These patterns of relationships among managers can be complex as they cross the divide between identification with their mgt peers &their subject.

Alternative culture which operates against the interests of formal org can be damaging. Management has little control over work & standards of performance & there is often very low morale among workforce.

2.Complexity of workers' needs

The second element identified by the human relations school is the extent to which people come to work to gain satisfaction of needs other than that of simply earning money. 

People have a great variety of needs in life, and, it is clear that they are likely to want to have many of those met in the workplace. Obviously there is a need to make a certain amount of money, but where this has been achieved (and in organisations which offer secure employment with salaried posts, this is relatively certain) the imperative of financial reward is considerably reduced. There is rather a need for social interaction, self esteem & being valued, achievement, & many others, & these needs can be manifested in all sorts of ways.(e.g a worker's complaint may not necessarily be a recital of facts about a particular issue – it may be a symptom of the need for recognition or a product of feelings about status. In many cases, merely being able to voice the complaint may resolve the problem.) Managers ignore these factors at their peril.

The problem for management is to provide the conditions in the workplace for as many of those needs to be met as possible. Thus, ensuring enthusiastic co-operation from the workforce is likely to require good communications, recognition of effort & providing scope for achievement and advancement.

The experiments were subject to technical criticisms but it cannot be doubted that their publication ignited interest in human relations and personnel management.The insight they provided into org behavior.. represented a step change in the understanding of human needs at work. From this point, it became recognized that individual employees viewed their organisation through the prism of their peers' values and attitudes and this determined the extent of their drive and motivation at work.

However, the focus of this school on industrial sociology, and in particular the needs of the individual and the group, meant that it tended to concentrate on people to the exclusion of the organisation and its wider environment.

Organizational Structures and Culture

In organisations, there are deep-set beliefs about the way in which work should be organised, the way in which authority should be exercised, people rewarded and punished, etc. 

Culture embraces the influences that affect society's basic values, beliefs, perceptions and behavior. They are the characteristics of a particular society or sub-group within it.

It is, however, a difficult concept to describe since it is often not remarked on or recognized by those most affected by it.

Organisational culture

The culture of an organisation refers to the deep-seated values underpinning the organisation. It is manifested through a number of features (as discussed below) and it is increasingly being recognized that the culture is fundamental to the success or failure of organisations in meeting their goals.

Organisational culture is not something that is written down or, necessarily, is easily stated. Rather, it is an intangible mixture of rules, relationships, values, customs, values and attitudes which, taken together, describe the distinctive "feel" of the organisation. It is within this culture that individuals work and from which they learn the norms and values to which they are expected to subscribe.

Organizational climate“ and Organizational structure

Organisational climate refers to the ways in which people involved with the organisation (its stakeholders and its competitors)perceive that organisation – for example, the degree to which it is friendly or formal/distant, whether it is people oriented or task oriented, how concerned it is with the welfare of its employees, or whether it is characterized by conflict or co-operation between teams and departments.Organisational structure is the arrangement and inter-relationship of the component parts and positions of an organisation. Whereas culture is hidden, structure can be seen and drawn in organisation charts. Structure may reflect culture.

Characteristics of Organizational Culture

1. The org’s goals – particularly its mission statement – and the extent to which they are clear, communicated to & embraced by all levels of the org. 
2. The dominant behavior patterns applying to the interaction within the org & between the organization & its stakeholders in respect of both what is expected & whether actual behavior lives up to these expectations. 
3. The distribution of authority & decision-making through the org–basically along a continuum from being concentrated at the top to being spread downwards to teams working close to customers by the empowerment of employees. 
4. The structure of the organization is closely related to the distribution of authority & may be easier to identify through the use of organization charts, etc. 
5. The nature of leadership which refers to the way in which power and authority are exercised, again along a continuum from authoritarian to democratic. 
6. The values of the organization in terms of its responsiveness to the needs & aspirations of its own staff & to those of its stakeholders. 
7. The entrepreneurial spirit of the org as revealed by the degree of enterprise, innovation, competitiveness, flexibility & drive for excellence of the org. 
8. Its receptiveness to embracing change arising from changes in its environment–particularly whether it is proactive (anticipating and planning for change) or reactive (coping with change as and when it arises). 

Classifications of Culture

1. Entrepreneurial structure and power culture: This places an emphasis on centralization & central power. Such power exudes from the core of the business & the figurehead is seen as a very powerful & influential individual, with the power and authority to allocate & control resources. 
2. Bureaucratic structure and role culture: it is based on logic and rationality. It places an emphasis on roles within the org, rather than one central figure, relies heavily upon distribution of power, authority, tasks & responsibilities. Role cultures tend to develop in relatively stable environments and provide predictability, standardization, consistency and conformity. 
3. Matrix structure and task culture: places an emphasis on the completion of projects by means of project teams or groups. The culture that dominates the matrix structure as the task culture. Task culture is based on expert power with some personal and positional power. Influence tends to be more widely dispersed, with team members feeling that they each have more of it. In the team, status and individual style differences are of less significance . 
4. Independence structure and person culture: The focus is on the individual. Individuals within this structure are far more autonomous, but come together to make decisions that affect them as a whole. They will tend to have strong individual values about how they will work and these will respected by others. Where individuals from a person culture are working in other cultures, they will maintain their own cultural values.