Page 44 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management

Notes 2. Social Environment: The social environment on the job affects the workers and is also
affected by them. Management is not the only variable. Social and psychological factors
exercise a great influence on the behaviour of workers. Therefore, every manager should
adopt a sound human approach to all organisational problems.
3. Informal Organisation: The informal organisation does also exist within the frame work
of formal organisation and it affects and is affected by the formal organisation.
4. Group Dynamics: At the workplace, the workers often do not act or react as individuals
but as members of groups. The group determines the norms of behaviour for the group
members and thus exercises a powerful influence on the attitudes and performance of
individual workers. The management should deal with workers as members of work
group rather than as individuals.
5. Informal Leader: The informal leader sets and enforces group norms. He helps the workers
to function as a social group and the formal leader is rendered ineffective unless he
conforms to the norms of the group.

6. Communication: Two-way communication is necessary because it carries necessary
information downward for the proper functioning of the organisation and transmits upward
the feelings and sentiments of people who work in the organisation. It will help in securing
workers’ cooperation and participation in the decision-making process. Workers tend to
be more productive when they are given the opportunity to express their feelings, opinions
and grievances. This also give them psychological satisfaction.
7. Non-economic Rewards: Money is only one of the motivators, but not the sole motivator
of human behaviour. The social and psychological needs of the workers are very strong.
So non-economic rewards such as praise, status, interpersonal relations, etc. play an
important role in motivating the employees. Such rewards must be integrated with the
wages and fringe benefits of the employees.

8. Conflicts: There may arise conflicts between the organisational goals and group goals.
Conflicts will harm the interest of workers if they are not handled properly. Conflicts can
be resolved through improvement of human relations in the organisation.

Criticism of Human Relations Approach

The human relations approach has been criticized on the following grounds:
1. Lack of Scientific Validity: The human relationists drew conclusions from Hawthorne
studies. These conclusions are based on clinical insight rather than on scientific evidence.
2. Over-emphasis on Group: The human relations approach over-emphasises the group and
group decision-making.

3. Over-stretching of Human Relations: It is assumed that all organisational problems are
amenable to solutions through human relations.

4. Limited Focus on Work: The human relations approach lacks adequate focus on work.
5. Over-stress on Socio-psychological Factors: The human relations approach undermines
the role of economic incentives in motivation and gives excessive stress on social and
psychological factors.
6. Conflict between Organisational and Individual Goals: It view conflict between the goal
of the organisation and those of individuals as destructive.

36 LOVELY PROFESSIONAL UNIVERSITY