Chapter 6
People and Organizations
People and Organizations
 Human Resource Assumptions
 Human Needs
 What Needs do People Have?
 Theory X and Theory Y
 Personality and Organization
 Human Capacity and the Changing Employment
Contract
 Lean and Mean: More Benefits than Costs?
 Investing in People
Human Resource Assumptions
 Organizations exist to serve human needs
 People and organizations need each other
 When the fit between individual and system is
poor, one or both suffer
 A good fit benefits both
Human Needs
 The concept of “need” is controversial
 Economists: people’s willingness to trade
dissimilar items disproves usefulness of concept
 Psychologists: need, or motive is a useful way to
talk about enduring preferences for some
experiences compared to others
 Needs are a product of both nature and
nurture
 Genes determine initial trajectory
 Experience and learning profoundly influence
preferences
Maslow’s Need Hierarchy
 Needs arrayed in a hierarchy
 Lower needs are “pre-
potent”
 Higher needs become
more important after
lower are satisfied
 Maslow’s hierarchy:
 Self-actualization
 Esteem
 Belongingness, love
 Safety
 Physiological
McGregor’s Theory X and Theory Y
 Theory X
 Workers are passive and
lazy
 Prefer to be led
 Resist change
 Theory Y
 Management’s basis task
is to ensure that workers
meet their important
needs while they work
 Either theory can be self-
fulfilling prophesy
Argyris: Personality and Organization
 Traditional management principles produce conflict
between people and organizations
 Task specialization produces narrow, boring jobs that
require few skills
 Directive leadership makes workers dependent and
treats them like children
 Workers adapt to frustration:
 Withdraw – absenteeism or quitting
 Become passive, apathetic
 Resist top-down control through deception,
featherbedding, or sabotage
 Climb the hierarchy
 Form groups (such as labor unions)
 Train children to believe work is unrewarding
Human Capacity and the Changing
Employment Contract
 Handy – Shamrock form
 Core group of managers
 Basic workforce – part-time or on shifts to increase
organization’s flexibility
 Contractual fringe – temps, independent contractors
 Lean and mean (win by cutting costs): downsize,
outsource, hire temps and contractors
 Invest in people (win with talent): build competent,
well-trained work force
 Shift from production economy to information
economy produces skill gaps
Conclusion
 Organizations need people and people
need organizations, but the trick is to align
their needs
 Dilemma: lean and mean vs. invest in
people
Conclusion
 Organizations need people and people
need organizations, but the trick is to align
their needs
 Dilemma: lean and mean vs. invest in
people

Week5 bolman deal_chap 6

  • 1.
    Chapter 6 People andOrganizations
  • 2.
    People and Organizations Human Resource Assumptions  Human Needs  What Needs do People Have?  Theory X and Theory Y  Personality and Organization  Human Capacity and the Changing Employment Contract  Lean and Mean: More Benefits than Costs?  Investing in People
  • 3.
    Human Resource Assumptions Organizations exist to serve human needs  People and organizations need each other  When the fit between individual and system is poor, one or both suffer  A good fit benefits both
  • 4.
    Human Needs  Theconcept of “need” is controversial  Economists: people’s willingness to trade dissimilar items disproves usefulness of concept  Psychologists: need, or motive is a useful way to talk about enduring preferences for some experiences compared to others  Needs are a product of both nature and nurture  Genes determine initial trajectory  Experience and learning profoundly influence preferences
  • 5.
    Maslow’s Need Hierarchy Needs arrayed in a hierarchy  Lower needs are “pre- potent”  Higher needs become more important after lower are satisfied  Maslow’s hierarchy:  Self-actualization  Esteem  Belongingness, love  Safety  Physiological
  • 6.
    McGregor’s Theory Xand Theory Y  Theory X  Workers are passive and lazy  Prefer to be led  Resist change  Theory Y  Management’s basis task is to ensure that workers meet their important needs while they work  Either theory can be self- fulfilling prophesy
  • 7.
    Argyris: Personality andOrganization  Traditional management principles produce conflict between people and organizations  Task specialization produces narrow, boring jobs that require few skills  Directive leadership makes workers dependent and treats them like children  Workers adapt to frustration:  Withdraw – absenteeism or quitting  Become passive, apathetic  Resist top-down control through deception, featherbedding, or sabotage  Climb the hierarchy  Form groups (such as labor unions)  Train children to believe work is unrewarding
  • 8.
    Human Capacity andthe Changing Employment Contract  Handy – Shamrock form  Core group of managers  Basic workforce – part-time or on shifts to increase organization’s flexibility  Contractual fringe – temps, independent contractors  Lean and mean (win by cutting costs): downsize, outsource, hire temps and contractors  Invest in people (win with talent): build competent, well-trained work force  Shift from production economy to information economy produces skill gaps
  • 9.
    Conclusion  Organizations needpeople and people need organizations, but the trick is to align their needs  Dilemma: lean and mean vs. invest in people
  • 10.
    Conclusion  Organizations needpeople and people need organizations, but the trick is to align their needs  Dilemma: lean and mean vs. invest in people