human resources

HUMAN RELATIONS
Owners and managers of profit and nonprofit organizations
define human relations as fitting people into work
situations so as to motivate them to work together harmoniously.
The process of fitting together should achieve
higher levels of productivity for the organization, while
also bringing employees economic, psychological, and
social satisfaction. Human relations covers all types of
interactions among people—their conflicts, cooperative
efforts, and group relationships. It is the study of why our
beliefs, attitudes and behaviors sometimes cause interpersonal
conflict in our personal lives and in work-related situations.
One of the most significant developments in recent
years has been the increased importance of interpersonal
skills in almost every type of work setting. For many
employers, interpersonal skills represent an important category
of transferable skills a worker is expected to bring to
the job. Technical ability only is usually not enough to
achieve career success. Studies indicate that many people
who have difficulty in obtaining or holding a job possess
the needed technical competence but lack interpersonal
competence.

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HUMAN RELATIONS MOVEMENT
Problems in human relations are not new—cooperative
efforts carry the potential for conflicts among people. It is
only within the past few decades that management has
recognized that human relations can have considerable
impact on organizational productivity. During this
period, the human relations movement has matured into
a distinct and important field of study.
Although it is difficult to pinpoint exactly when the
human relations movement began, most researchers agree
that the earliest developments emerged in the mid-1800s.
In the beginning, the focus was mainly on improving efficiency,
motivation, and productivity. But over time, this
research became more involved with redefining the nature
of work and perceiving workers as complex human beings.
Prior to the Industrial Revolution, most work was
performed by individual craftworkers. Generally, each
worker saw a project through from start to finish. Skills
such as tailoring, carpentry, or shoemaking took a long
time to perfect and were often a source of pride to an individual.
Under this system, however, output was limited.
The Industrial Revolution had a profound impact on
the nature of work and the role of the worker. Previously,
an individual tailor could make only a few items of clothing
in a certain time period; factories could make hundreds.
Employers began to think of labor as another item
in the manufacturing equation, along with raw materials
and capital.
Employers at that time did not realize how workers’
needs affected productivity. As a result, few owners or
managers gave much thought to working conditions,
safety precautions, or worker motivation. Hours were long
and pay was low.
Around the turn of the century, Frederick Taylor
(1856–1915) and other researchers interested in industrial
problems introduced the concept of scientific management.
They believed that productivity could be improved
by breaking down a job into isolated, specialized tasks and
assigning each of those tasks to specific workers. The
development of scientific management coincided with the
revolutionary concept of mass production. Eventually it
paved the way for the assembly line.
Taylor’s work was sharply criticized by those who
believed it exploited workers. Employees were treated as a
commodity, as interchangeable as the parts they produced.
Taylor thought that by increasing production, the
company would end up with a larger financial pie for
everyone to share. Management would earn higher
bonuses; workers would take home more pay. He did not
foresee that his theories would be applied in ways that
dehumanized the workplace.
In the late 1920s, Elton Mayo (1880–1949) and
other researchers from Harvard University initiated what
have become known as the Hawthorne Studies at the
Hawthorne plant of Western Electric Company near
Chicago. The purpose of the investigation was to explore
the relationship between changes in physical working conditions
and employee productivity. Specifically, Mayo was
interested in the effect of different intensities of light on
employee output. In one experiment, ample light was provided
to a group of six female workers. Later, the amount
of light was significantly reduced, but instead of productivity
decreasing, as was expected, it actually increased.
The researchers attributed the phenomenon to what
has since become known as the Hawthorne effect—
employees who participate in scientific studies may
become more productive because of the attention they
receive from the researchers. This discovery became
important in the human relations movement because it
has been interpreted to mean that when employees feel
important and recognized, they exhibit greater motivation
to excel in their work activities.
HUMAN RELATIONS AS A FIELD OF
STUDY
Human relations is an interdisciplinary field because the
study of human behavior in organizational settings draws
on the fields of communications, management, psychology,
and sociology. It is an important field of study
because all workers engage in human relations activities.
Several trends have given new importance to human relations
due to the changing workplace.
The labor market has become a place of constant
change due to the heavy volume of mergers, buyouts, a
labor shortage, closings, and changing markets. These
changes have been accompanied by layoffs and the elimination
of product lines. Even those industries noted for
job security have recently engaged in layoffs. As the
United States attempts to cope with rapid technological
change and new competition from international companies,
there is every reason to believe that there will be more
volatility in the labor force. Interpersonal skills will be
even more critical in the future.
Organizations are developing an increasing orientation
toward service to clients. Relationships are becoming
more important than physical products. Restaurants, hospitals,
banks, public utilities, colleges, airlines, and retail
stores all must now gain and retain patronage. In any service
firm, there are thousands of critical incidents in which
customers come into contact with the organization and
form their impressions of its quality and service. Employees
must not only be able to get along with customers,
they must also project a favorable image of the organization
they represent.

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Most organizations recognize improved quality is the
key to survival. The notion of quality as a competitive tool
has been around for many years, but in the 2000s, it is
receiving much more attention. In a period of fierce competition,
a consumer may not tolerate poor quality.
Human beings are at the heart of the quality movement
because workers are given the power and responsibility to
improve quality.
Companies are organizing their workers into teams in
which each employee plays an important role. If team
members cannot work together, the goals of the organization
will suffer. In some cases, workers are cross-trained so
they can do the work of others, if necessary.
The demographics of the workplace are also changing.
Diversity is increasingly typical. In the years ahead, a
large majority of those entering the work force will be
women and minorities. Passage of the American with Disabilities
Act in 1990 opened the employment door to
more people with physical or mental impairments. In the
future, there will be increased employment of the population
over age sixty-five. Within this heterogeneous work
force, a variety of values and work habits will be found.
Supervisors will need to become skilled at managing
diversity.
The leaders of the work force in the twenty-first century
need different skills to be successful. Workers are better
educated and better informed, and have higher
expectations. They seek jobs that give not only a sense of
accomplishment but also a sense of purpose. They want
jobs that provide meaningful work. Managers must therefore
shift from manager as order-giver to manager as facilitator.
They must also learn how to assume the roles of
teacher, mentor, and resource person.
Few lines of work will be immune from these trends.
Employees must be flexible and adaptable in order to
achieve success within a climate of change. It is important
for everyone to develop those interpersonal skills that are
valued by all employers.
UNDERSTANDING HUMAN
BEHAVIOR
Mental perceptions are influenced by everything that has
passed through an individual’s mind. That includes all of
a person’s experiences, knowledge, biases, emotions, values,
and attitudes. No two people have identical perceptions
because no two people have precisely the same
experiences.
Mental perceptions may sometimes lead to conflict.
Each person has formed mental perceptions relating to a
number of controversial issues. For example, most workers
have an opinion on abortion and capital punishment,
among other issues. When proponents and opponents
clash in voicing mental perceptions of controversial issues,
conflict occurs. If the issue is one pertinent to the workplace,
such as affirmative action, human values have the
potential to lead to problems.
Ethics also play a role in interpersonal conflict. Ethics
refer to moral rules or values governing the conduct of a
person or group. Perhaps more than anything else, an
individual’s adherence to values related to what is morally
right determines the respect that others hold for that person.
Lack of respect for one individual by another is likely
to lead to poor human relations between the two.
The social dimension of behavior is determined by a
person’s personality, attitudes, needs, and wants. An individual’s
personality is the totality of complex characteristics,
including behavior and emotional tendencies,
personal and social traits, self-concept, and social skills.
The objective of many training sessions for employees and
supervisors is to improve a person’s ability to get along
with others. A person’s personality has a major impact on
human relations skills.
People reveal their attitudes through their personality.
An attitude is a mental position one possesses with regard
to a fact, issue, or belief. Attitudes that often present problems
in the workplace are those that concern biased and
prejudiced viewpoints. Generally, employees who possess
positive attitudes and who are open-minded are judged to
have more desirable personalities than those with negative
attitudes who hold biased viewpoints.
COMMUNICATION
Perhaps the single most important aspect of designing any
work environment is the plan that links all workers and
supervisors with multiple channels of communication.
Good communication may be cited as the most important
component of sound human relations. Despite the recognition
of the importance of communication, it presents
one of the most difficult and perplexing problems faced in
modern organizations.
Even in small organizations, where only a few people
are involved, sound communication is difficult to establish.
When an organization expands in numbers, as well as
in diversity among its members, the establishment of
communication channels becomes even more difficult.
Good communication is essential for the smooth functioning
of any organization. Managers need clear lines of
communication to transmit orders and policies, build
cooperation, and unify groups. Employees must be able to
convey their concerns or suggestions and feel that management
has heard them. Clear communication among
co-workers is vital to good teamwork, problem solving,
and conflict management. In short, effective human relations
is founded on good communication.

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When people in organizations want to send messages,
conduct meetings, or communicate person to person, they
have many options. With increased use of voice mail, email,
fax machines, and videoconferencing, it is a wonder
people have time to read all the incoming information, let
alone interpret and respond to it.
Costly communication breakdowns are a prime factor
in organizational problems ranging from high
employee turnover to low productivity. Poor communication
also takes a toll in employee injuries and deaths, particularly
in industries where workers operate heavy
equipment or handle hazardous materials.
Although some communication breakdowns are
inevitable, many can be avoided. Employees who are
treated with respect, are empowered to think for themselves,
and feel a sense of loyalty are more apt to communicate
openly with other workers and leaders throughout
the organization.
TYPES OF RELATIONSHIPS
Human relations occurs on several levels. Individuals
interact in a variety of settings—as peers, subordinates,
and supervisors. No matter what the setting, relationships
are built. All types of groups exist in an organization. Formal
groups are officially designated, while informal
groups are formed unofficially by the members themselves.
Some would argue the informal groups have more
power. In either situation, important human relationships
are taking place.
Employees relate to their work group, other formal
groups, and informal groups. The norms set by a group
can greatly influence a person’s behavior. Dress and language
are two examples. Considering the number of
groups in the complex organizations of the twenty-first
century, the influence is unlimited.
The organization provides an opportunity for individual
satisfaction. To achieve such satisfaction, and to
continue as a successful member in the organization, the
individual must comply with organizational policies, procedures,
and rules. The organization requires certain
behaviors from its employees. The rewards for such behaviors
are demonstrated in the form of raises, promotions,
and continued employment. When the organization promotes
an employee, it is relating to the individual.
Complex organizations depend on dividing the work
among many formalized groups. Informal groups will also
emerge, either positively or negatively affecting organizational
outcomes. The relationship between organizations
and groups must also be considered when quotas or standards
are established. The acceptance or rejection of such
standards illustrates the interaction between the organization
and the group.
One also has a relationship to one’s self. Are you
happy with yourself? Are you happy with your relationships
with others? With the organization? With your
future? If not, perhaps you should analyze your relationship
with yourself.
Managers and supervisors achieve results through
people. Therefore, the complex organizations of the 2000s
require managers and supervisors to display a concern for
people. The successful leader creates an effective balance
between people and productivity, and recognizes human
relations as the key ingredient transforming organizational
plans into organizational results. Although it is often misunderstood,
effective human relations will lead to success.
Human relations is not limited to supervisors. It also
applies to every employee in an organization. Statistics
indicate that successful people competently practice interpersonal
skills, while the incompetent are left behind. Fortunately,
these skills can be developed. Good relationships
must be built among individuals and within groups of an
organization. Although this is not an easy task, success
without good human relations in not possible. Every individual
must be prepared to meet the challenge.
SEE ALSO Management/Leadership Styles
BIBLIOGRAPHY
Wray, Ralph, Luft, Roger L., and Highland, Patrick J. (1996).
Fundamentals of Human Relations: Applications for Life and
Work. Cincinnati, OH: Southwestern Publishing.
Patrick J. Highland
HUMAN RESOURCE
MANAGEMENT
Humans are an organization’s greatest assets; without
them, everyday business functions such as managing cash
flow, making business transactions, communicating
through all forms of media, and dealing with customers
could not be completed. Humans and the potential they
possess drive an organization. Organizations are continuously
changing. Organizational change impacts not only
the business but also its employees. In order to maximize
organizational effectiveness, human potential—individuals’
capabilities, time, and talents—must be managed.
Human resource management works to ensure that
employees are able to meet the organization’s goals.
“Human resource management is responsible for how
people are treated in organizations. It is responsible for
bringing people into the organization, helping them perform
their work, compensating them for their labors, and

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solving problems that arise” (Cherrington, 1995, p. 5).
There are seven management functions of a human
resources (HR) department that will be specifically
addressed: staffing, performance appraisals, compensation
and benefits, training and development, employee and
labor relations, safety and health, and human resource
research.
Generally, in small organizations with fewer than a
hundred employees there may not be an HR department,
and so a line manager will be responsible for the functions
of HR management (HRM). In large organizations with a
hundred employees or more, a human resources manager
will coordinate the HRM duties and report directly to the
chief executive officer (CEO). HRM staff in larger organizations
may include human resource generalists and
human resource specialists. As the name implies, an HR
generalist is routinely involved with all seven HRM functions,
while the HR specialist focuses attention on only
one of the seven responsibilities.
An understanding of the job analysis is necessary to
understand the seven functions. An essential component
of any HR unit, no matter the size, is the job analysis,
which is completed to determine activities, skills, and
knowledge required of an employee for a specific job. Job
analyses are “performed on three occasions: (1) when the
organization is first started, (2) when a new job is created,
and (3) when a job is changed as a result of new methods,
new procedures, or new technology” (Cherrington,
1995).
Jobs can be analyzed through the use of questionnaires,
observations, interviews, employee recordings, or a
combination of any of these methods. Two important
tools used in defining the job are (1) a job description,
which identifies the job, provides a list of responsibilities
and duties unique to the job, gives performance standards,
and specifies necessary machines and equipment; and (2)
the job specification, which states the minimum amount
of education and experience needed for performing the
job (Mondy, Noe, and Gowan, 2005).
STAFFING
Both the job description and the job specification are useful
tools for the staffing process, the first of the seven HR
functions to be discussed. Someone (e.g., a department
manager) or some event (e.g., an employee’s leaving)
within the organization usually determines a need to hire
a new employee. In large organizations, an employee requisition
must be submitted to the HR department that
specifies the job title, the department, and the date the
employee is needed. From there, the job description can
be referenced for specific job-related qualifications to provide
more detail when advertising the position—either
internally, externally, or both (Mondy, Noe, and Gowan,
2005).
Not only must the HR department attract qualified
applicants through job postings or other forms of advertising,
but it also assists in screening candidates’ resumes
and bringing those with the proper qualifications in for an
interview. The final say in selecting the candidate will
probably be the line manager’s, assuming all Equal
Employment Opportunity Commission (EEOC) requirements
are met. Other ongoing staffing responsibilities
involve planning for new or changing positions and
reviewing current job analyses and job descriptions to
make sure they accurately reflect the current position.
PERFORMANCE APPRAISALS
Once a talented individual is brought into an organization,
another function of HRM comes into play—creating
an environment that will motivate and reward
exemplary performance. One way to assess performance is
through a formal review on a periodic basis, generally
annually, known as a performance appraisal or performance
evaluation. Because line managers are in daily contact
with the employees and can best measure
performance, they are usually the ones who conduct the
appraisals. Other evaluators of the employee’s performance
can include subordinates, peers, group, and self, or a
combination of one or more (Mondy, Noe, and Gowan,
2005).
Just as there can be different performance evaluators,
depending on the job, several appraisal systems can be
used. Some of the popular appraisal methods include (1)
ranking of all employees in a group; (2) using rating scales
to define above-average, average, and below-average performance;
(3) recording favorable and unfavorable performance,
known as critical incidents; and (4) managing
by objectives, or MBO (Mondy, Noe, and Gowan, 2005).
Cherrington (1995) illustrates how performance
appraisals serve several purposes, including: (1) guiding
human resource actions such as hiring, firing, and promoting;
(2) rewarding employees through bonuses, promotions,
and so on; (3) providing feedback and noting
areas of improvement; (4) identifying training and development
needs in order to improve the individual’s performance
on the job; and (5) providing job-related data
useful in human resource planning.
COMPENSATION AND BENEFITS
Compensation (payment in the form of hourly wages or
annual salaries) and benefits (insurance, pensions, vacation,
modified workweek, sick days, stock options, etc.)
can be a catch-22 because an employee’s performance can
be influenced by compensation and benefits, and vice

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versa. In the ideal situation, employees feel they are paid
what they are worth, are rewarded with sufficient benefits,
and receive some intrinsic satisfaction (good work environment,
interesting work, etc.). Compensation should
be legal and ethical, adequate, motivating, fair and equitable,
cost-effective, and able to provide employment
security (Cherrington, 1995).
TRAINING AND DEVELOPMENT
Performance appraisals not only assist in determining
compensation and benefits, but they are also instrumental
in identifying ways to help individuals improve their current
positions and prepare for future opportunities. As the
structure of organizations continues to change through
downsizing or expansion, the need for training and development
programs continues to grow. Improving or
obtaining new skills is part of another area of HRM,
known as training and development.
“Training focuses on learning the skills, knowledge,
and attitudes required to initially perform a job or task or
to improve upon the performance of a current job or task,
while development activities are not job related, but concentrate
on broadening the employee’s horizons” (Nadler
and Wiggs, 1986, p. 5). Education, which focuses on
learning new skills, knowledge, and attitudes to be used in
future work, also deserves mention (Nadler and Wiggs,
1986).
Because the focus is on the current job, only training
and development will be discussed. Training can be used
in a variety of ways, including (1) orienting and informing
employees, (2) developing desired skills, (3) preventing
accidents through safety training, (4) supplying
professional and technical education, and (5) providing
supervisory training and executive education (Cherrington,
1995).
Each of these training methods has benefits to the
individual as well as to the organization. Some of the benefits
are reducing the learning time for new hires, teaching
employees how to use new or updated technology,
decreasing the number and cost of accidents because
employees know how to operate a machine properly, providing
better customer service, improving quality and
quantity of productivity, and obtaining management
involvement in the training process (Cherrington, 1995).
When managers go through the training, they are showing
others that they are taking the goals of training seriously
and are committed to the importance of human
resource development.
The type of training depends on the material to be
learned, the length of time learners have, and the financial
resources available. One type is instructor-led training,
which generally allows participants to see a demonstration
and to work with the product first-hand. On-the-job
training and apprenticeships let participants acquire new
skills as they continue to perform various aspects of the
job. Computer-based training (CBT) provides learners at
various geographic locations access to material to be
learned at convenient times and locations. Simulation
exercises give participants a chance to learn outcomes of
choices in a nonthreatening environment before applying
the concept to real situations.
Training focuses on the current job, while development
concentrates on providing activities to help
employees expand their current knowledge and to allow
for growth. Types of development opportunities include
mentoring, career counseling, management and supervisory
development, and job training (Cherrington,
1995).
EMPLOYEE AND LABOR RELATIONS
Just as human resource developers make sure employees
have proper training, there are groups of employees organized
as unions to address and resolve employment-related
issues. Unions have been around since the time of the
American Revolution (Mondy, Noe, and Gowan, 2005).
Those who join unions usually do so for one or both of
two reasons—to increase wages and/or to eliminate unfair
conditions. Some of the outcomes of union involvement
include better medical plans, extended vacation time, and
increased wages (Cherrington, 1995).
In the early twenty-first century, unions remain a
controversial topic. Under the provisions of the Taft-Hartley
Act, the closed-shop arrangement states employees
(outside the construction industry) are not required to
join a union when they are hired. Union-shop arrangements
permit employers to hire nonunion workers contingent
upon their joining the union once they are hired.
The Taft-Hartley Act gives employers the right to file
unfair labor practice complaints against the union and to
express their views concerning unions (Cherrington,
1995).
Not only do HR managers deal with union organizations,
but they are also responsible for resolving collective
bargaining issues—namely, the contract. The contract
defines employment-related issues such as compensation
and benefits, working conditions, job security, discipline
procedures, individuals’ rights, management’s rights, and
contract length. Collective bargaining involves management
and the union trying to resolve any issues peacefully—
before the union finds it necessary to strike or
picket and/or management decides to institute a lockout
(Cherrington, 1995).

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SAFETY AND HEALTH
Not only must an organization see to it that employees’
rights are not violated, but it must also provide a safe and
healthy working environment. Mondy, Noe, and Gowan
(2005) define safety as “protecting employees from
injuries caused by work-related accidents” and health as
keeping “employees free from physical or emotional illness”
(p. 432). In order to prevent injury or illness, the
Occupational Safety and Health Administration (OSHA)
was created in 1970. Through workplace inspections, citations
and penalties, and on-site consultations, OSHA
seeks to enhance safety and health and to decrease accidents,
which lead to decreased productivity and increased
operating costs (Cherrington, 1995).
Health problems recognized in the workplace can
include the effects of smoking, alcohol and drug/substance
abuse, AIDS, stress, and burnout. Through employee assistance
programs (EAPs), employees with emotional difficulties
are given “the same consideration and assistance” as
those employees with physical illnesses (Mondy, Noe, and
Gowan, 2005, p. 455).
HUMAN RESOURCE RESEARCH
In addition to recognizing workplace hazards, organizations
are responsible for tracking safety- and healthrelated
issues and reporting those statistics to the appropriate
sources. The human resources department seems to
be the storehouse for maintaining the history of the
organization—everything from studying a department’s
high turnover or knowing the number of people presently
employed, to generating statistics on the percentages of
women, minorities, and other demographic characteristics.
Data for the research can be gathered from a number
of sources, including surveys/questionnaires, observations,
interviews, and case studies (Cherrington, 1995). This
research better enables organizations to predict cyclical
trends and to properly recruit and select employees.
CONCLUSION
Research is part of all the other six functions of human
resource management. With the number of organizations
participating in some form of international business, the
need for HRM research will only continue to grow. Therefore,
it is important for human resource professionals to
be up to date on the latest trends in staffing, performance
appraisals, compensation and benefits, training and development,
employee and labor relations, and safety and
health issues, both in the United States and in the global
market.
One professional organization that provides statistics
to human resource managers is the Society for Human
Resource Management (SHRM), the largest professional
organization for human resource management professionals.
Much of the research conducted within organizations
is sent to SHRM to be used for compiling international
statistics.