Effect Of Good Human Relations On Organizational Performance

Project and Seminar Material for Human Resource Management (HRM)

Effect Of Good Human Relations On Organizational Performance


Chapter One


Introduction

1.1 Background Of The Study

According to Onasanya (1990) human relations consist of the relationship between an individual and another and a group of people at the work place, social gathering or community. He stated that good human relations between staff and management will result in mutual understanding and cooperation which will lead to the attainment of organizational performance. This implies that the organization management will have to maintain good relationship with all members of staff at all levels in the organization.

Hicks and Byers (1972), postulate that human relations requires the integration of all employees into the organization so as to motivates them to work cooperatively so as to attain economic, psychological and social satisfaction. They emphasized that many factors influence a person’s behavior and attitude such as appearance, health, emotion, age, sex, education, religion, nationality and culture and environment, also frustration leads to resentment among staff. Consequently the fundamental objective of human relation is to create a sense of belonging and commitment among staff so that they can feel they are important to the organization. This requires essentially building a participative and integrated workforce.

Organizational performance is viewed as the actual output or results attained by a firm when compared with the intended outputs, goals and objectives. According to Richard et al. (2009), three essential areas of outcomes: 1 shareholder return (total shareholder return, economic value added, etc. 2 financial performance (profits, return on assets, return on investment, etc.); 3 product market performance (sales, market share, etc.); constitute organizational performance. The research therefore seek to investigate the Effect of good human relations on organizational performance with a case study of prudent energy oghara


1.2 Statement Of The Problem

The practice of many organization using the traditional method of management propounded by federick Taylor with emphasy of maximizing output through the efficient management of the production process without regard to the human factor constitute one fundamental reason for poor human relation in many organization. A significant drift occurred to proffer solution to the deficiency of the classical approach to management when the human relations theorists led by Elton Mayo emphasized the human factor as social being which need to be recognized and given the environment to interact with fellow workers cooperatively to proffer solution to common problem at work. This they advocated will lead to employee motivation, satisfaction and productivity. This implies that even with the best of technology, if the human beings or workers needs are not given attention organizational goals may not be achieved.

Consequently human relation was considered to be vital in providing the worker a sense of belonging to the organization. They were of the opinion that worker is interested in the satisfaction of their social needs at work, and of influence of group members; Therefore the management must create an environment for people to satisfy their social needs. Gullerman (1966) therefore views human relations as the way employee think, respond and interact with each other.

Consequently with the advent of the human relations it was vital to consider workers not only as a factor of production, but as human beings with feelings,wants,attitude,and desire, which need to be attended to by both the management and organizational members so as to enhance mutual understanding, integration and satisfaction of workers .Therefore the advent and growth of the human relations movement led to the recognition and fulfillment of employees needs which actuated employee motivation and productivity resulting in organizational performance. Consequently the problem confronting the research is to appraise the Effect of good human relations on organizational performance (a case study of prudent energy oghara)


1.3 Objectives Of The Study

  1. To determine the Effect of good human relations on organizational performance (a case study
  2. To determine the effect of good human relation on the organizational performance of prudent energy oghara.

1.4 Research Questions

  1. What is the nature of the effect of human relation on organizational performance?
  2. What is the nature of the effect of human relation on the organizational performance of prudent energy oghara?

1.5 Significance Of The Study

The study is particularly significant considering the vital role of the human resource in accomplishing the aims and objective of the organization

Therefore the recognition and fulfillment of employees needs leads to good human relation in the organization and consequently organizational performance. No organization ever succeeded without the effective contribution of its employees


1.6 Research Hypothesis

Ho The effect of human relation on the organizational performance of prudent energy oghara is negative

Hi The effect of human relation on the organizational performance of prudent energy oghara is positive.


1.7 Scope Of The Study

The study focuses on the appraisal of the effect of human relation on organizational performance with a case study of prudent energy oghara


1.8 Limitations Of The Study

The study was confronted by some constraints including logistics and geographical factors.


1.9 Definition Of Terms

Organizational Performance

Organizational performance is viewed as the actual output or results attained by a firm when compared with the intended outputs, goals and objectives. According to Richard et al. (2009), three essential areas of outcomes: 1 shareholder return (total shareholder return, economic value added, etc. 2 financial performance (profits, return on assets, return on investment, etc.); 3 product market performance (sales, market share, etc.); constitute organizational performance.

Human Relation

Human relations consist of the relationship between an individual and another and a group of people at the work place, social gathering or community. He stated that good human relations between staff and management will result in mutual understanding and cooperation which will lead to the attainment of organizational performance. This implies that the organization management will have to maintain good relationship with all members of staff at all levels in the organization.


Effect Of Good Human Relations On Organizational Performance


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