The Effect Of Human Relations On The Performance Of An Organization

Project and Seminar Material for Human Resource Management (HRM)

The Effect Of Human Relations On The Performance Of An Organization


Abstract


This study was carried out to examine the the effect of human relations on the performance of an organization. Specifically, the study examined found out the effects of human relations’ practice towards the achievement of organizational goals, examined whether human relations has impacts on workers performance and establish whether human relations is determinant in employees retention in an organization. The study employed the survey descriptive research design. A total of 230 responses were validated from the survey. The study adopted the Human Relation Theory.

From the responses obtained and analysed, the findings revealed that Human Relations has effect on workers’ productivity. Furthermore, Human relations’ practice has effect on achievement of organizational goals and Human relations has effect on employees retention in an organization. The study recommend that Management of organizations should ensure that there is effective human relations between management and employees. This leads to the easy achievement of organizational goals as tasks will be executed effectively and as at when due. More so, effective and a good human relationship should be ensured within the staff as this will lead to a healthy working environmentdevoid of toxicity.


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 participating and integrated workforce.

Onasanya (1990) in similar vain believes that human relations, being a behavoural science which deals with inter-personal, inter-work group and management of employees relationship in a social system seems to be the only tool for organizational productivity and development. The reason is not far fetched since efforts of Elton Mayo and his research colleagues in the 1920s on behavioural approach to management succeeded to have yielded much more factual analysis in terms of the chicken-egg relationship between human relations and productivity in an organization.Hicks and Byers (1982) in their contributions defined human relations as “the integration of people into a work situation in a way that motivates them to work together, productively and cooperatively with economic, psychological and social satisfaction”. This further confirms that paying attention to the human elements enhances greater productivity and performance.Human relations is a definitive management function which helps to establish and maintain mutual line of communication, understanding, acceptance and cooperation between an organization and its human. It involves the management to keep opinions, defines, and as well emphasizes the responsibility of management to serve the human interest.However, human relations has long attained professional status but it has been discovered that most organizations are not taking full advantage of its efficient utilization when dealing with their publics due to ignorance or improper understanding as to the effectiveness of the discipline to organizational success. Thus effect the need for this study in order to highlight the effect of human relations practice on organizational productivity.

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 human relations on the performance of an organization with a case study of prudent energy oghara, Delta State.


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.


1.3 Objectives of the Study

  1. To find out the effects of human relations’ practice towards the achievement of organizational goals.
  2. To examine whether human relations has impacts on workers performance.
  3. To establish whether human relations is determinant in employees retention in an organization.

1.4 Statement of Hypotheses

The following hypothesis are formulated for this study:

  1. Ho1: Human Relations does not have effect on workers’ productivity.
    Ha1: Human Relations has effect on workers’ productivity.
  2. Ho2: Human relations’ practice does not have effect on achievement of organizational goals.
    Ha2: Human relations’ practice has effect on achievement of organizational goals
  3. Ho3: Human relations does not have effect on employees retention in an organization
    Ha3: Human relations has effect on employees retention in an organization

1.5 Significance of the Study

In view of the constant struggle by the organizations to balance both the employee’s needs and the organizational needs for the effective actualization of set goals, it is expected that the study would be of good benefits to executives, managers, future business establishment and future researchers. Similarly, the study will help organizations to improve on implementing human relations policies so as to enable them control problems facing them from such angle.

Infact, it will serve as eye-opener to most organizations who are yet to embrace the system, thereby enlighten workers (industrial and groups) about the concept of human relations and the effect on productivity. It is hoped that the study would also help executives to improve on the need for good human relations with workers and clients to improve the organization’s performance.In addition, the adoption of this new approach to firm’s advancement will improve employees performance, productivity, efficiency as well as employees attitude to work.

Furthermore, the study will also be of help to those who may want to research into the area by serving as a reference material for future investigation.


1.6 Scope of the Study

This study centres on the effect of Human Relations on organizational productivity using Nigerian Institute for Trypanosomiasis Research, Kaduna as a case study. The study covers sizeable staff of the institute drawn from the various cadre of management (form top management to subordinates) in order to ensure a more comprehensive and detail examination. The staff includes both the male and female sex of different ages and level of service.


1.7 Limitations of the Study

Time:

Although the time for the study is quite long, but academic demand such as preparation for tests, assignments and paper presentations took a lot of time for one to go out and source for information.

Financial Constraint:

This was another limitation which made it uneasy for the materials to be easily assessed at the appropriate time.

Bureaucratic Bottle-Neck:

In addition, stringent rules and regulations guiding the release of information in the institute (NITR) made it almost impossible for one to obtained details about the organization.


Chapter Five


Summary, Conclusion and Recommendation

5.1 Summary

In this study, our focus was to examine the effect of human relations on the performance of an organization, using Nigerian Institute for Trypanosomiasis Research, Kaduna as a case study. The study specifically was aimed at finding out the effects of human relations’ practice towards the achievement of organizational goals, examine whether human relations has impacts on workers performance, and establish whether human relations is determinant in employees retention in an organization.

This study was anchored on the Human Relation Theory.

The study adopted the survey research design and conveniently enrolled participants in the study. A total of 30 responses were received and validated from the enrolled participants where all respondent are drawn from the staff of Nigerian Institute for Trypanosomiasis Research, Kaduna.


5.2 Conclusion

Based on the finding of this study, the following conclusions were made:

  1. Human Relations affects the achievement of organizational goals
  2. A good human relations has effect on workers’ performance.
  3. Human Relations is determinant in employees retention in an organization.

5.3 Recommendations

In the light of the findings and conclusions, the following recommendations are hereby proposed:

  1. Management of organizations should ensure that there is effective human relations between management and employees. This leads to the easy achievement of organizational goals as tasks will be executed effectively and as at when due.
  2. Effective and a good human relationship should be ensured within the staff as this will lead to a healthy working environment devoid of toxicity.

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