Definition- it’s the interpersonal aspect of managing by which subordinates are led to understand and contribute effectively and efficiently to the attainment of enterprise objectives.
A good leader evokes zeal and confidence in subordinates. Without this quality the enterprise may be superbly organized and staffed and many have excellent plans but its performance may be mediocre.
The human factor
Organizations are set up with complements of the productive factors i.e. material assets, machines, equipments, building, finance, raw materials and it’s the directing authority’s task to Manage these resources most effectively to achieve the enterprise objectives.
Nature of man
Man is basically motivated by social needs and obtains his basic sense of identity through relationships with others.
As a result of the industrial revolution and the rationalization of work, much of the meaning has gone out of work itself and must therefore be sought in the social relationships on the job.
Man is more responsive to the social forces of the peer group than to the incentives and controls of management.
Man is responsive to management to the extent that a supervisor can meet a subordinate’s social needs and needs for acceptance.
Schein, Maslow, McGregor, Argyris contend
That man’s motives fall into classes which are arranged in a hierarchy, physiological-social-egoistic etc
Man seeks to be mature on the job and is capable of being so
Man is primarily self motivated and self controlled
There is no inherent conflict between self actualization and more effective organization performance.
Schein himself feels that;
Man is not only complex, but also highly variable
Man is capable of learning new motives through his organizational experiences.
Man’s motivates in different organizations or different sub-parts of the same organization may be different.
Man can respond to different kinds of managerial strategies.
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