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Human Resource Management

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

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 369