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. Unity of command. Workers should receive orders from only one manager. In other words,

reporting to two or more managers would violate Fayol’s Fourteen Principles of Management.

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5. Unity of direction. Everyone in the organization should move toward a common goal and

understand how the team will achieve that goal.

6. Subordination of individual interests to general interests. The interests of one person

shouldn’t have priority over the interests of the organization as a whole. This focuses on teamwork

and the importance of everyone acting toward the same goal.

7. Remuneration. Many things should be considered when paying employees, including cost of living,

supply of qualified people, and business success.

8. Centralization. The degree of importance in the subordinates’ (employees’) role in their

organization and the amount of decision making that occurs at a central level versus a decentralized

level. For example, in many organizations decisions are made centrally (i.e., in the “corporate office”),


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which does not allow as much flexibility as decentralized decision making; this would mean each

individual area can make its own decisions.

9. Scalar chain. This refers to how authority is divided among managers. Specifically, Fayol said

lower-level managers should always keep upper-level managers informed.

10. Order. All materials and people related to one kind of work should be organized and neat. Things

should be easy to find.

11. Equity. All employees should be treated equally.

12. Stability of tenure of personnel. Retention of employees should be a high management priority.

The cost of hiring a new worker is expensive, so efforts should be maintained to keep current


13. Initiative. Management should take steps to encourage workers to take initiative. In addition,

workers should be self-directed and not need a lot of management control to accomplish tasks.

14. Esprit de corps. Managers should encourage harmony among employees. This harmony creates

good feelings among employees.


Fayol’s research was some of the first that addressed the need for positive human relations in a work

environment. As further research was performed into the 1920s, we moved into a new period of human

relations studies called the behavioral school of management. During this time period, employees

had begun to unionize, bringing human relations issues to the forefront. Because workers demanded a

more humane environment, researchers began to look at how organizations could make this happen.

One of the more notable researchers was Elton Mayo, from Harvard Business School, and his colleagues.

They conducted a series of experiments from the mid-1920s to early 1930s to investigate how physical

working conditions affected worker productivity. They found that regardless of changes such as heat,

lighting, hours, and breaks, productivity levels increased during the study. The researchers realized the

increased productivity resulted because the workers knew they were being observed. In other words, the

workers worked harder because they were receiving attention and felt cared about. This phenomenon is

called the Hawthorne effect (named for the electrical plant for which the experiments were conducted).

In the 1950s, researchers began to explore management techniques and the effect on worker satisfaction.



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This was called the behavioral science approach. These techniques used psychology, sociology, and

other human relations aspects to help researchers understand the organizational environment.

Since the 1960s, research on human relations has been much easier to assimilate because of technology

and a focus on statistical analysis. Hence, this is called the management science school. So while

research today focuses on the human relations aspect, we are now able to use complex statistical models

to improve efficiency and productivity while still focusing on the human relations component.


Human Relations, Technology, and Globalization

While we discuss the impact of technology on human relations throughout the book, it is important to

mention here the immense impact technology has had on this field of study. Inability to see body language

indicators make it more difficult to communicate using technology, creating conflict and

misunderstandings. These misunderstandings can obviously affect human relations. Also consider that

through globalization, we are working with people from all over the world in many time zones who have

different perspectives. Between technology and globalization, humans have never had to work with such a

diverse group of people—using diverse methods of communication—at any time in history.

Technology has allowed us to do this: e-mail, Skype, and instant message, to name a few. The impact on

human relations is obvious—there is less face-to-face interactions and more interactions using technology.

Add in the challenge of a global environment and this creates a whole new set of challenges.

Many organizations today are focusing on how to use technology to save workers time commuting to

work. In fact, an estimated 26.2 million workers telecommute, or work from a remote location at least

once per month. [8]Global Workplace Analytics cites the following benefits to telecommuting:

1. Improved employee satisfaction

2. Reduced unscheduled absences

3. Increased productivity

However, Global Workplace Analytics also says there are some key drawbacks:[9]

1. Social needs may not be met

2. People must be self-directed

3. Employees must be comfortable with technology or it won’t work



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While technology has greatly impacted human relations at work, there are some common denominators

for human relations success in today’s workplace—whether or not technology is used. These factors will be

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