CHAPTER ONE
Background To 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
1.1 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)
1.2 Objectives of the Study
To determine the Effect of good human relations on organizational performance (a case study
To determine the effect of good human relation on the organizational performance of prudent energy oghara
1.3 Research Questions
What is the nature of the effect of human relation on organizational performance?
What is the nature of the effect of human relation on the organizational performance of prudent energy oghara?
1.4 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
1.5 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.
1.6 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
1.7 Limitations of the Study
The study was confronted by some constraints including logistics and geographical factors.
1.9 Definition of Terms
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.