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THE EFFECT OF HUMAN RELATIONS ON THE PERFORMANCE OF AN ORGANIZATION

CHAPTER ONE

INTRODUCTION

1.1  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 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 human relations on organizational performance  with a case study of prudent energy oghara

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

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