Although the administration seeks to integrate business and individual objectives and people are considered as resources; the truth is that people have many more characteristics such as skills, abilities, knowledge, motivation to work and communicability.
For the success of the administration, it is also necessary to consider, and genuinely, all the personnel of the company as a unique and total individual, with personality characteristics, expectations, interests and personal goals. Remember that people are the most valuable resource in any company.
The human being is complex and has certain characteristics:
• People are oriented to the satisfaction of their needs, objectives and aspirations.
• The human being is social
• Each person has different needs and they are motivated by a great variety of these needs that vary from day to day, from one appointment to another and from one person to another.
• The individual is capable of perceiving and evaluating based on their past experiences, attitudes, values and beliefs.
• Everyone is capable of thinking and choosing.
• The response capacity in individuals is limited and varies in each person depending on their aptitudes and attitudes, learning, physical and mental capacity.
The administration is strongly influenced by the conception and appreciation of human nature that exists in the organization.The human factor did not always occupy the preponderant place in companies.According to Douglas McGregor (taken from Chiavenato, 1998, p.97-102), there are basically two styles of management according to the organizational philosophy about human nature:• The traditional conception of administration or "Theory X", which is based on the following assumptions:
- The primary motivation of man is economic incentives.
- The organization must manage, motivate and control the worker as this is a passive agent.
- Emotions should not interfere with the interest of the individual.
- Man is essentially lazy and must be stimulated with external incentives.
- Individual interests are contrary to those of the company, so a rigid control is required.
- The human being is incapable of self-control and of achieving self-discipline.
Under this conception, the administration is restricted to the employment and control of people with the sole interest of achieving business objectives.
Management must persuade, reward, punish, coerce and control staff and direct all their activities. Although these beliefs or positions may seem medieval, today they dominate in some companies.
• The new conception of management or "Theory Y" is based on the theory of human motivation:
- Physical and mental effort is natural. Depending on working conditions, work can be rewarding or aversive.
- Human beings are capable of carrying out their work without the need for external controls, threats or punishments.
- The directed effort to achieve the goal set is a source of satisfaction and gratification.
- Is capable of developing creative problem solving.
- The human being is not passive and does not necessarily contravene the objectives of the organization.
- People have motivation, the ability to develop and are capable of assuming responsibilities. Within this context, the work of the administration is then:
- Organize financial, material, technical and human resources to achieve business purposes.
- People are active elements and the primary resource of the company.
- The organization must promote the motivation, development and self-direction of the staff.
- The primary task of management is to create conditions and methods by which people can more easily achieve their individual objectives and strive to achieve business goals.
The management style based on Theory Y gives rise to practical application by:
- Decentralize and delegate authority and functions.
- Innovate positions and make them meaningful work.
- Promote staff participation when planning, evaluating and setting goals
- Promote self-evaluation of performance.
These positions, X and Y, are now considered not radical, but management styles run along a continuum.
Another management model that has been successful in Japan and applied in other countries has been "Theory Z", presented by William Ouchi. Productivity for the Japanese is more a matter of personnel management than technology.
It is a humanistic approach, where the worker is considered as an integral being. It is based on a decision-making process, based on participation and consensus given the experience and ties of the members to the organization.