Humanistic Man,agement and Organizational Success: The Effect of Job and Work Envi.

ronment Characteristics on Organizational Effectiveness, Public Responsiveness, and Job Satisfaction

by

Dennis M .. Daley

TI.;s p.ip~r is b.1sed on a 1983 al.!IIudinal' survey of Iowa public employees examini'l& the '~ffecl of job (job challenge, role clarify, and periormence apwaisal' faimf'ss) and work environment (personal' signifiCance, ~lJpervisorr relalionlihip, .md employee ireedom), character· istics - used here as indicators of humanistic management - an organizational &ucce.s (perceptions of organizational eitectiveness, public: responsiveness, and.job saii'siaction). The results document three findings: (1) organ/xalions are p"rceived' ~s be/nu succ:es!iful, (2l' job and worl; environment' characteristi,s are viewPd as favorable, and (3) an ecross-tb ... board,. albeil' mode.rate, relationship between organi:lational success and' humanistic: mamJgement preetlces is perCf!ived fo e_J(;st.

m· I Hu~an~s~c management is r~garded by many as a~eans for bo.th, enhancing produ~tl'Vlt! and fo~ developm~ th~ ~uman potentIaL. Hu~amstic m~nag,ement IS quintessentially behavioralfstic and focuses primarily on human motivation. It subsumes an almost eclectic set of writings on organizational behavior encompassing the works of such noted scholars as Chris Argyris (1957), Warren Bennis (1966), Frederick Herzberg (1959,. 1966), Rensis Likert (1961, 1967)., Abraham Maslow (1954, 1965, 1971), and Douglas McGregor (1960). Because the function of management becomes that of coordinating the organization-human relationship, strong emphasis Is placed upon the use of some form of participative management (Drucker, 1954, 1:974; Likert, 1967).

An early paucity of empirical research on this topic (Gibson and Teasley, 1973) has in the past decade begun to be redressed. Recent "popular" management literature has been quite laudatory of the humanistic participative management style and the productivity/effectiveness that it can motivate (Blanchard and Johnson, 1982; Ouehi, 1981;. Pascale and Athos, 1981; Peters and Waterman, 1982). "Academic" Iiterature has also blossomed with numerous motivational studies (Greiner, et al., 1981; Perry and Porter, 1982).

Dennis M. Daley is an assistant professar of political science. at the University of Mississippi. He received a Ph_D_ in political science at Washi;o,gton State University. He teaches courses in personnel administration and public budgeting. His research focuses on topics in administrative behavior and personnel management and he has been published in the Review of Public Personnel Administration, Public Personnel Manuge'l11,e.nt, and Admin.tstration an4 Society.

Publk: Personnel' Management Vol. 15, No.2 (Summer 1986) 131

From the perspective of humanistic management, the attitudes er perceptions of employees with regard to the organization are in themselves important factors contributing to its ultimate success. Such is the focus of this paper." This paper examines public employee attitudes vis-a-vis job (job challenge, role clarity, and performance appraisal fairness) and work. environment (personal significance, supervisory relationship, and employee freedom) characteristics and their effect on the perceptions of organizational success (organizational effectiveness, public responsiveness, and job satisfaction) .

This paper is based on data from a 1983 survey of administratora employed by the State of Iowa and includes employees from all types of state agencies and hierarchial levels. Iowa is a state which has experimented with modern management techniques since the mid-1970s and has in recent years attempted to foster a participative atmosphere among state employees.

Under Governor Harold Hughes' administration (1963-1969), a number of efforts were undertaken tostrengthen the executive, Among these reforms was the creation, in 1967, of the State Merit System of Personnel. Administration, administered. by the Iowa Merit Employment Department (IMED) , This marks the beginning of the professicnalization of the public service in Iowa. Even so, there were numerous exemptions limiting the extent of the merit system coverage, both in terms of separate systems outside its jurisdiction and of patronage appointments.

The executive/administrative reform movement was continued throughout the lengthy service of Governor Robert Ray (1969-1988l. Strong executive support was placed behind the development of the personnel system as well as in the introduction of management-by-objectives and a modified Zero-Base Budgeting system. Notwithstanding the somewhat limited success of recent Iowa governors, the basis for a professionalized public service was established during these years.

DATA COLLECTION

This study is based on data from the Iowa Public Employee Attitude Survey conducted in March and April, 1983. The survey questionnaire was. administered to a random sample of state employees drawn from the Capitol Complex Directory, It includes employees in an areas of state government and at all levels from maintenance and clerical employees to division directors. Of the 561 employees surveyed, 340 .responded to the two mailings (a 61 percent response rate)," The State of Iowa experiences a turnover rate of roughly 12 percent, and correspondingly, a response rate of 67 percent was obtained for deliverable questionnaires,

The survey questionnaire used in this study contained a broad range of items drawn from those used in the 1979 Federal Employees Attitude Survey (1980). The questions address such issues as organizational effectiveness and role elarity, extrinsic and intrinsic motivation, reasons for seeking public employment, job satisfaction, and

performance appraisal, .

This paper focusesprimarily upon the organizational area in which are found a score of items addressing such factors as organizational effectiveness, job challenge,

132 Public Personnel Management Vol. 15, No.2 '(Summer 1986)

meaning and importance attached to the job, work effort, role clarity, supervisory work facilitation and goal setting, and the sense of freedom attached to job performance.

While the State onawa provides the setting for this study, its usefulness transcends this unique, state-specific condition. First, as a case study these results can be used in conjunction with those from other states and from. the federal government to provide a description of administrative behavior. Second, Iowa is a state with a more mature administrative structure where these participativelMBO approaches have, in fact, been in place for a number of years .. This should lend itself to a more appropriate test of their effect. Any "Hawthorne effect" on attitudes should, by now, have had time to dissipate, in that the newness oftbe administrative structure has surely worn off. In addition, it has been contended that a humanistic approach requires a longer start-up period before its benefits begin to have a major impact (Likert, 1967).

ORGANIZATIONAL SUCCESS

If the effect of humanistic management practices is to be examined it is first necessary to establish the degree to which the organization is perceived to be successful and the degree to which it is perceived to be humanistic. The latter is dealt with in the next section, while organizational success is discussed in the following paragraphs. Basically, organizational success is composed of three factors (1) organizational effectiveness, (2) public responsiveness, and (3.) job satisfaction.

Traditionally, management literature has focused on organizational effectiveness as the sine qua non of the successful organization. In fact this has been the case to such an extent that the two terms have somewhat justifiably become synonymous. However, without detracting from the deserved importance attached to organizational effectiveness, there are other concerns, especially within the public sector, that merit attention .. Responsiveness to the public interest is one of those.

Public responsiveness is a cornerstone for democratic government .and, hence, a central concern in the modern administrative state (Hall Saltzstein, 1984). While it certainly is no substitute for effectiveness, neither is effectiveness an adequate substitute for responsiveness. The relationship between these two concepts is somewhat analogous to that of a steam engine - responsiveness is the governor that regulates the steam of effectiveness. Ultimately, responsiveness regulates the drive for effectiveness so as to assure continued organizational success.

A third concern of organizational success is raised in the humanistic literature with respect to the employee per se. To some (e .. g., Maslow, 1965, 1971), this may indeed be deemed its most important aspect. From this perspective organizations are viewed as existing in order to aid human beings develop, (i.e. to achieve or fulfill their human potential). While this view is controversial and yet to be accorded the legitimacy adhering to effectiveness and responsiveness, human development still remains an important factor deserving attention. The notion of job satisfaction (used as an alternative measure for productivity due to its linkage to absenteeism, turn-

Public Personnel Management Vol. 15, No.2 (Summer 1986) 133

TABLE lA-Ie
Organizational Success (pe.rcentages)
Strongly Strongly
Agree Agree Neutral Disagree Disagree
Table IA: Organizational
Effectiveness
1. Overall, this organiza-
tion is effective in
accomplishing its
objective 20 58 15 6 2
Table IB:. Public
Responsiveness
1. This organization is
responsive to public
interest 2.9 50 16 5
Table Ie: Job Satisfaction
1. In general, I like
working here 35 50 12 3
2. In general, I am
satisfied with my
job 26 50 14 7 3
3. All in all, I am
satisfied with the
work on m~ job 23 49 20 8 1. overs, sick-leave abuse, etc.) can. also serve as a measure of the human development factor.

While it certainly doesn't capture the theoretical richness of the developmental concept, job satisfaction does address the basic premise in that it reflects an individual rather than an organizational focus. Job satisfaction assesses the organization in terms of the individual employee's "happiness .. " As such, it provides a rudimentary indicator for one of humanistic management's expected effects.

The perception of organizational success held by Iowa public employees is examined in Table 1. All in all, it can be said that Iowa public employees perceive the organizations, for which they work as being successful. As Table IA indicates, state administrators have a strong sense that their organizations are effective in accomplishing their objectives. Furthermore, from Table IB we can see that this accompanied by an equally strong belief in their organization's responsiveness to the public interest. Organizationally, these two factors attest to positive perceptions, of success on the part of Iowa public employees.

Finally, the three items tapping individual job satisfaction indicate a relatively

134 Public Personnel' Management Vol. 15, No.2 (Summer 1986)

high level of satisfaction among employees (Table Ie). So, in addition to perceiving the organization as a success qua organization, the claim can also be put forth that it is perceived by public employees as an individual success as well.

All three factors - effectiveness, responsiveness, and job satisfaction - register as successful among Iowa public employees. While this is not to say that everything's all right in Iowa, it does, nevertheless, indicate that quite a favorable situation is perceived to be present.

HUMANISTIC MANAGEMENT

While the previous section addressed the question of organizational success, this, in turn, focuses on the extent to which it can be claimed that humanistic management is practiced among Iowa public agencies. Clearly, the concept of humanistic management is far too complex for it to be justly dealt with through a handful of variables .. Yet, that is all that can be offered here. Limited as it may be, this approach hopefully can add to our understanding of humanistic management.

Humanistic management is addressed through an examination of job and work environment factors. These are derived from a four-fold classification scheme offered by Porter and Miles (1974) with respect to factors affecting motivation. In this paper the influences of individual and external environmental characteristics are ignored .. To some extent both of these categories represent factors beyond the control of the organization. Individual characteristics attempt to answer the questions of why an individual prefers public service over private employment and what are the publicprivate differences vis-a-vis motivation. The external environment characteristics encompass socio-normative, political, demographic, economic, and technological changes (Perry and Porter, 1982).

The distinction between job and work environment characteristics is somewhat arbitrary. Job characteristics are factors which primarily pertain to the job itself. They relate to the way in which employees perceive the duties and tasks that comprise their jobs. Work environment characteristics, on the other hand, attempt to gather together those factors which are perceived to assist or hinder the employee in the accomplishment of the prescribed tasks. They focus on the nexus which links the employee to the organization. Much of Buchanan's work (1974a, 1974b, 1975a, 1975b) relates to these two categories ..

Job characteristics are assessed through measures of job challenge, role clarity, and performance appraisal fairness. Basically, these items pertain to attitudes to the job itself. They tend to represent an internal perspective. The motivational literature places emphasis upon the sense of challenge offered by a job in meeting an individual's needs, especially in the areas of esteem and recognition. Work is a very important factor in developing the human potential. People need and like jobs which make use of their knowledge, skills, and abilities.

Role clarity is another aspect affecting motivation. It focuses on the boundary question (i.e., it defines the job). Role clarity taps the employees' sense of knowing what to do and what is expected of them .. It addresses the degree to which jobs are

Public Personnel Management Vol. 15, No.2 (Summer 1986) 135

perceived as vague or uncertain, a condition which can dissipate energy which would otherwise be available for productive efforts.

The measurability ofperforrnance is a third factor seen to pertain to the job itself.

This is especially important due to the growing concern among public authorities for productivity improvement and performance reward systems (bonuses, merit pay plans, etc.), If individual (and group) performance is to be rewarded, it first must be objectively measured." In addition to the important condition of being objective, a performance appraisal system must also be perceived as such, (i.e., it must be viewed as fair).

Work environment characteristics are examined through measures of personal significance, supervisory relationship, and employee freedom. These items pertain to attitudes regarding the effect of external, but still within-organizational, factors on the employees' ability to do their jobs. These factors are closely related to, and to a great extent overlap with, those categorized as job characteristics .. Personal significance clearly has an intrinsic dimension (and, as such, could just as easily be included as a job characteristic), but it also pertains to how employees view their jobs in relationship to the organization and society. These items assess the sense of meaning and importance employees attach to th.eir jobs. They also question the extent to which they view their work as accomplishing something worthwhile. These are all measures which compare the job with an external environment.

Supervisory relationship is a somewhat more specific application of this, as well as to some extent, overlapping with the notion of role clarity. These two items focus on the supervisory role in the facilitation of work and the setting of goals. Within a participatory management framework (or for that matter, even within a more "authoritarian" management style) one should expect to find high levels of agreement with (but not necessarily approval of) these items if the organization is successfu1.

Employee freedom, while again meshed with intrinsic, job characteristic aspects is used here as an assessment of James Thompson's (1967) organizational levels of responsibility. From the employee's perspective, these items address the extent to which employees see themselves as participating in technical, managerial, and institutional decisions with regard to their jobs. As such, they also attest to the perception of participatory management vis-a-vis various decision-making levels.

The job characteristics of Iowa public employees are displayed in Table II. It is quite clear that the vast majority of employees derive a sense of purpose from their jobs .. They see them as both challenging and making good use of their knowledge, skills, and abilities. They also appear to have clear perceptions as to what is expected of them,

With respect to the fairness of the performance appraisal process (Table lIe), the perception, although still generally positive, gives more concern for doubt. While the appraisal is perceived to include the major responsibilities whose performance each employee is charged with, it is questioned as to how accurately these are rated .. While the "positive" responses on this item far exceed the "negative," the latter do, however, form a significant enough proportion of the responses to cause concern.

Work environment characteristics are exhibited in Table III. An overwhelming

136 Public; Personnel Management Vol. 15, No.2 (Summer 1966)

TABLE IIA-IIC
Job Characteristics (Percentages)
Strongly Strongly
Agree Agree Neutral Disagree Disagree
Table IIA: Job Chall.enge
t. My job is
challenging 33 41 15 8 2
2. My job makes
good use of
my abilities 21 45 15 14 5
Table liB: Role Clarity
1- Most of the time
I know what I have
to do on my job 47 46 4 2 2
2. On my job I know
exactly what is
expected of me 24 45 17 8 5
Table IIC: Performance
Appraisal Fairness
1. My performance
appraisal takes
into account the
most important
parts of my job 18 46 22 11 4
2. My performance
rating presents
a fair and accurate
picture of my
actual job
~erformance 8 38 27 17 9 majority of Iowa public employees obtain a sense of personal significance from their work. They find it quite meaningful and feel that their efforts contribute to the accomplishment of something worthwhile.

The supervisory relationship also tends to elicit substantial agreement as to rule in the facilitation of work. However, while supervisors are seen as clearly defining job duties, there is again some doubt expressed with regard to the more specific task of goal-setting. Goal-setting is, of course, an important and effective component in modern management (Locke, 1968, 1980; Latham and Yukl, 1975). It has shown in itself the ability to enhance productivity, let alone its effect when used in conjunction with performance rewards .. Even so, there is substantial agreement among Iowapublie employees that significant supervisory goal-setting occurs.

Public Petsonnel Management Vol. 15, No.2 (Summer 19136) 137

TABtE mA-mc

Work Environment Characteristtcs (Percentages)

Strong.ly Agree

Neutral

Disagree

Strongly DI.sagree

Table IliA: Personal Significance

1. The work I do

on my job is meaningful to me

2. Doing my job well gives me a feelingl that

.I'v·e accomplished something worthwhile

3. The things I do on

my job are important tame ..

Table IIIB: Supervisory Relat'ionsh ip

1. My job duties are clearly defined by my supervisor.

2. My supervisor sets

clear gO'alsfor me

in my present job, Table rue: Employee Free, dam

1. My job gives me the opportuntty to. use my own judgment and ini· tiative (techntcai)

2. I have a great deal of say over what has to be done on my job Gob manag.ement).

3. I have a great deal of say over decisions concerning my job (institutional).

36

46

13

4

1

7

8

3

5

8

46

41

41

45

23

44

15

32

39

27

36

18

28

138 Public Personnel Management Vol. 15, NO.2 (Summer 1986)

8

4

9

4

14

13

2.6

1'9

12

7

18

15

25

22

Employee freedom registers the degree of participation felt to be present, as the employee ascends the hierarchy of organizational levels of responsibility from the technical through the managerial to the institutional. As is evident (and as one would expect), employees sense a great deal of control over the technical aspects of their work and, somewhat surprisingly, also over managerial-level questions of what is to be done. Even the institutional level of responsibility sees substantial participative response.

AU in all, the preponderance of opinion is in the humanistic direction. The perception among most Iowa public employees is one of substantial participation. Both job and work environment characteristic measures are generally positive. Jobs are seen as challenging and worthwhile .. Workers have a relatively clear understanding of what is expected of them and a great sense of control over the decisions that most affect their jobs.

HUMANISTIC MANAGEMENT AND ORGANIZATIONAL SUCCESS

While the attitudinal evidence tends to support the notion that Iowa public employees, more or less, view their organizations to be successful and as attempting to practice humanistic management, it remains to be seen whether these two phenomena are also viewed as related to one another. While a casual relationship cannot be claimed, Table IV displays the correlations (using Tau.) between the measures of organizational success and the job and work environment characteristics."

All relationships were found to be statistically significant and positive (i.e. increasing levels of agreement with regard to humanistic practices were associated with increasing levels of agreement as to organizational success). Furthermore, the Taub's are generally of moderate strength (c .. 30). Therefore, it is correct to assert that employee attitudes towards an organization's effectiveness, responsiveness to the public, and their own job satisfaction are related to the more instrumental attitudes which they hold in regard to job and work environment characteristics.

Job and work environment characteristics appear to be equal in their explanatory power with regard to the measures of organizational success in that neither set of measures appears to offer any distinctive advantage over the other. Given the previously cited "arbitrary" nature of these classifications and the degree of overlap obviously present, this is hardly surprising .. The purpose ofthese classifications seems to be more in the order of providing theoretical clarity than of practical application.

Job Gob challenge, role clarity, and performance appraisal fairness) and work environment (personal significance, supervisory relationship, and employee freedom) characteristics all appear to have an impact on organizational success. This relationship appears to be stronger with regard to job satisfaction than to organizational effectiveness or public responsiveness .. However, a moderately strong relationship can still be claimed even for these latter two factors.

CONCLUSION

While attitudinal research can provide meaningful insights, one must also be aware

Public Personnel Management Vol. 15, No.2 (Summer 1.986) 139

TABLE IV

Humanistic Management and Organizational Success (Taup)

Job Organi:zational Public Job Satisfaction
Characteristics Effectiveness Res[!onsiveness (1 } (2} {3)
Job (1 ) .28 .26 .35 .47 .42
Challenge (2) .40 .28 .45 .59 .56
Hole (1 ) .34 .28 .38 .43 .41
Clarity (2) .38 .31 .39 .39 .42
Performance (1 ) .33 .31 .28 .40 .36
Appraisal (2) .26 .25 .24 .32 .35
Work Environment
Characteristics
Personal (1 ) .33 .32 .43 .54 .52
Significance (2) .26 .19 ,41 .46 .44
(3) .29 .28 .40 .47 .47
Supervisory (1 ) .35 .30 .35 ,41 .33
Relationship (2) .29 .29 .31 .42 .31
Employee (1 ) .24 .24 .36 .45 .47
Freedom (2) .20 .28 .35 .38 .42
(3) .26 .29 .29 .38 .48
P -s .001 for all correlations that it can lead one astray. A process of cognitive dissonance (or false consciousness) distorting reality can readily affect the perceptions and attitudes of anyone,. including public employees. Since humanistic management is so much in vogue among both managers and employees, it is always possible that some "wishful thinking" is refleeted in the responses presented in the questionnaires. While independent measures (which are also subject to error) certainly would have helped to alleviate this, they could have not entirely eliminated it.

While a claim for the successful practice of humanistic management can be put forth, it remains a moderate claim at best. Although employee attitudes play an important part in, and are important measures of, a humanistic management style, they are not necessary and sufficient conditions in themselves. This paper does not focus on independent measures of organizational effectiveness or public responsiveness nor does it address any of the other factors which influence the practice of management which would be required in order to support a stronger claim. Even so the importance attached to employee attitudes and perceptions should not be denied. While the claim is perhaps relatively moderate, nevertheless there is support for the

140 Public Personnel Management Vol. 15, No.2 (Summer 1!)86)

contention that job and work environment characteristics are related to perceptions of organizational success. Inasmuch as such employeet'morale" is an important, ingredient in the actual success of an organization, these findings demonstrate the instrumental significance of humanistic management practices.

NOTES

I This research was partially funded by the Iowa State University Research Foundation.

~ A fuller treatment of humanistic management would require both longitudinal measures of attitudinal change and independent assessments of performance.

a Both mailings included copies of the surveyand a business-reply return envelope. An intermediate postcard reminder was accidentally "shelved" by a postal clerk in the Capitol Complex mailroom.

4 The State of Iowa uses an MBOlPerforrnance Standards approach to performance appraisal which can be considered objective.

5 Upward distortion due to skewed marginals precludes the use of the gamma statistic.

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Blanchard, K., and 8. .. Johnson (1982) The One Minute Manager. New York: William Morrow. Buchanan, B., II. (1974a) "Building Organizational Commitment: The Socialization of Managers

in Work Organizations." Administrative Science Quarterly 19: 533-546.

_____ (l974b) "Government Managers, Business Executives, and Organizational Commitment." Public Administration Review 344 (July/August): 339-347.

_____ )1075a) "Red Tape and the Service Ethic: Some Unexpected Differences Between Public and Private Managers." Administration and Society 6,4 (February): 423-438. _____ (1975b) "To Walk an Extra Mile: The Whats, Whens, and Whys of Organizational

Commitment." Organizational Dynamics 4: 67-80.

Drucker, P. (1954) The Practice of Management. New York: Harper and Row.

_____ (1974) Management: Tasks, Responsibilities, Practices .. New York: Harper and Row. Gibson, F .. , and C. Teasley (1973) "The Humanistic Model of Organizational Motivation: A Review

of Research Support." Public Administration Review 33.1 (JanuaryfFebI'l\ary): 89-96.

Greiner, J .. H. Hatry, M. Koss, A. Millar, and J. Woodard (1981) Productivity and Motivation.

Washington, DC: The Urban Institute.

Hall Saltzstein, G. (1984) "Conceptualizing Bureaucratic Responsiveness: Problems and Prospects."

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Herzberg, F., B. Mauser, and B. Snyderman (1959) The Motivation to Work. New York: John Wiley

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Herzberg, F. (1966) Work and the Nature of Man. Cleveland, OH: World Publishing. Likert, R. (1961) New Patterns of Management. New York: McGraw-Hill.

_____ (1967) The Human: Organization: Its Ma.nagem.Jmt and Value. New York: McGrawHill.

Locke, E. (1968) "Toward a Theory of Task Motivation and Incentives." Orga.nizational Behavior and Human Performance 3: 157-189.

Locke, E., D. Feren, V. McOaleb> K. Shaw, and A. Denny (1980) "The Relative Effectiveness of Four Methods of Motivating Employee Performance.'; in K. D. Duncan, M. M. Gruneberg, and D. Wallis, eds. Changes in Working Life. London: Wiley, Ltd., pp. 363-383.

Latham, G. and G. YukI (1975) "A Review of Researoh on the Application of Goal Setting in Organizations." Academy of Management Journal 18,4 (December: 824--845).

Publici: Personnel Management· Vol. 15, No.2 (Summer 1986) 141

Maslow, A. (1954) Motivation and Personality. New York: Harper and Row. _____ (1965) Eupsychian: Management: A Journal. Homewood.Tl.; Dorsey Press. _____ (1970) The Farther Reaches of Human Nature. New York: Viking Press. McGregor, D. (1960) The Human Side of Enterprise. New York: McGraw-Hill.

Ouchi, W. (1981) Theory Z. New York: Addison-Wesley.

Pascale, R., and A. Athas (1981) The A,rt of Japanese Management. New York: Simon and Schuster. Perry, J., and L. Porter (1982) "Factors Meeting the Context for Motivation in Public Organiza-

tions." Academy of Management Review 7,1 (January):89-98.

Peters, T., and R. W,atertnan (1982) In Search of Excellence. New York: Harper and Row.

Porter, L., and R. Miles (1974) "Motivation and Management." inJ.W. McGuire, ed. Contemporary Management: Issues and. Viewpoints. Englewood Cliffs, NJ: Prentice-Hal1,pp. 545-570.

Thompson, J. (1967) Organizations in Action. New York: McGraw-Hill.

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