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You have been asked to provide some element of rationale why some companies using a human relations strategy sometimes attempt to change to a more classical framework. which statement would best describe the most important issue associated with your explanation?

a. companies fail to react fast enough to changes in the environment.
b. it is simply very hard on management to pursue a human relations strategy.
c. there is pressure from owners to increase profitability.
d. greater worker mobility makes a human relations strategy obsolete.

1 Answer

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Final answer:

The most important issue for some companies transitioning from human relations to a classical management framework is the pressure from owners to increase profitability, aligning with the principles of Theory X management focused on cost efficiency.

Step-by-step explanation:

The question involves understanding why some companies, based on human relations strategies, attempt to shift towards a more classical management framework. Among the options given, c. there is pressure from owners to increase profitability, best describes the most important issue associated with the transition from human relations to classical approach. Human relations strategies focus on employee well-being, which may sometimes conflict with the imperative to maximize profits. The Theory X approach of classical management assumes that employees are inherently unmotivated and require close supervision, which can be appealing to owners focused on tight control and cost efficiency.

In a market-oriented economy, managers are expected to act in the best interests of the shareholders, with the principal obligation being to increase shareholder wealth. Stakeholder theory, however, suggests a balance of the interests of all stakeholders, which includes the consideration of employee welfare inherent in human relations strategies. Nonetheless, the element of profitability can tip the balance toward a classical approach if shareholders demand it. The ability to quickly react to changes in the environment and the quest for higher margins often drive firms to reconsider their strategy.

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