IN the contemporary business world, the concepts of human resources management (HRM) and human capital management (HCM) dominate the discourse on how organisations value and manage their workforce.
However, these approaches often reduce individuals to mere resources or assets, instrumentalising them as tools for profit generation rather than recognising their intrinsic worth.
Humanistic management, in contrast, seeks to defend and promote human dignity by positioning humanity as the ultimate end of economic activities. This approach is especially relevant in the Zimbabwean context, where economic and social challenges demand innovative and ethical management practices.
This article critiques the HRM and HCM approaches, arguing for a humanistic management model that upholds the dignity of the individual and prioritises well-being over purely economic outcomes.
HRM, HCM capital management
HRM emerged in the mid-20th century, with its roots in scientific management principles that viewed workers as factors of production to be optimised for maximum efficiency.
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This approach often focuses on administrative tasks, such as recruitment, training, and performance appraisal, with the primary aim of achieving organisational goals. While HRM acknowledges the need for employee development and motivation, its fundamental flaw lies in treating individuals as "resources" to be managed, thus implying a level of disposability.
HCM extends the HRM concept by framing employees as assets that can appreciate or depreciate in value. This approach treats the workforce as a form of capital, much like machinery or financial assets, whose worth can be increased through investment in education and skills development.
While HCM does acknowledge the importance of employee growth, it often prioritises economic gains over human well-being, focusing on the return on investment (ROI) that individuals can provide to the organisation.
Both HRM and HCM approaches risk reducing human beings to mere instruments for achieving corporate goals. In a context like Zimbabwe, where the economy is characterised by high unemployment, low industrial capacity, and an underdeveloped social safety net, the consequences of such instrumentalisation can be severe.
Workers may experience job insecurity, inadequate compensation, and exploitation, which can exacerbate poverty and social inequality.
The alternative
Humanistic management offers a critique and an alternative to the HRM and HCM paradigms.
Its core principle is that the ultimate purpose of economic activity should be to protect human dignity and promote well-being rather than solely to maximise profit.
Humanistic management emphasises the inherent worth of individuals, recognising their capacity for autonomy and self-determination. It argues that business activities should support the flourishing of people, rather than reducing them to objects or mere means to an end.
The concept of dignity in humanistic management is not limited to the avoidance of harm or exploitation. It is a positive affirmation of the right of individuals to define their life's purpose and to participate meaningfully in society.
When applied to the world of work, this means creating an environment in which employees can exercise their autonomy, develop their skills, and contribute to the organisation in ways that align with their values and aspirations.
In Zimbabwe, this approach could transform workplace culture by focusing on employees' holistic well-being. Humanistic management would advocate for fair wages, job security, and opportunities for meaningful engagement, addressing the country's socio-economic challenges by empowering workers rather than treating them as expendable.
Zimbabwean examples
The current socio-economic landscape in Zimbabwe presents unique challenges for both businesses and employees. High unemployment rates have created a buyer's market for labour, allowing some employers to exploit workers' vulnerability.
There are numerous cases where employees are overworked and underpaid, with limited access to social protections. The objectification of workers as "human resources" has resulted in labour practices that undermine dignity and well-being.
In contrast, there are examples of organisations in Zimbabwe that are beginning to embrace elements of humanistic management. For instance, some social enterprises and cooperatives focus on worker empowerment, prioritising fair wages, safe working conditions, and employee participation in decision-making processes.
These organisations see employees not as mere resources but as partners whose insights and well-being contribute to the sustainability of the enterprise. The ethical tea production practices of Tanganda Tea Company, which involve local communities in decision-making and ensure fair compensation for labour, reflect a move towards a more human-centred approach.
The Zimbabwean economy's informal sector, which employs a significant portion of the population, also offers valuable lessons in humanistic management. Many informal businesses operate on principles of mutual aid and community solidarity.
For example, communal farming projects in rural areas involve collective decision-making and shared ownership, contrasting sharply with the hierarchical structures typical in corporate settings.
Such models, while often lacking formal recognition, demonstrate the feasibility of management practices that prioritise human dignity and well-being over profit maximisation.
Challenges, opportunities in Zim
Implementing humanistic management in Zimbabwe presents several challenges, not least of which is the prevailing economic environment. Businesses operate under conditions of economic uncertainty, characterised by inflation, foreign currency shortages, and limited access to credit.
These factors can lead to a short-term focus on survival rather than long-term investment in human-centred management practices. Moreover, the cultural legacy of colonial labour practices, which were exploitative and hierarchical, still influences many organisations' approaches to managing employees.
However, these challenges also present opportunities. The demand for innovative solutions to Zimbabwe's socio-economic problems creates a fertile ground for humanistic management principles to take root.
Humanistic management can be positioned as a means to foster sustainable development by aligning business activities with social goals. Organisations can build resilience by adopting practices that enhance employee well-being, such as flexible working arrangements, continuous professional development, and participatory decision-making.
Educational institutions, especially business schools like the Midlands State University’s Graduate School of Business Leadership, have a significant role to play in mainstreaming humanistic management.
By integrating human-centred principles into their curricula, business schools can cultivate a new generation of leaders who prioritise dignity and well-being. The development of a Zimbabwe Association of Humanistic Management, as previously advocated in this column, could further promote these values by recognising businesses and leaders who embody humanistic principles in their operations.
Reforming HRM and HCM
To align HRM and HCM practices with humanistic management principles, organisations must fundamentally rethink their management frameworks. First, companies need to move beyond seeing employees as mere factors of production or investment.
Instead, they should recognise them as stakeholders with legitimate interests and rights. This shift involves redesigning HR policies to focus not only on productivity but also on the quality of working life.
Second, businesses should adopt practices that promote employee autonomy. This could involve participatory management, where employees are included in strategic discussions and given a voice in shaping the organisation’s direction.
In Zimbabwe, this approach could be beneficial in sectors like agriculture, where workers possess deep knowledge of local conditions that can inform sustainable practices. Third, humanistic management requires a shift in performance evaluation metrics. Instead of focusing solely on quantitative targets, such as sales figures or production volumes, organisations should incorporate qualitative measures that assess well-being, job satisfaction, and personal growth.
For example, in sectors like education and healthcare, employee performance could be evaluated based on the impact they have on students learning experiences or patient outcomes, rather than purely on financial metrics.
Conclusion
The critique of HRM and HCM underscores the limitations of these approaches in valuing the full humanity of employees. In Zimbabwe, where economic hardships have often led to the instrumentalisation of workers, there is an urgent need for a paradigm shift towards humanistic management.
This approach seeks to protect human dignity and promote well-being by recognising the intrinsic worth of individuals and aligning business practices with social goals.
Humanistic management provides a viable framework for addressing some of the country's pressing socio-economic challenges, from unemployment to poverty alleviation. By adopting human-centred management practices, businesses can contribute to the social good while enhancing organisational resilience.
It is time for Zimbabwean companies, educational institutions, and policymakers to embrace humanistic management principles and redefine the purpose of business to prioritise human flourishing.
- Jongwe is an experienced business consultant with extensive expertise across various industries in Southern Africa, including higher education- WhatsApp at +27 824083661/+263 788016938 or by email at consultgws@gmail.com.