As the global business landscape continues to evolve, organisations are faced with the challenge of adopting management practices that balance profitability with social responsibility and human well-being. In Zimbabwe, where the economy has faced significant challenges in recent years, it is more important than ever for organisations to adopt a management approach that prioritises the common good.
This article introduces the concept of humanistic management, a paradigm shift that prioritises human dignity, well-being, and social responsibility alongside financial performance. Drawing from the insights of Professor Michael Pirson and the International Humanistic Management Association, I will explore how this paradigm can be practically applied within the Zimbabwean context.
The economistic perspective
Traditionally, organisations have been viewed through an economistic lens, prioritising shareholder value maximisation and profit above all else. This perspective assumes that individuals are driven solely by self-interest and that organisations exist to maximise utility. However, this approach has several limitations.
The economistic perspective assumes a narrow definition of human nature, ignoring other drives such as bonding, comprehending, and defending. It also fails to account for externalities such as environmental degradation and social inequality, and ignores intrinsic values such as dignity and well-being. Furthermore, the economistic perspective prioritises profit over human well-being, leading to exploitation and burnout.
The humanistic perspective
In contrast, the humanistic perspective views organizations as communities that prioritise social relationships, collaboration, and the well-being of all stakeholders. This approach recognises that humans have multiple drives beyond self-interest, including the need for bonding, comprehending, and defending. Humanistic organisations involve stakeholders in decision-making processes, balance multiple objectives and interests, and prioritise the common good and human well-being.
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The shift towards humanistic management is driven by several global trends. Modern employees, particularly younger generations, prioritise meaningful work, personal development, and ethical corporate behaviour. Companies that fail to adapt to these expectations risk losing talent and facing reputational damage. Stakeholders, including customers, investors, and NGOs, increasingly demand responsible business practices. The rise of social media has amplified their voices, making it essential for businesses to adopt more inclusive and sustainable practices.
Issues such as climate change, resource depletion, and social inequality require a holistic approach to management. Humanistic management, with its emphasis on long-term sustainability and stakeholder engagement, offers a viable solution. Technology enables greater transparency, connectivity, and access to information, empowering stakeholders to hold organisations accountable. This necessitates a shift towards more responsible and human-centric business practices.
Salient features
According to the International Humanistic Management Association, humanistic management advocates for a 'paradigm shift away from economistic views on market activities towards a humanistic approach' that respects the dignity of all people, integrates ethical considerations into business decisions, and seeks normative legitimacy through stakeholder dialogue’ and presents a ‘21st century theory for more effective organisational practices by integrating the practice of human dignity and well-being into core management systems.’.
According to Pirson, humanistic management is characterised by several key features. Firstly, humanistic organisations prioritise human dignity and well-being, recognising that humans have inherent value beyond their economic output.
Secondly, humanistic organisations balance multiple objectives and interests, recognising that stakeholders have different needs and priorities. Thirdly, humanistic organisations involve stakeholders in decision-making processes, recognising that stakeholders have a right to participate in decisions that affect them.
Fourthly, humanistic organisations prioritise social responsibility and the common good, recognising that organisations have a responsibility to contribute to the well-being of society.
Finally, humanistic organisations recognise the four drives of human nature (acquisition, bonding, comprehending, and defending), and seek to support these drives in their stakeholders.
Practical applications in Zimbabwe
Zimbabwean organisations operate in a unique socio-economic landscape characterised by political instability, economic challenges, and a rich cultural heritage.
Humanistic management offers a framework that aligns with the country's needs for inclusive growth, ethical leadership, and community engagement. So, what does humanistic management look like in practice in Zimbabwe?
In many sectors, especially mining and agriculture, workers in Zimbabwe often face poor working conditions and low wages.
Adopting humanistic management principles can lead to better workforce practices, ensuring fair treatment and opportunities for advancement, thus improving productivity and loyalty. Companies can play a pivotal role in local community development by investing in education, healthcare, and infrastructure.
Zimbabwe's reliance on natural resources necessitates a balanced approach to environmental management.
Organisations can adopt sustainable practices such as responsible mining, renewable energy projects, and conservation efforts.
The public and private sectors in Zimbabwe have witnessed significant governance challenges. By fostering ethical leadership, organisations can build trust, reduce corruption, and enhance operational transparency.
Zimbabwean organisations can involve stakeholders in decision-making processes through regular town hall meetings, surveys, and feedback mechanisms.
For example, a Zimbabwean bank could engage with local communities to develop financial products that meet their needs. Zimbabwean organisations can also prioritise social responsibility by investing in community development projects, such as education and healthcare initiatives.
For example, a Zimbabwean mining company could invest in local education infrastructure. Furthermore, Zimbabwean organisations can balance multiple objectives by prioritising both financial performance and social responsibility. For example, a Zimbabwean retailer could prioritise both profit margins and employee well-being.
A new approach
Humanistic management offers a new and compelling approach to management in Zimbabwean organisations. By prioritising human dignity, well-being, and social responsibility alongside financial performance, organisations can create a more sustainable and equitable future.
As we continue to navigate the challenges of the Zimbabwean economy, it is more important than ever that we adopt a management approach that prioritises the common good.
In future articles, I will explore the practical applications of humanistic management in Zimbabwean organisations, including leadership, corporate governance, motivation, and employee engagement practices.
Acknowledgement: The article has been enhanced with the assistance of ChatGPT and refined with Grammarly.
- Jongwe is an experienced business consultant with extensive expertise across various industries in Southern Africa, including higher education. — WhatsApp at +27 82 408 3661/ +263 788 016 938 or by e-mail at consultgws@gmail.com
