The Human Factor in Management

Sixteen years ago when I was a graduating student at a local university in my country (Sudan). I was asked to complete my final graduation project in cost of inputs and profitability. I visited my former professor at his new office, where he was appointed as a CEO of a local textile factory – Alhuda Textile. He left his job as a professor of "Organizational Behavior" to try re-opening the factory that was closed down. The main reason for its closing was it wasn't making any profits; in fact, it was losing money and the employees had left.

Dr. Elsir was able in 9 months to re-hire all the former employees and to get the factory achieve 100 percent profits. In 15 months it was the most profitable textile factory in the country. When I visited him, I found him sitting on the carpet, drinking coffee and chatting with the "door keeper."

I told him: "Dr. Elsir, I know that you have rejected a lot of TV interviews and meetings, and probably you hate talking about your achievements, but I was your student and I am trying to get this graduation project done. Tell me, please, how were you able to do what you have done?"

He said the following:
“Mamoun, it was all in the last class I gave you, Organizational Behavior II. I appreciated and rewarded who deserve appreciation and "politely" criticized and corrected those who need to be corrected. Most important, are the words of appreciation for those who do or try to do a good job. I talk to them as my friends and tell them that this company is yours. If it succeeds you will get more rewards and job security; if it doesn't, we will all go home. That's it. I don't have any secret magics or more money to invest. I invested in the ‘Human Factor.’”
When I left him, I decided to change my graduation project title to "The Human Factor in Management.”

Mamoun Zain
ECPI College – March 2005

Ustaz Mamoun,

wooow is great real story, Dr. Elsir from his personal experience showed the firm's professional philosophy is based on the conviction that the human factor is the crucial element in making projects work done and in realising return on investment for the Alhuda Textile beneficiaries and it was very smart decision to change your project to the Human Factor in Management because the human factor is very important part in the organization to make and share their goal.


Anwar Ahmed

Thanks brother Anwar for commenting on this issue.
You are right, The new management theories are now mainly based on realizing the human factors in managing an organization and the importance of the psychological influences of the employees so that the relationship between the managers and the employees is not merely a BOSS - SUBORDNATE relationship. Imagine how much positive psychological effects will be on the “Door Keeper” when Dr. El Sir was sitting with him, chatting for only a few minutes, having a cup of coffee and asking him about his own personal life and how his kids were doing in schools! . Psychologically speaking, I guess this will have more positive impact on him to continue working harder than giving him a few thousands. Money is important but if we only appreciate people for what they do, the words of appreciation is the KEY for the organizational success.

Great Post!
I have been thinking about pursuing an MBA lately, my undergrad field was different, so your post is really relevant to what I have in mind right now.

Quote: If it succeeds you will get more rewards and job security; if it doesn't, we will all go home. That's it. I don't have any secret magics or more money to invest. I invested in the ‘Human Factor.’”

I must say, your professor has a real leadership skills. I think workers would always look up to management for affirmance of positive attitudes toward their role in the organization's success and whether management view their efforts and input within the narrow terms of monetary profitability or rather as real partners in the overall success of the organization.
Your professor's success in recognizing the "Human Factor" led him to the same success Japanese had over the U.S. in the early eighties because they embraced the idea of "ownership" of the workplace by the workers.
I hope all our failing public enterprises would be fed by serious management with real leadership qualities like the one presented by your professor and I'm sure, in no time, they will be able to turn around failure into success.

Thanks Outcast for your valued input. I agree with you that our enterprises (in Sudan) - public or private - need management that deviates a little from the old straight-line traditional management system, which is based on assessing and viewing the employees’ contribution to the organization as “how much they can do” to increase the profits without paying attention to the fact that a nice word of appreciation or an award certificate (which could be just a paper with a few lines of thanks) can have a serious positive impact on “How much they will do” and turn their failure to a success as in the example presented in my post. Thanks again and please try to think about this as a project in your feature MBA.

Good Luck