Elton Mayo
· Studies on industrial psychology are profound
· One of the pioneers of Human Relations Approach
· His work laid foundations for later works in highlighting the importance of “communications between the workers and the management”.
Influence: Psychologists Pierre Janet and Sigmund Freud
Major Contribution: Clinical Approach – focussing on physiological, psychological and economic aspects
Textile Mill, Experiment @ Philadelphia:
· Mill was considered as model organisation
· High employee/labour turnover in the mule-spinning dept.
Ø Single employee – 10 to 14 machines
Ø No communication between labourers – high noise
Ø Fatigued employees could not enjoy their social evenings after work
Mayo studied the physical, social and psychological angles
Rest periods given – symptoms of melancholy disappeared
New bonus scheme - Productivity increased
Labour turnover plummeted
Social interaction was encouraged - morale improved
Implications on Management Field:
Challenged the assumptions of “Rabble Hypothesis” (which assumes ‘mankind as a horde of unorganised individuals actuated by self- interest’)
Summary of TEXTILE MILL EXPERIMENT:
Ø Spinning produces postural fatigue and induces pessimistic reverie
Ø Rest pauses relieve postural fatigue and enhance productivity
Ø Rest pauses are effective when they are regular
Ø Life of worker outside the mill has been enriched (able to enjoy their social evenings)
“Monotony per se is not the problem but repetitive work done under conditions of isolation lead to abnormal preoccupations”.
Hawthorne Studies: the Great Illumination Experiment (1924-27)
Western Electricity Company, Chicago
National Research Council of National Academy of Science
Objective: to identify precisely the relationship between illumination and the efficiency of the worker
Factors tested: result - high rise in output (mission failure – original intention of finding ‘best illumination’)
Ø Illumination
Ø Room temperature
Ø Humidity
Ø Wage payments
Ø Rest periods
Ø Duration of working hours
Ø Refreshments
Supposed reasons for such behaviour:
Ø Interest shown by the research team in the workers
Ø Wage incentive plan that was retained while other privileges are taken off
Certain hypotheses of the experiment were negated – reasons
1. Material conditions boosted – even after withdrawal productivity increased
2. Rest periods removed fatigue, hence higher productivity – output increased even after withdrawal of privileges
3. Monotony was reduced, so boost in output – it is concerned with state of mind and not with working conditions
4. Individual payment system boosted the output – the groups subjected to changes in wage payments, no change. Concluded that something else that led to greater output
5. Changes in supervisory techniques improved attitudes and output – supervisors were not considered as boss, congenial and friendly relationship thrived among the workers and the supervisors
Conclusions:
Ø Mayo and his team re-discovered Robert Owen, who had advocated more attention to workers against machines
Ø Mayo felt that work satisfaction depends to a large extent on the informal social pattern of the group
o Supervisors’ personal interest in workers yield better results – helps in boosting the morale
· Workers should be given opportunity to “let their steam off” about their needs etc.
“The link between supervision, morale and productivity became the foundation stone of the human relation movement”
These experiments were hailed as the Great Illumination because it had thrown light on the new areas of industrial relations.
Human Attitudes and sentiments (1928-31):
· An opportunity for workers to “let their steam off” can make them feel better even though there may not be material change in the environment.
Findings:
· Workers with the act of collecting info felt elated and had equal status with management.
· Change in the attitude of supervisors as they were closely observed by the researchers
· In the absence of proper appreciation of the feelings and sentiments of the workers it was difficult to understand their real problems
Social Organisation (1931-32): the final phase – Bank Wiring Experiment (focussed on group behaviour in a work situation)
Wages paid on the basis of group performance
Findings:
· Social structure and informal pressures will set right the erring members.
· Groups follow a set of code of conduct to maintain the groups’ solidarity
For e.g.: works too much – rate buster
Works lesser – chesler
Whistle blowers – squealer
Acts officious – inspector
· The logic of efficiency did not go well with the “logic of sentiments” which had become the cornerstone of ‘social system’.
Conclusions:
· Human aspects of the organisation should not be neglected for technical and economic aspects
· In addition to the technical skills, the management should handle human situations, motivate, lead and communicate with workers
· The concept of authority should be based on social skills in securing cooperation rather than expertise.
Significance of Hawthorne Studies:
· Discovering the informal organisation
· Led to
o Realisation and understanding of human factor in work situations
o Importance of adequate communication system, particularly upwards from workers to management
Criticism:
Criticised for not understanding the role of unions in free society
For being anti-union and pro-management
Branded the Hawthorne Researchers as “cow sociologists”
Sweeping conclusions were drawn from a relatively few studies
Carey pointed - Unreliable sample of five or six
o Lack of scientific base
Drucker – lack of awareness of economic dimension
Encouraging workers private lives by employers
No place for conflicts (Daniel Sell mentioned that tensions and conflicts are inevitable in every human situation.
Critics argued that the team displayed a total lack of awareness of larger social and technological systems.
Spiritual father of the social system school
‘The Functions of the Executive’ – classic
Organisation as a System of Human Cooperation:
Barnard defines organisation as a system of consciously coordinated activities.
A system in which the whole is always greater than the sum of its parts and each part is related to the other in a significant way.
Willingness of certain people
To contribute to the organisation
Through communication with each other.
Why an individual should contribute?
o Theory of Contribution – Satisfaction Equilibrium
Proposed inducements – specific and general
· Specific – material inducements
Personal non-material opportunities
Desirable physical working conditions of work
Ideal benefactions like pride of workmanship
· General – associational attractiveness
Adoption of working conditions
Opportunity for the feeling of enlarged participation
Economic incentives are ineffective beyond subsistence levels.
Formal and Informal organisations:
Organisation comes into existence only when there are persons (3 elements in formal organisations)
able to communicate with each other
willing to contribute action
to accomplish a common purpose
Communication is a dynamic process, which translates purpose into action.
Four characteristics of formal organisations:
· Systems
· Depersonalization
· Specialization
· Informal organisations
According to Chester, formal organisations create informal organisations as a means of communication and to protect the individuals from the domination of the formal organisation.
Theory of Authority:
Did not accept the traditional concept
Viewed “acceptance” as the basis of authority
The individuals in the organisation accept authority only when the following four conditions obtain simultaneously:
1. When the communication is understood (intelligible)
2. Consistency with the organisational purpose
3. Compatibility with personal interest
4. Physical and mental ability to comply (not beyond capacity)
How to ensure enduring cooperation from an individual in an organisation? :
Depends on three conditions –
1. When the orders issued are in accordance with the four conditions mentioned above
2. When the orders fall within the “Zone of Indifference” (ZoI).
3. When the group influences the individual resulting in the stability of the ZoI.
Zone of Indifference:
Orders in order of their acceptability fall in 3 categories:
· Those, clearly unacceptable and not obeyed
· Those , on neutral line
· Those, unquestioningly accepted (ZoI)
The ZoI depends on 3 factors –
· Inducements offered
· Burdens and
· Sacrifices made by the individual in the organisation
Fictional Authority:
C Barnard called authority as ‘fictional’. The supervisor assumes that subordinate accepts orders because they want to avoid making issue of such orders and avoid personal subservience or loss of personal status with their colleagues.
Authority 2 types:
Authority of Position
Leadership (due to knowledge and understanding)
CB felt that authority depends on the personal attitudes of the individuals and the system of communication in the organisation.
Responsibility:
He examines the responsibility from the view of morality
Decision Making:
Decisions – personal, (less logical)
Organisational (info based, logical and delegable)
Fear of criticism and tendency not to delegate divisional powers results in executives being burdened with decision making.
The Executive Function:
- Specialized work of maintaining the organisation in operation.
Classification of functions of executive:
1. Formulation of purpose and objectives
a. Formulation and redefining of purpose requires sensitive systems of communication, imagination, experience and interpretation.
2. Maintenance of organisational communication
a. Informal organisations perform means of organisational communication – advantages
i. Communicate unintelligible facts and opinions, suggestions and suspicions that cannot formally pass through the formal channels
ii. Minimise political influence
iii. Promote self-discipline of the group
iv. Makes personal influences possible in the organisation.
3. Securing essential services from individuals
a. Incentives, sanctions, supervision, control, education and training help in attaining services
Leadership:
CB says leadership in organisations is critical to achieve ‘cooperation’
Leader should be realist and should be able to recognise the need for action even when outcomes are not foreseen.
Essential qualities of a Leader:
Ø Vitality and Endurance
Ø Decisiveness
Ø Persuasiveness
Ø Responsibility
Ø Intellectual capacity
CB’s acceptance concept of authority, leadership as a process of fulfilling the purposes of organisation and management by consent have an immense contemporary value and strengthen the democratic spirit in the modern world…
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