what does HUMAN RELATION APPROACH THEORY means ?

The Great Depression and economic damage of the 1920s to 1940s lay bare the shortcomings of earlier approaches to management.

During this period, there was a growth of labor unionism and increasing demand for improved work conditions, labor rights and social security

• a focus on human rather than machine
• emerged after 1920s as a reaction to Taylor’s scientific management approach
• focus on human relations rather than the structure of the organization
• through HAWTHRONE experiments— conducted by the prof. Elton Mayo ‘father of the human relations movement’ &his associates at Harvard School of Business at the Western Electric Company’s Hawthrone works near Chicago

ELTON MAYO {psychologist}

born in Australia in 1880.

He studied Psychology and Philosophy at University of Adelaide.

He became a lecturer in Logic, Ethics and Psychology at the University of Queensland in 1911.

 💡 seminal works

Democracy & freedom

Human problem of an industrial civilization

Early Experiment

In 1923, — conducted his first research in a Textile Mill near Philadelphia.

later termed as ‘first inquiry’.

This research site was a highly organized sector. considered to be a model organization.

The environment for workers there was conductive.

Despite this, the general labor turnover in all the departments was estimated to be approximately 5 percent per annum.

Again in the turnover in the mule-spinning department approximated 250 %

Various incentives were provided to the workers to improve the situation, however, without much success.

Elton Mayo and his team studied the multi-spinning department from various directions.

based on his research, he found that workers suffered from fatigue or lack of adequate rest and there was a need to introduce rest periods to them.

The motivating effect of the scheme was tremendous. Mayo’s study was comprehensive.

The Hawthorne Experiment

The Hawthorne Plant of Western Electrical Company at Chicago happened to be one of the progressive firms in the US.

reputed for the better working environment, favorable working hours and various facilities.

but from the early 1920s, the firm was reduced to a moderate level of productivity.

the set of experiments to find out if human relations & interactions affect productivity.

1. The Great Illumination Experiment (1924-27)

OBJECTIVE — TO EXAMINE THE IMPACT OF ILLUMINATION ON THE WORKING CAPACITY OF WORKERS.

two groups of female workers who were engaged in assembling telephone relays were placed in two separate rooms

One was a test room and another was a control room.

Initially, groups were equally illuminated but later on changes in the level of illumination.

Experimental changes were introduced periodically in the test group’s room. Then slowly a change was effected in the working conditions. Its object was to mark the effect of this change on the output.

The research work continued for two years.

RESULT - Production in both groups increased irrespective of the level of illumination.

This made the researchers conclude that other factors rather than illumination influence the level of production. illumination affected only marginally.

the better communication between managers and workers during the experiment and increased attention to the workers’ situation by the research group led to positive results.

• FINDINGS OF MAYO
• the test room girls became a social unit & because of the research team. the unit developed a sense of participation. so, productivity is linked with supervision & morale.

2. Relay Assembly Study (1927-1932)

OBJECTIVE- to find out the impact of socio-psychological factors on productivity.

the researchers set up a relay assembly test room two girls were chosen, and girls were asked to choose more girls as co-workers.

The focus shifted to the assembly line workers who were assembling telephone relays.

new elements introduced- shorter working hours, improved conditions, proper rest periods, friendly supervision, and provision of refreshment.

result- This development caused a considerable amount of redirection in thinking and the result implied that productivity increased not because of positive changes in physical factors.

they came up with 2 hypothesis

1. the individual wage payment incentive had stimulated an increase in the output.
2. the changes in supervisory technique had improved the attitude & output.

productivity & morale were maintained- They developed a feeling of stability and a sense of belongings. Since there was more freedom of work, they developed a sense of responsibility and self-discipline.

3.Human Attitudes and Sentiments (1928-31)

OBJECTIVE- Interviews with large number of workers to know their attitude & sentiments of workers towards management & supervision

It was related to human attitudes and sentiments. For this, they interviewed 21000 workers and asked them to express freely their opinion about the working conditions and the policies of the management.

They asked related to working and living conditions, work environment etc.

These interviews were conducted to boost the morale of the workers.

Result - social relations within organization influenced attitude and behavior.

1. These also created the feeling of equality among the workers.
2. The research team encouraged managers and supervisors to become more responsive to the problems of a working environment.
3. To understand the real problem of the workers it is necessary to appreciate their sentiments and feelings including their personal history and background.

4.The bank wiring observation study (1931-32)

OBJECTIVE- group behavior of workers and determine the effect of informal group on productivity.

A group of 14 workers were observed about their behavior.

They were assigned to do a wiring job which also included the work of soldering and fixing the terminals.

Wages were paid based on the group incentive plan and each group member got his share of the total output of the group.

Result-workers fixed their own productive target which was lower than the target fixed by the management.

They produce only that much so that no workers can be thrown out for underperforming.

**Rate Buster -**too much work should be avoided. If one does so he will be regarded as rate busters.

Chisellers- too little work should be discouraged.

Squealers- some workers reported any mistake about their fellow workers to the supervisor.

This experiment highlighted the fact of infra-group forces in the working of an Organization.

💡 Main findings of Hawthrone experiments

1. social factors output
2. informal organization affects productivity
3. a workplace is a social unit
4. rewards and sanctions
5. supervision
6. communication

criticism of Elton Mayo’s theory

it underestimates the role of incentives

too narrow and small to provide generalization

Alex Carey- The whole research method was defective as they were small in size of sample and improper analysis of data.

Lack of validity -the participants knew they were being observed so they performed better lack of scientific analysis and research.

CHESTER BERNARD

His seminal work The Function of Executive 1938

the main features of Bernard’s theory

1. organization as a cooperative system
2. informal and formal organization
3. Consent Theory of authority
4. Inducement-Contribution balance

Organization as a cooperative society- cooperation is important among the people for the proper working of an organization.

three elements of organization

1.Communication

2 willingness to cooperate

3 common purpose or objective

Formal and Informal Organization: Barnard believed that formal and informal structure complement each other in the proper functioning of the organization.

Consent Theory of authority: According to Barnard ‘consent’ or acceptance should be the basis of authority.

The effectiveness of the authority is determined by the willing participation of the subordinates. He has identified four essential preconditions; intelligibility, conformity to the purpose of the organization, compatibility with personal interests and physical and mental ability to comply with the acceptance of authority.

Inducement-Contribution balance: Bernard sought to bring equilibrium between contribution in an organization in terms of labor and satisfaction level generally calculated in terms of inducements and incentives.

Moral Responsibility: Moral responsibility of executive form the backbone of an organization.

Communication: Success of any cooperative system depends on proper communication network.

The Essence of Human Relations Approach

1. in contrast to other classical theories, views organization in its holistic social perspective emphasizing on the human element in the working of organization.
2. believes that each worker carries with him/ her culture, attitude, belief and way of life. Organization should take proper cognizance of all these socio-cultural factors. The social and psychological factors are responsible for worker’s productivity and job satisfaction.
3. this theory identifies the impact of informal groups on motivation and productivity.
4. it emphazises on sense of belongingness among the workers and need of social solidarity in an organization.
5. discovers a new form of management; participative management, which may reduce the gap between workers and management.

CRITICISM OF HUMAN RELATION THEORY

new perspective in organization theory by acknowledging the importance of workers in their respective socio-cultural.

shortcoming of research methods of Hawthorne survey. It is argued that the sample size at the Hawthorne plant was inadequate. It did not deal with the entire organization.

Carey’s criticism is based on the fact that small groups of ‘cooperative girls’ do not indicate the general pattern. Inadequate samples cannot help us to arrive at acceptable conclusions.

Peter F Drucker is also a critic of this theory.

According to him it does not attach due significance to economic dimensions. The Harvard group neglects the nature of work. It primarily focuses on inter-personal relations.

lack of understanding the role of unions in an

organization.

Mayo and his team substitute human relations oriented supervisors for union representatives. Scholars like Loren Baritz and others criticize the theory as ‘anti-union’ and ‘pro-management’.

Some Marxist critics prefer to call Hawthorne

researchers as ‘cow sociologists’. According to them conflict free organizational

situation is utopian**.**

it draws inspiration mainly from classical theories. It did not go far enough to ensure ultimate contentment and wellbeing of employers.