Hawthorne Studies (by Elton Mayo)
 Elton Mayo's contributions came as
part of the Hawthorne studies, a
series of experiments that applied
classical management approach only
to reveal its shortcomings.
 Mayo tested the impact of working
conditions (length of rest pause,
length of working days, etc.) on
productivity. No consistent
relationship found.
 Instead, workers reacted more to
the psychological and social
conditions at work such as individual
recognition, and participation in
decision making.
 Employees performed better when
managers treated them positively.
A few years later, a second group of
experiments began. Mayo gave
workers special privileges, such as
the right to leave their workstations
without permission, take rest
periods, enjoy free lunches, and have
variations in pay levels and
workdays. This experiment resulted
in significantly increased rates of
productivity. The general conclusion
from the Hawthorne studies was that
human relations and the social needs
of workers are crucial aspects of
business management.
Maslow’s Theory of Human Needs McGregor’s Theory X & Theory Y
 For Maslow, human behavior is purposeful and is motivated by the
satisfaction of needs. A need is a physiological or psychological The style of management is a function of
deficiency a person feels. the manager’s assumptions about human
nature and behavior.
 Theory X assumes that workers:
 Dislike work
 Lack ambition
 Are irresponsible
 Resist change
 Prefer to be led
 Theory Y assumes that workers :
 Willing to work
 Capable of self control
Abraham Maslow developed one of the most popular theories of
motivation  Willing to accept responsibility
1.Physiological. Hunger, thirst, shelter, sex, and other survival  Imaginative and creative
needs.
 Capable of self-direction
2.Safety. Security, stability, and protection from physical or
emotional harm.
Douglas McGregor believed that two basic kinds of
3.Social. Social interaction, affection, companionship, and managers exist. One type, the Theory X manager,
friendship. has a negative view of employees and assumes
that they are lazy, untrustworthy, and incapable of
4.Esteem. Self-respect, autonomy, achievement, status,
assuming responsibility. On the other hand, the
recognition, and attention.
Theory Y manager assumes that employees are not
5.Self-actualization. a need to find himself, self-fulfillment, and only trustworthy and capable of assuming
achieving one’s potential. responsibility, but also have high levels of
motivation.

Maslow’s Theory of Human Needs
 Needs have a hierarchical structure of importance. A need is not an
effective motivator unless those lower in the hierarchy are
satisfied. A satisfied need is not a motivator.
 Maslow’s ideas suggest that employee motivation is more complex
than was assumed by the scientific management approach, which
focused strictly on pay.
 Maslow assumed that pay can motivate only lower-level needs,
and once those are satisfied it loses its power to shape employee
behavior. Instead, nonmonetary factors such as praise, recognition,
and job characteristics motivate human behavior.
The central principle of Theory X is
direction and control through a centralized
system of organization and the exercise of
authority. Employees must be coerced,
controlled, or threatened to achieve goals.
Since they see people as responsible and
conscientious, managers who follow
Theory Y assume the opposite of theory X.