Professional Documents
Culture Documents
Robert Owen a successful entrepreneur in the early 19th century. He was the one of the earliest
management thinkers to realize the significance of human resources. He believed workers
performance was influenced by the environment in which they worked. He proposed legislative
reform that would limit the number of working hours and restrict the use of child labor. In his
own factory, he introduced a standard working day of 10.5 hours a day and no child labor below
10-year-old. His proposal was opposed by the business partners and were considered radical. He
tried to improve the living conditions of his employees by ensuring basic amenities like better
streets, houses etc.
The proponents of scientific management were of the opinion that people were
rational and were motivated primarily by the desire for material gain. Taylor and
followers overlooked the social needs of the workers and overemphasized their
economic and physical needs
Scientific management theorists also ignored the human desire for job satisfaction.
Since workers are more likely to go on strike over factory like working conditions and
job content rather than salary. The principles of scientific management, which were
based on the ‘rational worker’ model, became increasingly ineffective.
Relay Assembly Test Room Study (1927-1929): Under these test two small groups of
six female telephone relay assemblers were selected. Each group was kept in
separate rooms. From time to time, changes were made in working hours, rest
periods, lunch breaks, etc. They were allowed to choose their own rest periods and to
give suggestions. Output increased in both the control rooms. It was concluded that
social relationship among workers, participation in decision-making, etc. had a
greater effect on productivity than working conditions.
Bank Wiring Observation Room Experiment (1932): A group of 14 male workers in the
bank wiring room were placed under observation for six months. A worker's pay
depended on the performance of the group as a whole. The researchers thought that
the efficient workers would put pressure on the less efficient workers to complete the
work. However, it was found that the group established its own standards of output,
and social pressure was used to achieve the standards of output.
Contingency Theory:
Systems approach emphasizes that all sub- systems of an organization along with the super
system of environment are interconnected and interrelated. Contingency approach analysis
and understands these inter relationship so that managerial actions can be adjusted to
demands of specific situations or circumstances.