Evolution of Organizational Behaviour

Industrial Revolution

Scientific Management

Human Relations Movement

Hawthorne Studies/ Experiments

Hawthorne Experiments
 Introduction-
• Experiments were conducted for a period of 7
years.

• It is also referred as the “Observer Effect”

• Individuals modify an aspect of their behavior

in response to their awareness of being
observed.
 Experiments-
• For the first time, an intensive and systematic
analysis of human factor in organisations was
made in the form of Hawthorne experiments.
• The Hawthorne plant of the Western Electric
Company, USA, was manufacturing telephone
system bells.
• It employed about 30,000 employees at the time
of experiments.
• In respect of material benefits to the workers, this
was the most progressive company with pension,
sickness benefits and other recreational facilities.
 Cont..
• There was great deal of dissatisfaction among
the workers and productivity was not up to the
mark.

• In 1924, a team of (4 members) was formed to

investigate the problems of low productivity.

• Led by Elton Mayo{Psychologist}

• Whitehead and Roethlisberger{Sociologists} and

a company representative, William Dickson.
 The team carried out the research in four
phases-
1st Phase-ILLUMINATION or Lighting Experiments-
• Illumination Experiments were undertaken to find
out how varying levels of illumination {amount of
light at the workplace} affected the productivity.
• The assumption was that with higher illumination,
productivity would increase.
• A group of workers were chosen and placed in
two separate groups.
 Cont..
• One group was exposed to varying intensities
of illumination.
• Since this group was subjected to
experimental changes, it was termed as
experimental group.
• Another group, called as control group,
continued to work under constant intensities
of illumination.
• The researchers found that as they increased
the illumination in the experimental group,
both groups increased production.
 Cont..
• When the intensity of lightning was decreased,
the production continued to increase in both
the groups.
• Thus, it was concluded that illumination did not
have any effect on productivity but something
else was interfering with productivity.
• It was concluded that human factor was
important in determining productivity but
which aspect was affecting, it was not sure.
Therefore, another phase of experiments was
undertaken.
 2nd Phase- Relay Assembly Test Room
Experiments-
• The researchers set up a relay assembly test
room and two female employees were chosen.
• These girls were asked to choose four more
female as co-workers.
• The work related to the assembly of telephone
relays.
• Each relay consisted of a number of parts which
girls assembled into finished products.
• Output depended on the speed and continuity
with which girls worked.
 Cont..
• The experiments started with introducing
numerous changes in sequence with duration of
each change ranging from four week to twelve
weeks.
• An observer was associated with female workers to
supervise their work.
• Before each change was introduced, the female
workers were consulted.
• They were given opportunity to express their
viewpoints and concerns to the supervisor.
• In some cases, they were allowed to take decisions
on matters concerning them.
 Changes introduced in the system-

• The incentive system was changed so that each

female's extra pay was based on the other five
rather than output of large group. The productivity
increased.
• 2 to 5 minutes rests- one in the morning session and
other in evening session-were introduced which
were increased to 10 minutes. The productivity
increased.
• The rest period was reduced to 5 minutes but
frequency was increased. The productivity
decreased slightly and the workers complained that
frequent rest intervals affected the rhythm of the
work.
 Cont..
• The number of rest were reduced to 2 of 10 minutes
each, but in the morning, coffee or soup was served
along with sandwich and in the evening, snacks was
provided. The Productivity increased.

• Changes in working hours and workday were

introduced- such as cutting an hour off the end of the
day and eliminating Saturday work.

• The workers were allowed to leave at 4:30pm instead

of 5:00pm and later at 4:00pm. Productivity
increased.
 Changes Resulted in-
• Absenteeism decreased
• Morale increased
• Less supervision was required.
Note- This is all because of positive changes in
the work atmosphere.
Again the researchers decided to revert back to
original position, that is, no rest and other
benefits.
Surprisingly- productivity increased further
instead of going down.
 Cont..
• In the 2nd phase of research it was concluded that
productivity increased not because of positive
changes in physical factors but because of a
change in the workers attitudes towards work
and their work group.
• They developed a feeling of stability and sense of
belongingness.
• Since there was more freedom of work, they
developed a sense of responsibility and self
discipline.
• The relationship between supervisor and workers
became close and friendly.
3rd Phase- Mass Interviewing Programme-

• During the course of experiments, about 20000

interviews were conducted between 1928 and 1930.

• To determine employees attitudes towards

company, supervision, insurance plans, promotion
and wages.

• During the course of interviews, it was discovered

that worker's behaviour was being influenced by
group behaviour.
 4th Phase- Bank Wiring Observation Room
Experiments-

• These experiments were carried out with a view

to analyse the functioning of small group and its
impact on individual behaviour.

• A group of 14 male workers were employed in

the bank wiring room- 9 wiremen, 3 solder men,
and 2 inspectors.

• The work involved attaching wire to switches for

certain equipments used in telephone exchange.
 Cont…
• Hourly wage rate for the personnel was based on
average output of each worker.

• Bonus was to be determined on the basis of

average group output.

• The assumption was that in order to earn more,

workers would produce more and in order to take
the advantages of the group bonus, they would
help each other to produce more.
Cont..
• However, this assumption did not hold valid.

• Workers decided the target for themselves,

which was lower than the company’s target.

• For example, group’s target for a day was

connecting 6600 terminals against 7300
terminals set by the company.
 Workers gave the following reasons for the
restricted output:

• Fear of Unemployment- If there would be

more production per head, some of the
workers would be out of employment.

• Fear of Raising Standards- Once they reached

the standard rate of production, management
would raise the standard of production.
 Cont..
• Protection of slower workers- Since slower
workers were likely to be retrenched, the
faster workers protected them by not
overproducing.
• Satisfaction on the part of management-
According to workers, management seemed to
accept the lower production rate as no one
was being fired for restricted output.
 Conclusion-
• The social and psychological factors are
responsible for workers' productivity and job
satisfaction.
• Only good physical working conditions are not
enough to increase productivity.
• The informal relations among workers influence
the workers' behaviour and performance more
than the formal relations in the organization.
• Employees will perform better if they are
allowed to participate in decision-making
affecting their interests.
 Cont..

• When employees are treated with respect and

dignity, their performance will improve.
• Financial incentives alone cannot increase the
performance.
• Social and Psychological needs must also be
satisfied in order to increase productivity.
• Good communication between the superiors
and subordinates can improve the relations
and the productivity of the subordinates.