BE H A V IO R A L

MA N A GE M E NT T H E OR Y
BEHAVIORAL MANAGEMENT THEORY 
•The behavioral management theory is often called the
human relations movement because it addresses the
human dimension of work. Behavioral theorists believed
that a better understanding of human behavior at work,
such as motivation, conflict, expectations, and group
dynamics, improved productivity.
• In contrast to scientific management, with its focus on optimizing man as a
machine, behavioral management focuses on worker behavior and
motivations. Specifically, behavioral management theory is concerned with
how to manage productivity by understanding worker motivation, including
expectations, needs and interests, and group dynamics. Behavioral
management theory is sometimes referred to as the human relations
movement due to its focus on the human dimension of work. Theorists who
contributed to behavioral management include Mary Parker Follett, Elton
Mayo, and Abraham Maslow.
 The work of Mary Parker Follet
• Although she was a contemporary of Taylor and the Gilbreths, author and advisor
Mary Parker Follett had a very different frame of reference and her ideas form
the basis of our understanding of modern organizational behavior.

• A former social worker, she understood power dynamics and stressed the
importance of human psychology and human relations rather than a mechanical
or scientific approach to work and management-employee interactions.

• In its biography, ThoughtCo. Notes that “Follett was one of the first people to
integrate the idea of organizational conflict into management theory.” and, indeed,
her idea of conflict as a place of opportunity is even more relevant today.
 The work of Mary Parker Follet (Cont.)
• Specifically, Follett proposed that conflict, rather than requiring
compromise, could be a stimulus for innovation. In an essay written in 1924,
Follett coined the terms "power-over" and "power-with," differentiating
between coercive and participative power and demonstrating how “power-
with” can be greater than "power-over."

• Although her work is rarely or only marginally covered, her ideas have
shaped theories in psychology and management, including Abraham
Maslow’s work. For perspective, management consultant Peter Drucker,
whom business week referred to as “the man who invented management”
called Follett the "prophet of management" and his "guru."
• FOLLETT’S THEORY OF MANAGEMENT INCLUDED THE
FOLLOWING PRINCIPLES:

• GENUINE POWER IS NOT “COERCIVE” (POWER OVER) BUT

COACTIVE (POWER WITH)

• TRUE LEADERS CREATE GROUP POWER RATHER THAN

EXPRESSING PERSONAL POWER
Hawthorne studies of Human Relations
• The term “Hawthorne” is a term used within several behavioral
management theories and is originally derived from the western
electric company’s large factory complex named Hawthorne works.
Starting in 1905 and operating until 1983, Hawthorne works had
45,000 employees and it produced a wide variety of consumer
products, including telephone equipment, refrigerators and electric
fans. As a result, Hawthorne works is well-known for its enormous
output of telephone equipment and most importantly for its
industrial experiments and studies carried out.
• In 1927, a group of researchers led by Elton Mayo and Fritz Roethlisberger of the
Harvard business school were invited to join in the studies at the Hawthorne
works of western electric company, Chicago. The experiment lasted up to 1932.

• The Hawthorne experiment brought out that the productivity of the employees is
not the function of only physical conditions of work and money wages paid to
them. Productivity of employees depends heavily upon the satisfaction of the
employees in their work situation.

• Mayo’s idea was that logical factors were far less important than emotional
factors in determining productivity efficiency. Furthermore, of all the human
factors influencing employee behavior, the most powerful were those emanating
from the worker’s participation in social groups.
• Thus, mayo concluded that work arrangements in addition to meeting the objective
requirements of production must at the same time satisfy the employee’s subjective
requirement of social satisfaction at his work place.

The Hawthorne experiment consists of four parts. These parts are briefly

described below:
1.Illumination Experiment.
2.Relay Assembly Test Room Experiment.
3.Interviewing Programme.
4.Bank Wiring Test Room Experiment.
Illumination Experiment
This experiment was conducted to establish relationship
between output and illumination. When the intensity of light
was increased, the output also increased. The output showed
an upward trend even when the illumination was gradually
brought down to the normal level. Therefore, it was concluded
that there is no consistent relationship between output of
workers and illumination in the factory. There must be some
other factor which affected productivity.
RELAY ASSEMBLY TEST ROOM EXPERIMENT:
• This phase aimed at knowing not only the impact of illumination on production but also
other factors like length of the working day, rest hours, and other physical conditions. In
this experiment, a small homogeneous work-group of six girls was constituted. These girls
were friendly to each other and were asked to work in a very informal atmosphere under
the supervision of a researcher. 

• Productivity and morale increased considerably during the period of the experiment.
Productivity went on increasing and stabilized at a high level even when all the
improvements were taken away and the pre-test conditions were reintroduced. The
researchers concluded that socio-psychological factors such as feeling of being important,
recognition, attention, participation, cohesive work-group, and non-directive supervision
held the key for higher productivity.
MASS INTERVIEW PROGRAMME:
• The objective of this programme was to make a systematic study of the employees
attitudes which would reveal the meaning which their “working situation” has for
them. The researchers interviewed a large number of workers with regard to their
opinions on work, working conditions and supervision. Initially, a direct approach
was used whereby interviews asked questions considered important by managers
and researchers. The researchers observed that the replies of the workmen were
guarded. Therefore, this approach was replaced by an indirect technique, where the
interviewer simply listened to what the workmen had to say. The findings
confirmed the importance of social factors at work in the total work environment.
BANK WIRING TEST ROOM EXPERIMENT

• This experiment was conducted by Roethlisberger and Dickson with a

view to develop a new method of observation and obtaining more
exact information about social groups within a company and also
finding out the causes which restrict output. The experiment was
conducted to study a group of workers under conditions which were
as close as possible to normal. This group comprised of 14 workers. 
After the experiment, the production records of this group were compared with their
earlier production records. It was observed that the group evolved its own production
norms for each individual worker, which was made lower than those set by the
management. Because of this, workers would produce only that much, thereby
defeating the incentive system. Those workers who tried to produce more than the
group norms were isolated, harassed or punished by the group. The findings of the
study are:-

•Each individual was restricting output.

•The group had its own “unofficial” standards of performance.
•Individual output remained fairly constant over a period of time.
•Informal groups play an important role in the working of an organization.
THEORY X AND THEORY Y
• In the 1960s, social psychologist Douglas Mcgregor developed two contrasting
theories that explained how managers' beliefs about what motivates their people
can affect their management style. He labelled these theory X and theory Y.
These theories continue to be important even today.

WHAT MOTIVATES YOUR PEOPLE?

• Theory X and theory Y were first explained by Mcgregor in his book, "the human side of
enterprise," and they refer to two styles of management – authoritarian (theory X) and
participative (theory Y).
If you believe that your team members dislike their work and have
little motivation, then, according to McGregor, you'll likely use an
authoritarian style of management. This approach is very "hands-
on" and usually involves micromanaging people's work to ensure
that it gets done properly. McGregor called this Theory X.

On the other hand, if you believe that your people take pride in their
work and see it as a challenge, then you'll more likely adopt a
participative management style. Managers who use this approach
trust their people to take ownership of their work and do it
effectively by themselves. McGregor called this Theory Y.
THEORY X
Theory X managers tend to take a pessimistic view of their
people, and assume that they are naturally unmotivated and
dislike work.
Work in organizations that are managed like this can be
repetitive, and people are often motivated with a "carrot and
stick" approach.
Performance appraisals and remuneration are usually based
on tangible results, such as sales figures or product output,
and are used to control and "keep tabs" on staff.
This style of management assumes that
workers:

•Dislike their work.

•Avoid responsibility and need constant direction.
•Have to be controlled, forced and threatened to
deliver work.
•Need to be supervised at every step.
•Have no incentive to work or ambition, and therefore
need to be enticed by rewards to achieve goals.
• According to Mcgregor, organizations with a theory X approach tend
to have several tiers of managers and supervisors to oversee and
direct workers. Authority is rarely delegated, and control remains
firmly centralized.
• Although theory X management has largely fallen out of fashion in
recent times, big organizations may find that adopting it is
unavoidable due to the sheer number of people that they employ and
the tight deadlines that they have to meet.
• Theory Y organizations also give employees frequent opportunities for
promotion.
THEORY Y
Theory Y managers have an optimistic opinion of their people,
and they use a decentralized, participative management style.
This encourages a more collaborative, trust-based relationship
between managers and their team members.

People have greater responsibility, and managers encourage

them to develop their skills and suggest improvements.
Appraisals are regular but, unlike in Theory X organizations,
they are used to encourage open communication rather than to
control staff.
This style of management assumes that workers are:
•Happy to work on their own initiative.
•More involved in decision making.
•Self-motivated to complete their tasks.
•Enjoy taking ownership of their work.
•Seek and accept responsibility, and need little direction.
•View work as fulfilling and challenging.
•Solve problems creatively and imaginatively.

Theory Y has become more popular among organizations. This reflects workers'
increasing desire for more meaningful careers that provide them with more than just
money.
When to Use Theory X and Theory Y

• Most managers will likely use a mixture of Theory X and

Theory Y. You may, however, find that you naturally favor
one over the other. You might, for instance, have a tendency
to micromanage or, conversely, you may prefer to take a
more hands-off approach.
• Although both styles of management can motivate people,
the success of each will largely depend on your team's needs
and wants and your organizational objectives.
• You may use a Theory X style of management for new starters who will likely need
a lot of guidance, or in a situation that requires you to take control such as a CRISIS.

• But you wouldn't use it when managing a team of EXPERTS, who are used to
working under their own initiative, and need little direction. If you did, it would
likely have a demotivating effect and may even damage your relationship.

• Circumstance can also affect your management style. Theory X, for instance, is
generally more prevalent in larger organizations, or in teams where work can be
repetitive and target-driven.
• In these cases, people are unlikely to find reward or fulfillment in their work, so a
"carrot and stick" approach will tend to be more successful in motivating them
than a Theory Y approach.

• In contrast, Theory Y tends to be favored by organizations that have a flatter

structure, and where people at the lower levels are involved in decision making and
have some responsibility.
The Disadvantages of Theory X and Theory Y
• However, both theories have their challenges. The restrictive nature of
Theory X, for instance, could cause people to become demotivated and non-
cooperative if your approach is too strict. This may lead to high staff
turnover and could damage your reputation in the long term.

• Conversely, if you adopt a Theory Y approach that gives people too much
freedom, it may allow them to stray from their key objectives or lose focus.
Less motivated individuals may also take advantage of this more relaxed
working environment by shirking their work.

• If this happens, you may need to take back some control to ensure that
everyone meets their team and organizational goals.
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