HUMAN RELATIONS THEORY – ELTON MAYO

This theory is largely seen to have been born as a result of the Hawthorne experiments which Elton Mayo conducted at the Western Electrical Company. However, the so called ‘Hawthorne Effect’ was not foreseen by the study. The Western Electrical Company wished to show that a greater level of illumination in a working area improved productivity, hence encouraging employers to spend more money on electricity from the company. As such they carried out a study of how productivity varied with illumination levels. However the results of the study showed that any changes in light levels tended to increase productivity levels and this level also increased significantly with the control group.
According to Roethlisberger and Dickson, the group members decided among themselves a norm of daily quota and observed strictly the norm. No worker was allowed to work more or very less than the standard fixed by the group. If any wireman wanted to work more he was insulted or even criticized by other members by being called rate-buster. Thus mild sanctions from the group did not allow the wiremen to work more and stopped early as they completed their quota as decided by the group. They yielded to the pressure of the group which was stronger than the financial incentives.
From the Hawthorne Studies, and research which they largely stimulated, developed the human relations school. It stated that scientific management theory of financial incentives did not motivate the workers sufficiently. On the contrary, the other needs of workers must be taken in consideration i.e. social needs like friendship, the need to belong, group support, recognition and status and the need for ‘self actualization’ which involves the development of the individual’s talents creativity and personality to the full. These needs must be met, if productivity in real sense has to be increased only than with ‘personal satisfaction’ workers’ cooperation can be secured.
A. Maslow developed a need hierarchy to explain human behaviour within an organization. For him first lower level needs should be satisfied then workers can go for satisfaction of higher level needs. Psychologists brought into lime light many aspects of rational behaviour, the sources of motivation and the nature of leadership. F. Herzberg and V. Vroom proposed motivational models explaining the causes of human behaviour and motivation in business. Douglas McGregor explained certain basic assumptions about the human element and put forward two managerial styles viz. theory X representing classical views of management and organization and theory Y representing neo-classical or modern views of management and organization. The behavioural sciences have provided modern management with a more objective, systematic and scientific understanding of one of the most puzzling and critical factors. An organization based on the human element is essentially a social system and not just techno economic system. This theory thus recognizes the importance of human.
The core aspect of Human Relations Theory is that when workers were being observed and included in the research, they felt more important and valued by the company. As a result their productivity levels went up significantly. Another important part of human relations theory came from the other one of Mayo’s experiments: The Bank Wiring Experiment. This experiment involved monitoring the production of a group of workers who were working as a group to produce electrical components. This investigation showed that as believed by Taylor and Ford, the group as a whole decided on the level of production, purposely failing to produce their maximum output inspite of the potential bonus which was offered by management. This indicated that factors such as per pressure and the desire for harmony within the group, overrode any economic considerations which the workers held. These studies also first drew management theorist focus to the informal aspect of the organization and encourage good communication with workers and develop a connection with their employees, which runs counter to Taylor and Ford’s claim that managers needed to focus an organizational goals and completely control the workers. Mayo argued that Taylor and Ford’s techniques would boost productivity but only to a certain level. In order to go above this level, workers needed to feel that they were valued more than simply on a monetary basis. The concept that managers need to become involved with workers at a more individual level is at the core of human relations theory and is what differentiates it from scientific management theory and is what differentiates it from scientific management theory.
It has been assured that there would be no conflict of interests between the management and workers. If there is any such situation, it must be due to non satisfaction of the needs of workers. By reorganizing social relationships within the organization, according to human relation principle conflict can be removing and both the groups can remain in peace.

Source:
The Human Problems of an Industrial Civilization: Early Sociology of Management and Organizations - Author(s): Elton Mayo
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