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PREVIEW

Review Classical Theories of Organizations Taylors Theory of Scientific Management

FayolsAdministrative Theory

Webers Theory of Bureaucracy

Humanistic Theories of Organizations Human Relations Theory

The Hawthorne Studies

Mary Parker Follet

Chester Barnard

McGregors Theory X and Theory Y

Human Resources Theory LikertsSystems Theory (Four Systems of Management)

Blake and Moutons (Blake and McCanse) Managerial Grid


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Classical Theories Reviewed

Classical Theories of Organizations

Taylors Theory of Scientific Management (tasks)

FayolsAdministrative Theory (mgmt)

Webers Theory of Bureaucracy (org structure)

All 3 theories attempt to enhance managements ability topredict and control the behavior of their workers

Considered only the task function of communication (ignoredrelational and maintenance functions of communication)

Designed to predict and control behavior in organizations


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Classical vs. Humanistic

Classical theories emphasized coercion, control, and punishment(FOCUS ON TASKS /PRODUCTION).

Maintain predictability and control

Decision-making power at top of hierarchy

Minimize input from lower-level employees

Rely on science and rules to guide behavior

Regulate communication to increase predictability and decreasemisunderstandings

Result:

Workers feel they have no control over their work situation

Management does not care about their ideas

Feelings and ideas of workers are unimportant

Humanistic theories were developed to promote the CONCERNS of theindividual worker in an atmosphere that was too focused onproduction (FOCUS ON RELATIONAL & MAINTENANCE FUNCTIONS)


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Principles of Human Relations Theory

Human relations theory is characterized by a shift in emphasis from TASK

to WORKER

Go beyond physical contributions to include creative, cognitive, and

emotional aspects of workers

Based on a more dyadic (two-way) conceptualization of communication. SOCIAL RELATIONSHIPS are at the heart of organizational behavior--

effectiveness is contingent on the social well-being of workers

Workers communicate opinions, complaints, suggestions, and feelings to

increase satisfaction and production

Origins (Hawthorne Studies & work of Chester Barnard)

Human Relations School of Management - Elton Mayo


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Origins of Human Relations

Theory

Arose out of the influences of

the threat of unionization.

the Hawthorne studies.

the philosophy of industrial

humanism.

The uman Relations MovementPyramid


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The Threat of Unionization

The Wagner Act of 1935 legalized union-management

collective bargaining, promoting the growth of unions and

union avoidance by firms.

The Hawthorne Studies (1924)

Hawthorne Works of Western Electric Company

1924 - Chicago

Research focus: Relation of quality and quantity of illumination to efficiency in

industry Four Important Studies

The studys results that productivity was strongly affected by attitudes of

management toward the humanistic and realistic viewpoint of the social

man model.


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Industrial Humanism

Followed the classical perspective in the

development of management thought.

Is associated with the contributions of :

Mary Parker Follett

Elton Mayo

Douglas McGregor

Chester Barnard And others


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Mary Parker Follett(1868-1933)

Attached great importance to socio-psychologicalproblems

Was of the view that conflict is not necessarilydestructive..it may be constructive also

Concluded that a key to effective management wascoordination.

Felt that managers needed to coordinate andharmonize group effort rather than force and coercepeople.

Believed that management is a continuous, dynamicprocess.

Felt that the best decisions would be made by peoplewho were closest to the situation.


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Follett on Effective Work Groups

Four principles of coordination to promoteeffective work groups:

1. Coordination requires that people be in direct

contact with one another.

2. Coordination is essential during the initial stagesof any endeavor.

3. Coordination must address all factors and phasesof any endeavor.

4. Coordination is a continuous, ongoing process


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Elton MayoConducted the famous Hawthorne

Experiments.

Hawthorne EffectProductivity increased

because attention was paid

to the workers in the

experiment.

Phenomenon wherebyindividual or group

performance is influenced by

human behavior factors.

His work represents the transition

from scientific management to theearly human relations movement.

He concluded that the rabble

hypothesis about human behaviour

was unfoundedElton Mayo

1880 1949


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The Hawthorne Studies

Illumination Study(November 1924)

Designed to test the effect of lighting intensity on worker productivity

influence of human relations on work behavior

Relay Assembly Test Room Study(1927-1932)

Assembly of telephone relays (35 parts - 4 machine screws)

Production and satisfaction increased

Workers increased production and satisfaction related to supervisory practices

Human interrelationships are important contributing factors to worker productivity

Bottom Line: Supervisory practices increase employee morale AND productivity

Interviewing Program(1928-1930)

Investigate connection between supervisory practices and employee morale

Employees expressed their ideas and feelings (e.g., likes and dislikes)

Process more important than actual results

Bank Wiring Room Observation Study(November 1931 - May 1932)

Social groups can influence production and individual work behavior

How is social control manifested on the shop floor?

Informal organization affect employee behavior positively within formal organizationalstructure


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IlluminationStudies1924-1927

Funded by General Electric

Conducted by The National Research Council (NRC) of the NationalAcademy of Sciences with engineers from MIT

Measured Light Intensity vs. Worker Output

ResultEach change resulted in higher output and reported greateremployee satisfaction

Conclusions: Light intensity has no conclusive effect on output

Productivity has a psychological component Researchers interaction withthe workers influenced higher performance

Concept of Hawthorne Effect was created


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Relay Assembly Test Experiments1927-1929

Western Electric wanted more information

Harvard researchers brought in to analyze the resultsElton Mayo & Fritz Roethlisberger

Group of 6 Women(5) Assemblers and (1) Layout Operator

One ObserverExplained every incremental change and recorded results

Manipulated factors of production to measure effect on output: Pay Incentives

Length of Work Day & Work Week

Use of Rest Periods

Company Sponsored Meals

Management Visits / Special Attention

ResultMost changes resulted in higher output and reported greater employee satisfaction

Conclusions:

Experiments yielded positive effects even with negative influences workers output willincrease as a response to attention

Strong social bonds were created within the test group. Workers are influenced by need forrecognition, security and sense of belonging


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Relay Assembly Room #2 - 1928-1929

Measured output changes with pay incentive changes

Special observation room to re-test some of the factors on othergroups

Workers were paid the group bonus incentives

Results

During nine weeks there was 13% increase in the output on averageper person

Conclusion: Pay incentives were a relevant factor in outputincreases but not the only factor.


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Mica Splitting Test Group - 1928-1931

Measured output changes with changes in work conditionsonly:

Special Observation Room

Length of Work Day

Use of Rest Periods Workers stayed on established Piece-rate compensation

Result - Productivity increased by 15% over standard outputbase

Conclusions: Productivity is affected by non-pay considerations

Social dynamics are a basis of worker performance


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Plant Interview Program1925-1932

1925-1927Objective Questions Work Conditions

Work Relationships

Yes/No Answers

1928-1932Conversational / Non-directive

Attentive Sympathetic Listening Concern for personal needs

Increased in time from 30-90 minutes

ResultRemarkable positive employee perceptions: Working Condition Improved

Better Wages

Conclusions: New Supervisory Style improved worker morale

Complaints reflected personal and/or social barriers that needed attention in order toraise productivity


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Bank Wiring Observation Group1931-1932

14 Male Workers

Few Special Conditions Segregated work area

No Management Visits

Supervision would remain the same

Observer would record data onlyno interaction with workers

New incentive pay rate was established for the small group

Any increases in output would be included in departmental pay incentives

ResultNo appreciable changes in output

Conclusions: Well established performance norms existed in the group

Informal Social Organization dictated little deviation from established productionstandards Systemic Soldiering

Informal Social Organizations protect workers from managers who Raise production standards

Cut pay rates

Challenge workplace norms


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Hawthorne Studies - Implications

Illumination Study(November 1924)

The mere practice of observing peoples behavior tends to alter their behavior(Hawthorne Effect)

Relay Assembly Test Room Study(1927-1932)

Relationships between workers and their supervisors are powerful

Human interrelationships increase the amount and quality of worker participation indecision making

Interviewing Program(1928-1930)

Demonstrated powerful influence of upward communication

Workers were asked for opinions, told they mattered, and positive attitudes towardcompany increased

Bank Wiring Room Observation Study(November 1931 - May 1932)

Led future theorists to account for the existence of informal communication

Taken together, these studies helped to document the powerful nature of socialrelations in the workplace and moved managers more toward the interpersonalaspects of organizing.


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Chester Barnard:

The Emergence of Communication

Considered a bridge between classical and human relationstheories

The Functions of the Executive (1938)

Argues for . . .

strict lines of communication - classical theory a human-based system of organization

The potential of every worker and the centrality ofcommunication to the organizing process

Six Issues Relevant to Organizational Communication

Formal vs. Informal Organization

Cooperation

Communication

Incentives

Authority

Zone of Indifference


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Felt that executives serve two primary functions: Must establish and maintain a communications

system among employees.

Must establish the objectives of the organization and

motivate employees. Developed an acceptance theory of authority:

Authority of a manager flows from the ability ofsubordinates to accept or reject an order from the

manager once they: Comprehend what the order requires of them.

Review the orders consistency with organization goals.

Perceive a personal benefit in obeying the order


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Incentives

Should be available

Authority

Associated with securing cooperation for organizational members

The interrelationship among the originator of the communication, thecommunication itself, and the receiver

Authority of position OVER Authority of Leadership (knowledge &ability).

Zone of Indifference - orders followed

Marks the boundaries of what employees will consider doing without

question, based on expectations developed on entering theorganization.

Barnard drew attention away from formal organizational structurestoward communication, cooperation, and the informal organization. Hiswork was integrated by other theorists in the human relations movement.


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Theory X and Theory Y

Theory X managers perceive that their

subordinates have an inherent dislike of work and

will avoid it if at all possible.

Theory Y managers perceive that their

subordinates enjoy work and that they will gain

satisfaction from performing their jobs.


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Theory X and Theory Y: Linkage with management

theories

Theory X - Classical Theory

Three Assumptions

The average human being has an inherent dislike

of work and will avoid it. Most people must be coerced, controlled,

directed, and threatened with punishment

The average human being prefers to be directed,wishes to avoid responsibility, has relatively little

ambition, wants security.

Neither explains nor describes human nature


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Theory Y - Human Relations Theory

Assumptions

Physical and mental effort in work is similar to play / rest.

External control and the threat of punishment are not the onlystrategies

Commitment to objectives is a function of the rewards associatedwith their achievement

The average human being learns, under proper conditions, notonly to accept but to seek responsibility

The capacity to exercise a high degree of imagination, ingenuity,

and creativity in the solution of organizational problems is widelydistributed in the population

Intellectual potentialities of the average human being areunderutilized

A more positive perspective of human nature

The KEY to control and quality production is commitment toorganizational objectives


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Blake and Moutons Managerial Grid

Stresses interrelationship between production (task) and people

Managements main purpose is to promote a culture in the organization thatallows for high production at the same time that employees are fostered intheir professional and personal development

Managerial Grid - now Leadership Grid (Blake & McCanse) (Figure 3.3, p. 59) FOCUS: Mangers Assumptions about CONCERN for PEOPLE and CONCERN

for PRODUCTION

Concern for PEOPLE

Degree of personal commitment to ones job

Trust-based accountability (vs. obedience-based accountability)

Self-esteem for the individual Interpersonal relationships with co-workers

Concern for PRODUCTION

Use of people and technology to accomplish organizational tasks

Concern for is not about quantity or quality

Assessment instrument does not represent personality traits of the manager-- instead, indicate a specific orientation to production and people


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Blake and Moutons Managerial Grid

Authority Compliance (9,1)

Classical theory

Country Club (1,9)

Informal grapevineImpoverished (1,1)

Laissez-faire

Middle-of-the-Road (5,5)

Compromise (carrot & stick)

Team (9,9)

Human Resources Approach

Promote the conditions that integrate

creativity, high productivity, and high

morale through concerted team action

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