Team 4 Kennya Leal Richard Orsi Dan Wales Alexandra Pagliuca

 George Elton Mayo  12/26/1880 – 9/7/1949  Psychologist and sociologist  Active Australian Psychologist  Moved to the United States to participate in the Philadelphia post opportunity.

 Adelaide University  University of Queensland  Pennsylvania University  Harvard Business School  Retirement  British Government Advisor

 Human Relations Movement  The Social Problems of an Industrial Civilization (1933)  Training Within Industry Supervisor Training

  Funded by General Electric  Conducted by The National Research Council (NRC) of the National Academy of Sciences with engineers from MIT  Measured Light Intensity vs. Worker Output  Result : Higher productivity and greater employee satisfaction  Conclusions: Light intensity has no conclusive effect on output Productivity has a psychological component  Concept of “Hawthorne Effect” was created

  Manipulated factors of production to measure effect on output: Pay Incentives Length of Work Day & Work Week Use of Rest Periods Company Sponsored Meals  Results: Higher output and greater employee satisfaction  Conclusions: Positive effects even with negative influences – workers’ output will increase as a response to attention Strong social bonds were created within the test group. Workers are influenced by need for recognition, security and sense of belonging

  Measured effect on output with compensation rates Special observation room 1 st Session- Relay Assemblers changed from departmental incentive to small group incentive 2 nd Session - Adjusted back to large group incentive  Results: Small group incentives resulted in new sustained level of production – 112% over standard output base Output dropped to 96.2% of base in 2 nd session  Conclusion: Pay relevant to output but not the only factor

  Measured output with changes to work conditions only: 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 output base  Conclusions: Productivity is affected by non-pay considerations Social dynamics are a basis of worker performance

 – Objective Questions Work Conditions Work Relationships Yes/No Answers  – Conversational / Non-directive Attentive Sympathetic Listening Concern for personal needs Increased in time from minutes  Result: Remarkable positive employee perceptions  Conclusions: New Supervisory Style improved worker morale

  Limited changes to work conditions Segregated work area No Management Visits Supervision would remain the same Observer would record data only – no interaction with workers  Small group pay incentive  Result: No appreciable changes in output  Conclusions: Preexisting performance norms Group dictated production standards - Systemic Soldiering Work Group protection from management changes.

 Group was not selected objectively  Two women were replaced since they were chatting during their work.  One Italian member was working harder and above average to care for her family.

“Hawthorne effect is simply the result of ‘capitalist bias’ among modern industrial psychologists.” - American Psychologist Magazine “Woman liked attention and interpreted experimenter as the ‘boss’” - Jonathan Freedman “A distinguished industrial psychologist” - H. Mcllvaine Parson

 Improved management “…But Professor Mayo’s work also helped establish field based empirical research as the primary research Methodology at HBS.” - Mary Lee Kennedy  These studies changed the landscape of management Taylor's engineering approach improved into a social science approach.

 Mayo applied Taylor’s time and motion studies.  The Human Factor - relationships between workers and managers.  Recognized that special incentives were required to motivate laborers  Failed to consider motivational factors

 Taylor noted while at the Simmonds Rolling Machine Company that productivity increased when: “Each ball bearing checking girl was made to feel that she was the object of special care and interest”.  However, Taylor has never conducted any detailed studies to investigate this phenomena.

 Viewed organizations as cooperative systems.  Focused on individuals and their interactions with other humans in social relationships.  Promoting communication  Relates to Mayo’s “Relay Room” which every move was reported.

 The Group Principle  The potentials of the individual remain potentials until they are released by group life.  Focused on: Negotiation Power Employee Participation

 Discrete observations  Objective worker selection  Isolated variables  Control group

THANK YOU! Are there any questions or comments?

 Wren, Daniel A., and Arthur G. Bedeian. The Evolution of Management Thought. 6th ed. Hoboken, NJ: John Wiley & Sons, Inc., Print.  "History of Management." ManagementGuru supports management studies and is maintained by Dr.Makamson. Web. 16 Nov  "Baker Library Chronicles Human Relations Movement." Harvard Business School. Web. 16 Nov  "ProvenModels hawthorne effect - Elton Mayo." ProvenModels - Management Models | Management Theory | Business Models | Michael Porter | Henry Mintzberg | Management Model | Business School. Web. 15 Nov  