According to Fred Luthans, three events cumulatively ushered in the era of human relations movement. They are (a) The great depression, (b) The Hawthorne experiments, and (c) Rise of the trade unionism.
(a) The Great Depression
The Great Depression was a worldwide economic downturn starting in most places in 1929 and ending at different times in the 1930s or early 1940s in different countries. It was the largest and most important economic depression in the 20th century, and is used in the 21st century as an example of how far the world's economy can fall. The Great Depression originated in the United States; historians most often use as a starting date the stock market crash on October 29, 1929, known as Black Tuesday.
The economy was operating in the high gear just before the thundering financial crash occurred in 1929. The production and organizational specialists had achieved great results prior to the crash. The depression had devastating effects in virtually every country, rich or poor. International trade plunged by half to two-thirds, as did personal income, tax revenue, prices and profits. Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by roughly 60 percent. Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as farming, mining and logging suffered the most.
After the crash the management began to realize that production could no longer be the only major responsibility of management. Marketing, finance and more importantly personnel were also required in order for a business to survive and grow. The depression’s problems that managers were now forced to recognize and cope with. Personnel departments were either created or given more importance and most managers now began to develop a new awakened view of the human aspects of their jobs. Thus human relations took an added significance, as an indirect, and in some cases direct.
(b) The Hawthorne Experiments
Western Electric Co. conducted at its Hawthorne Works a research program or a series of experiments on the factors in the work situations which affect the morale and productivity of workers. The first of these, the “Illumination Experiments”, was studied in cooperation with the National Research Council of the National Academy of Sciences. In the remainder of the studies, the company was aided and guided by the suggestions of Prof. Elton Mayo and his associates from Harvard University.
The Hawthorne studies represent the pioneer attempts to make a systematic and intensive study of the human factor and to demonstrate the utmost complexity in work setting where people interact in small groups under varied organizational conditions. The studies point out that the needs for recognition, security and sense of belonging exert greater impact on workers’ productivity than the physical working conditions; that the attitudes and effectiveness of workers are determined by the social requirements obtained inside and outside the factory environment.
The Hawthorne works of the Western Electric Co. Chicago manufactured equipment for the Bell Telephone system and employed 30,000 workers at the time of experiments. Although, in all material aspects, this was the most progressive company with pension and sickness schemes and numerous recreational and other facilities, there had been a great deal of employee discontent and dissatisfaction among its employees. After a failure of investigation conducted by efficiency experts of the company, in 1924, the company asked for the assistance of the National Academy of Sciences, which initiated its experiments with a view to examining the relationship between the workers efficiency and illumination in the workshop.
Like any experimental design the researchers manipulated the independent variable (illumination) to observe its effects on the dependent variables (productivity) and attempted to hold other factors under control. The following are the broad segments of the study:
(i) Illumination Experiments: 1924 to 1927
To study the effects of changed illumination on work, two groups of employees were formed. In one group (control group) the illumination remained unchanged throughout the experiments whereas in other group (experimental group) the illumination was enhanced in intensity. As anticipated, the productivity in experimental group showed an improvement. But strangely enough the output of the control group also went up. The researchers then proceeded to decrease the illumination for the experimental group. The output went up once again. This showed that some factor was operating which increased the productivity (dependent variable) regardless of higher or lower intensity of light. Obviously, there was something much more important than wages, hours of work, working conditions, etc. which influenced productivity. Despite their negative results the illumination experiments did not end up in the waste paper basket but provided a momentum to the relay room phase of the studies.
(ii) Relay Room Experiments: 1927 to 1932
Taking a cue from the preceding illumination experiments, the researchers attempted to set up the test room and selected two girls for their second series of experiments and asked them to choose another four girls, thus making a small group of six. The group was employed in assembling telephone relays - a relay being a small but intricate mechanism composed of about forty separate parts which had to be assembled by the girls seated at a lone bench and dropped into a chute when completed.
The relays were mechanically counted as they slipped down the chute. It was intended that the basic rate of production should be noted at the start, and that subsequently changes would be introduced, the effectiveness of which would be measured by increased or decreased production of the relays.
Feedback mechanism
Through out the series of experiments, an observer sat with the girls in the workshop noting all that went on, keeping the girls informed about the experiment, asking for advice or information, and listening to their complaints.
The experiment began by introducing various changes, each of which was continued for a test period of four to twelve weeks. The results of these changes are as follows:
Conditions and results
Under normal conditions with a forty eight hour week, including Saturdays, and no rest pauses. The girls produced 2,400 relays a week each.
• They were then put on piece-work for eight weeks.
o Output went up
• Two five minute rest pauses, morning and afternoon, were introduced for a period of five weeks.
o Output went up once more
• The rest pauses were lengthened to ten minutes each.
o Output went up sharply.
• Six five minute pauses were introduced, and the girls complained that their work rhythm was broken by the frequent pauses.
o Output fell slightly
• Return to the two rest pauses, the first with a hot meal supplied by the Company free of charge.
o Output went up
• The girls were dismissed at 4.30 p.m. instead of 5.00 p.m.
o Output went up
• They were dismissed at 4.00 p.m.
o Output remained the same
• Finally, all the improvements were taken away, and the girls went back to the physical conditions of the beginning of the experiment: work on Saturday, 48 hour week, no rest pauses, no piece work and no free meal. This state of affairs lasted for a period of 12 weeks.
o Output was the highest ever recorded averaging 3000 relays a week.
What happened during the experiments?
What happened was that six individuals became a team and the team gave itself wholeheartedly and spontaneously to cooperation in the experiment. The consequence was that they felt themselves to be participating freely and without afterthought and were happy in the knowledge that they were working without coercion from above or limitation from below.
It was noted too, that each girl had her own technique of putting the component parts of the relay together - sometimes she varied this technique in order to avoid monotony and it was found that the more intelligent the girl, the greater was the number of variations.
The experimental group had considerable freedom of movement. They were not pushed around or bossed by anyone. Under these conditions they developed an increased sense of responsibility and instead of discipline from higher authority being imposed; it came from within the group itself.
The findings
The results implied that productivity increased basically because of a change in soliciting assistance and cooperation. They were no longer cogs in a machine but formed congenial group attempting to assist the company to solve a problem. A feeling of stability and a sense of belonging grew. Therefore, they worked faster and better than before.
They were themselves satisfied at the consequence for they felt that they were working under less pressure than ever before. In fact regular medical checks showed no signs of cumulative fatigue and absence from work declined by 80 per cent.
(c) The rise of trade unionism
Another important contributing factor to the rise of human relation’s role of management was the organized labour movement. Although labour unions were in existence in America as early as 1792, it was not until the passage of Wagner Act in 1935 that the organized labour movement made an impact on management.
In India, though workers’ unions existed since the later half of the 19th century, they operated under terrible legal constraints. It was only in 1926 with the passage of Trade Union Act 1926 that the managers began realizing that the trade unions had come to stay in spite of the wishes of the managers or for that matter management. The only way to avoid any probable friction with the trade union was to understand the human relations role of the management.
(a) The Great Depression
The Great Depression was a worldwide economic downturn starting in most places in 1929 and ending at different times in the 1930s or early 1940s in different countries. It was the largest and most important economic depression in the 20th century, and is used in the 21st century as an example of how far the world's economy can fall. The Great Depression originated in the United States; historians most often use as a starting date the stock market crash on October 29, 1929, known as Black Tuesday.
The economy was operating in the high gear just before the thundering financial crash occurred in 1929. The production and organizational specialists had achieved great results prior to the crash. The depression had devastating effects in virtually every country, rich or poor. International trade plunged by half to two-thirds, as did personal income, tax revenue, prices and profits. Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by roughly 60 percent. Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as farming, mining and logging suffered the most.
After the crash the management began to realize that production could no longer be the only major responsibility of management. Marketing, finance and more importantly personnel were also required in order for a business to survive and grow. The depression’s problems that managers were now forced to recognize and cope with. Personnel departments were either created or given more importance and most managers now began to develop a new awakened view of the human aspects of their jobs. Thus human relations took an added significance, as an indirect, and in some cases direct.
(b) The Hawthorne Experiments
Western Electric Co. conducted at its Hawthorne Works a research program or a series of experiments on the factors in the work situations which affect the morale and productivity of workers. The first of these, the “Illumination Experiments”, was studied in cooperation with the National Research Council of the National Academy of Sciences. In the remainder of the studies, the company was aided and guided by the suggestions of Prof. Elton Mayo and his associates from Harvard University.
The Hawthorne studies represent the pioneer attempts to make a systematic and intensive study of the human factor and to demonstrate the utmost complexity in work setting where people interact in small groups under varied organizational conditions. The studies point out that the needs for recognition, security and sense of belonging exert greater impact on workers’ productivity than the physical working conditions; that the attitudes and effectiveness of workers are determined by the social requirements obtained inside and outside the factory environment.
The Hawthorne works of the Western Electric Co. Chicago manufactured equipment for the Bell Telephone system and employed 30,000 workers at the time of experiments. Although, in all material aspects, this was the most progressive company with pension and sickness schemes and numerous recreational and other facilities, there had been a great deal of employee discontent and dissatisfaction among its employees. After a failure of investigation conducted by efficiency experts of the company, in 1924, the company asked for the assistance of the National Academy of Sciences, which initiated its experiments with a view to examining the relationship between the workers efficiency and illumination in the workshop.
Like any experimental design the researchers manipulated the independent variable (illumination) to observe its effects on the dependent variables (productivity) and attempted to hold other factors under control. The following are the broad segments of the study:
(i) Illumination Experiments: 1924 to 1927
To study the effects of changed illumination on work, two groups of employees were formed. In one group (control group) the illumination remained unchanged throughout the experiments whereas in other group (experimental group) the illumination was enhanced in intensity. As anticipated, the productivity in experimental group showed an improvement. But strangely enough the output of the control group also went up. The researchers then proceeded to decrease the illumination for the experimental group. The output went up once again. This showed that some factor was operating which increased the productivity (dependent variable) regardless of higher or lower intensity of light. Obviously, there was something much more important than wages, hours of work, working conditions, etc. which influenced productivity. Despite their negative results the illumination experiments did not end up in the waste paper basket but provided a momentum to the relay room phase of the studies.
(ii) Relay Room Experiments: 1927 to 1932
Taking a cue from the preceding illumination experiments, the researchers attempted to set up the test room and selected two girls for their second series of experiments and asked them to choose another four girls, thus making a small group of six. The group was employed in assembling telephone relays - a relay being a small but intricate mechanism composed of about forty separate parts which had to be assembled by the girls seated at a lone bench and dropped into a chute when completed.
The relays were mechanically counted as they slipped down the chute. It was intended that the basic rate of production should be noted at the start, and that subsequently changes would be introduced, the effectiveness of which would be measured by increased or decreased production of the relays.
Feedback mechanism
Through out the series of experiments, an observer sat with the girls in the workshop noting all that went on, keeping the girls informed about the experiment, asking for advice or information, and listening to their complaints.
The experiment began by introducing various changes, each of which was continued for a test period of four to twelve weeks. The results of these changes are as follows:
Conditions and results
Under normal conditions with a forty eight hour week, including Saturdays, and no rest pauses. The girls produced 2,400 relays a week each.
• They were then put on piece-work for eight weeks.
o Output went up
• Two five minute rest pauses, morning and afternoon, were introduced for a period of five weeks.
o Output went up once more
• The rest pauses were lengthened to ten minutes each.
o Output went up sharply.
• Six five minute pauses were introduced, and the girls complained that their work rhythm was broken by the frequent pauses.
o Output fell slightly
• Return to the two rest pauses, the first with a hot meal supplied by the Company free of charge.
o Output went up
• The girls were dismissed at 4.30 p.m. instead of 5.00 p.m.
o Output went up
• They were dismissed at 4.00 p.m.
o Output remained the same
• Finally, all the improvements were taken away, and the girls went back to the physical conditions of the beginning of the experiment: work on Saturday, 48 hour week, no rest pauses, no piece work and no free meal. This state of affairs lasted for a period of 12 weeks.
o Output was the highest ever recorded averaging 3000 relays a week.
What happened during the experiments?
What happened was that six individuals became a team and the team gave itself wholeheartedly and spontaneously to cooperation in the experiment. The consequence was that they felt themselves to be participating freely and without afterthought and were happy in the knowledge that they were working without coercion from above or limitation from below.
It was noted too, that each girl had her own technique of putting the component parts of the relay together - sometimes she varied this technique in order to avoid monotony and it was found that the more intelligent the girl, the greater was the number of variations.
The experimental group had considerable freedom of movement. They were not pushed around or bossed by anyone. Under these conditions they developed an increased sense of responsibility and instead of discipline from higher authority being imposed; it came from within the group itself.
The findings
The results implied that productivity increased basically because of a change in soliciting assistance and cooperation. They were no longer cogs in a machine but formed congenial group attempting to assist the company to solve a problem. A feeling of stability and a sense of belonging grew. Therefore, they worked faster and better than before.
They were themselves satisfied at the consequence for they felt that they were working under less pressure than ever before. In fact regular medical checks showed no signs of cumulative fatigue and absence from work declined by 80 per cent.
(c) The rise of trade unionism
Another important contributing factor to the rise of human relation’s role of management was the organized labour movement. Although labour unions were in existence in America as early as 1792, it was not until the passage of Wagner Act in 1935 that the organized labour movement made an impact on management.
In India, though workers’ unions existed since the later half of the 19th century, they operated under terrible legal constraints. It was only in 1926 with the passage of Trade Union Act 1926 that the managers began realizing that the trade unions had come to stay in spite of the wishes of the managers or for that matter management. The only way to avoid any probable friction with the trade union was to understand the human relations role of the management.
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