7th National Conference

on
‘’Implications of Management Theories on Literature Education,
Social Science and Cultural Issues’’

NCIM- 2018
at
Faculty of Management Studies(FMS)
-Mayank Joshi
Gurukul Kangri Vishwavidyalaya,Haridwar (U.K) -MBA(BF)
-Semester First
Sunday, 30th September 2018 -Gurukul Kangri
Vishwavidyalaya
Western Electric Company
• American electric engineering and
manufacturing company.
• Founded in 1869.
• In 1905, they started began construction of the
Hawthorne Works on the outskirts of Chicago.
• In 1915, Western Electric Manufacturing was
incorporated as a wholly owned subsidiary of
AT&T ,under the name of Western Electric
Company, Inc.
 Hawthorne Experiment

• For human relations approach,

there are many contributors.
• But the first systematic analysis of
human factor in organisations was
made in the form of Hawthorne
experiments.
• Hawthorne studies were
conducted by Elton Mayo and Fritz
Roethlisburger in the 1920’s with
the workers at the Hawthorne
plant of Western electric company.
How it begin?
• The Hawthorne plant of Western electric company
was manufacturing telephone system bell.
• It employed about 30,000 employees at the time of
experiment.
• Although company was providing benefits like
pension ,sickness benefits and other recreational
benefits, but still workers productivity was not up to
the mark.
• In 1924, a team led by Elton Mayo(psychologist)and
Fritz(sociologist) investigated the real causes behind
the phenomenon.
• They conducted various researches in 4 phases from
1924-32.
4 parts of Hawthorne Experiments
• Part 1 – Illumination experiments (1924-27)
• Part 2- Relay assembly test room study (1927-29)
• Part 3 – Mass Interviewing program(1928-30)
• Part 4 – Bank wiring observation room experiment(1931 – 1932)
 Part 1 : Illumination Experiment
• Illumination experiments were
conducted to find out how
varying levels of amount of
light at the workplace affects
productivity.
• Assumption was that higher
illumination increases
productivity.
 Part 1: Illumination Experiments
EXPERIMENTAL GROUP CONTROL GROUP
(varying illumination) (constant illumination)
 Part 1: Illumination Experiments
• The researchers found that as they increased the
illumination in the experimental group, both
groups increased production.
• When the intensity of illumination was
decreased, the production continued to increase
in both the groups.
• The production in the experimental group
decreased only when the illumination was
minimised to the level of moonlight.
• Thus, it was concluded that illumination did not
have any effect on productivity.
 Part 2 : Relay Assembly Test Rooms
Experiments
• Designed to determine the
productivity in various job
conditions.
• Researchers set up separate
assembly test room , which involved
assembly of telephone rays.
• A group of 6 women were selected.
• The output depend on the speed and
continuity with which the women
group worked.
• The experiment started with
introducing various changes
(duration ranged from 4- 6 weeks)
 Part 2 : Relay Assembly Test Rooms
Experiment
• Changes
1. Incentive system was changed.

- Each girl’s extra pay was based

on the other 5 rather than output
of the large group.
- Productivity increased as
compared to before
 Part 2 : Relay Assembly Test Rooms
Experiment
• Changes

2. Two, 5 minutes rests – one in

morning session and other in
evening session was introduced.
- It was later increased to 10
minutes.
- The productivity increased.
 Part 2 : Relay Assembly Test Rooms
Experiment
• Changes
3. The rest period was reduced to
5 minutes but frequency was
increased
- The productivity decreased
slightly.
- The girls complained that
frequent rest intervals affecting
the rhythm of their work .
 Part 2 : Relay Assembly Test Rooms
Experiment
• Changes
4. The number of rest was
reduced to 10 minutes each.
- But in morning, coffee or soup
was served with Sandwich.
- And in the evening, snack was
provided.
- Productivity increased.
 Part 2 : Relay Assembly Test Rooms
Experiment
• Changes
5. Changes in working hours and
week offs were introduced.
- Like , they eliminated Saturday
work .
- Allowing women to leave one
hour early from 05:00 pm to
04:00 pm.
- Productivity increase.
 Part 2 : Relay Assembly Test Rooms
Experiment
• As each change was introduced, their morale increased and less
supervision was required.
• Now, the researchers decided to revert back to original position, i.e.,
no rest and no benefits.
• Surprisingly, productivity increased further instead of getting down.
• It was concluded that along with the physical factors, productivity
also increased due to their attitude towards work and their work
environment and supervisor’s friendly behaviour.
• They developed the sense of responsibility and self discipline.
 Part 3 : Mass interview Programme
• Reason for Conducting : to study the human behaviour in the company.
• No of personal interviews: with about 20,000 employees.
• Theme :to determine employee attitude towards company, supervision,
insurance plans, promotion and wages.
 Part 3 : Mass interview Programme
Here, interviewer was asked to listen instead of
talking and advising.
- The program was changed from formal to
non- direct interviewing
- It gave valuable outcomes about human
behaviour in the company like,
1. Worker’s behaviour was influenced by
group behaviour and not by individual.
2. Workers in different positions think
differently about features like hours of
work, wages etc.
3. Not just the behaviour inside the plant but
also the outside behaviour effects
productivity.
 Part4 : Bank wiring observation room
experiment
• They involved 14 male workers in a group.
• Announced if they group become more productive than the target,
they will get more bonus.
 Part4 : Bank wiring observation room
experiment
• It was conducted to analyse the functioning of small informal group and
peer pressure on worker’s productivity.
• The idea was that in order to earn more, workers would produce more.
• Also to get the group bonus, they would help each other to produce more
• However, this idea didn’t worked.
• Workers decided the constant target for themselves which was lower than
the company target .
• This study suggested that informal relationships are an important factor in
determining the human behaviour.
• Workers gave restricted output due to the following reasons

1. Fear of unemployment: If there would be more production per

head, some of the workers would be put out of employment.
2. Fear of raising the standards: Workers thought if they reached the
standard set by management, they would again raise the standard.
3. Protection of slower workers: The workers were friendly on and off
the job. The faster workers protected the slower workers by not
over-producing.
4. Satisfaction on the part of management: Management seemed to
accept lower production rate as no one was fired for restricted
output.
Conclusion:

• A factory is not only a economic unit, but also a social unit.

• Human and social motivation can play even a greater role
then money incentives.
• The style of supervision affects worker’s attitude to work
and its productivity.
• Productivity increases as a result of improved working
conditions in the organization.
• A balanced approach and informal way can help in
understanding and solving workers problem.
THANK YOU

-Mayank Joshi
-MBA(BF)
-Semester First
-Gurukul Kangri Vishwavidyalaya
-7983207768