Experiment General Motors

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Principles of Management

R Rajesh
ABV-IIITM Gwalior
Hawthorne experiments (Elton Mayo)
• Find out the effect of human relations in
organizations.
(i) Organizational situation should be viewed in
social terms, apart from economic and
technical terms.
(ii) Social process of group behavior can be
understood in terms of clinical method
analogous to doctor’s diagnosis.
• General Electric Company manufactures
telephones based in Chicago conducted
experiments from 1924-1932.
• Even though the company was the most
progressive company in terms of worker
benefits and pensions, the productivity was
not upto the mark.
Experiments conducted
• Experiments to determine the effect of changes
in illumination on productivity: illumination
experiments.
• Experiments to determine the effects of changes
in hours and working conditions on productivity:
relay assembly test room.
• Plant wide interviews to study the worker
attitude: mass interviewing programme.
• Determination of social organization at work:
bank wiring experiments.
Illumination experiments
• Varying levels of illumination on production.
• Hypothesis was higher illumination leads
higher production.
• Two groups were selected: the control group
and experimental group.
• Intensity of light increased for the
experimental group, production for both the
groups increased.
• The same happened while decreasing the
intensities, until the moonlight intensity was
reached.
• Illumination does not have serious effects on
productivity.
• Some of the other psychological factors have
contributed towards productivity.
Relay assembly test room experiments
• Study the effect of various job conditions on
productivity.
• Experiment started with the speed and
continuity of work of girls.
• An observer was introduced to supervise the
jobs done by the two team of girls.
• Girls were given the freedom to express their
viewpoints
• The incentive system was introduced for girls for
extra work: productivity increased.
• Five minutes of rest periods were increased to
ten minutes in morning and evening: productivity
increased.
• Rest periods were reduced to 5 minutes and the
frequency of rest periods increased: productivity
decreased. (rhythm of work)
• Number of rest periods were reduced to 10
minutes in morning and evening, coffee and
snacks were provided: productivity increased.
• Changes in the working hours was introduced,
girls were allowed to leave at 4. 30 pm instead of
5 pm, and later by 4 pm: Productivity increased.
• Absenteeism decreased and morality increased.
• The experimental group was removed and
reverted back to original work environments:
productivity increased.
• Change in the attitude towards work and feeling
of stability and belongingness.
• Mass interviewing programme
• Conducted between 1928 and 1930 (20000
interviews conducted).
• Formal interviews were conducted initially.
• Changed to non-directive interviewing,
through way of listening.
• Workers behavior was influenced by a group
behavior (informal).
Bank wiring observation room experiments
Analyze the functioning of small groups and its
impact on individual behavior.
Group of male workers were selected in wiring.
Hourly wage rates were fixed based on output of
the worker, but the bonus was determined
based on group output.
Target achieved was less than the number set by
the company.
• Following reasons were given by workers
• Fear of unemployment: If there is more
production per head, some of the workers
would be put out of employment.
• Fear of raising standards: Most workers were
convinced that if they reach the standard rate
of production, management thinks that it
would be easy to attain and raise standards.
• Protection of slower workers: workers were
friendly on the job and off the job. Concern
for fellow workers.
• Satisfaction at the part of management:
Management seemed to have accepted the
lower production rates, as no one is fired or
pointed for restricted output.
Implications
• Social factors in output
• Group influence
• Conflicts (of groups)
• Leadership (informal leaders not supervisors)
• Supervision (friendly, attentive, and concerned)
• Communication (participation in decision-
making)

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