Human Relations Theory

3.1 Elton Mayo and Hawthorne Experiments (1927–32)

Elton Mayo (1880–1949), an Australian psychologist at Harvard, conducted the famous Hawthorne Experiments at the Western Electric Company's Hawthorne plant in Chicago (1927–32). The experiments were initially designed to study the effect of physical conditions (lighting, rest periods) on productivity. What they revealed was far more significant.

Four phases of Hawthorne Experiments:

Phase	Period	Study	Key Finding
Illumination experiments	1924–27	Effect of lighting on productivity	No clear correlation — productivity rose even in control group
Relay Assembly Test Room	1927–29	Effect of rest breaks, shorter hours	Productivity rose regardless of conditions — workers felt special
Bank Wiring Observation Room	1931–32	Group dynamics	Workers set their own informal production norms; restricted output to protect jobs
Interview Programme	1928–30	21,000+ interviews	Workers had pent-up emotions; simply talking improved morale

Conclusions of Hawthorne Experiments:

1. Social man: Workers are social beings, not economic machines
2. Informal groups: Informal organisations exert powerful influence on behaviour
3. Hawthorne Effect: Workers perform better when they know they are being observed and feel valued
4. Non-economic incentives: Recognition, belonging, and morale matter as much as wages
5. Communication: Two-way communication between management and workers improves productivity

3.2 Chester Barnard (1886–1961)

Chester Barnard was president of New Jersey Bell Telephone Company. His The Functions of the Executive (1938) is a classic of organisation theory.

Key contributions:

• Acceptance theory of authority: Authority is not derived from position but from the subordinate's acceptance. If an order falls outside a subordinate's "zone of indifference," they may not comply.
• Organisation as cooperative system: An organisation is a system of consciously coordinated activities requiring cooperation. Executives must balance efficiency (achievement of organisational goals) and effectiveness (achievement of personal goals of members).
• Informal organisation: Informal relationships and communication are essential to formal organisational functioning.

3.3 Mary Parker Follett (1868–1933)

Follett was a pioneer of management thinking who anticipated many later ideas:

• Conflict resolution by integration: Rather than compromise (giving up) or domination (forcing), find a solution that fully satisfies both sides.
• Power WITH not power OVER: Coercive authority should be replaced by cooperative, relational authority.
• Law of the situation: Authority should derive from the needs of the situation, not from position — an early form of situational leadership.

3.4 Criticisms of Human Relations Theory

1. Pro-management bias: Critics (like Landsberger) argued Mayo ignored class conflict and served management interests by pacifying workers
2. Unscientific methods: Hawthorne experiments had methodological flaws — no control groups, observer effect
3. Over-emphasis on social needs: Neglects economic incentives, formal rules, and technology
4. Neglects power and politics: Organisations are also arenas of power struggle

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