The Hawthorne Effect and the Modern Management Jargon - Case Study Example

 1. Introduction Organizational behavior is basically the study of human behavior in organizational settings. It is the study of the organization and the behavior of the human in different situations. The roots of organizational behavior can be traced back to Scientific Management, a school of thought that was largely developed by Frederick Taylor. Through time and motion studies it was possible to break down chunks of work into simple tasks which could then reveal the best way that a worker could execute that task (Mb021). It was possible to break down every bit of the task like the time it would take, when the worker could take a break for a drink of water etc. The workers then could execute it like machines. This implies that people have to be managed to make the most effective use of the resources. Nevertheless, scientific management came under criticism because it only aimed at maximizing productivity. While it facilitated job specialization and mass production, workers were no more than machines. Further research continued on human behavior and scientific management as morale among workers was found to be low. The scientific management gave little importance to the role of individuals or groups in an organization. It only focused on how individual performance could be improved (The Economist, 2008). This gave birth to the Hawthorne studies which were a series of experiments on the work environment. 2.1 Definition The Hawthorne Study set the individual in the social context and established that the performance of the employees is influenced by the work environment as well as the people they are working with (The Economist, 2008). The Hawthorne Effect brought about a sea change in thinking about work and productivity. The Hawthorne Effect is a form of reactivity and has been defined as a ‘short-term improvement caused by observing worker performance’ (Wikipedia). It has also been summarized as ‘Individual behaviors may be altered because they know they are being studied’ (Envision, 2007). Earlier researchers believed that productivity was enhanced when workers saw themselves as a part of a group but subsequently the definition was broadened. It was then believed that people’s behavior and attitude could change following any new or increased attention. 2.2 Application of theory The Hawthorne Effect took its name after the one of the most famous experiments that was conducted at Western Electric’s factory at Hawthorne, a suburb of Chicago, in the late 1920s and early 1930s. They were conducted under the supervision of Elton Mayo and the original purpose was to study the effects of physical conditions on productivity. To study this effect, one day the lighting in the work area of one group was dramatically increased while it remained unchanged in another area. The results demonstrated that the productivity in the area where lighting had been increased was much higher while it remained unchanged in the control group. The experiments concluded that it was not a change in the physical environment that was important but the fact that someone was concerned about their work place (The Economist). In other words, the interest of the management in the group made all the difference. The following conclusions could be drawn after the Hawthorne Studies (Envision, 2007): 1. The output if an individual is influenced by social factors and the aptitude of individuals are imperfect predictors of performance. 2. Informal organization affects productivity. The researchers discovered a group life among the workers. The relationship between the supervisors and the workers also influences the work output. 3. Work-group norms affect productivity. The study found that work groups arrived at a norm ‘what should be a fair day’s work,’ 4. The workplace is a social system made up of independent parts. The workers’ attitudes and effectiveness are conditioned by social demands both from inside and outside the plant. 5. Every individual has a need for recognition, security and a sense of belonging which affects morale and consequently productivity. 3. Application to a real time event/situation Every successful business and enterprise owes its success to a certain set of events or decisions. The Hawthorne effect can be applicable to organizations and in real situations as well. Managing a country requires greater insights than managing an organization. Sultan Qaboos of Oman faced the formidable task of turning a backward, impoverished country into a powerful modern state (Omanet, 2002). When he took over in 1970, the country had no relations with other Arab countries. The entire state was on the verge of collapse. He launched a drive to unify and modernize the country but he needed people to have confidence in his approach. The country was ill-equipped to meet challenges without external support. Sultan Qaboos first invited all those who had left their homeland to return to their country and join him in working together to improve the country. He recognized that he would first have to take care of the basic necessities of the people and hence focused on education and vocational training. He made the people feel important by taking care of their needs. He demonstrated exemplary leadership in all his efforts. He interacted personally with the people, which satisfy the need to belong and to be recognized. He maintains a powerful and unique relationship with his subjects. During his tours round the country he meets people spontaneously on the road. He takes suggestions from the local people and takes corrective steps also immediately. He always consults his followers before taking a decision. One of the most remarkable steps in unifying the country was to abolish the title Sultanate of Muscat and Oman. The new entity, Sultanate of Oman reflected the urgency in attaining social cohesion and national unity (Omanet, 2002a). The principles of the Hawthorne Effect are clearly visible in the transformational leadership that Sultan Qaboos has demonstrated in transforming the country. He provided security within the country; he made the people a part of his team and recognized their needs. He also recognized that he could bring about changes only when he could motivate his followers and he could achieve this through empowerment. He treated the cause and not the symptoms; he removed ignorance through education and brought them and the country out of oppression. 4.1. The Hawthorne Effect at Southwest Airlines Names and terminology may differ but the principles applied by most organizations – big or small are centered on the Hawthorne Studies. Southwest Airlines (SIA) the low-cost carrier has been used as a benchmark in its people management techniques. It has been successful in achieving excellent performance and turnaround times due to the group effort and leadership. While the airline shows its commitment to both its customers – internal as well as external – it clearly demonstrates that its employees are more important of the two (Allenbaugh, 2003). They clearly honor their employees and the following message displayed in their lobby bears testimony – ‘The people of Southwest Airlines are the creators of what we have become — and of what we will be.’ They publicly recognize the efforts of the people and attribute their success to their employees. They have personal touch even in their offices where they have displayed photographs of their employees. Because of their genuine attention to human element, they have enjoyed three continuous decades of profitability. At every step they have focused on their people – allowed them to have fun while working and they recognize that people are their greatest assets. They maintain a ‘warrior spirit’ which holds them together in challenging times. They demonstrate a spirit of partnership despite being a highly unionized organization. About 85% of their employees are affiliated to some union but the company treats every employee as part of one big family. The leadership that SIA has demonstrated is to lead by example. They said they ‘be’ the change that they want their people to be. The people do not compete against each other but work in close partnerships. Their groups are dynamic and they recognize that group cohesion is important for success. They realized that by putting their heart and soul into something they could achieve what they wanted. The organization has an absolute informal air about it. If they achieved five years of continued profitability, they were promised that they could wear casual clothes and an aircraft would carry the names of all the employees. The organization has maintained its promise as the employees through group efforts have achieved the mission. The warrior spirit in them makes them seek higher challenges and bigger victories. The Hawthorne Effect can clearly be visible in this organization which marches ahead amidst challenges and the right leadership. They know great teams can deliver impressive results. 4.2 The Hawthorne Effect in Lijjat Papad Shared values and shared responsibilities can once again, even in a developing environment use the Hawthorne Effect to achieve success. This has been demonstrated by Sri Mahila Griha Udyog Lijjat Papad (Lijjat), in India. Lijjat is a proud worker cooperative family of over 40,000 bens (sisters) across 67 Branches and 35 Divisions in different states across India (Rao, 2007). It started with 7 semi-literate housewives who came together to do what they knew best – prepare what they knew best – Indian papads (crispy bread made out of lentils). Started in 1959 with a modest loan of less than one US dollar, today the cooperative boasts of sales over $68 million. They have been able to maintain profitability and, quality and growth because of the decentralized human resources strategy. The concept was meant for women who were not encouraged to work outside their home and who did not have the confidence either. The entire concept is based on the principles of decentralization and empowerment. Every woman is an owner where the profits and loss are shared. They do have a 21-member committee and supervisors but every member has been empowered to take decisions or make suggestions (Naik, 2005). Each member has the veto power and all decisions are based on consensus among members. Even if a single member raises an objection, the decision can be nullified. Production is not centralized but carried out in thousands of homes simultaneously. Each branch ensures the right quality, packaging and distribution. Raw material purchase is the only activity that is centralized and this is to ensure quality consistency. Pricing too is determined centrally. The cooperative works on the values of dignity and self-respect. They believe that every individual needs to be respected and hold his or her self in good esteem. They also believe that empowerment leads to self confidence which enhances productivity. They do not offer sympathy or pity towards any member because all are equal. They believe in each other and in each other’s ability to take the organization ahead. Quality is their mantra and they do not bother what the competitors are doing, thereby demonstrating confidence in their quality and ability. The organization realizes the need for every woman to be recognized for her work and respect at the same time. They realize that with dignity, respect and empowerment it is possible to motivate the women to earn for themselves. 4.3 Comparative study A study of a firm in a developed country and an all-woman cooperative in a developing nation has been studied to determine whether the Hawthorne Effect has been applied. The mission of both the organizations is the same – profits without compromising on quality. Each individual is held responsible for his acts and is given the due rewards and recognition. Both these organizations are employee-oriented and believe in self-respect and dignity. Both the organizations demonstrate the workplace is a social system made up of individual parts where each part is important. SIA has an informal atmosphere in the organization. The members at Lijjat too interact informally with each but being dispersed through out the nation, they generally interact only with members within the same area. Entrepreneurial leadership in both cases have enabled the two organizations to achieve their mission. 5. Leadership styles and the Hawthorne Studies concept Certain leaders succeed as leaders and others do not. This has been explained by the trait theory which identifies the personal characteristics (Knes, 2006). It presumes that a person is a born leader and takes into account the personality of the leader. Traits like intelligence, self-confidence, determination, integrity and sociability are consistent in born leaders. Qaboos has demonstrated that he is a born leader because from the time he came to power he got down to the transformation process and achieved success at a very fast pace. He possessed the determination, confidence and the intelligence to get the support and cooperation from people, to establish and steer the nation towards growth. SIA follow the principle of the great leader Mahatma Gandhi who said “Be the change you want to see in the world” (Allenbaugh, 2003). The executives at SIA lead by their own example and never imposed their own values. When asked how they had managed to achieve so much, they replied, ‘You simply ‘be’ it!” (Allenbaugh, 2003). The greatest leader of twentieth century, Mahatma Gandhi, had no political title; he commanded no army, amassed no wealth but had tremendous influence (Nazarali-Stranieri, 2005). The CEO of SIA had no idea how to run an airline when he first started but just decided to learn as he walked each step. He just wanted to be different. He recognized what people wanted and he derived power from that. Gandhi too was a transformational leader and he never imposed values. The leadership has been demonstrated by seven women in the case of Lijjat papads who had no skills but a determination to earn profits with dignity. They had been forbidden to leave the confines of their homes and hence on a paltry loan amount they managed to fend for themselves and their families. This gave them confidence to help other women in similar circumstances. They proved to be effective leaders. A leader is deemed to be effective if he can enhance the group effectiveness. Transformational leadership requires establishing one’s beliefs and values and being consistent with them (Working Futures, 2005). Such leaders have the ability to influence others and determine the course of change. They can take command of any situation. It can help to boost the morale of the employees. In transactional leadership, some sort of transaction or exchange takes place between leaders, colleagues and followers (Working Futures, 2005). In this the leaders has to ascertain what the followers will receive or not. It involves setting things right for others but serves no purpose for planned change. Transformational leadership has a long term focus and the leader is able to inspire others to act. Empowerment is a vital tool that the leader uses and the process is simplified for the followers. 6. Conclusion It can thus be concluded that the Hawthorne Effect is applied in most events, daily life situations and firms even today. Modern management jargon may be used today but the basic principles have not changed. To bring about changes requires leadership just as Mayo had undertaken the pilot study at Hawthorne. Organizations where the Hawthorne Effect can be seen are the ones that have an effective leader at the top. It requires change in the attitude towards employees – the employees are not just workers but partners, the human capital the greatest asset in today’s scenario. This implies they need to be motivated and they need to feel they are an important part of the organization. This can be found in the successful organizations round the world even today. The Hawthorne Effect can hence be applied to any situation, organization or event. 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