Ch 3 Historical Evolution of OB

1. Ch 3Historical Evolution of OB

2. Why do we need to learn history??

3. INDUSTRIAL REVOLUTION • The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the socioeconomic and cultural conditions of the times. • It began in the United Kingdom, then subsequently spread throughout Europe, North America, and eventually the world. • Starting in the later part of the 18th century, there began a transition in parts of Great Britain's previously manual labour and draft-animal–based economy towards machine-based manufacturing. • It started with the mechanization of the textile industries, the development of iron-making techniques and the increased use of refined coal. Trade expansion was enabled by the introduction of canals, improved roads and railways. • The development of all-metal machine tools in the first two decades of the 19th century facilitated the manufacture of more production machines for manufacturing in other industries. The effects spread throughout Western Europe and North America during the 19th century, eventually affecting most of the world, a process that continues as industrialization. The impact of this change on society was enormous.

4. INDUSTRIAL REVOLUTION • Industrial revolution brought materialism, discipline, monotony, boredom, impersonality and work interdependence. • The changes were brought by some great men like Robert Owen who refused to employ young children, he taught cleanliness and temperance and improved working conditions. • In 1935 Andrew Ure published his The Philosophy Of Manufactures in which he included the human factor as one of the factors of production. He provided workers with hot tea, medical treatment and sickness payments. • In India JRD Tata made many changes in working conditions and took care of his employees. www.themegallery.com

5. SCIENTIFIC MANAGEMENT • Frederick Taylor was called as the ‘ father of scientific management’. • Taylor advocated : • the selection of right people for right jobs • training them adequately • placing them in jobs in which they were best suited and • remunerating them handsomely. • Though Taylors focus was on technical efficiency but he made the management aware of the importance of human resources in an organisation. www.themegallery.com

6. THE HUMAN RELATIONS MOVEMENT • Failure of Scientific Management gave birth to the Human Relations Movement which is characterized by heavy emphasis on employee cooperation and morale. • Under this movement the people were to be treated as human beings and not as machines, listening to their needs and problems and involving them in decision making in matters relating to working conditions. • The three most important contributing factors are: (I) The great depression (II) The labor movement (III) Hawthorne studies • The positive outcome of depression was the management began to realize the importance of human resource apart from production. • The labor movement brought the strong unions existence and its desired effect on management. • Hawthorne studies dominated the all the studies undertaken and gave the study of organizational behaviour.

7. ELTON MAYO AND F.J ROETHLISBERGER AND HAWTHORNE STUDIES • Elton Mayo was known as “Father of Human Relations Approach”. • Conducted a study at Western Electric’s Hawthorne Plant between 1927 and 1933 to evaluate the attitudes and psychological reactions of workers in on-the-job situation. • The National Research Council sponsored this research in cooperation with industrial engineers. • The experiment was conducted in 4 phases: • 1. Illumination experiment • 2. Relay Assembly Test Room Experiment • 3. Interview Phase • 4. Bank Writing Observation Room experiment www.themegallery.com

8. Illumination Experiment: • Two groups were formed : 1)Experimental/test group 2)Control group • Illumination were manipulated for 1st group and for control group the illumination was stable. • 1st observation: the test groups performance improved with the increase in intensity of light which was expected. • 2nd observation: however the performance of test group steadily increased even when the light was made so dim that workers could hardly see • 3rd observation: the control groups performance tended to rise when the test groups light were altered even though control group experienced no change in illumination. * Conclusion: group’s productivity was not directly related to illumination intensity. Some other factor was influencing their performance

9. Relay Assembly Test Room Experiment • This experiment focused on working conditions, work hours and duration of rest period • Six women were selected, who worked in an assembly room called electric relay • Changes like : increased work wages, increased rest hours, decrease in duration of work were made • The need for taking permission from supervisors was also removed • Special attention from researchers and officials were introduced • Observation: the participant felt relaxed by getting more freedom and felt important • Conclusion: “The Hawthorne Effect” states that an employee picks up the productivity when given freedom, given added attention.

10. Interview Phase • Nearly 21,000 employees were interviewed • It was done for the study of the human behavior at work and how it effects productivity. BANK WIRING OBSERVATION ROOM EXPERIMENT: • 14 participants were asked to assemble telephone wiring to produce terminal banks. • No changes were made in physical working conditions and the workers were paid on the incentive pay plan (pay increases with the increase in output). • Observation: the output stayed fairly same contrary to the expectation. • Conclusion: Money is always not the factor for motivation. A person is also affected by the unity of team and social relations among team members and what team has decided.

11. The Hawthorne learning…. • Workers’ feelings and attitudes affected their work • Financial incentives weren’t the most important motivator for workers • Group norms and behavior play a critical role in behavior at work