Transcript for:
Elton Mayo's Human Relations Theory

There’s a number of famous motivational theorists  and Elton Mayo is one of them, he developed a   theory of motivation named the Human Relations  School of Thought after conducting an experiment   with employees at a factory in Illinois. Let’s take a look at what it’s all about   and why a business should consider the theory  when attempting to motivate their employees.  First of all, it’s very important to acknowledge  that Elton Mayo was a supporter of Frederick   Taylor’s theory of motivation, known as Scientific  Management or Taylorism, within which Taylor   suggests employees are mainly motivated by pay. However, Mayo had a strong belief that employee   motivation was much more complex  than solely being influenced by money   and he wanted to find out what this was to help  businesses get the most out of their employees.  He initially thought that employee motivation  was influenced by physical factors such as   a change in working conditions,  including the amount of heating   or lighting provided in the working  environment or how rest breaks were regulated.  Therefore, during the 1920’s he set up and  conducted a series of tests known as the   Hawthorne Studies or the ‘Hawthorne Experiment’. During this experiment, Mayo separated workers   from the Hawthorne Factory based in Illinois,  into two teams with the aim of investigating   the impact of these physical factors on their  motivation levels and respective productivity.  Mayo altered the working conditions across  both teams, for example increasing the amount   of light employees were exposed too or the  length of rest breaks employees received in   one team and decreasing them in the other team. He was essentially varying the physical factors   of the working environment to see if there was  an optimum amount and if so, the impact it had   on employee’s motivation or productivity levels. Heating and working hour were additional physical   factors which Mayo adapted during the  experiment to assess their impact.  Mayo predicted that the motivation levels  of employees would decrease as the working   conditions became worse, which would then  have a negative impact on their productivity.  However, he was surprised to find that his  prediction was wrong, changes to the working   environment such as decreasing the amount of  light that employees were subjected to during   the experiment actually had no detrimental  impact on their motivation or productivity.  In fact, productivity levels improved  or at the very least remained the same.  So, Mayo had to go back to the drawing board  and started to investigate the matter further   and eventually he came to a different  conclusion than what he originally believed. He concluded that it was in fact social  factors and not physical factors which   helped to boost both the motivation  and productivity levels of employees.  What became clear during the  experiment was positive relationships   and clear communication between managers and  employees were found to be very influential   in regard to increasing employee motivation. This was because the participants started to feel   valued and appreciated as they had been selected  to take part in the experiment, it made them feel   somewhat special, which led to them forming  new relationships and increased their morale.  In the modern world, we expect businesses to  have a dedicated Human Resources department   or at least an employee responsible  for the people it employs.  However, it was the outcome of the Hawthorne  Experiment and Mayo’s Human Relations theory   that led to the development of the first ever  personnel department which was set up and   focused on the needs of employees, evolving  into what we know today as Human Resources.  Following this, Mayo suggested that managers  should be more involved in employee’s working   lives and the workforce should be structured so  employees are working in teams where possible   rather than in isolation to increase  social interaction in the workplace.  Essentially, Mayo believed that employees  should be treated more like humans than robots,   and managers should take greater interest  in them as people who have valuable opinions   and are naturally social beings. Following the Hawthorne Experiment,   the term ‘Hawthorne Effect’ was formed, this  became a term to classify the relationship   between the attention employees receive  and the amount of work they produce.  Put simply, the more attention they receive,  the more valuable they feel, and the more   productive they become or at the very least,  individuals alter an aspect of their behaviour   when they become aware, they are being observed. However, the Hawthorne Effect has faced criticism   for being exaggerated and flawed, essentially  there is some truth to the Hawthorne Effect,   but how much of an impact it has  on results remain in question. So, now that we know the fundamentals  of Mayo’s Theory of Human Relations,   lets explore some of the key benefits  and drawbacks of the motivational theory   and its application in the modern business world. First of all, the theory encourages positive   workplace relationships, especially  between managers and employees.  Also, the wellbeing of employees is a central  focus and considered to be much more important   in comparison to Taylorism, prompting managers  to show a vested interest and learn more about   them as people on an individual basis. Which in turn, helps to increase the   morale of the workforce as employees  feel valued and appreciated, leading   to increased levels of employee: morale,  retention, motivation, and productivity. However, Mayo’s theory of Human  Relations has faced criticism in the past   and it’s very important to understand why. Firstly, the theory of Human Relations is   primarily based on the outcome  of the Hawthorne Experiment   which was conducted by Elton Mayo and many critics  suggest this was unscientific in its design   and lacks sufficient supportive evidence  to justify the conclusions that were drawn.  Arguing, that the selection of work and the  environment the experiment took place in were   both unscientific, and the number of participants  selected for the experiment was too small.  Furthermore, conflict in the workplace is almost  inevitable and often required for progress, yet   critics suggest the theory is based on employees  and managers simply co-operating with one another.   With no thought of the potential for conflict to  happen and how it could impact the motivation and   productivity levels of employees if it did. Another key critique to consider is how the   theory oversimplifies human behaviour as it  assumes satisfied workers will automatically be   productive workers, which is simply not true. There is evidence to support social factors   helping to positively influence motivation and  productivity, however there is also a vast array   of additional factors which contribute to  every employee in the workplace and these   are simply overlooked by Elton Mayo. Leading critics to compare the theory   with the assumption that a satisfied cow would  produce more milk and pay no consideration   to any other variable. So that’s it, Elton Mayo’s   Human Relations School of Thought. I hope you’ve found the video useful,   if you have, don’t forget to like the video  and subscribe to Two Teachers YouTube channel   for lots more Business Studies content. Thanks for listening and all the best