Human Relations Theory: The Hawthorne Effect
Human Relation Theory
The study was guided by Human Relations Theory introduced in 1933 by Elton Mayo. Elton
Mayo is generally seen as the founder of Industrial Sociology and the Human Relations
School of business organization. His research on groups and behavior in work has had
direct implications for management of organizations and for sociology. He studied a
spinning mill in Philadelphia and the Hawthorne works of the Western Electric Company in
Chicago. The results of Professor Elton Mayo's Hawthorne studies proved that the factors
most influencing productivity are relationships. The researchers realized productivity
increased due to relationships and being part of a supportive group where each employee's
work had a significant effect on the team output. As a side result, the researchers noticed
that the increased attention the workers received by the researchers increased motivation and
productivity, which resulted in what is the Hawthorne Effect. Human Relations has the
assumption that men have social needs desires rewarding relationships in the work place and
answers more to the peer pressure than to the superiors‟ authority and administrative control
forms its main contribution for management.
This theory explains the position of Public Universities in implementing employee relation
strategies. According to this theory, organizations need to stress on employee relations as
tools of improving t h e productivity of workers in organizations.
Concept of Employee Relations Strategies
Rose (2008) defines Employees relations as the study of the regulation of the employment
relationship between employer and employee, both collectively and individually, and the
determination of both substantive and procedural issues at industrial, organizational and
workplace levels. Sharing the same sentiments, Employee relations suggests a wider
employment canvas being covered with equal importance attached to non union employment
arrangements and white collar jobs. It is concerned with the social economic relationship
that forms and revolves around a contract between the parties to perform work in return for
employment benefits such as remuneration (Perkins & Shortland, 2006). Employee relations
shows the existence of psychological contracts that is different from any other relationships,
Lewis et al, (2003).
According to Pearce and Robinson (2009) firms actively seek good employee relations
whether or not they are bound by union contacts. Proactive steps in anticipation of employee
needs and expectations are therefore characteristic of strategic managers. Organizations
should strive to satisfy their employees with good pay, good supervision and good
stimulating work. Employee satisfaction is related to customer satisfaction. Managers
believe that employee performance is linked to loyalty and to appreciation of manager‟s
interests in employee welfare.
Concept of Employee Performance
Whereas performance refers to the act of performing; the carrying into execution or
recognizable action, achievement or accomplishment, in the undertaking of a duty,
employee performance refers to the effective discharge of one‟s duty for good results
(Munjuri & Maina 2012). Employee performance, achieved through training, refers to
immediate improvements in the knowledge, skills and abilities to carry out job related work,
and hence achieve more employee commitment towards the organizational goals (Huselid,
2015) mentioned that training should leads to the culture of enhancing learning, to raise
employee performance and ultimately higher return on investment (in training) for the firm.
The concept of performance covers both what has been achieved and how it has been
achieved (Armstrong, 2009). The management has to compare the set goals in relation to the
employee output to measure the level of performance. Performance in the corporate is
largely driven by input of employees. Employee performance has therefore become a key
concern of the management. Combined efforts of various employees performance
determines the level of an organizations level of production hence development and growth
of that organization. The continuing prosperity of a firm is likely to be enhanced by
employees who hold attitudes and expectations that are closely aligned with organizations
vision (Chew, 2005). Employees require motivation and other factors to enable them work
effectively to achieve the organizational goals.
Employee performance is higher in happy and satisfied workers and the management find it
easy to motivate high performers to attain firm targets competent to perform their jobs,
which is achieved through better training programs. Recognizing the role of training
practices, enable the top executives to create better working environment that ultimately
improves the motivational level as well as the performance of the workforce. Understanding
that sustainability is key to organizational survival is intrinsic to establishing the foundation
of performance. With this in mind, it is only reasonable to assume that organizational
survival can be predicated on the performance of its human capital. Human resources are a
powerful potential internal resource that fits the resource based view concept (Paauwe,
2004).
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