Weber’s theory is criticized by a large number of researchers. One such researcher is Elton Mayo from the Harvard Business School. Mayo worked on developing the relationship between healthy work environment and incentive and morale rather than just higher wages. With the advent of time, behavioral management theory was developed that stresses mainly on the psychology and relations of the humans. The theory was presented by Mary Parker Follet in 1941 who emphasized on letting the workers participate rather than dictating them. The Behavioral management proposes that the managers must not limit the employees by analyzing their skills and choosing jobs for them but they should allow employees to participate in the process as employees understand their jobs and skills the best. There is greater emphasis on the “cross-functioning” under which the members of different departments work together in order to complete a project. Work of Elton Mayo is also significant in this regard.

In Hawthorne Studies in 1933, Mayo suggested that the productivity of workers is affected by their attitudes towards the managers McGregor in 1960 gave two sets of assumptions opposite to each other where Theory X relates to the employees who dislike work, avoid responsibility and are lazy. Such employees need supervision and control. On the other hand, another set relates to Theory Y under which employees included are those who seek initiative, are willing to work and are motivated by the responsibility as also evident under the Maslow’s Hierarchy of Needs presented in 1954. Herzberg studies conducted in 1959 focused more on the satisfaction of work while also identifying the factors leading to dissatisfaction and increase satisfaction known as hygiene factors and motivators respectively.

The studies carried out in the 1930s revealed that it is not always the result that the people carry out required orders but they can also resist and obstruct the aims of the organizations. Thus, there were important implications for the organization theory that were recognition of informal structures. For this purpose, Mayo developed Human relations theory in which he placed a premium on the needs of the workers in order to reconcile the formal organization with the informal structure. The theory suggested that it is possible to attain and improve the job satisfaction levels without undermining the command structure in the formal organization by providing with all the needs of the employees besides salary and in terms of extensive rewards such as promotion and esteem and job enrichment. There can be inverted power relations as an alternative arrangement. Mayo also suggested that there can be solidarity to maintain particular work level and avoid particular command. Problems arise to a greater extent because of the extreme powers the manager is part of the system and he wants workers’ consensus.

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