HRM theories and their impact on productivity
Human resource theories are the strategies, tactics, and
objectives used by business owners and managers to administer employee
procedures and policies. Human resource theories describe how management
practices and structures can have a positive or negative impact on employee
behavior (peoplehum,2022). Hawthorne Effect is one of such a practice to
changing of behavior due to an awareness of being observed.
What is Hawthorne Effect?
The Hawthorne Effect is used to explain a change in an individual's behavior as aresult of their awareness of being observed. According to the Hawthorne effect, employees prefer to alter their conduct at work in reaction to the attention they receive from their supervisor. The Hawthorne Effect was named after industrial tests conducted in the Chicago area of Hawthorne (now Cicero) in the 1920s and 1930s.
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| (Source: Mibusiness,2017) |
Douglas McGregor, a management theorist, suggested Theory X
and Theory Y. Both theories assume that in order to be productive, management
must coordinate all parts of the value delivery process (Jason, 2022).
What is Theory X and Theory Y?
Theory X and Theory Y are both motivational ideas. Managers use both theories, which are very distinct from one another, to motivate their workers. Theory X emphasizes oversight, whereas Theory Y emphasizes rewards and acknowledgment (The economic times,2023).
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| (Source: Project Cubicle,2007) |
Theory X:This approach believes that some employees are indolent or unmotivated by their job (in reality, they dislike it), unambitious, avoid responsibility, are self-centered, unconcerned about company goals, and prefer to be guided. In such a case, supervisors should encourage the employee through specific instructions, closely monitor their efforts, and take appropriate measures to motivate (via incentive or discipline) (Jason, 2022).
Theory Y: believes that subordinates are self-motivated, innovative, desire accountability (leadership positions), and self-directed. Leaders must react with a participatory management approach. As a result, threats of penalties are far less successful in motivating employees. Furthermore, the employee is committed to a goal that is founded on rewards - though they may react to various kinds of rewards (Jason, 2022).
Example of applying this theory X and Y in a business setting :
Mr: Mo works as a factory's production manager. He is in charge
of moving 400 parts off his manufacturing line each week. His supervisor
informs him that if he can up the ante and create 100 more parts per week
(while passing the quality checks), his workers will be paid an additional £50
that month. If they fail to reach the new target, they will be
subjected to an HR review. MO's team is primarily motivated by
rewards, so the majority of his team is effective, meets the criteria, and receives
a bonus. However, two employees failed to reach the goals.
One was a new employee who required additional instruction. MO suspects the other employee is searching for another job
because he wants to advance in his career. The new goal, which provided a
short-term incentive, demotivated the employee who desired a more significant,
long-term incentive (Matthew,2021).
Fordism and Scientific Management are terms used for describing management that was applied to real-world situations with significant outcomes. Fordism is named after Henry Ford's mass production units and is distinguished by an involved technical division of labor within businesses and their production units (123helpme,2000)
Fordism theory of management?
Advantages of Fordism:
- This manufacturing method enabled businesses to produce products in minimum time.
- To reduce absenteeism caused by employees becoming bored with the repetition of the same job, workers were paid well to increase their motivation, which worked by 400%.
- Large complex tasks can be broken down into smaller tasks before being assembled using the Fordism method, making them more efficient and faster.
- The fragmentation of tasks facilitates the identification of any production problem, which increases efficiency because problems can be addressed quickly (Financial Falconet,2023).
Disadvantages of
Fordism:
- It necessitates a significant financial investment.
- Workers may become bored performing repetitive duties if wages are low, which results to absenteeism.
- Despite the fact that Fordism fragmented big parts of production into smaller, more efficient tasks, it also created a demand for workers and new skills.
- The Fordism principle's interdependence of tasks makes it extremely vulnerable to breakdown if any of the processes is disrupted.
- It can result in worker fatigue and decreased inventiveness. It does not allow workers to rest, and being focused on one job does not allow for the learning of new techniques (Financial Falconet,2023).
Why did Fordism fail?
Many factors led to Fordism's demise. Some of the reasons
were Ford's failure to continue paying high wages for an extended period of time
due to inflation eroding wage gains and also limiting the market for his cars
Another major reason why Fordism failed is the resistance of
the workers. This resistance was caused by the intensification of labor brought
about by Henry Ford in order to match the growing competition while at the same
time cutting costs by reducing wages
In future articles, I hope to debate and write about more HRM theories that are applicable in real-world business situations. Thank you so much for reading my blog; I plan to cover strategic HRM in my next article.
REFERENCES
Financial falconet
(2023) Fordism definition and examples.
[online] Nigeria:Financial falconet.Availablefromhttps://www.financialfalconet.com/fordism-definition-examples-fordist-theory/#:~:text=Fordism%20is%20a%20production%20system,to%20follow%20a%20set%20schedule. [Accessed 3 April 2023].
Jason, G. (2022) Theory X and Theory Y of Motivation -
Explained. [online] US:The businessprofessor.Availablefromhttps://thebusinessprofessor.com/en_US/management-leadership-organizational-behavior/theory-x-and-theory-y-of-motivation
[Accessed 3 April 2023].
Matthew, C. (2021) McGregor’s Theory X Vs Theory Y: How To
Increase Performance In YourTeam[blogentry]14October.Wales:TSWTraining.Availablefromhttps://www.tsw.co.uk/blog/leadership-and-management/mcgregors-theory-x-vs-theory-y/ [Accessed 3 April 2023].
Peoplehum(2022)HRTheories.[online]Mumbai:peoplehum.Availablefrom https://www.peoplehum.com/glossary/hr-theories#:~:text=Human%20Resource%20theories%20is%20a,a%20favourable%20or%20bad%20way
[Accessed 3 April 2023].
The economic times
(2023) What is 'Theory X & theory Y'.[press
release] 2 April. Availablefromhttps://economictimes.indiatimes.com/definition/theory-x-theory-y
[Accessed 3 April 2023].
123helpme (2000) Fordism is the Scientific Management for
Contemporary Organizations. [online] Available from https://www.123helpme.com/essay/Fordism-is-the-Scientific-Management-for-Contemporary-131242
[Accessed 3 April 2023].
Detailed article. Theories very interestingly described. Division of labour contributes to many benefits such as increased efficiency, productivity, specialization, cost savings, and standardization. it can also have negative consequences such as monotony, limited skill development, interdependence, dependence on individuals, rigidity, and employee turnover. However proper work allocation (rotation basis so all employees can work on all tasks) and training on all aspects of work can overcome these consequences. What is your view point on this ?
ReplyDeleteThank you very much for your insightful feedback Kabilashini. Yes, my approach is Job Rotation Theory, which is described under Job Design Methods. Job rotation is a method in which employees rotate between two or more positions within the same organization. Employees rotate to a different employment for a length of time before returning to their initial post. Employees usually move from one position to the next. Employees acquire expertise and abilities by taking on new responsibilities in a job rotation scheme. Rotations are intended to increase employee independence, involvement, and retention.
DeleteThe Hawthorne studies demonstrated that social issues and job satisfaction affect people's performance at work and that satisfying a person's need and desire to belong to a group is more essential for improving employee productivity than financial incentives and favorable working circumstances.
ReplyDeleteEven though the Hawthorne experiments highlighted the significance of social variables in output, they are not without flaws. Some behavioral scientists have heavily criticized the studies due to the lack of scientific objectivity used in drawing various conclusions, what is your opinion?
Thank you Asanka.The Hawthorne Effect is one such technique of changing behavior as a result of being aware of being observed. However, subsequent investigations by various researchers revealed that being the subjects of a study and getting increased attention from supervisors can only result in a short-term rise in labor productivity. (corporate finance institute, 2022).
DeleteAccording to Rowe ,R,H (2019), HR theories aim to achieve two primary outcomes: more efficient and effective job performance and increased worker motivation or commitment. One efficiency theorist, Henri Fayol, argued that workers function more efficiently when management is more efficient. From this theory emerged the four functions of management: planning, organizing, leading and controlling. Another efficiency expert was Frederick Taylor, whose theory resulted in jobs being designed to require fewer movements and a piece-rate pay system for factory workers.
ReplyDeleteThank You Ridma! Correct, it discribe under the Theories of Performance. According to Motivational Theories, Abraham Maslow developed one of the first concepts about what motivates people. Human beings, according to Maslow, have requirements that are arranged into a hierarchy, as illustrated by a pyramid. The bottom of the pyramid's fundamental requirements, such as food and shelter, must be fulfilled first. Once these fundamental requirements are met, employees strive to feel secure (such as employment security), loved (friendships and relationships), accomplished (such as through recognition or a job well done), and ultimately, self-actualization. (work that is personally fulfilling).
DeleteThere are other reasons for Fordism failure, like 1.Globalization: As other countries began to develop their own manufacturing capabilities, companies like Ford faced increasing competition from overseas. 2.Technological change: New technologies like computerization and automation made it possible for companies to produce goods more efficiently, which threatened the traditional Fordism model of production. (Peck, 1996)
ReplyDeleteShadeer, Really thank you. When it comes to the Ford vehicle manufacturer, you are correct. Ford was dealing with a more difficult operating environment, which included rising incentives, declining demand in North America, higher commodity costs, and more investment to grow its line of electric vehicles, all of which resulted in poor outcomes.
DeleteYour article oriented appropriate theories of HRM . Human Resource theories is a general term for the strategies, tactics and objectives used by business owners and managers to administer policies and procedures related to employees. Human resource theories explain how management practices and structures can influence employee behavior in a favorable or bad way. Systems theory states that organizational success relies on synergy, interrelations and interdependence between different subsystems. As arguably the most valuable component of a company, employees make up various vital subsystems within an organization. Human resources theory is a general term for the strategies, tactics and objectives used by business owners and managers to administer policies and procedures related to employees. While the specific human resource management objectives will vary between organizations depending on their particular needs and composition of the workforce, there are several major objectives of HRM that are generally seen to be important.
ReplyDeleteThank you for your insightful comment and for highlighting the importance of HRM theories in managing employees. As you rightly mentioned, HRM theories provide strategies and tactics for business owners and managers to administer policies and procedures related to employees. The systems theory perspective you mentioned is also relevant in understanding how different subsystems in an organization, including employees, can work together to achieve organizational success.
DeleteIn terms of the major objectives of HRM, there are several different frameworks that have been proposed in the literature. One commonly cited framework is the Harvard model of HRM, which identifies four key objectives: situational factors, stakeholder interests, HRM policy choices, and HR outcomes (Beer et al., 1984). This model emphasizes the importance of aligning HR policies with the needs of the organization and its stakeholders, and measuring HR outcomes in terms of employee satisfaction, motivation, and productivity.
Another framework that is often used to describe the objectives of HRM is the SHRM model, which emphasizes the role of HR in achieving the overall strategic goals of the organization (Jackson et al., 2014). This model emphasizes the importance of HR practices in supporting organizational competitiveness, innovation, and agility, as well as creating a positive work environment for employees.
Overall, HRM theories provide valuable insights into how organizations can effectively manage their human capital to achieve their goals. By understanding the different perspectives and frameworks in HRM, managers can develop effective HR strategies and policies that align with the needs of their organization and its employees
Great article! Hawthorne Effect is a phenomenon that cannot be ignored (Roethlisberger & Dickson, 1939). This effect highlights the powerful impact that a positive work environment can have on employee productivity. By making small changes in the workplace, such as increasing the amount of natural light or providing more comfortable chairs, employers can create a more conducive work environment that can lead to significant improvements in productivity. In short, the Hawthorne Effect is a reminder that taking care of employees and their needs is a key component of a successful HRM strategy.
ReplyDeleteThank you for your comment on the article. You have rightly pointed out the importance of the Hawthorne Effect in understanding the impact of positive work environment on employee productivity. This concept was first introduced by Roethlisberger and Dickson in their study conducted at the Hawthorne Works of the Western Electric Company in the 1930s.
DeleteSeveral studies have since then replicated and built upon the findings of the Hawthorne Effect. For instance, a study by Oldham and Hackman (2010) found that when employees perceive their work as meaningful and have autonomy over it, they are more likely to experience job satisfaction and higher levels of productivity. Similarly, a meta-analysis by Judge et al. (2001) found that job satisfaction has a positive effect on job performance.
Human resource managed theories explain how management practices and structures can influence employee behaviour is a favourable or bad way. Small business owners can optimise staff productivity and creatively while reducing employee turnover by having a basic understanding of organizational behaviour and HR theories and acting on it. HRM theories is the general term of the strategies, tactics and objectives used by business owners and managers to administered policies and procedures related employees. Howthorn theory - supposed inclination of people who are the subjects of an experiment or study to change or improve the behaviour begin evaluated., Theory X and Theory X - understanding people's motivations. Clear article. Check this two links https://www.mindtools.com/adi3nc1/theory-x-and-theory-y and https://www.investopedia.com/terms/h/hawthorne-effect.asp
ReplyDeleteThank you for sharing your thoughts on the importance of HRM theories for small business owners to optimise staff productivity and reduce employee turnover. You also mentioned two specific theories, the Hawthorne Effect and Theory X and Theory Y.
DeleteThe Hawthorne Effect refers to the tendency of individuals to improve their performance when they know they are being observed (Investopedia, 2022). This theory emerged from a series of studies conducted at the Hawthorne Works plant of Western Electric Company in the 1920s, which found that productivity increased regardless of the working conditions being manipulated. The Hawthorne Effect can be applied to HRM by emphasising the importance of employee engagement and communication, as well as the impact of work environment and social factors on employee behavior.