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Hawthorn Effect
– Productivity increases when workers believe they are being looked down upon.
– Employees work best when managers and co-workers make them feel important.
– Financial rewards are not associated with increasing productivity of workers.
– Employees care about self-fulfillment, independence, empowerment, social status and
personal relationships with co-workers.

Article 39: Elton Mayo (1933)
Human Relations Theory of Management
Man’s Problems of Industrial Civilization
– Humans are creatures of society and are motivated by the needs of society.
– People develop a sense of self-worth in interpersonal relationships.
– Employees are more interested in the welfare of peer groups than in financial compensation
and management controls.

– Employees respond well to the attention of managers, co-workers as well
customers.
Theory of Acceptance of Authority
Functions of Executive Council
– The objectives of the organization will be achieved and the executive authority will be accepted if
employees believe that their individual needs are being met.
Topic 40: Management Ethical Theory
– The fulfillment of the emotional needs of workers is essential for economic gain
goals.

– Employee satisfaction and working conditions are critical to the benefit of employees
production.
– Employees are strongly encouraged to work when they feel part of it again
participation in decision-making.
– Employees are looking for a variety of and challenging jobs.
– Behavioral management theory also known as human relations organization
because it speaks of the level of human activity.

– Ethics professionals view employees as individuals – the resources and assets they should be
developed and operated – not as mechanical, as in the past.
– Few people and experiments contributed to this idea

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