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Name of the Subject: Industrial Psychology

Subject Code: NHU-301/401
Name of the Faculty: Ms. Ranju Lal
Industrial Psychology

To understand the concept of Industrial Psychology we need to look upon these two terms separately because Industrial Psychology is
a combination of two independent words:

Industry + Psychology

Industry: Industry comes from the Latin word industria, meaning "diligent activity directed to some purpose”. Although Industry is a
sector, which is a type of economic activity involved in the manufacturing of raw materials into goods and products.

Psychology: Scientific discipline that studies mental processes and behavior in humans and other animals. Literally meaning "the
study of the mind," psychology focuses on both individual and group behavior. The issues studied by psychologists cover a wide
spectrum, including learning, cognition, intelligence, motivation, emotion, perception, personality, and the extent to which individual
differences are shaped by genetics or environment. The methods used in psychological research include observation, interviews,
psychological testing, laboratory experimentation, and statistical analysis.

Psychology is a scientific study of Mental Processes, experiences and behavior in the individual’s relevant environment.

Definitions;

Blum & Naylor: Industrial Psychology is simply the application of or extension of psychological facts and principles to the problems
concerning human beings operating within the context of business and industry.

Thomas W. Harrell: Industrial Psychology is the study of people at work in industry and in business. It is the study of their aptitudes
and their qualifications for jobs.

On the basis of above mentioned definitions of Industry, Psychology & Industrial Psychology, we know the word
“Industrial” which simply pertains to activities relating to manufacturing or trade or business. The word “Psychology” denotes the
science of the nature, functions and phenomena of the mind or mental activities of a human being or simply put psychology of human
behavior. We have industrial psychology which applies the principles of psychology to understand the problem of working man in
business and industry.

As behavior is a result or product of personality and environment. It can be described by a simple equation:-

B = f (P X E)

Where, B stands for Behaviour

F stands for function
P stands for Personality
E stands for Environment
So an Industrial psychologist studies well the personalities and behavior of the workers of the organization since the
two terms have great impact on the overall well beings of its members and of the organization itself.

 Nature of Industrial Psychology:-

1. It includes the practices and principles of training in the skills and attitudes for industrial or institutional work.
2. It discovers information related to human behavior and also concerned with the application of information about human
behavior to the various problems of the human life.
3. It is concerned with the topics such as leadership, employee motivation, workgroup dynamics, communication pattern and
organization design and its effectiveness.
4. It is also recognized that psychologist develops training programs especially for technical employees, in order to bring about
the desired level of skill, including quantity and quality of output and of safety.
5. It involves the relations of individuals to individuals and of individuals to groups the work station.

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6. Finding the qualification of a person for a job – his work history, his intelligence his special attitudes, his non intellectual
personality and his interests relating these qualification to the requirement of the job, and interpreting the results are well
recognized as within the province of industrial psychology.

 Aims & Objectives of Industrial Psychology:-

1. To apply psychological concepts and methods to optimize human potential in the workshop.
2. To improve the productivity of the industry.
3. To focus on mental health and morale of employees.
4. To remove the risks to health and decrease rate of accidents.
5. To inspire about high morale and enthusiasm at work.
6. To improve working conditions this suits the employee so that they bring about total productivity in their efforts.
7. To develop good relations between employee and employers.
8. To increase the efficiency of people at work.
9. To maximize the causes of conflict, disharmony and lack of understanding.
10. To continuously increase their level of job satisfaction.
11. To determine an adequate salary or to suggest scientific principles on the basis of which an adequate salary can be
determined.
12. To retain employees and maintain a good work ethic through scientific and vocational tests.

Maier’s has therefore rightly commented, “the aim of industrial psychology is not primarily to obtain greater output, but to
give the worker greater ease at work. Ease does not mean physical ease but also mental ease.
The basic aim of industrial psychologists is therefore to help the worker to produce the maximum with minimum cost,
minimum effort and maximum comfort.

 Need & Importance of Industrial Psychology:-

There is a famous saying that “it is easier to bend a metal than bending a man.” This statement underlines importance of
industrial psychology for engineers. Machines do not work themselves; it is human who make them work. Therefore getting best
productivity at workplace cannot be ensured without understanding psychological aspects of work, workers and workplace.
We need industrial psychology because it has now been realized that human beings occupy a central place in all sorts of
industrial activities. To run an industry efficiently, smoothly and without any tension between management and workers, human
factors has to be given due consideration. This can be achieved by using the principles of psychology in industry.
Industrial psychology is important in:-

a. Understanding human relations

b. Human engineering
c. Recruitment, selection and placement
d. Development and training of personnel
e. Accident prevention
f. Promotional schemes & wages and salary administration
g. Motivation, attitude and morale.
a. Understanding human relations:-
- By understanding human relations in industrial organizations, it is possible to develop concepts and techniques of
supervision, effective leadership, motivation, etc.

b. Human Engineering:-
- Human engineering is the study of man in his work environment, his work methods, the machine design, i.e. design of the
equipment and tools used by him and the effect of work environmental conditions on his efficiency.

c. Recruitment, selection & placement:-

- Industrial facilitates the appropriate matching of the requirements of the job, with the abilities of a prosperous employee.
- This considerably reduces the cost of hiring, supervision and ultimately production.
- By using psychological tests candidates can be properly screened before recruitment.

d. Development and training of personnel:-

- Provides knowledge of individual behavior and individual differences.
- The techniques and principles of industrial psychology can be applied to train both workers as well as supervisors so that
problems of supervision do not affect productive efficiency.
- Delegation, communication, motivation and leadership training imported to mangers increase their capabilities.

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e. Accident prevention:-
- Surveys concluded that majority of the industrial accidents are preventable.
- Personal factors, such as fatigue, boredom, monotony plays an important role in accident prevention.
- Industrial psychology can not only help in identifying accident prove people but can also help in finding solutions to prevent
accidents in industrial organizations.

f. Promotional Schemes & wages and salary administration:

- Management takes decision to promote, demote, transfer or discharge personnel employed in their organization, based on the
abilities, performance and seniority of personnel.
- Techniques of performance appraisal, job evaluation and merit rating techniques of industrial psychology are the scientific
techniques for evaluating the worth of a job and the individual respectively.
- Based of these, the salary and wage-rates are fixed in the industry.

g.
Motivation, attitude and morale:-
-Industrial psychology identifies that needs, motives which drives an individual to behave in a particular manner, i.e. they are
the causes of differences in human behavior.
- Industrial psychology plays an important role in determining the financial and non-financial incentives that can be used by
industrial management.
It is clear that Industrial psychology is very important for the purpose of improving management styles to yield
maximum benefits.

 Scope & Application of Industrial Psychology:-

As Industrial psychology is related to study the behaviour of people at work which covers the whole field of
Industrial management; be it the problems linked with the industry, the development of personnel, recruitment of personnel, study of
attitude of personnel or leadership, or any other aspect which helps in enhancing the productivity of the organization and satisfaction
among members of the organization.

Thus, the scope/applications of Industrial psychology can be further divided into three major groups and their sub-groups are as
follows:-
Scope / Application of Industrial Psychology
(I) Personnel Factors (II) Organizational Factors (III) Human factors/
Ergonomics
Job Analysis Leadership Fatigue & Boredom
Recruitment Job Satisfaction Stress
Selection Employee Motivation Accident & Safety
Employee Performance appraisal Org. Communication Work Environment
& salary determination
Training and development of Conflict management Ergonomics
employees
Org. Culture
Group dynamics

(I) Personnel Factors:-

It involves study and practices in the areas as:-

 Job Analysis:-
- Process of collecting information about various components of a job.
- Duties and conditions of work and individual qualifications of the worker.
 Recruitment:-
- Process of attracting, screening and selecting qualified people for the job.
 Selection:-
- Picking right applicants from a pool of job applicants, who have the appropriate qualifications and competency to do the job
in the organization.
 Employee performance appraisal & salary administration:-
- Process of obtaining, analyzing and recording information about the relative worth of an employee.
 Training and development of employees:-
- Training and development is an attempt to improve a current or future employee’s performance by increasing the employee’s
ability to perform through learning, usually by changing the employee’s attitude or increasing his/her skills and knowledge.

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(II) Organizational Factors:-

 Leadership:-
- Process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common
task.
 Job satisfaction:-
- Is the amount of contentment (or lack of it) arising from the interplay of the employee’s positive and negative feelings
towards his or her job.
 Employee Motivation:-
- Motivation is a term used to explain initiation, direction, maintenance & termination of activities taken up by living
organisms.
 Organizational Communication:-
- The process of exchange of information and understanding among the people of the organization.
 Conflict Management:-
- Is the practice of identifying and handling conflict in a sensible, fair and efficient manner.
- It requires such skills as effective communication, problem solving and negotiating with a focus of interests.
 Organizational Culture:-
- It controls the way they interact with each other and outside the organization.
- It is defined as the specific collection of values and norms that are shared by people and groups in an organization.
 Group Dynamics:-
- Is a socio-psychological process by which people interact face-to-face in a small group.

(III) Human Factors / Ergonomics:-

 Fatigue & Boredom:-

- Fatigue is condition characterized by the decrease in output of an activity due to previous activity and is directly proportional
to the poorness of the output.
- Boredom refers to the dull, uninterested and unfavorable state of mind or attitude of a worker towards his work.
 Stress:-
- Stress is a person’s adaptive response to a stimulus that places excessive psychological and physical demands on him or her.
 Accidents & safety:-
- It is an occurrence in an industrial establishment causing bodily injury to a person, which makes him unfit to resume his
duties in the next 48 hours.

 Work Environment:-
- Comprises of the surroundings in which a worker does his work. It includes physical, psychological or mental and social
environment
 Ergonomics:-
- It is defined as the scientific study of the relationship between man and his working environment.

 Major Problems of Employees in an Industry:-

 Resistance to change:-
- Tendency to resist change.
- Not only from the employees but from all levels of management and the employees.
- May take the form of hostility & aggression against the change itself or against the administration.

 Communication:-
- Lack of proper communication.
- Lack of proper language.
- Lack of proper communication channel.
- Language and communication should be simple that everyone can participate in problem solving.

 Role / Duties of Industrial Psychologists:-

 Advise managers
 Study workplace condition such as noise level.
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 Train employees
 Counsel employees
 Create job application guideline
 Teach managers how to interview applicants
 Give psychological tests
 Conduct market surveys
 Interpret statistics

 MAJOR INFLUENCES ON INDUSTRIAL PSYCHOLOGY

In order to get a picture of history of Major Influences on Industrial psychology we need to start with various stages such as Industrial
Revolution, Scientific management, Human relations Schools and others..

Industrial Revolution: Industrial Revolution is word used to describe a number of changes which took place in England between
1760 and 1850. The Industrial Revolution could result into increased performance and productivity. Once the productivity was
increased workers could get more wages which ultimately led to the job satisfaction among the workers. In this way new environment
was created which was very positive and this was a beginning for this psychology to be used in the industry.

The impact of Industrial Revolution on management was—

(I) Factory System— Cottage (home) system of production was replaced by the factory system.
(II) Large Scale Production— huge production of the goods became possible with the help of machines.
(III) Change of form of ownership— from a sole proprietorship firms to partnership firms which expanded into joint stock
companies.
(IV) Specialization/Division of Work—with the help of industrialization there was a need of specialization in the various
fields. There was a need for different specialized managers for each field such as purchasing, production, marketing, etc.

Thus, industrial revolution had a great impact on the nature of organization and its management. This revolution has given a start for
development of various management theories and principles.

Management approaches can be broadly categorized into two parts: Classical & Neo-Classical. These approaches forms the
“traditional school of management thought” and other approaches are considered as “modern approaches”.

Classical Theory: the classical approach is the oldest formal school of management thought. The classical theorists concentrated on
organization structure for the achievement of organizational goals and also developed certain principles of management, e.g.
Scientific Management.

Neo-Classical Theory: this approach of management put emphasis on recognition of good human relations on the organization. This
approach put stress on interpersonal communication, social relations and informal groups at the work-place, e.g. Human Relations
Approach
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 SCIENTIFIC MANAGEMENT APPROACH

The concept of Scientific Management was first of all introduced by a Mechanical Engineer Frederick Winslow Taylor (1856-1915) in
America. He is regarded as Father of Scientific Management. In 1911, F. W. Taylor published his work, “The Principles of Scientific
Management”, in which he described how the application of the scientific method to the management of workers greatly could
improve productivity.

Before Taylor business was managed by the rule of thumb, trial and error or common sense. So he advised science to be the
guiding force behind all the actions and decisions taken in an organization.

According to F. W. Taylor, “Scientific management is the substitution of exact scientific investigations and knowledge for the old
individual judgments or opinion in all matters relating to the work done in the shop”.

According to Peter F. Drucker, “the core of scientific management is the organized study of the work, the analysis of work into its
simplest elements and the systematic improvement of the workers performance of each element”.

Thus, in scientific management, the best method of doing a job is scientifically thought out, the employees are scientifically
selected and trained to perform the job and an efficient speed is scientifically determined by considering the following points:-

1. Scientific study and analysis of work.

2. Scientific selection and training of employees
3. Standardization of raw materials, working conditions and equipment.

 Principles of Scientific Management:-

1. Scientific method NOT Rule of Thumb: Taylor suggested that en effort should be made to find out what is to be done, how it
will be done, when it will be done and what tools, equipment are needed to perform it? In traditional method of management,
decisions were based on opinion, intuition, hit or loss. He replaced that with scientific investigation and analysis.
2. Co-operation between Labour and Management: in every organization, there are generally two groups of people – Management
and Worker. Workers always feel that they underpaid and overburdened with work. Management always thinks that workers are
good for nothing. Taylor insisted for change of attitude at both the levels. Taylor felt that prosperity of organization depends upon
prosperity of employer as well as employees. He describes this attitude change as “Mental Revolution”.
3. Maximum output NOT Restricted output: under scientific management, both management and worker should aim at maximum
output, not restricted output. This will be beneficial for both the parties, thus both seek to do their utmost to achieve maximum
output.
4. Equal division of responsibility: there must be equal division of responsibility between managers and workers. For instance,
management should decide the method of work, working conditions. Etc.
5. Scientific selection, training and development of workers: Taylor insisted that due care should be taken while selecting the
employee, training them to update their knowledge time to time. In addition, management should provide opportunities for
development of workers having better capabilities.

Mental revolution

Taylor suggested that whatever he has proposed will be of no use unless there is a complete Mental Revolution and the habits of
all those engaged in the management, as well as the workman change.

Mental revolution implies that there should be revolutionary changes in the attitudes of workers and management towards each
other and work. They should co-operate with each other and should not always concern on the division of profit or surplus. The
mental revolution has three elements:

a. All efforts for increase in production

b. Creation of the spirit of mutual trust and confidence;
c. Inculcating and developing the scientific attitudes towards problems.

Thus Taylor stood for creating a mental revolution on the part of management and workers. He demonstrated the possibility
and significance of the scientific analysis for the various aspects of management.

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 Techniques of Scientific Management:

In order to achieve the desired result, Taylor suggested the following techniques of scientific management:

1. Standardization of work-
- Work Study-
Method study
Motion study
Time study
Fatigue study

2. Scientific selection & Training-

- Scientific selection
- Scientific Training

3. Co-operation with workers-

- Task Idea
- Differential piece rate system

4. Division of responsibility-
- Principle of exception
- Functional foremanship

1. Standardization of Work:-
Taylor advised the standardization of work environment, methods of production, tools, equipment, cost systems and several other
items, as it has two advantages:-
a. Improves methodology of production is developed.
b. It also sets the standards which determine work performance of workers.
Various techniques of standardization of work are:-
Work Studies:
Work study investigates the work done in an organization and it aims that finding the best and most efficient way of using the
available resources i.e. man, material, money and machinery.

Aspects of Work Study

Method Study

Motion Study

Time Study

Fatigue Study

 Method Study
it is defined as the systematic investigation of the existing method of doing a job in order to develop an easy, effective, efficient
and less fatiguing procedure for doing the same job at lower cost.

 Motion Study
Every action requires certain motions, such as moulding, holding folding, putting, fining, moving, removing, carrying and pressing
etc. The purpose of the motion study is to eliminate unnecessary motions and uses human effort more effectively.

THERBLIG: the term Therblig was coined by Frank and Lilian Gilbreth for their system of analysing the motions involved in
performing a task.

This identification of individual motions, as well as moments of delay in the process, designed to find unnecessary or inefficient
motions and to utilise or eliminate even split-seconds of wasted time is called Therblig. Gilbreth spelled backwards with ‘th treated,
as one letter becomes Therblig.
Every Therblig is represented by a symbol, a definite colour and with a word or two to record the same.

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 Time Study

It is the study to find out minimum time required to do a job, once the best way of doing a job is determined. It is used to determine
the standard time to do a job. It helps to determine a fair day’s work of worker.

 Fatigue Study

It is the study to find out a method of doing work which causes minimum fatigue to workers so that they can maintain their operational
efficiency. It determines both, mental and physical fatigue caused by working conditions and monotonous job (due to specialization).
Fatigue study is in precise sense a part of Motion Study.

2. Scientific selection & Training-

In the past, worker chose his own work and trained himself, as best as he could. But Taylor introduced the principal of scientific
selection and then training, teaching and developing the workman.

All the men, who refused to, or were unable to adopt the best methods, were eliminated. He explained the two processes as follows:

a) Scientific Selection: When person are recruited for a particular job, it should be based on work i.e. one must have similar
education and experience that is required for the work and workers must have same tastes and preferences with which work is
concerned. In other words- Right Men for Right Job.

b) Scientific Training: Training is introduced to develop skills in artificial conditions which eliminated possibilities of time, money
and raw material wastage. By this process, the standardization of work and scientific selection were brought together.

3. Co-Operation with Worker:-

This principle was introduced so that the first two principle could be followed i.e. management should co-operate with the
workers to ensure that all the work is being done in accordance with the principals of science which have been developed.

a) Task Idea: Taylor suggested that planning part of the function must be separated from the execution part of the task. Planning
department should plan the detailed instructions for the worker as to the type, quality, shape and quality of the product they want
to produce.

Taylor said- The work of each worker should be fully planned out by the management at least one day in advance, the each
worker should receive in most cases, complete written instructions, describing in detail the task which he is to accomplish, as
well as the means to be used in doing the work. The work planned in such a way constitutes a task which is to be solved, not by
the worker alone, but almost in all cases, by the joint effort of the worker and the management. This task specifies not only what
is to be done, but how is to be done and the exact time allowed for doing it. And whenever the worker succeeds in doing his task
right and within the time specified, he gets additional money.

b) Differential Piece-Rate System:

Taylor introduces this plan to attract and motivate highly efficient workers. Under this plan two different wages were fixed for
efficient and inefficient workers. Those who failed in attaining the standard he should be given lower price rate and those
exceeding the standard or just attaining the standard were to get a higher rate. e.g: the standard is fixed at 50 units per day and
piece rate are Rs 5 and Rs 6 per unit. If a worker produces say 50 units he gets

50 x 6 = 300 Rs per day

And if he produces less than 50 say 49, he gets-

49 x 5 = 245 Rs per day

4. Division of Responsibility:

a) Principal of Exception: If anything occurs in the organization functionality, i.e. which is not routine activity or which in
innovative or creative, it should be undertaken by management.

b) Functional Foremanship: Taylor developed this concept in order to apply specialization at supervisor level. Under this, system
planning and execution are separated from each other and the job of planning in entrusted to a specialized planning department. As
a single supervisor cannot be executed to be an expert in all the aspect of work, therefore, Taylor suggested different experts in

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different phase of the job. He advocated appointment of 8 foreman, 4 of them being responsible for planning the work and 4
concerned with the execution of work.

Factory Manager

Planning In charge Production In charge

Instruction Route Time & Disciplinarian Speed Gang Repair Inspector

Card clerk clerk cost clerk Boss Boss Boss

Worker

A brief description of eight functional specialists recommended by Taylor is given below:-

a) Four Foreman at Management Level (Planning-in-Charge):-

i. Instruction Card Clerk: - workers have to follow his instructions in completing the tasks assigned to them. He instructs the
workers about exact manner of doing the work.
ii. Route Clerk: - he is a technical expert to design the route through which the raw materials have to pass in the process of their
conversion into finished products.
iii. Time & Cost Clerk: - he is the one who generally decide the time required within specific work has to be done. He lays down the
schedule of work.
iv. Disciplinarian: - he is the one who manages orderliness and discipline in the factory. He is responsible for workers good
character.

b) Four Foreman at Execution Level (Production-in-Charge):-

v. Speed Boss: - He guides the worker that how best they can do their jobs and also determines at what speed the work should be
done for the efficient completion of the worker. He examines worker speed in operating the machine and training out the planned
output as per schedule.
vi. Gang Boss: - the main duty of Gang Boss is to keep the stage ready for work performance. He is responsible for setting the
machines, placing the tools and guiding the worker in proper arrangement of the job.
vii. Repair Boss: - As name suggests, he is one who is responsible of up keeping the machine and equipment in an efficient and
working order. He cleans the machine, keeps it free from dust, rust and scratches, oiling it properly, and repairs it and so on.
viii. Inspector: - he checks the quality of work turned out by the workers.

Taylor developed the concept of functional authority as a basic theme of Scientific Management to replace the traditional line
organization. He felt that one foreman can’t manage all the aspects of production work for directing a group of workers as he cannot
has knowledge and skill in all the aspects.

Contributions / Benefits / Advantages of Scientific Management:-

 Proper selection and training of the worker leading to better workforce.

 Maintains better relationship between labour and management.
 Replacement of traditional rule of thumb by scientific management.
 Standardization of tools, equipment, materials, and work methods for increasing efficiency.
 Reduction of chances of accidents with the help of detailed instructions and constant guidance provided.

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 Incentives wages to the workers for higher production.

 Better quality product at the lower cost to the people.
 Industrial peace in the country.
 Technological development due to scientific investigation.

Criticism / Disadvantages of Scientific Management:-

a) Mechanistic View
b) Monetary Motivation
c) Excessive Control
d) Monotony
e) No Initiation
f) Exploitation
g) Initial investment
h) Reconstructing
i) Functional Foremanship

a) Mechanistic View:
It is believed to consider man as merely a ‘cog in the machine’. This approach rates efficiency on the basis of machine functioning.
This is a mechanistic view, which the psychologists says, cannot be applied to human beings as it carries emotion and is driven by
social and psychological factors too.
b) Monetary Motivation:-
As per Taylor, productivity of labour can be increased by increasing rates of incentives and it has no limits. Virtually, though the
man gets motivation from money, but it works only up to a certain level, beyond which behavioural factors operate.

c) Excessive Control:-
The concept of Functional Foremanship no doubt incorporates specialism in functionalism, but violates the principle of unity of
command and if unity of command is jeopardized, authority would be undermined.

d) Monotony:-
Taylor didn’t consider job enlargement for workers. This resulted in monotony and workers felt bored sometimes doing the same
job which resulted in decrease in efficiency.

e) No Initiation:-
Workers were not as there were no rooms for their initiation. They were to strictly follow what was planned.

f) Exploitation:-
Workers feel that Scientific Management is a clever device for the exploitation of the workers. Workers think that their wages do
not rise in the same proportion in which their productivity increases.

g) Initial investment:-
Management was against Scientific Management because of the high initial investment which was required, to standardize the
work, train the employees, improve working conditions, etc.

h) Reconstructing:-
Time involved in introducing Scientific Management to restructure the whole industrial unit would be large and the organization
would have to suffer huge losses due to stopping of work.

i) Functional Foremanship:-
Employers thought that this principle was not practical as one worker reporting to eight foremen may create a problem for the
worker to satisfy all of them.

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Conclusion:- after the discussion on benefits and criticism of Scientific Management we can say that F. W. Taylor said more about
Industrial Engineering then Management. For instance, it focuses more on Production area of business rather marketing, financing,
purchasing, sales, etc. too much attention on the decision making from higher level and repetitive work from the workers. The
separation of thinking from doing is also objectionable. It’s like function of eating and digesting should be performed by two separate
bodies.

 HAWTHORNE STUDIES

In 1927, a group of researchers led by George Elton Mayo at the Harvard Business School were invited to join in the studies
at the Hawthorne Works at Western Electrical Company, Chicago. The experiments last up to 1932. They conducted some
experiments, known as Hawthorne Experiments to investigate issues such as the effect of lighting level, work schedule, wages,
temperature, informal grouping and relationships, rest pauses, etc.

Elton Mayo is commonly known as “Father of Human Relations school”.

The Hawthorne studies can be divided into five major studies as under: -

1. Illumination Experiments
2. Relay Assembly Test Room
3. Mass interviewing program
4. Bank wiring observation room
5. Personal counseling

Study 1: Illumination Experiments:- The aim of these experiments was to establish relationship between work output and
illumination in the factory. From the different studies related to variation in illumination increment /decrement, it was finally noted
that the production of the workers increased invariably with and without the increment of illumination.

The confusing result obtained from these five studies led to the apprehension of the operation of some on-material factors.
The result led to the second study, i.e. Relay Assembly Test Room Study.

Study 2: Relay Assembly Test Room Study:- In this experiment several new elements were introduced to a small homogenous work
group of girls, i.e. shorter working hours, rest pauses, improved physical conditions, friendly and informal supervision, free social
interaction among group member s, etc.

The main result of this test was to demonstrate the importance of employee attitudes. It was realized that on the basis of effect of one
single factor, the work performance could not be predicted. Management also realized the importance of gaining more knowledge
about employee attitudes led to study III.

Study 3: Mass Interview Program:- In this study researchers interview large number of workers with regard o their opinion o
work, working conditions and supervision. In the starting, a direct approach was used whereby interviewers asked questions
considered important by researches and managers.

Later this approached by an indirect technique where the interviews simply listen to what the employees had to say. From this study it
followed that information should be obtained not only about the individual’s attitudes and opinions but also about the social groups
that existed. These social groups could exercise considerable control over the work behavior of the individual member. Due to this
fourth study was started.

Study 4: Bank wiring observation room:- The aim of this study was to obtain more exact information about social groups within
the company. Though management knew nothing about such groups, yet such groups existed in all large and small companies. This
was the first time management knew that such groups had its attitudes towards production and management rules.

Study 5: Personnel Counseling:- This study has two –fold objectives:- (i) to have a o-authoritative and important agency
employees to diagnose their problems and works with supervisors o their method of supervision. (ii) to improve the method of
communication within the company. The study started and led to improvement in three fields:-

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a. Personal adjustments
b. Supervisor-employee relations
c. Employee-management relations

Employee showed freedom from anxiety and other form of behavior that might be diagnosed as psychoneurosis. Thus proper
understanding is required which would result in lss friction between management and workers.

Findings / Features of Hawthorne Studies:-

1. An organization is a psycho-social system not just a techno-economic system.

2. The employees can be motivated by psychological and social needs because his behavior is influenced by feeling, emotions
and attitudes. Thus economic incentives are not at all the only method to motivate people.
3. Management must learn to develop co-operative attitude and not rely merely on commands.
4. Productivity is linked with employee satisfaction in business organization,
5. Group psychology plays an important role in any business organization so we must rely more on informal group formation.
6. Workers respond to the total work situation. Their behavior and performance are conditioned by factors inside and outside
the work.

Human Relations School

The findings of the Hawthorne studies put emphasis on the basic conclusion that is sociological and psychological phenomenon often
exerted greater influences on output than the physical conditions of work. Therefore management must be mainly concerned with the
informal spontaneous behavior of work groups and the sentiments and attitudes of employees. These thought led to a new school of
thought which is called the HUMAN RELATIONS SCHOOL of MANAGEMENT.

Factors affecting Human Relations:

Organization should be viewed as a social system. Human relations in the organizations are determined by the individual, work group,
leader and work environment as shown:-

Individual Work Environment

Work Group Leader

Individual: the individual is an important and unique element. Individual’s behavior is affected by feeling, emotions, values and
attitudes. Motivation of employees depends upon their economic, social and psychological needs thus it is a complex process.

Work Group: it is the main study area of human relations approach. The Hawthorne study showed that the informal groups exert
great influence over the behavior patterns of workers.

Work Environment: human relationists gave much emphasis on the creation of positive work environment which will make
employees satisfied and this will improve their performance.

Leader: the human relationists gave importance to leadership because a supervisor can contribute significantly in increasing
productivity by providing a free, happy and pleasant work environment.

The summary of human relations philosophy is to cultivate and develop an environment where the employees as individuals
and in groups, would wish to contribute their best to the organization goals.

Unit-I: Introduction of Industrial Psychology Ranju Lal

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 Contributions of Human Relations Approach

1. Social System: the organization is a social system where worker has to follow its own norms determined by their co-workers. This
defines the proper amount of work, rather than try to achieve the targets. This would have helped them to earn as much as they
physically can.

2. Informal Organization: the informal organization does also exist within the frame work of formal organization. It affects and is
affected by the formal organization.

3. Group dynamics: at any workplace, workers often react as a member of a particular group. The group plays an important role in
determining the attitudes ad performance of an individual worker.

4. Informal Leader: the informal leader sets and enforces group norms. He helps the worker to function as a social group.

5. Two-way communication: two-way communication is necessary because it carries necessary information downwards for the
proper functioning of the organization. It also transmits the feelings and sentiments of people upwards in the organization.

6. Non-economic reward: money is a motivator, but not a sole-motivator. Socio-psychological factors are also major motivators.

 Critical evaluation of Human Relations Approach

1. Wrong interpretation: it is critically believed that vast difference between the bank wiring observation room and the Relay
Assembly test room results was caused by the fact that one group was male and other was female. Evidence from other sources
proves this.

2. Methodology used: methodology used at Hawthorne is clinical Insight rather than scientific evidence, validity of which is
questioned.

3. Over-emphasis on Psychological aspects: it is believed that the actual work was ignored by human relationists and they were
completely people-centric.

4. Happiness vs. Productivity: Neo-Classicists considered that happiness of the employees was directly proportional to the
productivity, but it was proved later that there is no direct relationship between them.

5. Constrained Applicability: this theory is not considered to be universal as practically there are many environmental and work
conditions which have not been considered and thus it could not be applied to all organizations.

P.S. : IMPLICATIONS OF INDUSTRIAL PSYCHOLOGY ON MODERN INDUSTRIES (SAME AS APPLICATIONS OF

INDUSTRIAL PSYCHOLOGY)

Unit-I: Introduction of Industrial Psychology Ranju Lal