Course Content
Management Foundations
Management: Concept, Process, Theories, and Approaches, Management Roles and Skills
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Management Functions
Functions: Planning, Organizing, Staffing, Coordinating, and Controlling
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Managerial Economics Foundations
Managerial Economics: Concept and Importance
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National Income
National Income: Concept, Types, and Measurement
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Unit I : Evaluation
Unit I : Evaluation
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Unit I: Business Management and Managerial Economics

Elton Mayo (1880–1949), an Australian psychologist and organizational theorist, laid the foundation of  the Human Relations Theory and Behavioural Approach after conducting research at the Western Electric Hawthorne Works in Chicago between 1924 and 1932.

The Hawthorne Studies were a series of experiments that investigated how different conditions affected worker productivity. They were carried out by researchers including Elton Mayo, Fritz Roethlisberger, and William Dickson.

Key Principles of Hawthorne Studies:

  1. Social Needs Over Economic Needs:
    Mayo argued that employees are not just motivated by money (as classical management theorists like Taylor believed), but by social needs, such as feeling valued, being part of a team, and having supportive relationships at work.

  2. Importance of Informal Groups:
    Informal workplace groups significantly influence individual productivity. Peer relationships and group norms can encourage or discourage work performance.

  3. Attention Increases Productivity (Hawthorne Effect):
    When employees feel observed, involved, and cared for, their performance improves. This phenomenon, known as the Hawthorne Effect, suggests that attention and interest from management increase worker output.

  4. Communication and Participation:
    Open communication and allowing workers to participate in decision-making improves morale and cooperation, leading to better performance.

  5. Supervisor Role as Social Leader:
    Managers should not just direct tasks but also act as facilitators and leaders, showing concern for workers’ emotional and psychological needs.

Conclusion: Mayo concluded that social and psychological factors (such as the workers’ sense of belonging, relationships with peers, and managerial support) were more influential in determining productivity than just physical working conditions or financial incentives.

Impact of Mayo’s Theory:

Mayo shifted the focus from scientific management (like that of Frederick Taylor, which emphasized efficiency and control) to a more human-centered approach. His work laid the foundation for modern fields like organizational psychology, employee engagement, and HR management.