Two approaches to post-Hawthorne research: Micro researchers studied people in groups. Macro researchers viewed leadership as a group interactive-situational phenomenon, leading to organizational behavior and organization theory.
THE EVOLUTION OF MANAGEMENT THOUGHT, 6TH EDITION Electronic Resource by: Regina Greenwood and Julia Teahen Chapter Eighteen The Social Person Era in Retrospect The Social Person Era http://www.bigfoto.com/ The Economic Environment The New Technologies The Social Environment The Political Environment The Economic Environment The 1920s were a period of prosperity, rising real wages, and low unemployment The unemployment rate in 1929 was percent Although the stock market crashed in 1929, the impact on employment came more slowly and the peak was not reached in 1933 “Darby corrected” data was used to gauge how federal and state unemployment relief programs reduced Stock Market Crash – 1929 President Hoover proposed work sharing rather than lay-offs, and this seemed to work for awhile Employee stock ownership plans were doubleedged swords; prosperity for the 1920s, but tragedy in the 1930s Herbert Hoover signing the agricultural relief bill, June 15, 1929 Hebert Hoover Library: http://www.presidentialtimeline.org/html/record.php? id=32 Stock Market Crash Attitudes toward women working outside the home changed as two wage earner families became more important http://creativecommons.org/licenses/by-sa/2.0/ Stock Market Crash Will Rogers’ made an observation that the automobiles bought during the prosperous 1920s were used to look for work in the 1930s Keynesian economics ran counter to the Protestant ethic The New Technologies Joseph Schumpeter’s (1883-1950) ideas about innovation and economic development are noteworthy Economic development came from innovation “Creative Destruction ” He favored supply side economics, not the Keynesian Joseph Schumpeter The New Technologies Spirit pf St Louis and Charles Lindberg, 1901 http://images.google.com/hosted/life Transportation, communication, and entertainment progress was apparent in automobiles, aircraft, radio, television, etc Developments in main frame computers, dry copying, polio vaccine, antibiotics, DNA, etc Public sector projects led to atomic energy; dam, road, and bridge building; the Tennessee Valley Authority, etc The Social Environment The Lynds’ study of “Middletown” found workers of the 1920s were guided by economic motives This supports, on a limited basis, the pros and cons of incentives during Robert and Helen Lynd http://speccoll.library.kent.edu/labor/R&HLynd.htm The Social Environment Social values were in transition, shifting from the Protestant work ethic to a social ethic More collective action and turning to groups for security – consistent with an emphasis in management thought during this time on social needs David C McClelland (1917-1998) David McClelland found a decline in the need for achievement and the rise of a need for affiliation David Riesman Riesman noted the shift from the innerdirected to the other-directed person Inner-directed – represented the era of laissez-faire capitalism, the Protestant Ethic, and emphasized self-direction and control Other-directed – characterized by high social mobility and by emphasis on consumption rater than production and on getting along and being accepted by others as the key to accomplishment Shift from the “invisible hand to glad hand” – shift from individualism to collectivism The Social Environment Dale Carnegie – “getting along” solution of How to Win Friends and Influence People William G Scott’s use of fictional literature to show the shift in social values toward more emphasis on the group and the The Political Environment The New Deal of F D Roosevelt promised to reshuffle society’s cards to benefit the “little people.” This brought an abundance of legislation Legislation Fair Labor Standards Act (1938) established a minimum wage of 25 cents per hour and a maximum 44 hour work week, with time and a half pay for hours over that, for covered workers The Railroad Unemployment Insurance Act (1938) Federal Anti-Injunction Act, known more commonly as the Norris-LaGuardia Act http://www.dol.gov/oasam/library/special/child/sew The National Labor Relations Act (1935) The NLRA is the most important piece of legislation for labor in U.S History Guaranteed the right to bargain collectively Guaranteed the right of self-organization This would lead to the downfall of employee representation plans Specified unfair practices of management Established the National Labor Relations Board The Wagner Act Also a critical turning point for unions… A new union, the CIO, was formed for industrial workers and enjoyed instant success Work stoppages increased from 1935-1939 and were caused primarily by the Workers Cheer End of Flint Sit Down Strike http://www.uaw.org/solidarity/03/0103/pics/fea0 8.jpg Summary of Part Three Figure 18-1 depicts the Social Person Era Mary Parker Follett bridged the Scientific Management era with the emerging group The Hawthorne Studies brought the human relations movement to the forefront Increased concern for people Calls for less rigid organizational structures View that financial motives are only one part Concern for emotion as well as efficiency The human relations movement reflected the cultural environment Summary of Part Three Two approaches to post-Hawthorne research: Micro researchers studied people in groups Macro researchers viewed leadership as a group interactive-situational phenomenon, leading to organizational behavior and organization theory Descendants of Scientific Management, like Mooney, Reiley, Davis, and Barnard, addressed new organizational issues The culture of the period, shaped by economic stress, led to a decline in the Protestant ethic and more focus on people, not production END OF PART THREE .. .Chapter Eighteen The Social Person Era in Retrospect The Social Person Era http://www.bigfoto.com/ The Economic Environment The New Technologies The Social Environment The Political... found a decline in the need for achievement and the rise of a need for affiliation David Riesman Riesman noted the shift from the innerdirected to the other-directed person Inner-directed... Summary of Part Three Figure 1 8-1 depicts the Social Person Era Mary Parker Follett bridged the Scientific Management era with the emerging group The Hawthorne Studies brought the human