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The implication of Hawthorne Effects links to Firm’s
Performance”
Presented by:Cosmas Zeno
Yugash Chandramohan
CHAPTER ONE
INTRODUCTION
INTRODUCTIONThe study on Hawthorne effects is an interesting issue to
be discussed and reviewed at by the right personnel’s
(Spain, 2008).
The “Hawthorne Effect” is often mentioned as a possible
explanation for position in intervention studies. It is
used to cover many phenomena, not only unwitting
confounding of variables under study by the study itself,
but also behavioral change due to an awareness of being
observed, active compliance with the supposed wishes of
researchers because of special attention received, or
positive response to the stimulus being introduced.
BACKGROUND OF THE STUDY
Norman (1983) Hawthorne effect is an inevitable part of
all usability studies and is necessary mechanism for
bringing about any performance improvements.
Parson (1974) performance increases come about because
of the learning and feedback that takes place during the
experiment. Therefore, in the widest sense, any
performance benefits identified in a study actually rely on
the Hawthorne effect.
BACKGROUND OF THE STUDY
• The study examined from three different dimensions:
Observation
Working Environments
Employees Behaviors
PROBLEM STATEMENT
This research arises from the need to manages firm
performance more effectively as well as efficiently . The
global industry issues and problems demand firms to
continuously improved and remain competitive.
Therefore, it is important to study Hawthorne Effect to for
the sake of increasing in Firms performance.
OBJECTIVE OF THE STUDY
To determine whether Hawthorne Effect can improve the firm’s performance.
To identify the relationship between Hawthorne Effect and human behaviour.
To analyze the effects of Hawthorne towards environmental factors.
To differentiate the factors that related to Hawthorne Effect.
SIGNIFICANT OF THE STUDY
The findings are expected to bring advantages to
employee , employer and organization as well.
EMPLOYEE
Motivation.
Understanding on Hawthorne Effect positive impact.
Reduce turnover (job satisfaction).
SIGNIFICANT OF THE STUDY
EMPLOYER
Provide better working environments.
Better Understanding about their employees.
Interpersonal skill.
FIRM’S
Global competitive advantage.
Increase profit.
Continuous Improvement
LIMITATION OF STUDIES
• Limited to three Firm only.
• Poor quality of data(limited perception of
respondents).
• Respondents Bias.
• Constraints (time and money).
FRAMEWORK OF THE STUDY Theoretical framework of implication of Hawthorne effect
links to Firms performance.
HAWTHRONE EFFECT
EMPLOYEE BEHAVIOR
WORKING ENVIRONMENT
PRODUCTIVITY LEVEL
CHAPTER 2
LITERATURE REVIEW
This chapter gives an overview of literature to support the area of study. This chapter introduces the implication of Hawthorne links to firm performance in order to give a clear idea about the research area.
INTRODUCTION
According to Afolabi (1992) indicated that and essential aspect of research is the literature review. It is so important that without literature review, research is incomplete.
Norman (1983) Hawthorne effect is an inevitable part of all usability studies and is necessary mechanism for bringing about any performance improvements.
Performance improvements came about because the test participants believed that the changes would improve their performance and were flattered and motivated by the attention they were being given ( Mayo , 1993).
HAWTHORNE EFFECT
The Hawthorne effect is a form of reactivity, and describes a
temporary change to behavior or performance in response to
a change in the environmental conditions, with the response
being typically an improvement. The Hawthorne studies
have had a dramatic effect on management in organizations
and how people react to different situations. Hawthorne
effect is a short term improvement caused by observing
worker performance (Landsberger, 1955).
HAWTHORNE EFFECT
Introduction into a work situation of any kind of
change with employees interpreted as being directed
to improving their welfare brought about an
improvement in efficiency.’ (Davis & Shackleton,
1975). The tendency for people to behave differently
when they know they are being studied (Davis &
Shackleton).
2.1 PRODUCTIVITY LEVEL
Increase in employee productivity in response to a change
in lighting intensity and other interventions. Because these
interventions varied without the intention to increase
worker performance, Mayo argued that the increased in
productivity was the result of personal attention and of the
newness of a program Mayo (1933).
2.2 EMPLOYEE BEHAVIOR Hawthorne effects are most helpful to tenable methodological
consideration and as claim about a fundamental feature of
human behaviors. Spain, (2008).
The Hawthorne effect describes a temporary change to behavior
or performance in response to a change in the environmental
conditions. This change is typically an improvement. Proponents
of the Hawthorne effect say that people who are singled out for a
study of any kind may improve their performance or behavior
not because of any specific condition being tested, but simply
because of all attention they receive.( Rice, 1982).
Employee Morale
The Hawthorne effect phenomenon determined that the
morale and motivation of the consistently productive
control group was their impetus of production (Fry, 1989).
Employee Motivation
The original explanation suggested that the increased
in attention by management motivated employees to
increase their productivity rather than the changes in
working conditions (Roethlisberger & Dickson, 1939).
Employee cooperation
The atmosphere was one of the new employee supervision.
Group morale improved. Individuals are more likely to
come another’s assistance. Group morale improved (Davis
1974).
2.3 WORKING ENVIRONMENT
The Hawthorne effect is a form of reactivity, and describes
a temporary change to behavior or performance in
response to a change in the environmental conditions, with
the response being typically an improvement.
(Landsberger, 1995). Office layout. Necessary Tools& facilities. Safety.
CHAPTER THREE
RESEARCH METHODOLOGYThis chapter discuss about the type of research methodology being used in this research.
INTRODUCTION This section deal in detail precisely to achieving the
research objectives and will also justify the choice of method of those objectives
This chapter thus includes :
The type of research design used;
The respondents or sample and population,
Instrument for the research,
Data collection as well as data analysis to transformed
the data into meaningful information and relate to the
problem question and objective.
TYPES OF THE RESEARCH Researcher via exploratory studies trying to understand the
problem which is the implication of Hawthorne effects links to firm performance.
Exploratory research helps ensure that a rigorous and conclusive study will not begin with an inadequate understanding of the nature of the business problem.
Most exploratory research designs provide qualitative data which provides greater understanding of a concept.
In contrast, quantitative data provides precise measurement. The purpose of conducting exploratory research is to diagnosing a situation, screening alternatives and discovering new ideas.
RESEARCH TECHNIQUESurvey is the research technique that applied in this
research. Information is gathered from the sample of
respondents from three chosen company which is:
Federal Hotel, Kuala Lumpur,
Havey Norman Holdings Limited,
YPC (Malaysia) Sdn Bhd .
Therefore, questionnaire was designed to elicit information
from the respondent’s point of view regarding the
implication of Hawthorne Effect link’s to Firm’s
performance.
DESIGN OF QUESTIONNAIRE
Questionnaire was designed to meet the research objective. The
questionnaire was divided into four sections:
Background of the respondents
Hawthorne effects towards firm performance
Hawthorne effects towards employee behavior
Hawthorne effects towards working environment
Hawthorne effects links to Productivity Level
Cosmas - Survey (1).doc
DATA ANALYSIS
Researcher used (SPSS) Statistical Package For Social
Science version 16 which is found in 1968. The software
is needed to measure the data which is collected via
survey and interview.
This is important part experience by the researcher to
test the reliability of the data which is based on the
scores from the questionnaire distributed to the sample.
RELIABILITY
Reliability statistics
Reliability is the degree to which a scale or instrument
consistently measures whatever it measures. Reliability is
expressed as a coefficient between 0 and 1.00.
Cronbach’s Alpha Cronbach’s Alpha Based on
Standardized items
N of Item’s
.830 .837 4
RELIABILITY
The higher coefficient are, the more reliable the
instrument. If the value exceeds 0.6, then the scale is said
to have internal consistency, hence a set of items
considered reliable.
In this study, reliability for the instrument was estimated
by calculating a Cronbach’s alpha test. Table shows the
reliability statistics of the study. The value was exceeds 0.6,
hence the study is considered reliable.
POPULATION AND SAMPLE
The target population of this study was the
employee whose work with a firm and expose
towards Hawthorne effect within the organization.
The target population of this study is based on
three firms. However, 144 usable surveys were
compiled to make conclusions about the whole
population of the study.
DATA COLLECTIONEvent Organization Date of Questionnaire
distribution.Date Of Data Collection
1 Federal Hotel, Kuala Lumpur.(50 Respondents)
26th January 2011 30th January 2011
2 Havey Norman Holdings Limited.(44 Respondents)
26th January 2011 30th January 2011
3 YPC (Malaysia) Sdn Bhd .(50 Respondents)
26th January 2011 30th January 2011
Total 144 respondents
CHAPTER FOUR
FINDINGS AND DISCUSSION
This chapter presents the findings from the extensive analysis carried out on the data.
INTRODUCTION• Data analysis is a crucial section of methods that help to
describe facts, detect pattern, develop explanations, and test
hypotheses (Levine, 1996). (SPSS 16.0) is used to analysis the
collected data. SPSS is an acronym for statistical Package for
social science.
• This chapter presents the findings from the extensive analysis
carried out on the data; start with background of the
respondents, followed by the implication of Hawthorne effect
towards employee behavior, working environment as well as
firm productivity level. The statistics showed that there is no
missing data and the total population is 144.
RESEARCH OBJECTIVES To identify the demographic and background of the Hawthorne
Effects respondents .
To identify the relationship between Hawthorne effects and
employee productivity.
To identify the relationship between Hawthorne effects and
employee behavior.
To identify the Hawthorne effects links to working environment.
To determine among the independent variable that have the
strongest relationship with dependant variable (firm
performance).
Objective 1: To identify the demographic and background of the Hawthorne Effects respondents .
C:\Users\User\Desktop\Table 4.docx
• The study concluded that the amount of male and female
respondents is almost balance but still male workers are
dominated.
• Majority of the respondent’s race is Malay, followed by
Chinese and Indian. Other race consists of Iban,
Kadazandusun and Sino in a few amounts.
• Most of the respondents are from 20 to 30 years old.
Meanwhile this group of age category fall under general
workers.
• More than half of the respondents married.
Objective 2: To identify the relationship between Hawthorne effects and employee behavior.
Table 4.3: Distribution of Means and Standard Deviation on Hawthorne Effect towards Employee Behavior.
Descriptive Statistics
N Mean Std. Deviation
The company practices its core values
144 3.83 .784
My superior motivates me to perform better
144 3.76 .729
The company assist in my career development
144 3.91 .810
I am appreciated for a job well done
144 3.87 .722
We are treated fairly 144 3.99 .780
I am rewarded based on my performance
144 3.92 .753
Valid N (listwise) 144
As illustrated in table 4.3 shows that highest mean
is 3.9 (sd. 0.796), followed by mean 3.92 (sd.0.753)
and mean 3.91 (sd. 0.810). Meanwhile the lowest
mean is 3.76 (sd. 0.729).
The study concludes that by treated fairly, they
will perform and employees might less concern
about motivation given by their superior.
Objective 3: To identify the Hawthorne effects links with working
environment.Table 4.4: Distribution of means and Standard Deviation on relationship of Hawthorne Effects and working
Environment.
Descriptive Statistics
N Mean Std. Deviation
I am provided with the necessary tools / facilities to enable me to perform my duties
144 3.89 .777
Safety is given utmost importance to circumvent industrial accidents
144 3.69 .789
The layout of the office creates a conducive workplace
144 3.82 .825
Teamwork is encouraged at the workplace
144 3.84 .763
Valid N (listwise) 144
• In Table 4.4 shows that the highest mean is 3.89 (sd.
0.777), followed by mean 3.82 (sd. 0.825). The
lowest mean is 3.69 (sd. 0.789).
• The study concluded that the main factor that
relate between Hawthorne effect and working
environment is by providing necessary tools and
facilities to employees. Employee put safety in a
workplace as a minor concern.
Objective 4: To identify the relationship between Hawthorne effects and employee productivity.
Table 4.5: Distribution of means and Standard Deviation of relationship on Hawthorne Effects and
productivity.
Descriptive Statistics
N Mean Std. Deviation
Individual performance are measured systematically
144 3.73 .712
I am given realistic targets 144 3.53 .775
Setting performance standards improves the efficiency rate
144 3.74 .764
The company invest on Information Technology to increase productivity
144 4.01 .857
Absenteeism and sick leave is reducing
144 3.99 .815
Non-performing staff are managed accordingly
144 3.95 .839
Valid N (listwise) 144
In Table 4.4 show that the highest mean is 4.01
(sd.0.857), followed by mean 3.99 (sd. 0.815). The
lowest mean is 3.53 (sd. 0.775).
The study concluded that the main factor that relate
between Hawthorne effect and productivity level is
when the Company invest on Information
Technology to increase productivity. Employee put
realistic target as a minor concern.
CHAPTER 4
CONCLUSION AND RECOMMENDATION
This final chapter presents the conclusion; recommendations for future practice as well as recommendation for the research are made at the end of the chapter.
CONCLUSION
There is a balance in overall respondents between male
and female with majority 20 to 30 years old.
The level of education level mainly Sijil Pelajaran
Malaysia (SPM), followed by Diploma holder at the second
place.
The relationships of Hawthorne Effect towards employee
behavior are from being treated fairly by the employer as
well as the organization, meanwhile, the motivation from
superior is the minor concern of the respondents.
CONCLUSION Being provided necessary tools, equipment and facilities
that make it easiest for the employee to perform job and at
the same time increase the firm’s performance.
Hawthorne Effect impact towards productivity level is
when the company put some effort to The company invest
on Information Technology to increase productivity. In
contrast, respondents equally agree on a minor concern
putting realistic target
CONCLUSION Among the three variables, the most crucial implication of
Hawthorne Effect is on the Employee behavior where :
The respondents feels like been treated fairly,
Assist in their career development,
Company itself practice its core values,
Rewarded the employee based on performance as well as
show appreciation for the employee for the job well done .
Motivates the respondents to perform better.
RECOMMENDATION FOR FUTURE PRACTICE
Based on the result of this study, recommendations are
developed and addressed to the greatest responsibility for
implementation:
How it works in field depends on:
Workers
Management
Motivation
Productivity
RECOMMENDATION FOR FUTURE PRACTICE
WORKERS
Insights, Suggestion, Like and Dislike, Moral, Training.
MANAGEMENT
Transfer the power to workers and knowing their workers.
PRODUCTIVITY
By increasing the output rate and keeping cost down, the
company will able to increase profit.
MOTIVATION
Incentives , necessary tools to increase productivity and quality.
RECOMMENDATION FOR FUTURE RESEARCH
Based on the analysis of data and the result presented, the
following recommendations for further study are offered:
It is recommended that the next study could be
conducted to more company in Malaysia , therefore
making the results generalize able to respondents which
is overall Malaysian employees.
RECOMMENDATION FOR FUTURE RESEARCH
It is recommended that future research should employ
a variety of methods can be conducted to supplement
each other in order to get in depth and accurate results.
In the future the research is recommended to have
longer period of time to gain a wider and valuable data.