Q1. What is Theory Z?

A1. Theory Z is a management philosophy that emphasizes employees’ participation in all aspects of organizational decision making.   

Q2. How does it differ from Theory X?

A2. Theory Z differs from Theory X because where as Theory Z emphasizes employees’ involvement in decision making, Theory X assumes that employees don’t like responsibilities and need to be guided and monitored. Theory X takes a passive view of the employees motivation levels.

Q3. What are the five basic needs of human beings as theorized by Abraham Maslow?

A3. The five basic needs of human beings as theorized by Abraham Maslow’s hierarchy of needs are physiological, security, social, esteem, and self-actualization.

Q4. What is human relations?

A4. Human relations is the study of individuals and groups in organizational setting. Human relations seek to find out what motivates employees at work.

Q5. What is the importance of motivational strategies?

A5. The motivational strategies are important because they increase employees’ satisfaction with their work which in turn leads to higher labor productivity. In addition, it also increase employees’ loyalty to the organization as well as ensure high retention rates.

Q6. What is the Hawthorne Experiment or Effect?

A6. The Hawthorne Experiment was a study done to investigate the physical conditions that have the most positive impact on workers’ productivity. The study found that the workers’ productivity increased regardless of the working conditions which is also known as “the Hawthorne Effect”.

Q7. When did the Hawthorne experiment take place? Where?

A7. The Hawthorne experiment took place between 1924 and 1932 at the Hawthorne Works Plant of the Western Electric Company.

Q8. How was GE involved. What was the outcome?

A8. GE was the major manufacturer of light bulbs and had found out that better lighting improves workers’ productivity. Thus, GE wanted to validate its finding which is why it funded the National Research Council (NRC) to conduct an impartial study for which Western Electric’s Hawthorne plant was chosen as the experiment laboratory. The researchers concluded from their experiments that the lighting didn’t have a significant impact on the motivation of the workers.

Q9. What lasting effects did this have on business?

A9. The experiments revealed that economic incentives alone can’t motivate workers. The studies drew attention to the psychological factors and social needs of the workers that have the potential to affect workers’ motivation level and hence their productivity. The experiments marked the beginning of a concern for workers’ relationships in the workplace.