Hawthrone effect

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)


3 YPC (Malaysia) Sdn Bhd .(50 Respondents)


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.



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


• 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.



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


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.

Hawthrone effect

Education

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