Hawthrone effect
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This document presents research on the implications of the Hawthorne Effect and its links to firm performance. It begins with an introduction and background on the Hawthorne Effect. The study aims to determine if the Hawthorne Effect can improve firm performance by examining its relationship to employee behavior, working environment, and productivity levels. The methodology discusses using surveys distributed to employees at three firms to collect data, which is analyzed using statistical software. Preliminary findings suggest the Hawthorne Effect is positively associated with treating employees fairly and providing necessary tools/facilities. The document concludes by discussing recommendations and areas for future research.
Hawthrone effect
- 1. The implication of Hawthorne Effects links to Firm’s Performance” Presented by: Cosmas Zeno Yugash Chandramohan
- 3. INTRODUCTION The 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.
- 4. 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.
- 5. BACKGROUND OF THE STUDY • The study examined from three different dimensions: Observation Working Environments Employees Behaviors
- 6. 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.
- 7. 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.
- 8. 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).
- 9. 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
- 10. LIMITATION OF STUDIES • Limited to three Firm only. • Poor quality of data(limited perception of respondents). • Respondents Bias. • Constraints (time and money).
- 11. FRAMEWORK OF THE STUDY Theoretical framework of implication of Hawthorne effect links to Firms performance. EMPLOYEE BEHAVIOR HAWTHRONE EFFECT WORKING ENVIRONMENT PRODUCTIVITY LEVEL
- 12. 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.
- 13. 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).
- 14. 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).
- 15. 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).
- 16. 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).
- 17. 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).
- 18. 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).
- 19. 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).
- 20. 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.
- 21. CHAPTER THREE RESEARCH METHODOLOGY This chapter discuss about the type of research methodology being used in this research.
- 22. 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.
- 23. 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.
- 24. RESEARCH TECHNIQUE Survey 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.
- 25. 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
- 26. 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.
- 27. RELIABILITY Cronbach’s Alpha Cronbach’s Alpha N of Item’s Reliability statistics Based on Standardized items .830 .837 4 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.
- 28. 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.
- 29. 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.
- 30. DATA COLLECTION Event Organization Date of Questionnaire Date Of Data Collection distribution. 1 Federal Hotel, Kuala Lumpur. 26th January 2011 30th January 2011 (50 Respondents) 2 Havey Norman Holdings Limited. 26th January 2011 30th January 2011 (44 Respondents) 3 YPC (Malaysia) Sdn Bhd . 26th January 2011 30th January 2011 (50 Respondents) Total 144 respondents
- 31. CHAPTER FOUR FINDINGS AND DISCUSSION This chapter presents the findings from the extensive analysis carried out on the data.
- 32. 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.
- 33. 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).
- 34. Objective 1: To identify the demographic and background of the Hawthorne Effects respondents . C:UsersUserDesktopTable 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.
- 35. 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 144 3.83 .784 core values My superior motivates me to 144 3.76 .729 perform better The company assist in my 144 3.91 .810 career development I am appreciated for a job 144 3.87 .722 well done We are treated fairly 144 3.99 .780 I am rewarded based on my 144 3.92 .753 performance Valid N (listwise) 144
- 36. 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.
- 37. 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 144 3.89 .777 enable me to perform my duties Safety is given utmost importance to circumvent 144 3.69 .789 industrial accidents The layout of the office creates a conducive 144 3.82 .825 workplace Teamwork is encouraged at 144 3.84 .763 the workplace Valid N (listwise) 144
- 38. • 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.
- 39. 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 144 3.73 .712 measured systematically I am given realistic targets 144 3.53 .775 Setting performance standards improves the 144 3.74 .764 efficiency rate The company invest on Information Technology to 144 4.01 .857 increase productivity Absenteeism and sick leave 144 3.99 .815 is reducing Non-performing staff are 144 3.95 .839 managed accordingly Valid N (listwise) 144
- 40. 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.
- 41. 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.
- 42. 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.
- 43. 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
- 44. 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.
- 45. 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
- 46. 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.
- 47. 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.
- 48. 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.