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1 basic wage rate
Finthe wages paid for a specific number of hours work per week, excluding overtime payments and any other incentives -
2 Hawthorne experiments
Gen Mgta series of studies undertaken at the Hawthorne plant of Western Electric in the United States from which Elton Mayo concluded that an approach emphasizing employee participation can improve productivity. The Hawthorne experiments began in 1924 as a study conducted by the National Research Council into the relationship between workplace lighting and employee efficiency, and was then extended to include wage incentives and rest periods. It was found that whatever variations were applied upward or downward, output rose, and this was termed the Hawthorne effect. The increased productivity was attributed to several causes, including small group size, earnings, the novelty of being part of an experiment, and the increased attention given to the employees being studied. The style of the supervisor, which was relaxed and friendly, in contrast to the then standard practice, was found to be particularly important. In a second group of employees, however, it was observed that, as the experiments progressed, output was restricted, and that whatever the incentive, the group showed a resistance to it. In 1929, and 1930, Elton Mayo visited Hawthorne. He linked supervisory style and levels of morale with productivity. High productivity resulted from an engaged supervisory style that encouraged participation. Low productivity resulted when a supervisor remained remote and retained a traditional supervisory role. The Hawthorne experiments established the importance of management style and interpersonal skills to organizational success.
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