Alishba Zaman

118100010

Based on your reading of the "Bank-wiring observation room" section in "the

evolution of management thought" (pages 238-240) by Daniel Wren, answer the
following questions in your own words.
1) What was the aim of this experiment?
Bank-wiring observation room experiment was conducted in 1932 which consisted
of 14 male workers. The main aim of this experiment was to examine how a group
could influence a worker’s output even when desirable incentives are offered by the
workplace for greater productivity.

2) What were the organizational implications of the findings of this experiment?

This experiment opened a new vision on organizations regarding human

behavior. It showed that human relations are vital in organizations when it
comes to productivity. Even though attractive incentives are placed to motivate
workers to increase their output, but team spirit is equally important.
This, Elton Mayo started looking at organizations from a fresh perspective where
technicality was less important than social relations in workplace and human
relations management came into existence.

In modern day organizations, the implications of this experiment are vast and
seen as a significant factor. Now organizations have realized that financial
incentives are crucial for the smooth running but a sense of belonging and
satisfaction in workplace also holds importance and should not be missing.
Workers to feel motivated and be more productive need to see themselves as a
“part” of the organization where they are valued. When they start to own the
place and consider it as a vital aspect in their lives they will work with a better
pace and more efficiently. And all of this is possible when their social and
emotional needs are also considered and not just the monetary ones. If they are
not acknowledged for the effort and energy the put in, it causes their morale to
go down and not work diligently. Thus, when they feel like an essential part of an
organization and are appreciated time to time, they will tend to be more
productive.
All these observations are now becoming a part of organizations daily practice,
so the workers carry out their tasks more diligently and feel driven too.
The findings which came because of this experiment have taught organizations
to value positive relationship between workers and the management. In addition,
it also emphasized upon two-way communication, where both sides feel that
they are heard and their opinions are valued.

In conclusion, the bank-wiring observation room study has contributed a lot to

human resource management in organizations. And significant developments
have been made in this field since then which is quite remarkable and shows
that the experiment did not go in vain.