Management Theory of Elton Mayo

The management theories of Mayo

Based on his well-known Hawthorne experiments, Mayo’s management theories grew from his observations of employee productivity levels under varying environmental conditions. His experiments drew a number of conclusions about the real source of employee motivation, laying the groundwork for later approaches to team building and group dynamics. Mayo’s management theory states that employees are motivated far more by relational factors such as attention and camaraderie than by monetary rewards — or by environmental factors, such as lighting, humidity and more.

Mayo developed a matrix to illustrate the likelihood that a given team would be successful. His matrix demonstrates the role that varying combinations of group norms and group cohesiveness play in team effectiveness. [Read related: 5 Reasons Why Teamwork Is Crucial to Workplace Success]

Mayo’s theories identify a “norm” through the degree to which a group encourages positive or negative behaviors. This is typically expressed through an employee handbook or workplace policies and can include formal or informal rules.

Group cohesiveness is how a unit cooperates together. It’s defined as a group’s overall camaraderie or level of teamwork.

The following are the four combinations of a group’s norm in relation to its cohesiveness:

1. Low norms and low cohesiveness: This group is ineffective and has minimal impact since none of the members are motivated to excel.
2. Low norms and high cohesiveness: This group has a negative impact since fellow members encourage negative behavior. In a typical workplace, an example would be a group that gossips together and actively fights against management. In other words, a group with high camaraderie and low structure.
3. High norms and low cohesiveness: This group has a small degree of positive impact through individual member accomplishments. Each employee must maintain a high standard of work but does not cooperate as part of a team.
4. High norms and high cohesiveness: This group has the greatest positive impact, is held to a high standard and works together to achieve its goals.

How Mayo’s theories apply to small businesses

To survive in a competitive business market, a small business must unlock the potential of its limited workforce. Mayo’s theories of management are the key to unlocking that potential. Here are a few benefits for small businesses.

Support a limited payroll

The core premise of Mayo’s theories is that relational factors are better motivators than simply increasing employee pay. This is beneficial to small businesses since their payroll potential is typically limited.

Increase responsiveness

When employees feel empowered to voice concerns and frustrations, managers can address issues before they snowball into massive problems. Additionally, employees can typically identify production or customer issues before management encounters them. Therefore, a business can respond more quickly to sudden problems by opening a consistent communication channel between employees and management. Mayo’s management theories rely on this consistent communication channel.

Improve management skills

To implement Mayo’s theories, a small business must have managers who are capable of engaging with employees on a regular basis. Managers utilizing Mayo’s theories may be seen as more approachable and provide greater contributions to the overall success of the business.

Increase employee retention

An employee who is emotionally invested in a business will typically stick around longer than they would for a business with which they do not connect. This increase in employee retention will significantly reduce the amount of money a small business will need to invest in hiring efforts.

Improve mental health

Mayo’s theories rely on engaging with employees on personal matters. The ability to speak openly about frustrations and search for solutions will lead to a healthier work environment.

Prevent burnout

The rate of burnout dramatically increased during the COVID-19 pandemic. Mayo’s management theories reduce burnout and relieve staff shortages by creating more cohesive teams and camaraderie.

How to implement Mayo’s theories in your business

There are many ways that a small business can use Mayo’s HR theories.

Implement strong communication

Mayo’s theories state that increased communication and cooperation improve a team’s cohesion. Small business owners should communicate with their teams regularly and openly. Additionally, consider providing teammates with both formal and casual feedback.

Create more group projects

According to Mayo’s teachings, intense interaction and cooperation through teamwork increase business productivity. On the manager’s part, feedback should be given to the team at large as well as each individual’s contributions.

Increase involvement between managers and employees

Mayo’s theories state that decreased productivity may arise due to a lack of attention. Supervisors and managers should spend some time interacting with employees on a personal level. Try to learn about your employees’ personal lives, motivations and feelings.

Reduce the number of negative interactions

Mayo’s theories state that negative supervisor interactions increase stress and fatigue. Don’t micromanage — let your employees use their creativity and ingenuity to solve problems. If a negative interaction is inevitable, openly communicate with empathy and kindness and don’t drag out the issue.

Set established rules

“High norms” result in a positive impact, according to Mayo’s theories. Establish workplace rules and regulations, and let your employees work within that established framework. To increase camaraderie within your team, consider formulating the rules together. Employees who share their input are more likely to follow the set rules.

Create a feedback system

Mayo’s theories state that employees thrive when they have the opportunity to express their opinions. Don’t let complaints fester. Instead, listen to the complaints and make attempts to address them. It is always better to provide an outlet where employees can voice any concerns.

Let employees determine their own working conditions

A happy employee is a productive employee, according to Mayo. Consider allowing your employees to dictate where they will complete their tasks. This can be as simple as giving employees the freedom to decorate the office, work remotely a few times a week or set their own work schedule.

Understand the concepts of Mayo’s theories and how they can benefit you

Numerous websites provide valuable information about Mayo’s theories. In addition to diagrams, summaries and explanations of Mayo’s management principles, you’ll find various videos and instructional materials. These can help you develop the background knowledge and practical expertise to put Mayo’s theories to work for your company.

Take advantage of consulting services that can help give you greater insight into Mayo’s theories

Consultants with knowledge and experience in the management theories of Mayo can guide you in maximizing the benefit of his principles in your own company’s unique environment.

Use resources designed to help you make the most of Mayo’s management theories

Widely available online tools and resources can help you more easily implement Mayo’s management principles. Videos and other various Mayo-theory-based products, information, and services let you choose the resources most valuable to your business.

Consider the many benefits of putting the Mayo management theory to work for your business. If you decide to use it, why not go all out and practice it in all the areas it can effectively address: your own leadership of the company, your managers’ development and your employees’ engagement.

Alternatives to Mayo’s management theories

Here are a few alternatives to Mayo’s management theories that small businesses can explore.

Mintzberg management theory explained

Henry Mintzberg’s management theory centers around defining clear organizational structures and roles to enhance business efficiency. It identifies five distinct organizational structures and posits that effective management skills are gained through experience rather than classroom learning. Mintzberg’s theory helps businesses streamline operations, improve employee engagement, and align roles with strengths and workflow. By choosing an appropriate structure, small businesses can resolve conflicts and optimize performance based on their specific needs and goals.

Taylor management theory explained

Frederick Taylor advocated for increasing productivity by scientifically analyzing tasks, rewarding workers for higher output and fostering cooperation rather than individualism. Taylor’s management theory, outlined in his 1911 book The Principles of Scientific Management, prioritizes industrial efficiency through job simplification and systematic management. Its key principles focus on science over guesswork, harmony over conflict and maximum output. While not universally applicable, his methods can be adapted to increase efficiency and collaboration in various businesses.

Weber management theory explained

Known for its bureaucratic approach, Max Weber’s management theory advocates for a structured and efficient organization through strict rules and a clear distribution of power. Weber believed that bureaucracy ensures maximum productivity by enforcing uniformity, precision and a hierarchical management system. In this ideal model, roles are defined by expertise, advancement is merit-based, and work relationships remain professional and impersonal. Weber’s theory emphasizes efficiency and fairness, which can benefit businesses by implementing clear rules and well-defined roles.

Fayol management theory explained

Henri Fayol’s management theory suggests that effective management involves planning, organizing, leadership and controlling organizational resources. Fayol proposed 14 principles of management, including division of work, authority, discipline and unity of command, which aim to improve organizational efficiency. His theory highlights the importance of managerial functions — along with the need for clear organizational structure and hierarchy — for small businesses to achieve peak performance.

Follett management theory explained

Mary Parker Follett’s management theory highlights the importance of coordination, collaboration and employee engagement within organizations. She advocated for a participative approach, where managers and employees work together to achieve common goals and solve problems. This management theory, particularly its focus on coordination and employee engagement, remains relevant to today’s businesses.

Gilbreth management theory explained

The Frank and Lillian Gilbreth management theory focuses on workplace efficiency through standardization and consistency. The husband-and-wife team believed in finding “one best way” to perform tasks, minimizing unnecessary motions and time to increase productivity. Their approach sought to streamline processes, increase profits and ensure a healthy work environment. It puts an emphasis on practical workspace and procedural improvements.

Kanter management theory explained

Rosabeth Moss Kanter’s management theory focuses on the importance of empowerment and innovation in organizations. Kanter advocated for creating a supportive environment where employees have access to resources, autonomy and opportunities for growth. Her theory emphasizes fostering a culture that encourages participation, creativity and collaboration, which in turn drives organizational success and adaptability.