At the beginning of the 20th
century, companies were using scientific approaches to improve worker efficiency,
and that all began to change with the start of Hawthorne Studies, a long 9year research
program at Western Electric Company. The research was about
measuring the impact of different working conditions by the company itself
(such as levels of lighting, payment systems, and hours of work) on the work
output of the employees. The term ‘Hawthorne effect’
is now widely used to refer to the behavior-modifying effects of being the
subject of social examination. The Hawthorne studies are attributed with
focusing decision-making strategy on the socio-psychological aspects of human
behavior in organizations.
PEST analysis of any
industry sector investigates the significant factors that are affecting the
industry and influencing the companies working sector. PEST is an acronym for
political, economic, social and technological analysis. A PEST analysis initially designed for business examination,
of external macro environment (big picture) in which a industry operates. These
are often factors which are beyond the control or influence of a business, however
significant to be conscious when doing manufactured goods development, business
or strategy planning.
Hawthorne effect is a term referring to tendency of various people to execute
better and work harder when they are being observed or participants in an
experiment (GILLESPIE, 1994).
was first encountered in 1950’s by researcher Henry A. Landsberger, when performing a study and analysis of data
from experiment performed by Elton Mayo
in 1930’s. The occurrence of this experiment took place at , Western Electric’s
Hawthorne Works electric company of Hawthorne, Illinois (CHERRY, 2017). The company manufactures telephone
system bell which has 30,000 employees at the time of experiment.
purpose of Hawthorne studies was to
examine workers and their productivity (performance) based on work environment
factors such as lighting, breaks and working hours. Researchers began with
increasing the lighting of working conditions compared to one without changing,
predictably the workers with more light improved productivity. After many
changes researchers have noticed that what all the changes made productivity of the workers continued to grow
came back to the initial stage now without any changes in work environment, and
further reduced the light still productivity was at its highest level with full
workers attending. So they concluded that it wasn’t the functioning changes that
improved productivity it was attention researchers took in the workers, and the
workers feel like someone is much concerned about their place of work.
Hawthorne result evidently showed that people work in a different way when they
are being observed in contrast to not observing (VRABIE, 2014).
effect to company’s benefit
improve their capability of functioning depending up on employment surroundings
change, not in reply to the change in individuality itself. In fact Elton Mayo, lead researcher at Hawthorne described
change in productivity as a
“positive emotional effect due to the perception of a interested observer”.
information is key for Mangers in today’s work environment if the team is facing little variation in their performance.
The elements of Hawthorne can help the team to push up using elements such as:
Social factors effect performance
Attitudes effect performance
Supervision effects performance
Informal work group effects performance.
Effect and its influence on HRM
The Hawthorne effect changed the human relations approach to
management in a way such that employees requirements and motivation became the principal
focus of managers. Technology and working process has extremely changed but
management focused supervision has psychological motivation impact to enhance performance,
decrease level of defects or errors and create a mixed culture for continuous
Unlike the approach of scientific management, where the main
focus was on productivity by dehumanized
employees. Hawthorne effect proved that workers are greatly motivated by more than money.
Employees remain loyal to the firm when they are not treated separately
depending on the performance levels, having fun at work place, and low levels of stress (BAACK, 2012).
Today’s work force, Human Resource Management has the
responsibility of protecting their experienced workers (assets) of the company by providing them with work / life balance. HR
Managers must respond to both the employees professional and personal needs in
order to keep hold of their employees and work for their organization.
Human resource management was once responsible for only
recruitment, training and basic disciplinary
issues but now has some premeditated functions in looking after various employees
Recruitment: Global companies main
goal is to hire the best talents from all over the world with different
Legislation: The HR department of a global company should have a clear
idea of employment laws in each and every country it operates. This can be
achieved by having local HR departments in each country and reporting it to the
Differences: Due to cultural
variations HR responsibility in employee satisfaction and management
development became more difficult. The HR department must able to understand every
culture correctly and respond.
and Benefits: In a Global
organization it is the most difficult task
HR faces. The packages may be more expensive and more difficult to set
in some countries due to different taxation approach including the benefits
such as Accommodation, pensions, life
assurance, company cars.
PEST Factors influencing HR Process
PEST stands for Political,
Economic, Social and Technological
external factors that commonly affect performance and activities of a business.
To resolve an organization’s overall view PEST Analysis can work alone or can be
used with other tools in combination such as SWOT Analysis (or) Porter’s
Five Forces (POST, 2017).
PEST Analysis is often used when launching a new product /
service or selling in to a new country or region.
PEST Analysis can help organization’s to improve
decision-making and perfect timing by analyzing different factors. It could
also help you in predicting the future and tackling future challenges looking
at the present.
PESTLE Analysis factors can vary with organizations as companies have their own and different priorities.
For example: Instance if a company has
borrowed or rented heavily would need to focus more on economic factors, A
global contractor would be more tend to be affected by political factors, A
company selling to consumers are affected by social factors.
There are several common variations of the PESTLE Analysis
with some not even using all of the 6 Pestle factors and some using more
ETPS Economic Technical
Political and Social.
STEP Strategic Trend Evaluation Process.
STEPE Social Technological
Economic Political and Ecological.
PESTLIED Political Economic
Social Technological Legal International Environmental and Demographic.
`STEEPLED Social Technological Economic Environmental
Political Legal Educational and Demographic.
The most important thing to note from factors above, the
underlying method is same in all cases but the factors are variations of one
Political: Changes in the government policy make up the political
factors, the change can be legal, social or economic it could also be a
Corruption is main problem to economic development for a lot
of countries, some firms or companies survive by offering bribes to government
List of political factors affecting business:
Health and safety law
Economic factor plays a vital role in deciding how the
company make its financial decisions, these factors are associated with
services, goods and money. Economic factor can decide numerous facts that come
up in an operating company including asset value, consumer demands and taxation
List of economic factors affecting business:
Interest / Exchange
Demand and Supply
Trade flows and pattern
Social factor focus on the socio-economic environment and
identify emerging trends. This helps a
marketer to further understand the needs and wants of customers. Social factor
can recognize how consumer needs are shaped and what brings them to the market
for a purchase.
Companies must be aware of any endangered species or habitats
in locations where they plan to construct facilities. Even if the social
factors of the country where they are operating do not support maintaining the
environment, major companies can still see a backlash from consumers in other
markets if they do not consider ecological factors in their strategies.
List of social factors affecting business:
Religion and beliefs
Family size and
Age distribution and
life expectancy rates
Population growth rate
Attitudes towards green
and ecological products
Average income level
These factors can affect our opinions and interests and
attitudes, so it can impact on revenue earned and sales of product. Social
factor shapes “who we are as people
and how we behave and what we buy” .
Technological factors include emerging technologies, new
communication methods or automation that
could affect a market or industry. It might be indistinct how technology can have
an effect on business unless you take a step back and come across at all of the
technology that’s used in our daily life it might be mobile phones, laptops,
gaming, cars, televisions, watches and many more.
List of technological factors affecting business:
Mobile and digital
Computer speed / power
The company which I choose is ABBEY GROUP located in abbey
street, dublin1. This company head office is in Dublin and they have 3 more branches in Ireland located in Swords, Naas and Killarney. They even have offices located
outside of IRELAND in EDINBURGH AND LONDON (ABBEY GROUP, 2017).
The Abbey Group is a privately owned company
with more than 160 employees. It is led by a Board consisting of 12 members,
all highly experienced in the inbound tourism sector. Abbey group is recognized
as award winning market leader in tourism sector.
The Group has four
divisions specializing in specific types of inbound tourism:
luxurious leisure travel.
Co-Founder and Director of
the company : Brian McColgan.
Director : Marina Finn.
The reason for choosing this group is Co-Founder and director of this organization are
very good friends of mine as they usually come to the restaurant where I work
at present which is located in Rathgar, Dublin 6.
One day they came in to restaurant and I had a general talk
about their company process of selection and recruitment and informed I need
some help to know in detail how the recruitment goes. He said that’s absolutely
fine and asked me to visit their main office so that he can introduce myself to HR manager. He also informed me everyone is
on holidays at the moment as you know it’s Christmas ill get you an appointment
in January which I’ll let you know later.
Finally I got an appointment in January I went to their head
office and met HR manager named Helen Murphy, I thanked her first of all for
giving her precious time and had a general talk for couple of minutes as she
asked me what you study and where you are from so and so…and then later came
to the point.
Recruitment and Selection process of Abbey Group:
Good employees are backbone of any organization especially
for the hospitality sector. This group usually follow systematic approach
of recruiting an employee.
They typically follow 8 stages which include:
1) Identifying company needs
2) Description of the job
3) Personal specifications
4) Advertisement about recruitment
5) Candidates short listing
6) Interviewing and testing
7) Offer of employment
Description of job :
What job involves such as department and section, area of responsibility and
conditions of employment ( salary / wage, hours of work, holiday entitlement).
Specifications : Details of the ideal
person for the job in terms of previous work experience, educational
qualifications, terms of skill and character.
about recruitment : This can be done by
the organization itself or delegated to outside recruitment agency of tourism
sector. Where the agencies can advertise
in local newspapers, journals, internet such as Irishjobs.ie and Job centers.
Short listing : This group usually asks for an employee CV (curriculum
vitae) and covering letter rather than sending out an application form. If all
the before stages are met accordingly to their company and written down in
clear and precise manner the organization is likely to hold on to that
testing : This group usually follows Face to
Face interview to find out more detailed information about the applicants and
their achievements till date. They follow some rules in interviewing candidates
for job, Get the interviewee to expand more on the CV, Being alert to the
strength and weaknesses of candidates, ask open questions, avoid asking
personal questions, depending on candidates sometimes psychometric testing.
employment : The successful candidates will
be invited to reply in writing that he or she accepts the offer of the job.
Induction : An induction program will help the new candidates to adjust
themselves to the new environment, and establish good working relationship with
already working colleagues.
1) what educational qualifications do you look for when
applying to your company ..?
Answer: Generally we look for a candidate with Third level
education qualification or Degree qualification in Human Resource.
2) What is the reason for the success of your group….?
Answer: Our Directors
are the main reason behind the success of our company. They have a clear vision
in succeeding the organization globally.
3) How do you select a person when interviewing….?
Answer : Generally we look for people with strong
communication skills with a clear, friendly
approachable style. As our employee’s job is mainly to deal with the customers we
look forward for the confident people.
4) Do you offer any sort of internships to the graduate people…?
Answer: Generally we won’t offer any internships as we look
forward for the experienced working staff.
5) What type of employees do you hire…?
Answer: We employ people who has Ability to manage multiple
skills and planning accordingly, and with strong organizational skills.
In depth oriented and flexible approach to problem solving.
6) Does your Company hire people from different cultures….?
Answer: Off course in our companies view everyone is equal
and we thrive to take whoever it is if they crack the interview with what we
want to see in an employee prospect.
7) Do you look for any technical skills while interviewing
Answer: We don’t need people with high technological skills
as we are not a tech company but people with basic computer skills would be
advantaged such as using of Microsoft
word, Excel, Windows outlook, Microsoft PowerPoint etc.
8) How long does your recruitment process take place….?
Answer : It’s generally 2 to 3 weeks as we need to confirm
the details (information) of the person who applied for the job such as last
job history, position and value of the person in the last job and many more..!!
9) If you select a candidate from an interview does you
follow any contract of working….?
Answer : We generally look forward for the full time staff
and the first 3 months will be provision period for any new employee if he
passes those time period he can be permanent employee of our group.
10) Does any factors affect your recruiting process…?
Answer: Changes in the rules by the government causes some issues
such as taxation, employment rules and regulations.
Factors influencing recruitment at present in Dublin
Emerging markets, improved competition have resulted in a
persistently developing tourism industry environment. Social media and various websites
provide consumers with full of information including customer opinions, reviews
and ratings, impacting consumer needs and wants.
At the same time many
employers face some significant recruitment challenges due to typical issues
such as high turnover, large fluctuations in demand and trouble identifying the
best talent for their company. Many of these challenges can be addressed with a
digital recruitment and interview process.
A negative review online or on a social media such as
facebook, twitter can easily effect business.
More than ever, customer retention is key and dominant in generating revenue
In the quest for a more efficient but
also reliable process, more and more employers are implementing a modernized
approach to recruiting such as video interviewing. Hospitality employers using
online job interviews are able to see more candidates in less time, get a good
first impression of candidates at the pre-screening level and enhance their
Internal Factors influencing recruitment:
Government policies on
Need for the
Size of the
Growth and expansion of
Cost involvement in
Good will of the
company in the market
Supply and Demand
It has become obvious that
there are a variety of approaches to organizational efficiency. The significant method was scientific management,
where the main focus was on the physical aspect of work, also on the individual
worker and not group work. The studies concluded that physical motivators
such as economic incentives and good working conditions are generally less
important in improving employee productivity than intangible motivators such as
meeting individuals’ desire to belong to a group and be included in decision
making and work.
These studies did have an
enormous amount of influence on management but also on sociology and
psychology. In spite of all criticisms, the Hawthorne studies still contributed
a considerable amount and redefined management. It also brought one of the most
important results to psychology.
As such, most firms will
tend to focus on the most important factors, particularly those which may
affect the specific industry. However, firms must be careful to continue to
analyze the environment to predict and react to any future changes in the
critical macro-environmental factors, particularly in an uncertain and dynamic
Finally, the effects of the
Hawthorne studies and PEST analysis had a tremendous amount of change in the
work environment which has changed the level of working with different cultures
and modernized way of work processes in organizations.