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Introduction to management Introduction to management Presentation Transcript

  • Introduction to Management
  • Planning Ahead — Chapter 2 Study Questions What can be learned from classical management thinking? What insights come from behavioral management approaches? What are the foundations of modern management thinking? 2
  • Study Question 1: What can be learned from classical management thinking?  Classical approaches to management include: – Scientific management – Administrative principles – Bureaucratic organization 3
  • Figure 2.1 Major branches in the classical approach to management. 4
  • Study Question 1: What can be learned from classical management thinking?  Scientific management (Frederick W. Taylor) – Frederick Taylor is known as the “father” of scientific management, which emphasizes careful selection and training of workers and supervisory support. – He advocated the following four principles of scientific management : 5
  • 1. Develop for every job a “science” that includes rules of motion, standardized work implements, and proper working conditions.2. Carefully select workers with the right abilities for the job.3. Carefully train workers to do the job and give them the proper incentives to cooperate with the job “science.”4. Support workers by carefully planning their work and by smoothing the way as they go about their jobs. 6
  • Study Question 1: What can be learned from classical management thinking? Scientific management (the Gilbreths) – Frank and Lillian Gilbreth pioneered motion study – the science of reducing a job or task to its basic physical motions. – Wasted motions are eliminated to improve performance. 7
  • Study Question 1: What can be learned from classical management thinking? Practical lessons from scientific management – Make results-based compensation a performance incentive – Carefully design jobs with efficient work methods – Carefully select workers with the abilities to do these jobs – Train workers to perform jobs to the best of their abilities – Train supervisors to support workers so they can perform jobs to the best of their abilities 8
  • Study Question 1: What can be learned from classical management thinking?• Administrative principles (Henri Fayol) Henri Fayol, developed a set of 14 principles:1. Division of work: Specialization increases output by making employees more efficient.2. Authority: Managers must be able to give orders and authority gives them this right.3. Discipline: Employees must obey and respect the rules that govern the organization.4. Unity of command: Every employees should receive orders from only one superior.5. Unity of direction: The organization should have a single plan of action to guide managers and workers. 9
  • 6. Subordination of individual interests to the general interest: The interests of any one employee or group of employees should not take precedence over the interests of the organization of the whole.7. Remuneration: Workers must be paid a fair wage for their services.8. Centralization: The degree to which subordinates are involved in decision making.9. Scalar chain: The line of authority from top management to the lowest ranks.10. Order: People and materials should be in the right place at the right time. 10
  • 11. Equity: Managers should be kind and fair to their subordinates.12. Stability of tenure of personnel: Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.13. Initiative: Employees who are allowed to originate and carry out plan will exert high levels of effort.14. Esprit de corps: Promoting team spirit will build harmony and unity within the organization. 11
  • Study Question 1: What can be learned from classical management thinking? Bureaucratic organization (Max Weber)• Max Weber, a German intellectual, introduced bureaucracy as an organizational structure that promotes efficiency and fairness.• Weber viewed a bureaucracy as an ideal, intentionally rational, and very efficient form of organization founded on principles of logic, order, and legitimate authority. 12
  •  Characteristics of bureaucratic organizations:1. Clear division of labor: Jobs are well defined and workers become highly skilled at performing them.2. Clear hierarchy of authority: Authority and responsibility are well defined for each position and each position reports to a higher-level one.3. Formal rules and procedures: Written guidelines direct behavior and decisions in jobs and written files are kept for historical record.4. Impersonality: Rules and procedures are impartially and uniformly applied, with no one receiving preferential treatment.5. Careers based on merit: Workers are selected and promoted on ability and performance and managers are career employees of the organization. 13
  • Study Question 1: What can be learned from classical management thinking?  Possible disadvantages of bureaucracy: – Excessive paperwork or “red tape” – Slowness in handling problems – Rigidity in the face of shifting needs – Resistance to change – Employee apathy 14
  • Study Question 2: What insights come from the behavioral management approaches? Behavioral Management - human resource approaches include: – Hawthorne studies – Maslow’s theory of human needs – McGregor’s Theory X and Theory Y – Follett’s organizations as communities 15
  • Figure 2.2 Foundations in the behavioral or human resource approaches to management 16
  • Study Question 2: What insights come from the behavioral management approaches? Hawthorne studies – Initial study examined how economic incentives and physical conditions affected worker output. – No consistent relationship found. – “Psychological factors” influenced results. 17
  • Study Question 2: What insights come from the behavioral management approaches? Hawthorne studies (cont.) – Relay assembly test-room studies • Manipulated physical work conditions to assess impact on output. • Designed to minimize the “psychological factors” of previous experiment. • Factors that accounted for increased productivity: – Group atmosphere – Participative supervision 18
  • Study Question 2: What insights come from the behavioral management approaches? Hawthorne studies (cont.) – Employee attitudes, interpersonal relations and group processes. • Some things satisfied some workers but not others. • People restricted output to adhere to group norms. – Lessons from the Hawthorne Studies: • Social and human concerns are keys to productivity. • Hawthorne effect — people who are singled out for special attention perform as expected. 19
  • Study Question 2: What insights come from the behavioral management approaches? Maslow’s theory of human needs – A need is a physiological or psychological deficiency a person feels compelled to satisfy. – Need levels: • Physiological • Safety • Social • Esteem • Self-actualization 20
  • Figure 2.3 Maslow’s hierarchy of human needs. 21
  • Study Question 2: What insights come from the behavioral management approaches? Maslow’s theory of human needs – Deficit principle • A satisfied need is not a motivator of behavior. – Progression principle • A need becomes a motivator once the preceding lower-level need is satisfied. – Both principles cease to operate at self-actualization level. 22
  • Study Question 2: What insights come from the behavioral management approaches?  McGregor’s Theory X  McGregor’s Theory Y assumes that assumes that workers: workers are: – Willing to work – Dislike work – Capable of self control – Lack ambition – Willing to accept responsibility – Are irresponsible – Imaginative and creative – Resist change – Capable of self-direction – Prefer to be led 23
  • Study Question 2: What insights come from the behavioral management approaches? Implications of Theory X and Theory Y: – Managers create self-fulfilling prophecies. – Theory X managers create situations where workers become dependent and reluctant. – Theory Y managers create situations where workers respond with initiative and high performance. • Central to notions of empowerment and self- management. 24
  • Study Question 1: What can be learned from classical management thinking?  Organizations as communities (Mary Parker Follett) – Groups and human cooperation: • Groups are mechanisms through which individuals can combine their talents for a greater good. • Organizations are cooperating “communities” of managers and workers. • Manager’s job is to help people in the organization cooperate and achieve an integration of interests. 25
  • Study Question 1: What can be learned from classical management thinking? – Forward-looking management insights: • Making every employee an owner creates a sense of collective responsibility (precursor of employee ownership, profit sharing, and gain-sharing) • Business problems involve a variety of inter-related factors (precursor of systems thinking) • Private profits relative to public good (precursor of managerial ethics and social responsibility) 26
  • Study Question 1: What is the external environment of organizations?  The general environment — all of the background conditions in the external environment of the organization including: – Economic – health of the economy  The economic conditions of the general environment details the health of the economy in terms of inflation, income levels, gross domestic product, unemployment, and job out-look. – Legal-political – norms, customs, social values  By staying abreast of the legal-political conditions of the general environment, managers are aware of the prevailing philosophy and objectives of the political party or parties running the government, as well as laws and government regulations. 27
  • – Socio-cultural – philosophy/objectives of political party running the government Changes in the norms, customs, and social values on such matters as human rights, ethics, gender roles, and life styles, along with environmental trends in education and related social institutions, as well as demographic patterns all will affect how organizations are managed.– Technological – development and availability of technology With the development and availability of new technologies in the general environment, managers need to constantly monitor how these advances affect the work being done by employees. 28
  • – Natural environment – nature and conditions of environment With organizations “going green,” how a firm becomes a sustainable business that meets the needs of its customers while advancing the well-being of the natural environment is a management concern. The public will judge a business on how it operates to protect and preserve this natural environment. 29