Too self satisfied Lack of Change Underestimate Significance of Vision 3 Common Mistakes of Management
Prof. K.B Akhilesh, Dept. of Management Studies, IIScBangalore “Unless you build culture, unless you build rituals, unless you build collective mindsets, it is very difficult to sustain the performance of the organization”
Book: Scott’s Three Levels of Analysis
Book: Three Focuses
High performance leading organizations are increasingly distinguished by 7 features Management Development
Development of Management
Frederick Taylor (1856-1915)
Elements of Scientific Management
Application in the Modern Workplace
Application in the Modern Workplace
Henri Fayol (1841-1925)
Five Elements of Management -- Managerial Objectives
Fourteen Principles of Management (Tools for Accomplishing Objectives) Division of work - limited set of tasks Authority and Responsibility - right to give orders Discipline - agreements and sanctions Unity of Command - only one supervisor Unity of Direction - one manager per set of activities Subordination of Individual Interest to General Interest Remuneration of Personnel - fair price for services Centralization - reduce importance of subordinate’s role Scalar Chain - Fayol’sbridge Order - effective and efficient operations Equity - kindliness and justice Stability of Tenure of Personnel - sufficient time for familiarity Initiative - managers should rely on workers’ initiative Esprit de corps - “union is strength” “loyal members”
Fourteen Principles of Management (Tools for Accomplishing Objectives)
Fourteen Principles of Management (Tools for Accomplishing Objectives)
Fayol’s Administrative Theory
Weber’s Theory of Bureaucracy Max Weber (1864-1920) German Sociologist Theory of Social and Economic Organization (1947) Principles and Elements of Management - describe an ideal or pure form of organizational structure (general policy and specific commands PRIMARY FOCUS: Organizational Structure Worker should respect the “right” of managers to direct activities dictated by organizational rules and procedures
Weber’s Theory of Bureaucracy Bureaucracy allows for the optimal form of authority - “rational authority” Three types of Legitimate Authority Traditional Authority - past customs; personal loyalty Charismatic Authority - personal trust in character and skills Rational Authority - rational application of rules or laws
Tenets of Bureaucracy
Weber’s Theory of Bureaucracy Concerned with describing the ideal structure of an organization Cornerstone: existence of written rules
Weber’s Theory of Bureaucracy The rational application of written rules ensures the promotion of legitimate authority and the effective and efficient functioning of the organization.
Application in the Modern Workplace
“Modern Times”Discussion Questions 35 What evidence did you see of Scientific Management (SM)? What is the intention of the movie? What evidence did you see of a bureaucracy? What are the benefits of SM/bureaucracy? What are the drawbacks of SM/bureaucracy?
1927-1933 WESTERN ELECTRIC CO. Cicero, Illinois Hawthorn Plant Dr. Elton Mayo
Conducted in late 1920’s
Western Electric Hawthorne plant
Showed importance of the individual in the workplace
Showed the presence of a social system in the workplace
Hawthorne studies defined A series of experiments in which the output of the workers was observed to increase as a result of improved treatment by their managers. Named for their site, at the Western Electric Company plant in Hawthorne, Illinois.
Originally intended to examine effects of lighting on productivity Scientific management proposed that physical conditions affect productivity Result: Productivity increased regardless of lighting level Conclusion: Increased productivity was due to workers’ receiving attention Hawthorne Studies: Workplace Lighting
Illumination Studies The first illumination study was made in three departments The illumination level in each department was increased at stated intervals Puzzling results Increased production did not correspond with increased lighting Reduced production did not correspond with reduced lighting
Illumination Studies The second illumination study utilized a test group and a control group. Illumination intensities were varied in the test group and compared to the control group. Both groups showed increases in production rates that were not only substantial but also nearly identical.
Illumination Studies The third illumination study reduced the lighting for the test group and held the control group constant. Efficiency of both groups increased. Production rates increased in the test group until the light became so poor that the workers complained.
Illumination Studies Conclusions: Employee output was not necessarily related to lighting conditions, and Too many variables had not been controlled in the experiments.
Examined effects of group piecework pay system on productivity
Workers under piecework system should produce as much as possible
Scientific management assumes that people are motivated only by money
Result: Production less than maximum
Conclusion: Social pressure caused workers to produce at group-norm level
Hawthorne Studies: Piecework Pay
Elton Mayo & Fritz Roethlisberger ILLUMINATION STUDY RELAY ROOM STUDY BANK WIRING
Study Background Hawthorne studies were conducted from 1927 to 1932 by HARVARD BUSINESS SCHOOL PROFESSOR ELTON MAYO. Purpose of study was to EXAMINE WHAT EFFECT MONOTONY AND FATIGUE had on productivity and how to control them with variables such as rest breaks, work hours, temperature, and humidity.
Normal conditions Under normal conditions, the work week was 48 hours, including Saturdays. There were no rest pauses.
Experiment One The workers were put on piece-work for eight weeks. Output went up.
Experiment Two The workers were given two rest pauses, five minutes each, in the morning and afternoon for a period of five weeks. Output went up again.
Experiment Three The rest pauses were increased to ten minutes each. Output went up sharply.
Experiment Four The workers were given six five minute breaks. Output fell slightly. The workers complained that the work rhythm was broken by frequent pauses.
Experiment Five The two original rest pauses were put back in place, and the workers were given a free hot meal by the company. Output went up.
Experiment Six The workers were dismissed at 4:30 p.m. instead of 5:00 p.m. Output went up.
Experiment Seven The workers were dismissed at 4:00 p.m. Output remained the same.
Experiment Eight All improvements were taken away and the workers returned to their original working conditions. Output was the highest ever recorded!
Level of production is set by social norms, not by physical capacities
Non-economic rewards and sanctions affect the behavior of workers
Often workers react as members of a group, not as individuals
Management should recognize group behavior and act accordingly
Hawthorne Studies Hawthorne Effect: The phenomenon that employees perform better when they feel singled out for attention or feel that management is concerned about their welfare
A Very Brief History of Organizational Behaviour Scientific Management F.W. Taylor – 1890’s. “One Best Way” to perform a task. Management is responsible for removing obstacles that prevent “first-class” work. Labour is responsible for becoming “first-class men”. Systematic evaluation of work. Labour productivity standards (piece work). Expanded on by Gilbreth. Human Relations Movement Elton Mayo – 1920’s. Western Electric (GE) Hawthorne, IL plant. Varied illumination levels and measured output. Varied placement and duration of breaks. Interviewed workers about work practices. Rather unexpected results…
In general, productivity increased with each change in work conditions THE HAWTHORNE STUDIES:SOME PUZZLING RESULTS 132 124 116 Percentage of Standard Output 108 100 Standard work conditions Standard Six 5-min. rests Two 5-min. rests Two 10-min. rests Same + 4 p.m. stop 15-min. rests + lunch 15-min. rests + lunch 15-min. rests + lunch Same + Sat. a.m. off Same + 4:30 p.m. stop
Hawthorne Study Results Test Room/Control Room Changes to work conditions do not produce linear responses to productivity. Workers appear to respond to management’s attempts to improve work place. Bank Wiring Room Workers will scale back productivity to suit group norm. Organizations are social systems in which human interactions play a critical role.
Explanation of Findings The experimental group had considerable freedom of movement compared to other workers in the plant. The group developed an increased sense of responsibility and discipline no longer needed to come from a higher authority, it came from within the group.
Real World Example Workers improve their productivity when they believe management is concerned with their welfare and pay particular attention to them. Productivity can also be explained by paying attention to the workers’ social environment and informal groupings.
An Exercise What kinds of issues affect your productivity? What can a principal/superintendent do to increase or decrease your productivity?
Summary Hawthorne studies defined Study background Explanation of findings Real world example
Hawthorne Studies Elton Mayo’s Study on Employee Motivation and Work Productivity
What Will Be Covered Definition of the Hawthorne Studies Experiment that Mayo conducted Results Conclusions Brainstorming: How this can be used in organizations
What Will Be Covered Cont. Nuts and Bolts: Explanation of topic How it works in the field Real World Example Summary References
Definition of Hawthorne Studies “The Hawthorne Studies were conducted from 1927-1932 at the Western Electric Hawthorne Works in Chicago, where Harvard Business School Professor Elton Mayo examined productivity and work conditions.”
Definition of Hawthorne Studies Cont. “Mayo wanted to find out what effect fatigue and monotony had on job productivity and how to control them through such variables as rest breaks, work hours, temperatures and humidity.”
Mayo’s Experiment Five women assembled telephone relays, one supplied the parts. Made frequent changes in working conditions with their consent. Records were kept of relays made, temperature and humidity of rooms, medical and personal histories, eating and sleeping habits, and bits of conversation on the job. No one supervised the girls. They were told to work as they felt and at a comfortable pace.
Mayo’s Experiment Cont. Productive capacity was measured by recording the girls’ output for two weeks before the study began. First five weeks, no changes were made. Third stage, a pay system was ensured allowing the girls’ to earn in proportion to their efforts. Eight weeks later, two five-minute rest pauses were added.
Mayo’s Experiment Cont. Eighth phase, workday ended a half-day early. Ninth phase, the girls finished an hour earlier than usual. Five-day week introduced. Girls went back to no breaks, lunches and a full work week, output declined for those twelve weeks.
Results Researchers found that output rates weren’t directly related to the physical conditions of the work. Output went up when: They were put on piece-work for eight weeks. Two five minute rest pauses were introduced for five weeks. Rest pauses were lengthened to ten minutes. A hot meal was supplied during first pause. They were dismissed at 4:30 p.m. instead of 5:00 p.m.
Results Cont. Output slightly fell when six five minute pauses were added. It remained the same when they were dismissed at 4:00 p.m. instead of 4:30 p.m. Mayo believes “what actually happened was that six individuals became a team and the team gave itself wholeheartedly and spontaneously to cooperation in the experiment. The consequence was that they felt themselves to be participating freely and without afterthought, and were happy in the knowledge that they were working without coercion from above or limitations from below.”
Conclusions Work is a group activity. Social world for an adult is primarily patterned about work. Need for recognition, security and sense of belonging. Complaints, commonly a symptom manifesting disturbance of an individual’s status position.
Conclusions Cont. Attitudes and effectiveness are conditioned by social demands. Informal groups at work are strong social controls over the work habits and attitudes of a worker. Change from established society to adaptive society. Group collaboration.
Brainstorming: How this can be used in organizations Cooperation and communication with coworkers. Rearrange/reorganize job functions. Create an atmosphere of working as a team.
Nuts and Bolts: Explanation of Topic Interviewing Provide insight to workers moral, their likes and dislikes and how they felt about their bosses.
Nuts and Bolts: Explanation of Topic Cont. Role of Supervisor Retained the responsibility of making sure that their workers reached production levels, should lead their workers.
Nuts and Bolts: Explanation of Topic Cont. Management Need to gain active support and participation from workers, while maintaining managerial control. Be patient with workers, listen to them, and avoid creating emotional upsets.
Nuts and Bolts: Explanation of Topic Cont. Teamwork Cooperation, communication, sense of belonging. “Man’s desire to be continuously associated in work with his fellows is a strong, if not the strongest, human characteristic. Any disregard of it by management or any ill-advised attempt to defeat this human impulse leads instantly to some form of defeat for management itself.”
How it Works in the Field Aspects of Hawthorne Studies Workers Management Motivation Productivity
How it Works in the Field Cont. Workers Insights, suggestions, likes and dislikes, moral, training. Management Transfer of power to workers, knowing their workers.
How it Works in the Field Cont. Motivation Incentives to increase productivity and quality. Productivity By increasing the output rate and keeping costs down, the company will be able to increase profits.
Real World Example Swedish Case Pay system didn’t fit the structure of jobs and organization. Two years later an incentive system was added, productivity went up 45%.
Real World Example Cont. Swedish Case New incentive system provided motivation through tying cooperation and teamwork.
Exercise Brainstorm ideas that can motivate employees to increase productivity and find ways to implement them. Think of more efficient ways in which a process can be completed and who you might go to in order to find this out.
Summary Hawthorne Studies dealing with worker motivation and work productivity. Increase communication and cooperation among coworkers.
Summary Cont. Motivation can cause an increase in productivity Involve employees in decision making. Create a sense of belonging by creating teams.
Brainstorming Exercise What can a manager do to improve productivity?