Theoretical Foundations  Classical Theories of  Organizations
Theory  An explanation for how or  why something occurs. . .  Question: What is the  most efficient and effective  means o...
Functions of Theory  Describe  Explain  Predict  Control  Classical approaches to organizational   management and ear...
Classical Theories of OrganizationsEmerged in early part of the twentieth century.Models were military and the Catholic ...
MANAGEMENT LEARNINGClassical ManagementMODULE GUIDE 3.1    Taylor’s scientific management sought efficiency in     job pe...
CLASSICAL MANAGEMENTScientific ManagementScientific Management     Emphasizes careful selection and training of workers ...
Taylor’s Theory of Scientific Management    Frederick Taylor (1856-1915)       “The Father of Scientific Management”    ...
CLASSICAL MANAGEMENTScientific Management   Taylor’s Four Principles of Scientific Management   1. Develop a “science” for...
Weber’s Theory of Bureaucracy Max Weber (1864-1920)    German Sociologist    Theory of Social and Economic Organization...
CLASSICAL MANAGEMENTBureaucracy   Bureaucratic Organizations      Defined by Max Weber in late 19th century      Focuse...
CLASSICAL MANAGEMENTBureaucracy                Characteristics of an Ideal Bureaucracy    Clear division of labor Jobs ar...
Fayol’s Administrative Theory Henri Fayol (1841-1925)    General and Industrial Management    Principles and Elements o...
Fayol’s Administrative Theory   Five Elements of Management -- Managerial    Objectives     Planning     Organizing    ...
Fayol’s Administrative Theory   Fourteen Principles of Management (Tools for Accomplishing    Objectives)        Divisio...
CLASSICAL MANAGEMENTAdministrative Principals   Administrative Principals      Attempts to document the experiences of  ...
Fayol’s Administrative Theory   Positioned communication as a necessary    ingredient to successful management   Applica...
CLASSICAL MANAGEMENTAdministrative Principals Henri Fayol – Administration  Industrielle et Generale - 1916           Fiv...
CLASSICAL MANAGEMENTAdministrative Principals   Mary Parker Follett – 1920’s      Foresighted approach      Advocated m...
MANAGEMENT LEARNINGBehavioral ManagementMODULE GUIDE 3.2   The Hawthorne studies focused attention on the    human    sid...
BEHAVORIAL MANAGEMENTThe Hawthorne Studies “The Hawthorne Studies were  conducted from 1927-1932 at the  Western Electric...
Definition of Hawthorne StudiesCont. “Mayo wanted to find out what effect  fatigue and monotony had on job  productivity ...
Mayo’s Experiment  Five women assembled telephone relays, one supplied the   parts.  Made frequent changes in working co...
Mayo’s Experiment Cont.  Productive capacity was measured by recording the girls’   output for two weeks before the study...
Mayo’s Experiment Cont.  Eighth phase, workday ended a half-day early.  Ninth phase, the girls finished an hour earlier ...
Results  Researchers found that output rates weren’t   directly related to the physical conditions of the   work.  Outpu...
Results Cont.  Output slightly fell when six five minute pauses were added.  It remained the same when they were dismiss...
Conclusions  Work is a group activity.  Social world for an adult is primarily patterned about work.  Need for recognit...
BEHAVORIAL MANAGEMENTThe Hawthorne Studies  Hawthorne Studies - 1924      Studies tried to determine how economic       ...
BEHAVIORAL MANAGEMENTMaslow’s “Hierarchy of Needs”
BEHAVORIAL MANAGEMENTMcGregor McGregor’s The Human Side of  Enterprize     Separated managers into two beliefs / styles ...
Theory X versus Theory Y  Source:                  Figure 2.3
BEHAVORIAL MANAGEMENTArgyris  Argyris’ Personality and Organization      Argues that employees:         want to be trea...
The Evolution of Management Theory
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  • Classical Management began in the late 1800’s. It has three subfields; Scientific Management, Bureaucratic Organizations and Administrative Principals.
  • Frederick Taylor was the first to scientific methods such as standard times to the management process.
  • Although Taylor’s approach was a major improvement, the Scientific approach is often criticized for being to mechanistic.
  • The intent was good. Unfortunately, bureaucratic organizations have not lived up to expectations.
  • And the guidelines were excellent. But, today’s bureaucratic organizations are terribly inefficient. So, what happened? The answer – poor implementation.
  • Mary Parker Follett was well ahead of her time in the field of management theory. Many of her ideas were not implemented until decades later.
  • Henri Fayol’s five duties were very close to the modern management functions of planning, leading, organizing and controlling.
  • The idea that employee’s should own a share of the business is one of the most powerful employee motivators.
  • Behavioral management theory brought the human side of employees into management considerations regarding productivity.
  • The studies grew out of preliminary experiments at the plant from 1924-1927 on the effect of light and productivity. Those experiments showed no clear connection between productivity and the amount of illumination but researchers began to wonder what kind of changes would influence output.
  • Telephone relays - a small mechanism of about forty parts which had to be assembled and dropped in a chute when completed. Changes made were temperature and humidity of the rooms, hours worked in a week and in a day, the number of breaks they received, and when they ate their lunch.
  • By adding a pay system this centralized the girls’ financial interest on the study. The two added rest pauses were at 10 a.m. and 2 p.m. They then were given a light lunch in the pauses.
  • which ran through the summer of 1928. Introduction of five day week lasted through the summer of 1928.
  • As the girls went from one phase to the next, output rate increased. At a forty eight hour week, the girls produced 2,400 relays a week each.
  • The girls complained that the six five minutes pauses interrupted their work rhythm. Once they were put back to normal working hours and everything, the highest output was recorded, averaging 3000 relays a week.
  • The need for recognition, security and sense of belonging is more important in determining workers’ morale and productivity than physical conditions of the work place.
  • “ People given special attention are likely to perform as expected .” “ People given special attention are likely to perform as expected .”
  • Maslow was a pioneer in the field of Behavioral Management. Let’s look a each of the needs he described.
  • Scholars often equate Theory X with Classical management theory and Theory Y with Behavioral management theory.
  • Many of modern day management practices are based on Argyris’ principals.
  • Management learning classical approaches

    1. 1. Theoretical Foundations Classical Theories of Organizations
    2. 2. Theory An explanation for how or why something occurs. . . Question: What is the most efficient and effective means of running an organization?
    3. 3. Functions of Theory Describe Explain Predict Control Classical approaches to organizational management and early organizational theories were designed to predict and control behavior in organizations.
    4. 4. Classical Theories of OrganizationsEmerged in early part of the twentieth century.Models were military and the Catholic Church.Features Strict CONTROL of workers Absolute CHAINS of COMMAND PREDICTABILITY of behavior UNIDIRECTIONAL downward influence
    5. 5. MANAGEMENT LEARNINGClassical ManagementMODULE GUIDE 3.1  Taylor’s scientific management sought efficiency in job performance.  Weber’s bureaucratic organization is supposed to be efficient and fair.  Administrative principles describe managerial duties and practices.
    6. 6. CLASSICAL MANAGEMENTScientific ManagementScientific Management  Emphasizes careful selection and training of workers and supervisory support  Described by Frederick Taylor’s “Principals of Management” in 1911.
    7. 7. Taylor’s Theory of Scientific Management  Frederick Taylor (1856-1915)  “The Father of Scientific Management”  Maximize worker capacity and profits  PROBLEM: Get employees to work at their maximum capacity  PRIMARY FOCUS: TASKS  http://www.northstar.k12.ak.us/schools/ryn/projects/inventors/taylor/taylor.html  Systematic Soldiering  Deliberately working slowly as to avoid expanding more effort than deemed necessary  Reasons Reduction in workforce due to decreased need Piecework system of remuneration - raise production requirements without increasing pay
    8. 8. CLASSICAL MANAGEMENTScientific Management Taylor’s Four Principles of Scientific Management 1. Develop a “science” for each job—rules of motion, standard work tools, proper work conditions. 2. Hire workers with the right abilities for the job. 3. Train and motivate workers to do their jobs according to the science. 4. Support workers by planning and assisting their work by the job science.
    9. 9. 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 More DESCRIPTIVE  http://www2.pfeiffer.edu/~lridener/DSS/Weber/WEBRPER.HTML
    10. 10. CLASSICAL MANAGEMENTBureaucracy Bureaucratic Organizations Defined by Max Weber in late 19th century Focused on definitions of authority, responsibility and process Intended to address the inefficiencies of organizations at that time
    11. 11. CLASSICAL MANAGEMENTBureaucracy Characteristics of an Ideal Bureaucracy  Clear division of labor Jobs are well defined, and workers become highly skilled at performing them.  Clear hierarchy of authority and responsibility are well defined, and each position reports to a higher-level one.  Formal rules and procedures Written guidelines describe expected behavior and decisions in jobs; written files are kept for historical record.  Impersonality Rules and procedures are impartially and uniformly applied; no one gets preferential treatment.  Careers based on merit Workers are selected and promoted on ability and performance; managers are career employees of the organization.
    12. 12. Fayol’s Administrative Theory Henri Fayol (1841-1925) General and Industrial Management Principles and Elements of Management - how managers should accomplish their managerial duties PRIMARY FOCUS: Management (Functions of Administration) More Respect for Worker than Taylor Workers are motivated by more than money Equity in worker treatment More PRESCRIPTIVE http://www.lib.uwo.ca/business/fayol.html
    13. 13. Fayol’s Administrative Theory  Five Elements of Management -- Managerial Objectives Planning Organizing Command Coordination Control  Keep machine functioning effectively and efficiently  Replace quickly and efficiently any part or process that did not contribute to the objectives
    14. 14. Fayol’s Administrative Theory  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’s bridge  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”
    15. 15. CLASSICAL MANAGEMENTAdministrative Principals Administrative Principals Attempts to document the experiences of successful managers Analyzes organizations in their social context Two key contributors Henri Fayol Mary Parker Follett
    16. 16. Fayol’s Administrative Theory  Positioned communication as a necessary ingredient to successful management  Application in the Modern Workplace Fayol’s elements of management are recognized as the main objectives of modern managers Planning - more participatory Organizing - human relationships and communication IMPORTANT TABLE 2.1 Comparison of Managerial Skills (p. 32) Especially applicable for large organizations (military)
    17. 17. CLASSICAL MANAGEMENTAdministrative Principals Henri Fayol – Administration Industrielle et Generale - 1916 Five Duties of Managers According to Henri Fayol 1. Foresight—complete a plan of action for the future. 2. Organization—provide and mobilize resources to implement plan. 3. Command—lead, select, and evaluate workers. 4. Coordination—fit diverse efforts together, ensure information is shared and problems solved. 5. Control—make sure things happen according to plan, take necessary corrective action.
    18. 18. CLASSICAL MANAGEMENTAdministrative Principals Mary Parker Follett – 1920’s Foresighted approach Advocated managers and workers work in harmony and employees should own a share of the business Forerunner of “managerial ethics” and “social responsibility”
    19. 19. MANAGEMENT LEARNINGBehavioral ManagementMODULE GUIDE 3.2  The Hawthorne studies focused attention on the human side of organizations.  Maslow described a hierarchy of human needs with self-actualization at the top.  McGregor believed managerial assumptions create self- fulfilling prophesies.  Argyris suggests that workers treated as adults will be more productive.
    20. 20. BEHAVORIAL MANAGEMENTThe 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.”
    21. 21. Definition of Hawthorne StudiesCont. “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.”
    22. 22. 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.
    23. 23. 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.
    24. 24. 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.
    25. 25. 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.
    26. 26. 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.”
    27. 27. 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.
    28. 28. BEHAVORIAL MANAGEMENTThe Hawthorne Studies Hawthorne Studies - 1924 Studies tried to determine how economic incentives and physical environment affected productivity Involved 21,000 people over 6 years Concluded that human needs were an important factor in increasing productivity Resulted in “The Hawthorne Effect”
    29. 29. BEHAVIORAL MANAGEMENTMaslow’s “Hierarchy of Needs”
    30. 30. BEHAVORIAL MANAGEMENTMcGregor McGregor’s The Human Side of Enterprize  Separated managers into two beliefs / styles 1. Theory X Managers • Believe employees generally dislike work, lack ambition, act irresponsibly, resist change and prefer to follow. • Use classical directive “command and control” style 2. Theory Y Managers • Believe employees are willing to work, capable of self control and self direction, responsible and creative • Use behavioral “participative” style
    31. 31. Theory X versus Theory Y Source: Figure 2.3
    32. 32. BEHAVORIAL MANAGEMENTArgyris Argyris’ Personality and Organization Argues that employees: want to be treated as adults will perform better with less restrictive / defined tasks runs counter to Scientific & Administrative theories that argue for close supervision
    33. 33. The Evolution of Management Theory
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