Panel 2.1: The Historical Perspective Behavioral Viewpoint Emphasis on importance of understanding human behavior & motivating & encouraging employees toward achievement Early Behaviorists Proponents: Hugo Munsterberg, Elton Mayo Classical Viewpoint Emphasis on ways to manage work more efficiently Administrative Management Concerned with managing the entire organization Proponents: Henry Taylor Max Weber Quantitative Viewpoint Applies quantitative techniques to management Management Science Focuses on using mathematics to aid in problem solving and decision making Scientific Management Emphasized scientific study of work methods to improve productivity of individual workers Proponents: Frederick W. Taylor Frank & Lillian Gilbreth Human Relations Movement Proposed better human relations could increase worker productivity Proponents: Abraham Maslow Douglas McGregor Operations Management Focuses on managing the production and delivery of an organization’s products or services more effectively Behavioral science approach Relies on scientific research for developments theory to provide practical manager tools
5 Scientific Management Scientific Management: emphasized the scientific study of work methods to improve the productivity of individual workers Two of its chief proponents were Frederick W. Taylor,& Frank and Lillian Gilbreth
Scientific Management Credit for Scientific Management goes to Frederick Taylor who was hired by Midvale Steel company in the US in 1878. Taylor discovered that production and pay were poor ,inefficiency and waste were prevalent ,and most companies had unused potential . He concluded that management decisions were unsystematic and no efforts were made to determine the best means of production
Scientific Management The Taylor introduced Scientific Management (he is called the Father of Scientific Management ) which recommended the application of scientific methods to analyze work and to determine the methods to complete the tasks efficiently
8 Principles of Scientific Management Workers are essentially economic beings Workers should be developed to their maximum potential Competitive pay system Cooperation between managers and workers Organizational and individual goals should be compatible
9 Scientific management
Study jobs systematically with a view to improving
the way tasks are performed
Select the best employees for the various jobs.
Train the employees in the most efficient methods
Offer incentives (higher wages) to the most able
employees and use piece-rate system of payment to encourage greater effort.
Use rest pauses to combat fatigue
Entrust to supervisor the task of ensuring that
employees are using the prescribed methods
Scientific Management The ideas of scientific Management dramatically increased productivity across all industries ,and they are still important today.
11 Administrative Management Administrative Management: concerned with managing the total organization Among the pioneering theorists were Henry Fayol & Max Weber
12 Planning You set goals and decide how to achieve them Organizing You arrange tasks, people, & other resources to accomplish the work Controlling You monitor performance, compare it with goals and take corrective action as needed Leading You motivate, direct & otherwise influence people to work hard to achieve the organization’s goals Henry Fayol and the Functions of Management Henry Fayol was the first to systematize management management behavior– he was the first to identify the major functions of management: planning, organizing, leading, controlling, as well as coordinating
13 Fayal's 14 Principles of Management Division of labor-Divide work into specialized tasks and assign responsibilities to specific individuals. Authority -Delegate authority along with responsibility Discipline Make expectations clear and punish violators
Fayal's 14 Principles of Management 4-Unity of commandEach employee has one and only one boss 5-Unity of Direction- Employees efforts should be focused on achieving organization’s direction. 6-Subordination of Individual interest to the general interest When at work, only work things should be pursued or thought about.
Fayal's 14 Principles of Management RemunerationEmployees receive fair payment for services, Centralization- Decisions are made from the top. Scalar Chain(line of authority). Formal chain of command running from top to bottom of the organization, like military Order-All materials and personnel have a prescribed place, and they must remain there.
Fayal's 14 Principles of Management Equity-Equality of treatment Stability and tenure of personnel-Promote employee loyalty and longevity Initiative-Thinking out a plan and do what it takes to make it happen.
Fayal's 14 Principles of Management Esprit de corps-Promote a unity of interest between employees and management
18 Max Weber & the Rationality of Bureaucracy : To Weber, a bureaucracy(Successful implement the actions of an organization of any size in achieving its purpose.) was a rational, efficient ideal organization based on principles of logic—he felt good organizations should have five bureaucratic features
Max Weber & the Rationality of Bureaucracy Labor is divided with clear definitions of authority and responsibility. Positions are organized in a hierarchy of authority ,with each position under the authority of a higher one
Max Weber & the Rationality of Bureaucracy Rules and regulations determine and standardize behavior Administrative acts and decisions are recorded in writing Management is separate from ownership in any organization.
21 Classical bureaucracyMax Weber, 1947 Hierarchy of authority Rights and duties are attached to the various positions Division of labour Rules and procedures Documentation in which info is recorded in written form Technical competence Separation of ownership from control
22 The Problem with the Classical Viewpoint The classical viewpoint tends to be too mechanistic: it tends to view humans as cogs within a machine, not taking into account the importance of human needs
Behavioral Management Theory
Human Relations ManagementHawthorne Studies Hawthorne studies was conducted at the western Electric Company in the US between 1924-1932 Elton Mayo was a professor of Industrial Research at the Harvard School of Business Administration He is called the ‘Father of human relations movement .’ 24
Elton Mayo & the Supposed Hawthorne Effect Elton Mayo and his colleagues conducted studies at Western Electric’s Hawthorne Plant and began with an investigation to see if different lighting affected workers’ productivity
Hawthorne studies The Hawthorne project involved three sets of studies The Relay Assembly Room Study The Bank Wiring Room Illumination Studies
Illumination Studies Illumination studies constituted the first set of experiments and took place between 1924 and 1927 Experiment -Lighting was decreased Result-The researches concluded that factors other than lighting were at work
Experiment The first study was conducted by a group of engineers seeking to determine the relationship of lighting levels to worker productivity. Surprisingly enough, they discovered that worker productivity increased as the lighting levels decreased
The Relay Assembly Room study A few years later, a second group of experiments began. Harvard researchers Mayo and F. J. Roethlisberger supervised a group of five women in a bank wiring room. They gave the women special privileges, such as the right to leave their workstations without permission, take rest periods, enjoy free lunches, and have variations in pay levels and workdays. This experiment also resulted in significantly increased rates of productivity.
The Bank Wiring Room Study For this study a group of 14men who wired telephone banks was observed in a standard shop condition An observer was stationed in the room with instructions to take continuous note’s on the workers actions . The observer were not allowed to give orders or to get involved in conversations with the workers .
The Bank wiring Room Study The researches concluded that the behavioral norms set by the work group had a powerful influence over the productivity of the group. The power of the peer group and the importance of group influence on individual behavior and productivity were confirmed in the bank wiring room.
Human Resource Approach The Human relations approach highlighted the impact of behavior on performance .Interpersonal behavior has its impact on satisfaction which in turn may lead to improved performance . Abraham Maslow and Douglas Ac Greg or .Their contribution form the human resource approach
Maslow Hierarchy Of Needs Self-Actualization Esteem Needs Social Needs Safety Needs Physiological Needs
Behavioral Science Approach Psychologist ,sociologists and others began studying people at work .The behavioral science approach believes that an individual is motivated to work for many reasons in addition to making money and forming interpersonal relationships.
Behavioral Science Approach The principals of behavioral science approach are being practiced in every organization and behavioral science as a course more popularly known as Organization Behavior.
36 Panel 2.2: The contemporary perspective: Three Viewpoints The Quality Management Viewpoints Three approaches The System Viewpoint Regards the organization as a system of interrelated parts that operate together to achieve a common purpose The Contingency Viewpoint Emphasizes that a manager’s approach should vary according to—I.e. be contingent on—the individual and environmental situation Total Quality Management Comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction Proponents: W. Edward Deming Joseph M. Juran Quality Control Strategy for minimizing errors by managing each state of production Proponent: Walter Stewart Quality Assurance Focuses on the performance of workers urging employees to strive for “zero defects”
37 Systems Approach (60-70s) A system is set of interrelated and interdependent parts arranged in a manner that produces a unified whole
38 Open and Closed Systems Open System continually interacts with its environment Closed System has little interaction with its environment; it receives very little feedback from the outside
39 The Systems Viewpoint The Systems Viewpoint regards the organization as a system of interrelated parts By adopting this perspective you can look at your organization in two ways A collection of subsystems—parts making up the whole system A part of the larger environment
40 The Four Parts of a System Outputs The products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization Inputs The people, money, information, equipment, and materials required to produce and organization’s goods or services Transformational Processes The organization’s capabilities in management and technology that are applied to converting inputs to outputs Feedback Information about the reaction of the environment to the outputs that affect the inputs
41 Contingency approach The contingency approach sometimes called the situational approach says that organizations are different ,face different situations ,and require different ways of managing.
42 Contingency approach A good way to describe contingency If this is the way my situation is then this is the best way for me to manage in this situation This approach is intuitively logical because organizations and even units within the same organization differ-in terms of size ,goals , work activities.
43 The Contemporary Perspective: The Contingency Viewpoint The Contingency Viewpoint emphasizes that a manager’s approach should vary according to—that is, be contingent on—the individual and the environmental situation
Contingency approach The Primary value of the contingency approach is that it stresses that there are no simplistic or universal rules for managers to follow
Quantitative Approach The Quantitative approach evolved from mathematical and statistical solutions developed for military problems during word war II. After the war was over , many of these techniques used for military problems were applied to business
Quantitative Approach One group of military officers ,nicknamed the whiz kids joined Ford Motor Company in the mid -1940s and immediately began using statistical methods and Quantitative models to improve decision making
47 The Contemporary Perspective: The Quality Management Viewpoint The Quality Management Viewpoint includes quality control, quality assurance, and total quality management
48 Total Quality Management: Creating an Organization Dedicated to Continuous Improvement
Total Quality Management is a comprehensive approach—led by top managers and supported throughout the organization—dedicated to continuous quality improvement, training and customer satisfaction
Four Components of TQM: Make Continuous Improvement a Priority Get Every Employee Involved Listen to and Learn from Customers and Employees Use Accurate Standards to Identify and Eliminate Problems