Session1 B


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Session1 B

  1. 1. Theories of OB <ul><ul><li>-Need for supervisors ( Shop Floor - Gang boss, Speed boss, Inspector and Repair boss / Planning Room - Route clerk, Time & Cost Clerk, Instruction Card Clerk, Disciplinarian) </li></ul></ul>
  2. 2. Classical Theory <ul><li>Scientific Management </li></ul><ul><li>Administrative Management </li></ul><ul><li>Bureaucracy </li></ul>
  3. 3. Bureaucracy <ul><li>Max Weber </li></ul><ul><li>Gave 3 types of legitimate authority: </li></ul><ul><li>- Rational-legal </li></ul><ul><li>- Traditional </li></ul><ul><li>- Charismatic </li></ul>
  4. 4. Characteristics of Bureaucracy <ul><li>Division of work </li></ul><ul><li>Hierarchy of Authority </li></ul><ul><li>Rules and Regulations </li></ul><ul><li>Impersonal conduct </li></ul><ul><li>Staffing </li></ul><ul><li>Technical competence </li></ul><ul><li>Official Records </li></ul>
  5. 5. Advantages of Bureaucracy <ul><li>Proper delegation of authority </li></ul><ul><li>Consistency of actions </li></ul><ul><li>Behaviour predictable </li></ul><ul><li>Leads to efficiency </li></ul>
  6. 6. Disadvantages of Bureaucracy <ul><li>No emphasis on individual goals </li></ul><ul><li>Discourages innovation </li></ul><ul><li>Structure is tall-communication problem </li></ul><ul><li>No consideration for informal or inter-personal difficulties </li></ul><ul><li>Not effective under dynamic environment </li></ul>
  7. 7. Scientific Management <ul><li>Frederick W. Taylor </li></ul><ul><li>Principles of scientific management </li></ul><ul><li>- one best way to do each job. </li></ul><ul><li>- select the best individual for the position. </li></ul><ul><li>- ensure that work be carried out in prescribed fashion through training and by increasing wages for those workers who follow current procedures. </li></ul><ul><li>- equal division of work and responsibilities </li></ul>
  8. 8. Scientific Management <ul><ul><li>Mechanical </li></ul></ul><ul><ul><li>- Time and Motion Studies </li></ul></ul><ul><ul><li>- Differential piece rate system </li></ul></ul><ul><ul><li>- Standardisation of tools, methods and working conditions </li></ul></ul><ul><ul><li>- Need for supervisors </li></ul></ul><ul><ul><li>Shop Floor – Inspector, Gang boss, Speed boss, Repair boss </li></ul></ul><ul><ul><li>Planning Room – Route clerk, Time and cost clerk, Instruction Card Clerk, Disciplinarian </li></ul></ul>
  9. 9. <ul><li>Philosophical </li></ul><ul><li>Attitudinal change on the part of management </li></ul><ul><li>and workers </li></ul><ul><li>- efforts for increase in production </li></ul><ul><li>- spirit of mutual trust and confidence </li></ul><ul><li>- developing scientific attitude towards problems </li></ul>
  10. 10. Criticism of Scientific Management <ul><li>Confined mostly to production management </li></ul><ul><li>Functional foremanship against unity of command </li></ul>
  11. 11. Administrative Management Theory <ul><li>Henri Fayol </li></ul><ul><li>Father of general management </li></ul><ul><li>5 functions of management </li></ul><ul><li>14 principles of management </li></ul><ul><li>- Division of work </li></ul><ul><li>- Authority and Responsibility </li></ul><ul><li>- Discipline </li></ul><ul><li>- Espirit de corps </li></ul>
  12. 12. contd… <ul><li>Unity of command </li></ul><ul><li>Unity of direction </li></ul><ul><li>Subordination of individual to general interest </li></ul><ul><li>Remuneration </li></ul><ul><li>Centralization </li></ul><ul><li>Scalar chain </li></ul><ul><li>Order </li></ul><ul><li>Equity </li></ul><ul><li>Stability </li></ul><ul><li>Initiative </li></ul>
  13. 13. <ul><li>Functional Principle – Division of labor ( Horizontal ) – departments are set up so that people in each dept perform similar work </li></ul><ul><ul><li>Allows one manager to supervise many similar tasks </li></ul></ul><ul><li>Scalar Principle – Chain of command – ( Vertical ) structure of org such that each level has it’s own level of responsibility </li></ul><ul><ul><li>each worker has only one supervisor to report to </li></ul></ul><ul><li>Line/Staff Principle – Differentiates between personnel </li></ul><ul><ul><li>Line – responsible for meeting org goals – production, engineers, faculty, etc. </li></ul></ul><ul><ul><li>Staff – support line’s activities – personnel dept, quality control, admin, custodial, etc. </li></ul></ul><ul><li>Span of Control – Number of subordinates under each mgr </li></ul><ul><ul><li>Flat – each worker has more autonomy </li></ul></ul><ul><ul><li>Tall – more authority to supervisors </li></ul></ul>Pillars of Classical Theory
  14. 14. Neo-Classical or Human Relations Approach <ul><li>Inspiration of Neo-classical theorists was Hawthorne studies by Elton Mayo </li></ul><ul><li>Study to determine effect of illumination and other conditions on productivity </li></ul><ul><li>- Illumination Experiment </li></ul><ul><li>- Relay Assembly Room Experiment </li></ul><ul><ul><ul><li>Shorter working hours, rest pauses, improved physical conditions,improved physical conditions,friendly and informal supervision </li></ul></ul></ul>
  15. 15. Contd… <ul><li>- Bank Wiring Observation Room Experiment </li></ul><ul><ul><ul><li>Group given room by themselves </li></ul></ul></ul><ul><ul><ul><li>Records of 18 months kept prior to study were same </li></ul></ul></ul><ul><ul><ul><li>No significant changes, observations were: </li></ul></ul></ul><ul><ul><ul><ul><li>Each individual restricting output </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Group had own unofficial standards of performance </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Individual output remained fairly constant </li></ul></ul></ul></ul>
  16. 16. Systems Theory – Katz & Kahn <ul><li>Systems Theory – developed to account for modern organization’s need to adapt to changing environment </li></ul><ul><li>Must consider organization within the context of its relationship to the environment </li></ul><ul><li>Cannot study individual or small group behavior in isolation, all part of an interacting system affecting all other parts </li></ul>
  17. 17. Systems Theory Model <ul><li>Input Resources </li></ul><ul><li>Families </li></ul><ul><li>Banks </li></ul><ul><li>Environment </li></ul><ul><li>Material suppliers </li></ul><ul><li>Input </li></ul><ul><li>Human Resources </li></ul><ul><li>Financial Resources </li></ul><ul><li>Physical Resources </li></ul><ul><li>Materials </li></ul><ul><li>Information </li></ul><ul><li>Process </li></ul><ul><li>Organizational Structure </li></ul><ul><li>Admin Decision Making </li></ul><ul><li>Org policies, procedures </li></ul><ul><li>Production process </li></ul><ul><li>Org Climate </li></ul><ul><li>Output </li></ul><ul><li>Products/Services </li></ul><ul><li>Satisfaction </li></ul><ul><li>Reputation </li></ul><ul><li>Profit/loss </li></ul><ul><li>Wages/Salaries </li></ul><ul><li>Taxes </li></ul><ul><li>Output Users </li></ul><ul><li>Consumers </li></ul><ul><li>Clients </li></ul><ul><li>Government </li></ul><ul><li>Non-consumers </li></ul>Feedback
  18. 18. Contingency Approach <ul><li>Improvement over other approaches </li></ul><ul><li>Managerial actions and organisational design appropriate to a given situation </li></ul><ul><li>No one best approach – situation dependent </li></ul><ul><li>Is an outgrowth of systems approach </li></ul>
  19. 19. McKinsey 7S Framework <ul><li> </li></ul>
  20. 20. 7 S <ul><li>Strategy: The direction and scope of the company over the long term. </li></ul><ul><li>Structure: The basic organization of the company, its departments, reporting lines, areas of expertise, and responsibility (and how they inter-relate). </li></ul><ul><li>Systems: Formal and informal procedures that govern everyday activity, covering everything from management information systems, through to the systems at the point of contact with the customer (retail systems, call centre systems, online systems, etc). </li></ul>
  21. 21. 7 S <ul><li>Skills: The capabilities and competencies that exist within the company. </li></ul><ul><li>Shared values: The values and beliefs of the company. Ultimately they guide employees towards 'valued' behavior. </li></ul><ul><li>Staff: The company's people resources and how they are developed, trained, and motivated. </li></ul><ul><li>Style: The leadership approach of top management and the company's overall operating approach. </li></ul>