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1912012 management theory


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Management Theory - 191

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1912012 management theory

  1. 1. By the end of the class you will have had an opportunity to:Gain an understanding of how our ideas about management have evolvedExamine the major schools of thought: Classical, Human Relations, Systems, BehaviouralExamine the ‘one best way’ versus ‘contingency’ view
  2. 2. Why should we care about the history of management ideas?Ideas that changed our world e.g TaylorismThey are around us every day e.g the factory system, McDonald’sWe need to know our ‘turf’, where our ideas came from
  3. 3. Concepts, models and theoriesWhat is a concept? Words that help us organise and sort knowledge e.g job satisfactionA model: a ‘half-way’ house to a theoryA theory: a set of concepts and ideas that systematically attempt to explain, understand and predict outcomesWe operate in the social sciences; we can ‘prove ‘nothing
  4. 4. The evolution of management theoryFirst came the practitioners: early attempts by entreprenuers to find better ways of doing things e.g. John Kay’s Flying ShuttleThen much later came the academics: knowledge from research about management and organisationsNow it has become an industry
  5. 5. Systems (Org. Environment) Management Science (Quantitative) Human Relations Behavioral Management Administrative Management Bureaucratic ManagementScientific Management1890 1940 2000
  6. 6. Classical Management Theory Organizations seeking ways to improve efficiency (Capitalist mode of production) Led to surplus value Satisfied (manipulated?) customers Application of technology/machinery which changed the way goods were produced (Industrial Revolution) Managers had to increase the efficiency of the worker- task mix
  7. 7. The Principles of Scientific Management 1911 Taylor was an engineer interested in improving efficiency How to reduce the time spent on each task by optimizing the way the task was done Develop rules of motion, standardized work implementation, proper working conditions Careful select ion of workers with right abilities for the job Train them to do the job and give proper incentives Support workers by carefully planning their work ‘One best way’
  8. 8. Application: FordismHenry Ford revolutionized car manufactureBy 1914, his Highland Park (Michigan) plant could turn out a complete chassis every 93 minutes!This was a stunning improvement over the earlier production time of 728 minutes [783% improvement!]Using a constantly-moving assembly line, subdivision of labour, and coordination of operations, Ford realized huge gains in productivityFounded the Ford empire
  9. 9. The assembly line at Ford’s 1914
  10. 10. Ford’s Dearborne plant 1914
  11. 11. Another cog in the wheel . .
  12. 12. FordismWhat images are symbolic of Scientific Management (and Fordism)?  How are people portrayed?  How is management portrayed?  What drives work? What are the limitations of this management approach?What is the legacy today of this means of production?
  13. 13. Problems with this approachManagers often implemented the increased output side of Taylor’s plan They did not allow workers to share in increased output Specialized jobs became very VERY boring Workers ended up distrusting Scientific ManagementWorkers could purposely “under-perform” (known as “soldiering” )Management responded with increased use of controls and later, machines
  14. 14. What do these organisation have in common?Oxfam NZNZ PoliceBNZWaikato Multiple Sclerosis TrustFraser Tech Rugby ClubEast Street Apostolic ChurchHamilton East Primary SchoolAnswer: to one degree or another all are bureaucracies
  15. 15. Classical Management Theory BureaucracyBureaucratic Organization (Max Weber) Ideal-type, intentionally rational and efficient form of organization Based on principles of logic, order and legitimate authority Bpecialisation of labour  Formal rules and procedures  Impersonality of process  Well defined hierarchy of authority  Career advancement based on merit
  16. 16. Key points of BureaucracyAuthority is the power to hold people accountable for their actionsPositions should be based on performance not social contactsPosition duties are clearly identified. People should know what is expected of themLines of authority should be clearly identified. Workers know who reports to whoRules, Standard Operating Procedures (SOPs), & norms used to determine how the firm operates
  17. 17. Critical Review: Classical Management Theories+ Encouraged managers to think rationally and systematically about the organisation of work Increased productivity through efficiency (work+ specialisation of simple tasks) People selected for tasks which they are best suited and+ can be learned easily
  18. 18. Human Relations Movement: managers who usegood human relations will achieve productivity
  19. 19. Human Relations Approaches to ManagementHawthorne studies (Elton Mayo 1924-1932) initial study to examine the relationship of economic incentives and physical conditions on worker output  “psychological factors” interfered with experiment Relay Assembly Test-Room Studies  designed to minimize the “psychological factors” of previous experiment  productivity increased regardless of changes made  factors that accounted for increased productivity  group atmosphere  participative supervision
  20. 20. Hawthorne StudiesLessons in Behaviour Shift toward social and human concerns as keys to productivity Hawthorne effect  people who are singled out for special attention perform as expected  workers are social beings driven by the need for belonging and acceptance
  21. 21. Hawthorne EffectsThe major finding was that almost regardless of the experimental manipulation (brightness of lights, humidity, breaks, group pressure, working hours, managerial leadership), the production of the workers seemed to improve.One reasonable conclusion is that the workers were pleased to receive attention from the researchers who expressed an interest in them.Work-group norms affect productivity.The workplace is also a social system.
  22. 22. Human Relations MovementTheory X and Y (McGregor, 1960)Managers assumptions about workers differ: Theory X: Assumes the average worker is lazy, dislikes work and will do as little as possible.  Managers must closely supervise and control through reward and punishment Theory Y: Assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes the work.  Managers should allow the worker great latitude, and create an organization to stimulate the worker
  23. 23. Human Relations MovementMaslow’s Theory of Human Needs need is a physiological or psychological deficiency a person feels the compulsion to satisfy  satisfied need is not a motivator of behavior progression principle: Hierarchy of needs  a need becomes a motivator once the need below it is satisfied
  24. 24. Critical Review: HR Management Theories Attempted to explain the psychological and sociological+ processes which influence performance Recognised workers’ needs+ Developments in motivation theory, social & personal interests in work+
  25. 25. BehaviouralistsWhat is it that effective managers do? Are there behaviours associated with them?Ohio & Michigan StudiesIdentified two dimensions: Task and PeopleBlake & Mouton’s Managerial GridGround breaking New Zealand research (2008) ‘A Day in the Life of a Manager’ Mintzberg
  26. 26. Some questions to ponder….How relevant are these models and theories to 21 st century organisations?We moved through stages: agricultural, pre- industrial, industrial, post-industrial, to a digital- knowledge economy, so how relevant are these 20th century theories now?Are our ideas about managing rooted in ‘pre-history’?What sort of models do we need to ‘invent’ for this century?What metaphors?
  27. 27. Conclusion: why we can’t continue to rely on the way we have done things in the past A combination of very rapid population growthover the last 50 years and reckless economicgrowth during the same time has stored upmassive problems for societies the world over. Nonation is immune. The scientific evidence tells usall we need to know: carry on with business-as-usual growth-at-all-costs, and we’re stuffed -Jonathon Porritt, www.forumforthefuture.orgarticle Living within our means (21 March 2009)