Developments in the Era of Social Person Scientific Management Social Person Era Toward Toward Toward GeneralOrganizational Organizational Management Behavior Theory Theory
Background of organization• The Greek philosopher Plato wrote about the essence of leadership.• Aristotle addressed the topic of persuasive communication.• Adam Smith advocated a new form of organizational structure based on the division of labor.• One hundred years later, German sociologist Max Weber wrote about rational organizations and initiated discussion of charismatic leadership.• Frederick Winslow Taylor introduced the systematic use of goal setting and rewards to motivate employees.• In the 1920s, Australian-born Harvard professor Elton Mayo and his colleagues conducted productivity studies at Western Electrics Hawthorne plant in the United States.• Though it traces its roots back to Max Weber and earlier, organizational studies began as an academic discipline with the advent of scientific management in the 1890s, with Taylorism representing the peak of this movement..• After the First World War, the focus of organizational studies shifted to how human factors and psychology affected organizations, a transformation propelled by the identification of the Hawthorne Effect. This Human Relations Movement focused on teams, motivation, and the actualization of the goals of individuals within organizations.Prominent early scholars included Chester Barnard, Henri Fayol, Frederick Herzberg, Abraham Maslow, David McClelland, and Victor Vroom.
Scientific Management• Scientific management is defined as the use of the scientific method to define the “one best way” for a job to be done.• Frederick W. Taylor is known as the “father” of scientific management. Taylor’s work at the Bethlehem Steel companies motivated his interest in improving efficiency. a. Taylor sought to create a mental revolution among both workers and managers by defining clear guidelines for improving production efficiency. He defined four principles of management. b. His “pig iron” experiment is probably the most widely cited example of scientific management. c. Using his principles of scientific management, Taylor was able to define the one best way for doing each job. d. Overall, Taylor achieved consistent improvements in productivity in the range of 200 percent. He affirmed the role of managers to plan and control and of workers to perform as they were instructed.• He was the first nationally known management thinker. His “Taylorism” or “scientific management” was amajor contribution to business operations as we know them today. The overview of his studies is given below: a. Taylor developed scientific management to counter the problem of soldiering by workers— deliberately working below full capacity. b. Taylor pioneered the time-and-motion study, where by a work task is broken down into its various motions, is improved by eliminating unnecessary motions, and then the motions timed to determine optimal daily production. c. Through his four principles of scientific management, Taylor advocated scientific study of the task to find the best work method rather than relying on traditional methods handed down from one worker to another.
Scientific Management d. Taylor successfully implemented his theory at Bethlehem Steel in two famous studies involving shoveling and pig-iron handling. e. Although real and imagined abuses or misuses of scientific management occurred (leading in one instance to a congressional investigation—and thereby adding to Taylor’s notoriety), Taylor’s strong support of science and his redefining the role of managers remains his primary contribution to management theory.•Taylor’s Four Principles of Scientific Management: 1. Study each part of the task scientifically, and develop a best method to perform it. 2. Carefully select workers and train them to perform a task using the scientifically developed method. 3. Cooperate fully with workers to ensure they use the proper method. 4. Divide work and responsibility so management is responsible for planning work methods using scientific principles and workers are responsible for executing the work accordingly.•Frank and Lillian Gilbreth (1868-1924 and 1878-1972 respectively):They did studies aimed at eliminating unnecessary motions and way of reducing task fatigue. a. They perfected the time-and-motion study techniques first introduced by Taylor. b. Together they provided the first vocabulary for identifying hand, arm, and body motions used at work which they called “Therbligs.” c. Lillian’s doctoral dissertation was published as the book, The Psychology of Management, one of the first books published on the findings of psychology in the workplace. d. Frank “proved” the value of motion studies in his own construction company whose productivity was nearly three times better than his competitors who used the older work methods.
Toward Organizational Behavior Sociometry • Sociometry, an analytical technique to classify individuals into groups that were capable of harmonious relationships • Sociometry research has sought to combine work groups such that they would be superior in quality and quantity of work as well as conducive to higher morale for the participants • “A process of classification, which is calculated to bring individuals together who are capable of harmonious interpersonal relationship and so create a social group which can function at the maximum efficiency and with a minimum of disruptive tendencies and processes” Group Dynamic • A group was a never at a steady state of equilibrium, but was in a continuos process of mutual adaptation that Lewin called ‘quasi-stationary equilibrium”. • Group Dynamic, the way groups and individuals act and react to changing circumstances. – (1) Group productivity: why was it that groups are so ineffective in getting things done? – (2) Communication: how influence is spread throughout a group. – (3) Social perception: how a persons group affected the way they perceived social events. – (4) Intergroup relations. – (5) Group membership: how individuals adjust to these conditions. – (6) training leaders: improving the functioning of groups (T-groups).
Toward Organizational Behavior Social motivation • Maslow focused on evolutionary, dynamic qualities of human needs, human relation thinking emphasized the social, belonging needs. • Human beings have certain needs that they try to satisfy. Need is one of the oldest notion about motivation. • From the work of Henry Murray, he built the most widely recognized theories of motivation. Needs : physiological, safety, love, esteem and self actualization. • These basic needs are related to each other and were arranged in hierarchy of “ prepotency” Participation – Participation was viewed as democracy in action, opening communication channel, diffusing authority, motivating people to give a greater commitment of themselves to organizational goals. Leadership – Found a two dimensional view of leadership: – Even thought this both of studies used different terms, each develop two-by-two matrix of leader behaviors. • Task Oriented : Production oriented and initiating structure dimension. • Interpersonal relation oriented : Employee oriented and consideration dimension. – The two dimension did not appear mutually exclusive, that is why a leader can combine them.
Toward Organizational Behavior Hawthorne Studies and human relation • 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 reflected the scientific management tradition of seeking greater efficiency by improving the tools and methods of work—in this case, lighting. 1. In the first set of studies, no correlation was found between changes in lighting conditions and individual work performance. In fact, performance nearly always went up with any change— brighter or darker—in illumination. 2. In the second set of studies, the concept of the Hawthorne effect emerged. The Hawthorne effect refers to the possibility that individuals singled out for a study may improve their performance simply because of the added attention they receive from the researchers, rather than because of any specific factors being tested in the study. 3. The third set of studies centered on group production norms and individual motivation. 4. Although simplistic and methodologically primitive, the Hawthorne studies established the impact that social aspects of the job (and the informal group) have on productivity.
Toward Organizational Behavior Hawthorne Studies and human relation • Conclusions: economic rewards didn’t totally explain behavior; workers respond to groups norms, social pressures 1. In later experiments, variables such as wage levels, rest periods and length of the work day were varied 2. Worker performance seemed to increase over time leading Mayo and his colleagues to hypothesize the Hawthorne Effect 3. That employees worked harder if they received added attention, if they thought managers cared about their welfare and that supervisors paid attention to them 4. They succeeded in drawing attention to the “social man” and how managers using good human relations could improve worker productivity • organizational studies shifted to how human factors and psychology affected organizations, a transformation propelled by the identification of the Hawthorne Effect. This Human Relations Movement focused on teams, motivation, and the actualization of the goals of individuals within organizations
Toward Organizational Behavior Early Behavioralist• Four people stand out as early advocates of the OB approach. These include Robert Owen, HugoMunsterberg, Mary Parker Follett, and Chester Barnard. 1. Robert Owen, a successful Scottish businessman, proposed a utopian workplace. 2. Hugo Munsterberg created the field of industrial psychology—the scientific study of individuals at work to maximize their productivity and adjustment. 3. Mary Parker Follett was a social philosopher who thought the manager’s job was to harmonize and coordinate group efforts. 4. Chester Barnard, president of New Jersey Bell Telephone Company, saw organizations as social systems that required human cooperation. a. He believed that managers’ major roles were to communicate and stimulate subordinates to high levels of effort. b. He also introduced the idea that managers have to examine the environment and then adjust the organization to maintain a state of equilibrium.
Toward Organizational Behavior Robert Owen •He reduced the use of child labor and used moral persuasion rather than corporal punishment in his factories. •He chided his fellow factory owners for treating their equipment better than they treated their workers. •Owen hated the modern factory system, so he decided to revolutionize it. •Owen’s strength was that he saw his employees as every bit as important to the success of his enterprise as the machines he owned. By examining working methods and conditions, and seeking to improve these, he is justifiably claimed as a father of personnel management.
Toward Organizational Behavior Hugo Munsterberg •He was one of the pioneers in applied psychology, extending his research and theories to Industrial / Organizational (I/O), legal, medical, clinical, educational and business settingsThe father of industrial psychology was Hugo Munsterberg. •In 1892, Munsterberg established his psychological laboratory at Harvard, which was to become the foundation stone in the industrial psychology movement. •Part one, the “best possible man,” was a study of the demand jobs made on people, and the importance of finding people whose mental capabilities made them well-matched for the work. •Part two, the “best possible work,” described the psychological conditions under which the greatest output might be obtained from every worker. •Part three, the “best possible effect,” examined the necessity of creating the influences on human needs that were desirable for the interests of business.
Toward Organizational Behavior Mary Parker Follet• Mary Parker Follett was an American social worker, management consultantand pioneer in the fields of organizational theory and organizational behavior.• However, she also began to think somewhat differently than the othertheorists of her day, discarding command-style hierarchical organizations whereemployees were treated like robots.Some Key Concepts that underpin Follett’s philosophy are: A skillful leader influences by stimulating others. In Mary Parker Follett leadership theory, genuine power is not “coercive” (“power over”) but “coactive” (“power with”). True leaders, according to Follett’s theory, “create group power, rather than expressing personal power.” Interrelatedness – ‘coactive’ as opposed to coercive.• She was a pioneer and often not taken seriously by management scholars ofher time.. Follett was one of those who integrate the idea of organizationalconflict into management theory, and is sometimes considered the “mother ofconflict resolution”.
Toward Organizational Behavior Chester Barnard•Chester Irving Barnard, was an American Business Executive, Public Administrator andthe author of pioneering work in management theory & organizational studies.•He wrote his first book in 1938, Function of the Executive worked as his landmark. Oneof his contributions was the concept of the informal organization. He felt that theseinformal organizations provided necessary and vital communication functions for theoverall organization and that they could help the organization accomplish its goals.•Barnard felt that it was particularly important for managers to develop a sense of commonpurpose where a willingness to cooperate is strongly encouraged. He is credited withdeveloping the acceptance theory of management, which emphasizes the willingness ofemployees to accept that managers have legitimate authority to act.Barnard felt that four factors affected the willingness of employees to accept authority: The employees must understand the communication. The employees accept the communication as being consistent with the organization’s purposes. The employees feel that their actions will be consistent with the needs and desires of the other employees. The employees feel that they are mentally and physically able to carry out the order.Barnard’s sympathy for and understanding of employee needs positioned him as a bridgeto the behavioral school of management, the next school of thought to emerge.
Toward Organizational Theory• Frederick Taylor (1917) developed scientific management theory (often called "Taylorism") at the beginning of this century.• His theory had four basic principles: – 1) find the one "best way" to perform each task, – 2) carefully match each worker to each task, – 3) closely supervise workers, and use reward and punishment as motivators, and – 4) the task of management is planning and control.
Toward Organizational Theory • Max Weber (1947) expanded on Taylors theories, and stressed the need to reduce diversity and ambiguity in organizations. The focus was on establishing clear lines of authority and control. Webers bureaucratic theory emphasized the need for a hierarchical structure of power.
Toward Organizational Theory • Mooney and Reiley (1931) formalized Administrative theory (i.e., principles of management). The emphasis was on establishing a universal set of management principles that could be applied to all organizations.
Toward Organizational Theory• The human relations movement evolved as a reaction to the tough, authoritarian structure of classical theory. It addressed many of the problems inherent in classical theory. The most serious objections to classical theory are that it created overconformity and rigidity, thus squelching creativity, individual growth, and motivation. Social era theory displayed genuine concern for human needs.
Toward Organizational Theory• Chester Barnard influenced human relations thinking and continues to influence our understanding of organizations and management. Barnard defined a formal organization as “a system of consciously coordinated activities or forces of two more more persons.”
Toward Organizational TheoryBarnard and Elements of Formal Organizations :• Willingness to cooperate, and this was to be facilitated by the offerings of objective and subjective incentives.• Purpose or objectives of the organization. Although individual and organizational motives were different, individuals could achieve their motives by working toward organizational purposes.• Communication
Toward Organizational TheorySimon’s Administrative Behavior• Simon clarified the processes by which goal specificity and formalization contribute to rational behavior in organizations. He criticized Fayols platitudes and Taylors "economic man" assumptions, proposing the "administrative man" who pursues his self-interests but often doesnt know what they are, is aware of only some of the possible decision alternatives, and is willing to settle for an adequate solution than continue looking for an optimal one.
Toward General Management Theory Henri Fayol • Was a mining engineer and director of mines who developed a general theory of Business administration. He was one of the most influential contributors to modern concepts of management. •He proposed that there were six primary functions of management and 14 principles of management Principles of Management 1. Division of work 2. Authority Henri Fayol 3. Discipline (1841–1925) 4. Unity of command 5. Unity of directionFunctions of management 6. Subordination of individual interests to the general interest1. Forecasting 7. Remuneration 8. Centralization2. Planning 9. Scalar chain3. Organizing 10. Order4. Commanding 11. Equity5. Coordinating 12. Stability of tenure of personnel 13. Initiative6. Monitoring 14. Esprit de corps Henry Fayol in papers on administration
Toward General Management Theory •It first appeared in a 1937 staff paper by Luther Gulick and Lyndall Urwick written for the Brownlow Committee. •POSDCORB is an acronym widely used in the field ofGullick dan management and public administration that reflects the classic view of administrative management. Urwick : •POSDCORB is the answer, "designed to call attention to thePOSDCORB various functional elements of the work of a chief executive because administration and management have lost all specific content Lyndall Fownes Urwick Luther Halsey Gulick (1891 -1983) (1892–1993)
Toward General Management TheoryGullick dan Urwick : POSDCORB•Gulick began with the premise that the major purpose of organization wascoordination. He formulated "principle of homogeneity" which meant grouping ofsimilar activities under one head •He noted four primary method for grouping activities; 1. Purpose or function performed 2. The process used 3. Person or things dealt with or served 4. The place where the service is rendered (2) (3) (4)
Shop Management Top Level of Management•Taylor developed his management •The top management is the ultimatetheories in his book Shop Management source of authority and it managespublished in 1903, making it arguably the goals and policies for the company. Itfirst scholarly work on management. devotes more time on planning and•Shop Management approached the role coordinating functions.of manager as a general role with specificfunctions with respect to collaborativework.•Taylor viewed the wage practices asrewarding for attendance, notperformance. •It is an art of getting things done through & with the people in formally organized groups In This era, the paradigm of management shifting from individual management to the organization management
Toward General Management Theory Organic Functions •Davis took an early shop management approach, encountered the Coubrough translation of Fayol, leading him to his top management contributions. •Organic functions of management: planning, organizing, and controlling He defined management as “the function of executive leadership.” Ralph C. Davis (1894-1986)
Toward General Management Theory Organization and methods•An organization is a social group which distributes tasks for a collective goal.•Organization & Methods originally came from the pioneers of scientific management(Taylor and Gilbreht). Their work influenced the early approaches and establishment of thefunction•it is a specialist function that has a primary objective of improving an organizationsefficiency and control.
Toward General Management TheoryOrganizations: Structure and Design•James D. Mooney and Alan C. Reiley, in OnwardIndustry, set out to develop principles oforganizational efficiency that would meet theindustrial objectives of "Profit through service“•Productive efficiency was not enough to ensurethe goal of industrial service.•For them, the efficient organization was based onformalism, "the efficient coordination of allrelationship" James D. Mooney (1884 -1957)