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Management learning classical approaches


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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   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 
  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 
  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