IntroductionBad for a worker to be supervised by two or more managers because the worker is confused and doesn’t work efficiently. In matrix organization it is hard to put that in practice.

Planning, organizing, staffing, controlling = functions of a manager.

If our lecture had taken place in 1939…

Everything is practical and there is no theory, today is the contrary. Is it good? Not sure.

A secretary“an officer of a business concern who may keep records of directors' and stockholders' meetings and of stock ownership and transfer and help supervise the company's interests.”

Source: https://www.merriam-webster.com/dictionary/secretary

What is management? Word = manus (hand) + agere (to act). Applied to handling or controlling a horse. Extended to controlling all sort of thing and, of course, affairs. We often associate management with the type of work performed in firms (what managers

do) Management was originally used in business, while administration was used for public

organizations (the distinction is less marked today) As a discipline, management is new (mid 19th century), but as an ability to organize

purposefully, management is as old as humankind.

“The process of achieving desired results through efficient utilization of human and material resources” (Bedeian & Glueck, 1983)

“The process by which those who have the formal responsibility over all, or parts, of the organization try to direct or, at least, to guide it in its activities.” (Mintzberg, 1989)

“the accumulating body of thought and practice that makes organizations work.” … the discipline that “turn complexity and specialization into performance.” (Magretta, 2002)

“Management is a practice that has to blend a good deal of craft (experience) with a certain amount of art (insight) and some science (analysis).” (Mintzberg, 2004). = you have to blend them all.

Efficiency & Effectiveness: definitionsEfficacity (effectiveness)

means doing the right things, goal attainment. Being able to achieve a goal.

Efficiency

refers to the relationship between inputs and outputs; seeks to minimize resource costs.

You should find the right amount of efficiency in order to reach effectiveness.

Why do we need management?We need organizations (like hospitals: we really on it for our health, we rely on organizations for food, ect.) and we need to understand them to make them work.

To understand how all types of organization exist and function: private (firms or even private clubs), public (like a university, or a school), NGOs, not-for-profit organizations, and sizes (from a small business to a medium-sized one and to a large MNE).

We rely on organizations because of the human condition: the limits of reason. As individuals we might be powerful and intelligent, but we cannot do everything at the same time (doctor, builder, farmer, ect.) we are limited. We can benefit from our joint capacities.

What is a manager?The way we refer to managers changed over the course of time:

An executive: popularized by Peter Drucker. In the American context, someone who supervises the administration of a company’s affairs. It focuses on performance. Wanted to get rid of the word ‘manager’ so he replaced it.

Chief officer: American context, someone who exerts responsibility and administers affairs of a certain nature or in a certain field (e.g. marketing, security, human resources, etc.) Also, a focus on performance, they wanted to change the focus.

Leader: another change for the word ‘manager’ the 1980’s Jack Welsh mantra. Focus on performance too. He said that we did not need managers but leaders that could motivate people better so that they are more effective.

Why?

The way we refer to managers changed over the course of time:

“Manager” was (is) considered outdated: the old-fashioned boss. Referred to the duties of old bosses that were dictatorial.

Being a manager doesn’t require a license. It is one of the few jobs where you don’t need one.

Practice precedes formal training, even though today this is challenged by the development of academic training – “Managers, not MBAs” (Mintzberg, 2004).

Distinction among managers & operatives in organizations.

Manager:

Individuals in an organization who direct the activities of others. Also called “white-collar”.

Operatives:

People who work directly on a job or task and have no responsibility for overseeing the work of others.

Also called “blue-collar”.

Today the word “operative” has been replaced by “non managerial employees”.

Levels of management

Top managers:

at/or near the top of an organization they are responsible for making decisions about the direction of the organization and

establishing policies and philosophies that affect all organizational members. examples: president, vice president (VP), chancellor, managing director, chief operating

officer (COO), chief executive officer (CEO), chairperson of the board, etc.

Middle managers:

They are found between the lowest and top levels of the organization. they often manage other managers and maybe some nonmanagerial employees. they are typically responsible for translating the goals set by top managers into specific

details.

examples: department or agency head, project leader, unit chief, district manager, division manager, store manager, etc.

First-line managers:

they direct the day-to-day activities of nonmanagerial employees. examples: supervisors, team leaders, coaches, shift managers, or unit coordinators.

What do managers do?

Managers perform various tasks in the following areas which are management functions:

Planning use of enterprise resources:

Includes defining goals, establishing strategy, and developing plans to coordinate activities.

Organizing enterprise resources:

Includes determining what tasks to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.

Staffing and managing enterprise human resources; leading and exerting interpersonal influence

Includes motivating employees, directing the activities of others, selecting the most effective communication channel, and resolving conflicts.

Controlling enterprise resources

The process of monitoring performance, comparing it with goals, and correcting any significant deviations.

Management activities by organizational levelIf we look at the way management activities are organized by organizational level, we can see that:

First level Managers spend most of their time Leading. Middle Managers tend to lead but also organize. Top managers have more various activities, they organize but also plan and lead.

Managers’ rolesManagers plays various roles (cf. Mintzberg):

Interpersonal Figurehead Leader Liaison

Informational Monitor Disseminator Spokesperson

Decisional Entrepreneur Disturbance hander Resource allocator Negotiator

Managers’ roles in small & large firms are not the same:

Managers’ skillsManagers need to possess various general skills like:

Conceptual skills

A manager’s mental ability to coordinate all of the organization’s interests and activities.

Interpersonal skills

A manager’s ability to work with, understand, mentor, and motivate others, both individually and in groups

Technical skills

A manager’s ability to use the tools, procedures, and techniques of a specialized field.

Political skills

A manager’s ability to build a power base and establish the right connections.

Classical management perspectives Management, as human activity, is probably as old as mankind. We can identify information on management practices in basically all world's cultures. Management, as we understand and study it today, started to be formalized at the end of

the 19th century.

2 perspectives form what is called “classical management”:

Scientific management (SM) Administrative management (AM)

Both SM & AM appear & develop at the end of the 19th century and beginning of the 20th century

Classical management is not exclusively American: German and French authors are important too.

Context of development: Industrial revolution / industrialization of 19th century (machine power began to substitute

for human power) Urbanization (development of cities) Craftsman --> Company Man Increased (also internationalized) competition. Work in a factory: Employers (often the owners) determined what was produced. Foreman supervised/structured production process. (early managers) Craft workers chose motions and tools to complete project.

Towne published in 1886 “The engineer as an economist” (see paper on Eprel) = funding moment of management, first to say that it was needed. He opposed engineering that is a well-defined science to shop management that is unorganized, with almost no literature = need to organize those huge organizations.

“Engineering […] has become a well-defined science […].

[…] shop management is of equal importance with that of engineering, as affecting the successful conduct of most, if not all, of our great industrial establishments, and that the management of works has become a matter of such great and far-reaching importance as perhaps to justify its classification also as one of the modern arts.

The one (engineering) is a well-defined science, with a distinct literature, with numerous journals and with many associations for the interchange of experience; the other (management) is unorganized, is almost without literature, has no organ or medium for the interchange of experience, and is without association or organization of any kind.”

We then get a scientific management.

Scientific management definition:“a system devised by industrial engineers for the purpose of subserving the common interests of employers, workmen and society at large, through the elimination of avoidable wastes, the general improvement of the processes and methods of production, and the just and scientific distribution of the product”. (it is a system created for workmen and the society not for owners, the aim was to eliminate waste (no quality control) as there is no unified tools or way of doing. No training of people, no processes or methods of production).

- Robert Hoxie, Scientific management and labor, 1915

Scientific management:

Specific response to problems facing industry. need for efficiency. “the problem of labor”: lack of knowledge of how to perform tasks, soldiering (soldiers had

nothing to do when there was no war, so they did nothing all day long. Many workers used this attitude of doing nothing = not productive), frequent strikes (had to work a lot and had miserable salaries).

“The problem of capital”: “Managers had never studied management. Employers had never studied employership.” (Herbert Casson, 1931) (just wanted to gain money, without looking at the wellbeing of their workmen).

The belief that science could solve every possible problem (many scientific advances allow for this view: electricity, railways, the telephone, the telegraph, advances in medicine, etc.)

Time motion studies (of tasks) (https://youtu.be/lDg9REgkCQk) (people made unnecessary movements that sometimes hurt themselves, unnecessary activities, showing them videos could make them understand how to work better).

Frederick Winslow Taylor Extensive experience + degree in mechanical engineering Considered one of the most influential founders of modern management. Publishes “Shop management” 1903 (republished in 1911) https://archive.org/details/shopmanagement01tayl/mode/2up Design a more just system to reward workers and their work (see on Eprel) Develops the differential rate system of piecework: higher price per piece when work is done

fast and with good quality (lower price per piece when work is slow or with imperfections) lower price for the workers that had imperfections, waste or slow, and better wage for workers that worked efficiently. At that time, they were paid per piece of work.

Later Gantt will name it the task and bonus’ system. Problem: what is fast? What is good quality? Need for benchmarks. How do we define

quality or fastness? We have no reference to class workers. Atomistic approach: analyze the smallest task to understand how quickly it took to be

completed in an optimal way. (decided to divide the tasks and analyze them, he realized that there were barriers that were not the workers but the tools for exemple)

Barriers in the way of optimal speed needed to be removed (redesign equipment, tasks, etc.) Also concerns for the health of workers: “no workman is to be called upon to work at a pace

which would be injurious to his health.”

Also wrote about the duties of managers.

The duties of managers:1. “First. They develop a science for each element of a man’s work, which replaces the old

rule-of-thumb method. (scientific of management = need for science, not just experience)2. Second. They scientifically select and then train, teach, and develop the workman, whereas

in the past he chose his own work and then trained himself as best he could. (recognize the duty of companies to select, train, teach their employees and develop themselves).

3. Third. They heartily cooperate with the men so as to insure all of the work is done in accordance with the principle of the science which has been developed. (cooperation between owners and workmen)

4. Fourth. There is an almost equal division of the work and the responsibility between the management and the workmen. The management take over all work for which they are better fitted than the workmen, while in the past almost all of the work and the greater part of the responsibility were thrown upon the men.” (people are “made” or better at certain work)

Critiques/Problems of scientific management Managers frequently implemented only the increased output side of Taylor’s plan. Workers did not share in the increased output. Specialized jobs became very boring, dull. Workers ended up distrusting the Scientific Management method. Workers could purposely “under-perform.” Management responded with increased use of machines and conveyors belts. Danièle Linhart (French sociologist): “La comédie humaine du travail. De la desumanisation

taylorienne à la sur-humanisation managériale” (2017) (my translation: “The human comedy of work. From Taylorian dehumanization to managerial over-humanization”).

Taylor contributed to transfer knowledge from the artisan to the firm (knowledge is power)

The Gilbreths Frank Bunker Gilbreth (1868 – 1924): industrial engineer & consultant Lillian Moller Gilbreth (1878-1972): industrial engineer & psychologist

Pioneers in motion studies:

Break up and analyze every individual action necessary to perform a particular task into each of its component actions.

Find better ways to perform each component action. Reorganize each of the component actions so that the action as a whole could be performed

more efficiently-at less cost in time and effort.

Henri Fayol Engineer, executive in a mining company (Société de Commentry, Fourchambault et

Decazeville) Published “General and industrial administration” in 1916 (in French, translated and

published in English in 1949)

6 functions (groups of activities) in an industrial firm (business functions)

o Technical: engineering & production (manufacturing)

o Commercial: procurement & sales o Financial: search & use capital to sustain activity (financial capital management) o Safety & Security: protecting people & assets.o Accounting: understand economic/productivity aspects o Administrative: management; 5 specific tasks

5 tasks (functions, processes) of management

14 principles of management1. Division of Work. Specialization increases output by making employees more efficient.

(formalization specialization (right person for the right work))2. Authority. Managers must be able to give orders, and authority gives them this right.3. Discipline. Employees must obey and respect the rules that govern the organization.4. Unity of command. Every employee should receive orders from only one superior.5. Unity of direction. The organization should have a single plan of action to guide managers

and workers.6. Subordination of individual interests to the general interest. The interests of any one

employee or group of employees should not take precedence over the interests of the organization as a whole.

7. Remuneration. Workers must be paid a fair wage for their services.8. Centralization. This term refers to the degree to which subordinates are involved in decision

making.9. Scalar chain. The line of authority from top management to the lowest ranks is the scalar

chain.10. Order. People and materials should be in the right place at the right time.11. Equity. Managers should be kind and fair to their subordinates.12. Stability of tenure of personnel. Management should provide orderly personnel planning

and ensure that replacements are available to fill vacancies.13. Initiative. Employees who are allowed to originate and carry out plans will exert high levels

of effort.

14. Esprit de corps. Promoting team spirit will build harmony and unity within the organization.

Classical management perspectivesHuman relations School: Context

- Emerged in the 1916-1920s as a reaction to the dominant view (Taylorism) in which productivity depended on:

o Mechanization (introduction of machines/equipment in industrial processes)o Specialization of tasks (which exacerbated depersonalization of workers)

- War efforts (WW1) required industry attention to be directed to an increase in productivity and neglected the human aspect of productive activities.

- The result: “poor methods of managing people were leading to inefficiencies as great as those found in poorly designed factories” (Ernest Nicholls, president or Dartmouth College, 1916)

- Staff turnover alone became a major problem for factories and involved a big cost.- William Redfield, US Secretary of Commerce (1916):

o “We are not employing ‘hands’; we are employing brains and hearts and dispositions, and all sorts of elements that make for personality - we are employing them all.”

o In 1919, Meyer Bloomfield published the book “Management and Men: A Record of New Steps in Industrial Relations” in which he argued that the management of people (“personnel management”) needed more professionalization.

- Psychology (young sciences then) started to be applied to the understanding of people’s behavior in the workplace.

- 1920: the publication of the 1st book on HRM by Ordway Tead and Henry C. Metcalf: “Personnel Administration: Its Principles and Practice”.

- Ordway Tead and Henry C. Metcalf give the 1st definition of ‘personnel administration’: “the direction and coordination of the human relations of any organization with a view to getting the maximum necessary production with a minimum of effort and friction, and with proper regard for the genuine wellbeing of the workers”.

Mary Parker Follet Studies economics, law & political science She had experience with volunteering for social causes (European immigrants) Publishes “Creative experience” in 1924 in opposition with scientific management. human beings are naturally inclined to live and work in groups and to share experience. Applies notions from psychology to sustain her view. ‘circular response’: people learn (get knowledge) through ‘feedback loops’ (interaction) and

not exclusively observation (scientific management). ‘integrative behavior’: groups that share a common goal tend to adjust their behavior

naturally to conform to the group so that the goal can be met more easily.

‘what things do workers respond to?’

(1) the employer, including wages and working conditions.

(2) general conditions such as cost of living

(3) their own desires and aspirations.

(4) ‘the relation between his responding and the above’

- In “The process of control” (1937, posthumous) she expressed views against Fayol and his principle of unity of control.

- “The ramifications of modern industry are too widespread, its organization too complex, its problems too intricate for it to be possible for industry to be managed by commands from the top alone. This being so, we find that when central control is spoken of, that does not mean a point of radiation, but the gathering of many controls existing through-out the enterprise.”

- Control = coordination. Leaders coordinate the activities of other, lower-level leaders.

Elton Mayo - psychologist interested by the study of work. A pioneer in industrial psychology- professor at Wharton and Harvard

The Hawthorne Experiment- Cicero, Illinois (Western part of Chicago)- The facility produced mainly telephone equipment for the Bell System.- A series of studies from 1924 to 1933 in order to understand phenomena like productivity of

workers.

The Hawthorne Studies- Western Electric’s management start experiments to learn whether changing workplace

conditions or layout would lead to higher productivity.- Example, the company experimented with changing the lighting in one workshop expecting

to find that increased levels of lighting would result in higher productivity.- Results appeared to show the opposite: reducing lighting levels increased productivity.- But when interviewed, workers said that they like the brighter light and found it more

stimulating. Weird?- That is why WE turned to Mayo in order to understand why this was happening.

“Hawthorne Effect”:

- “The girls soon came to feel that the observer was there as a sympathetic listener and not as a gang-boss with fixed ideas about production. They talked freely every day, they lost their original shyness, and they confided to him most enlightening stories of the effect on them and others of ‘hollyragging’ methods of supervision. That their liking for their work increased is shown not merely by these confidences but also by their record of absences which is only a fraction of the department average or of their own former habit.”

- Social and psychological factors had a very powerful impact on production. - Employees are social beings, not just economically motivated.- The social aspect of humans must be addressed by management.- Fulfillment of needs and participation will motivate employees.

Human Relations Approach: Conclusion