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Historical Foundations of Management
Classical Approaches
Assumption:
People are Rational
Scientific Management
Frederick TaylorFrank & Lillian Gilbreth
AdministrativePrinciples
Henry FayolMary Parker Follett
Bureaucratic Organization
Max Weber
Classical Approaches to Management Scientific Management - Frederick Taylor
Develop for every job: rules of motion, standardized work implements, proper working conditions
Carefully select workers with the right abilities for the job Carefully train workers to do the job and give proper
incentives Support workers by carefully planning their work
Motion Studies are a management tool that allows for a task to be broken down into smaller parts (motions)
UPS use motion standards to time their sorters in order to insure that vans are packed in the shortest time possible
Classical Approaches to ManagementAdministrative Principles
Henri Fayol believed management could be taught, and so he developed his managerial guide
foresight - complete plan of action for future organization - provide resources to implement plan command - lead, select, evaluate workers to get the
best work coordination - fit diverse efforts together control - make sure things happen according to plan
Classical Approaches to ManagementAdministrative Principles
Mary Parker Follett Groups are mechanisms through which individuals
can combine their talents for a greater good She viewed organizations as “communities” Manager’s job is to help others in organizations
cooperate and achieve an integration of interests
All workers should be made to feel like an owner of the company
Classical Approaches to ManagementBureaucratic Organization - Max Weber
Bureaucracy ideal, intentionally rational and very efficient form of
organization based on principles of logic, order and legitimate
authority
Exercise – “Why it Pays to be a Jerk”
Classical Approaches to ManagementBureaucratic Organization
Defining characteristics Clear division of labor
• Jobs are well defined and workers are highly skilled Clear hierarchy of authority Formal rules and procedures Impersonality
• No preferential treatment; all rules are uniformly applied Careers based on merit
Classical Approaches to Management
Bureaucracy Today the term is often associated with a
negative connotation associated with possible disadvantages of
bureaucracy are excessive paperwork or “red tape” Slowness in handling problems Rigid and often resistant to change Employee apathy
Behaviourial Approaches to Management
Human Resource Approaches to ManagementAssumption: People are Social and
Self-actualizing
Hawthorne Studies
Elton Mayo
Theory of Human Needs
Abraham Maslow
Theory X and Theory Y
Douglas McGregor
Personality & Organization
Chris Argyris
Classical Approaches to ManagementHawthorne Studies
initial study to examine the relationship of economic incentives and physical conditions on worker output
relationship was not supported “psychological factors” interfered with experiment
Relay Assembly Test-Room Studies designed to minimize the “psychological factors” of
previous experiment factors that accounted for increased productivity
• group atmosphere• participative supervision
Classical Approaches to Management
Hawthorne StudiesEmployee Attitudes, Interpersonal
Relations and Group ProcessesFindings in final study
• people will restrict output to avoid displeasure from the group
• Groups can have strong negative, as well as positive, influences on individual productivity
Classical Approaches to Management
Hawthorne StudiesLessons
Shift toward social and human concerns as keys to productivity
Hawthorne effect• people who are singled out for special attention
perform as expected
Classical Approaches to Management
Human Relations Movement managers who use
good human relations will achieve productivity
The insights of the human relations movement set the stage for what is now evolved as the field of organizational behaviour
Classical Approaches to ManagementHuman Relations Movement
Maslow’s Theory of Human Needs need is a physiological or psychological deficiency a
person feels the compulsion to satisfy deficit principle
• satisfied need is not a motivator of behavior progression principle
• a need becomes a motivator once the need below it is satisfied
Classical Approaches to Management Human Relations Movement
Maslow’s Theory of Human Needs Physiological
• Most basic of all human needs; necessities Safety
• Need for security, protection, and stability Social
• Need for love, affection, sense of belongingness Esteem
• In the eyes of others; respect; mastery; competence Self-actualization
• Self-fulfillment; to grow and be creative; use abilities to fullest extent
Classical Approaches to ManagementMcGregor’s Theory X and Theory Y
According to Theory X, managers believe workers
dislike work lack ambition are irresponsible are resistant to change prefer to be led
Classical Approaches to ManagementMcGregor’s Theory X and Theory Y
According to Theory Y, managers believe workers
are willing to work are capable of self control accept responsibility are imaginative and creative self-directed
Classical Approaches to Management McGregor’s Theory X and Theory Y
Managers create self-fulfilling prophesies That is, through their behaviour they create situations
where subordinates act in ways that confirm the original expectations
Theory X managers create dependent and reluctant workers
Theory Y managers create workers who perform as expected with initiative and high performance
central to notions of empowerment
Exercise – Richest CEO’s
Classical Approaches to ManagementArgyris’ Theory of Personality and
Organization management practices in traditional hierarchical
organizations are inconsistent with mature adult personalities
Managers who treat people positively and like responsible adults will achieve more productivity
Exercise – What Would the Classics Say?
Consider the following…Six months after being hired, Bob, a lab worker, is performing just well
enough to avoid being fired. He was carefully chosen and had the abilities required to do the job well. At first Bob was enthusiastic about his new job, but now he isn’t performing up to this potential. Fran, his supervisor, is concerned and wonders what can be done to improve this situation.
Assume the identity of one of the philosophers discussed in the unit so far. Fran has asked you for advice of the management situation describe. Answer the following questions as you think your assumed identity would respond.
Be prepared to share your results with the class.
Exercise – What Would the Classics Say?
1. What are your basic beliefs about good management and organizational practices?
2. What do you perceive may be wrong in this situation that would account for Bob’s low performance?
3. What could be done to improve Bob’s future job performance?
Modern Approaches to Management
Systems Thinking System
collection of interrelated parts that function together to achieve a common purpose
Subsystem smaller component of a larger system
Open systems organizations that interact with their environments in
the continual process of transforming resource inputs into outputs
Inputs
Suppliers
Organizational Network of Subsystems
Information &Technology
Systems
Accounting &FinancialSystems
Purchasing & InventorySystems
Marketing, sales,& Distribution
Systems
Operations &Service
ManagementSystems
Outputs
Customers
Modern Approaches to Management
Systems Thinking external environment
source of both resources and customer feedback impact on operations and outcomes
boundary spanners departments whose functions include working with
outsiders and staying informed about external environmental developments
Modern Approaches to Management
Contingency Thinking match managerial
responses with opportunities unique to
different situations no longer “one best
way” to manage
Summative Case Study – Hewlett Packard
Trends and Directions
Global Awareness pressure for quality and
performance excellence is created by a highly competitive global economy
Self Assessment
Complete the self assessment A 21st Century Manager?
This survey will provide a profile of your management foundations (PMF). Before calculating what your score is, ask someone to predict the outcome.