Lecture 5-6 Schools of Management

8/6/2019 Lecture 5-6 Schools of Management

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Management and Strategy

GBE Spring Semester 2011

Schools of Management

Tine Svane Hansen


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Why study Organizational

Beh

avior?


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Agenda

Presentation of AA cases

Schools of management

The Classical Perspectives

Human relations (Behavioural Approches)

The Quality Movement

Contingency

E-Business Revolution

Human and Social Capital

CSR

Next lecture


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Management

Process of working with and through others

to achieve organizational objectives

efficiently and ethically


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Scientific Management

Attributed to Frederick Taylor

An early 1900s movement

Emphasis placed on the task

Scientific observations revealed one best way


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Scientific Management

Evaluation of Scientific Management

Scientific management has been regarded as too

preoccupied with productivity

Taylor believed in careful selection and training of

staff, and that they should be suitable for the work

Taylor had an idealistic view that workers,

managers and owners could work together inharmony and profit from it

The economic man


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Administrative Principles

Administrative principles by Henri Fayol

Focusing on administrative aspects of themanagers job

Viewed an organization as a composite of 6subsystems

Purchasing

Production

Sales Finance

Accounting

Administration


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Administrative Principles

To handle the subsystems, Fayol described the

Five Management Functions


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Bureaucracy

Bureaucracy Theory by Max Weber

A hierarchy of command to achieve efficiency

Based on a rational-legal authority structure established by a

persons rank in the hierarchy Specialisation and division of labour by organisational

function (engineering, production, sales)

Explicit system ofrules and policies standardising how things

are to be done, ensuring equitable treatment of everyone

Promotion based on competence through training and

epxerience, measured by objective standards

Impersonal treatment of people through consistent

application ofrules and decisions to prevent favouritism


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Bureaucracy

Basic assumptions

Work is not necessarily pleasant, but must be efficient

Minimum conflicts of interest

Managers should be unemotional and treat people asthrough they were interchangeable

Legitimate authority to managers from the legal system

People comply with authority because it is in teir bestinterest to do so

Critique

Impersonal treatment of people


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Human Relations

The Behavioural

Approaches Resulted in the shift in focus away from the

rational economic picture to a social behavioural

perspective

Elton Mayo and the Hawthorne Studies tried to

determine the relationship between physical

working conditions and worker productivity

Western Electric Hawthorne Works, Chicago

10 years of study involving 20.000 workers

Main conclusion: When experimental subjects (workers)

are being studied, they change their behaviour


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Evaluation of

the Hawthorne Studies

Stimulated many new ideas, but they did not havea solid scientific foundation

The studies showed many flaws in their method

and logic DID cause a shift from mechanistic management

principles to human relations orientation focusing on behavioural complexities of people

with different needs in a complex informal socialsystem

Friendly supervision was considered far more importantthan the physical environment


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Human Relations

The Behavioural

Approaches 1940s and 1950s

Abraham Maslow

Hierarcy ofNeeds

Motivation and Personality

Douglas McGregor

Both further pushed human behaviour as a criticalvariable in organisational effectivness

Shifting management attention from providing basic

needs towards securing that peoples growht needscould be achieved at work

Our daysEmpowerment and teambuilding conceptsbuild on these ideas


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Maslows Hierarchy

of Needs

Esteem needs

achievement, status, responsibility, reputation

Self-actualization

personal growth and fulfilment

Belongingness and Love needs

family, affection, relationships, work group, etc.

Safety needs

protection, security, order, law, limits, stability, etc.

Biological and Physiological needs

basic life needs - air, food, drink, shelter, warmth, sex, sleep, etc.

Behavior is driven by lowest, unmet need


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McGregors Theory X &

Theory Y

Theory X

Most people dislike

work and want to avoid

it People require close

direction

People want to avoid

responsibility and have

little ambition

Theory Y

Work is a natural activity

People can be self-

directed if they arecommitted to the

objective

Rewards help

commitment

Most employees accept

and seekresponsibility

Employees have

imagination, ingenuity

and creativity


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History ofMotivation

Research

Initiated at the time of industrial revolution

Issues: reduce negative effects of boring, repetitive,

routine jobs

The economic man: workers are rational

Motivated by salary

1960s: Job re-design

Issues: de-skilling, declining productivity, poor morale,

increasing number of women in the work force

Solution: Creation of more interesting, satisfying and

challenging jobs


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History ofMotivation

Research

1970s

Worker participation

Democracy in the work place

1980s Teamwork, culture, empowerment

Total Quality Management (TQM)

Business re-engineering

2000s

Learning organization

Intellectual capital

Knowledge management


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The Quality Movement

Total Quality Management (TQM)

An organizational culture dedicated to training,

continuous improvement, and customer satisfaction

Employee-driven, customer-focused

Basic Principles

Do it right the first time to eliminate costly rework

Listen to and learn from customers and employees

Make continuous improvement an everyday matter

Build teamwork, trust, and mutual respect


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Contingency Theories

Contingency theories identify the circumstances in

which a particular practice is more likely to obtain

desired results

Breaks with earlier concept of finding universial

principles what would work no matter the

circumstances

It all depends perspective


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Contingency Theories

Five key contingencies

Technology

Environment

Size

Diversification

Internationalization


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E-Business Revolution

E-Business running the entire business

via the internet

Implications fo

rorganizational behavio

rand

leaders?

More and faster communication with others

More potential for damage by unethical

leaders

Enables the existence of networks that go

across traditional organizational boundaries


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Human and Social Capital

Human Capital the

productive potential of an

individuals knowledge

and actions

Mitre, McLean, VA

Pays university

professors to conduct aMasters in Systems

Engineering program for

employees

Social Capital productive

potential resulting from

strongrelationships,

goodwill, trust, and

cooperative effort

Cisco Systems, San Jose, CA

Sponsors Nerd lunches to

discuss latest topics in

technology


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Evolution of 21st-Century

ManagersPrimary Role PastManagers FutureManagers

Cultural Orientation Monocultural,

monolingual

Multicultural, multi-

lingual

Source of influence Formal authority Technical knowledge

and interpersonal skill

View of people Potential problem Primary resource;

human capital

Decision-making style Limited input forindividual decisions

Broad-based input forjoint decisions

Ethical considerations Afterthought Forethought


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The Ethics Challenge

In the Post Enron, post-bubble world, theres ayearning for corporate values that reach higherthan the size of the CEOs paycheck or even the

latest stock price. Trust, integrity and fairness domatter, and they are crucial to the bottom line.

Source: Excerpt from J A Byrne, After Enron: The Ideal Corporation,

BusinessWeek, August 26, 2002, p. 68


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Corporate SocialResponsibility Pyramid

Source: Carroll, A. B. Managing Ethically with Global Stakeholders: A present and future challenge,

Academy of Management Executive, May 2004, p. 116.


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Next lecture

Schools of leadership

What is leadership?

How is it different from management?

Discuss the following statement

You get management, you take leadership

Is this true? Why/why not?


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7Habits


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7habits ofhighly

successful people

Stephen R. Covey


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Next lecture

Seven habits

Be ready to discuss the article The seven habits of

spectacularly unsuccessful executives

Documents

Lecture 5-6 Schools of Management