MODULE 3

MANAGEMENT LEARNING

“Good things grow from small foundations”

•What can we learn from classical management thinking?

•What is unique about the behavioral management approaches?

•What are the foundations of the modern management approaches?

MANAGEMENT LEARNING

Classical 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.

CLASSICAL MANAGEMENT

Scientific Management

Scientific Management Emphasizes careful selection and training of workers

and supervisory support Described by Frederick Taylor’s “Principals of

Management” in 1911.

CLASSICAL MANAGEMENT

Scientific 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.

CLASSICAL MANAGEMENT

Bureaucracy

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

CLASSICAL MANAGEMENT

Bureaucracy

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.

CLASSICAL MANAGEMENT

Administrative Principals

Administrative PrincipalsAttempts to document the experiences of

successful managersAnalyzes organizations in their social

contextTwo key contributors

Henri Fayol Mary Parker Follett

CLASSICAL MANAGEMENT

Administrative 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.

CLASSICAL MANAGEMENT

Administrative Principals

Mary Parker Follett – 1920’sForesighted approachAdvocated managers and workers work in

harmony and employees should own a share of the business

Forerunner of “managerial ethics” and “social responsibility”

MANAGEMENT LEARNING

Behavioral 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.

BEHAVORIAL MANAGEMENT

The Hawthorne Studies

Hawthorne Studies - 1924Studies tried to determine how economic

incentives and physical environment affected productivity

Involved 21,000 people over 6 yearsConcluded that human needs were an

important factor in increasing productivityResulted in “The Hawthorne Effect”

BEHAVIORAL MANAGEMENT

Maslow’s “Hierarchy of Needs”

BEHAVORIAL MANAGEMENT

McGregor

McGregor’s The Human Side of Enterprize

Separated managers into two beliefs / styles1. 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

BEHAVORIAL MANAGEMENT

Argyris

Argyris’ Personality and OrganizationArgues that employees:

want to be treated as adultswill perform better with less restrictive / defined

tasks runs counter to Scientific & Administrative

theories that argue for close supervision