management learning classical approaches

Theoretical FoundationsTheoretical Foundations

Classical Theories of Classical Theories of OrganizationsOrganizations

TheoryTheory

An explanation for how An explanation for how or why something occurs. or why something occurs. . .. .

Question:Question: What is the What is the most efficient and most efficient and effective means of effective means of running an organization? running an organization?

Functions of TheoryFunctions of Theory

DescribeDescribeExplainExplainPredictPredictControlControl

Classical approaches to Classical approaches to organizational management and organizational management and early organizational theories were early organizational theories were designed to designed to predictpredict and and controlcontrol behavior in organizations.behavior in organizations.

Classical Theories of Classical Theories of OrganizationsOrganizationsEmerged in early part of the Emerged in early part of the

twentieth century.twentieth century.Models were military and the Models were military and the

Catholic Church.Catholic Church.FeaturesFeatures

Strict CONTROL of workersStrict CONTROL of workersAbsolute CHAINS of COMMANDAbsolute CHAINS of COMMANDPREDICTABILITY of behaviorPREDICTABILITY of behaviorUNIDIRECTIONAL downward influenceUNIDIRECTIONAL downward influence

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.

Taylor’s Theory of Scientific ManagementTaylor’s Theory of Scientific Management

Frederick Taylor (1856-1915) “The Father of Scientific Management”Maximize worker capacity and profitsPROBLEM: Get employees to work at their maximum

capacityPRIMARY FOCUS: TASKS http://www.northstar.k12.ak.us/schools/ryn/projects/inventors/taylor/taylor.

html

Systematic SoldieringDeliberately working slowly as to avoid expanding more

effort than deemed necessaryReasons

Reduction in workforce due to decreased needPiecework system of remuneration - raise production

requirements without increasing pay


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.

Weber’s Theory of BureaucracyWeber’s Theory of Bureaucracy

Max Weber (1864-1920)Max Weber (1864-1920)German SociologistTheory 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 StructureWorker should respect the “right” of managers to

direct activities dictated by organizational rules and procedures

More DESCRIPTIVE http://www2.pfeiffer.edu/~lridener/DSS/Weber/WEBRPER.HTML


Bureaucracy

Bureaucratic OrganizationsDefined by Max Weber in late 19th century Focused on definitions of authority, responsibility

and processIntended to address the inefficiencies of

organizations at that time


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.

Fayol’s Administrative TheoryFayol’s Administrative Theory

Henri Fayol (1841-1925)Henri Fayol (1841-1925)General and Industrial ManagementPrinciples and Elements of Management - how

managers should accomplish their managerial duties

PRIMARY FOCUS: Management(Functions of Administration)

More Respect for Worker than TaylorWorkers are motivated by more than moneyEquity in worker treatment

More PRESCRIPTIVEhttp://www.lib.uwo.ca/business/fayol.html


Five Elements of Management -- Managerial Five Elements of Management -- Managerial ObjectivesObjectivesPlanningOrganizingCommandCoordinationControl

Keep machine functioning effectively and Keep machine functioning effectively and efficientlyefficiently

Replace quickly and efficiently any part or Replace quickly and efficiently any part or process that did not contribute to the process that did not contribute to the objectivesobjectives


Fourteen Principles of Management (Tools for Fourteen Principles of Management (Tools for Accomplishing Objectives)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”


Administrative Principals

Administrative PrincipalsAttempts to document the experiences of

successful managersAnalyzes organizations in their social

contextTwo key contributors

Henri Fayol Mary Parker Follett


Positioned communication as a necessary Positioned communication as a necessary ingredient to successful managementingredient to successful management

Application in the Modern WorkplaceApplication in the Modern WorkplaceFayol’s elements of management are recognized Fayol’s elements of management are recognized

as the main objectives of modern managersas the main objectives of modern managersPlanning - more participatoryPlanning - more participatoryOrganizing - human relationships and Organizing - human relationships and

communicationcommunicationIMPORTANT TABLE 2.1 Comparison of IMPORTANT TABLE 2.1 Comparison of

Managerial Skills (p. 32)Managerial Skills (p. 32)Especially applicable for large organizations Especially applicable for large organizations

(military)(military)



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.



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.

“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.”

BEHAVORIAL MANAGEMENTThe Hawthorne Studies

Definition of Hawthorne Studies Cont.

“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.”

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.

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.

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.

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.

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.”

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.

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”


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

Theory X versus Theory Y

Figure 2.3Source:


Argyris

Argyris’ Personality and OrganizationArgues that employees:

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

tasksruns counter to Scientific & Administrative

theories that argue for close supervision

The Evolution of Management Theory