Classical!

Taylor’s Theory of Scientific ManagementFrederick Taylor (1856-1915)

“The Father of Scientific Management” Maximize worker capacity and profits PROBLEM: Get employees to work at their maximum

capacity PRIMARY FOCUS: TASKS

Systematic Soldiering Deliberately working slowly as to avoid

expanding more effort than deemed necessary

Reasons Reduction in workforce due to

decreased need Piecework system of

remuneration - raise production requirements without increasing pay

Rule of thumb training methods - inefficient

Elements of Scientific ManagementElements of Scientific Management Scientific design of every aspect of every task

Time and Motion Studies

Careful selection and training of every task Proper remuneration for fast and high-quality

work Maximize output - increase pay

Equal division of work and responsibility between worker and manager

Underlying ThemesUnderlying Themes

Managers are intelligent; workers are and should be ignorant

Provide opportunities for workers to achieve greater financial rewards

Workers are motivated almost solely by wagesMaximum effort = Higher wagesManager is responsible for planning, training, and evaluating

Application in the Modern Workplace Assembly Line Plants as Prototypical Examples “Prisoners of Taylorism” System of Remuneration (quotas - commission) Re-Design - Reengineering Benchmarking Data are used to refine, improve, change, modify, and

eliminate organizational processes Lean Manufacturing

Fayol’s Administrative TheoryHenri Fayol (1841-1925)

General and Industrial Management Principles and Elements of Management - how managers

should accomplish their managerial duties PRIMARY FOCUS: Management

Functions of Administration

More Respect for Worker than Taylor Workers are motivated by more than

money Equity in worker treatment

Five Elements of Management -- Managerial Objectives Planning Organizing Command Coordination Control

Keep machine functioning effectively and efficiently Replace quickly and efficiently any part or process that did not

contribute to the objectives

Tools for 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”

Weber’s Theory of Bureaucracy

Max Weber (1864-1920)

German Sociologist Theory 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 Structure Worker should respect the “right” of managers to direct

activities dictated by organizational rules and procedures More DESCRIPTIVE

Bureaucracy allows for the optimal form of authority - “rational authority”

Three types of Legitimate Authority

Traditional Authority - past customs; personal loyalty Charismatic Authority - personal trust in character and

skills Rational Authority - rational application of rules or laws

Tenets of Bureaucracy

Rules

Specified sphere of competence Hierarchy Specialized Training Workers do not own technology No entitlement to “official position” by incumbent Everything written down Maintenance of “ideal type” - bureaucracy

Concerned with describing the ideal structure of an organization

Cornerstone: existence of written rules

The rational application of written rules ensures the promotion of legitimate authority and the effective and efficient functioning of the organization.

Application in the Modern Workplace

Large organizations guided by countless rules are bureaucracies

Linked with inefficient, slow-moving organizations Organizations have several characteristics of bureaucracies

Human relations theory by Elton MayoHuman relations theory is largely seen to have been born as a result of the Hawthorne experiments which Elton Mayo conducted at the Western Electrical Company.

The “Hawthorne Effect” was not foreseen by the study. Instead, the Western Electrical Company wished to show that a greater level of illumination in a working area improved productivity, hence encouraging employers to spend more money on electricity from the company.

They carried out a study of how productivity varied with illumination levels. However, the results of the study showed that any changes in light levels tended to increase productivity levels.

The core aspect of Human Relations Theory is that, when workers were being observed and included in the research, they felt more

important and valued by the company. As a result, their productivity levels went up significantly.

The concept that managers need to become involved with workers at a more individual level is at the core of human relations theory, and is what differentiates it from scientific management theory.

Two theories have emerged from this study:

1. Workers will not support management attempts to get them to be more productive, and hence management needs to take control of the working process itself, hence leading to scientific management approaches.

2. Productivity is largely determined by social and group norms, and by tapping into these norms and fulfilling their workers’ needs, managers can encourage employees to motivate themselves to work harder and be more productive.

Contingency theoryContingency theory is a class of behavioural theory that claims that there is no best way to organize a corporation, to lead a company, or to make

decisions. Instead, the optimal course of action s contingent (dependent) upon the internal and external situation.

Fred Fiedler's contingency model focused on individual leadership.William Richard Scott describes contingency theory in the following manner: "The best way to organize depends on the nature of the environment to which the organization must relate".

A major empirical test was furnished by Johannes M Pennings who examined the interaction between environmental uncertainty, organization structure and various aspects of performance.

Four important ideas of Contingency Theory are:1. There is no universal or one best way to manage 2. The design of an organization and its subsystems must 'fit' with the environment 3. Effective organizations not only have a proper 'fit' with the environment but also between its subsystems4. The needs of an organization are better satisfied when it is properly designed and the management style is appropriate both to the tasks undertaken and the nature of the work group.

Behavioral theoriesThe behavioral management theory is often called the human relations movement because it addresses the human dimension of work. Behavioral theorists believed that a better understanding of human behavior at work, such as motivation, conflict, expectations, and group dynamics, improved productivity.

Elton Mayo's contributions came as part of the Hawthorne studies, a series of experiments that rigorously applied classical management theory only to reveal its shortcomings. The Hawthorne experiments consisted of two studies conducted at the Hawthorne Works of the Western Electric Company in Chicago from 1924 to 1932.

The first study was conducted by a group of engineers seeking to determine the relationship of lighting levels to worker productivity. They discovered that worker productivity increased as the lighting levels decreased — that is, until the employees were unable to see what they were doing, after which performance naturally declined.

A few years later, a second group of experiments began. Harvard researchers Mayo and F. J. Roethlisberger supervised a group of five women in a bank wiring room. They gave the women special privileges, such as the right to leave their workstations without permission, take rest periods, enjoy free lunches, and have variations in pay levels and workdays. This experiment also resulted in significantly increased rates of productivity.

In this case, Mayo and Roethlisberger concluded that the increase in productivity resulted from the supervisory arrangement rather than the changes in lighting or other associated worker benefits. Because the experimenters became the primary supervisors of the employees, the intense interest they displayed for the workers was the basis for the increased motivation and resulting productivity. Essentially, the

experimenters became a part of the study and influenced its outcome. This is the origin of the term Hawthorne effect, which describes the special attention researchers give to a study's subjects and the impact that attention has on the study's findings.

Abraham Maslow

Maslow broke down the needs hierarchy into five specific areas:

Physiological needs. Maslow grouped all physical needs necessary for maintaining basic human well-being, such as food and drink, into this category. After the need is satisfied, however, it is no longer is a motivator.

Safety needs. These needs include the need for basic security, stability, protection, and freedom from fear. A normal state exists for an individual to have all these needs generally satisfied. Otherwise, they become primary motivators.

Belonging and love needs. After the physical and safety needs are satisfied and are no longer motivators, the need for belonging and love emerges as a primary motivator. The individual strives to establish meaningful relationships with significant others.

Esteem needs. An individual must develop self-confidence and wants to achieve status, reputation, fame, and glory.

Self-actualization needs. Assuming that all the previous needs in the hierarchy are satisfied, an individual feels a need to find himself.

Maslow's hierarchy of needs theory helped managers visualize employee motivation.

Douglas McGregor was heavily influenced by both the Hawthorne studies and Maslow. He believed that two basic kinds of managers exist.

1.Theory X manager, has a negative view of employees and assumes that they are lazy, untrustworthy, and incapable of assuming responsibility.

2.Theory Y manager assumes that employees are not only trustworthy and capable of assuming responsibility, but also have high levels of motivation.

An important aspect of McGregor's idea was his belief that managers who hold either set of assumptions can create self-fulfilling prophecies — that through their behavior, these managers create situations where subordinates act in ways that confirm the manager's original expectations.

Systems theoriesSystems theory is an interdisciplinary theory about the nature of complex systems in nature, society, and science, and is a framework by which one can investigate and/or describe any group of objects that work together to produce some result. This could be a single organism, any organization or society, or any electro-mechanical or informational artifact. As a technical and general academic area of study it predominantly refers to the science of systems that resulted from Bertalanffy's General System Theory

Systems theory thus serves as a bridge for interdisciplinary dialogue between autonomous areas of study as well as within the area of systems science itself.

General theory of systems should be an important regulative device in science, to guard against superficial analogies that are useless in science and harmful in their practical consequences.

 For example, Ilya Prigogine, of the Center for Complex Quantum Systems at the University of Texas, Austin, has studied emergent properties, suggesting that they offer analogues for living systems. A system from this frame of reference is composed of regularly interacting or interrelating groups of activities. For example, in noting the influence in organizational psychology as the field evolved from "an individually oriented industrial psychology to a systems and developmentally oriented organizational psychology," it was recognized that organizations are complex social systems; reducing the parts from the whole reduces the overall effectiveness of

organizations [3]. This is at difference to conventional models that center on individuals, structures, departments and units separate in part from the whole instead of recognizing the interdependence between groups of individuals, structures and processes that enable an organization to function. Laszlo [4] explains that the new systems view of organized complexity went "one step beyond the Newtonian view of organized simplicity" in reducing the parts from the whole, or in understanding the whole without relation to the parts. The relationship between organizations and their environments became recognized as the foremost source of complexity and interdependence. In most cases the whole has properties that cannot be known from analysis of the constituent elements in isolation. Béla H. Bánáthy, who argued - along with the founders of the systems society - that "the benefit of humankind" is the purpose of science, has made significant and far-reaching contributions to the area of systems theory. For the Primer Group at ISSS, Bánáthy defines a perspective that iterates this view:

The systems view is a world-view that is based on the discipline of

SYSTEM INQUIRY. Central to systems inquiry is the concept of

SYSTEM. In the most general sense, system means a configuration

of parts connected and joined together by a web of relationships. The

Primer group defines system as a family of relationships among the

members acting as a whole. Von Bertalanffy defined system as

"elements in standing relationship.