2 Chapter 2 What are the lessons of the classical management approaches? What are the contributions of the behavioral management approaches?What are the foundations of modern management thinking.
3 Taylor’s scientific management sought efficiency in job performance. 2.1 Classical ManagementTaylor’s scientific management sought efficiency in job performance.Weber’s bureaucratic organization is supposed to be efficient and fair.Fayol’s administrative principles describe managerial duties and practices.Classical Management began in the late 1800’s. It has three subfields; Scientific Management, Bureaucratic Organizations and Administrative Principals.
4 Please insert the classical approaches graphic from page 32 here. Classical ManagementPlease insert the classical approaches graphic from page 32 here.
5 CLASSICAL MANAGEMENT Scientific Management Frederick TaylorWrote The Principles of Scientific Management in 1911.Believed in finding “maximum prosperity for the employer…and the employee” by identifying the most efficient way to perform tasks.Frederick Taylor was the first to apply scientific methods such as standard times to the management process.
6 CLASSICAL MANAGEMENT Scientific Management There is one “best” way to perform any task.Develop a science for each job. Example: Bricklayers were studiedHire workers with the right abilitiesTrain and motivate workersSupport workers by planning and assisting with job scienceAlthough Taylor’s approach was a major improvement, the scientific approach is often criticized for being to mechanistic.
7 CLASSICAL MANAGEMENT Bureaucracy Bureaucratic OrganizationsDefined by Max Weber in late 19th centuryFocused on definitions of authority, responsibility and processIntended to address the inefficiencies of organizations at that timeJob descriptions were uncommonPromotions were usually based on personal connectionsThe intent was good. Unfortunately, bureaucratic organizations have not lived up to expectations.
8 CLASSICAL MANAGEMENT Bureaucracy Characteristics of an Ideal BureaucracyClear division of laborJobs are well defined, and workers become highly skilled at performing them.Clear hierarchy of authorityAuthority and responsibility are well defined, and each position reports to a higher-level one.Formal rules and proceduresWritten guidelines describe expected behavior and decisions in jobs; written files are kept for historical record.ImpersonalityRules and procedures are impartially and uniformly applied; no one gets preferential treatment.Careers based on meritWorkers are selected and promoted on ability and performance; managers are career employees of the organizationAnd the guidelines were excellent. But many bureaucratic organizations are terribly inefficient. So, what happened? The answer – poor implementation.
9 CLASSICAL MANAGEMENT Administrative Principles Henri FayolPublished Administration Industrielle et Générale in 1916.Analyzed and documented the practices of successful managers.Fayol put much responsibility for success on the manager’s abilities.
10 CLASSICAL MANAGEMENT Administrative Principles Five Duties of Managers According to Henri FayolForesightcomplete a plan of action for the future.Organizationprovide and mobilize resources to implement plan.Commandlead, select, and evaluate workers.Coordinationfit diverse efforts together, ensure information is shared and problems solved.Controlmake sure things happen according to plan, take necessary corrective actionHenri Fayol’s five duties were very close to the modern management functions of planning, leading, organizing and controlling.
11 2.2 Behavioral Management Follett viewed organizations as communities of cooperative action.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.Behavioral management theory brought the human side of employees into management considerations regarding productivity.
12 BEHAVIORAL MANAGEMENT Behavioral/Human Resource Approaches Please insert figure 2.1 hereThe Behavioral or Human Resource approaches gave employees a lot more credit for having motivation that went beyond money. Follett, Mayo, Maslow, Argyris and McGregor researched the human side of the workplace.
13 BEHAVIORAL MANAGEMENT Organizations as Communities Mary Parker Follett – 1920’sBelieved that people liked to work in groups and organizations should be communitiesAdvocated managers and workers work in harmony and employees should own a share of the businessForerunner of “managerial ethics” and “social responsibility”Follett was a real visionary. She worked to make the workplace a place that employees felt part of a community that was accomplishing something important. Employee ownership, profit sharing, delegation, empowerment and social responsibility were main themes of her work.
14 BEHAVIORAL MANAGEMENT The Hawthorne Studies Lead by Elton Mayo of HarvardStudies tried to determine how economic incentives and physical environment affected productivityInvolved over 21,000 peopleConcluded that human needs were an important factor in increasing productivityAlthough the Hawthorne studies didn’t prove what they intended to prove and are criticized for their poor research design, the lessons are profound. Worker performance is influenced by the way they are treated by their managers.
15 BEHAVIORAL MANAGEMENT Hierarchy of Human Needs Abraham Maslow described human needs and how we try to satisfy themLowest level needs are necessary for survivalProgression principle - when one need is satisfied, we proceed on to a higher level needDeficit principle – satisfied needs don’t motivate behaviorMaslow’s research explains why we are motivated by different rewards.
16 Behavioral Management Hierarchy of Human Needs Please insert figure 2.2 hereThe highest level is Self-actualization. At that level, organizations motivate workers by allowing personal development such as offering tuition reimbursement to encourage employees to continue their education.
17 BEHAVIORAL MANAGEMENT Self-fulfilling Prophecies Douglas McGregorEmployees react to manager expectationsManagers are separated into two beliefs / stylesTheory X ManagersBelieve employees generally dislike work, lack ambition, act irresponsibly, resist change and prefer to follow.Use classical directive “command and control” styleTheory Y ManagersBelieve employees are willing to work, capable of self control and self direction, responsible and creativeUse behavioral “participative” styleScholars often equate Theory X with Classical management theory and Theory Y with Behavioral management theory.
18 BEHAVIORAL MANAGEMENT Personality and Organization Chris Argyris argues that employees:want to be treated as adultswill perform better with less restrictive / defined taskswill behave counter to Scientific & Administrative theories that argue for close supervisionMany of modern day management practices are based on Argyris’ principals.
19 2.3 Modern Management Approaches Managers use quantitative analysis and tools to solve complex problems.Organizations are open systems that interact with their environments.Contingency thinking believes there is no one best way to manage.
20 2.3 Modern Management Approaches continued…Quality management focuses attention on continuous improvement.Evidence-based management seeks hard facts about what really works.Modern management approaches recognize that people and organization are complex and constantly changing.
21 MODERN MANAGEMENT APPROACHES Quantitative Analysis Quantitative Analysis and Operations Research apply mathematical techniques to solve management problems such asForecasting sales or expensesEstablishing optimal levels of inventoryReducing labor costs without sacrificing customer serviceOrganizations accumulate huge amounts of data from sales, inventory, consumer behavior, supply chain management and many other sources. Quantitative analysis takes that data and determines how to improve efficiency, reduce costs and improve service.
22 MODERN MANAGEMENT APPROACHES Quantitative Analysis Operations ManagementProducing goods and services efficiently and effectively, includingImproving processes and operationsEffective workflow designsProject managementInventory managementQuality controlOperations management affects many of our daily activities from deciding how many restrooms to put in a new campus building to redesigning the college website.
23 MODERN MANAGEMENT APPROACHES Open Systems Please insert figure 2.3 hereOpen systems use resources from the external environment to produce goods and services that the external environment consumes as output. Much like a college uses faculty, information technology and tuition money to produce educated management students.
24 MODERN MANAGEMENT APPROACHES Subsystems Subsystems are a smaller part of a larger system.Please insert figure 2.4 hereOrganizations need many different tasks to complete their transformation of inputs into outputs. These tasks are often organized into subsystems.
25 MODERN MANAGEMENT APPROACHES Contingency Thinking Contingency thinking – The best way to manage depends on the circumstances.Environmental uncertaintyTechnologyOrganizational structureEmployee abilitiesThere is no “one best” way to manage. The tasks performed, employee talent and training, competitive environment, economy and many other factors require managers to adjust their style.
26 MODERN MANAGEMENT APPROACHES Continuous Improvement W. Edwards Deming – early advocate of quality controlTaught quality control techniques to Japanese industry in the 1950sRediscovered by U.S. industry in the early 1980sDeming’s quality techniques were important to rebuilding Japanese industry after World War II.
27 MODERN MANAGEMENT APPROACHES Continuous Improvement Tally defectsAnalyze and trace them to the sourceMake correctionsKeep a record of what happenedDeming’s principlesDeming’s principles seem simple but are very effective in reducing waste and defects.
28 MODERN MANAGEMENT APPROACHES Continuous Improvement Total quality managementOrganization-wide commitment to quality products or services.Continuous improvementAlways looking for new ways to improve.Total Quality Management or TQM integrates quality principles into everything the organization does.
29 MODERN MANAGEMENT APPROACHES Evidence-based management High-performance organizationsHigh performance operationsHigh quality work lifeEvidence-based managementUses data from extensive research to determine what practices really work wellChallenges conventional wisdomEvidence-based management uses scientific methods to research a question or problem. A hypothesis is established such as “employees are more productive when they establish their own work hours”. A research design is created to test the hypothesis and data is gathered to prove or disprove the hypothesis. Students may recognize the techniques from Organizational Behavior or Sociology classes.