Taylorian Management develop a science for every job –standardize –proper working conditions –rules of motion (eliminate unnecessary movement) match ability to job requirements train workers provide incentives to encourage cooperation with "the science of work" support workers by planning their work
Fayol’s Universal Principles Division of work Authority parallels Responsibility Discipline (obedience) One boss per employee Coordinated Efforts via unifying direction Subordination of individual's interest Pay = Contribution Centralization of Command Scalar Chain of Command Order through things and people in proper place Kindness and Justice = Equity ==> Loyalty Stability & Tenure provides time to learn the job Management initiative to carry out plans Espirit de Corps = harmony leads to success
Fayol’s Four (Admin) Functions of Management Planning Organizing Directing/Leading Controlling
Weber’s Bureaucratic Organization Division of Labor Hierarchy of Authority Formal rules and procedures Impersonality Merit-based selection & promotion Managers are career employees
Exercise: Under the Classical Approach… Why management? What is the purpose of management? What would managers do? What functions do they perform and how would they execute them?
Causes of Behavioral Approach Unionization Hawthorne Studies Industrial Humanism
Mary Parker Follett Cooperation is Central Create Feelings of Collective Responsibility Business Problems are Inter- related Business should consider the Public Good
McGregor’s Theory X vs Theory Y dislike work lack ambition irresponsible resistant to change prefer to be led, than to lead willing to work capable of self- control willing to accept responsibility imaginative and creative capable of self- direction
Exercise: Under the Behavioral Approach… Why management? What is the purpose of management? What would managers do? What functions do they perform and how would they execute them?
Systems Approach Fayol’s Universal Theory & Taylor’s Approach are at base Reductionistic –The enterprise is not a collection of functions It’s a System: A dynamic whole –a collection of components standing in mutual relation. Interdependent actions or activities functioning as one toward a common objective/purpose
Chester I. Barnard & Systems All Organizations are Cooperative Systems Managing Organizations Require –Willingness to Serve –Sharing a Common Purpose –Communication –Paying Attention to Worker Motivation
Exercise: Under the Systems Approach… Why management? What is the purpose of management? What would managers do? What functions would they perform and how would they execute them?
With Systems Thinking Management can’t Focus on Just One Thing Management can’t Ignore Internal-External Connections Management must Seek to Develop and Understand Relationships
Exercise: How do these principles of the Classical Approach fit today? Weber's Bureaucracy: The top directs and controls the lower Taylor's principle that workers will be more productive & efficient as tasks become more specialized—a greater division of work The Classical belief in “economic man” Fayol's assertion that efficiency results as work is centrally planned
Ouchi’s Theory Z Intent to develop mutual loyalty Basic Principles –Lifetime employment –Job rotation & broad career experience –Shared information –Collective decision making –Quality emphasis
Quality Approaches Ouchi’s Theory Z Shewhart—Systems & SPC Deming—System, SPC, Knowledge, Leadership Ishikawa—Problem Solving & Prevention Juran—Quality Planning Feigenbaum—TQC: Company-wide quality Crosby– Zero Defects, cost of poor quality
Deming’s Role of Manager of People Explains the aim of the system & how their work supports it Facilitates cooperation==>optimization Creates for everybody interest & challenge & joy in work Is an unceasing learner & encourages others Is coach & counsel, not judge Understands the interaction between people & the system Utilizes ‘personhood’, knowledge, authority in that order Studies results to improve the system Creates trust & an environment for innovation Does not expect perfection Listens & learns w/o passing judgment Seeks to understand those being managed Understands the benefits of cooperation & the losses from competition
Management’s New Directions Organizational Learning –Organization is a “living & thinking system” –Focus on the “collective” aspects –Focus on the “mental” aspects Chaos Theory –Organization as a dynamically complex system—no real predictability –Seek to understand and learn from the multitude of behavior (outcome) patterns
Group Discussion What is the relationship among Quality Management, Management of Living Systems and Management of Chaos?
Exercise: Best Attributes Make a list of behavioral attributes that describe the best manager Share the list with your group & develop a common list Describe the typical manager according to or relative to the various management theories we've discussed –Classical –Behavioral –Quality (I.e. Deming)