3 Requirements for a “Profession” Formal education requirement for entrySystem of accreditation or licensingClearly defined clientsProfession-wide code of ethics
4 “Classical Approach” - Frederick Taylor Four Guiding Principles:Proper working implements, conditions & rules of motion: develop a science for every jobSelect right worker with right abilitiesTrain worker & give incentive to co-operate: piece-rate payGive necessary support (E.G., REST PERIODS).
5 Francis & Lillian Gilbreith Time & Motion Studies: reduce a job to its physical motions i.e. bricklayersSoldiering: working below capability“Cheaper by the Dozen”Concept still being used todayThe Original “Efficiency Experts”
6 Conclusions of Scientific Approach A use results-based compensationB design jobs to maximize a person’s performance potentialC carefully select peopleD train people to perform to the best of their abilitiesE provide workers with supervisory support
7 HENRY GANTT Believed in offering bonuses for work performance Introduced the GANTT chartThe GANTT chart is a planning, monitoring, and control mechanism which is quite simple in concept but a powerful toolBasically more complex projects are systematically broken down and plotted across time
9 ADMINISTRATIVE “Make every employee an Owner” Henry Fayol - Rules & Duties Of Mgmt.foresight: complete a planorganization: provide resources needed to implement plancommand: get the best out of peoplecoordination: ensure subunits fit togethercontrol: verify progress, take action
10 Henry Fayol - continued Fayol’s Mgmt. Principles:Scalar chain: clear chain of commandUnity of command: receive directions from one personUnity of direction: one person in charge of all related activities
11 Mary Parker Follett Concerned with administration Proposed: 1) Employee-ownership2) Proposed a systems theory point of view3) Believed in corporate social responsibilityProfit SharingGain SharingBring in improvementsGreed/EthicsUnions
12 CLASSICAL APPROACH; BUREAUCRATIC ORGANIZATION Max WeberWeber’s View of Bureaucracy:clear division of labourLots of rules – Military basedJobs filled with expertsHierarchy of authoritycareers based on merit
14 WEBERS IDEAL BUREAUCRACY DisadvantagesToo much Red Tapeslow to react to changeRigid in shifting customer needs & wantsNot spontaneous
15 BEHAVIOURAL MANAGEMENT APPROACH Theory: HawthorneTurning point in Management studies focusing on social & human concerns vs technicalStarted Human Relations movement where productivity improved with good people skillsEvolved into O.B.
16 Hawthorne Effect Lessons from Hawthorne Studies A looked at people’s feelingsB if singled out for special attention people will perform as expectedC set stage for study of OB (organizational behaviour: study of individuals and groups in an organization
17 ABRAHAM MASLOW HIERARCHY OF NEEDS: Five Levels1) Self-Actualization2) Esteem3) Social4) Safety5) Physiological
18 ABRAHAM MASLOW HIERARCHY OF NEEDS: Lessons from MaslowManagers who satisfy human needs will achieve productivityDEFICIT PRINCIPLE : Satisfied needs are not motivatorsPROGRESSION PRINCIPLE: Higher order needs are activated only when lower order needs have been satisfied
19 McGregor : Theory X & YTheory X: Worker dislike job, lack ambition, resist change, are followers & irresponsibleTheory Y: Employee participation, involvement, empowerment, self- management.
20 McGregor : Theory X & Y Lessons from Theory X and Theory Y A subordinates can act in ways that confirm a manager’s expectationB Theory X Mgrs: overly directive, narrow and control- orientedC Theory X Mgrs: give subordinates more participation, freedom and responsibility in their work
21 McGregor : Theory X & Y Lessons from Theory Y assume workers are: Willing to workWilling to accept responsibilityCapable of self-directionCapable of self inner controlCapable of imagination
22 QUANTITATIVE MANAGEMENT Foundation: Mathematical techniques can be used to improve managerial decisions3 Characteristics:1) focus on decision making where mgmt must take action2) economic decision criteria ( costs, revenues, ROI)3) involve mathematical models that follow sophisticated rules & formulas ; need computer models to run
23 USE OF REGRESSION ANALYSIS: POSSIBLE FACTORS:1) SALES EXPERTISE;2) EXISTING COMPETITION3) CLIMATE/ENVIRONMENT4) STORE LOCATION5) LOCALE (URBAN SUBBURBAN, RURAL)