3Requirements 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).
5Francis & 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”
6Conclusions 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
7HENRY 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
9ADMINISTRATIVE “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
10Henry 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
11Mary 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
12CLASSICAL 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
14WEBERS IDEAL BUREAUCRACY DisadvantagesToo much Red Tapeslow to react to changeRigid in shifting customer needs & wantsNot spontaneous
15BEHAVIOURAL 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.
16Hawthorne 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
19McGregor : Theory X & YTheory X: Worker dislike job, lack ambition, resist change, are followers & irresponsibleTheory Y: Employee participation, involvement, empowerment, self- management.
20McGregor : 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
21McGregor : 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
22QUANTITATIVE 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
23USE OF REGRESSION ANALYSIS: POSSIBLE FACTORS:1) SALES EXPERTISE;2) EXISTING COMPETITION3) CLIMATE/ENVIRONMENT4) STORE LOCATION5) LOCALE (URBAN SUBBURBAN, RURAL)