1. CLASSICAL MANAGEMENT SCIENTIFIC APPROACHES

3. Requirements for a “Profession”
Formal education requirement for entry
System of accreditation or licensing
Clearly defined clients
Profession-wide code of ethics

4. “Classical Approach” - Frederick Taylor
Four Guiding Principles:
Proper working implements, conditions & rules of motion: develop a science for every job
Select right worker with right abilities
Train worker & give incentive to co-operate: piece-rate pay
Give necessary support (E.G., REST PERIODS).

5. Francis & Lillian Gilbreith
Time & Motion Studies: reduce a job to its physical motions i.e. bricklayers
Soldiering: working below capability
“Cheaper by the Dozen”
Concept still being used today
The Original “Efficiency Experts”

6. Conclusions of Scientific Approach
A use results-based compensation
B design jobs to maximize a person’s performance potential
C carefully select people
D train people to perform to the best of their abilities
E provide workers with supervisory support

7. HENRY GANTT Believed in offering bonuses for work performance
Introduced the GANTT chart
The GANTT chart is a planning, monitoring, and control mechanism which is quite simple in concept but a powerful tool
Basically 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 plan
organization: provide resources needed to implement plan
command: get the best out of people
coordination: ensure subunits fit together
control: verify progress, take action

10. Henry Fayol - continued
Fayol’s Mgmt. Principles:
Scalar chain: clear chain of command
Unity of command: receive directions from one person
Unity of direction: one person in charge of all related activities

11. Mary Parker Follett Concerned with administration Proposed:
1) Employee-ownership
2) Proposed a systems theory point of view
3) Believed in corporate social responsibility
Profit Sharing
Gain Sharing
Bring in improvements
Greed/Ethics
Unions

12. CLASSICAL APPROACH; BUREAUCRATIC ORGANIZATION
Max Weber
Weber’s View of Bureaucracy:
clear division of labour
Lots of rules – Military based
Jobs filled with experts
Hierarchy of authority
careers based on merit

13. WEBERS IDEAL BUREAUCRACY
Advantages
Efficient
Fair
Consistent
Predictable
Rational

14. WEBERS IDEAL BUREAUCRACY
Disadvantages
Too much Red Tape
slow to react to change
Rigid in shifting customer needs & wants
Not spontaneous

15. BEHAVIOURAL MANAGEMENT APPROACH
Theory: Hawthorne
Turning point in Management studies focusing on social & human concerns vs technical
Started Human Relations movement where productivity improved with good people skills
Evolved into O.B.

16. Hawthorne Effect Lessons from Hawthorne Studies
A looked at people’s feelings
B if singled out for special attention people will perform as expected
C set stage for study of OB (organizational behaviour: study of individuals and groups in an organization

17. ABRAHAM MASLOW HIERARCHY OF NEEDS:
Five Levels
1) Self-Actualization
2) Esteem
3) Social
4) Safety
5) Physiological

18. ABRAHAM MASLOW HIERARCHY OF NEEDS:
Lessons from Maslow
Managers who satisfy human needs will achieve productivity
DEFICIT PRINCIPLE : Satisfied needs are not motivators
PROGRESSION PRINCIPLE: Higher order needs are activated only when lower order needs have been satisfied

19. McGregor : Theory X & Y
Theory X: Worker dislike job, lack ambition, resist change, are followers & irresponsible
Theory 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 expectation
B Theory X Mgrs: overly directive, narrow and control- oriented
C 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 work
Willing to accept responsibility
Capable of self-direction
Capable of self inner control
Capable of imagination

22. QUANTITATIVE MANAGEMENT
Foundation: Mathematical techniques can be used to improve managerial decisions
3 Characteristics:
1) focus on decision making where mgmt must take action
2) 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 COMPETITION
3) CLIMATE/ENVIRONMENT
4) STORE LOCATION
5) LOCALE (URBAN SUBBURBAN, RURAL)