1. MODULE 3 MANAGEMENT LEARNING “Good things grow from small foundations” What can we learn from classical management thinking? What is unique about the behavioral management approaches? What are the foundations of the modern management approaches?

2. MANAGEMENT LEARNING Classical Management MODULE GUIDE 3.1 Taylor’s scientific management sought efficiency in job performance. Weber’s bureaucratic organization is supposed to be efficient and fair. Administrative principles describe managerial duties and practices.

3. CLASSICAL MANAGEMENT Scientific Management Scientific Management Emphasizes careful selection and training of workers and supervisory support Described by Frederick Taylor’s “Principals of Management” in 1911.

4. CLASSICAL MANAGEMENT Scientific Management Taylor’s Four Principles of Scientific Management 1. Develop a “science” for each job—rules of motion, standard work tools, proper work conditions. 2. Hire workers with the right abilities for the job. 3. Train and motivate workers to do their jobs according to the science. 4. Support workers by planning and assisting their work by the job science.

5. CLASSICAL MANAGEMENT Bureaucracy Bureaucratic Organizations Defined by Max Weber in late 19 th century Focused on definitions of authority, responsibility and process Intended to address the inefficiencies of organizations at that time

6. CLASSICAL MANAGEMENT Bureaucracy Characteristics of an Ideal Bureaucracy Clear division of labor Jobs are well defined, and workers become highly skilled at performing them. Clear hierarchy of authority and responsibility are well defined, and each position reports to a higher-level one. Formal rules and procedures Written guidelines describe expected behavior and decisions in jobs; written files are kept for historical record. Impersonality Rules and procedures are impartially and uniformly applied; no one gets preferential treatment. Careers based on merit Workers are selected and promoted on ability and performance; managers are career employees of the organization.

7. CLASSICAL MANAGEMENT Administrative Principals Administrative Principals Attempts to document the experiences of successful managers Analyzes organizations in their social context Two key contributors Henri Fayol Mary Parker Follett

8. CLASSICAL MANAGEMENT Administrative Principals Henri Fayol – Administration Industrielle et Generale - 1916 Five Duties of Managers According to Henri Fayol 1. Foresight—complete a plan of action for the future. 2. Organization—provide and mobilize resources to implement plan. 3. Command—lead, select, and evaluate workers. 4. Coordination—fit diverse efforts together, ensure information is shared and problems solved. 5. Control—make sure things happen according to plan, take necessary corrective action.

9. CLASSICAL MANAGEMENT Administrative Principals Mary Parker Follett – 1920’s Foresighted approach Advocated managers and workers work in harmony and employees should own a share of the business Forerunner of “managerial ethics” and “social responsibility”

10. MANAGEMENT LEARNING Behavioral Management MODULE GUIDE 3.2 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.

11. BEHAVORIAL MANAGEMENT The Hawthorne Studies Hawthorne Studies - 1924 Studies tried to determine how economic incentives and physical environment affected productivity Involved 21,000 people over 6 years Concluded that human needs were an important factor in increasing productivity Resulted in “The Hawthorne Effect”

12. BEHAVIORAL MANAGEMENT Maslow’s “Hierarchy of Needs”

13. BEHAVORIAL MANAGEMENT McGregor McGregor’s The Human Side of Enterprize Separated managers into two beliefs / styles 1.Theory X Managers Believe employees generally dislike work, lack ambition, act irresponsibly, resist change and prefer to follow. Use classical directive “command and control” style 2.Theory Y Managers Believe employees are willing to work, capable of self control and self direction, responsible and creative Use behavioral “participative” style

14. BEHAVORIAL MANAGEMENT Argyris Argyris’ Personality and Organization Argues that employees: want to be treated as adults will perform better with less restrictive / defined tasks runs counter to Scientific & Administrative theories that argue for close supervision