2 Figure 2.1 Major branches in the classical approach to management. Management Fundamentals - Chapter 2
3 TAYLOR’S SCIENTIFIC MANAGEMENT Design jobs with efficient work methodsSelect workers with ability to do the jobsTrain workers to best perform jobsTrain supervisors to best support workersLink compensation to job performanceChapter 2Management Fundamentals - Schermerhorn & Wright
4 Scientific management (Gilbreths) Motion studyScience of reducing a job or task to its basic physical motions.Eliminating wasted motions improves performance.Management Fundamentals - Chapter 2
5 Administrative principles (Henri Fayol) Rules of management: Foresight — to complete a plan of action for the future.Organization — to provide and mobilize resources to implement the plan.Command — to lead, select, and evaluate workers to get the best work toward the plan.Coordination — to fit diverse efforts together and ensure information is shared and problems solved.Control — to make sure things happen according to plan and to take necessary corrective action.Management Fundamentals - Chapter 2
6 Administrative principles (Henri Fayol) Key principles of management: Scalar chain — there should be a clear and unbroken line of communication from the top to the bottom of the organization.Unity of command — each person should receive orders from only one boss.Unity of direction — one person should be in charge of all activities with the same performance objective.Management Fundamentals - Chapter 2
7 Administrative principles (Mary Parker Follett) Groups and human cooperation:Groups are mechanisms through which individuals can combine their talents for a greater good.Organizations are cooperating “communities” of managers and workers.Manager’s job is to help people in the organization cooperate and achieve an integration of interests.Management Fundamentals - Chapter 2
8 Administrative principles (Mary Parker Follett) Forward-looking management insights:Making every employee an owner creates a sense of collective responsibility (precursor of employee ownership, profit sharing, and gain-sharing)Management Fundamentals - Chapter 2
9 Management Fundamentals - Schermerhorn & Wright WEBER’S BUREAUCRACYClear division of laborStrict hierarchy of authorityStaffing by technical competencyFormal rules and proceduresImpersonal approach to decision makingChapter 2Management Fundamentals - Schermerhorn & Wright
10 What can be learned from classical management thinking? Characteristics of bureaucratic organizations:Clear division of laborClear hierarchy of authorityFormal rules and proceduresImpersonalityCareers based on meritPossible disadvantages of bureaucracy:Excessive paperwork or “red tape”Slowness in handling problemsRigidity in the face of shifting needsResistance to changeEmployee apathyManagement Fundamentals - Chapter 2
13 Management Fundamentals - Chapter 2 Figure 2.2 Foundations in the behavioral or human resource approaches to management.Management Fundamentals - Chapter 2
14 Human Resource Approach - Hawthorne Studies Factors that accounted for increased productivity:Group atmosphereParticipative supervisionLessons from the Hawthorne Studies:Social and human concerns are keys to productivity.Hawthorne effect — people who are singled out for special attention perform as expected.Hawthorne studiesInitial study examined how economic incentives and physical conditions affected worker output.No consistent relationship found.“Psychological factors” influenced results.Relay assembly test-room studiesManipulated physical work conditions to assess impact on output.Designed to minimize the “psychological factors” of previous experiment.Factors that accounted for increased productivity:Group atmosphereParticipative supervisionEmployee attitudes, interpersonal relations, and group processes.Some things satisfied some workers but not others.People restricted output to adhere to group norms.Management Fundamentals - Chapter 2
15 Maslow’s hierarchy of human needs. A need is a physiological or psychological deficiency a person feels compelled to satisfyManagement Fundamentals - Chapter 2
16 Human Resource Approach - Maslow’s theory of human needs Deficit principleA satisfied need is not a motivator of behavior.Progression principleA need becomes a motivator once the preceding lower-level need is satisfied.Both principles cease to operate at self-actualization level.Management Fundamentals - Chapter 2
17 McGREGOR’S THEORY X THEORY Y People dislike workPeople lack ambitionPeople resist changePeople act irresponsiblePeople prefer to be ledPeople like to workPeople are creativePeople can changePeople accept responsibilityPeople are capable of self-directionManagers should give more attention to the social self-actualizing needs of people at work.
19 Human Resource Approach – Implications of Theory X and Theory Y Managers create self-fulfilling prophecies.Theory X managers create situations where workers become dependent and reluctant.Theory Y managers create situations where workers respond with initiative and high performance.Central to notions of empowerment and self-management.Management Fundamentals - Chapter 2
20 Human Resource Approach – Argyris’s theory of adult personality Classical management principles and practices inhibit worker maturation and are inconsistent with the mature adult personality.Management practices should accommodate the mature personality by:Increasing task responsibilityIncreasing task varietyUsing participative decision making
22 Quantitative Approach – Management Science uses mathematical techniques to analyze and solve management problemsMathematical ForecastingLinear ProgrammingQueuing TheoryNetwork ModelsSimulationsProblem EncounteredSystematically AnalyzedMathematical Models AppliedOptimal Solution IdentifiedFOCUS: Rational decision making that has clear action implicationsChapter 2
23 Systems view and contingency thinking Collection of interrelated parts that function together to achieve a common purpose.SubsystemA smaller component of a larger system.Open systemsOrganizations that interact with their environments in the continual process of transforming resource inputs into outputs.
24 Organizations as complex networks of interacting subsystems. CONTINGENCY THINKINGFlexible Structures – What works for one organization or time period will not always work for another
25 Systems and the Organizational Value Chain Organization as atransformation systemManagement of thevalue chainResources &materialsflow inMaterialsreceived &organizedfor usePeople &technologycreateproductsFinishedproductsdistributedCustomersservedTotal Quality Management – Build quality into all aspects of operations from beginning to end.