The History of Management Appendix Chapter One McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

F.W. TAYLOR and SCIENTIFIC MANAGEMENT Scientific Management -- Studying workers to determine the most efficient ways of doing things and then teaching those techniques. Three Key Elements to Increase Productivity Time Methods of Work Rules of Work

F.W. TAYLOR and SCIENTIFIC MANAGEMENT Study how a job is performed. Gather time & motion information. Check different methods. Codify the best method into rules. Choose workers whose skill matches the rules. Establish a fair level of performance and pay.

WEBER’S BUREACRATIC THEORY In a bureaucracy, a manager’s formal authority derives from the position he or she holds in the organization. In a bureaucracy, people should occupy positions because of their performance, not because of their social standing or personal contacts. Each position’s formal authority and task responsibilities should be clearly defined.

WEBER’S BUREACRATIC THEORY Authority can be exercised efficiently when positions are arranged in a clear organizational hierarchy, so employees know who to report to and who reports to them. Managers must create a well defined system of rules and standard operating procedures, so that they can effectively control behavior within an organization.

TIME-MOTION STUDIES Frank & Lillian Gilbreth Time-Motion Studies -- Studies of which tasks must be performed to complete a job and the time needed to do each task. Led to the development of the Principle of Motion Economy -- Every job can be broken down into a series of elementary motions; developed by Frank and Lillian Gilbreth.

MARY PARKER FOLLETT “Authority should go with knowledge… whether it is up the line or down.” Humanized Taylor’s work Advocated Self-Managed Teams Anticipated Empowerment

HAWTHORNE STUDIES: PURPOSE AND RESULTS Researchers studied worker efficiency under different levels of light. Productivity increased regardless of light condition. Researchers decided it was a human or psychological factor Hawthorne Effect- People act differently when they know they are being studied.

THEORY X AND THEORY Y Douglas McGregor proposed managers had two different sets of assumptions concerning workers. Their attitudes about motivating workers was tied to these assumptions. McGregor called them Theory X and Theory Y.

ASSUMPTIONS of THEORY X MANAGERS Workers dislike work and seek to avoid it. Workers must be forced or threatened with punishment to get them to perform. Workers prefer to be directed and avoid responsibility. Only effective motivators are fear and money.

ASSUMPTIONS of THEORY Y MANAGERS People like work, it’s a part of life. Workers seek goals they are committed to. Commitment to goals depends on perceived rewards. People can use creativity to solve problems. Intellectual capacity is only partially realized. People are motivated by a variety of rewards.

THEORY Z William Ouchi researched cultural differences between the U.S. (Type A) & Japan (Type J) Type J is committed to the organization and the group, while Type A is focused on the individual Theory Z is the hybrid approach of both types

MASLOW’S HIERARCHY of NEEDS * MASLOW’S HIERARCHY of NEEDS Motivation and Maslow’s Hierarchy of Needs * LG3 See Learning Goal 3: Identify the levels of Maslow’s hierarchy of needs and apply them to employee motivation. Maslow’s Hierarchy of Needs This slide reproduces the illustration of Maslow’s Hierarchy from the chapter. Most people in the class, especially those that have taken basic psychology, may be familiar with Maslow and the premise of human needs hierarchy. Use this opportunity to relate Maslow’s need theory to the work environment: Workers require competitive salaries, benefits and clean work environments. Employees have the need for security against termination in their jobs and the feeling of being safe against bodily harm while performing their job functions. On the job, workers have the need to feel a part of a successful group, driven by achievement. Employees seek opportunities for advancement, empowerment, recognition, and responsibility through additional work-related performance. Companies must attempt to satisfy these needs through opportunities within the organization. 10-13

MASLOW’S THEORY of MOTIVATION * MASLOW’S THEORY of MOTIVATION Motivation and Maslow’s Hierarchy of Needs * LG3 Hierarchy of Needs – A theory of motivation based on unmet human needs from basic physiological needs to safety, social and esteem needs to self-actualization needs. Needs that have already been met do not motivate. If a need is filled, another higher-level need emerges. See Learning Goal 3: Identify the levels of Maslow’s hierarchy of needs and apply them to employee motivation. 10-14

HERZBERG’S MOTIVATING FACTORS * HERZBERG’S MOTIVATING FACTORS Herzberg’s Motivating Factors * LG4 Herzberg’s research centered on two questions: What factors controlled by managers are most effective in increasing worker motivation? How do workers rank job-related factors in order of importance related to motivation? See Learning Goal 4: Distinguish between the motivators and hygiene factors identified by Herzberg. 10-15

HERZBERG’S MOTIVATORS and HYGIENE FACTORS * HERZBERG’S MOTIVATORS and HYGIENE FACTORS Herzberg’s Motivating Factors * LG4 Motivators Hygiene Factors Work itself Company policy and administration Achievement Supervision Recognition Working conditions Responsibility Interpersonal relations Growth and advancement Salary, status and job security See Learning Goal 4: Distinguish between the motivators and hygiene factors identified by Herzberg. Herzberg’s Theory This slide illustrates another “need” theory regarding workers and their job needs. This theory is based on what an organization can do to fulfill the individual needs of workers while motivating them to excel. The key component of Herzberg’s work was the opposite of “satisfaction” is “no satisfaction.” If the basic hygiene factors were not in place, a worker is not satisfied. To have a satisfied, motivated workforce, a company needs to provide the following: Achievement Recognition Work Itself Responsibility Advancement Growth 10-16

* JOB CONTENT Herzberg’s Motivating Factors * LG4 Herzberg found job content factors were most important to workers – workers like to feel they contribute to the company. Motivators -- Job factors that cause employees to be productive and that give them satisfaction. See Learning Goal 4: Distinguish between the motivators and hygiene factors identified by Herzberg. Herzberg’s article in the Harvard Business Review, “One More Time: How Do You Motivate Employees?” is a classic and explores his idea of job content in depth. 10-17

* JOB ENVIRONMENT Herzberg’s Motivating Factors * LG4 Job environment factors maintained satisfaction but did not motivate employees. Hygiene Factors -- Job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased. See Learning Goal 4: Distinguish between the motivators and hygiene factors identified by Herzberg. 10-18

* * GOAL-SETTING THEORY Goal-Setting Theory and Management by Objectives * LG6 Goal-Setting Theory -- Setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated. See Learning Goal 6: Explain the key principles of goal-setting, expectancy, reinforcement, and equity theories. 10-19

APPLYING GOAL-SETTING THEORY * APPLYING GOAL-SETTING THEORY Goal-Setting Theory and Management by Objectives * LG6 Management by Objectives (MBO) -- Involves a cycle of discussion, review and evaluation of objectives among top and middle-level managers, supervisors and employees. Managers formulate goals in cooperation with everyone. Need to monitor results and reward achievement. See Learning Goal 6: Explain the key principles of goal-setting, expectancy, reinforcement, and equity theories. Peter Drucker developed the idea of MBO in his 1954 book The Practice of Management. 10-20