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 Classical School  Behavioral School  Management Science School ©

 “One best way to manage”  It is management’s job to ascertain the best way to perform a job, then teach that method to workers. The same philosophy applies to running the organization (the manager’s job) ©

 The Scientific Method applied to work ©

 Observation  Measurement  Logic  Analysis ©

 The “Father of Scientific Management” ©

 Work methods should be based on scientific observation – not “rules of thumb.”  Scientifically select, train, and develop each worker  Cooperate with workers to ensure that scientifically developed methods are being followed.  Managers analyze and plan work; workers actually perform the tasks. ©

 Frank & Lillian Gilbreth  Motion & Time Studies  Therbligs ©

 Brick-laying ©

 Time and motion studies  Breaking up each job action into its components (Therblig).  Finding better ways to perform the action.  Reorganizing each job action to be more efficient. ©

 Application of the Scientific Method to work  Selection of the most capable workers  Provide resources to workers ©

 Train the workers  Provide fair pay incentives to workers (share productivity gains) ©

1. Formal authority comes from one’s organizational position (Bureaucracy = rational power) 2. Positions should be held based on merit, not social standing or personal contacts. (Break with traditional power) Each position’s responsibilities and relationship to other positions should be clearly specified. (Roles) Authority in a bureaucracy is hierarchical power. Formalization = well-defined system of rules operating procedures, and norms = control via “rational” power. ©

While in the US “Management” focuses on individual at work In Europe early theory (that in 1930’s will become part of American “management”) focuses on the “organization” – Administrative Management Theory. Max Weber (German) – focuses on bureaucracy as a formal organization to gain efficiency. Henri Fayol (French) – focuses on 14 principles of Administration as “One Right Way” ©

Division of Labor: allows for job specialization. Authority and Responsibility: both formal and informal authority result from special expertise. Unity of Command: workers have only one boss. Line of Authority: clear chain of command, top to bottom of the firm. Centralization: degree to which authority rests at the top of the organization. Unity of Direction: single plan of action to guide the organization. Equity - The provision of justice and the fair and impartial treatment of all employees. ©

Order: place workers where most useful and have career opportunities. Initiative: encourage employees to act on their own. Discipline: workers need to obey Remuneration of Personnel: pay what is fair. Stability of Tenure of Personnel: Long-term employment is important Subordination of Individual Interest to the Common Interest: interest of organization priority Esprit de corps: Have enthusiasm ©

 Human Relations School  Genesis was in an experiment in Scientific Management ©

 Hawthorne Studies ©

Changed perspective in management from Taylor’s engineering approach to a social sciences approach, leading to "Human Relations" approach and, later, "Organization Behavior" approach: Engineering approach subordinated to social sciences Managers = leaders, motivators, communicators At one time major contributors to Management theory worked on Hawthorne experiments. ©

 Workers were not reacting to the conditions of the experiment  Workers were reacting to being in an experiment  “Hawthorne Effect” ©

His theory rested on these assumptions.  Physiological needs;  Safety or security needs  Belongingness or social needs;  Esteem or status needs  Self actualization or self-fulfillment needs. ©

Self actualization needs Esteem needs Social needs Safety needs Physiological needs ©

Theory XTheory Y Most People dislike work Work is a natural activity like play. Most People must be coerced and threatened before they work. People are capable of self direction and self control Most people prefer to be directed. They avoid responsibility and have little ambition. People become committed to organizational objectives if they are rewarded in doing so. ©

 Two diametrically opposed views  Which view do you hold? ©

 Management Science is NOT the same as Scientific Management  Originated in the Polaris missile project ©

 A problem is defined, and a model of the situation is developed  The model simplifies reality or represents reality in an abstract manner ©

 Step One:Develop a model of the problem or situation  Step Two:Quantify the variables ©

 A politically incorrect example ©

 Quantitative management — use of mathematic models, linear programming, simulation systems and chaos theory to solve management problems.  Operations management — techniques used to analyze all aspects of the production system. ©

 Total Quality Management (TQM) — analyzing input, conversion, and output to increase product quality.  Management Information Systems (MIS) — provides information vital for effective decision making ©

 There is no “one best way.”  Organizing (and other) decisions that match the demands of the environment provide adaptation. ©

It depends on where they are in the organization: LevelActivitiesSkill Top Direction/go als. Allocate resources. Set standards. Middle Integrate knowledge. Balance short- term with Long term goals. Develop people. Frontline Secure resources and Opportunities. Manage performance and improvements. ©

1. Interpersonal Roles: Figurehead – represents organization and it’s authority Leader – has power to make things happen Liaison – makes contacts with peers and other managers 2. Informational Roles: Gathers and processes information Monitor – scan environment for relevant cues Disseminator – passes selected information to those who need to know Spokesperson – informs outsiders ©

3. Decisional Roles: Entrepreneur – searches for new idea to implement, keeps mental track of their progress Disturbance handler – tries to keep conflicts in balance and arbitrates conflict Resource allocator – decides who gets what (resources and power); personal basis of decision- making 4. The Integrated Job of Manager: Implication for new manager – requirement for networks of information Implication for Team Managers – requirement for information sharing ©