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?

MANAGEMENT LEARNING

Classical Management
MODULE GUIDE 3.1

 Taylors scientific management sought efficiency in job performance.  Webers bureaucratic organization is supposed to be efficient and fair.  Administrative principles describe managerial duties and practices.

CLASSICAL MANAGEMENT

Scientific Management

 Scientific Management
 Emphasizes careful selection and training of workers
and supervisory support  Described by Frederick Taylors Principals of Management in 1911.

CLASSICAL MANAGEMENT

Scientific Management
Taylors Four Principles of Scientific Management 1. Develop a science for each jobrules 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.

CLASSICAL MANAGEMENT

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

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.

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

CLASSICAL MANAGEMENT

Administrative Principals
 Henri Fayol Administration Industrielle et Generale - 1916
Five Duties of Managers According to Henri Fayol 1. Foresightcomplete a plan of action for the future. 2. Organizationprovide and mobilize resources to implement plan. 3. Commandlead, select, and evaluate workers. 4. Coordinationfit diverse efforts together, ensure information is shared and problems solved. 5. Controlmake sure things happen according to plan, take necessary corrective action.

CLASSICAL MANAGEMENT

Administrative Principals
 Mary Parker Follett 1920s
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

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 selffulfilling prophesies.  Argyris suggests that workers treated as adults will be more productive.

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

Definition of Hawthorne Studies

 The Hawthorne Studies were conducted from 1927-1932 at the Western Electric Hawthorne Works in Chicago, where Harvard Business School Professor Elton Mayo examined productivity and work conditions.

Definition of Hawthorne Studies Cont.

 Mayo wanted to find out what effect fatigue and monotony had on job productivity and how to control them through such variables as rest breaks, work hours, temperatures and humidity.

Mayos Experiment
 Five women assembled telephone relays, one supplied the parts.  Made frequent changes in working conditions with their consent.  Records were kept of relays made, temperature and humidity of rooms, medical and personal histories, eating and sleeping habits, and bits of conversation on the job.  No one supervised the girls.  They were told to work as they felt and at a comfortable pace.

Mayos Experiment Cont.

 Productive capacity was measured by recording the girls output for two weeks before the study began.  First five weeks, no changes were made.  Third stage, a pay system was ensured allowing the girls to earn in proportion to their efforts.  Eight weeks later, two five-minute rest pauses were added.

Mayos Experiment Cont.

 Eighth phase, workday ended a half-day early.  Ninth phase, the girls finished an hour earlier than usual.  Five-day week introduced.  Girls went back to no breaks, lunches and a full work week, output declined for those twelve weeks.

Results
 Researchers found that output rates werent directly related to the physical conditions of the work.  Output went up when:
     They were put on piece-work for eight weeks. Two five minute rest pauses were introduced for five weeks. Rest pauses were lengthened to ten minutes. A hot meal was supplied during first pause. They were dismissed at 4:30 p.m. instead of 5:00 p.m.

Results Cont.
 Output slightly fell when six five minute pauses were added.  It remained the same when they were dismissed at 4:00 p.m. instead of 4:30 p.m.  Mayo believes what actually happened was that six individuals became a team and the team gave itself wholeheartedly and spontaneously to cooperation in the experiment. The consequence was that they felt themselves to be participating freely and without afterthought, and were happy in the knowledge that they were working without coercion from above or limitations from below.

Conclusions
 Work is a group activity.  Social world for an adult is primarily patterned about work.  Need for recognition, security and sense of belonging.  Complaints, commonly a symptom manifesting disturbance of an individuals status position.

Conclusions Cont.
 Attitudes and effectiveness are conditioned by social demands.  Informal groups at work are strong social controls over the work habits and attitudes of a worker.  Change from established society to adaptive society.  Group collaboration.

Brainstorming: How this can be used in organizations

 Cooperation and communication with coworkers.  Rearrange/reorganize job functions.  Create an atmosphere of working as a team.

Nuts and Bolts: Explanation of Topic

 Interviewing
Provide insight to workers moral, their likes and dislikes and how they felt about their bosses.

Nuts and Bolts: Explanation of Topic Cont.

 Role of Supervisor
Retained the responsibility of making sure that their workers reached production levels, should lead their workers.

Nuts and Bolts: Explanation of Topic Cont.

 Management
Need to gain active support and participation from workers, while maintaining managerial control. Be patient with workers, listen to them, and avoid creating emotional upsets.

Nuts and Bolts: Explanation of Topic Cont.

 Teamwork
 Cooperation, communication, sense of belonging.  Mans desire to be continuously associated in work with his fellows is a strong, if not the strongest, human characteristic. Any disregard of it by management or any ill-advised attempt to defeat this human impulse leads instantly to some form of defeat for management itself.

How it Works in the Field

 Aspects of Hawthorne Studies
Workers Management Motivation Productivity

How it Works in the Field Cont.

 Workers
Insights, suggestions, likes and dislikes, moral, training.

 Management
Transfer of power to workers, knowing their workers.

How it Works in the Field Cont.

 Motivation
Incentives to increase productivity and quality.

 Productivity
By increasing the output rate and keeping costs down, the company will be able to increase profits.

Summary
 Hawthorne Studies dealing with worker motivation and work productivity.  Increase communication and cooperation among coworkers.

Summary Cont.
 Motivation can cause an increase in productivity  Involve employees in decision making.  Create a sense of belonging by creating teams.