Exploring Management Chapter 2 Management Learning

Chapter 2 What are the lessons of the classical management approaches? What are the contributions of the behavioral management approaches? What are the foundations of modern management thinking.

Taylor’s scientific management sought efficiency in job performance. 2.1 Classical Management Taylor’s scientific management sought efficiency in job performance. Weber’s bureaucratic organization is supposed to be efficient and fair. Fayol’s administrative principles describe managerial duties and practices. Classical Management began in the late 1800’s. It has three subfields; Scientific Management, Bureaucratic Organizations and Administrative Principals.

Please insert the classical approaches graphic from page 32 here. Classical Management Please insert the classical approaches graphic from page 32 here.

CLASSICAL MANAGEMENT Scientific Management Frederick Taylor Wrote The Principles of Scientific Management in 1911. Believed in finding “maximum prosperity for the employer…and the employee” by identifying the most efficient way to perform tasks. Frederick Taylor was the first to apply scientific methods such as standard times to the management process.

CLASSICAL MANAGEMENT Scientific Management There is one “best” way to perform any task. Develop a science for each job. Example: Bricklayers were studied Hire workers with the right abilities Train and motivate workers Support workers by planning and assisting with job science Although Taylor’s approach was a major improvement, the scientific approach is often criticized for being to mechanistic.

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 Job descriptions were uncommon Promotions were usually based on personal connections The intent was good. Unfortunately, bureaucratic organizations have not lived up to expectations.

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 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 And the guidelines were excellent. But many bureaucratic organizations are terribly inefficient. So, what happened? The answer – poor implementation.

CLASSICAL MANAGEMENT Administrative Principles Henri Fayol Published Administration Industrielle et Générale in 1916. Analyzed and documented the practices of successful managers. Fayol put much responsibility for success on the manager’s abilities.

CLASSICAL MANAGEMENT Administrative Principles Five Duties of Managers According to Henri Fayol Foresight complete a plan of action for the future. Organization provide and mobilize resources to implement plan. Command lead, select, and evaluate workers. Coordination fit diverse efforts together, ensure information is shared and problems solved. Control make sure things happen according to plan, take necessary corrective action Henri Fayol’s five duties were very close to the modern management functions of planning, leading, organizing and controlling.

2.2 Behavioral Management Follett viewed organizations as communities of cooperative action. 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. Behavioral management theory brought the human side of employees into management considerations regarding productivity.

BEHAVIORAL MANAGEMENT Behavioral/Human Resource Approaches Please insert figure 2.1 here The Behavioral or Human Resource approaches gave employees a lot more credit for having motivation that went beyond money. Follett, Mayo, Maslow, Argyris and McGregor researched the human side of the workplace.

BEHAVIORAL MANAGEMENT Organizations as Communities Mary Parker Follett – 1920’s Believed that people liked to work in groups and organizations should be communities Advocated managers and workers work in harmony and employees should own a share of the business Forerunner of “managerial ethics” and “social responsibility” Follett was a real visionary. She worked to make the workplace a place that employees felt part of a community that was accomplishing something important. Employee ownership, profit sharing, delegation, empowerment and social responsibility were main themes of her work.

BEHAVIORAL MANAGEMENT The Hawthorne Studies Lead by Elton Mayo of Harvard Studies tried to determine how economic incentives and physical environment affected productivity Involved over 21,000 people Concluded that human needs were an important factor in increasing productivity Although the Hawthorne studies didn’t prove what they intended to prove and are criticized for their poor research design, the lessons are profound. Worker performance is influenced by the way they are treated by their managers.

BEHAVIORAL MANAGEMENT Hierarchy of Human Needs Abraham Maslow described human needs and how we try to satisfy them Lowest level needs are necessary for survival Progression principle - when one need is satisfied, we proceed on to a higher level need Deficit principle – satisfied needs don’t motivate behavior Maslow’s research explains why we are motivated by different rewards.

Behavioral Management Hierarchy of Human Needs Please insert figure 2.2 here The highest level is Self-actualization. At that level, organizations motivate workers by allowing personal development such as offering tuition reimbursement to encourage employees to continue their education.

BEHAVIORAL MANAGEMENT Self-fulfilling Prophecies Douglas McGregor Employees react to manager expectations Managers are separated into two beliefs / styles 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 Theory Y Managers Believe employees are willing to work, capable of self control and self direction, responsible and creative Use behavioral “participative” style Scholars often equate Theory X with Classical management theory and Theory Y with Behavioral management theory.

BEHAVIORAL MANAGEMENT Personality and Organization Chris Argyris argues that employees: want to be treated as adults will perform better with less restrictive / defined tasks will behave counter to Scientific & Administrative theories that argue for close supervision Many of modern day management practices are based on Argyris’ principals.

2.3 Modern Management Approaches Managers use quantitative analysis and tools to solve complex problems. Organizations are open systems that interact with their environments. Contingency thinking believes there is no one best way to manage.

2.3 Modern Management Approaches continued… Quality management focuses attention on continuous improvement. Evidence-based management seeks hard facts about what really works. Modern management approaches recognize that people and organization are complex and constantly changing.

MODERN MANAGEMENT APPROACHES Quantitative Analysis Quantitative Analysis and Operations Research apply mathematical techniques to solve management problems such as Forecasting sales or expenses Establishing optimal levels of inventory Reducing labor costs without sacrificing customer service Organizations accumulate huge amounts of data from sales, inventory, consumer behavior, supply chain management and many other sources. Quantitative analysis takes that data and determines how to improve efficiency, reduce costs and improve service.

MODERN MANAGEMENT APPROACHES Quantitative Analysis Operations Management Producing goods and services efficiently and effectively, including Improving processes and operations Effective workflow designs Project management Inventory management Quality control Operations management affects many of our daily activities from deciding how many restrooms to put in a new campus building to redesigning the college website.

MODERN MANAGEMENT APPROACHES Open Systems Please insert figure 2.3 here Open systems use resources from the external environment to produce goods and services that the external environment consumes as output. Much like a college uses faculty, information technology and tuition money to produce educated management students.

MODERN MANAGEMENT APPROACHES Subsystems Subsystems are a smaller part of a larger system. Please insert figure 2.4 here Organizations need many different tasks to complete their transformation of inputs into outputs. These tasks are often organized into subsystems.

MODERN MANAGEMENT APPROACHES Contingency Thinking Contingency thinking – The best way to manage depends on the circumstances. Environmental uncertainty Technology Organizational structure Employee abilities There is no “one best” way to manage. The tasks performed, employee talent and training, competitive environment, economy and many other factors require managers to adjust their style.

MODERN MANAGEMENT APPROACHES Continuous Improvement W. Edwards Deming – early advocate of quality control Taught quality control techniques to Japanese industry in the 1950s Rediscovered by U.S. industry in the early 1980s Deming’s quality techniques were important to rebuilding Japanese industry after World War II.

MODERN MANAGEMENT APPROACHES Continuous Improvement Tally defects Analyze and trace them to the source Make corrections Keep a record of what happened Deming’s principles Deming’s principles seem simple but are very effective in reducing waste and defects.

MODERN MANAGEMENT APPROACHES Continuous Improvement Total quality management Organization-wide commitment to quality products or services. Continuous improvement Always looking for new ways to improve. Total Quality Management or TQM integrates quality principles into everything the organization does.

MODERN MANAGEMENT APPROACHES Evidence-based management High-performance organizations High performance operations High quality work life Evidence-based management Uses data from extensive research to determine what practices really work well Challenges conventional wisdom Evidence-based management uses scientific methods to research a question or problem. A hypothesis is established such as “employees are more productive when they establish their own work hours”. A research design is created to test the hypothesis and data is gathered to prove or disprove the hypothesis. Students may recognize the techniques from Organizational Behavior or Sociology classes.