CLASSICAL MANAGEMENT SCIENTIFIC APPROACHES

http://www.youtube.com/watch?v=vsSjsnny8JQ

Requirements for a “Profession” Formal education requirement for entry System of accreditation or licensing Clearly defined clients Profession-wide code of ethics

“Classical Approach” - Frederick Taylor Four Guiding Principles: Proper working implements, conditions & rules of motion: develop a science for every job Select right worker with right abilities Train worker & give incentive to co-operate: piece-rate pay Give necessary support (E.G., REST PERIODS).

Francis & Lillian Gilbreith Time & Motion Studies: reduce a job to its physical motions i.e. bricklayers Soldiering: working below capability “Cheaper by the Dozen” Concept still being used today The Original “Efficiency Experts”

Conclusions of Scientific Approach A use results-based compensation B design jobs to maximize a person’s performance potential C carefully select people D train people to perform to the best of their abilities E provide workers with supervisory support

HENRY GANTT Believed in offering bonuses for work performance Introduced the GANTT chart The GANTT chart is a planning, monitoring, and control mechanism which is quite simple in concept but a powerful tool Basically more complex projects are systematically broken down and plotted across time

ADMINISTRATIVE “Make every employee an Owner” Henry Fayol - Rules & Duties Of Mgmt. foresight: complete a plan organization: provide resources needed to implement plan command: get the best out of people coordination: ensure subunits fit together control: verify progress, take action

Henry Fayol - continued Fayol’s Mgmt. Principles: Scalar chain: clear chain of command Unity of command: receive directions from one person Unity of direction: one person in charge of all related activities

Mary Parker Follett Concerned with administration Proposed: 1) Employee-ownership 2) Proposed a systems theory point of view 3) Believed in corporate social responsibility Profit Sharing Gain Sharing Bring in improvements Greed/Ethics Unions

CLASSICAL APPROACH; BUREAUCRATIC ORGANIZATION Max Weber Weber’s View of Bureaucracy: clear division of labour Lots of rules – Military based Jobs filled with experts Hierarchy of authority careers based on merit

WEBERS IDEAL BUREAUCRACY Advantages Efficient Fair Consistent Predictable Rational

WEBERS IDEAL BUREAUCRACY Disadvantages Too much Red Tape slow to react to change Rigid in shifting customer needs & wants Not spontaneous

BEHAVIOURAL MANAGEMENT APPROACH Theory: Hawthorne Turning point in Management studies focusing on social & human concerns vs technical Started Human Relations movement where productivity improved with good people skills Evolved into O.B.

Hawthorne Effect Lessons from Hawthorne Studies A looked at people’s feelings B if singled out for special attention people will perform as expected C set stage for study of OB (organizational behaviour: study of individuals and groups in an organization

ABRAHAM MASLOW HIERARCHY OF NEEDS: Five Levels 1) Self-Actualization 2) Esteem 3) Social 4) Safety 5) Physiological

ABRAHAM MASLOW HIERARCHY OF NEEDS: Lessons from Maslow Managers who satisfy human needs will achieve productivity DEFICIT PRINCIPLE : Satisfied needs are not motivators PROGRESSION PRINCIPLE: Higher order needs are activated only when lower order needs have been satisfied

McGregor : Theory X & Y Theory X: Worker dislike job, lack ambition, resist change, are followers & irresponsible Theory Y: Employee participation, involvement, empowerment, self- management.

McGregor : Theory X & Y Lessons from Theory X and Theory Y A subordinates can act in ways that confirm a manager’s expectation B Theory X Mgrs: overly directive, narrow and control- oriented C Theory X Mgrs: give subordinates more participation, freedom and responsibility in their work

McGregor : Theory X & Y Lessons from Theory Y assume workers are: Willing to work Willing to accept responsibility Capable of self-direction Capable of self inner control Capable of imagination

QUANTITATIVE MANAGEMENT Foundation: Mathematical techniques can be used to improve managerial decisions 3 Characteristics: 1) focus on decision making where mgmt must take action 2) economic decision criteria ( costs, revenues, ROI) 3) involve mathematical models that follow sophisticated rules & formulas ; need computer models to run

USE OF REGRESSION ANALYSIS: POSSIBLE FACTORS: 1) SALES EXPERTISE; 2) EXISTING COMPETITION 3) CLIMATE/ENVIRONMENT 4) STORE LOCATION 5) LOCALE (URBAN SUBBURBAN, RURAL)