1. Historical Foundations of Management

2. Classical Approaches

3. Classical Approaches to Management
Scientific Management - Frederick Taylor
Develop for every job: rules of motion, standardized work implements, proper working conditions
Carefully select workers with the right abilities for the job
Carefully train workers to do the job and give proper incentives
Support workers by carefully planning their work
Motion Studies are a management tool that allows for a task to be broken down into smaller parts (motions)
UPS use motion standards to time their sorters in order to insure that vans are packed in the shortest time possible

4. Classical Approaches to Management
Administrative Principles
Henri Fayol believed management could be taught, and so he developed his managerial guide
foresight - complete plan of action for future
organization - provide resources to implement plan
command - lead, select, evaluate workers to get the best work
coordination - fit diverse efforts together
control - make sure things happen according to plan

5. Classical Approaches to Management
Administrative Principles
Mary Parker Follett
Groups are mechanisms through which individuals can combine their talents for a greater good
She viewed organizations as “communities”
Manager’s job is to help others in organizations cooperate and achieve an integration of interests
All workers should be made to feel like an owner of the company

6. Classical Approaches to Management
Bureaucratic Organization - Max Weber
Bureaucracy
ideal, intentionally rational and very efficient form of organization
based on principles of logic, order and legitimate authority
Exercise – “Why it Pays to be a Jerk”

7. Classical Approaches to Management
Bureaucratic Organization
Defining characteristics
Clear division of labor
Jobs are well defined and workers are highly skilled
Clear hierarchy of authority
Formal rules and procedures
Impersonality
No preferential treatment; all rules are uniformly applied
Careers based on merit

8. Classical Approaches to Management
Bureaucracy
Today the term is often associated with a negative connotation
associated with possible disadvantages of bureaucracy are excessive paperwork or “red tape”
Slowness in handling problems
Rigid and often resistant to change
Employee apathy

9. Behaviourial Approaches to Management

10. Classical Approaches to Management
Hawthorne Studies
initial study to examine the relationship of economic incentives and physical conditions on worker output
relationship was not supported
“psychological factors” interfered with experiment
Relay Assembly Test-Room Studies
designed to minimize the “psychological factors” of previous experiment
factors that accounted for increased productivity
group atmosphere
participative supervision

11. Classical Approaches to Management
Hawthorne Studies
Employee Attitudes, Interpersonal Relations and Group Processes
Findings in final study
people will restrict output to avoid displeasure from the group
Groups can have strong negative, as well as positive, influences on individual productivity

12. Classical Approaches to Management
Hawthorne Studies
Lessons
Shift toward social and human concerns as keys to productivity
Hawthorne effect
people who are singled out for special attention perform as expected

13. Classical Approaches to Management
Human Relations Movement
managers who use good human relations will achieve productivity
The insights of the human relations movement set the stage for what is now evolved as the field of organizational behaviour

14. Classical Approaches to Management
Human Relations Movement
Maslow’s Theory of Human Needs
need is a physiological or psychological deficiency a person feels the compulsion to satisfy
deficit principle
satisfied need is not a motivator of behavior
progression principle
a need becomes a motivator once the need below it is satisfied

15. Classical Approaches to Management
Human Relations Movement
Maslow’s Theory of Human Needs
Physiological
Most basic of all human needs; necessities
Safety
Need for security, protection, and stability
Social
Need for love, affection, sense of belongingness
Esteem
In the eyes of others; respect; mastery; competence
Self-actualization
Self-fulfillment; to grow and be creative; use abilities to fullest extent

16. Classical Approaches to Management
McGregor’s Theory X and Theory Y
According to Theory X, managers believe workers
dislike work
lack ambition
are irresponsible
are resistant to change
prefer to be led

17. Classical Approaches to Management
McGregor’s Theory X and Theory Y
According to Theory Y, managers believe workers
are willing to work
are capable of self control
accept responsibility
are imaginative and creative
self-directed

18. Classical Approaches to Management
McGregor’s Theory X and Theory Y
Managers create self-fulfilling prophesies
That is, through their behaviour they create situations where subordinates act in ways that confirm the original expectations
Theory X managers create dependent and reluctant workers
Theory Y managers create workers who perform as expected with initiative and high performance
central to notions of empowerment
Exercise – Richest CEO’s

19. Classical Approaches to Management
Argyris’ Theory of Personality and Organization
management practices in traditional hierarchical organizations are inconsistent with mature adult personalities
Managers who treat people positively and like responsible adults will achieve more productivity

20. Exercise – What Would the Classics Say?
Consider the following…
Six months after being hired, Bob, a lab worker, is performing just well enough to avoid being fired. He was carefully chosen and had the abilities required to do the job well. At first Bob was enthusiastic about his new job, but now he isn’t performing up to this potential. Fran, his supervisor, is concerned and wonders what can be done to improve this situation.
Assume the identity of one of the philosophers discussed in the unit so far. Fran has asked you for advice of the management situation describe. Answer the following questions as you think your assumed identity would respond.
Be prepared to share your results with the class.

21. Exercise – What Would the Classics Say?
What are your basic beliefs about good management and organizational practices?
What do you perceive may be wrong in this situation that would account for Bob’s low performance?
What could be done to improve Bob’s future job performance?

22. Modern Approaches to Management
Systems Thinking
System
collection of interrelated parts that function together to achieve a common purpose
Subsystem
smaller component of a larger system
Open systems
organizations that interact with their environments in the continual process of transforming resource inputs into outputs

23. Organizational Network of Subsystems
Information &
Technology
Systems
Accounting &
Financial
Purchasing &
Inventory
Marketing, sales,
& Distribution
Operations &
Service
Management
Inputs
Suppliers
Outputs
Customers

24. Modern Approaches to Management
Systems Thinking
external environment
source of both resources and customer feedback
impact on operations and outcomes
boundary spanners
departments whose functions include working with outsiders and staying informed about external environmental developments

25. Modern Approaches to Management
Contingency Thinking
match managerial responses with
opportunities unique to different situations
no longer “one best way” to manage
Summative Case Study – Hewlett Packard

26. Trends and Directions Global Awareness
pressure for quality and performance excellence is created by a highly competitive global economy

27. Self Assessment Complete the self assessment A 21st Century Manager?
This survey will provide a profile of your management foundations (PMF). Before calculating what your score is, ask someone to predict the outcome.