Philosophies & Approches to Management
Mrs. Shuchi Dikshit
The Classical School of Management
Focuses on the idea that economic rationality controls behaviour and decisions made by managers & individual employees Economic motive drives people
The Classical School of Management
The Scientific Management Movement
Management which conducts a business or affairs by standards established by facts or truths gained through systematic observation, experiment, or reasoning. Focused on increasing labor efficiency and productivity primarily by managing the work of employees in the organizations technical core (i.e., shop floor). Characterized by close forms of supervision and control-oriented management practices.
Scientific Management Pioneers
Charles Babbage (17921871)
Advocated division of labor and job specialization. Suggested close supervision for control oriented mgmt Promoted time studies to establish performance standards and rewards for exceeding standards.
Frederick Taylor (18561915)
Considered the father of scientific management. Believed in the science of workthe underlying laws, or principles, that govern various work activities. Believed in the economically-motivated mutuality of interest of employees and managers.
Fredrick Taylors Scientific Management Prescriptions
Develop the science of work (one best way). Emphasize an absolute adherence to work standards. Scientifically select, place, and train workers Apply a financial incentive system. Utilize specialized functional supervision. Develop and maintain friendly labormanagement relations.
Functional Supervision and Unity of Command
Cost Clerk Supervisor Time Clerk Supervisor Inspector Supervisor Repair Boss Supervisor
... Disciplinarian Supervisor
Functional Supervision
VS.
Unity of Command
General Supervisor
Scientific Management Pioneers
The Gilbreths
Frank Gilbreth (18681924) focused on improving work methods such as bricklaying to improve effectiveness and efficiency. Lillian Gilbreth (18781972) pioneered modern human resource management.
Developed a classification scheme to describe the motions (therbligs) used in the performance of a job.
Scientific Management Pioneers
Henry Gantt (18611919)
Developed the Gantt chart to summarize work activities and identify those tasks that should be performed simultaneously or sequentially. Advocated a minimum-wage-based incentive system and bonuses for work above and beyond the expected standard by employees. Proposed a bonus system for supervisors to encourage them to manage subordinates effectively.
Gantt Chart for Classic Home Contractors
Draw Plans Rough Framing Rough Electrical Cabinet Ordering Final Electrical Work Install Wallboard Install Cabinets Install Carpet Final Inspection Week 1 Week 2 Week 3 Week 4
Administrative Management and the Bureaucratic Organization
Organizations were viewed as giant machines created to achieve goals. A basic set of universal laws, or principles should govern organization design and allow managers to run those machines effectively.
Administrative Management
Henri Fayol (18411925)
Believed that all managers perform five managerial functions:
Planning Organizing Commanding Coordinating Controlling
Fayols Fourteen Principles
1. 2. 3. 4. 5. 6. Division of labor Authority Discipline Unity of command Unity of direction Subordination of individual interest for common good 7. 8. 9. 10. 11. 12. 13. 14. Remuneration Centralization Scalar chain Order Equity Stability of tenure Initiative Esprit de corps
The Bureaucratic Organization
Max Weber (18641920)
Envisioned an organization managed on an impersonal and rational basis. Goals of the bureaucratic model:
Speed Precision Order Unambiguity Continuity Predictability
Structure of the Bureaucratic Model
Division of labor (functional specialization) Well-defined hierarchy of authority (centralization of authority) Systems of rules for employees and work procedures Impersonal organizational relationships Selection and promotion solely on competence Career employment and well-defined promotion path to top of organization Organizational transactions extensively documented
Contributions and Limitations of the Classical School
Contributions Prescriptions for how to manage organizations Search for one best way to manage to lead to greater organizational efficiency Spurred additional research into management and organizational systems Limitations Limited view of employees as resources without social needs Pursuit of one best way (universal principles) to manage Control-oriented approach creates an inflexible, mechanistic organization
The Hawthorne Studies
Worker productivity studies (19241933) carried out at Western Electric.
Focused on the relationship of workers productivity and changes in their work environment. Strongly influenced by behavioral management theory. Researchers concluded that social factors were powerful determinants of worker productivity.
Results were inconsistent with expectations: Productivity improved under adverse conditions. Informal work groups with leaders and norms
Rate busters and chiselers
Behavioral School of Management
An organization was viewed as a social system of people-to-people and people-to-work networks in which employees have both social needs and the desire to make meaningful contributions toward the accomplishment of organizational goals.
Behavioral School Contributors
Robert Owen (17711858)
Progressive industrialist who recognized need for good overall management of an organizations human resources. Treating them right.
Hugo Munsterberg (18631916)
Father of industrial psychology and its use to enhance organizational effectiveness. Match workers with job & then motivating them.
Walter Dill Scott (18691955)
Advocated improving employee attitudes and motivation as a means to increase worker productivity & not just improving technology.
Behavioral School Contributors
Mary Parker Follett (18681933)
Asserted that managers influence and power(leadership) should flow from their knowledge and skill & not from authority.
Chester Barnard (18861961)
Provided insight into the concept of formal (consciously created) and informal (spontaneous) organizations within firms.
The Human Relations Model
Worker Satisfaction
leads to . . .
Enhanced Worker Performance
A management model that views the employee as socially motivated and operates from the assumption that a social need-satisfied worker is a productive worker.
The Behavioral Science Influence
Behavioral science movement
A movement that stressed the need to conduct a systematic and controlled field and laboratory studies of workers and their motivation, attitudes, and behavior. Introduced the growth model of the employee. The movement eventually gave rise to organizational behavior as a discipline.
Behavioral Science Contributors
Abraham Maslow (19081970)
Identified sets of basic human needs and suggested that they could be arranged in a hierarchy based on their importance to the individual.
Douglas McGregor (19061964)
Developed the Theory X (traditionalnegative management approach) and Theory Y (positive management approach) to workers and work motivation.
Behavioral Science Contributors
Chris Argysis
Believed that the conflict between mature individuals and bureaucratic organizations could be avoided by the development of open and flexible organizations.
Rensis Likert
Stressed teamwork and a group approach to organizational design and management, which he called System 4.
Organizational Humanism
A system that promoted an interest in understanding the psychological forces tying individuals to organizations. A system that also promoted management practices that lead to employee satisfaction and well-being.
The Human Resources Model
Employee Involvement Organizational Performance Satisfaction
Commitment and a Willingness to Become More Involved
The belief that through employee involvement in organizational decision making performance would be enhanced, leading to employee satisfaction, commitment and motivation for further involvement.
The Human Resources Model
High-involvement management and organization (Edward E. Lawler, III)
A participative process (everyone at all levels) that uses the entire capacity of workers, is designed to encourage employee commitment to organizational success. Depends upon management providing the necessary information, skills, empowerment and reward systems for organizational members.
Contributions and Limitations of the Behavioral School
Contributions Raised awareness of the need to design open, flexible organizations Introduced the growth needs model of the employee Limitations Lacks a language for communicating its ideas to managers Havent gotten top managements attention and respect Persistence in the belief that there is one best way to manage
Dominant Features of the Behavioral Model
Involvement-oriented management practices Organic organization design
organization is a social system (human community) involvement-oriented organization flexible structure dynamic tasks, loosely defined consultative communications authority flows from knowledge and expertise vs. position low levels of standardization extensive use of groups/teams open system
Model of the employee
human relations movementsocial being human resource movementgrowth being
Other Management Perspectives
Contingency perspective
The belief that the techniques appropriate for a manager to use depend (are contingent) on the specific situation.
Contingency perspectives
Total quality management Systems theory Theory Z McKinsey 7-S framework
Demands on Effective Management: Contingency Perspectives
Develop Diagnostic Skills for Situational Awareness Identify Appropriate Style and Fit It to Situation
Management Challenges
Develop Capacity for Flexible Behavior
Total Quality Management Perspective
Quality management perspective
An approach to management that has as its goal the achievement of customer satisfaction by providing high-quality goods and services.
Total quality management (TQM)
A management philosophy and way of managing with the goal of getting everyone committed to quality, continuous improvement, and the attainment of customer satisfaction by meeting or exceeding customer expectations.
TQM pioneers: Deming, Juran, Ishikawa
Total Quality Management Perspective
TQM assumptions
Quality products are less costly to produce than poor quality products. People (employees) care about quality and improving the quality of their work. Organizations are systems of interdependent parts and quality problems cut across functional lines. Quality and continuous improvement are the responsibility of top (senior) management. Continuous learning and improvement are vital to the long-term health and survival of an organization.
The Systems Perspective
Systems theory
A view of an organization is made up of a number of interrelated elements, each functioning to contribute to the purpose of the whole organization which exists in an interdependent relationship with the external environment.
The McKinsey 7-S Framework
Structure Strategy Systems
Skills
Organization Management
Staff
Style
Shared goals
A Comparison of American, Japanese, and Theory Z Organizations
Theory A (American) Theory J (Japanese)
Short-Term Employment Individual Decision Making Individual Responsibility Rapid Evaluation and Promotion Explicit Control Mechanisms Specialized Career Path Segmented Concern for Employee as a Person
Lifetime Employment Collective Decision Making Collective Responsibility Slow Evaluation and Promotion Implicit Control Mechanisms Nonspecialized Career Path Holistic Concern for Employee as a Person
Theory Z (Modified American)
Long-Term Employment Collective Decision Making Individual Responsibility Slow Evaluation and Promotion Implicit, Informal Control with Explicit, Formalized Measures Moderately Specialized Career Paths Holistic Concern, Including Family
Contributions and Limitations of the Contemporary Schools
Contributions Unified the technical side (classicists) and the social elements of organizations (behavioralists). Showed that there is no one best way to manage in all circumstances. Limitations Contemporary approaches to management are more complex than the classical and behavioral approaches. No contemporary management approach has been thoroughly researched.
