lect2 classical approaches pom

8/2/2019 Lect2 Classical Approaches PoM

1/72

Management: Concepts and

Evolution


2/72

An Introduction to Management

Definition :The process of achieving desired resultsthrough efficient use of human and material resources .

Bedeian 1993


3/72

What are Managers?

What do all these people have in common?1. They all work in organisations.

Organisations are collections of people who work together

and coordinate their actions to achieve a wide variety of goals or desired future outcomes.GR Jones, Organizational Theory, Design and Change

(Upr Saddle River, JH: Pearson, 2007)

2. As Managers, they are the people responsible for

supervising and making the most of an organisationshuman and other resources to achieve its goals.

3


4/72

What is Management?

Management is viewed as the process in whichmanagers engage to achieve organisational goals.

Management concentrates on achieving specificorganisational goals by employing human,financial, physical and information resources.

Management is about getting things done throughother people.

4


5/72

Nature and Importance of

Management

Management :

* revolutionised the social and economic fabric of thedeveloped regions of the world.

* made the structure of modern industry possible.

* enabled large numbers of knowledgeable and skilledemployees to achieve organisational goals.

* has become one of the most important resources of the developed world.

Drucker (1988)

5


6/72

Early Management Thought

Ancient Egyptians used managerial skills tobuild The Pyramids involving over 100,000

workers, taking 30 years to build Catholic Church Managerial techniquesemployed included a strict hierarchy of authority - from Priest, Parish Priest, Bishop,Arch Bishop, Cardinal & Pope andspecialisation of members along a functionalbasis.

6


7/72

Early Management Thought

The concept of centralisation of authority inRome remains the same today as when it was

first introduced in 2 AD.

The church became a model for themanagement of other religious organisationsand also for the army who further developedthe concepts of Leadership, Unity of Command, Line Authority and Staff Authority.

7


8/72

The Industrial RevolutionA watershed in Management development:

It is the name given to the long series of fundamental technological, economic,social and cultural changes which took place in England between 1760 and1840. These changes transformed England from a rural economy into a greatindustrial nation.

Technological changes included the following: the use of new basic raw materials, notably iron and steel the invention of new machines provision of new sources of energy including coal, the steam engine and later

in the 1860's, electricity and petroleum.

Goods could now be produced in larger quantities bringing about growth inconsumer markets.

8


9/72

The Industrial Revolution All these changes brought with them a new

organization of work known as the factory system ,based on the principles of the division of labour and specialization , where workers worked

together in a tightly controlled situation withnarrowly defined jobs.

Corporate ownership changed the relationshipbetween owners and employees and led to theorigin of Modern Management .

9


10/72

The Industrial Revolution

Mechanisation large scale factories -productivity increased with economies of

scale As organisations grew so did complexity Debate about management and the key

current issues; production, efficiency & cost savings

10


11/72

The Importance of Theory andHistory

Why Use Theories? Theories provide conceptual frameworks for organizing

knowledge and blueprints for actions.

Management theories are grounded in reality. Managers develop their own theories about how they

should run their organizations.

Why Study History? Understanding history aids managers in the

development of management practices and in avoidingthe past mistakes of others.

11


12/72

Classical Approaches1. Scientific ManagementConcerned with improving the performance of individual workers (i.e.,

efficiency).

Grew out of the industrial revolutions labor shortage at the beginning of thetwentieth century.

2. Bureaucratic Approach

A logical, rational, and efficient organization design based on a legitimate andformal system of authority.

3. Administrative Management (Fayol)

A theory that focuses on managing the total organization.

4. Human Relations Approach

Organizations that pay attention to work groups and interpersonal

processes are more effective than bureaucratic organizations.

12


13/72

The Evolution of Management Thought

13


14/72

1. Scientific Management (SM)

Birth of Scientific Management is attributedto Fredrick Taylor (1911)

The one best way of performing a task through the application of scientificmethods

14


15/72

15

Frederick Taylor (1856-1917 )Scientific Management

He trained in the USA as an Engineer.

Scientific Management is concerned with the development of One Best Way of performing a highly specialised task (minimum training) through the application of scientific methods Time & Motion studies eg Ford Cars Mass Production Linesystems, Call Centres. controlling speed of work

He assumed that jobs can be designed on a rational basis inorder to maximise workers efforts with a view to quicken

production, radically reduce costs and increase output.

He is responsible for the division of work betweenManagement (directing and allocating work) and Workers(completing the tasks).


16/72

Taylors 4 Steps in Scientific Management

16


17/72

17

Criticisms of Scientific Management

Assumed people were motivated solely by money;

Separation of planning/controlling led to a sense of 'alienation'/boredom by the worker;

reduced the scope of a person's job; 'single best way' of doing job;

ruled out TU activities such as 'bargaining' as rates wereanalysed and timed on a 'scientific basis';

The attempt to enunciate principles, laws, hypotheses,

theorems, postulates (or whatever the current terminology)which apply to ALL organizations, rather than to SPECIFICtypes of organizations.

failed to deal with the relationship between the organisationand the environment.


18/72

2. Bureaucracy

Max Weber (Early 1900s)

Translated into English from German in the1920s

Weber concentrated on how to structure

organisations for success

18


19/72

Bureaucratic Approach (Weber)

Bureaucratic Model (Max Weber)

1. The concept of bureaucracy is based on a rational setof guidelines for structuring organizations in the mostefficient manner

2. A logical, rational, and efficient organization designbased on a legitimate and formal system of authority

19


20/72

Bureaucratic Approach (Weber)

Many people associate bureaucracy with red

tape, rigidity and passing the buck and argueabout the bureaucracy involved in theDepartment of Social and Family Affairs herein Ireland..

20


21/72

2. Bureaucracy- 6 Main Elements1. Division of labour Tasks divided &

delegated to specialists so that responsibility& authority were clearly defined.

2. Hierarchy Positions were organised in ahierarchy of authority from Top to Bottom inthe organisation.

3. Selection employees recruited on basis of technical qualifications rather thanfavouritism

21


22/72

2. Bureaucracy- 6 Main Elements

4. Career orientation Managers were viewed

as professionals pursuing careers rather thanhaving ownership in the organisation.

Employment and advancement in theorganisation should be based on technicalexpertise.

22


23/72

2. Bureaucracy- 6 Main Elements

5. Formalisation Organisation was subject to

formal rules & procedures ensuringefficiency.

6. Impersonality Rules & Procedures wereapplied uniformly to all employees.

23


24/72

2. Bureaucracy in Ireland Used in large scale organisations world-wide

due to the fact that it allowed suchorganisations to perform many routineactivities necessary for survival.

Popular for public organisations such as civilservice and Irish semi-state bodies egEnterprise Ireland, FAS and DIT!

24


25/72

2. Bureaucracy in Ireland

Consider the steps you must go through and theforms you must fill out to apply for admission tocollege and file for graduation

When paper is replaced with electronic media, the steps

are often the same. The reason these procedures are necessary is that colleges

deal with large numbers of people who must be treatedequally and fairly. Hence, rules, regulations, and standing

operating procedures are needed. Trade Unions are alsousually organised as bureaucracies

25


26/72

Strengths of Bureaucracy

A primary strength of the bureaucratic model is thatseveral of its elements (such as reliance on rules andemployment based on expertise) do, in fact, oftenimprove efficiency.

Bureaucracies also help prevent favouritism (becauseeveryone must follow the same rules) and make

procedures and practices very clear to everyone.

26


27/72

Criticisms of Bureaucracy

Extensive rules and procedures can sometimes become ends in themselves;

People are stereotypes. Not enough resources to treat everyone uniquely.

Bureaucracy too rigid at times;

Slow to act and react to changing environment;

Resists change;

Means can be more important than ends e.g. job descriptions can be moreimportant than the people who fill them;

Strict division of labour can lead to jobs becoming routine and boring.

27

3 H i F l


28/72

Administrative Management Theory Focuses on managing the total organization

rather than individuals ( eg Scientific Mgt )

Henri Fayol Wrote General and Industrial Management. Helped to systematize the practice of

management. Was first to identify the specific management

functions of planning, organizing, leading, andcontrolling.

3. Henri Fayol 1841-1925 Administrative Management

28


29/72

Administrative management/Fayol was

concerned with Administrative Principles thatapply to the organisation as a whole. Heidentified them as the 14 Universal Principles of

Management

He focused on senior managers and identified keyfunctions which managers needed to achieve iePlanning, Organising, Leading (motivating) and

Controlling. Fayol concluded that all business activities should

be divided into six essential areas29


30/72

Fayols Fourteen Management Principles

30


31/72

Fayols 14 Principles

1. Division of Labour : Results in specialisation of functionsand separations of powers (too much specialisation = boredom)

2. Discipline : Obedience, energy, application, respect for asuperiors authority. (trying to create a reliable & hardworking workforce. Discipline, hesaid, results in respectful relations between organisational members and reflects the quality of anorganisations leadership and a managers ability to act fairly and equitably.

3. Authority & Responsibility : Distinguishes between formaland personal authority. Personal authority is derived fromintelligence, experience and ability; formal/official authorityfrom a POSITION within the organisations hierarchy.

31


32/72

Authority Definition:

Authority refers to the discretion and scope given to a personto make decisions.

The authority that a person has will determine the role to beplayed by that person. It will also determine his/herrelationship with other people in the company.

32


33/72

Responsibility Definition: Responsibility is an obligation to perform assigned duties to

the best of one's ability.

Responsibility and authority are closely linked. Any personwith authority should have commensurate responsibilityand, likewise, any person having responsibility shouldhave commensurate authority.

33


34/72


4. Unity of Command : Roles must not become blurred and afocused reporting structure to ONE BOSS is in place. (Dualcommand, he said, confuses workers, undermines order and discipline and creates havoc within theformal hierarchy of authority. Assessing the managers authority and responsibility in a system of dualcommand is difficult and the manager who is bypassed feels slighted and angry and may beuncooperative in the future.)

5. Unity of Direction: the creation of one plan of action toguide managers and workers as they use organisationalresources. He believed that an organisation without a single guiding plan becomes inefficient;its activities become unfocused and individuals and groups work at cross-purposes)

6. Subordination of Individual interest to General: Fulfillingthe organisations needs prevails over meeting theindividual or departmental needs. (He said that equitable agreements must beestablished between the organisation and its members to ensure that employees are treated fairly andrewarded for their performance).

34


35/72


7. Remuneration: Fayol described various methods eg1. Schemes for individuals and groups2. Piece-time rates

3. Profit sharing

8. Centralisation: vs Decentralisation depends on thesituation and the size of the organisation. (he was one of the firstmanagement writers to focus on centralisation, the concentration of authority at the top of themanagerial hierarchy. He believed that authority should not be concentrated at the top of the chain of command because it can lower the motivation of lower and first-line managers and make them less

flexible and they become reluctant to make any decisions on their own, even when necessary.)

35


36/72


9. Scalar Chain: (Line of Authority) Hierarchical Chain of Authority and Communication from top to bottom. Also ahorizontal link in the chain so that communication takes place between different people indifferent parts of the organisation. He understood that the greater the number of levels inthe hierarchy, the longer the communication between managers at the top & bottom andthe slower the pace of planning and organising.

10. Order: Everything has a place in the organisation - egoffices to be housed in pre-designated areas; kept clean &tidy. He devised Organisational Charts to help locate people in their place in theorganisation.

36


37/72


11. Equity : Fairness went beyond the legal aspect organisations should manage within the spirit of the law (Fayol wrote: for personnel to be encouraged to carry out their duties with all the devotion and loyaltyof which they are capable, they must be treated with respect for their own sense of integrity, and equityresults from the combination of respect and justice

12. Stability of tenure : as training managers is expensive

13. Initiative : Taking the Initiative and using your discretion everyone in the org. should be asked to contribute to plansand ideas. He said it took confident managers to encouragethe initiatives of subordinates.

14. Esprit de Corps : considered here the need for harmonyand teamwork not divide and rule Policy, encouraging

conflict.37


38/72

Fayols Functions of Management

PlanSetting goals and objectives for organizations and showing howthese goals and objectives are to be accomplished.

OrganizeOnce a plan is made, organizing becomes meaningful - bringingtogether resources - people, capital, equipment, in the mosteffective way to accomplish the goals. Organizing, therefore,involves integration of resources.

38


39/72

Fayols Functions of Management

LeadingPlays a large part in determining the level of performance of employees, which in turn influences how effectively theorganizational goals will be met.

ControlInvolves feedback of results and follow-up to compareaccomplishments with plans and to make appropriateadjustments where outcomes have deviated from expectations.

39


40/72

And finally, Fayols Business Activities

40


41/72

Criticisms of Fayol

Universal Principles do not take account of variations in the environment, technology orpersonnel which may require alternativemanagement action.

There is no 'one best way' to structure or managean organisation.

FAYOL, who came after Taylor, developed the 'TopDown' view of organization rather than a'Bottom Up', factory floor view.

41


42/72

Criticisms of FayolDefinitions of Management

J P Kotter (1982), in an article entitled "What effective generalmanagers really do" suggests that effective managers to notfunction in a crisply defined environment, or direct throughformally delineated organizational channels, or systematically setand follow a formal plan. He suggests that a rather large gap existsbetween the conventional wisdom on management functions(FAYOL) and systems on the one hand and actual managerialbehaviour on the other.

Actual behaviour looks less systematic, more informal, lessreflective, more reactive, less well organized and more frivolousthan a student of strategic planning systems would ever expect.

42


43/72

Criticisms of FayolDefinitions of Management

Fayol in the 1920s Management has been traditionally defined as gettingthings done by, with and through people by Planning,

Leading, Organising and Controlling.

Peter Drucker wrote (l954)"The Practice of Management" - that a Manager is the

'conductor of a symphony orchestra, through whoseefforts, vision and leadership, individual instrumentalparts, that are so much noise by themselves, become theliving whole of music." 43


44/72

Criticisms of FayolDefinition of Management Leonard R Sayles (l964)

wrote that "management is like a symphony orchestraconductor, endeavouring to maintain melodiousperformance ... while the orchestra members are havingvarious personal difficulties, stage hands are movingmusic stands; alternating excessive heat and cold arecreating audience and instrument problems, and thesponsor of the concert is insisting on irrational changes inthe programme."

44


45/72

4. Human RelationsBehavioural Management

Early advocates of the classical managementperspective viewed organisations and jobs from amechanistic point of view ie they essentiallysought to conceptualize organizations asmachines and workers as cogs within thosemachines.

Their focus tended to be on how managers couldcontrol and standardize the behaviour of theiremployees.

45


46/72

4. Human RelationsBehavioural Management

In contrast, the Human Relationsapproach placed much more emphasis onindividual attitudes and behaviours andhow people behave within groups.

46


47/72

4. Human Relations

Behavioural Management Emphasized individual attitudes and behaviors,

and group processes eg group cohesion/norms..

Looked at how social & psychological factorsinfluence performance

Emerged from a research study that began as a

scientific management application to determinethe impact of working conditions on performanceand ended up discovering the effect of the humanfactor on productivity.

47


48/72

A number of different experiments were carriedout by Elton Mayo and Associates in WesternElectric (now AT&T) (1927 1935) in the USA:

1. The Illumination Experiments (1924-27)

2. Relay Assembly Room Experiments (1927-32)

3.The Bank Wiring Observation Room Experiments(1931-32)

48

Hawthorne Experiments


49/72

49

Hawthorne ExperimentsElton Mayo (1880-1949)

Started as a Scientific Management application to determine the impact of workingconditions on performance and ended up discovering the effect of the humanfactor on productivity.

The studies are divided into 3 main phases: Illumination Experiments 2 groups of women examine how level of lighting

affected worker output. OUTCOME: Workers aware of being observed and enjoyed

the improved participation in the work. Workers derived a sense of importance frombeing asked to take part in the experiment.: phenomenon became known as theHawthorne Effect.

Relay Assembly Test Room Experiments 6 women 48hr wk, no tea breaks gave them more breaks then removed all improvements output was still high.OUTCOME: Supervisory Style; Workers had more control; Level of involvement.

Bank Wiring Room Study 14 men peer pressure had an impact on performance; mgt realised that the informal organisation existed within the formalorganization (see h/o)


50/72

The Human Relations Movement

Grew out of the Hawthorne studies. Proposed that workers respond primarily to the

social context of work, including socialconditioning, group norms, and interpersonaldynamics.

Assumed that the managers concern for workers would lead to increased worker

satisfaction and improved worker performance.

50


51/72

Human Relations Proponents

Abraham Maslow Advanced a theory that employees are

motivated by a hierarchy of needs that theyseek to satisfy.

Douglas McGregor Proposed Theory X and Theory Y concepts of

managerial beliefs about people and work.

51


52/72

52

Maslows Hierarchy of Needs

Self Actualisation (Achievement)

Esteem (Status)

Social (Friendship)

Safety (Stability)

Physiological (Food)

The lowest unmet need is the prime motivator


53/72

MASLOW in the Workplace

Good Working Conditions

Attractive Wage/Salary; Subsidized canteen..

Private health insurance cover

Attractive pension provisions

Safe Working Conditions

Company sports & social clubs

Informal activities

Encouraging open communications

Regular positive feedback

Prestige job titles

Promotions

Challenging Job assignments

Discretion over core work activities

53


54/72

54

Criticisms of Maslows Theory

Too rigid how can you predict when one need issatisfied and move on to the next one? Some people seek self-actualisation at the expense of

love

Traumatic experiences at one level can affect anindividuals thinking so that they become blocked at onelevel of the hierarchy.

Lengthy deprivation of a particular need may lead theindividual to over-emphasise that need.

Emphasis placed on each need may change with time, ageand experience. We pursue several needs at the sametime.


55/72

55

Criticisms of Maslows Theory One goal may satisfy a number of needs eg buying a

car/transport and impressing neighbours satisfies esteemand relationships..

It is difficult to apply a general framework to describehuman behaviour.

The theory is difficult to apply to the workplace

Researchers have found little support for the concept thatindividuals have completely separate needs.

Theory attempts to demonstrate an imputed rationality in

human actions that may not exist.


56/72

Theory X and Theory Y

Theory X

Assumptions

1. People do not like work and try to avoid it.

2. People do not like work, so managers have to control, direct,coerce, and threaten employees to get them to work towardorganizational goals.

3. People prefer to be directed, to avoid responsibility, and to wantsecurity; they have little ambition.

Theory YAssumptions

1. People do not naturally dislike work; work is a natural part of theirlives.

2. People are internally motivated to reach objectives to which theyare committed.

3. People are committed to goals to the degree that they receivepersonal rewards when they reach their objectives.

4. People will both seek and accept responsibility under favorableconditions.

5. People have the capacity to be innovative in solving organizationalproblems.

6. People are bright, but under most organizational conditions theirpotential is underutilized.

56


57/72

57

Douglas McGregor XorY? Two extreme sets of beliefs that different managers have

about their workers. McGregor felt that Theory Y was a more appropriate

philosophy for managers to adhere to.

Self-fulfilling prophecy (is a prediction that directly or indirectlycauses itself to become true) if you believe staff are lazy they will

become lazy and so on . So, your assumption about thenature of man at work has an impact on their performance.

Does satisfaction at work lead to better performance or doessatisfaction follow good performance rather than precede it?

It is now believed that human behaviour in organizations ismuch more complex than the human relationists realized..


58/72

Behavioural Management Today

Contribution

Challenged the view that employees are tools and furthered belief thatemployees are valuable resources.

Limitation

Concepts are not used because managers are reluctant to adopt them.

58


59/72

The Classical Approaches: a summary

59


60/72

Kinds of Managers by Level and Area

60


61/72

Kinds of Managers by Level

Top Managers are the small group of executives who manage the overall

organization. They create the organizations goals, overall strategy,

and operating policies. Middle Managers

are primarily responsible for implementing the policies and plansof top managers. They also supervise and coordinate the activitiesof lower level managers.

First-Line Managers supervise and coordinate the activities of operating employees.

61


62/72

Kinds of Managers by Area

Human ResourcesManagers

AdministrativeManagers

SpecialistManagers

Kinds ofManagers

by Area

MarketingManagers

FinancialManagers

OperationsManagers

62


63/72


Marketing Managers work in areas related to getting consumers and clients to buy theorganizations products or services new product development,promotion, and distribution.

Financial Managers deal primarily with an organizations financial resources accounting,

cash management, and investments.

Operations Managers are involved with systems that create products and services

production control, inventory, quality control, plant layout, siteselection.

63



64/72

Kinds of Managers by Area(contd)

Human Resources Managers are involved in human resource activities.

Administrative Managers are generalists familiar with all functional areas of management

and are not associated with any particular management specialty.

Other Kinds of Managers hold specialized managerial positions (e.g., public relations

managers) directly related to the needs of the organization.

64


65/72

Basic Managerial Roles and

Skills Regardless of level or area, all managers

must play certain roles and exhibit specific

skills in order to be successful. Managers:

Do certain things.

Meet certain needs. Have certain responsibilities.

65


66/72

Lights, Roll Camera, Manage !!!

InterpersonalRoles

InformationalRoles

ManagerialRoles

DecisionalRoles

66

Ten Basic Managerial Roles


67/72

Ten Basic Managerial Roles

Category Role Sample Activities

Interpersonal Figurehead Attending ribbon-cutting ceremony for newplant/attending employee wedding

Leader Encouraging employees to improve productivity

Liaison Interacting with peers from other areas of the org.

Informational Monitor Scanning industry reports to stay abreast ofdevelopments/Tracks dev in Business Environment

Disseminator Sending memos outlining new organizational initiatives

Spokesperson Making an address at a breakfast meeting

Decisional Entrepreneur Creating a new business project

Disturbance handler

Resolving conflict between two subordinates over egwork allocation

Resource allocator

Reviewing and revising budget requests/makingdecisions about staff deployment

Negotiator Reaching agreement with a key supplier or Trade Union67


68/72

What Skills Do Managers Need?

Technical

Conceptual

Communication

TimeManagement

DecisionMaking

Diagnostic

Interpersonal

FundamentalManagement

Skills

68

M g i l Skill


69/72

Managerial Skills Technical

To accomplish or understand the specific kind of work being donein an organization.

Interpersonal To communicate with, understand, and motivate both individuals

and groups. Conceptual

Conceptual skills are skills that utilize the ability of a human toform concepts (ideas). Such skills include thinking creatively,analysing complex situations, and solving problems.

Diagnostic To visualize the appropriate response to a situation.

69


70/72

Managerial Skills (contd) Communication

To convey ideas and information effectively to others and to receivethe same effectively from others.

Decision-Making To recognize and define problems and opportunities and then to select

an appropriate course of action to solve problems and capitalize onopportunities.

Time-Management To prioritize work, to work efficiently, and to delegate appropriately.

70


71/72

Management skills at different levels

71

Sources of Management Skills


72/72

Sources of Management Skills

lect2 classical approaches pom

Documents