M22EKM People Management

Shifting People management styles

Classical/Scientific School

Classical Theorists

• Robert Owen• Charles Babage• Frederick Taylor• Lillian and Frank Gilbreth• Henry Gantt• Henri Fayol• Henry Ford

Taylor’s Principles• Scientific Analaysis

• Training Needs Analysis

• Co-operation

• Equal Division of Labourhttp://www.youtube.com/watch?v=slfFJXVAepE

Avoiding Systematic Soldiering

• Split planning from doing• Standardise and divide the job• Select by job suitability• Train• Monitor

Taylor’s ResultsMidvale Steel Works

Before AfterTons loaded per day 12.5 47.5Wages per day $1.15 $1.85Labour costs/ton $0.0092 $0.0039

Bethlehem Steel WorksBefore After

Tons Shovelled per day 16 59Wages per day $1.15 $1.88Total Manpower 500 150

Henry Gantt

Gantt Chart

Bonus Payment Scheme

Proactive Management

Services V’s Profit

Henri Fayol• Division of Work• Authority and Responsibility• Discilpine• Unity of Command• Unity of Direction• Subordination of personal interests• Renumeration

• Centralisation• Scalar chain• Order• Equity• Stability of Tenure• Initiative• Esprit de Corp

The underlying assumptions of Scientific Management

People ... act as individuals... act rationally and logically... are driven by economic factors

...want to realise their incividual capabilities

The Classical School• Background influences

Military EngineeringPhysiologyClassical Economics

• Factors StudiedThe Nature of WorkSpecialisationWork LoadsAuthority / Responsibility

• Nature of the SolutionRational allocation of workDivision of LabourAuthority structure

• Means / Methods Principles drawn from experience and observations

Business Organisation (Study In Management)John O’Shaughnessy Harper Collins 1966

• Personnel management approach (first part of the 20th century):– Weberism, Taylorism and scientific management– Maximizing labour productivity and efficiency– Transactional, low-level, record-keeping and

maintenance function– A preoccupation with operational issues, practices and

policies, to the neglect of broader business issues and the overall direction of the organization

Managing people: From personnel management to SHRM: an evolutionary road map

• Human relations and organizational behaviour paradigms (1970s):– the complexity of human behaviour was

introduced– importance of soft aspects of management,

including leadership and motivation on work outcome was highlighted

– a new, people-oriented approach to HRM

Managing people: From personnel management to SHRM: an

evolutionary road map

• SHRM (1990s):– a response to large-scale organizational change and an

intensely competitive global economic environment– a renewed focus on quality and customers, and the war

for talent among others– increased attention to how employees can have an

impact on overall performance

Managing people: From personnel management to SHRM: an

evolutionary road map

• SHRM (1990s):– a response to large-scale organizational change and an

intensely competitive global economic environment– a renewed focus on quality and customers, and the war

for talent among others– increased attention to how employees can have an

impact on overall performance

Managing people: From personnel management to SHRM: an evolutionary road map

Schools of thought on Organisation

• Classical

• Human Relations

• Environmentalist

Individual Role Group Organisation Institution(Sector)

Society

The Organisational Environment

Entrepreneurial Organisational Structure

General Manager

Technical Manager Production Manager Marketing Manager

Development

Quality Control

Machine Shop Assembly

Sales

Promotion

Functional Organisational Structure

General Manager

Manager

Product Range 1(Traditional Steels)

Manager

Product Range II(Aircraft Steels)

Technical Production MarketingManager Manager Manager

Technical Production MarketingManager Manager Manager

Divisional Organisational StructureBy Product

General Manager

Manager

Division A(United Kingdom)

Manager

Division B(The Rest of the World)

Technical Production Marketing

Manager Manager Manager

Technical Production Marketing

Manager Manager Manager

Divisional Organisational StructureBy Geography

Branch Manager

Manager

Customer Group A(Personal Banking)

Manager

Customer Group B(Corporate Banking)

Technical Production Marketing

Manager Manager Manager

Technical Production Marketing

Manager Manager Manager

Divisional Organisational StructureBy Customer

General Manager

Project Manager I Project Manager IIMarketingManager

TechnicalManager

Production Manager

Sales

Promotion

Development

Quality Control

Machine Shop

Assembly

Matrix Organinisational StructuresProject Management Structure

Control in Matrix Structures

• Overlay

• Co-ordinated

• Secondment

Knight, Kenneth, ed. Matrix Management: A Cross-Functional Approach to Organization. New York: PBI-Petrocelli Books, 1977.

Control in Matrix Structures

Project type Marketing/ sales

Finance Engineering Quality Design Manufacturing

Cost down X X X X

Process improvement

X X X

New product intro

X X X X X X

X = member of staff required to work on project from departmentWhat happens when only 1 person available from engineering department?

Organisations

A system of consciously co-ordinated activity involving two or more people

Chester Barnard 1930’s

TallStructures

FlatStructures

OrganisationalStructure

How do Organisations work?

AuthorityResponsibility

Accountability

Delegation

Concerns about Delegation

Division of LabourLevels in the Hierarchy

Spans of ControlLine V's Staff Authority

Divisions of Labour

Group exercise

In groups of 4 read the class exercise and prepare a presentation on how you intend to re organise your working practices and therefore identify the division of your labour.

Be prepared to justify your answer.

The end

Put away your notes and laptops,